Food Arcade: Start up initiative

Food
Arcade……
.

(Taste of IUST)

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 Food Arcade: Start up initiative

TABLE OF CONTENTS

Introduction......................................................................................................................................4
1.0 Executive Summary............................................................................................................5
1.1 Business Objectives.......................................................................................................................................5
1.2 Mission Statement.........................................................................................................................................6
1.3 Guiding Principles.........................................................................................................................................7
1.4 Keys to Success.............................................................................................................................................7
2.0 Company Description.........................................................................................................8
2.1 Ownership.....................................................................................................................................................8
2.2 Legal Form....................................................................................................................................................8
2.3 Start-Up Summary.........................................................................................................................................9
2.4 Location and Facilities..................................................................................................................................9
3.0 Products...............................................................................................................................9
3.1 Products/Services Descriptions.....................................................................................................................9
3.2 Competitive Comparison.............................................................................................................................10
3.3 Product/Service Sourcing............................................................................................................................10
3.4 Inventory Management...............................................................................................................................10
3.5 Warehousing and Fulfillment......................................................................................................................10
3.6 Future Products/Services.............................................................................................................................11
4.0 Market Analysis................................................................................................................11
4.1 Industry Analysis.........................................................................................................................................11
4.1.1 Market Size.............................................................................................................................................11
4.1.2 Industry Participants...............................................................................................................................11
4.1.3 Main Competitors...................................................................................................................................12
4.1.4 Market Segments....................................................................................................................................12
4.2 Market Tests................................................................................................................................................12
4.3 Target Market Segment Strategy.................................................................................................................13
4.3.1 Market Needs..........................................................................................................................................13
4.3.2 Market Trends.........................................................................................................................................13
4.3.3 Market Growth........................................................................................................................................13
4.4 Positioning...................................................................................................................................................13
5.0 Marketing Strategy and Implementation.......................................................................13

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 Food Arcade: Start up initiative

5.1 SWOT Analysis...........................................................................................................................................13

5.1.1 Strengths.................................................................................................................................................14
5.1.2 Weaknesses.............................................................................................................................................14
5.1.3 Opportunities...........................................................................................................................................14
5.1.4 Threats.....................................................................................................................................................14
5.2 Strategy Pyramid.........................................................................................................................................15
5.3 Unique Selling Proposition (USP)..............................................................................................................15
5.4 Competitive Edge........................................................................................................................................15
5.5 Marketing Strategy and Positioning............................................................................................................16
5.5.1 Positioning Statement.............................................................................................................................16
5.5.2 Pricing Strategy.......................................................................................................................................16
5.5.3 Promotion and Advertising Strategy.......................................................................................................17
5.5.4 Website....................................................................................................................................................18
5.5.5 Marketing Programs................................................................................................................................19
5.6 Sales Strategy..............................................................................................................................................19
5.6.1 Sales Forecast..........................................................................................................................................19
5.6.2 Sales Programs........................................................................................................................................20
5.7 Legal............................................................................................................................................................20
5.8 Milestones...................................................................................................................................................20
5.9 Exit Strategy................................................................................................................................................20
6.0 Organization and Management.......................................................................................21
6.1 Organizational Structure..............................................................................................................................21
6.2 Management Team......................................................................................................................................21
6.3 Management Team Gaps.............................................................................................................................21
6.4 Personnel Plan.............................................................................................................................................21
6.5 Board of Directors.......................................................................................................................................21
7.0 Financial Plan....................................................................................................................22
7.1 Important Assumptions...............................................................................................................................22
7.2 Start-Up Costs.............................................................................................................................................22
7.3 Source and Use of Funds.............................................................................................................................23
7.4 Break-Even Analysis...................................................................................................................................23
7.5 Projections...................................................................................................................................................24
7.5.1 Projected Profit and Loss........................................................................................................................24
7.5.2 Projected Cash Flow...............................................................................................................................24
7.5.3 Projected Balance Sheet..........................................................................................................................25
7.6 Business Ratios...........................................................................................................................................26

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 Food Arcade: Start up initiative

Introduction

Executive Summary

Business Objectives

Company Description

Start-Up Summary
This startup is aimed to renovate the traditional ways of operating the food catering
services and put them in line with the needs & expectations of the students & faculty
members (including other staff). Being the students of MBA department we are well
versed about the necessity to align the products & services with the changing market
needs. The biggest inspiration for this startup have been the students & staff of the
university who have given their feedbacks about the needs & problems of food catering at
the campus. Based on this research we found out a good scope for innovations in food
catering services at the campus.

Location and Facilities

This project is aimed to be implemented within the campus itself to make it convenient for
the students & faculty members to save their much important time & energy that gets
consumed on visiting other food catering service facilities around the campus. Due to rapid
expansion of the university campus we will ensure that the university administration
identifies the site within the campus which will be best suited& convenient for students &
faculty of every department.

Products

Products
Tea, Coffee, Saffron Kehwa, Cake, Butter Toast, Samosa, Egg Omelet, Egg Boiled, Pakora , Veg. Pathi,
Mutton Pathi, Chicken Pathi, Puri, Chapatti, Pulao, Daal Rajma, Chhole, Salad,Pickle, Ice Cream, Sweet
dish, Dal Makhani, Raita, Butter Non, Veg.Pulao, Jeera Rice , Paneer, Dahi , Papad, Soft Drinks,
Juices, Sandwich (veg/Grilled), Snacks (Veg.cutlet/Paneer Pakora/Chole Bhature/Mix.Pakora/Spring roll/
pastry/Biscuits), Chicken roll, Vegetable roll, Maggi, Chicken Biryani , Mutton Biryani, Alloo Paratha,
Chola puri, Burger, Pizza, Wazwan, All kinds of shakes, Softy, Tandoori chicken, Butter Chicken, Fried rice,
Shawarma, Momos, Potato fries etc.

Services Descriptions
Online wallet payments across all gateways to relieve students & faculty of cash necessity.
Delivery to doorsteps of cabins of faculty members.
E-orders with specified time of delivery across the campus.
Feedback system for every order delivered to help us serve better.

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 Food Arcade: Start up initiative

Calorie specification card to be provided with every order so that students & staff members can track &
plan their diet accordingly. This will be done by taking assistance from Food Technology Department
faculty & students.
Priority bookings for rush hours so that students & faculty member donot have to wait.

SWOT Analysis
SWOT stands for strengths, weaknesses, opportunities and threats. A SWOT analysis is a
method for strategic planning that evaluates these four elements as they relate to your
business objectives. While performing the SWOT analysis, you'll want to identify the
internal and external factors that are favorable and unfavorable to your company
objectives. This not only helps you look at the business objectively, but also helps in
devising the marketing strategy and the positioning you intend to adopt.

 Strengths - Your internal advantages (those within the company), compared to

others, which will help you achieve your business objectives.
 Weaknesses - Your internal shortcomings in the business that can potentially
prevent you from achieving your business objectives.
 Opportunities - External conditions (those outside the company) you see that will
help you to achieve your business objectives.
 Threats - External conditions that could potentially prevent you from meeting your
business objectives.

The first two are internal to the business; whereas, the last two are external in the sense
that they are related to the market and the competition. First, you develop a list of your
strengths, then weaknesses. Afterward, you compile a list of external opportunities and
threats to the business. After making the list for each of the four factors, you'll summarize
them to have a clear picture of the important points from each of the sections. The goal is
to draw a verbal picture that demonstrates what strengths and opportunities you can take
advantage of while overcoming or avoiding weaknesses and threats internally or within
your marketplace.

Strengths
Internal strengths are those found within your company. They give you an
advantage that other organizations may not have. Perhaps you have previous work
experience that gives you a business advantage. Or you have an innovative new-
patented product. Location of your business, your marketing skills, manufacturing
approach, well-known brand, financial resources, key staff… all of these could be
considered strengths. List each one.

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 Food Arcade: Start up initiative

Weaknesses
Develop a list of your internal weaknesses, which are the weaknesses inherent to you
or your business. You need to be aware of your weaknesses when creating your
business plan, so they don't negatively affect your likely success. For instance, if
you're weak in marketing, you may choose to outsource your promotions or hire
someone who has a strong background in this area. When identifying your
weaknesses, look for areas where you can improve. Examples of weaknesses are the
location of the business, low-quality products, negative branding (poor reputation),
little experience with this type of business, or high product and/or overhead costs.

Opportunities
Opportunities are openings in the marketplace that you can leverage to your
advantage. For instance, there may be a new niche that is developing that you can
enter. Or there may be an opportunity available due to a large company leaving a
market, new demographic for your product or service, new technology that allows
you to produce products or deliver services faster and cheaper… these and countless
others are possible opportunities for you.

Threats
Competitors can undercut your price because they are able to purchase wholesale at
a much lower price due to volume discounts. These companies have a much larger
marketing budget as well, which poses a threat. Other hazards might come later on.
For instance, you might enter a new niche that has been ignored by larger
companies. While success comes almost instantly, larger companies may follow suit
and enter the same market. They stand a good shot at taking a large share of business
in this case. One example is Walmart deciding to sell a competing product at a
discount in their stores. New regulations or import tariffs could also threaten your
business. Compile a list of anything or anyone you can think of that would
potentially pose a risk to your company.

Milestones
Milestone Date
Sign Lease with IUST 16/6/2018
Complete Interior Decor 17/7/2018
Complete Kitchen / Wait Station Needs 23/7/2018
Hire Back Staff 30/7/2018
Hire Front Staff 02/8/2018

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 Food Arcade: Start up initiative

Secure a Point of Sale System 15/8/2018

Secure Lending for Initial Start-Up, Working Capital and Cash Flow

Exit Strategy
Everyone starts a new business expecting success, and many times dreams do come true.
However, there are times when a business idea doesn't prove to be profitable enough to
base a business on, or you've lived your dream and are ready to move on. In order to limit
your exposure to excessive debt, it's a good idea to have an exit strategy when you start the
business. In this section, you should identify what would trigger an exit from the business
(sales revenue below $xxx, margins of $xxx, retirement, selling to someone else, etc.) and
how you will accomplish that exit. Questions pertaining to inventory liquidation, business
closings, selling the business, compensation and severance packages for employees, etc.
should be addressed.

Organization and Management

Organizational Structure
Food Arcade expects to hire 9 employees. Together, Manzoor Ahmad Beigh, Mir Usail
and other 7 operational members including cooks and workers.

Management Team

The restaurant will be owned by Manzoor Ahmad Beigh & Meer Osail. Also team and
non- substantive (Contractual) faculty members from School of Business that are a part of
this team will help in designing and management of the canteen.

Personnel Plan

Financial Plan
The financial plan will cover the following:

 Required Cost of Start-Up

 Profit and Loss
 Cash Flow
 Balance Sheet
 Financial Ratios

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 Food Arcade: Start up initiative

Start-Up Costs
Tracking expenses is an important responsibility for small companies. In this section,
you'll want to itemize all expenses associated with starting your business and operating it
for the first month. Begin with expenses, then current assets with no depreciation and then
long-term assets that will have depreciation value. Depreciation will be included after the
first month.

Start-Up Costs
Start-Up Expenses Amount

Total Start-Up Expenses

Start-Up Assets

Total Start-Up Assets

Total Required Start-Up Costs

Source and Use of Funds

We have identified to raise the require capital from two sources. Firstly we will contribute
individually & equally towards the capital. Secondly we will look for investors who will
invest in our venture to whom we will give dividends on earnings from venture. If the later
does not provide to be a successful fund raising means then we have a backup plan of
raising funds through bank loans. One of our partners has been doing business with banks
from quite long time & has enough credibility in the banks. Bank loan is therefore an
option to raise funds.

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 Food Arcade: Start up initiative

Break-Even Analysis
Businesses need to generate a certain number of sales dollars before they can break even.
This is because there are typically large, fixed-price monthly expenses that need to be
covered before you can start earning a profit. For example, you need to reach a sales
threshold before paying monthly rent, payroll, utilities, advertising and other ongoing
expenses. As the business grows, these monthly expenses may also grow - advertising
may increase, you may need a larger storefront or additional employees, insurance rates
may rise, etc. Additionally, you have variable costs such as purchasing the products you
sell. Be sure to include all fixed and variable costs in your break-even analysis. This
report should be presented in a graph format that shows the sales along the horizontal (x-
axis) and profit/loss along the vertical (y-axis).