Business Plan.

Food Commy
not coming you

To provide the highest-quality vegetable when you ordering with attractive service.

Tell 071-4602436.

[email protected]

2nd Year
 2nd Semester

Individual Assignment

BSM 201
Entrepreneurship

Assignment: Business Proposal

Name: D.K.R.T.Nanayakkara

Reg No: MG/16/092

Lecturer: Prof. Milton Rajaratne.

Table of Contents.
1
01. Executive Summary.
02. Business Description Segment.
2.1 Name of the business
2.2 Industry Overview
2.3 Unique Features
2.4 Vision and Mission Statement
2.5 Business Objective
2.6 Key to Success.
2.7 Standards.
03. Marketing Segment.
3.1 Products. (4ps)
3.1.1 Future Products
3.2 Market Analysis
3.3 Competitors
3.3.1 Why we are better than competitors.
3.3.2 What competitors do not provide.
3.4 Focusing market areas
3.5 Our Pricing Strategy. (4ps)
3.6 Promotion Strategy. (4ps)
3.7 Advertising Strategy
3.8 Target Market.
3.9 Swot Analysis
04. Operations Segment.
4.1 Operation Process.
4.2 Equipment.
4.3 Packaging Process.
4.4 Pre storage treatment.
4.5 Location Facilities.
4.6 Transportation
4.7 Benefits of our service.
05. Management Segment.
5.1 Management Team
5.2 Administrative Structure.
5.3 Responsibilities.
06. Financial Segment.
6.1 Estimated Statement.
6.2 Payment methods.
07. Critical- Risk Segment.
08. Milestone schedule Segment.
09. References.
01. Executive Summary.
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Food Commy is a small new business that distributes vegetable packages to householders from ordering
online and to supermarkets.  We have done our detailed market research and feasibility studies and we
were able to secure a government approved facility to open our food packaging plant.

Our food packaging plant is going to be a standard commercial company hence will make use of
packaging materials that provide protection, tampering resistance, and special physical, chemical, or
biological needs. Our mission is to supply ready to eat vegetables with high quality that bring
convenience and health to our customers.

We are starting our food packaging business because we want to leverage on the vast opportunities
available in the food processing and packaging industry in Sri Lanka. Our main customers are housewives
who like to prepare food for their family and have no time to go to local markets and spend a long time
to get the vegetables ready to use. Our products will save their time and provide them with healthy and
nutrient ingredients for their food. We want to reach the target customers by supplying our products to
supermarkets and grocery stores in the town center where is easy for them to access. We also aim to
add more vegetables to our products in the future to give more options to the customers. We are also
considering to ready to eat fruit packs in small size for students and supply them to schools. This
business is unique in the area. Packaging ready to eat vegetables in vacuum packages is another
advantage. Because it makes vegetable last fresh for longer time and it can reduce the risk of having
spoiled vegetables in a short time.

The location of our company is near to Kandy town. It is the most valuable one to develop our business,
because there are so many people come to town and there are so many householders. They have to get
vegetables in supermarkets. And others are ordering online. If we have more customers in our area, it
should be a good advantage to become market leader. The management team consists of some
experienced individuals who have good contacts with expert advisors and professional businessman's
that can help them whenever they need.

These products will be marketed by our website and social applications. We also aim to participate in
some cooking shows and food exhibitions. Moreover, we want to increase our marketing expenses
during low seasons. Also, because people tend to make the decision about buying such products at the
store, we aim to catch their eyes at the place by creating appealing packages.

Our customer’s best interest will always come first, and everything we do will be guided by our values
and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by
meeting our client’s needs precisely and completely.

Food Commy is a private registered food packaging company that is owned by Mr. Randika Nnayakkara
Our management team has a great background in management and marketing with good experience in
working with vegetables.

To start and run this business we need 300,000 loans from a bank. In order to cover our initial expenses.
For this business, we can invest 100,000 from our personal investment. We believe Food Commy will
become a leading company in the area and will bring high quality fresh vegetables to our customers.

3
Providing details about each type of vegetable we sell help to people understand the quality and value
of the product. So they feel confident buying. For instance, small cards that describe the taste of the
different varieties vegetables or tell the story how our company can be efficient. Also, we mention n
where the product comes from, such as the name of a local farm, to help the consumer to understand
the quality and value of our products.

I want to get the best results from employees and maximize their performance, So I should motivate
them with different ways .Therefore, the company consider reward system and some motivation ways
for the employers. Example, smaller weekly goals, being transparent, showing them the bigger picture
and future goal of the company, etc. to develop my business I have to do these things also.

The most important issue for the company is that we should consider moving and selling these
perishable items (vegetables) as fast as possible and before they spoil. In this case, it is a good idea to
display the products efficiently. For example, making sure that they are at eye level and easily visible.
Also, they can set up a vegetable stand in a popular place where many potential customers are located.

We will cultivate a working environment that provides a human, sustainable approach to earning a living
and living in our world for our partners, employees and for our customers

02. Company Summary.

2.1 Business Name: Food Commy.

Location: Kandy Town behind the Kandy City Center.

4
Food Commy is a small and middleman business which buys vegetables from the wholesale Market, get
them ready to eat and then distribute them to Super markets and people who ordering vegetables from
online. Our company is based Kandy which is quite a big city in Sri Lanka. In this area, there is a lack of
prepared vegetables for households and they have to spend a long process to get them ready. Our
company is here to provide them with fresh and easy to use vegetables with the highest quality.

 2.2 Industry Overview

Food packaging business is a subset of the global food, fruit and vegetable processing industry and this
industry is made up of companies that are engaged in the processing and packaging of food, fresh fruit
and vegetables into canned, bottled, preserved, frozen, dried for human consumption. Players in this
industry also blend salt, sugar, preservatives and other ingredients with food, fruits and vegetables to
make consumer food products.

Production and packaging of processed food, fruits and vegetables occurs in all regions of the globe. In
particular, low-tech food, fruit and vegetable processors, such as fruit driers, exist in almost every
country in the world.

However, high-tech, large-scale fruit and vegetable processing operations are concentrated primarily in
Europe and Asia. These continents dominate the Global Food, Fruit and Vegetables Processing industry
due to the fact that industry operations have been established in these areas for a very long time.

The Global Food, Fruit and Vegetables Processing industry is indeed a very large industry and pretty
much thriving in all parts of the world. Statistics has it that in the world, there are about 32,123 licensed
and registered food, fruit and vegetable processing and packaging companies directly responsible for
employing about 507,446 employees. The industry rakes in $290 billion annually with an annual growth
rate projected at -0.1 percent. It is important to state that Kraft Heinz is the establishment with a lion
share of the industry.

2.3 Unique Features.

We will ensure that we hire people that are qualified, hardworking, and creative, result driven, customer
centric and are ready to work to help us build a prosperous business that will benefit all the stake
holders.

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Packaging is easy to use, good looking and, perhaps most importantly, it has to make clear what’s inside.
Increasingly, consumers are concerned with environmental issues of packaging, so making use
of biodegradable materials is always a plus, too.

2.4 Our Vision Statement.

 To become a household brand and to have our products in groceries stores, and supermarkets

Our Mission Statement.

 To provide the highest-quality vegetable and become a market leader.

2.5 Objectives:
 To develop a sustainable start-up business that is profitable.
 Having strong sales in the city's major supermarkets
 Maintain stable prices and operation during expansion.
 Provide our customers with the freshest, organically grown vegetables
 Repay family investment.

2.6 Keys to success:

Quality and locality: Our veggies come from local farms in the city and we only pack vegetables with the
highest quality

Packaging: Our vegetables will pack with vacuum packages which make them stay fresh for about 5
times longer than usual.

Convenience: We are washed, cut, rinsed and ready to use vegetables which bring comfort and
convenience to our customers.

2.7 Standards.
 ISO 22000-INTERNATIONAL STANDARD FOR FOOD & SAFET
 ISO 9000

03. Market segmentation

3.1. Products

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Kandy has a fertile soil which is suitable to grow different vegetables and fruits. There are many farms
near the city that bring their fresh crops to a wholesale local market every morning. The vegetables of
our products will be provided from this wholesale market which fresh vegetable with low prices. Our
company is located near the market; therefore, we have access to them at any time. Our products will
be packed in vacuum sealed bags; therefore they will last fresh for maximum of 25 days.

Carrot:

This product is made from washed, unpeeled, bite-sized in different shapes include shredded, diced and
sliced carrots. Carrot has many different usages, it can be used in seasonal salad, some special cuisines,
carrot jam and simply be consumed as a snack.

Celery:

Ready celery eliminates trimming, washing, drying and cubing before using.

Sweet corn:

In Kandy sweet corn can be bought only from a local market. This market is quite far from the town
Centre and it supplies unpeeled corns. Although, sweet corn has many uses in different foods and
salads. It's a long process to buy them and get them ready to cook.

3.1.1 Future Products.

In the future, we are going to add more vegetables to our products such as chopped onion, green beans,
etc. In the meantime, the company would like to explore the possibilities of new products for a new
market. The future product will be fruits and vegetable packages for students at Schools. Most of the
parents do not have enough time to prepare some snacks for their children therefore; students have to
buy something from their schools. Most of the refreshment stalls in schools provide students with a
number of unhealthy foods including potato chips, popcorns, sweets, biscuits, ice cream, etc. Thus, it
can be a great opportunity to supply a new healthy snack for students during their breaks at school.

Our future product is fruit salad pack in small size to supply in schools for students. This package
includes a different variety of chopped and ready to eat fruits. This product with a combination of
colorful fruits and an attractive package can be appealing for students in all ages.

3.2 Market analysis summary

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 There are a high number of educated people; they tend to pay more attention to what they eat and
therefore consumption of healthy food like vegetables. In Addition use more and more people have a
hectic lifestyle they like to buy foods with the minimum time of preparation.

Therefore, this is a great opportunity to prepared vegetable packages to them so they are able to make
homemade food with ready to use vegetables and spending less time. Also they order can quickly fulfill
by our company.

If you are conversant with the food industry, you will notice that most packaging and labels can be used
by marketers to encourage potential buyers to purchase the product. Aesthetically pleasing and eye-
appealing food presentations can encourage people to consider the contents.

Although, Barcodes have been used for decades in packaging many products, but in recent time, 2D
barcodes used in Auto coding are increasingly applied to food packaging to ensure products are
correctly packaged and dated. No doubt, package design has been an important and constantly evolving
phenomenon for several decades.

 3.3 Competitors.
In Kandy, most of fruits and vegetables can be found only in fruit shops or local markets. Most of the
farmers who sell their products in these markets do not have a brand for their goods and cannot present
their products in a proper way. Also, the vegetables in such places are dirty and need a long process to
get prepared for consumption.

Competitor ex:

Carlton Packaging (Pvt) Ltd

Wijaya Products (Pvt) Ltd

3.3.1 Why we are better than competitors.

Our access to high quality inputs, attractive product presentation, economies of scale and of course the
vast experience of our management team. So also, we have healthy relationships with loads of major
packaged food, fruits and vegetables merchants in the industry

We have some of the latest food packaging machines and equipment that will help us maintain food
safety during processing, packaging, storage, logistics sale, and use.

8
 our employees will be well taken care of, and their welfare package will be among the best within our
category in the industry, meaning that they will be more than willing to build the business with us and
help deliver our set goals and achieve all our aims and objectives. We will also give good working
conditions and commissions to freelance sales agents that we will recruit from time to time. I think
that’s why our company is the best.

3.3.2 What competitors do not provide?

 Some competitors are not provides delivery facilities.
 Competitors are not provides healthy foods at lower prices.
 Most of them do not provide home taste foods and fresh vegetables.

3.4 Focusing Areas.

 The product will have a wide variety of customers, from restaurants and hotels to Households
and students.

Housewives.

Women in Kandy have the key responsibility to cook traditional cuisine at home and they need to buy
all the necessary ingredients for cooking. These days, the number of women working outside has
increased significantly. Therefore, the main customers of our product can be housewives who have no
time to wash and cut vegetables to make food and also do not want to move around for purchasing
fruits and vegetable. They can get from online ordering.

Supermarkets

There are many local supermarkets in the city where we can supply our product.

Ex: Cargill’s Food City Keels Super, Arpico.

We have negotiated with the manager of this shop and they will agree to sell our product. It is likely
that some restaurants buy from these supermarkets when they need a few amounts of vegetables.

We are well positioned to take on the available market in Kandy that we will meet our set target of
generating enough income/profits from the first six months of operation and grow the business and our
clientele base.

We have been able to examine the global food packaging industry, we have analyzed our chances in the
industry and we have been able to come up with the following sales forecast.

9
This is based on the location of our business and other factors as it relates to small and medium scale
food, fruits and vegetable processing and packaging start-ups

First Fiscal Year 350,000/=

Second Fiscal Year 650,000/=

Third Fiscal Year 1 Million

This projection was done based on what is obtainable in the industry and with the assumption that there
won’t be any major economic meltdown and there won’t be any major competitor offering same
products and customer care services as we do within same location. Please note that the above
projection might be lower and at the same time it might be higher.

 3.5 Our Pricing Strategy.

Pricing of a product depends on a lot of different variables and hence it is constantly updated. Major
consideration in pricing is the costing of the product, the advertising and marketing expenses, any price
fluctuations in the market, distribution costs etc. Many of these factors can change separately.

 However, if all these variables change, then the pricing of a product has to beincreased and decreased

accordingly. Along with the above factors, there are also other things which have to be taken in
consideration when deciding on a pricing strategy. Competition can bathe best example. Similarly,
pricing also affects the targeting and positioning of a product.

We are aware of the pricing trend in the vegetable processing and packaging industry which is why we
have decided to produce various sizes of packaged food vegetables.

We know that pricing is one of the most important issues. So we have to keep in mind that we should
run the business in such a way that in the long run. We will overcome our investment and make profit.
The overall goal of a business is to make profit. In view of that, our prices will conform to what is
obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a
little bit below the average. We have put in place business strategies that will help us run on low profits
for a period of 6 months; it is a way of encouraging people to buy into our brand. So we can ensure that
the price of foods will be very much affordable.

Carrot 1kg 390/=

Garlic 1kg 510/=

Pumpkin 1kg 250/=

Dambala 1kg 240/=

Beans 1kg 260/=

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  3.6 Promotion Strategy.
 The right kind of promotions affects all the other three variables the product, price and place. If
the promotions are effective, you might have to increase distribution points, you might get to increase
the price because of the rising brand equity of the product, and the profitability might support you in
launching even more products. However, the budget required for extensive promotions is also high. A
promotion is considered as marketing expenses and the same needs to be taken in consideration
while deciding the costing of the product. In the case of our food packing. we will have a separate
budget for promotional activities. We will decorate our Packing Covers in such a way which will attract
the customers. We will also promote our product through various types of social media. Moreover, we
believe in word of mouth advertising. Here the satisfied food lovers will tell about our products and
service to others. We will also poster advertising campaign which will definitely help to promote our
product.

3.7 Advertising Strategy

We will adopt the following strategies in marketing our processed and packaged food;

 Introduce our business by sending introductory letters alongside our brochure to stake holders
in the food, fruits and vegetable processing and packaging industry, households, groceries stores
and supermarkets et al.

 Advertise our products in food related magazines and websites

 List our business in yellow page ads.

 Attend related food and fruits processing and packing expos, seminars, and business fairs et al

 Open our company with a party so as to capture the attention of residence who are our first
targets

 Engage in roadshow in targeted communities from time to time to sell our products

 Leverage on the internet to promote our business

 Engage in direct marketing

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  3.8 Target Market Segment Strategy.
Housewives,

These customers will be buying our products from the different supermarkets located in Kandy. We will
be able to deliver goods at the customer’s home by online ordering through our website. Delivery will be
free of charge for repetitive customers.

Restaurants.

We are ready will target customers by introducing our products to the restaurants through meetings
and negotiations with the managers at each restaurant. There are about 30 different restaurants near
our company that use carrots in their salad and we are likely to have a long-term contract with them.

3.9 Swat Analysis food Commy Company,

We have to face lots of difficulties and so we want lots of Strengths and opportunities.

 Strength:

Our strength as a food packaging company is the fact that we have healthy relationships with loads of
major players in the industry. We have some of the latest food processing and packaging equipment,
and machines. Aside from our relationship and equipment, we can confidently boast that we have some
the most experienced hands in the industry. Professional management and marketing team.
Convenience and easy to consume products

 Weakness:

Our weakness could be that we are a new food packaging company in Kandy District., and it might take
us sometime to attract big time customers in the industry. We are aware of this and from our projection;
we will overcome this weakness with time and turn it to a major advantage for the business.

 Opportunities:

Our opportunities that are available to us as a standard food packaging company cannot be quantified;
we know that there are loads of consumers of packaged food all across Sri Lanka, and the global market.
Besides, North America is the largest market for processed and packaged food, fruit and vegetable
products. We are well positioned to take advantage of this opportunity.

 Threats:

Reduced sustainable packaging is becoming more frequent. The motivation can be government
regulations, consumer pressure, retailer pressure, and cost control. Reduced packaging often saves
packaging costs and this may pose a threat to our industry.

12
4.0 Operation Segment.

4.1 The operation Process of our company.

4.2 Packaging Process.

4.3 Equipment,

Filling Machines.

 Machines used to fill bottles or a pouch depending on the product

Auger/Agitator filling machines.

 Designed to fill dry mixes, such as milk powder, sugar, flour etc. fillers have a hopper shaped like
a cone that holds the mix and puts it in a pouch using an auger screw that is controlled by
the agitator.

Flow Filling Machines.

 Designed for liquids, oils, and thin food products. These fillers are designed when they fill a
bottle or tub that enters the machine, the ejects the open bottle back onto another conveyor for
sealing.

13
Tablet Fillers.

 Designed for products that is counted by pieces instead of weight. These are designed for small
bottles, but the hopper of the filler is set up to permit scan counting of tablets or candy pieces.

Sealing Machines.

 Machines used to securely close and/or fasten the product. Usually after the filling section

Food Packaging Machines.

 Machine that protects food that requires protection, tampering resistance, and special physical,
chemical or biological needs.

Vacuum Packaging Machine

 Method of packaging that removes air from the package. Long-term storage of dry foods.

Blister Pack Machine.

 Blister pack is a cavity or pocket made from a "formable" web, usually a thermoformed plastic.
This usually has a backing of paperboard or a "lidding" seal of aluminum foil or plastic.

4.4 Pre-Storage Treatments.

Pre storage treatments are the treatments given to a commodity (vegetables) generally after harvesting
to reduce postharvest losses, enhance storage life and retain quality.

Some of the important pre storage treatments are:

Cleaning, Washing, Sorting, Grading, Waxing, Packing, Pre cooling, Curing, DE sapping, Chemical
treatments, Irradiation, VA pour heat treatment.

Cleaning.

This is a treatment given to remove adhering dust, dirt, extraneous matter, pathogenic load etc. from
the surface of a commodity. Cleaning basically sanitizes the produce and avoids entry of undesirable
contents to enter the packaging and storage line. Cleaning is a broader term and includes dusting,
washing etc.

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Dusting.

This method is mainly used to remove the adhering soil, etc. from commodity i.e. potato, root
vegetables, carrot, radish etc. Dusting helps to shed undesirable load (weight) of the commodity and
thus reduce transportation cost. It also removes pathogenic microorganisms present in the soil from the
surface of the vegetables.

Washing.

This method is used in most fruits and vegetables. Washing is done at the pack house through
automated washing system fitted with overhead sprayers and smooth rotating brushes to clean and
wash the fruits. Washing with clean water mixed with a neutral detergent at 0.1% (1 ml / liter of water)
is effective. The process of cleaning and washing will take 3-5 minutes. The temperature of water should
be at room temperature (270 C).

Sorting and Grading.

This may be done manually or by using a machine. Fruits are graded on the basis of their colour, size
and weight and sorted for freeness from damage/ diseases.

Waxing / Coating.

It is the process of applying wax on the surface of commodity by spraying, dip or immersion, brushing,
fogging or foaming.

Curing.

It is technique where the commodity is left in the field itself in a heap under shade for few days. It is an
effective operation to reduce water loss during storage from hardy vegetables e.g. onion, garlic, sweet
potato etc. In case of onion curing is a drying process intended to dry off the necks and 2-3 outer scales
of the bulbs to prevent the loss of moisture and the attack by decay during storage.

The essential conditions during curing are: Heat (~ 30o C) Good ventilation, Low humidity

Chemicals are applied by spraying, dusting, dipping etc. for reducing disease incidence during storage.
Irradiation is application of radiation under controlled conditions to reduce incidence of disease or
disorders.

15
4.5 Location Facilities.
In our place, we already have a cold room in order to store vegetables. However, our products need a
multi-function cubing machine that can give us different types of cut. We are going to use vacuum
package machine to make our vegetables stay fresh as longer as possible. In all these processes there
are some people that can help us. There is a group of Experienced business man , who we can get advice
from them anytime we need. My uncles are industrial technicians who can help us when we have any
technical problems. My mother has been a manager for 4 years and she can give me some advice about
managing the company. In order to ask questions regarding legal issues, we have access to some
jurisconsult to give us legal advice.

4.6 Transportation.
We have a few vehicles of our own, van and motor bicycle. We go wherever; sometime we get late
because we don’t enough transportation.

We will take actions to overcome these problems and deliver the necessary items promptly and
correctly.

4.7 Benefits of Our Service.

 Lower prices than other food providers.

 Consume qualitative product.
 Lower delivery charges.
 Just in time delivery services

450000

400000

350000

300000

250000 sales
200000 Gross Margin
net profit
150000

100000

50000

0
year 01 year 02 year 03

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5.0 Management Segment.

5.1 Management team

Mr Thilakerathne is a chef and he is familiar with different ingredients of Vegetables. He spent 5 years
studying in Hospitality Management and he also has a work experience in a small vegetable farm for 2
years. He will be responsible for staffing product ordering and daily operations.

Mr . Thusitha has 5 yeas management experience in Cargills Company and he has a great It skill. He is
familiar with a variety of computer software including Photoshop, Excel, Word, etc. He make the all the
advertising side in my company. He has a bachelor degree in graphic design and has a great experience
in designing websites, logo, packaging and business cards. She also has 2 years' experience in accounting
and bookkeeping in Keels super Company. He will be responsible for accounting, stocking and
bookkeeping.

Also I have 60 labors to operate my packing vegetables. And there are 10 people deliver my products to
home and super markets.

5.2 Administrative Structure.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff
and it will be based on their performance for a period of ten years or more as agreed by the board of
trustees of the company. In view of the above, we have decided to hire qualified and competent hands
to occupy the following positions;

 Chief Operating Officer

 Food packaging plant Manager

 Human Resources and Admin Manager

 Accountant / Cashier

 Sales and Marketing Executive

 Food Processor and Packing Operators

 Front Desk Officer

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5.3 Responsibilities,
What should do my managers and workers?

Food Packaging Plant Manager

 Responsible for overseeing the smooth running of the food packaging plant

 Part of the team that determines the quantity of products that are to be produced

 Maps out strategies that will lead to efficiency amongst workers in the plant

 Responsible for training, evaluation and assessment of plant workers

Human Resources
Responsible for overseeing the smooth running of HR and administrative tasks for the organization

 Maintains office supplies by checking stocks; placing and expediting orders, evaluating new products
 Ensures operation of equipment by completing preventive maintenance requirements; calling for
repairs
 Defining job positions for recruitment and managing interviewing process
 Carrying out induction for new team members
 Responsible for training, evaluation and assessment of employees
 Responsible for arranging travel, meetings and appointments
 Oversee the smooth running of the daily office activities.

Sales and Marketing Manager

 Manage external research and coordinate all the internal sources of information to retain the
organizations’ best customers and attract new ones
 Model demographic information and analyze the volumes of transactional data generated by
customer
 Identifies development opportunities; follows up on development leads and contacts
 Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
 Responsible for handling business research, market surveys and feasibility studies for clients

Food Packaging Machine Operators

 Responsible for operating the following machines used in our plant;

 Auto coding label and date verification
 Check weighing machines
 Cleaning, sterilizing, cooling and drying machines
 Conveying and accumulating machines

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6.0 Finance Segment.
6.1 Estimated Statement.

When it comes to calculating the cost of starting a food packaging plant business, there are some key
factors that should serve as a guide. 

Description Rs.
The total fee for registering the business 4,000

The cost for leasing a large facility 100,000

Company Name Approval 2,000

Legal expenses for obtaining licenses and permits and permits (Health 10,500
department)
Marketing promotion expenses for the grand opening of the food packaging 4,500
plant
Hiring the Consultant 8,000

the cost for insurance (general liability, theft, workers’ compensation and 30,400
property casualty) coverage at a total premium
Other start-up expenses including stationery 1,400

phone and utility (gas, sewer, water and electric) deposits 7,500

The operational cost for the first 3 months (salaries of employees, payments 100,000
of bills et al)
The amount required for the purchase of the first set of supplies 90,000

The cost for acquiring the required working tools and equipment / machines 100,000

The cost for store equipment (cash register, security, ventilation, signage 13,750

the cost of purchase and installation of CCTVs 5,000

The cost for building and hosting a website 600

The cost for our opening party 8,000

Rent of the Building per month 15,000

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6.2 Payment methods

 Payment via bank transfer

 Payment via credit cards/Point of Sale Machines.

 Payment via online bank transfer

 Payment via check

 Payment via mobile money transfer

We use these methods because to easy for customers to pay their bill.

Food Commy
Monthly Income Statement March 2020
Rs.
Net sales 250,000

Less: Cost of Goods Sold 35,000

Gross Income 215,000

Operating Expenses 50,000
Labor 40,000
Rent 15,000
Electricity 8,000
Delivery- fuel 10,000
Water 8,000
Sales promotion 15,000
Communication 7,000
Other expenses 22,000
Total Expenses 165,000
Net Income 50,000

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Food Commy
Financial Statement March 2020
Non-Current Assets Rs. Rs.
Property Plant Equipment 300,000
Less Accumulated Depreciation 15,000 275,000

Current Assets

Inventory 25,000

Account Receivables 10,000

Cash 200,000 235,000
Total Assets 510,000

Equity 200,000

Non-Current Liabilities

Bank Loan 50,000

Current Liabilities
Accounts Payable 200,000
Interest Payable 60,000

Total Liabilities and equity 510,000

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7.0 Critical -Risk, Management.

Why people pay for our products

In compare to our indirect competitors, our products have quite higher prices. However, people,
especially for food products, are likely to spend more if they are satisfied with the quality and value of
the product. Also, the customer might pay more for our products because they can have more
convenience while consuming our ready to eat vegetables.

There are some manufacturing risks,

 Wrong printing plates used.

 Potential for extraneous material, chemical, or microbiological contamination from raw
materials, equipment, or environment.
 Returned goods mixed with non-like materials.
 HUMAN ERROR— Note that human error is one of the main causes of many of the mixed
material issues

Potential Risks How to Overcome,

Some similar products might come to the market by the time we start our business. So we have to
attract our customers from them.

Seasonality of our products can decrease in several months of each year. So we have to identify what
are reasons for it. And we should get solutions in next year.

There will be difficulties in the, 1st year and become accepted in the local area and to make the
expected profit. Every business has low profit in first years, but we have to improve year by year.

Some customers might resist changes in their purchase behavior and keep buying goods from local
market. So we have to use clear and easy online ordering system. And tell what are the features and
advantages of buying our products.

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8.0 Milestone Schedule Segment.

 Business Name Availability Check: Completed

 Business Registration: Completed

 Opening of Corporate Bank Accounts: Completed

 Securing Point of Sales (POS) Machines: Completed

 Opening Mobile Money Accounts: Completed

 Opening Online Payment Platforms: Completed

 Application and Obtaining Tax Payer’s ID: In Progress

 Application for business license and permit: Completed

 Purchase of Insurance for the Business : Completed

 Conducting Feasibility Studies : Completed

 Application for Loan from the bank: In Progress

 Writing of Business Plan: Completed

 Drafting of Employee’s Handbook: Completed

 Drafting of Contract Documents and other relevant Legal Documents: In Progress

 Design of The Company’s Logo: Completed

 Printing of Marketing/Promotional Materials: In Progress

 Recruitment of employees: In Progress

 Opening party/launching party planning: In Progress

 Creating Official Website for the Company: In Progress

 Creating Awareness for the business both online and around the community: In Progress

 Health and Safety and Fire Safety Arrangement (License): Secured

 Establishing business relationship with vendors – key players in the industry: In Progress.

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 Purchase of machines/equipment, furniture, racks, shelves, computers, electronic appliances, office
appliances and CCTV: In progress

References.

Bachelor Small Business | Applied Sciences | wittenborg.eu

Best Books for Entrepreneurs And Business Owners - Forbes

Business Plan Writing | Get Yours Written Today | fiverr.com

Business Plan Writing | Get Yours Written Today | fiverr.com

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