Business Law........ SUMMARY ON CHAPTER- ONE PRELIMINARY

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New business Plan On My Business Name: Mou Chak Vegetarian fast food

HAMDARD UNIVERSITY BANGLADESH

New business Plan

On

My Business Name: Mou Chak Vegetarian fast food

Owner Name: Shafin Ahmed Bapparaj

Location: mograpara, Sonargaon

Course Name: Entrepreneurship Development

Course Code: MKT-602

Submitted To

Marzan Rahman

Lecturer,

Dept. of  Marketing

Hamdard University Bangladesh

Submitted By

Shafin Ahmed Bapparaj

2^nd Batch

ID: 642131011

Program: BBA

Hamdard University Bangladesh

Date of Submission:  09-12-2014

Submission Letter:

To

 Marzan Rahman

 Lecturer

 Department of Marketing

Hamdard University Bangladesh

New town, Sonargaon, Narayangonj

Sub: Submission a report on “NEW BUSINESS PLAN”.

Dear Madam,

With great pleasure I am submitting my report on ―NEW BUSINESS PLAN. I have found this study of the report to be quite interesting, beneficial and insightful. I have tried my level best to prepare an effective & creditable report. I had been trying hard very much to make a glorious report.

I therefore pray and hope that you would be mercy enough to consider me about this subject. 

Yours

Shafin Ahmed Bapparaj

2^nd Batch

ID: 642131011

Program: BBA

Hamdard University Bangladesh

Table of Contents:

Class	Headline	Page Number
01	Executive Summary	4
02	Company  Description	5-7
03	Industry Analysis	8
04	Market Analysis	9-11
05	Market plan	12-14
06	Management Team	15
07	Operations Plan	15
08	Financial Projections	16-18
09	Appendix	19

1. Executive Summary:

MOU CHAK is a Vegetarian fast food outlet that provides customers from all walks of life with healthy vegetarian-styled fast food. I draw it’s based on three concepts: changing

Unhealthy fast food culture to a healthy one, changing monotonous vegetarian culture to a tasty one, and delivering health and taste combined food at a reasonable price conveniently.

In today’s highly competitive environment, it is vital to differentiate myself from other fast food chains. I will be the only vegetarian fast food shop in the market that provides customers with a wide range of food choices through self-mixed ingredients burgers and meals. Apart from the variety in food, I offer convenient service to encourage regular meal by locating in Mograpara stations and launching application for smartphones. I emphasize on raising awareness of healthy eating habit and spreading the message through a profitable and sustainable business.

Selling price will be set at a relatively low margin. I will confine our operating expenses at a reasonable range by employing adequate but not excessive staff, maximizing word-of-mouth

Marketing and utilizing free advertising. Through membership system and prepaid reloadable cards for direct order on application for smartphones, we will be able to retain existing customers. This is important for our development in the long run.

2. Company description:

Vision:

Our vision is to change the general view on fast food to a healthy one while at the same time

Change public impression towards monotonous vegetarian food to a tasty one.

Mission:

Mou Chak missions are to:

_ Bring healthy vegetarian-styled fast food to customers conveniently.

_ Operate and grow at a promising rate.

_ Serve high quality food at a great value.

Objectives:

My  objectives are to:

_ Provide an income for owners with growth possibilities.

_ Gross margin of 50% or more.

_ Net profit above 15% of sales.

Company Summary:

Mou Chak holds the concept of changing the general view on fast food to a healthy one as well

changing public impression towards vegetarian food to a tasty one by introducing healthy

vegetarian-styled fast food conveniently to customers. We sell vegetarian burgers and other

vegetarian fast food by replacing the meat ingredients with organic vegetables, and replacing the unhealthy fast food with healthier ones to make fast food refreshing. Customers are able to choose their own mix of ingredients to create their own burgers so as to enjoy fresh feeling towards our food. We also provide friendly customer service to support the ambiance of youthful lifestyle.

Company Ownership:

The fast food business owner  associated products. Shafin Ahmed BApparaj

will hold the ownership this business. It will be set up as a sole proprietorship.

Product and service:

Not only vegetarian burgers are provided, but also snacks and juice of a number of choices to

Complement. I choose fresh and healthy organic vegetarian ingredients for customers to choose from and a vital point to be noted is that customers are allowed to mix their own choices of ingredients, thus increasing the combination of products to offer customers novelty.

                                             Menu

A. Burger (with egg or milk unless specified) B. Vegetable

1. Mushroom

1.       Chicken                                                           2. Onion 

2.      Bacon                                                               3. Egg 

3.      Cod-fish                                                            4.cheese                                                            

4.      Beef

5.      Chicken filet

6.      Flacon

7.      Seafood

8.      Codfish

C. snacks                                              D. Sauce

1. Sweet corns                                         1. Tomato sauce              

2. Fruit salad                                            2. Vegetable sauce

3. Caser salad                                           3. Pepper sauce

5. Skewered mushroom

E. Drink

1. Tomato juice      2. Apple juice

  3. Orange juice    4. Watermelon juice

  5. Lime juice

Service:

Provide service of everyday low cost hiring professional employee . our service better than other fast food restaurant.

Legality:

 My business is copyright is registered and licensee collect from district administration because it located out of city. No other formalities because it is sole-proprietorship business. So I have no partner .

Start-up Summary:

Start-up Requirements (BDT)

Start-up Expenses

Legal                                                                                                     56560

Rent                                                                                                    160000

Total start-up expenses                                                                   216560

Start-up Assets

Non-current assets

Furniture and fixtures                                                                     104800

Current assets

Cash Required                                                                                 478640

Total assets                                                                                     583440

Total Requirements                                                                      800000

3. Industry Analysis:

In Mograpara, food spending made up of about 30% of total consumption expenditure kolapata the fast food industry tycoon in Mograpara, increases its sales outlets from 216 in 2002to 232 in 2012. The fast food industry in kolapatha succeeds in maintaining wide appeal amongst youngsters, and constant launching of groundbreaking products. Despite the intense rivalry in the market, Mou Chak stands out by the idea of “vegetarian”, which provides with us opportunities to survive and grow substantially.

3.1 Industry Analysis Summary:

Ø  Mou Chak target customers are

Ø  Teenagers, the main circle for fast food customers, especially for those pursuing

Ground breaking new products.

Ø  Families looking for take-out food, particularly for families with young children to strike Balance between children’s desire for fast food and their health.

4. Market Analysis:

4.1 Market Segmentation:

I consider teenagers our core market as most of them are more appeal to fast food. my outlet

Location, chorasta is a popular hangout location among teenagers. It is common for them to look for special products as teenagers are more open to try out new tastes and new products. Another market segment is the “Students and Office workers”. Under the booming of the development of shopping malls in chorasta, many businesses are established there, creating over15, 000 office workers. Furthermore, there are 13 schools and college in mograpara, providing us loads of potential customers.

Lastly, Mograpara is a populated district with over 23,000 family units6. Most families are of low

Income group and they may look for value-priced food at around 120. I trust this also applies to

family units shopping in Mograpara or being there for other purposes.

4.2 Market Analysis:

Sales		Year1	Year2	Year3	Year4	Year5
Potential Customers	Growth						CAGR
Teenagers b	2%	147840	150800	153816	156888	160024	1.60%
Students and office workers	1%	72960	73688	74424	75168	75920	0.80%
Family units	1%	110400	111504	112616	114224	114880	0.80%
Total		331200	335992	340856	35800	350824

                                                          .

4.3 Target Market Selection:

Mou CHAK caters for the needs of teenagers that they mostly look for value-priced food due to their limited source of income. Teenagers are also important in our brand building that we need a youthful style and image. We utilize much information technology in marketing, such as Facebook, Open price and application, which are easily accessible for teenagers.

For students and office workers, they will buy from us much during breakfast and lunch hours and one crucial point to note is that our opening hours is as early as 6 a.m.

Family units also pursue convenience. Flyers need to be sent to the parents specifying our healthy ideas.

4.4 Buyer behavior:

In mograpara people want to deferent item fast food so I think buyer concept is good for this business .and people want to low price fast food.

4.5 Comparison with Competitors:

The main competitions we face are from large fast food shops, including Kolapatha, sonargone in , and many others. Mou Chak is selling its special vegetarian burger at the price range of around taka 30 -35 per burger. This low price strategy has already helped us stand out above our vast competitors. Furthermore, our products are of high nutritional values, with taste, appearance and price more appealing to those sold by our competitors. 

                                                                                                                                                                                                               

Kolapatha		Sonargone in		Mou Chak
	CAL		CAL		CAL
Beef	497	Chicken	700	Beef  + cheese +onion	297
Chicken	460	Moglae	200	Chicken +onion+ peeper sauce	185
Noodles	362	Burger	500	Codfish + mushroom + tomato sauce	230
Mushroom	361	meal	800	Chop + vegetable sauce + onion	289
				Mushroom +lettuce + onion + vegetable sauce	317

4.6 Marketing Strategy:

In the first year, Mou Chak promotion strategies tend to be less costly and are divided into in-store promotion and local promotion. I believe that word-of-mouth advertising and local promotions are better ways to bring customers to our locations11.The first year’s in-store promotions are mostly

Ø  Wall posters,

Ø  Brochures with company introduction, comprehensive menu and nutrition values, and

Ø  QR codes for downloading my application for Smartphone’s; while local promotions includes

Ø  Delivering flyers with coupons outside the MTR stations

n  There will be other special promotions as follows.

Ø  Media promotion: Contact different local media like newspapers, magazines

Ø  Online and free advertising: We will utilize Face book, Twitter, and other social Networking sites by creating accounts and updating information or interacting with                                                      customers through promotion activities.

Ø   Food websites: We will update our information on food websites like the and online forums, and encourage customers to give us comment and vote for us. We can receive customers’ opinions to improve our service and products too.

Ø  Talks in schools: Mou Chak will invite dieticians to give talks on vegetarian diets and healthy eating in schools, which helps spread our business idea and makes Mou Chak accessible for more teen customers..

In the second year, Mou Chak will increase the budget on advertising and will extend the promotion strategies to local media by print media advertising. Eat Travel Weekly and Weekend Weekly is choices for advertisement. We will continue our local promotions to expand the sources of customers.

5. Marketing plan:

5.1 Market Needs:

My market segments are compound of customers with different desires, including value-priced and healthy foodstuff, variety and innovation in products, convenience, as well as a hip, yet comfortable environment. However, we focus on takeaway instead of dine in with spacious environment in the first phase of business.

5.2 Market Trends:

It is observable that one of the recent trends in eating is the awareness of healthy food, as shown from the ‘EatSmart@restaurant.bd’ Campaign held by the government and the rise in the popularity of organic food. Therefore, our healthy foodstuff is one of our keys to success to take advantage of the market trend.

5.3 Sales Literature:

My main sales literature consists of flyers with coupons distributed around. They contain

information including company background, comprehensive menu and nutritional values. Moreover we will update our information on food websites like the high smart.

5.4 Positioning Statement:

Mou Chak is the only fast food shop in the market that delivers health and taste combined food for all groups of people at a reasonable price but without delay.

5.5 Pricing Strategy:

As reflected from our market research, most people expect our burgers to be priced at around

Bed  20  and this is the price that they are willing to pay for a value-priced products like Mou Chak.

5.5 Sales Strategy:

The sales strategy aims at converting potential customers and first-time customers into long-term customers to support the sustainable development of Mou Chak. The tactics include membership

Sales forecast:  

Sales Forecast (BDT):

Sales               Year 1                                Year 2                                   Year 3

                    

Lunch packs           1000000                              1300000                             1500000

Burger                     1200000                              1500000                              1700000

Mushroom            100000                                300000                                  600000

Total sales                  2300000                            3100000                                3800000

Direct Cost of Sales            Year 1               Year 2                                   Year 3

Lunch packs                     500000                 800000                                 700000

Burger                              600000                 1000000                               900000

Mushroom                        60000                   150000                                 200000

Subtotal direct cost of sales 1160000          1950000                               1700000

6. Management Team:

Initially, the management team depends on the 6 co-founders. I all will be monitoring the business activities and some will specify in a particular area. Current plan is to have My accounting functions done by Kholilur Rahman, marketing planning by Shakil Ahmed , information technology support directed by Ripel Anaholy and human resources handled by Jahid Hasan.

6.1 Organizational Chart:

7.Operational plan:

Company Location and Facilities

The first retail outlet of Mou Chak will be located inside Mograpara station in size from 20-30 meter square. I believe this choice of location can echo with Mou Chak objective of bringing healthy food to customers conveniently. The location includes an 8 person capacity eating area with 2 tables, and a counter area where food warmers, beverage dispensers and cashiers are located.

8. Financial Plan:

8.1 Start-up Funding:

Mou Chak  will apply for the funding from Youth Business in  Narayongonj , sonargone at Mograpara which will provide us with a start-up funding of 800000 . I collect this fund two ways such as -

1.      own

2.      bank

8.2 Projected of profit and loss:

Pro forma Profit and loss

Year 1                         year2                                year3

Sales                                                               108288960                24144376                            30180472

Loss Cost  of sales                                        3140032                   7225344                                 1477576

Gross profit                                                   105148928                16919032                          28702851

Less expenses :

Salaries                                                               4112640              10551400                    13162864

Legal                                                                         56560                   56560                           -------  -

Marketing                                                          120000                 200000                     200000

Utilities                                                             480000                 960000                             960000

Rent                                                                   1920000                 4108800                         4396416

Total Operating Expenses                                6689200             15876760                   187192800

Profit before tax                                              459728                   1042272                      27836656

Less Taxation                                                  68960                 156344                             417544

Net Profit                                                       390768                  885928                          2366072

8.3 Projection of Cash flow:

Pro forma cash flow

Year 1                         year2                                year3

Balance                                                             478640                    1583992                       2969096

Cash sales                                                         9844960                 23078776                     28848472

Add Account Receivable                                -----                         444000                          1065600

10323600                25106752                    32883168

Less expenses :

Cash purchase                                                 21980240               5057744                       5206544

Other expenses                                               6541600                 17079912                     21304472

Subtotal cash expenditure                           8739624                 22137656                     26510968

Net cash flow                                                  11053360               138720                         21016088

Cash flow                                                         1583976                 2969096                       6372200

8.4 Projected Balance Sheet:

Pro forma balance sheet

Year 1                         year2                                year3

None current assets

Furniture and fixtures                  104800                   209600                      2096900

Current assets

Account receivable                      444000                   1065600                    1332000

Cash                                                1583976                2969096                    6372200

Current liabilities

Account payable                          942008                  2167600                     3471032

1190768                 2076696                     4442768

Financed by :

Capital                                         800000                    1190768                     2076696

Add net profit of the year       390768                    885928                       2366072

1190768                  2076696                   4442768

9. Appendix:

Market Research Summary:

The market research of vegetarian hamburgers was conducted in March of 2014. Questionnaires were distributed through Facebook, and 105 of them were collected and they were valid. The questionnaire consists of 17 questions in three aspects: personal data, market research on “Vegetarian Burgers” and services and promotion.

To conclude, most of the teenagers (about between 12 and 20) are interested in vegetarian hamburger products of our firm and they are our target customers. In addition, the characteristic of our products are healthy and tasty, the choose-your-own-ingredients option of Mou Chak can attract more customers. For the price, it should be set around tk20-tk 22. Apart from the products, outlets should be set up in Mograpara stations, taking into account whether the shop is large enough for dine-in and the cost of providing delivery service. Besides, creating an app can attract customers and bring convenience. This is the promotional highlight that mou Chak should consider emphasizing on. However, my firm should explore whether it is necessary to promote in other apps and in Facebook. Factors such as the most should be considered.