International University of Business Agriculture and Technology (IUBAT) Prepared for Zahir Rayhan Salim Senior lecturer, CBA, IUBAT Course name: Entrepreneurship Code: MGT-401 (B) Prepared by Maple Leaf Students’ name Daud Sharif (Group Leader) Shuktara ID 17202045 18202042 Submission date: 10/09/2020 Contents Executive summary: ..................................................................................................................................... 2 Introduction:................................................................................................................................................. 2 Business Opportunities: ............................................................................................................................... 3 Proposed product/service idea: .................................................................................................................. 4 Food production ....................................................................................................................................... 5 The menu .................................................................................................................................................. 5 Feasibility Analysis: ...................................................................................................................................... 5 Product/Service Feasibility ....................................................................................................................... 5 Our suppliers ............................................................................................................................................. 6 Technical Aspects ...................................................................................................................................... 6 Financial projections ................................................................................................................................. 7 The List of equipment Assumption ........................................................................................................... 8 Pro Forma Monthly Income Statement of MLR- (2020) ........................................................................... 9 Pro Forma Balance Sheet of MLR- (2020) ............................................................................................... 10 Pro Forma Cash Flow of MLR- (2020) ..................................................................................................... 10 Ratio Analysis of MLR- (2020) ................................................................................................................. 11 Management........................................................................................................................................... 12 Assessing the business plan on social impact: .......................................................................................... 13 MLR Vision Statement............................................................................................................................. 14 MLR Mission statement .......................................................................................................................... 14 Business location and ownership: ............................................................................................................. 14 Business competitors: ................................................................................................................................ 15 Marketing strategy: .................................................................................................................................... 15 Exit strategy: ............................................................................................................................................... 15 Conclusion: ................................................................................................................................................. 16 1 Executive summary: We are wanted to become entrepreneurs that’s why we choose this restaurant business plan and it is a type of a “summary business plan”. Maple Leaf Restaurant (MLR) thinks that their business plan plays an important role regarding of ours, a cuisine restaurant. Our proposed business plan forecast approximately 10,00,000 BDT for the initial budget. And we will try to make the offer to our customers' different types of unique service and food. That's why the customers will easily be attracted to our restaurant day by day. Because we know many of the restaurants offer similar types of food and service. If we do the same kinds of things, then we couldn't be successful in our business sector. That’s why we must think very carefully before providing the food menu card and service. One thing is that our restaurant will be well decorated, and our staff will be very friendly to our customers. If we maintain this, then our restaurant business will become successful in a short period. Another thing is that if we will decide the food price according to our customers' desire price then it will more helpful for us to make the relation between owner and customer. We also think about students, local people’s taste, and their financial ability. What type of foods they are need and try to know their reasonable budget for it. Our selected restaurant place is Uttara sector 15 we can also say Uttara Diya Bari. Uttara is now becoming the model town day by day. Last but not least, we want to say that we will run the business very smoothly because we believe that honesty is the thing that is very useful for any business that's why we are confident here. At the same time, we believe, we will be successful in our business. Introduction: We are two friends Daud Sharif and Shuktara. And we are both university students of IUBAT. Me and my friend is now in ten semesters. Daud Sharif means my major is HRM and my friend Shuktara’s major is finance. We had a business plan last year. We want to start a restaurant business. Because we want to gain the achievement in our life by doing our dream business. We will do a restaurant business because food is now very important for us for surviving. Nowadays if we think about our entertainment in the town area, we don't need to go very far away from home. Our place is 15 no sector in Uttara near Santo Marium University’s new campus. And so many schools are also there. We choose this place because the students could spend a nice time in our restaurant for good food with their friends and family also. If we can serve a good service, then we can easily earn money from it and run the business quickly. Recently people began to spend their money and time in various sectors. If we do proper use of time than we can be a successful person in our life. We also decided our restaurant name it is “Maple Leaf Restaurant” in short form MLR. We know that every day a lot of restaurants appear in Dhaka city. We also know that we have a lot of competitors in our business sector. But me and my friend thought that if we can provide good service with unique value add for the customers and provide good quality food than we could compete with our competitors with competitive advantage. We have a budget for starting our business. The primary capital that we can afford is 10,00,000 BDT. If we can establish our business then we could expand our business very soon to the entire divisional city of Bangladesh. We know that everyone has their reasons for dining in a restaurant. We also know that in a good restaurant 2 we can do various types of things like we can celebrate our friends & family birthday, wedding occasion, engagement party, and so many social things. We have a dream that in the future we want to see our restaurant under the top five listed restaurants in Bangladesh. And our motto is “A bite of fresh taste”. Business Opportunities: In our country the restaurant or food industry is a very competitive and large industry. Also, it expenses a lot especially in such areas as Gulshan, Banani, Dhanmondi, etc. Because all these locations are already having a huge number of restaurants full of rivalry. Nowadays the same scenario has seen also in Uttara. It cost a lot to establish a business like these areas. That’s why to get a fast mover advantage we have decided to run our business at sector-15, Uttara. Because this location is very famous over the last couple of years but mostly here people found street food only. Also, there is a lot of high-rise building is under construction and few days the earlier ShantoMariam University of Creative Technology closes its all campus and moved their permanent campus over there, Atish Dipankar University of Science and Technology (ADUST) have a permanent campus there, DPS STS School Dhaka, Senior Campus is there, etc. We choose this place to take locational advantages over there. To minimize some fixed expanse at the beginning stage, we think it will be an advantage for us. If we think of our food industry area than we can easily say that the food industry is very popular in our country at the same time it is now increasing day by day. if we think about our success in the food industry then we must need a proper proven system. If we have a proper proven system, then we can easily achieve our goal in this sector. if we don't have then we couldn't able to achieve our goal. And it is the process of earning money and it creates also business opportunities. We all are known that without food we can't live. Sometimes food can be a business opportunity. The food industry is related to various organization which serves foods, beverages, etc. There are various opportunities in the food sector like restaurants, cafes, grocery outlets, delivery services, catering, vending machines, etc. In our country the food industry demand is almost above average, that’s why the market has become competitive. Starting of the food business side and challenging sector consumer wants alternative things and we should not avoid these things in this way this business can be different. Nowadays the people of Bangladesh are becoming more health-conscious than past. In this food industry, the investors are now expected to see more healthy options in their food menu. Also, owners of the business who are wanting to get in on the healthy foods trend now will be able to capitalize on this trend's success. 3 Proposed product/service idea: Maple Leaf Restaurant will offer a menu of food and drinks with a picture. There will be three different ways to buy these items; table assistance at the eatery, takeout from the restaurant, and delivery to home or office. The primary products of Maple Leaf Restaurant will include the following Menu (Assumptions) Burger Unique price- BDT (Assumptions) Beef- small (115), big (210) Chicken- Small (100), big (180) Sandwich Roll Chicken- regular 150 Vegetable- 60 Beef- 100 Chicken- 80 Chicken- regular 210 Beef- regular 310 1 piece- 60, 2 piece- 110, 5 piece- 250 Regular- 120 Vegetables- regular 110 Beef- regular 210 Chicken- 150 Vegetable- regular 150 Single- 110 Double- 200 Mutton- single 210, double 400 Beef- single 150, double 280 Regular- 150 Regular- 90 Especial- 150 Chicken- 30 per piece Beef- 45 per piece Regular- 150 Small- 150 Big- 280 Small- 120 Big- 200 Regular- 150 Pizza Chicken fry French fry Noodles Fried rice Chicken biryani Mutton/Beef biryani Chicken khichuri Coffee Chop Pastry chocolate Juice (apple, orange, mango, grape) Lacchi Faluda 4 Food production Food creation and get together will happen in the kitchen of the restaurant. New vegetables, meat, and dairy items will be utilized to make a large portion of the dishes without any preparation. The chef and his associate helpers will practice strict standards of sanitation, quality production, and presentation or packaging over the kitchen and service staff. The menu The Maple Leaf Restaurant eatery menu is moderate-sized, and moderate-low evaluated offering an assortment of ethnic, worldwide, and nearby things with a typical topic – sound (low-fat, low cholesterol, characteristic fixings), delightful, and natural. We will probably make the picture of light fulfilling and still nutritious food. Feasibility Analysis: Product/Service Feasibility Maple Leaf Restaurant (MLR) service style will either be fast-food, which offers food types that range from the burger, sandwich, roll, pizza, chicken fry, French fry, noodles, fried rice, chicken biryani, chicken khichuri, coffee, chop, pastry chocolate, juices, lacchi, faluda, sausages, salads and other which has full course meals at value prices; or upscale, offering full-service meals with low to medium level of price that means the reasonable price for the customers. Our unique selling proposition (USP) Observing all the other restaurant's service and food quality we came approach to a new plan of our unique selling, which is a hot dish (main course) that will serve extraordinarily. Say, for example, our dishes will be kept hot constantly on the customer table by using small stoves while they will be having their meals. Besides, this process is using only a few hospitality outlets through like few countries of the world. Another process can be flambeeing service according to customer demand; usually, this flambe service almost is not available in any other restaurant in Bangladesh that’s why we going to choose this for MLR. We are expecting that people will choose our restaurant that deserves the fair products that we can provide. At the fairest payment possible, this can be accomplished by pricing our services competitively and by providing a favorable, well-trained staff of professionals who will perform their job correctly. Since we motivate our employees and are trained by a good example, apart from this our interior decoration, ambiance, safety, and cleanliness may attract more consumers in perspective. Another aspect that we will make our restaurant unique will be the special price that will be offered to students, which will be very attractive to them. Students will have to show their school or college I.D card etc. Last but not least, we can provide some extra benefit to our regular customers those who are visit MLR at least one time in a week like 10% off for their payment and that will make them loyal customer for MLR. 5 Our suppliers MLR will choose the following suppliers, depending on their ability to supply fresh products at competitive prices in time and most of them are well known, good reputation, quick delivery, and reliable. ➢ ➢ ➢ ➢ ➢ Butchery – Uttara sector-10 Kacha Bazar is well known for butchery Dairy goods – Local dairy products (Milk vita products Fruit and vegetables – Local greenery shops at Uttara sector-10 Whole foods – Local food suppliers from Uttara Dry goods /Cleaning materials – Local good suppliers (Radhuni products) All sales are to be a cash basis. On the other side; we apply for credit facilities, as far as the payments to our suppliers are concerned. As the business is establishing so the suppliers accept, 40% on cash and 60% on credit. We hope that in the second year we win the trust of our suppliers and extend our credit facilities. Technical Aspects This era is all about technology. These days with updated technology things have become too easy to handle and organized. We can use some accounting software like- Troyee accounting software, Amar Hisab Bangla accounting software, etc. for managing our accounting purpose. We will install some modern advanced kitchen staff initially for attraction to our kitchen to the advertisements and publicity purposes. Also, we will try to install initially few modern decorations for our customers' extra attractions. When the respondents were asked if they are aware of the technology or not every one of them is happily answered that they are using the Facebook group, WhatsApp group instantly chat to organize events and it’s to handle everything. Yet these days there are several websites which give us professional service to work out the planning properly. Yet everything will be done digitally even in a more organized way. We can take our orders through a simple mobile app like- Foodpanda, Pathao food, etc. Even get then orders though using mobile calls directly. After this, we can provide our service also using these ways and MLR believes that makes more customer satisfaction. 6 Financial projections Sources and uses of funds statement Initial capital 10 lacks BDT Daud Sharif- 65% of capital: 650,000 BDT from family support Shuktara- 35% of capital: 350,000 BDT from family support Funds statement 700000 600000 500000 400000 300000 200000 100000 0 INITIAL CAPITA (BDT) Daud Sharif Shuktara 7 The List of equipment Assumption o Dish washing machine o Refrigerators o Gas Chula/stoves o AC o Grill stove o Deep fryer o Boiler o Microwave o Tables o Chairs o others decorator equipment 8 Pro Forma Monthly Income Statement of MLR- (2020) Revenue 360000 Raw Materials (4800*30) 144000 Rent expense (FC) 20000 Employees salary (FC) 80000 Advertising/Marketing expense (VC) 15000 Utilities (VC) 35000 Depreciation (FC) 6000 Income tax expense per month (15%) 9000 Net Income (300000) 51000 9 Pro Forma Balance Sheet of MLR- (2020) Description Taka Taka Asset Current asset 150000 Long term asset 660000 Total asset = 810000 Liability and shareholder equity Current liability 50000 Long term debt 100000 Long term liability 30000 Total liability 70000 Shareholder equity 400000 Retain earning 60000 Common stock 100000 Total liability and owners’ equity = 810000 Pro Forma Cash Flow of MLR- (2020) Particular Amount (BDT) Cash inflow Cash sale 150000 Cash from receivable 170000 New investment receives 200000 Total 520000 = Cash outflow purchase of fixed cost and other cost 220000 Total 250000 = Net cash flow(inflow-outflow) = 300000 10 Ratio Analysis of MLR- (2020) SL No. 1 2 Profitable ratio ROA (Net income/Total asset) 6.29% ROE (Net income/Shareholder equity) 12.75% Net profit margin (Net income/Revenue) 14.16% Liquidity ratio Current ratio (Current asset/Current liability) 3 2 Overall financial stability ratio Debt (Total debt/Total asset) 16.66% Debt equity (Debt/equity) 29.33% 11 Management Management structure/hierarchy should be explained in detail in this part of the plan. The total number of required employees along with their role have outlined clearly below Owner (Daud Sharif) Managing Director (Shuktara) Head Chef Assistance Chef Serve Worker 1 Serve Worker 2 Helper 1 Helper 2 12 Owner The Owner will look after everything that is behind this restaurant at all. He will monitor everything and control also. Every main decision he can take with after discussion with managing director or alone. Managing Director The managing director basically will do all accounting and financial issues and control all transactions with buyers and sellers also. She will look after all monetary issues for the rent issue, bill/payment issues, employee’s salary, etc. Two chefs & other staffs Maple Leaf Restaurant will hire initially two main chefs and under them, four staffs and they will work for the restaurant serves, cleaning etc. the purpose. Assessing the business plan on social impact: We believe that the first dimension of a sustainable business is its performance relative to societies and social connectivity through people, often referred to as a social impact. So social impact is so much importance to our business. We know that our country is under developing that’s why there is so many non-profit organization, NGO are working together, they have so many official or unofficial events for our country’s people and at the same time they need foods for that event for the poor people and here we can provide them healthy foods with the lowest price. so that we can socially relate to those organization’s and our country’s people. We are Bengali people we have lots of cultural yearly events like Pahela Baisakh, Pahela Falgul, Nabanno and so many. Also, we have Eid-Ul-Fitar, Eid-Ul-Adha for the Muslim’s and other religion’s events so we can make some offer for those targeting events and sometimes free foods for the poor people and street children and by these ways, we can make the social impact for our society and also for the country. This is our promise to the customers that we will give the best possible effort by considering the social impact. 13 MLR Vision Statement ➢ Healthy foods for all with organic taste ➢ lowest food price for poor people, and street children of every division of Bangladesh ➢ Get the fair market and share in the restaurant market within 3 years of operation ➢ Many product differentiations and ensure a variety of national and international food products at the lowest price. MLR Mission statement ➢ Our Mission is to provide a unique and quality food with organic taste by providing menu items incorporating quality ingredients at the lowest prices for all ➢ Justify good values of restaurant’s culture and business philosophy ➢ Produce and offer support which makes the client be maximumly fulfilled and ➢ Maintaining a moderate level of excellent services among other competitors ➢ Watchful of the wellbeing of our customers and staff– treating each one with dignity and respect Business location and ownership: At the starting Ownership of Maple Leaf portion, we are trying to monitor our Restaurnent business from Sector-15, Uttara. If Daud Sharif 35% we are succeeded, in 65% the future we have a Shuktara plan to expand the business all over the country mainly all divisional city, Currently, it’s a partnership business of two owners – Daud Sharif (65% of ownership) and ShukTara (35% of ownership). In the future, we have a plan to segment it into different shapes. 14 Business competitors: In our country, most of the restaurants offer a similar type of product or food. The best restaurant in Uttara like Boisakhi Restaurant, Sunlight Restaurant, Dhansiri Restora, etc. Nowadays many restaurants are trying to start up their business and provide their products and services through electronic platforms like Foodpanda, Pathao food. We are not looking forward to those organizations that have already a significant position. Our fundamental rivals in this portion are any food outlets inside the 1000-meter range along. We are trying to compete with all the beginners who are like us to become stable or sustain. Marketing strategy: We will take our marketing tactics to increase customer awareness. Our mainly important tactic will be "word-of-mouth” this will be by extreme the cheapest and most effective of our marketing programs. Promotional camping for students of traditional, national events. Especially for nonprofit organizations we will make our best promotional offer to get the poor people concern. We can also get the marketing strategy through posters by selecting random places in Dhaka city. We will use get the opportunity by online advertising through social media like- Facebook, Twitter, etc., radio and newspapers advertise, etc. We can also make our official website for promoting our foods and services for the people so that people can easily make the connection with “Maple Leaf Restaurant”. Our marketing strategy is based on serving niche markets as well. The seniors, families with young children, blue-collar workers, middle-income individuals, and most of midBangladeshi can all enjoy the dining experience at “Maple Leaf Restaurant”. Exit strategy: Pretty much every individual from a various organization agrees that their motive be at list two backup plans. But from our experience what we found that people are used to with the method of "will perceive what occurs". People are not used to having proper backup plans, yet they aim to face an obstacle, and then they will solve it rather than having a good proper backup plan and in the time of bad situation then executed. After all, we have two exit strategy that is given below: 1. Liquidation- Here we can quickly make our money to sell all assets and it is our more Simplicity exit strategy 2. Sell the business to the current employees- Here we can get some positive reviews as owners for our future business from our current employees if we going to open our new business again. 15 Conclusion: We know for any type of business owner should take all responsibility with risk, especially for the new entrepreneur like us the risk level is so high because we have no business experience yet and lots of startup challenges. But as we are fresh graduates, we must face this for our first experience whether profit or loss. Though we know the restaurant business is profitable if we can do it systematically. So, we can say we believe in our work, and let's see can we graph the marketplace or not for the Maple Leaf Restaurant. Finally, we can say with we believe that MLR wants to say to the customer if you come to Maple Leaf Restaurant then you will find “A bite of fresh taste”. 16