ENTREPRENEURSHIP

Projection of our Business Plan

TITLE OF BUSINESS

Diet Food Hub

 INTRODUCTION
• The title of business “Diet Food Hub”.
• Entrepreneurs: Zartashia Waheed & Safa Rafiq
• Nature of business Plan
• Amount of Finance: PkR. 8,00,000
• Concept of Business
• Location of business
 EXECUTIVE SUMMERY

• Purpose
• Competitive Environment
• Initial Capital Investment
• Enticement through creativity
• Idea for this Venture
• Founders of Business
• Main Determinants for succeed in business
 ENVIRONMENTAL & INDUSTRY ANALYSIS

Environmental Industry
• Trends in food service retail
• Political factors • Competition & buying patterns
• Economical factors • Main competitors
 Khan Baba Tikka Center
• Social factors  Fri-chicks
• Technological factors  Kuzi Haleem
• Market segmentation
• Legal factors
• Target market strategy
• Market Needs
• Market Trends
 DESCRIPTION OF VENTURE

• Mission
• Products
 Sandwiches
 Salads
 Fresh juices & Smoothies
 Hot beverages
• Location
• Background of Entrepreneurs
• History of the Venture
 OPERATIONAL PLAN
a) Consumer &
Market

h) Monitoring of
b) Formulation of
consumer
Policy
Satisfaction

g) Control of Cost c) Interpretation

& revenues of demand

f) Productive & d) Planning &

Service Design of facilities

e) Provisioning
 MARKETING PLAN

Our strategy is based on serving our markets well. Concentration will be

on maintaining quality and establishing a strong identity in the local
market.

• Pricing Strategy
• Promotion Strategy
• Distribution Methodologies
 ORGANIZATIONAL STRUCTURE

Senior management

Operations Staff Administrative Staff

Customer Service Accounting

Facilities Management Sales - Marketing

Administrative
 RISK ASSESSMENT
• Product Risk
• Market Risk
• People Risk
• Financial Risk
• Competitive Risk

STRATEGIES FOR RISK MINIMIZATION

• Employee Training
• Views & Suggestions from Customers
• Cleanliness of Food & Place
 FINANCIAL PLANNING

STARTUP FUNDING LIABILITIES

Startup expenses to fund 68,800 Current borrowing 0

Startup assets to fund 50,000 Long term liabilities 0
Total funding required 118,800 Accounts payable 0
Other current liabilities 0
ASSETS Total liabilities 0

Non-cash assets from start-up 30,000 CAPITAL

Cash requirements from start-up 50,000
Additional cash raised 681,200 Planned investment 0
Cash balance on starting date 731,200 Total planned investment 0
Total Assets 761,200 Loss at start-up (68,800)
Total capital 731,200
Total capital and liabilities 731,200
Total funding 800,000
 BREAK EVEN ANALYSIS

Monthly units break even 3,000

Monthly revenue break even 32,104

ASSUMPTIONS

Average per unit revenue 3.31

Average per unit cost 0.73
Estimated monthly fixed cost 30,104
 PRO FORMA OF PROFIT AND LOSS
Year 1 Year 2 Year 3

Sales 279,163 558,327 1,116,654

Direct cost of sales 61,957 123,914 247,827
other cost of sales 0 0 0
Total cost of sales 61,957 723,914 247,827
Gross margin 217,207 434,413 868,826
Gross margin ratio% 77.81% 77.81% 77.81%
EXPENSES
Payroll 88,200 262,000 449,600
Marketing /promotions 10,000 10,000 10,000
Depreciation 0 0 0
Rent 174,000 248,000 298,000
Utilities 2,550 5,000 8,000
New location set-up 25,000 50,000 50,000
Total operating expenses 299,750 575,000 815,600
Profit before interest and taxes (82,543) (140,587) 53,226
EBTIDA (82,543) (140,587) 53,226
Interest expenses 0 0 0
Taxes incurred 0 0 0
Net profit (82,543) (140,587) (53,226)
Net profit / sales -29.57% -25.18% 4.77%
 PRO FORMA OF BALANCE SHEET
Year 1 Year 2 Year 3

Assets
Current Assets
Cash 677,899 543,981 611,748
Other current assets 0 0 0
Total current assets 677,899 543,981 611,748

Long term Assets

Long term assets 0 0 0
Accumulated deprecation 0 0 0
Total long term assets 0 0 0

TOTAL ASSETS 677,899 543,981 611,748

 LIABILITIES AND CAPITAL

Year 1 Year 2 Year 3

Current liabilities

Accounts payable 29,242 35,911 50,452

Current borrowings 0 0 0
Other current liabilities 0 0 0
Subtotal current liabilities 29,242 35,911 50,452
Long term liabilities 0 0 0
Total liabilities 29,242 35,911 50,452
Paid in capital 800,000 800,000 800,000
Retained earnings (68,800) (151,343) (291,930)
Earnings (82,543) (140,587) (53,226)
Total capital 677,899 543,981 611,748
Net worth 648,657 508,070 561,296
 BUSINESS RATIOS
RATIO ANALYSIS
Year 1 Year 2 Year 3
Industry profile Sales growth 0% 100% 100% 8.67%
PERCENT OF TOTAL ASSETS
Other current assets 0% 0% 0% 37.31%
Total current assets 100% 100% 100% 45.97%
Long term assets 0% 0% 0% 54.03%
Total assets 100% 100% 100% 100%
Current liabilities 4.31% 6.60% 8.25% 17.94%
Long term liabilities 0% 0% 0% 22.26%
Total liabilities 4.31% 6.60% 8.25% 40.20%
Net worth 95.69% 93.40% 91.75% 59.80%
PERCENT OF SALES
Sales 100% 100% 100% 100%
Gross margin 77.81% 77.81% 77.81% 59.09%
Selling, general & administrative expenses 107.37% 102.99% 73.04% 39.24%
Advertising expenses 0% 0% 0% 1.96%
Profit before interest and taxes -29.57% -25.18% 4.77% 1.92%
 RATIO ANALYSIS
Main Ratios
Current 23.18 15.15 12.13 1.04
Quick 23.18 15.15 12.13 0.66
Total debt to total assets 4.31% 6.60% 8.25% 50.22%
Pre-tax return on net worth -12.73% -27.67% 9.48% 6.90%
Pre-tax return on assets -12.18% -25.84% 8.70% 13.87%
Additional ratios
Year 1 Year 2 Year 3

Net profit margin -29.57% -25.18% 4.77% n. a

Return on equity -12.73% 27.67% 9.48% n. a

Activity ratios

Account payable turnover 9.35 12.17 12.17 n. a

Payment days 27 27 26 n. a
Total asset turnover 0.41 1.03 1.83 n. a
 RATIO ANALYSIS (CONT.)

Debt ratios
Debt to net worth 0.05 0.07 0.09 n. a
Current liability to liability 1.00 1.00 1.00 n. a

Liquidity ratios
Net working capital 648,675 508,070 561,296 n. a
Interest coverage 0.00 0.00 0.00 n. a

Additional ratios
Assets to sales 2.43 0.97 0.55 n. a
Current debt/ total assets 4% 7% 8% n. a
Acid test 23.18 15.15 12.13 n. a
Sales/net worth 0.43 1.10 1.99 n. a

Dividend payout 0.00 0.00 0.00 n. a

THANK YOU