A BUSINESS PLAN BY WIKIPEDIAS

SUBMITTED BY
WIKI

PEDIAS
NO
1
2
3
4
5
6
7

STUDENT NAME

ABDUL REHMAN
ARSLAN AHMAR
IQRA RAFIQUE
ZEESHAN AHMAD
HASHIM BIN SHAHBAZ
WALEED ALI
MUNEEBA NASIR

ROLL NUMBER
13262
13246
13213
13235
13241
14105
13296

SUBMITTED TO
SIR FARUKH JAVED

SUBMISSION DATE
9/June /2014

Superior

university Lahore

ACKNOWLEDGEMENT

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A BUSINESS PLAN BY WIKIPEDIAS

First of all we are thankful to Almighty Allah who in spite of all our weaknesses
enabled us for this type of project.
We are also indebted to our teacher MR. Farukh Javed for his kind of guidance and
supervision. Under his direction we get the opportunity to polish our concealed
qualities and skill moreover, their timely help and guidance paved a way for us to
complete a work on such a critical and vast topic. It was surely his method of teaching
& eagerness for imparting knowledge that we did not find much difficulty to give in to
our thoughts and information. He motivated us to work hard and to achieve high-level
performance. The development of this project has enabled us to better understand the
contents of the course.
He guided us and taught us with different techniques, which enabled us to complete this
project, as well as for unconventional style of teaching and maintaining very open and
competitive atmosphere within the class, which made the subject very interesting for us
the most important thing is that the knowledge which we have studied in our subject
was all that same which we have to apply practically

We dedicate our
first

Business

plan Project to
Allah Almighty
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A BUSINESS PLAN BY WIKIPEDIAS

who has made it possible for us to work & then to our Respectable teacher Mr.
Farrukh Javed. Who provided us with all the guidelines to prove ourselves. We are
grateful to them for giving us this opportunity to explore new dimensions and to help us
how to build a new business plan and its capital budgeting. We are indebted to them for
giving us following opportunity which will help us in a long run. Inshallah

TABLE OF CONTENTS
No

CLASSIFICATION
TITLE

Page
no

1.

INTRODUCTION
Business profile & category
Vision & mission
Values & slogan
Goals, objectives & ethics
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A BUSINESS PLAN BY WIKIPEDIAS

2.

Key stakeholder

3.

Organizational hierarchy

4.

Facts and figure about business in Pakistan

5.

Selected area & location

6.

Why this area and its geographical overview

10

7.

Purpose

10

8.

Differentiation/ specialty

11

9.

Our products

11

10

Our deals

12

.
11

Initial investment

16

.
12

Stockholders names & their investment

16

.
13

Starting infrastructure & expenses

17

.
14

Daily expense

18

.
15

Monthly expense

19

.
16

Annually expense

20

.
17

Daily revenue

20

.
18

Monthly and annually revenue

21

.
19

Our required labor

21

.
20

Our competitors and timings

22

.
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A BUSINESS PLAN BY WIKIPEDIAS

21

Marketing expense

23

.
22

Promotional tools

24

.
23

Market segmentation and target market

25

.
24

BUSINESS ANALYSIS

26

25

Pest
SWOT (of our business and our competitors too)
PLC
BCG
Ansof model
How to attract customers

33

.
26

CAPITAL BUDGETING

34

27

Initial investment
Operating cash flows
Net present value
Payback period
Profitability index
Findings

37

.
28

References

38

.
29

Conclusion

39

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A BUSINESS PLAN BY WIKIPEDIAS

CATEGORY
Food restaurant

COMPANY PROFILE
The following business is a new business which is established by the investment of seven partners.
The category of the business is a restaurant line. It will be open 12 pm to 2am. Currently it is going
to be established in iqbal town further we will plan about its further branches.

Official Website: www.chickenhut.com.pk

Official Email: chickenhut@hotmail.com

Vision
Passion to serve taste and quality

Mission
To sell delicious and astonishing food and drinks that meets the highest standards of quality,
freshness and seasonality and combines both modern-creative and traditional southern styles of
cooking.

OUR VALUES
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A BUSINESS PLAN BY WIKIPEDIAS

Quality
Taste
Integrity
Positive attitude

Slogan
When you feel hungry

Goals

To provide best food in market regarding taste and quality

Maximize restaurant revenue
Attract the other restaurant customers
To be a best restaurant of the market

Objective
Open our restaurant branches in other areas of Lahore
To be a best restaurant of Lahore
Maximize the wealth of partners

Ethics

Provide fresh foods always.

Provide standardize foods.
Prices of products are economical.
Maintain a high value of discipline and positive environment.

Key Stakeholders

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A BUSINESS PLAN BY WIKIPEDIAS

Companies respect their stakeholders as they are the family of the company. These stakeholders are
they basic success key for the company if they happy than company happy if they sad than company
is unfavorable.
Our restaurant stakeholders are as following:

Creditors
Customers
Directors
Employees
Government
Owners (shareholders)

Organizational hierarchy
IA
Q

B
R
D
D
A
U
L
R
A

R
F
IE
Q
H
H
U
M
E
A
N

Facts and figure about restaurant business in

Pakistan
(Why we choose this business line)
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A BUSINESS PLAN BY WIKIPEDIAS

Pakistan is a place where businesses are always on uncertainty. Because risk factor is a bit too
because Pakistan is a collapsed and least developed nation starting a business over here is difficult.
Because it can be collapsed anytime due to lac of investment, filthy government policy, lack of loan
facility, economical drawbacks and other poor forecasting. Although there are some business which
seems very successful in Pakistan since now after all of those drawbacks that businesses are;
clothing, restaurants, spear parts, automobiles, catering, hospital and medicines, properties etc.
according to recent survey 70% of Pakistani people consumption of their income are on personal
necessities and other eatable commodities. So if a person is earning 100000 he will consume around
60 to 70 thousands on this regard. So, eatable commodities and restaurant businesses are on top
listed in countries like Pakistan. And the following trend is much more in especially Lahore and
Gujranwala. Hence, to start a businesses of restaurant in Pakistan is not so risky as others and would
be productive as others and will return you maximum profit if you run it efficiently.

Selected area
Iqbal town (in-between Fri-chicks and McDonalds)

Location
Jalal center ground floor, Kashmir block, off the road Lahore.

Why iqbal town

The reason behind selection of this area is that this area is a big and famous area of Lahore and has 27 blocks in it.
There are several aspects of selecting of this area which is that this area is linked with moon market, people eating
trend is more, every class of people are over here, there are famous institutes like Punjab university, science college
and others are near to it, other big areas are attach and adjacent of it like Muslim town, garden town, kareem block,
sabza zar, samna abad, and restaurant trend has a feasible output in iqbal town. Moreover, we do not need much
amount to utilize on marketing as our restaurant will be in between two big restaurants of this area and on the main
road. These are some basic aspects of selecting this area.

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A BUSINESS PLAN BY WIKIPEDIAS

Geographical overview

Purpose
The purpose of our business is to provide quality eatable commodities having superior taste and quality at least
economical prices so it can attract maximum customers of iqbal town jurisdiction.

Differentiation / specialty
Online delivery and order
Several deals
Economical prices

Quality
Taste

Our products
Garlic bread

Garlic mushrooms
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A BUSINESS PLAN BY WIKIPEDIAS

Spicy wedges
Chicken wings
Flaming wings
BBQ chicken spin rolls
Behari chicken spin rolls
Cheese stuffers
Trio box
Sandwiches

Desserts
Beverages
Pizza
Chicken Tikka
Afgani Tikka
Chicken fajita
The Euro
Fajita Sicili

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A BUSINESS PLAN BY WIKIPEDIAS

12 | P a g e

 Our deals

1
2
1
r
ep
e
e
g
g
u
u
lr
as
a
ro

1
:
s
n
p
p
iae
l
z
rzaa
v,p2a
e4p
cn
p
ss
c
.s
p
g
ai
g
rz
a
rl
liz
ica
c
b
r&
b
reo
an
e
d
a
e
d
,
1
1
s
se
s
ar
a
l
av
a
i
d
d
,n
&
g
1
1
.
o
5
5
.l
tf
p
r
e
.
p
p
s
ie
p
s
is
i

Deal:-1
1

Deal:-2
2
Deal:-3
333
Deal:-4
4
Deal:-5
5

Super Deals

cl oh i c a k le nD n se u lFepri g eha m ts et s

Classic Pizza

chV heo egt eg& si e p i cl o y v e rs

Diy Pizza

BE xeetraf

Initial investment
Total amount: - 100,000,00

Stockholders and their contribution

ZMWIA
EUAQRB
ENLRSD
SALEU
HAEAL
ABDMRN
NAAR
FALE
Ih
A(IH
hQm5(M
mUa05A
Er
a0N
d0
0
0
)0
)

H
H

A
S
II
b

n
h
h
b

s
a
a

Starting infrastructure and expenses

ITEM

PR
IC
E

Rent in advance

0,

00

Pizza machine

00
Decoration

00
Other machinery

Sofa

0
30
,0

0
25
0,

90

0
25
00
00
50
00
00

Entrance & counter

expense

20
,0
00

Other furniture

0
20
,0
00
0


25

LCD

00

00
30

Grocery

00

00
25

Ac

0,

00
0

Total expense

2850000

Our daily expense

In daily expense are fellow daily maintains chargers are 30,000. Daily chicken
expense cost is 44320. Per kg cost is 277and daily requirements are 160 kg. Nuggets
and Cheese expense 139400 and 20000 respectively. And the petrol expense is
50,000. Total daily expense is 283720. Description are as follow:

Product

ua
nti
ty
(k
g)

To
tal

 Chicken

16

44
32
0

Cheese

10

20
00
0

Nuggets

10

13
94
00

Daily

expense
Petrol

,0

expense

Total

30
00
50
,0

expense

00
28
37
20

Monthly expense
In the monthly expense daily expense multiple with 30. Total expense is 8511600
per month rent 150000, and electricity bill 100000, salaries are 160,000. That is all
monthly expense

Item

T
o
t
a
l

Daily expense *with 30

283720*30

8
5
1
1
6
0

Per month rent

0
1
5
0
,
0
0

Electricity bill

0
1
0
0
,
0
0

Salaries

0
1
6
0
,

0
0
0

Total expense

8
9
2
1
6
0
0

Annually expense
In the annually expense all the monthly expense are added in starting expense that
are shown in below table

Item

Total

Monthly expense*12

107059

8921600*12
Starting expense

200
285000

Marketing expense

0
384780

Total expense

110,2

93,98
0

Daily revenue
Daily revenue is estimated with our daily deal and average cost of our expense.
Estimated daily our serves deal generated the 105000 revenue and the and the
classic deal generated the 100000 revenue and the diy pizza generated the 30000.
And the last two deal that was Supremes deal and mid night deal (15%) after 11 pm
the both deal generated 148022. Each deal cost profit is 35% of its total. Remaining
65% is deducted due to its expense.

Daily revenue is: 105000+100000+30000+148022 =

383022

Monthly revenue
Monthly revenue is accruing when we multiply the daily revenue with 30.
(383022*30=11490660)
Classification

Total

 383022*30

11490

660

Annually revenue
Annually revenue is accruing when we multiply the monthly revenue with 12.
Classification
11490660 *12

Total
13788

7920

Our labor
Two managers
Salaries =(400000*2)
Salaries =5 waiters (10000*5)

Salaries =1 cook (300000)

Salaries =2 helper (10000*2)

Our competitor

K
F
M
B
F
R
E
U
C
I
C
N
D
C
O
U
H
N
I
A
K
C
L
H
K
D
A
S
N

Our

timings

12:00 pm to 2am

Marketing
Marketing expense

Marketing budget

Total expenses

Miscellaneous expenses

Total marketing budget


Promotional tools

W
P
e
ftw
sb
p
n
ld
lh
ra
u
ie
o
O
R
rb
e
n
m
lo
sw
c
M
O
o
x
n
p
ilu
sh
c
a
M
it
u
e
h
c
b
a
p
lo
O
t
rsg
h
lo
a
u
T
o
sh
e
a
p
n
c
I
rsn
m
d
te
a
si
d
re
b
O
c
sm
d
p
la
N
rA
ia
u
n
e
m
io
la
d
L
e
lm
o
d
o
p
fsti
e
T
O
rftia
ro
e
a
O
n
tra
L
st
o
S
re
g
i
e
s

Marketing segmentation

 Geographic: Pakistan will be our home country. All business functions and
operation will be directed from home country. We are taking start from Lahore as
then its up to the company that whether to expand it or not and at what level till
they expand. A lot of impact will be created by the collection of revenue that if the
first branch does good business than the company will look to expand the product
and this technology.
Demographic:
Age: more than 6 years
Gender: Everyone
Occupation: Professional, students, businessmen, housewife
Education: Not necessary
Psychographic:
Social class, upper middle, middle, lower middle, elite class.
Behavioral:
Benefits: quality, economy
Attitude: positive
TARGET MARKET
Our service will be available in Lahore at Iqbal town, initially. But we will expand it
to different areas and cities after some time.
Our target audience generally will be:
Man and women of all age mostly age above 6 to so on.

Business

Analysis

PEST Analysis
Political: In accordance with the current scenario in Pakistan govt. changes very
rapidly and so do the policies, such change in policies can influence our company in
a negative as well as positive way.
Economical: Similarly economic conditions can be in our favor and against us. If
there is inflation in economy then purchasing power of people will fall and our sales
may decline and if interest rate increase then our investment may not increase and
vice-versa is the case.

 Social: By giving social benefits our brand image may increase like as our
restaurant is situated in a residential area so we can provide social benefit like
proper array of wastage and not to defile the area.
Technological: Technology also affects our company as now we are using latest
type of ovens that have more capacity and consume less gas and time to bake the
bread and bake the pizza so if a more latest technology is used by our upcoming
competitor than it would have a negative effect on our cost and sale.
Strength and weakness of our main competitor (Fri-chicks)
STRENGTH:
Good will.
A major hold at Iqbal town area.
Satisfied customer.
Economical price
More than 18 deals
Successfully create awareness among people mind about their product.
Free home delivery
More than 15 branches
WEAKNESS:
Management is not efficient
Deliveries are not on time
Waiter is not serve the food
Not introduce new deals the period is long

Strength and weakness of our other competitor

(McDonalds)
Strength

Multinational company
Have massive resources
Satisfied customers
Strong goodwill

 Strong network in Lahore

Weakness
Focus on elite class mostly
Not have too many deals
Not offer pizza

SWOT analysis of our business

STRENGTH

Quick Service Restaurant (QSR)

Low price
Efficient friendly service
More than 30 deals
Special offers mid night
Successfully create awareness among people
about their product.
Weakness

Strong competitors in area

not much resources as others have
risk factor
start from scratch need aggressive marketing

Opportunities

Only few competitors in markets at present

Can attract middle class and upper too
Expanding into new geographic markets.
Expanding the product line and can also go for diversity
New brand can attract new and fresh customer

mind

 Threats
Inflation and load shedding crises.
New competitors
Strikes and other uncertainty
Government policies and taxes
Political and social ups and down

Product Life Cycle (PLC)

The product life cycle method identifies the four (five) distinct stages affecting sales
of a product, from the product's inception until its retirement. When we discuss
product life cycle we may discuss it at general business level and our own personal
business level. Our product life cycle is on the stage of introduction.

Stages (Startup, Growth, Maturity &

Decline)

Boston consulting group

BCG matrix is a framework created by Boston Consulting Group to evaluate the

strategic position of the business brand portfolio and its potential. It classifies
business portfolio into four categories based on industry attractiveness (growth rate

of that industry) and competitive position (relative market share). These two
dimensions reveal likely profitability of the business portfolio in terms of cash
needed to support

that unit

and cash generated

by it.

The general
purpose of the

analysis

is to help understand,

which

brands the firm

should

invest in and which

ones should be

divested.

There are four

quadrants

into which firms brands are classified:

Stars (high share and high growth) 1

Cash Cows (high share, low growth) 2
Dogs (low share, low growth) 3
Question mark (high growth, low share) 4

We have no idea about our position in concerning with BCG model because we did
not introduce our product in market but we can predict that by looking current
conditions of market we can say our product fall in question mark stage at where
share is low but growth is more and have its peak because our product price is low
hence, it will move towards growth in plc model. And consequently it will fall in
that stage of BCG where growth will be high and share will be not maxim because it
will note easy task of a business to collect maxim market share in its start.

Ansoff model

 Every

business

owner wants

their

business but

it is often difficult

to determine

to grow
the

best

way

forward. Here is a
straightforward

description

of

different

growth

and

explanation

four

strategies

an

of how to determine

which

best

business.

for

your

is

Ansoff suggested that business owners ability to grow their businesses comes down
to how they market new or existing products in new or existing markets. He outlines
four distinct strategies:
Market Penetration 1:- selling more of the same things to more of the same
customers
Product Development 2:- selling new products or services to the same customers
Market Development 3:- selling more of the same things to different customers
Diversification 4:- selling new products or services to different customers

Our business prime objective is to move towards growth by all means so by using
Ansoff growth strategy we will expand our business.
First of all we will select market penetration side in which we will decrease the
prices of our product by doing that we will collect a good sale further on, by and by
we will move towards product & market development e.g. like we will move to
introduce new and innovative products and then move towards other province of
Pakistan finally we will plan for diversity.
So our product at present falls at market penetration strategy.

How to attract customers

There will be several strategy to attract customer that are as follow:-

Through marketing penetration strategy

Low prices deal
By providing good services
Taking feedback from customers through a form
Push and pull strategy
Through different packages and offers
On time free delivery
Online order and take away

CAPITAL BUDGETING
Initial investment

Installed cost of new asset

100, 000, 00

Cost of new asset =100, 000, 00

Installation cost= 0

After tax processed from sale of old asset =

0
Processed from old asset= 0

Tax on sale of old sale =0

Changing networking capital =

0
INITIAL INVESTMENT

100, 000, 00

Operating cash flow

Wit
h
new
mac
hin
e

Reve
nue

21

expe
nse
(excl
udin
g
depr
eciat
ion)

14

 Earn
ings
befo
re
depr
eciat
ion ,
inter
est,
taxe
s(EB
DIT)
Depr
eciat
ion

2,

2,

Earn
ings
befo
re
inter
est
and
taxe
s(EB
IT)

Taxe
s

68

70

81

 Net
oper
atin
g
profi
t
after
taxe
s
(NOP
AT)
+
Depr
eciat
ion

59

25

Oper
atin
g
cash
flow

62

Net present value

Initial investment = 100, 000,00

29076792

38246245

49276411

62494924

78283419

Pv=fv/(1+i)n

I = 12%

1st
yea
r

2nd
yea
r

Pv=f
v/
(1+i
)n

Pv=f
v/
(1+i)
n

Pv=
290
767
92

(1+

Pv=
382
462
45.9
2

0.12
)1=
259
614
21.4
3

(1+0
.12)
2=3
059
699
6.74

Sum of All discounted cash flow

176040755.3
Formula: sum of all discounted cash flows initial
investment
176040755-10000000= 156040755

 Hence, the difference is in positive sign which reveals that this project or business is
acceptable and has profit

Payback period
Payback period of following business is 3 years because our initial amount will be recovered
within 3 years of this project as

Initial
investment

Year1 recovery

Year2 recovery

10000000
29076792
38246245
49276411

Year three recovery

116599448

Total (in three years)

Hence, the following business is acceptable because its recovery is within three years if the
criteria is set for three years so, then it is acceptable and feasible.

Profitability ratio

Formula: Sum of All discounted cash flow

initial investment

= 176040755.3 100,000,000

= 1.76

Hence, the profitability index of following business is above one which reveals that
this is acceptable and profitable so it will be accepted.

Findings
Our findings are that the following business is profitable and we can go for this
business plan because its profitable and we will recover our initial investment
within three years. By and large, its acceptable thats it

 References
http://www.businessdirectory.pk/
www.doingbusiness.org
www.lahoreindustry.com
www.pakreviews.com/list-top-quality-restaurants-pakistan
www.mytopbusinessideas.com/pakistan/
www.pakistan33.com/2012/11/top-5-businesses-to-startin-pakistan.html
en.wikipedia.org/wiki/List_of_companies_of_Pakistan
www.chowrangi.pk/how-to-run-a-restaurantsuccessfully.html
www.smeda.org/
www.mizlink-pakistan.com/Business-Plan.html
www.imagine-network.org/country.../pk/business-planningstarting-up
ypages.pk/detail/fri-chicks/lahore/pakistan/362.html
www.mcdonalds.com.pk/
www.bundukhan.pk


Conclusion

In last I would like to

say that if we

want to start a business

of restaurant

in the area like iqbal

town its not

a bad idea. It will give

us

profit as the restaurant

and

departmental

trend

store

much
in

iqbal town is at peak. By good marketing strategy, proper check and

balance, good administration, inexpensive rates of deals and efficient
services we can compete in the market of iqbal town and shake the
market. As the following business plan is feasible and profitable we can
apply it in real time and can avail the opportunity.