business plan1-150822152244-lva1-app6892
TRANSCRIPT
A Business Plan
Of
Friends Catering Service Ltd.
Submitted to:
Submitted By:
Taseen Noban ( 111121132)
Md. Tanjib Hossain (111123219)
Fatema-Tuj-Zohora (111123216)
Sanjay Gope (111131041)
1.0) Executive Summary:
Friends Catering is a catering service company which believe not only
profits but also customer satisfaction. We provide various kinds of foods
like traditional and continental items. We also can provide food
according to our customer though it is not in our regular menu. Friends
catering always cook foods with care. We always consider customer
health, customer individualization and food ingredient.
Friends catering always offer a great quality food. We also offer items
for decoration if customer wants.
Friends catering focus only two group of people one is upper class
people who don’t care they care about food and the another group is
middle class people whose care about money and also about the food.
Friends catering have two branches one is in Dhaka and the another one
is in Chittagong. Both of them are situated in the central point of the
city. We can cover the city.
In addition to providing a quality food, we will donate in tree plantation
which increases customer awareness. It will also help us to advertise our
company.
For cooking food we will the a best chef in town. He will do all the
cooking. There will be some helper who will help him to cook they all
will be well trained.
Friends catering initial investment will be 6000000 BDT. We are
planning to keep minimum inventory on hand to take advantage. We are
planning to finance 2076000 BDT to cover start-up cost. Our goal is to
become the best catering Service Company in Bangladesh. Our target to
open a branch in every year in every districts. our target is to cover all
over Bangladesh in six to seven year. In our industry there are too many
companies. We have to compete with them very well otherwise we
cannot achieve our goal.
1.1) Objectives:
Friend catering service has some objectives which is place to achieve in
future:
Open a branch every year in every districts of Bangladesh
We try to make our gross profit margin 40 percent.
1.2) Mission
It shall be the mission of Friends catering: a catering company to use the
finest Ingredients to prepare tasty, made-from-scratch products for our
clients. Innovative recipes and event planning styles will complement
the healthy, flavorful products tailored specifically to our clients’ needs.
1.3) Vision:
Friends catering will provide every client a custom experience with
quality ingredients and quality service.
HEALTH: Our food and beverages are prepared from the finest
ingredients. We create innovative dishes that are full of flavor and
nutrition. We provide alternatives for dishes that are typically indulgent,
but based on client needs we can create dishes using any method
requested.
CUSTOMER INDIVIDUALIZATION: It is our goal to provide
each and every customer with an experience tailored to their wants and
needs. We are able to do so by preparing every dish from scratch and
providing ample planning time with our client to understand their needs.
We create dishes specific to events and go beyond a standard menu of
items/services to choose from.
INTEGRITY: This can mean many things to our clients. Each event
we cater will have all details executed by our team. The client will
always enjoy their event as they can be assured all details will be
followed through by us. Services from entertainment, bartending, and
cleanup will be executed by the team. What is agreed upon between
client and company will always be delivered upon.
1.4) Key of success:
In Friends catering we have some keys which will help us to achieve our
goal. These are-
We always ensure the best quality food
We hire best chef in town
Attractive package offer
Attractive advertisement
2) Company Summary:
Friends Catering is a catering service company which believe not only
profits but also customer satisfaction. We have two branches which is
located in the central point of Dhaka and Chittagong. Friends catering
happy to take orders for 30-350 people with high quality food. We take
order 3 days in advance to delivery date. We have a very impressive
menu for any kinds of party like traditional “Bangla food”. We also have
continental food items in our menu. We provide our clients with quality
food at competitive prices and a service that is efficient, friendly and
courteous.
2.1) Company Ownership:
Friends catering service company is partnership business. We are five
owners. We have equal share in our business.
2.2) Start-up:
Requirement:
Legal 10000
Office Equipment (Furniture,
Decoration)
300000
Cookeries 106000
Vehicle 1500000
Promotional Cost 150000
Total 2076000
Expense:
Cash required 1962000
Long term asset 2000000
Total asset 3924000
Total required 6000000
Funding:
Start-up expenses to Fund 2076000
Start-up Assets to Fund 3924000
Total Funding required 6000000
Liability:
Friends and family 1000000
Capital:
Partner-1 1000000Partner-2 1000000
Partner-3 1000000Partner-4 1000000Partner-5 1000000Total 5000000
Total Planned investment 6000000
Loss at Start-up (2076000)
Total Capital & liability 3924000
Total Funding 6000000
2.3) Company locations & Facilities:
Friends catering service has two branches in Bangladesh.
Main branch is situated in Sher Shah Suri Road, Mohammadpur,
Dhaka-1207.
Contact Number is 01953591850-9.
Another branch is in Chittagong. Address of that shop is- Road no-6,
House no-2, Khulshi, Chittagong.
Contact Number is 01684077230-9.
We are open in 24/7.
Our e-mail id: [email protected]
Websites: www.Friendscateringservice.com
We choose our location according to our customer. There are thousands
of people around ours shop. These are the central location for the both
cities.
3.0) Product:
Friends catering service’s food is not only delicious but also nutritious
and a complete meal that includes all necessary vitamins and proteins.
We offer different kinds of traditional Bengali foods and also continental
foods. We also can serve foods according to our customer’s
specifications.
3.1) Product descriptions:
Friends catering have various kinds of food. It also provide according to
their customer choice. All the foods are cook with proper care. Here it
our product menu with prices
Menu of the order Price
Chicken Biryani Per Plate 170 tk.
Mutton Biryani Per Plate 190 tk
Beef tehari Per plate 500 tk.
Shada Vaat Per plate 300 tk
Beef Bhuna Per plate 300 tk
Khasir Rejala Per plate 350 tk
Chicken Korma Per plate 250 tk
Leg Rost Per leg 500 tk
Firmi Per pieces 30 tk
Egg Per pieces 10 tk
Tika Per pieces 20 tk
Borhani Per liter 200tk
Drinks( coke, Pepsi) Per liter 70tk
Plates , Glass, Jogs, Tables, As customer requirement
Tables clothes, Chairs
Decoration Charge As customer requirement
3.2) Competitive Comparison:
Friends catering are new in catering industry in Bangladesh. There are
too many competitors in the field. Friends caterings primary competitors
are Ibrahim catering, Fakrudding catering, spicy catering etc. there are
something which can differentiate us from our competitors. Those are
we give free home delivery which most of them don’t. We also donate
some of our profit for tree plantation.
3.3) Technology:
All of our activity will be computer based. We will also take order
online. We also give ads online. We also inform our customer about our
promotional packages online.
3.4) Future Product:
Now we serve only traditional Bengali food and continental food. In
future we have plan to increase our products. We will add Thai style
food, sea food and chines food. We also have plan to serve seasonal
food.
4.0) Market Analysis Summary
In our catering service, our main focus will be two types of people:
1) Upper Class: upper class people mean those who have higher
income. Normally these kinds of people don’t think about the
price, they mainly think about the quality of the food.
2) Middle class: Middle class people are those who have a limited
income. These kinds of people are given importance about the
price and also the food quality.
4.1) Market Segmentation:
In Friends catering service, our target market positioning is going
through the upper class to the middle class. We have different types of
segmentation for this two types of peoples. The analysis on our business
plan in the purpose of marketing, we segment our business
geographically in 2 big divisions in Bangladesh such as Dhaka and
Chittagong. In this 2 division, we serve our service from one city to
another.
Table:
Service Provide Chittagong Service Provide
Dhanmondi 65% Aagrabad 55%
Mohammadpur 35% Kulshe 45%
1st Qtr59%2nd Qtr
23%
3rd Qtr10%
4th Qtr9%
Sales
Pie Chart:
Dhaka
DhanmondiMohammadpurMotijheel
Chittagong
AgrabadKhukshi
We also provide another local areas as well as big cities under Dhaka
and Chittagong. Our focus on not only upper class but also middle class
customers.
4.2) Target Market Segment Strategy:
We know that target market is the specific group of customers at whom
a company aims its goods or services. According to the definition, upper
class and middle class customers group of our target market groups in
the segmentation of our target market segment strategy. For these two
group of people we also have different strategies. For the upper class
people who are ready to pay more money from others then we also can
provide better foods according to their wish. We also will make
arrangement to visit fairs, corporate program, games event etc. by this
kinds of arrangement we will get many customers.
4.2.1) Market Trends:
In our culture we have a weakness to foods. Most of the people of our
country are food lover. But catering service is not so old trend in our
country. Before that people used to make their food in their own kitchen.
There are many catering service company in our country like four season
catering service, kebab zone catering service, spicy catering services,
and fakruddin catering service. They are the leader of the industry. They
started this industry in our country. Now a day we have seen there are
many catering services who deliver good quality foods with efficient
price.
4.2.2) Market Growth:
Every business has a product life cycle. According to product life cycle,
our business ran initially not so good. After 2 years, it is going to be a
big, bigger and in the future it will be the biggest catering service in
Bangladesh. We are now staying on the growth stage. As Bangladesh is
now a lower middle class country our customer are increasing day by
day. We are seeing that we have a huge market to serve.
4.2.3) Market Needs:
In our country there are thousands of events occur every day. Like
Marriage related party, birthday party, convocation party etc. we provide
our service according to the customers’ needs. So maximum customers’
individual choices and preferences on our service and for this reason,
market need of our service is going to be higher and higher day by day.
Our product features are also attracting our customers’ needs.
4.3) Industry Analysis:
In Bangladesh there a hundreds of catering service company. People are
becoming rich they are also like to spend money in food. People are also
organizing many events. Our industry is growing bigger over the year.
4.3.1) Distribution Patterns:
In our distribution patterns, we distribute the foods in our own transport
services such as pickup van, truck and other carrying out vehicles along
with our catering worker. Our cars also have the system the keep food
hot and unhygienic. Sometime we also deliver the food according to the
customer choice.
4.3.2) Competition and Buying Patterns:
There are two general competitors of friends catering. They are national
well-known catering services such as Fakruddin catering service and
Ibrahim catering service.
Fakruddin have their own recipe to cook foods. They also have huge
client. People have faith on them. People are like their food blindly.
People are also pay very much to them.
Ibrahim Catering is also a popular well-known catering. They have a
name in the industry who serves the best quality food. As their price
range are quite cheap among others. So, all kinds of people go there.
4.3.3) Main Competitors:
Friends catering have two main competitors whose names are
Fhokhruddin and Ibrahim catering service. They serve similar kinds of
food. They are also very well-known catering service holders in
Bangladesh after long years. There is also some indirect competitors
such as Hotel star, Baburchi, korai ghosto also some fast- food chain and
chines restaurant’s like al-baeik, ulta vut etc.
5.0) Strategy and implementation summary:
Friends catering service divide its customer in two portion, one is upper
class and another one is upper middle class. Friends catering also
identified that market is big with lot of scope. The customer desire for
fresh and good quality food.
In addition, we deliver the food to its destination without any charge and
friends catering also decide that they will spent 5 percent of their for
profit for tree plantation.
5.1) strategy pyramid:
Friends catering strategy is to offer customers quality food at a
competitive price and a community benefit. To execute this strategy,
friends catering open two branches, one in Dhaka another one in
Chittagong. The one is the capital of Bangladesh and the other one is the
business capital with the sea port. The prices of friends catering service
are below then its competitor. Friends catering want to serve its country,
that’s why they decide to spent their 5 percent of profit in tree
plantation.
In doing so friends catering has accomplished the following:
Provide customers with a quality food at a competitive price.
Demonstrated how friends catering appreciate their loyalty and
patronage by planting tree with their profit.
5.2) Value proposition:
Friends catering concept is that people are busy at their work nowadays,
so they don’t have much time to spent on their functions and the food
arrangements .friends catering planning took charge of those people.
They placed a order and friends catering will take care rest of thing.
Friends catering also providing a significant community value, from
every order they will get a least amount of profit, from that profit they
will spent 5% for tree plantation.
5.3) Competitive edge:
Friends caterings competitive edge is simple, they are providing good
quality food at a competitive price and deliver it to its customer without
any delivery charge.
5.4) Marketing strategy:
There are several marketing strategies we will take to run our business.
First of all, we will set our advertising campaign and this must be low
cost advertising campaign. Our target not only upper class but also
middle class. So we will advertise our business by the TV channel, local
cable networking advertising tools, in the movie time showing off, it will
be broadcasted.
Another strategy we will also take and use social media marketing tools
such as Twitter & Facebook as well to promote our food features ,
services and our location wise campaigning.
5.4.1) Promotion Strategy: There will be a long term goal of our
catering service is to expand our Friend Catering Service Ltd. Brand
name. To do that, our catering service must employ the following:
To generate our service more popular among newspapers,
magazines , bloggers and reviews by the spending of money is
3000 BDT.
Advertising expenditures will be 3000 BDT for the bill-board
advertising and TV advertising.
In Facebook and Twitter , we have to plan to engage our customers
through a LIKE PAGE that showing offers, features, extra
facilities, other service providing by giving JUST IN TIME
method.
5.4.2) Distribution Strategy: Our location, one is Dhaka zone and
another is Chittagong zone. In our country, Dhaka is one of the most
high-traffic zone and Chittagong also. So we have to advertise our
catering service business by a outlet which is attached with the in front
of the pick-up vans in main cities of two zones.
5.4.3) Marketing programs:
Logo: The logo of our catering service is “ Khao , Dao Ar Bindas Hoya
Jao”
Buildings: Two stored building for every brunches in the our catering
business.
Advertising and promotion: Upcoming two years, we will spend our
money on advertising and promotion purpose. Then next year, we will
spend our money on attracting our target audience purposes.
5.4.4) Pricing Strategy:
Total Price = Cost of Service – Cost of Materials
= (3 hour * 200 BDT/hour) – 200 BDT
= 600 BDT – 200 BDT
= 400 BDT
5.5) Sales Strategy: In our catering service, If anyone order 200 persons
people food, we will provide extra 20 persons food FREE!!
5.5.1) Sales Forecast:
Year 1 Year 2 Year 3
Unit Sales 10000 20000 25000
Dhaka:
Mohammadpur
Dhanmondi
5000
6000
5750
7000
6000
7500
Chittagong:
Agrabad
Khulse
4000
3500
5000
4000
5500
5000
Total Unit Sales 96000 41750 49000
Unit price 200 BDT 250 BDT 300 BDT
Dhaka:
Mohammadpur:
Dhanmondi:
100 BDT
190 BDT
125 BDT
200 BDT
150 BDT
280 BDT
Chittagong:
Agrabad
Khulsee
120 BDT
150 BDT
170 BDT
200 BDT
240 BDT
230 BDT
Sales 2000000 BDT 5000000 BDT 7500000 BDT
Dhaka :
Mohammadpur:
Dhanmondi :
500000 BDT
1140000 BDT
718750 BDT
1400000 BDT
900000 BDT
2100000 BDT
Chittagong:
Agarabad
Khulsee
480000 BDT
525000 BDT
850000 BDT
800000 BDT
1320000 BDT
1150000 BDT
Total sales 4645000 BDT 8768750 BDT 12970000 BDT
Category 1 Category 2 Category 3 Category 40
1
2
3
4
5
6
Series 1Series 2Series 3
Figure: Sales Forecast for 3 years
5.5.2) Sales Programs:
Free tastes of our foods in one day purchase
If a person comes with more than 5 friends, we will offer 2 extra
meals !!
Food service associations , we will be appointed active members of
our management team, cooking team, delivery team.
6.0) management summary:
Friends catering going to use relatively flat organization. The partners
will keep up the most management oriented activities and also have two
managers and two accountants in tow branches (Dhaka & Chittagong).
Friends catering have no intention to make a heavy management body,
which cause at the time of decision making.
At the end of year 3, friends catering plan to increase number of staff
and office executive. By that time there will two more branches of
friends catering and the partners will not be able to handle those
branches. They will hire a marketing head, accountants, and
administrator.
6.1) Management team:
At the starting years friends caterings partner take all the managerial
responsibilities.
Mr. Tanjib Hossain looks after the account sector of the both branches.
Mr. Taseen Noban look after the financial site and investment site, Miss
Fatema-Tuj-Zohora will assist the administrative work and also have a
close view on the chef and his worker.
Mr.Sanjoy Gope will look upon the sales and promotion site of the
friends catering. Along that there will two accountant in two branches
who will be under the supervision of Mr. Tanjib Hossain. All the
partners are good in their field,cause they are related with their field for
last 7 years, so they know how to handle the situation and the pressure.
Along that Mr.Tasin had good relation with some financial organization,
which helps us in future we have to borrow money to expend our
branches. Miss Fatena-Tuj-Zohora associated with some renown hotel
chain, so she can handle the administrative work and with that can have
the look on cooking site. Mr.Sanjoy engage with a multinational
company, where he is the head of sale and promotion and last year he
sold 32.2000 units of its company.
6.2) Management team gaps:
Friends catering will require several management team members over
the next 2 years. Within next two years we planning to increase the
branch number, so we need branch managers, accountants and also their
administer. The hired employee will get training according the system of
friends catering. The goal is to serve the people at their very own taste.
By the end of second year, we will hire 3 new branch managers, one
marketing sales executive and three new accountant for the new
branches. We will discuss the roles of each of these managers in
subsequent section of this plan.
6.3) Organizational structures:
The organization will be flat, most of the partners are going to involve
with the organizational activities. There are four functioning groups
within the company, they are:- finance, accounts, administration and
sales & marketing.
Production includes all the items that required to prepare the food,like :-
rice ,mutton,spice,herb,garlic,onion ,potato,salt,chicken,nuts etc. The
sales & marketing department will promote the menu set by the friends
catering. The other staff will make sure that every single thing is in its
place, while preparing food. The administrative people look after the
equipment, inventory and other basic operational process for the
company. The customer have a easy access with us, cause along with the
telephone, we also have our website, where the customer can place their
order.
7.0 Financial Plan
The financial investment in our partners will be one of the
greatest differentiators between Friend Catering Service
and its competitors.
7.1 Important Assumption:
Year 1 Year 2 Year 3
Short
term
interest
rate
3% 3% 3%
Long
term
interest
6% 6% 6%
rate
Tax Rate 0 0 0
0ther 0 0 0
1/5/2002 1/6/2002 1/7/2002 1/8/2002 1/9/20020
20
40
60
80
100
120
140
160
0
1
2
3
4
5
6
VolumeClose
7.2 Key Financial Indicators:
Sales
Gross margin
Operating expense
Inventory turnover
7.3 Break-Even Analysis: Assuming average revenue per unit 500 BDT
and fixed operating cost 1190000 BDT and variable cost 60500 BDT .
Break – even in sales = Fixed cost / CM ratio = 1190000/0.40 =
2975000 BDT.
7.4 Projected Loss and Profit:
Particulars Year 1 Year 2 Year 3
Sales 4645000 BDT 8768750 BDT 1297000 BDT
Payrolls 1900345 BDT 568900 BDT 1189450 BDT
Sales
commissions
3456 BDT 23034 BDT 34004 BDT
Total cost of 193801 BDT 591934 BDT 1223457 BDT
sales
Gross Margin 4451199 BDT 8176816 BDT 7354600 BDT
Operating
expenses:
Advertising
Administrative
expense
Utilities
Insurance
Rent
Payroll taxes
Office and
Equipment
25000 BDT
455000 BDT
78000 BDT
240000 BDT
168000 BDT
3420621 BDT
0
37000 BDT
568000 BDT
105000 BDT
380000 BDT
504000 BDT
113780 BDT
50000 BDT
45000 BDT
346000 BDT
146900 BDT
490000 BDT
1260000 BDT
356835 BDT
78000 BDT
Total Operating
Expenses
4386621 BDT 1304180 BDT 2722735 BDT
Other expenses
Interest expense
EBITDA
10000 BDT
3678 BDT
35000 BDT
4598 BDT
23000 BDT
12900 BDT
Net income 50900 BDT 6833038 BDT 4595965 BDT
Category 1 Category 2 Category 3 Category 40
1
2
3
4
5
6
Series 1Series 2Series 3
7.5 Projected Balance Sheet:
Particulars Amount ( BDT ) Amount ( BDT )
Assets
Cash Required 1962000
Long term asset 2000000
Investment 6000000
Total Asset 9962000
Liabilities + Owners
Equity
Liabilities 4962000
Owners Equity 5000000
Total liabilities
+ owners equity
9962000
7.5) Projected Cash Flow:
Year 1 Year 2 Year 3
Cash Sales 4645000 BDT 8768750 BDT 12970000 BDT
Cash received
Cash
from operations
0
0
0
0
0
0
Total cash from
operations
4645000 BDT 8768750 BDT 1297000 BDT
Net
current
borrowing and
liabilities
0 0 0
Sales of long
term asset
0 0 0
Subtotal Cash
received
4645000 BDT 8768750 BDT 1297000 BDT
Cash Spending
Total
Operating
expenses
2076000 BDT
4386621 BDT
3450000 BDT
1304180
5890000 BDT
2722735
Dividend 0 0 0
Total cash spent 6462621 BDT 4754180 BDT 8612735 BDT
Net Cash Flow -1817621 BDT 4014570 BDT 7315735 BDT
Category 1
Category 2
Category 3
Category 4
0 1 2 3 4 5 6
Series 3Series 2Series 1