Business Plan: Event Management company at Naushero feroze

TOPIC OF ASSIGNMENT
Business Plan
By:
Dildar Hussain Memon
2k22/NFIT/02

Credited Assignment for 22 BS (IT),

Information Technology
Under the supervision of

Sir Raheel Arshad

Subject:
Entrepreneurship
Presented to:
University of Sindh

KBSAS Campus Naushahro Feroze

Date: 11:12: 2023

Pg. 1
 Business Plan: Event Management company at Naushero feroze

TABLE OF CONTENTS
Executive summary...........................................................................................................3

Introduction.......................................................................................................................3

Company description........................................................................................................3

Market analysis.................................................................................................................4

Description of management and organization..................................................................5

Breakdown of products and services.................................................................................5

Marketing plan..................................................................................................................5

Sales strategy.....................................................................................................................6

Financial plan.....................................................................................................................7

Preparing to raise debt or equity financing......................................................................10

Pg. 2
 Business Plan: Event Management company at Naushero feroze

BUSSINESS PLAN:
EVENT MANAGEMENT COMPANY AT NAUSHARO FEROZE
Executive Summary:

Shan Masala is a company that offers a wide variety of high-quality spice blends to meet the
tastes of consumers all around the world. The company is committed to providing authentic,
innovative, and excellent culinary experiences. Shan Masala aims to be the top choice for
spice enthusiasts who want a convenient and elevated cooking experience. By focusing on
sustainable sourcing, product innovation, and building a reliable distribution network, the
company is well-positioned for significant growth and market penetration.

Introduction
Starting the Business
Welcome to the exciting journey with our business plan for Shan Masala! Our commitment is
to provide you with high-quality, authentic spices that will add a touch of tradition and taste to
every dish, elevating your dining experience. With a rich heritage rooted in the art of spice
blending, Shan Masala aims to be the go-to choice for those who seek an exquisite blend of
flavors that bring families and communities together. We invite you to join us in celebrating the
essence of good food, as we spice up your life with the finest ingredients and a passion for
culinary excellence.

Company description

Shan Masala is a well-known culinary brand that specializes in providing authentic and flavorful
spices to kitchens all over the world. We are known for our premium quality and a wide range of
spice blends that enable home cooks and chefs to create delicious dishes that reflect the essence of
traditional Pakistani and South Asian cuisines. With our commitment to excellence and rich
heritage, Shan Masala has become the go-to choice for anyone seeking a perfect blend of
convenience and taste in their culinary pursuits.

Market Analysis
Strengths:

- Strong brand recognition and extensive market share.

- Wide product portfolio catering to various cuisines and regional preferences.

- Established distribution network reaching both local and international markets.

- Positive consumer perception of high quality and convenience.

Pg. 3
Weaknesses:

- High dependence on the Pakistani market and potential vulnerability to economic

fluctuations.

- Increasing competition from local and international brands.

- Limited marketing strategy compared to larger competitors.

Opportunities:

- Growing demand for convenient and flavorful food solutions.

- Expanding global market for ethnic food and spices.

- Untapped potential in the online market and e-commerce platforms.

Threats:

- Fluctuations in raw material costs impacting profitability.

- Changes in consumer preferences towards healthier or more natural alternatives.

- Counterfeiting and imitation products diluting the brand image.

Overall, Shan Masala has a strong market position, but it faces challenges from competition
and external factors. By leveraging its strengths and seizing opportunities, Shan can continue
to grow and maintain its leadership.

Market Analysis

start-up cost

advance (rent) 50,000

marketing and promotion expense 2000

insurance 12000

rent (monthly payment) 5000

Legal 10000

stationery and office operations exp 5000

internet expense 1500

office furniture 10,000

Printer 12000

computer 30,000

total start-up cost 137,500

Pg. 4
Business Plan: Event Management company at Naushero feroze

Description of management and organization:

Our company boasts of a leadership team that is not only experienced but also passionate about the
food industry. With a proven track record, they have what it takes to lead us to success. We have a
flat organizational structure that emphasizes agility and collaboration, allowing us to work together
seamlessly to achieve our goals. Our team is highly skilled, motivated, and dedicated to delivering
high-quality products and exceptional customer service. We place a strong emphasis on integrity,
innovation, and serving the community, which are integral parts of our culture.

Break Down of your product and service:

Product and Services:
We offer authentic spice blends, powders, and pastes for various cuisines, as well as
convenient cooking solutions, recipe mixes, and meal kits. Our high-quality ingredients and
meticulous blending processes ensure a hassle-free meal preparation experience. We also
provide culinary expertise, educational content, and personalized recommendations for easy
access to our products and services.

Marketing Plan
Marketing Objectives

: - Increase brand recognition and awareness.

- Drive growth in market share and sales.

- Foster customer loyalty and advocacy.

Marketing Strategies:

- Product:

Emphasize the unique flavor profile and natural ingredients of Shan Masala and develop new
product variations that cater to diverse culinary preferences.

- Price:

Offer competitive pricing and value-added bundles, implement promotional offers and loyalty
programs to attract customers.

- Place:

Expand distribution channels to supermarkets, convenience stores, and online platforms.

Strengthen relationships with existing distributors.

- Promotion:

Utilize social media platforms and influencer marketing to reach a wider audience.

Engage in recipe contests and food collaborations, and participate in relevant Pakistani
cultural events and festivals. Key Messages:

- Shan Masala is the authentic and convenient way to experience Pakistani flavors.

- Made with high-quality ingredients and traditional spices.

Pg. 5
- Perfect for creating delicious and flavorful Pakistani dishes at home.

Metrics:

- Track brand awareness using social media metrics and market research.

- Monitor sales and market share growth through retail data and industry reports.

- Measure customer satisfaction through surveys and online reviews.

Budget

: - Allocate resources strategically across different marketing channels based on potential

reach and impact.

Timeline:

- Set clear milestones and deadlines for implementation and review of marketing activities.

Financial plan
1. Revenue:
- Project future sales based on market research and historical data.
- Analyze potential revenue streams from various channels (e.g., retail, online, wholesale).
- Estimate price points for different product lines and consider the competitive landscape.
2. Costs:
- Identify all fixed and variable costs associated with production, marketing, and administration.
- Factor in raw material costs, labor expenses, manufacturing overhead, and marketing campaigns.
- Analyze potential cost-saving opportunities and optimize resource allocation.
3. Profitability:
- Calculate projected profit margins based on revenue and cost estimations.
- Analyze the break-even point to determine the minimum sales needed to cover costs.
- Evaluate the profitability of different product lines and identify potential areas for optimization.
4. Funding:
- Determine the initial capital needed for business launch and ongoing operations.
- Explore potential funding options such as personal savings, loans, angel investors, or venture capital.
- Develop a clear plan for managing finances and achieving financial sustainability. 5. Financial Projections:
- Create financial projections for key metrics like revenue, costs, and profit over a defined period (e.g., 3-5
years).
- Regularly monitor actual performance against projections and make adjustments as needed.
- Utilize financial analysis tools to assess financial health and make informed business decisions.
Additional Key Points:
- Consider tax implications and develop a tax strategy.
- Implement financial management systems for accurate tracking and analysis of financial data..

Pg. 6
Business Plan: Event Management company at Naushero feroze

Key financial indicators

The break-even point is based on the assumption that we will produce only three events per month
and average per event break even revenue will be Rs1450.

Break even analysis

Startup costs are minimal and initially there is no labor to pay additional equipment will be
provided by suppliers of particular service. We assume there is 11.02% rise in revenue.

Break Even Analysis

Monthly units break even 3

Monthly revenue break even 2,330.4

Assumptions
Average per unit revenue 31,570.36

Income statement (3 years projection)

Assumption

Per year revenue will increase by 11.02%

Revenue 85000 94,367 104,766.24

less: operating expense
leasing expense (1) 12000 13,525.96 15,272.24
wages expense 1200 1,215.26 1,229.36
marketing and promotion expense 2000 2,042.39 2,082.21
catering and food expense 20000 24,238.77 29,846.66
insurance 12000 13,525.96 15,272.24
rent 5000 5,264.92 5,529.50

stationary and office operations exp 5000 5,264.92 5,529.50

legal 10000 11,59.69 11,72.527
internet expense 1500 1,523.84 1,546.00
balloon decoration 1000 1,010.60 1,020.35
electricity expense 2000 2,042.39 2,082.21
depreciation (
furniture )
( furniture ) 1428.57 1,428.57 1,428.57
depr(computer) 6000 6,000.00 6,000.00
depr(printer ) 2400 2,400.00 2,400.00
total operating expense 81528.57 79,483.57 89,238.84
net income 3, 471.43 14,883.43 15,527.40

Pg. 7
Business Plan: Event Management company at Naushero feroze

Depreciation method
We will use straight line depreciation method to calculate deprecation of fixed assets.

Fixed assets Useful life Depreciation per year

Computer (30000) 5 year 6000
Printer (12000) 5 year 2400
Furniture (10000) 7 year 1,428.57

Balance sheet 3 years

projections)

Assets year 1 year 2 year 3

A/R 33000 36,636.60 40, 673.95
Prepaid insurance 12000 12000 12000
total current assets 45,000 48,636.60 52,673.95
fixed assets
office furniture 10000 10,000 10000
printer 12000 12000 12000
computer 30,000.00 30,000 30000
depri (furniture) -1428.57 -2,857.14 -4285.71
less: depr(printer) -2400 -4800 -9600
depri(computer) -6,000.00 -12000 -18,000.00
total assets 87,171.43 80,979.46 72,788.24
wages payable 1200 1,332.24 1,479.05
A/P 38000 42,187.60 46,836.67
bills payable 1500 1,501.36 1,666.81
total current liability 40700 45,021.20 49,982.54
owners’ equity 5,771.43 21,074.83 7,278.30
net income 3,471.4 14883.43 15,527.40
total liability + equity 87,171.43 80,979.46 72,788.24

Pg. 8
Business Plan: Event Management company at Naushero feroze

Cash flow statement

Net cash flow from investing and financing activities will be zero it is because we are not
going to produce any product or service that’s why we do not need any fixed asset for
production or manufacturing process. And second is that we are not going to issue any kind
of debt of equity instruments so net cash flow from operating activities also will be zero.

Cash flow from operating activities

year year 1 year 2 year 3
net income 3, 471.43 14,883.43 15,527.40
change in working capital -4300 -3,615.40 -2,691.41
Depreciation 9,828.57 19,657.14 31,885.71
Net CF from Operating
Activities 9000 30,925.17 44,721.70

Preparing to raise Debt or Equity financing

There are three steps that are used by investors or entrepreneurs to raise financing or equity
for their business.

Step 1: It will determines that how much money do we need for startup

startup cost
advance (rent) 50,000
marketing and promotion expense 2000
insurance 12000
rent (monthly payment) 5000
legal 10000
stationary and office operations exp 5000
internet expense 1500
office furniture 10,000
printer 12000
computer 30,000
total startup
cost 137,500

Step 2: Equity financing is most suitable option for new starters so we will raise money by
equity financing and there will be no burden of interest payment and there will be no
refund issue.

Step 3: we will use low leverage or low debt strategy as we are raising money by equity
financing so there will be no any issue of debt but risk exposure will be increased.

Pg. 9