Business Plan1

_____________
____
Wollega
University
ENGINEERING AND TECHNOLOGY
COLLEGE
FOOD TECHNOLOGY AND

PROCESS DEPARTMENT
NUTRITION AND FOOD SCIENCE
PROGRAM
(Master Program)
Course: Management of food

enterprise
Course Code: NFS- 506

Name Addisu Getenet
Id No = SPGS/OO98/13
Business Plan
Executive Summary
Blue Nile Restaurant established by Addisu Getenet in Nekemete town near to Wollega
University, and the owner has a vision to open three more restaurants in Ambo, Bedele
and Bako towns after the result of Blue Nile Restaurant of Nekemete. The main
costumers of the restaurants will be university students.
The aim of this business is to provide quality food items for students and teachers.
ITable of
Table of contents
Contents
Executive Summary
I
Background and History
1
Location
1
Objectives
1
Description of Products
1
Market Description
1
Competition
1
Marketing Strategies
2
Manufacturing Plans
2
Financial Projections
3
Income Statement
4
Cash Flow Analysis
5
Balance Sheet
5
Financial Ratios
7
Page
Contingency Plans
10
II
Background and History
Blue Nile restaurant is established by the owner Addisu Getenet in 2014 and going to
open next year in 2015. This restaurant is the first for the owner and he also planned to
open three more in Ambo,Bedele and Bako towns after the result of Blue Nile Restaurant
of Nekemete. The sample (prototype) is already prepared and tested and a good response
was obtained.
Location
The location of Blue Nile restaurant is near to Wollega University
Objective
The following are the objectives of Blue Nile restaurant
To provide good service for the customers

To provide restaurant options for the area
To obtain income
To obtain experience in restaurant business.
Description of Products
Blue Nile Restaurant will present two types main Ethiopian dishes. The first meal for
veterans which includes Tegabino, Shiro feses and Beyayenet the second meal
prepares form meat and meat sources which will have food items like
Tibs.Kitifo,Gored gored, Key wot and Dulet
Packed raw Meat products will be presented in a kilo and 1 kilo in plastic bag and that
safe for 36 hours
Market Description
The Foods in Blue Nile Restaurant will market will fall into two distinct categories: meat
and meat product and plant product
Meat product the consumption of meat and its products are increasing in Nekemete/
Ethiopia. As the market need assessment indicates the meat market is increasing in 17%
each year which has 42,000,000 birr market share.
1
Plant products Blue Nile Restaurant confirmed that the Nekemete residence are
accustomed to eat plant products (non meat products) in different months, for example
two months in mid Ethiopian summer the Orthodox people the only consume plant
products for religion matters, so this is a good opportunity for our restaurant. It is
estimated that the majority of the residence of Nekemete cannot afford the price of meat.
To attract a larger customer preparing Ethiopian traditional grain and cereal foods is
available in Blue Nile restaurant.
Market Competition
There are several equivalent restaurants in Nekemete town which presents the same items
of foods, but the weakness of these products is in the lack of variety none of these
restaurants produce or market a flavored topping. Several of the products are also too
expensive the restaurants focuses only to make large money from few consumers.
The strengths of the products of Blue Nile Restaurant are the location of the restaurant
(its proximity to Wollega University), the price, and the availability of all types
traditional foods including the well knows indigenous spices. Also there will be 15%
discount in all items.
Marketing Strategies
The restaurant is named in the very famous and beloved river of the nation, and it is
located around Wollega University (which has more than 10,000 students) and 80,000
residents in Nekemete town.
The restaurant accommodates some games, service of television which includes a live
football transmission, movie programmers, dessert and starter during launch time (these
are not common in most Ethiopian restaurants)
Manufacturing Plans
Local injera and bread presents in slice form, all food items will be prepared in the
restaurants kitchen. Such a preparation will minimize the expenses for production and
increases the safety of the produce, plus the consistency and make the restaurant reliable.
The raw materials and ingredients will be directly collected from the farmers, fresh and
attractive food items will present for the customers
2
Financial Projections
The following pages include multi-year projections for income, cash flow, balance
statement, as well as estimated financial ratios. These projections are for the Whipped
Dream division of Blue Nile Restaurant only.
Blue Nile Restaurant

Pro Forma Income Statement
January 2015 - December 2015
Net Sales
Less: Cost of Goods Sold
Gross Income
Operating Expenses
Labor
Utilities
Insurance
Sales Promotion
Delivery and Transportation
Miscellaneous
Total Expenses
Net Income Before Taxes
Less: Income Taxes
Net Income After Taxes
40,000.00
18,000.00
Birr 22,000.00
1,200.00
1,000.00
1,800.00
2,000.00
2,000.00
1,000.00
Birr 9,000.00
13,000.00
1.500.00
Birr11,500.00

Net Sales
Gross Income
Operating Expenses
Labor
Utilities
Insurance
Sales Promotion
Miscellaneous
Total Expenses
Less: Income Taxes
65,000.00
27,000.00
Birr 38,000.00
1,700.00
2,000.00
2,300.00
2,500.00
2,500.00
1,500.00
Birr 12,500.00
25,500.00
2,800.00
Birr 22,700.00

Net Sales
Gross Income
Operating Expenses
Salary
Labor
Utilities
Insurance
Sales Promotion
Miscellaneous
Total Expenses
Less: Income Taxes
103,000.00
42,000.00
Birr 61,000.00
2,000.00
3,000.00
2,500.00
2,500.00
3,500.00
3,000.00
2,000.00
Birr 18,500.00
42,500.00
3,900.00
38,600.00

Pro Forma Cash Flow Statement
January
February
3,000
3,000
Cost of Goods Sold
1500
1500
1500
1500
1500
Labor
100
100
100
100
100
Utilities
50
50
50
50
100
Insurance
150
150
150
150
Sales Promotion
150
150
150
150
150
150
Miscellaneous
50
50
1,000.00
1,000.00
Revenues
March
3,000
April
May
June
July
August
3.000
3,000
3,000
3,000
3,500
Expenses
Total Cash Flow
1500
1500
1500
100
100
100
100
100
100
150
150
150
150
150
150
150
150
150
150
150
150
150
50
50
100
100
100
100
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00

Pro Forma Balance Sheet
December 31, 2015
Current Assets
Cash
Accounts Receivable
Inventory
Pre-Paid Expenses
Total Current Assets
Fixed Assets
Building
Equipment
2,000.00
3,000.00
3,000.00
2,000.00
10.000.00
3,500.00
2,000.00
150
Gross Fixed Assets

Less Accumulated Depreciation
Net Fixed Assets
1,000.00
1,000.00
7,500.00
Total Assets
LIABILITIES AND OWNERS EQUITY

Liabilities
Current Liabiliities
Accounts Payable
Accrued Payables
Total Current Liabilities
Long Term Liabilities
Mortgage Payable
Total Liabilities
17,500.00
2,300.00
2,400.00
4,600.00
2,200.00
6,800.00
Owner's Equity
10,700.00
Total Liabilities and Owner's Equity
17,500.00

Financial Ratios
December 31, 2015
Return on Equity
Net Profit before Taxes

Net Equity
13,000.00
10,700.00
82.3%
Current Ratio
Current Assets
Current Liabilities
10,000.00
4,600.00
2.17
Quick Ratio
Curr. Assets - Inventory

Current Liabilities
7,000.00
4,600.00
1.52
Debt to Equity
Total Liabilities
Net Equity
6,800.00
10,700.00
0.63
9Contingency
Plans
While careful planning was involved in setting the strategic goals for , it may be that
these goals are not met. The owner have decided to set a zone of acceptability for
meeting sales and financial objectives. For both sales and financial objectives, a 10%
negative deviation from expected sales and projected returns on assets will be accepted.
However, if sales objectives and returns on investment are less than 90% of projections,
certain actions will be taken. These actions include:
1. For unacceptable sales levels during the first year: Blue Nile Restaurant will
combat this problem by doubling promotions.
2. For unacceptable sales levels: After 6 months of marketing products, sales will be
evaluated. If not meeting acceptable sales levels, Blue Nile Restaurant will consider
additional local marketing specialists.
3. For unacceptable business liquidity: In the event that the business lacks liquidity,
Blue Nile Restaurant will examine their accounts receivable procedures to ensure that
payment periods are just and that payments are being received in a timely manner.
4. For unacceptable returns on equity: If returns on assets and owners equity fall
below acceptable levels, Blue Nile Restaurant will first examine and compare the perunit costs of production and marketing with sales prices.
10

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_____________

FOOD TECHNOLOGY AND

Course: Management of food

Course Code: NFS- 506

To provide good service for the customers

Blue Nile Restaurant

Blue Nile Restaurant

Blue Nile Restaurant

Blue Nile Restaurant

Cost of Goods Sold

Delivery and Transportation

Total Cash Flow

Blue Nile Restaurant

Gross Fixed Assets

LIABILITIES AND OWNERS EQUITY

Total Liabilities and Owner's Equity

Blue Nile Restaurant

Net Profit before Taxes

Curr. Assets - Inventory

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