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“Business plan”

BBA 8th. A

Business Plan submitted in partial fulfilment of the

requirements of the Entrepreneurship

Management Sciences Department

at the

National University of Modern languages and Sciences

at

Islamabad, Pakistan

Submitted To: Sir Adnan Iftikhar

Dated: 16-12-2016

DECLARATIONS:

We declare the following:

(1) That the material contained in the business plan is the end result of our group and
that due acknowledgement has been given in the references to all sources be they
printed, electronic or personal.
(2) The Word Count of this business plan is……..
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(3) That unless this business plan has been confirmed as confidential, I agree to an
entire electronic copy or sections of the business plan to being placed on the material
if deemed appropriate, to allow future students the opportunity to see examples of past
business plans.
I understand that if displayed on The Material it would be made available for no longer
than five years and those students would be able to print off copies or download. The
authorship would remain anonymous.
(4) I agree that our business plan can be judged by the management team in order to
a plagiarism detection, where it will be checked and compared against work submitted
from this university or any other university.
In the event of the management team detecting a high degree of similarity between
content within the service this will be reported back to my lecturer, who may decide to
undertake further investigation that may ultimately lead to disciplinary actions, should
instances of plagiarism be detected.

SIGNED:

Name Signature

Group leader - FARIA ABBAS

Member 1- NAYAB GUL
Member 2- FARAH IKHLAQ
Member 3- NEELAM RAUF

Abstract
The name of our stall will be HAOCHI CORNER. HAOCHI CORNER will be a locally
retail Chinese stall that will be positioned in entrepneural week in NUML Islamabad.
The stall items are Chicken Chowmin, Chicken Manchurian with Chinese fried rice,
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Chinese spring rolls and hot and spicy pokoray with different sauces and Pink tea.
HAOCHI CORNER is a fast-food and tea stall managed by four member.HAOCHI
CORNER will provide a combination of excellent food at value pricing and detailed
presentation. HAOCHI CORNOR is the answer to an increasing demand for Chinese
fast food, to be consumed while window shopping and walking around inside a ground.
Our main priority is to establish our stall in a crowded ground. HAOCHI CORNER
will entice youngsters to bring their friends and family in to our stall. We create a
unique, innovative, entertaining menu that will differentiate us from the rest of the
competitors and Provide 100% satisfaction to our customers and maintaining the level
of excellent services among other competitors. The stall provide freshly prepared
products at all times during entrepneur week. And Promote good values of Chinese
culture and business philosophy.

Acknowledgement:

First of all we are really thankful to Almighty Allah who gave us the strength to work
on Business plan in fact, it was really very tough to work on this project. It is because
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this was our first project and we did our best and complete it in time without any
hurdles. We are special thankful to our teacher Sir Adnan Iftikhar, Who have always
been the source of inspiration for us. He supported us and guided. Therefore, we
thoroughly pleased with him and without his help it was not possible for us to make
precious project.

In addition, we would also like to thank the various individuals who have contributed
in any way possible. Their contributions are sincerely appreciated and gratefully
acknowledged. To friends and other who in one way or another shared their support
either morally, financially and physically, thank you.

Table of Contents:
1. Executive summary........................................................................................06
2. Business description ……………………………………………………………...07
3. Marketing strategies……………………………………………………………….08
3.1 Market share ……………………………………………………………………...08
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3.2 product……………………………………………………………………………...08
3.3 price ……………………………………………………………............................09
3.4 placement…………………………………………………………………………...09
3.5 Promotion........................................................................................................09

3.6 Positioning.......................................................................................................09
3.7 Sales strategy…………....................................................................................09
4. Competitive analysis…………………………….................................................10
4.1 Identify and analyze the competition................................................................10
4.2 competitive advantage ……………...................................................................10
5. Design and Development plan............................................................................10
6. Operation and Management plan........................................................................11
7. Financial plan…………………………………………………………………………..12
7.1 Balance sheet…………………………………………………………………………12
7.2 Income statement…………………………………………………………………….12
7.3 Cash flow statement………………………………………………………………….13

1. Executive summary

The name of our stall will be HAOCHI CORNER. HAOCHI CORNER will be a locally
retail Chinese stall that will be positioned in entrepneural week in NUML
Islamabad.HAOCHI CORNER will provide a combination of excellent food at value
pricing and detailed presentation. HAOCHI CORNOR is the answer to an increasing
demand for Chinese fast food, to be consumed while window shopping and walking
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around inside a ground. . HAOCHI CORNER is a fast-food and tea stall managed by
four member. Our main priority is to establish our stall in a crowded ground. HAOCHI
CORNER will entice youngsters to bring their friends and family in to our stall. The
stall items are Chicken Chowmin, Chicken Manchurian with Chinese fried rice,
Chinese spring rolls and hot and spicy pokoray with different sauces and Pink tea. We
create a unique, innovative, entertaining menu that will differentiate us from the rest of
the competitors and Provide 100% satisfaction to our customers and maintaining the
level of excellent services among other competitors. HAOCHI CORNER expects to
catch the interest of a regular customer base with its variety of food and tea. The stall
plans to build a strong market position in the ground, due to the competitive climate in
the area. HAOCHI CORNER aims to offer its products at a competitive price to meet
the demand of the student income local market area Chinese student and visitors.
HAOCHI CORNER offers a food product and tea, all from good quality. HAOCHI
CORNER give to all of its customers by providing each customer tea and Chinese fast
food products made to suit the customer. The stall provide freshly prepared products
at all times during entrepneur week. HAOCHI CORNER wants to establish a large
regular customer base. This will establish a healthy, consistent revenue base to
ensure profitability of the business. HAOCHI CORNER focus on the Chinese student
and visitors. These market segments consume the majority fast food and pink tea.
Local students (HAOCHI CORNER wants to grab a large no of customer. This will
establish a healthy, consistent revenue base to ensure profitability of the
business).Visitors (visitor’s traffic comprises approximately 20% of the
revenue. Minority visibility and tasty products are easy to capture this segment of the
market).Because Islamabad has a cool climate for now a days, fast food and hot
products are very much in demand. Despite heavy competition in the stall area,
HAOCHI CORNER will position itself as a place where customers can enjoy a cup of
tea with fast food products and snacks in a relaxing environment. HAOCHI CORNER
competitive edge will be the relatively heavy level of competition in the local area. All
of us represent sales/management and finance/administration areas, respectively. We
will provide funding from our own savings, which will cover start-up expenses and
provide a financial base for the first day of operation. Our stall expects to raise 5,000 of
its own capital, and to borrow 8000 by selling the tickets. By selling these tickets it will
lead to the marketing and selling promotion of our business. And Promote good values
of Chinese culture and business philosophy.

2. Business Description
Our main goal is to be one of the most successful fast food stall in an entrepneur
week. HAOCHI CORNER will strive to be a premier local Chinese fast food brand in
the local marketplace. We want our customers to have the total experience when
visiting our stall. And the main focus will be serving high-quality food at a great value.
To establish a presence as a successful local fast food stall and gain a market share
in an entrepreneur week .To make HAOCHI CONER a destination spot for Chinese
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and visitors. To succeed in this business we must create a unique, innovative,

entertaining menu that will differentiate us from the rest of the competition. Sell the
products that are of the good quality, as well as keeping the customers happy with all
of our product categories of food. Provide 100% satisfaction to our customers and
maintaining the level of excellent services among other competitors. HAOCHI
CORNER will be organized as a partnership, with ownership by Farah ikhlaq, 25% -
Nayab Gul 25% - Faria Abbas, 25% - Neelam Rauf, 25%. We promote our stall by
selling the tickets it will lead to the marketing of our business. Encourage the two most
important values in fast food business: brand and image, as these two ingredients are
a couple of main drivers in marketing communications. Promote good values of
Chinese culture and business philosophy.HAOCHI CORNER sells Chicken Chowmin,
Chicken Manchurian with Chinese fried rice, Chinese spring rolls and hot and spicy
pokoray with a choice of sauce. We use the concept of Neikong Chinese restaurant
where all the products are made freshly fried twice. Our stall also provides excellent
and friendly customer service to support the ambience of fun, energetic and youthful
lifestyle. Our store will feature display cooking of spring rolls and pokoray and our
customers will also be able to read our in-house menu and panflex in regards to all
knowledge about HAOCHI CORNER and our featured sauces. Our store will be
decorated with Chinese lantern and the stall is open from 8am to 6 pm, 22nd and 23rd
December 2016.

3. Marketing strategies

When most people think about the term “marketing,” they usually have one type of
activity in mind: advertising. Marketing is actually much more than simply advertising;
it is everything you do to promote your business and your food products, from the
moment you conceive of a product to the point at which customers buy it. Our strategy
is based on serving our markets well. We will start our stall as a "market tester" that
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could become a model in the ground of rest the ground. Concentration will be on
maintaining quality and establishing a strong identity in the entrepreneur week. The
market size includes about 60 stalls with in the ground.HAOCHI CORNER focus on
the Chinese and visitors. Chinese (HAOCHI CORNER wants to grab a large no of
customer. This will establish a healthy, consistent revenue base to ensure profitability
of the business).as NUML becomes international and opened its branch in china so
there is an increasing number of Chinese students in the university Visitors (visitor’s
traffic comprises approximately 20% of the revenue. Minority visibility and tasty
products are easy to capture this segment of the market).Marketing strategies include
4p’s: product, price, placement and promotion.

3.1 Market share:

Our main target are Chinese customers. In NUML 1/4 are the foreign students in which
mostly are Chinese. We are offering more tasty food as compare to our competitors
so we are expecting are market share are more.

3.2 Product:

A product needs to be relevant: the users must have an immediate use for it. A product
needs to be functionally able to do what it is supposed to, and do it with a good quality.
We want to focus only on selling Chinese fast food. Hot pink tea will also be sold in
our stall, as HAOCHI CORNER promotes a healthy and positive Chinese lifestyle.
Main products sold in HAOCHI CORNER are: Chicken Chowmin, Chicken Manchurian
with Chinese fried rice, Chinese spring rolls and hot and spicy pokoray with different
sauces and Pink tea.

3.3 Price:

Price is the value that is put to a product or service and is the result of a complex set
of calculations, research and understanding and risk taking ability. A pricing strategy
takes into account segments, ability to pay, market conditions, competitor actions,
trade margins and input costs, amongst others. It is targeted at the defined customers
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and against competitors. The price of our product will be according to the targeted
customer. Our target customers are the Chinese students so the price of the product
are moderate because mostly students are not a salaried persons so we will adopt the
fair pricing strategy.

3.4 Placement:

Placement is the range or location. As this business remains only two days of
entrepreneur week so the placement of the products are only on our stall.

3.5 Promotion:

Promotion refers to marketing communications. Our promotional strategy will be

simple and hoped that it would work and drive our sales up a lot. We adopt a
promotional strategy by selling tickets within university and outsiders as well and we
also made pan flex for promotional strategy. We have not only sold tickets to the
Chinese but also to other local people so that they may also know about our stall and
at least they may visit it.

3.6 Positioning:

Our main focus in marketing would be to increase customer awareness of our food
products in the surrounding community. We will direct all of our tactics and programs
toward the goal of explaining who we are and what we are all about. We will price our
products fairly, keep our standards high, and execute the concept so that “word-of-
mouth” will be our main marketing force.

3.7 Sales Strategy:

The sales strategy is to build and open new locations in order to increase revenue.
However, this plan will be implemented when the one "market tester" stall showed
potential growth. Customer service is of the utmost importance. Customer surveys
estimate that only 1 in 20 customers that have a problem in a stall is the management
and bad quality of food about it.we will try our level best that our customer would not
come with the complaint of bad quality of food. The goal of the stall on the first day of
operation, is 25000 approximately. We are expecting a conservative 10% increase in
sales revenues next day. The growth is adjusted because the café will remain close
second day so we expect more sale in second day of entrepreneur week.

4. Competitive analysis

4.1 Identify and analyze the Competition:

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The competition in this arena is the fiercest in all other stalls in entrepreneur week.
Usually there are a minimum of two of the same Chinese stalls within a ground.
Another reason is because many retailers do not want to lose sales opportunity, as
the competitors are offering substitutions and similar product categories. This
phenomenon has made entrepreneur week the best place to shop. Our main
competitors in this segment are any Chinese food stall within the ground. In our location, there
are Tashty food by V3, they are our main competitors because they are also serving in
Chinese food and targeting the Chinese market segment.

 Tashty food by V3

The item of the tashty food stall are macaroni’s, Chinese rice, cold drinks and Green
tea.

4.2 Competitive advantage:

HAOCHI CORNER has several advantages over its competitors:

 Unique concept of dipping sauce.

 We expect a high degree of enthusiasm with friendly members that reflects the
stall youthful and energetic culture.
 Our spring rolls and pokoray with dipping sauce is made 100% fresh, compared
to most fast food stalls that use frozen rolls and pokoray.
 Our dipping sauce is also made fresh without preservatives.
 Our innovative decorations will be more entertaining than our competitors;
because it reflects the Chinese culture.

5. Design and development plan

 Marketing aspects:

White rice with carrot, pea, egg and capsicum. Chawmin and Manchurian with chicken
and vegetable. 1 medium plate of rice with Manchurian. Proper parcel box for
Chawmin and cups for pink tea.
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 Technical aspects:

White rice with carrot, pea, egg and capsicum. Chawmin and Manchurian with chicken
and vegetable. Spring rolls with sauces and Pink tea with Nuts.

6. Operation and management plan

The initial management team depends on the members themselves, with. If we start
our business in the real market, we will take on additional help in certain key areas.
We will not add additional overhead until absolutely necessary. This will mean that the
initial member will have to work extra. By doing this, we will keep our overhead as low
as possible. This will also allow us and future business partners to recoup investments
as quickly as possible and enjoy a higher return. At present time, HAOCHI CORNER
is being owned by its 4 members. Others that have helped on the development of this
business .stall will be offered an opportunity to grow together with the company at the
appropriate time, and when the time comes, the 4 member’ share will be consolidated
as one entity.

6.1 Management team:

HAOCHI CORNER is currently the creative idea of its four members. Implementation
of this organization form calls for all four individuals to make all major management
decisions in addition to monitoring all other business activities. Each member will work
10 hours per day.

6.2 Organizational Structure:

As the stall is small in nature, it only requires a simple organizational structure. Current
plan is to have our accounting and payroll functions done by an in-house bookkeeping.
Farah Ikhlaq will be responsible for accounting and business development of HAOCHI
CORNER. Nayab Gul and Neelam Rauf will be dealing with customers and Faria
Abbas will be responsible for cooking of spring rolls and pokoray. In the long run, if we
start business in real market then our product category and retail outlets, we will employ more
people in the middle management to ensure the focus of our work.

7. Financial plan
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The stall is now held by Faria Abbas, Farah Ikhlaq, Nayab Gul and Neelam Rauf. Currently,
the stall is owned by the original 4 members, who each will contribute 3000 for the same
amount of share, 25%. This will more than cover start-up requirements, and provide the stall
with a cash cushion for two days.

7.1 Balance sheet:

HAOCHI CORNER projected stall balance sheet follows:

Assets:
Cash 10,000
Inventories 8,000
Account receivable 00
Fixed assets 00
Total assets 18,000

Liability and owner equity:

Short term debts 00
Long term debts 00
Total liability 00
Capital 10,000
Retained earnings 8,000
Total liability and capital 18,000

7.2 Income statement:

Sales 52500
Less CGS 18000
Gross profit 34500
Less Operating expenses 6000
EBIT 28500
Less Interest 00
EBT 28500
Less Tax 00
Net income 28500

7.3 Projected Cash flow:

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Cash inflows:

Cash received from customer

55000
Cash outflow:
Product expense 15000
Rent 5000
Transportation expense 1000
Catering 2000
Gas expense 1000
Pana flax 1000
Decoration 500
Subtotal
25500
Net cash flow
29500
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