A PROJECT ON

Entrepreneurship & New Venture

BUSINESS SCHOOL OF DELHI

(AICTE APPROVED) 28/1 Knowledge Park-III Greater Noida

POST GRADUATE DIPLOMA IN MANAGEMENT

A PROJECT REPORT ON

Entrepreneurship and New Venture

Submitted in fulfillment of the Trimester VI for THE POST GRADUATE DIPLOMA IN MANAGEMENT During the academic years 2009-11
OF

BUSINESS SCHOOL OF DELHI

By

Abhijeet Kumar Bimal Roll No. 200910001

Project Submitted To Name:- Rajesh Kumar (HOD Mkt) Business School of Delhi 28/1 KP-III, Greater Noida
Date:Signature:-

DECLARATION

I, Abhijeet Kumar Bimal student of BUSINESS SCHOOL OF DELHI, hereby declare that I have completed this project on the title of Entrepreneurship and New Venture is an authentic work done by me and it is my own hard work and effort. I declare that the information submitted is true and original to best of my knowledge.

Abhijeet Kumar Bimal

EXECUTIVE SUMMARY
This project is all about Entrepreneurship and New Venture. My project explains the Principle of Entrepreneurship, detail business plan of TARRKA VIAHR Restaurant and short profile of My favorite Entrepreneur. When I am writing the different principal of entrepreneurship, I learn lot of thing which are required in establishing the New Venture. What are the different step taken prior to start the own business, what are the different way to save your cost, what are the different way to raise your fund, how I protect my innovation from other, what are the legal process, how I get competitive advantage from available resource, use of internet as a strong marketing tool and finaly how to build a business plan. TARRKA VIHAR restaurant is one of the my venture whom I want to open in Mayur Vihar 1,the business plan of TARRKA VIHAR restaurant is hypothetical and lots of thing are assumed. It is assumed that in Mayur Vihar the mass number are from North India and they have mixed income, the rate of interest and Tax rate are assumed according to current market. The TARRKA VIHAR is sole proprietorship of Abhijeet Bimal thats me. Other four friend work as an employee and they share the some amount of profit (PAT). At last I write the short profile of my favorite entrepreneur Mr. Narayana Murthy, who always inspired me if you have ambition and good friend around you, you will success from ground.

INDEX
S. No. Name Introduction Principles of Entrepreneurship Business Plan Title Plan Outline 1 Executive Summary 2 Company Summary 3 Service 4 Market Analysis Summary 5 Strategy and Implementation Summary 6 Web Plan Summary 7 Management Summary 8 Financial Plan Appendix My Favorite Bibliography Page No. 1 1 25 26 27 30 32 36 39 43 45 46 53 56 58

ENTREPRENEURSHIP
Entrepreneurship is neither science nor an art. It is the practice. It has a knowledge base. -- Peter Drucker

Principles of Entrepreneurship

What is Entrepreneurship?
The concept of entrepreneurship was first established in the 1700s, and the meaning has evolved ever since. Many simply equate it with starting ones own business. Most economists believe it is more than that. To some economists, the entrepreneur is one who is willing to bear the risk of a new venture if there is a significant chance for profit. Others emphasize the entrepreneurs role as an innovator who markets his innovation. Still other economists say that entrepreneurs develop new goods or processes that the market demands and are not currently being supplied. Business expert Peter Drucker (1909-2005) took this idea further, describing the entrepreneur as someone who actually searches for change, responds to it, and exploits change as an opportunity. A quick look at changes in communications from typewriters to personal computers to the Internetillustrates these ideas. Most economists today agree that entrepreneurship is a necessary ingredient for stimulating economic growth and employment opportunities in all societies. In the developing world, successful small businesses are the primary engines of job creation, income growth, and poverty reduction. The culture of a community also may influence how much entrepreneurship there is within it. Different levels of entrepreneurship may stem from cultural differences that make entrepreneurship more or less rewarding personally. A community that accords the highest status to those at the top of hierarchical organizations or those with professional expertise may discourage entrepreneurship. A culture or policy that accords high status to the self-made individual is more likely to encourage entrepreneurship.

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What Makes Someone an Entrepreneur?

Who can become an entrepreneur? There is no one definitive profile. Successful entrepreneurs come in various ages, income levels, gender, and race. They differ in education and experience. But research indicates that most successful entrepreneurs share certain personal attributes, including: creativity, dedication, determination, flexibility, leadership, passion, self-confidence, and smarts. Creativity is the spark that drives the development of new products or services or ways to do business. It is the push for innovation and improvement. It is continuous learning, questioning, and thinking outside of prescribed formulas. Dedication is what motivates the entrepreneur to work hard, 12 hours a day or more, even seven days a week, especially in the beginning, to get the endeavor off the ground. Planning and ideas must be joined by hard work to succeed. Dedication makes it happen. Determination is the extremely strong desire to achieve success. It includes persistence and the ability to bounce back after rough times. It persuades the entrepreneur to make the 10th phone call, after nine have yielded nothing. For the true entrepreneur, money is not the motivation. Success is the motivator; money is the reward. Flexibility is the ability to move quickly in response to changing market needs. It is being true to a dream while also being mindful of market realities. A story is told about an entrepreneur who started a fancy shop selling only French pastries. But customers wanted to buy muffins as well. Rather than risking the loss of these customers, the entrepreneur modified her vision to accommodate these needs. Leadership is the ability to create rules and to set goals. It is the capacity to follow through to see that rules are followed and goals are accomplished. Passion is what gets entrepreneurs started and keeps them there. It gives entrepreneurs the ability to convince others to believe in their vision. It cant substitute for planning, but it will help them to stay focused and to get others to look at their plans.

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 Self-confidence

comes

from

thorough

planning,

which

reduces

uncertainty and the level of risk. It also comes from expertise. Selfconfidence gives the entrepreneur the ability to listen without being easily swayed or intimidated. Smarts consists of common sense joined with knowledge or experience in a related business or endeavor. The former gives a person good instincts, the latter, expertise. Many people have smarts they dont recognize. A person who successfully keeps a household on a budget has organizational and financial skills. Employment, education, and life experiences all contribute to smarts. Every entrepreneur has these qualities in different degrees. But what if a person lacks one or more? Many skills can be learned. Or, someone can be hired who has strengths that the entrepreneur lacks. The most important strategy is to be aware of strengths and to build on them.

Why Become an Entrepreneur?

What leads a person to strike out on his own and start a business? Perhaps a person has been laid off once or more. Sometimes a person is frustrated with his or her current job and doesnt see any better career prospects on the horizon. Sometimes a person realizes that his or her job is in jeopardy. A firm may be contemplating cutbacks that could end a job or limit career or salary prospects. Perhaps a person already has been passed over for promotion. Perhaps a person sees no opportunities in existing businesses for someone with his or her interests and skills. Some people are actually repulsed by the idea of working for someone else. They object to a system where reward is often based on seniority rather than accomplishment, or where they have to conform to a corporate culture. Other people decide to become entrepreneurs because they are disillusioned by the bureaucracy or politics involved in getting ahead in an established business or profession. Some are tired of trying to promote a product, service, or way of doing business that is outside the mainstream operations of a large company. In contrast, some people are attracted to entrepreneurship by the advantages of starting a business. These include:

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 Entrepreneurs are their own bosses. They make the decisions. They choose whom to do business with and what work they will do. They decide what hours to work, as well as what to pay and whether to take vacations. Entrepreneurship offers a greater possibility of achieving significant financial rewards than working for someone else. It provides the ability to be involved in the total operation of the business, from concept to design and creation, from sales to business operations and customer response. It offers the prestige of being the person in charge. It gives an individual the opportunity to build equity, which can be kept, sold, or passed on to the next generation. Entrepreneurship creates an opportunity for a person to make a contribution. Most new entrepreneurs help the local economy. A few through their innovationscontribute to society as a whole. One example is entrepreneur Steve Jobs, who co-founded Apple in 1976, and the subsequent revolution in desktop computers. Some people evaluate the possibilities for jobs and careers where they live and make a conscious decision to pursue entrepreneurship. No one reason is more valid than another; none guarantee success. However, a strong desire to start a business, combined with a good idea, careful planning, and hard work, can lead to a very engaging and profitable endeavor.

Decisions and Downfalls

Entrepreneurship is an attractive career choice. But many decisions have to be made before launching and managing a new business, no matter its size. Among the questions that need to be answered are: Does the individual truly want to be responsible for a business? What product or service should be the basis of the business? What is the market, and where should it be located? Is the potential of the business enough to provide a living wage for its employees and the owner? How can a person raise the capital to get started? Should an individual work full or part time to start a new business? Should the person start alone or with partners?

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Answers to these questions are not empirically right or wrong. Rather, the answers will be based on each entrepreneurs judgment. An entrepreneur gathers as much information and advice as possible before making these and other crucial decisions. The entrepreneurs challenge is to balance decisiveness with cautionto be a person of action who does not procrastinate before seizing an opportunityand at the same time, to be ready for an opportunity by having done all the preparatory work possible to reduce the risks of the new endeavor. Preparatory work includes evaluating the market opportunity, developing the product or service, preparing a good business plan, figuring out how much capital is needed, and making arrangements to obtain that capital. Through careful analysis of entrepreneurs successes and failures, economists have identified key factors for up-and-coming business owners to consider closely. Taking them into account can reduce risk. In contrast, paying them no attention can precipitate the downfall of a new enterprise. Motivation: What is the incentive for starting a business? Is it money alone? True, many entrepreneurs achieve great wealth. However, money is almost always tight in the startup and early phases of a new business. Many entrepreneurs do not even take a salary until they can do so and still leave the firm with a positive cash flow. Strategy: What is the strategy for distinguishing the product or service? Is the plan to compete solely on the basis of selling price? Price is important, but most economists agree that it is extremely risky to compete on price alone. Large firms that produce huge quantities have the advantage in lowering costs. Realistic Vision: Is there a realistic vision of the enterprises potential? Insufficient operating funds are the cause of many failed businesses. Entrepreneurs often underestimate start-up costs and overestimate sales revenues in their business plans. Some analysts advise adding 50 percent to final cost estimates and reducing sales projections. Only then can the entrepreneur examine cash flow projections and decide if he or she is ready to launch a new business.

Go It Alone or Team Up?

One important choice that new entrepreneurs have to make is whether to start a business alone or with other entrepreneurs. They need to consider many factors,

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including each entrepreneurs personal qualities and skills and the nature of the planned business. There are many advantages to starting a firm with other entrepreneurs. Team members share decision-making and management responsibilities. They can also give each other emotional support, which can help reduce individual stress. Companies formed by teams have somewhat lower risks. If one of the founders is unavailable to handle his or her duties, another can step in. Team interactions often generate creativity. Members of a team can bounce ideas off each other and brainstorm solutions to problems. Studies show that investors and banks seem to prefer financing new businesses started by more than one entrepreneur. This alone may justify forming a team. Other important benefits of teaming come from combining monetary resources and expertise. In the best situations, team members have complementary skills. One may be experienced in engineering, for example, and the other may be an expert in promotion. In general, strong teams have a better chance at success. In Entrepreneurs in High Technology, Professor Edward Roberts of the Massachusetts Institute of Technology (MIT) reported that technology companies formed by entrepreneurial teams have a lower rate of failure than those started by individuals. This is particularly true when the team includes a marketing expert. But entrepreneurial teams have potential disadvantages as well. First, teams share ownership. In general, entrepreneurs should not offer to share ownership unless the potential partner can make a significant contribution to the venture. Teams share control in making decisions. This may create a problem if a team member has poor judgment or work habits. Most teams eventually experience serious conflict. This may involve management plans, operational procedures, or future goals. It may stem from an unequal commitment of time or a personality clash. Sometimes such conflicts can be resolved; in others, a conflict can even lead to selling the company or, worse, to its failure. It is important for a new entrepreneur to be aware of potential problems while considering the advantages of working with other entrepreneurs. In general, the benefits of teaming outweigh the risks.

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Choosing a Product and a Market

A prospective entrepreneur needs to come up with a good idea. This will serve as the foundation of the new venture. Sometimes an entrepreneur sees a market need andEureka!has an idea for a product or service to fill it. Other times an entrepreneur gets an idea for a product or service and tries to find a market for it. A Scottish engineer working at General Electric created putty that bounces but had no use for it. In the hands of a creative entrepreneur, it became a toy, Silly Putty, with an enthusiastic market: children. There are many ways to look for ideas. Read a lot, talk to people, and consider such questions as: What limitations exist in current products and services? What would you like that is not available? Are there other uses for new technology? What are innovative ways to use or to provide existing products? In Australia in 1996, two entrepreneurs founded Aussie Pet Mobile Inc. to bring pet bathing and grooming to busy peoples homes. It is now a top U.S. franchise business. Is society changing? What groups have unfulfilled needs? What about peoples perceptions? Growing demand for healthy snacks created many business opportunities in the United States, for example. Business ideas usually fit into one of four categories that were described by H. Igor Ansoff in the Harvard Business Review in 1957: An existing good or service for an existing market. This is a difficult approach for a start-up operation. It means winning over consumers through merchandising appeal, advertising, etc. Entry costs are high, and profit is uncertain. A new good or service for a new market. This is the riskiest strategy for a new firm because both the product and the market are unknown. It requires the most research and planning. If successful, however, it has the most potential for new business and can be extremely profitable. A new good or service for an existing market. (Often this is expanded to include modified goods/services.) For example, entrepreneurial greetingcard makers use edgy humor and types of messages not produced by Hallmark or American Greetingsthe major greeting-card makersto compete in an existing market. An existing good or service for a new market. The new market could be a different country, region, or market niche. Entrepreneurs who provide goods/services at customers homes or offices, or who sell them on the

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Internet, are also targeting a new marketpeople who dont like shopping or are too busy to do so. The last two categories have moderate risk, but product and market research can reduce it. They also offer opportunities for utilizing effective start-up strategies innovation, differentiation, and market specification.

Entry Strategies for New Ventures

It is easy to be captivated by the promise of entrepreneurship and the lure of becoming ones own boss. It can be difficult, however, for a prospective entrepreneur to determine what product or service to provide. Many factors need to be considered, including: an ideas market potential, the competition, financial resources, and ones skills and interests. Then it is important to ask: Why would a consumer choose to buy goods or services from this new firm? One important factor is the uniqueness of the idea. By making a venture stand out from its competitors, uniqueness can help facilitate the entry of a new product or service into the market. It is best to avoid an entry strategy based on low cost alone. New ventures tend to be small. Large firms usually have the advantage of lowering costs by producing large quantities. Successful entrepreneurs often distinguish their ventures through differentiation, niche specification, and innovation. Differentiation is an attempt to separate the new companys product or service from that of its competitors. When differentiation is successful, the new product or service is relatively less sensitive to price fluctuations because customers value the quality that makes the product unique

A product can be functionally similar to its competitors product but have

features that improve its operation, for example. It may be smaller, lighter, easier to use or install, etc. In 1982, Compaq Computer began competing with Apple and IBM. Its first product was a single-unit personal computer with a handle. The concept of a portable computer was new and extremely successful. Niche specification is an attempt to provide a product or service that fulfills the needs of a specific subset of consumers. By focusing on a fairly
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narrow market sector, a new venture may satisfy customer needs better than larger competitors can.

Changes in population characteristics may create opportunities to serve

niche markets. One growing market segment in developed countries comprises people over 65 years old. Other niches include groups defined by interests or lifestyle, such as fitness enthusiasts, adventure-travel buffs, and working parents. In fact, some entrepreneurs specialize in making homemade dinners for working parents to heat and serve.

Innovation is perhaps the defining characteristic of entrepreneurship.

Visionary business expert Peter F. Drucker explained innovation as change that creates a new dimension of performance. There are two main types of product innovation. Pioneering or radical innovation embodies a technological breakthrough or new-to-the-world product. Incremental innovations are modifications of existing products. But innovation occurs in all aspects of businesses, from manufacturing processes to pricing policy. Tom Monaghans decision in the late 1960s to create Dominos Pizza based on home delivery and Jeff Bezos decision in 1995 to launch Amazon.com as a totally online bookstore are examples of innovative distribution strategies that revolutionized the marketplace. Entrepreneurs in less-developed countries often innovate by imitating and adapting products created in developed countries. Drucker called this process creative imitation. Creative imitation takes place whenever the imitators understand how an innovation can be applied, used, or sold in their particular market better than the original creators do. Innovation, differentiation, and/or market specification are effective strategies to help a new venture to attract customers and start making sales.

Marketing Is Selling
Marketing is often defined as all the activities involved in the transfer of goods from the producer to the consumer, including advertising, shipping, storing, and selling. For a new business, however, marketing means selling. Without paying customers to buy the goods or services, all the entrepreneurs plans and strategies will undoubtedly fail. How does a new business get orders? Before launching the business, the entrepreneur should research the target market and analyze competitive products. Most business sectors have specific marketing strategies that work best for them and have already been put into practice, entrepreneur Phil
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Holland said. In 1970, Holland founded Yum Yum Donut Shops, Inc., which grew into the largest chain of privately owned doughnut shops in the United States. He suggests analyzing competitors successful selling methods, pricing, and advertising. An entrepreneur can also develop a file of potential customers, for example, by collecting names or mailing lists from local churches, schools, and community groups or other organizations. This file can be used later for direct mailings even for invitations to the opening of the new business. After the new firm is launched, its owners need to get information about their product or service to as many potential customers as possibleefficiently, effectively, and within the constraints of a budget. The most effective salesperson in a new venture is often the head of the business. People will almost always take a call from the president of a firm. This is the person with the vision, the one who knows the advantages of the new venture and who can make quick decisions. Many famous entrepreneurs, such as Bill Gates at Microsoft, have been gifted at selling their products. Companyemployed sales people can be effective for a new venture, particularly one aimed at a fairly narrow market. Direct sales conducted by mail order or on the Internet are less expensive options that can be equally successful. External channels also can be used. Intermediaries, such as agents or distributors, can be hired to market a product or service. Such individuals must be treated fairly and paid promptly. Some analysts advise treating external representatives like insiders and offering them generous bonuses so that the product or service stands out among the many they represent. Advertising and promotion are essential marketing tools. Newspaper, magazine, television, and radio advertisements are effective for reaching large numbers of consumers. A less expensive option is printing fliers, which can be mailed to potential customers, handed out door to door, or displayed in businesses that permit it. New companies can also compose new product releases, which trade magazines usually publish without charge. It is important to be listed in local telephone directories that group similar businesses under a single heading, such as the Yellow Pages in the United States. It is also useful to be listed on Internet search engines such as Google or Yahoo, which are used by consumers for locating local businesses. These often link to a companys Web site, thereby communicating more information. Publicity is also an extremely valuable way to promote a new product or service. New firms should send press releases to media outlets. A local newspaper might publish a feature about the startup. A TV or radio station might interview its owners. This can be very effective in generating sales, and its free!
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The Entrepreneur and the Internet

The Internet a vast computer network linking smaller computer networks has revolutionized commerce by bringing together people from all over the globe. Many of its features can be used to shape a new business. Communications: An entrepreneur must communicate with many people suppliers, distributors, and customers, for example. A quick and relatively inexpensive way to send letters, reports, photographs, etc. to other Internet users is with electronic mail or e-mail. E-mail can be used even for marketing. Various forms of computer software are available to protect documents from unauthorized access or alteration so that they can be securely shared and easily authenticated. Research: Starting a business takes lots of research. An entrepreneur can find information on almost any subject very rapidly by using the Internets World Wide Web.. (The Web is a collection of text and multimedia documents linked to create a huge electronic library.) Many government agencies, universities, organizations, and businesses provide information on the Internet, usually at no cost. The easiest way to find information on the Web is by using a search enginea data retrieval system. The user types key words for a subject on the computer, clicks the enter button, and receives a list of materials often within seconds. The items are linked electronically to the actual documents so that Internet users can read them on their computer screens. Among the most popular search engines are Yahoo! (http://yahoo.com) and Google (http://google.com). Promotion: Web sites, pages of print and visual information that are linked together electronically, offer an opportunity for entrepreneurs to introduce a new business and its products and/or services to a huge audience. In general, Web sites can be created and updated more quickly and inexpensively than printed promotional materials. Moreover, they run continuously! To create a Web site for her business, the entrepreneur can hire a firm to create one or purchase computer software to create it on her own. Many universities offer courses that teach how to build a Web site, also. A Web site needs a name and an address. On the Internet, the two are usually the same. Web site names and addresses must be registered. Http://rs.internic.net is a Web site that lists registrars by country and language used. The address of the online business is expressed as a Uniform Resource Locator (URL). It usually ends in dot com (.com), which indicates a commercial site. Dot net (.net), an alternate ending; is often used when a specific Web site name ending in .com has
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already been registered. Good business Web site names are easy to remember and evoke the firm and its products or services. The entrepreneur also needs a piece of property in cyberspace, where her Web site will reside. Many commercial hosting services, called Internet service providers (ISPs), rent space on their large computers (called servers) for a small monthly or annual fee. Web site promotion is critical. A Web site address can be put on business cards, stationery, brochures anything having to do with the new firm. Or, an entrepreneur can pay to place a colorful advertisement on non-competitive Web sites, such as ones for complementary products. Advertising banners usually link back to the advertised firms Web site. Entrepreneurs also can provide information about their Web sites to well-known Internet search engines. For a fee, most search engines will promote a Web site when a selected set of search terms is used. Online shoppers, for instance, often use search engines to find businesses that provide specific products and services. Safe Use: Just as shopkeepers lock their storefronts, entrepreneurs who use the Internet need to take steps to keep their computer systems safe from the potential hazards of security breaches and viruses. One of the most effective steps is installing security software. Another is setting up an Internet firewall to screen and block undesired traffic between a computer network and the Internet. A technology consultant on contract can install these and other computer defenses. There is a lot of information about computer safety available, and often for free. For example, the National Cyber Security Alliance (http://www.staysafeonline.info/), an organization devoted to raising Internet security awareness, offers educational materials and other resources. As Julian E. Lange, associate professor of entrepreneurship at Babson College, has said, For creative entrepreneurs with limited resources, the Internet offers significant opportunities to build new businesses and enhance existing enterprises. New businesses will develop solutions to enhance the Internet users experience. Existing businesses will take advantage of myriad Internet applications from customer service to order processing to investor relations. Lange suggests that, for many entrepreneurs, the challenges posed by the Internet are opportunities to delight customers and create exciting entrepreneurial ventures.

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Selling Online
Many entrepreneurs sell goods or services on the Internet. Why? The Internet provides access to a large and growing market. Approximately 627 million people were shopping online worldwide in 2005, according to ACNielsen, a global information-marketing company. By selling on the Internet, a neighborhood shop or home-based firm can reach a national or even international group of potential customers. When entrepreneurs sell online, they are on a more level playing field with larger competitors. There are costs to Internet selling, certainly. But the price of creating and managing a Web site has dropped, and the number of Web site design and management companies has grown. In fact, some entrepreneurs find it less costly to run an Internet store than to hire a large sales force and maintain one or more bricks and mortar or actual stores. Some businesses books, airline travel, and the stock market, for example have been transformed by their success in online sales. Others, such as amusement parks, bowling alleys, or utility companies, may not at first seem well suited to the Internet. But a Web site also can be used for selling tickets, offering discounts, or letting customers make payments over the Internet. To start an online business, an entrepreneur must: Register a domain name an Internet name and address. Purchase a server or contract with an Internet service provider to host the Web site. Buy Internet software to create a Web site or hire an expert to do so. Design an attractive and easy-to-navigate online store. Create an online catalog. Provide clearly written in formation, without technical language or jargon. Use lots of photos to encourage potential customers to buy. Include clear instructions to order by phone or online. Establish a payment method. Some companies bill a customer before or after shipping merchandise. This may cause payment delays, however. Another option is to have customers use credit or debit cards online. A business can get a bank-authorized transaction-processing account (merchant account) for handling the revenue (and fees) from credit card transactions from a bank or other institution that processes credit cards online. Alternately, it is possible to hire an online payment service, such as World Pay (www.worldpay.com), to handle these transactions. Make the Web site secure, especially to protect customers financial information. Hiring a technology expert is time and money well spent as compared to the potential risk of security violations. Establish a policy for shipping. Options include letting the business absorb the cost (no charge), including costs in the listed prices, or
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explicitly listing shipping charges. Customers should never be surprised at the end of a transaction with shipping costs. Customers may cancel the sale. Offer customers an e-mail address or phone number for complaints, suggestions, or compliments, and respond to them. This can boost customer loyalty. After creating an online store, there is still much to do. An entrepreneur needs to attract potential customers. There are many ways to advertise a Web site. One is to print a Web address on business receipts, letterhead, newsletters, and other materials. Another is to contact search engines like Google and Yahoo, and to use key subject words in the Web site design so that search-engine users are directed to the entrepreneurs Web site. For example, a restaurant specializing in food from Afghanistan might include the key words and phrases Afghan cuisine, traditional recipes, contemporary cooking, bulani, hummus, korma, kabobs, kofta, lamb, ashwak, steamed dumplings, and others like these. Web site promotion is crucial. Getting noticed is the first step to making online sales

Choosing a Form of Business

In many countries, entrepreneurs must select a form of organization when they start a small business. The basic forms of organization are sole proprietorships, partnerships, and corporations. Each has advantages and disadvantages. Moreover, the laws and regulations that apply to business owners vary from country to country and by local jurisdiction. Entrepreneurs should consult an attorney or other expert to make sure that they have all the necessary licenses and permits, and are aware of all their legal obligations. In many countries, the local Chamber of Commerce or local business council is also a good source of information. Sole Proprietorship: In a sole proprietorship, the individual entrepreneur owns the business and is fully responsible for all its debts and legal liabilities. More than 75 percent of all U.S. businesses are sole proprietorships. Examples include writers and consultants, local restaurants and shops, and home-based businesses. This is the easiest and least expensive form of business to start. In general, an entrepreneur files all required documents and opens a shop. The disadvantage is that there is unlimited personal liability all personal and business assets owned by the entrepreneur may be at risk if the business goes into debt. Partnership: A partnership consists of two or more people who share the assets, liabilities, and profits of a business. The greatest advantage comes from shared
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responsibilities. Partnerships also benefit by having more investors and a greater range of knowledge and skills. There are two main kinds of partnerships, general partnerships and limited partnerships. In a general partnership, all partners are liable for the acts of all other partners. All also have unlimited personal liability for business debts. In contrast, a limited partnership has at least one general partner who is fully liable plus one or more limited partners who are liable only for the amount of money they invest in the partnership. The largest disadvantage of any partnership is the potential for disagreements, regardless of how well or how long the partners have known each other. Experts agree that a partnership agreement drawn up by an experienced lawyer is essential to a successful partnership. It is often used to: create a mechanism for resolving disagreements; specify each partners contribution to the partnership; divide up management responsibilities; and specify what happens if a partner leaves or dies. Corporations: Corporations are recommended for entrepreneurs who plan to conduct a large-scale enterprise. As a legal entity that has a life separate from its owners, a corporation can sue or be sued, acquire and sell property, and lend money. Corporations are divided into shares or stocks, which are owned by one, a few, or many people. Ownership is based on the percentage of stock owned. Shareholders are not responsible for the debts of the corporation, unless they have personally guaranteed them. A shareholders investment is the limit of her liability. Corporations can more easily obtain investment, raise capital by selling stock, and survive a change of ownership. They provide more protection from liability than other forms of business. Their potential for growth is unlimited. However, corporations are more complex and expensive to set up than other forms of business and are usually subject to a higher level of government regulation.

Creating a Business Plan

A comprehensive business plan is crucial for a start-up business. It defines the entrepreneurs vision and serves as the firms resume. There are many reasons for writing a business plan: To convince oneself that the new venture is worthwhile before making a significant financial and personal commitment. To assist management in goal-setting and long-range planning.
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 To attract investors and get financing. To explain the business to other companies with which it would be useful to create an alliance or contract. To attract employees. A business plan can help an entrepreneur to allocate resources appropriately, handle unexpected problems, and make good business decisions. A well-organized plan is an essential part of any loan application. It should specify how the business would repay any borrowed money. The entrepreneur also should take into account all startup expenses and potential risks so as not to appear naive. However, according to Andrew Zacharakis, a common misperception is that a business plan is primarily used for raising capital. Zacharakis, a professor of entrepreneurship at Babson College, suggests that the primary purpose of a business plan is to help entrepreneurs gain a deeper understanding of the opportunity they envision. He explains: The business plan process helps the entrepreneur shape her original vision into a better opportunity by raising critical questions, researching answers for those questions, and then answering them. Some entrepreneurs create two plans: a planning document for internal use and a marketing document for attracting outside investment. In this situation, the information in each plan is essentially the same, but the emphasis is somewhat different. For example, an internal document intended to guide the business does not need detailed biographies of the management. However, in a plan intended for marketing, the background and experience of management may be the most important feature. A standard business plan is usually about 40 pages in length. It should use good visual formatting, such as bulleted lists and short paragraphs. The language should be free of jargon and easy to understand. The tone should be business-like and enthusiastic. It should be strong on facts in order to convince people to invest money or time in the new venture. The basic elements of a standard business plan include: Title Page Table of Contents Executive Summary Company Description Product/Service Market and Competition Marketing and Selling Strategy Operating Plan Management/Organization
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Financing Supporting Documents The executive summary is the cornerstone of a good plan. This is the section that people read in order to decide whether to read the rest. It should concisely summarize the technical, marketing, financial, and managerial details. More importantly, it needs to convince the reader that the new venture is a worthy investment. The company description highlights the entrepreneurs dream, strategy, and goals. The product/service section should stress the characteristics and benefits of the new venture. What differentiates it from its competition? Is it innovative? The financial components of a new ventures business plan typically include three projections: a balance sheet, an income statement, and a cash-flow analysis. These require detailed estimates of expenses and sales. Expenses are relatively easy to estimate. Sales projections are usually based on market research, and often utilize sales data for similar products and services produced by competitors.

The Entrepreneurs Need for Capital

New businesses rarely show a profit in the early months of operation. Generating sales takes time, and receipts are not usually sufficient to offset start-up costs and monthly expenses. Therefore, entrepreneurs need to estimate how much money they need and then raise that amount to transform their dream into a reality. It doesnt necessarily take a lot of cash to create a successful business. In the mid1970s, Steve Jobs and Steve Wozniak started Apple Computer by selling a Volkswagen microbus and a Hewlett-Packard scientific calculator to raise $1,300 enough for a makeshift production line. In 1997, Bill Martin and Greg Wright used the free Internet connections in their college dorm rooms and $175: $75 for a New Jersey partnership fee, $70 to register their Web domain name, and $30 for a months hosting fee to start www.ragingbull.com, which is now a successful financial Web site. Many entrepreneurs start businesses with $5,000 or less, just enough to establish the business, invest in some inventory, and create some advertising materials. There are many ways to reduce expenses: for instance, by initially working out of ones home rather than leasing an office or leasing office equipment rather than buying it. However, all entrepreneurs need to estimate how much cash they need to cover expenses until the business begins to make a profit. For this task, the best financial tools are the income statement and cash flow statement. Cash flow refers to the amount of money actually available to make purchases and pay
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current bills and obligations. It is the difference between cash receipts (money taken in) and cash disbursements (money spent) over a specific time period. It is important to attach notes to these forecasts to explain any unusual expenses or assumptions used in the calculations. An income statement sets out all of the entrepreneurs projected revenues and expenses (including depreciation and mortgages) to determine a ventures profits per month and year. Depreciation is a method to account for assets whose value is considered to decrease over time. A cash flow statement estimates anticipated cash sales as well as anticipated cash payments of bills. This estimate can be done on a weekly, monthly, or quarterly basis, but experts recommend that it be done at least once every month for the first year or two of a new business. This forecast is used to project the money required to finance the operation annually. By calculating this forecast on a cumulative basis, the entrepreneur can forecast his companys overall capital needs at start up. The monthly net cash flow shows how much an entrepreneurs cash receipts exceed or fall short of monthly cash expenditures. For most of the first year, the monthly expenditures are likely to exceed the receipts. In many cases, goods are shipped out before payment is received. Meanwhile, the entrepreneur still has to pay his bills. Therefore, the cumulative cash flow, which adds each months total to that of previous months, will result in a growing negative amount. A critical point for a new business occurs when monthly sales receipts are enough to cover monthly expenses. At this point, the negative cumulative cash flow will begin to decrease and move toward a positive one. The cumulative cash flow amount reached just before it reverses direction indicates approximately how much capital the new business will need. Financial projections are inevitably somewhat inaccurate simply because every contingency cannot be predicted. For this reason, experts recommend that entrepreneurs add at least 20 percent to the financial needs calculated in the cash flow statement to create a safety net for unforeseen events. With these estimates, the entrepreneur can seek funding and concentrate more clearly on launching the new business.

Sources of Financing
Many entrepreneurs struggle to find the capital to start a new business. There are many sources to consider, so it is important for an entrepreneur to fully explore all financing options. He also should apply for funds from a wide variety of sources.

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Personal savings: Experts agree that the best source of capital for any new business is the entrepreneurs own money. It is easy to use, quick to access, has no payback terms, and requires no transfer of equity (ownership). Also, it demonstrates to potential investors that the entrepreneur is willing to risk his own funds and will persevere during hard times. Friends and family: These people believe in the entrepreneur, and they are the second easiest source of funds to access. They do not usually require the paperwork that other lenders require. However, these funds should be documented and treated like loans. Neither part ownership nor a decisionmaking position should be given to these lenders, unless they have expertise to provide. The main disadvantage of these funds is that, if the business fails and money goes lost, a valuable relationship may be jeopardized. Credit cards: The entrepreneurs personal credit cards are an easy source of funds to access, especially for acquiring business equipment such as photocopiers, personal computers, and printers. These items can usually be obtained with little or no money paid up front and with small monthly payments. The main disadvantage is the high rate of interest charged on credit card balances that are not paid off in full each month. Banks: Banks are very conservative lenders. As successful entrepreneur Phil Holland explains, Many prospective business owners are disappointed to learn that banks do not make loans to start-up businesses unless there are outside assets to pledge against borrowing. Many entrepreneurs simply do not have enough assets to get a secured loan from a lending institution. However, if an entrepreneur has money in a bank savings account, she can usually borrow against that money. If an entrepreneur has good credit, it is also relatively easy to get a personal loan from a bank. These loans tend to be shortterm and not as large as business loans. Venture investors: This is a major source of funding for start-ups that have a strong potential for growth. However, venture investors insist on retaining part ownership in new businesses that they fund. Formal institutional venture funds are usually limited partnerships in which passive limited partners, such as retirement funds, supply most of the money. These funds have large amounts of money to invest. However, the process of obtaining venture capital is very slow. Several books, such as Galantes Venture Capital & Private Equity Directory, give detailed information on these funds. Corporate venture funds are large corporations with funds for investing in new ventures. These often provide technical and management expertise in addition to large monetary investments. However, these funds are slow to
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access compared to other sources of funds. Also, they often seek to gain control of new businesses. Angel investors tend to be successful entrepreneurs who have capital that they are willing to risk. They often insist on being active advisers to businesses they support. Angel funds are quicker to access than corporate venture funds, and they are more likely to be invested in a start-up operation. But they may make smaller individual investments and have fewer contacts in the banking community. Government programs: Many national and regional governments offer programs to encourage small- and medium-sized businesses. In the United States, the Small Business Administration (SBA) assists small firms by acting as a guarantor of loans made by private institutions for borrowers who may not otherwise qualify for a commercial loan.

Intellectual Property: A Valuable Business Asset

Intellectual property is a valuable asset for an entrepreneur. It consists of certain intellectual creations by entrepreneurs or their staffs that have commercial value and are given legal property rights. Examples of such creations are a new product and its name, a new method, a new process, a new promotional scheme, and a new design. A fence or a lock cannot protect these intangible assets. Instead, patents, copyrights, and trademarks are used to prevent competitors from benefiting from an individuals or firms ideas. Protecting intellectual property is a practical business decision. The time and money invested in perfecting an idea might be wasted if others could copy it. Competitors could charge a lower price because they did not incur the startup costs. The purpose of intellectual property law is to encourage innovation by giving creators time to profit from their new ideas and to recover development costs. Intellectual property rights can be bought, sold, licensed, or given away freely. Some businesses have made millions of dollars by licensing or selling their patents or trademarks. Every entrepreneur should be aware of intellectual property rights in order to protect these assets in a world of global markets. An intellectual property lawyer can provide information and advice. The main forms of intellectual property rights are: Patents: A patent grants an inventor the right to exclude others from making, using, offering for sale, or selling an invention for a fixed period of time - in most

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countries, for up to 20 years. When the time period ends, the patent goes into the public domain and anyone may use it. Copyright: Copyrights protect original creative works of authors, composers, and others. In general, a copyright does not protect the idea itself, but only the form in which it appears - from sound recordings to books, computer programs, or architecture. The owner of copyrighted material has the exclusive right to reproduce the work, prepare derivative works, distribute copies of the work, or perform or display the work publicly. Trade Secrets: Trade secrets consist of knowledge that is kept secret in order to gain an advantage in business. Customer lists, sources of supply of scarce materials, or sources of supply with faster delivery or lower prices may be trade secrets, explains Joseph S. Iandiorio, the founding partner of Iandiorio and Teska, an intellectual property law firm. Certainly, secret processes, formulas, techniques, manufacturing know-how, advertising schemes, marketing programs, and business plans are all protectable. Trade secrets are usually protected by contracts and non-disclosure agreements. No other legal form of protection exists. The most famous trade secret is the formula for Coca-Cola, which is more than 100 years old. Trade secrets are valid only if the information has not been revealed. There is no protection against discovery by fair means such as accidental disclosure, reverse engineering, or independent invention. Trademarks: A trademark protects a symbol, word, or design, used individually or in combination, to indicate the source of goods and to distinguish them from goods produced by others. For example, Apple Computer uses a picture of an apple with a bite out of it and the symbol () which means registered trademark. A service mark similarly identifies the source of a service. Trademarks and service marks give a business the right to prevent others from using a confusingly similar mark. In most countries, trademarks must be registered to be enforceable and renewed to remain in force. However, they can be renewed endlessly. Consumers use marks to find a specific firms goods that they see as particularly desirable for example, Barbie dolls or Toyota automobiles. Unlike copyrights or patents, which expire, many businesss trademarks become more valuable over time.

The Strengths of Small Business

Any entrepreneur who is contemplating a new venture should examine the strengths of small businesses as compared to large ones and make the most of those competitive advantages. With careful planning, an entrepreneur can lessen

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the advantages of the large business vis--vis his operation and thereby increase his chances for success. The strengths of large businesses are well documented. They have greater financial resources than small firms and therefore can offer a full product line and invest in product development and marketing. They benefit from economies of scale because they manufacture large quantities of products, resulting in lower costs and potentially lower prices. Many large firms have the credibility that a well-known name provides and the support of a large organization. How can a small firm possibly compete? In general, small start-up firms have greater flexibility than larger firms and the capacity to respond promptly to industry or community developments. They are able to innovate and create new products and services more rapidly and creatively than larger companies that are mired in bureaucracy. Whether reacting to changes in fashion, demographics, or a competitors advertising, a small firm usually can make decisions in days - not months or years. A small firm has the ability to modify its products or services in response to unique customer needs. The average entrepreneur or manager of a small business knows his customer base far better than one in a large company. If a modification in the products or services offered or even the businesss hours of operation would better serve the customers, it is possible for a small firm to make changes. Customers can even have a role in product development. Another strength comes from the involvement of highly skilled personnel in all aspects of a start-up business. In particular, start-ups benefit from having senior partners or managers working on tasks below their highest skill level. For example, when entrepreneur William J. Stolze helped start RF Communications in 1961 in Rochester, New York, three of the founders came from the huge corporation General Dynamics, where they held senior marketing and engineering positions. In the new venture, the marketing expert had the title president but actually worked to get orders. The senior engineers were no longer supervisors; instead, they were designing products. As Stolze said in his book Start Up, In most start-ups that I know of, the key managers have stepped back from much more responsible positions in larger companies, and this gives the new company an immense competitive advantage. Another strength of a start-up is that the people involved the entrepreneur, any partners, advisers, employees, or even family members have a passionate, almost compulsive, desire to succeed. This makes them work harder and better. Finally, many small businesses and start-up ventures have an intangible quality that comes from people who are fully engaged and doing what they want to do. This is the entrepreneurial spirit, the atmosphere of fun and excitement that is
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generated when people work together to create an opportunity for greater success than is otherwise available. This can attract workers and inspire them to do their best.

Entrepreneurship Aids the Economy

Most economists agree that entrepreneurship is essential to the vitality of any economy, developed or developing. Entrepreneurs create new businesses, generating jobs for themselves and those they employ. In many cases, entrepreneurial activity increases competition and, with technological or operational changes, it can increase productivity as well. In the United States, for example, small businesses provide approximately 75 percent of the net new jobs added to the American economy each year and represent over 99 percent of all U.S. employers. The small businesses in the United States are often ones created by self-employed entrepreneurs. Entrepreneurs give security to other people; they are the generators of social welfare, Carl J. Schramm, president and chief executive officer of Ewing Marion Kauffman Foundation, said in February 2007. The foundation is dedicated to fostering entrepreneurship, and Schramm is one of the worlds leading experts in this field. Others agree that the benefits of small businesses go beyond income. Hector V. Baretto, administrator of the U.S. Small Business Administration (SBA), explains, Small businesses broaden the base of participation in society, create jobs, decentralize economic power, and give people a stake in the future. Entrepreneurs innovate and innovation is a central ingredient in economic growth. As Peter Drucker said, The entrepreneur always searches for change, responds to it, and exploits it as an opportunity. Entrepreneurs are responsible for the commercial introduction of many new products and services, and for opening new markets. A look at recent history shows that entrepreneurs were essential to many of the most significant innovations, ones that revolutionized how people live and work. From the automobile to the airplane to personal computers individuals with dreams and determination developed these commercial advances. Small firms also are more likely than large companies to produce specialty goods and services and custom-demand items. As Schramm has suggested, entrepreneurs provide consumers with goods and services for needs they didnt even know they had. Innovations improve the quality of life by multiplying consumers choices. They enrich peoples lives in numerous ways making life easier, improving
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communications, providing new forms of entertainment, and improving health care, to name a few. Small firms in the United States, for instance, innovate far more than large ones do. According to the Small Business Administration, small technology companies produce nearly 13 times more patents per employee than large firms. They represent one-third of all companies in possession of 15 or more patents. According to the 2006 Summary Results of the Global Entrepreneurship Monitor (GEM) project, Regardless of the level of development and firm size, entrepreneurial behavior remains a crucial engine of innovation and growth for the economy and for individual companies since, by definition, it implies attention and willingness to take advantage of unexploited opportunities. The GEM project is a multi-country study of entrepreneurship and economic growth. Founded and sponsored by Babson College (USA) and the London Business School in 1999, the study included 42 countries by 2006. International and regional institutions, such as the United Nations and the Organization for Economic Cooperation and Development, agree that entrepreneurs can play a crucial role in mobilizing resources and promoting economic growth and socio-economic development. This is particularly true in the developing world, where successful small businesses are primary engines of job creation and poverty reduction. For all of these reasons, governments may wish to pursue policies that encourage entrepreneurship.

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Business Plan

TARRKA VIHAR ------- A Natural Food Restaurant --------

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Plan Outline

1.0 Executive Summary o Objectives o Mission 2.0 Company Summary 3.0 Services 4.0 Market Analysis Summary 5.0 Strategy and Implementation Summary 6.0 Web Plan Summary 7.0 Management Summary 8.0 Financial Plan Appendix

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1. Executive Summary
This restaurant business plan is for TARRKA VIHAR, a new medium-sized restaurant located in a Mayur Vihar 1,New Delhi 110091. TARRKA VIHAR emphasis will be on organic and creative Indian ethnic food. An emphasis on organic ingredients is based on TARRKA dedication to sustainable development. Additionally, the restaurant procures local foods when possible, reducing their dependence on fossil fuels used for transportation. Additionally, the restaurant cooking staffs are from north as well as south region of country so provide delicious food of both regions. Services and Products TARRKA VIHAR provides an unmet dining experience. All patrons receive excellent customer service, encouraging them to return. The menu offerings are fast, simple, healthy, and easy to prepare. The emphasis is on reintroducing the local healthy options to the city life. Being organic, is just another value addition to it. Competitive Edge The customer experience is extremely important as an effective way of distinguishing TARRKA VIHAR. Having such a good experience will encourage repeat business. The second competitive edge is TARRKA VIHAR's offering of fast, healthy food Customers With the growth trend towards specialty restaurant TARKA VIHAR believes that it has a strong market. Its main target audience will be rich hippies who naturally desire organic foods as well as ethnic cuisine, estimated to be at 10000 in numbers. The second group that will be targeted is young nuclear families with double income, which are growing at an annual rate of 12% with 20000 potential customers. The last group which is particularly interested in the menu's healthy offerings is dieting women which number 40000. Management TARRKA VIHAR has assembled a strong management team. Abhijeet kumar Bimal will be the general manager. Bimal has extensive management experience of organizations ranging from six to 45 people. Awaneet Kumar will be responsible for all of the finance and accounting functions. Chanda has seven years experience in hospitality. Lastly,TARRKA VIHAR has chefs Gautam Singh and Dhiraj Kumar who will be responsible for the back-end production of the venture. Collectively they have over 3 years of experience.

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Sales have been forecasted to be approx 80829, 255156 and 475163 for years first, second and third. Net profit will be 14.5% for year three YEAR SALES COST OF SERVICE PROFIT % PROFIT 2012 80597 84829 -30278 -35.693 2013 255156 170680 2165 1.268456 2014 475163 248070 51456 20.74253

Projected sales
600000 500000 400000 300000 200000 100000 0 -100000 2012 2013 2014 SALES COST OF SERVICE PROFIT

Objective
To become the premier fast-casual restaurant in every market entered. To open a new store every 12 months. To offer high-quality food and a wonderful experience at reasonable prices.

Mission TARRKA VIHAR's mission is to become the premier fast-casual dining experience. This will be accomplished by offering an unprecedented experience coupled with great food and reasonable prices. TARRKA VIHAR is a trendy and healthy place to eat, combining an intriguing atmosphere with excellent, interesting food that is also very good for the people who we want fair profit for the owners, and a rewarding place to work for the employees, which is reflected in their service delivery
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Keys to Success
Offer simple, delicious menu items. Treat every customer as if they are the only customer. Design and employ strict financial controls.

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2. Company Summary
TARRKA VIHAR is a single-unit, medium-sized restaurant. We focus on organic food. The restaurant will be located in a prime location of Mayur Vihar 1. Most important to us is our financial success, but we believe this will be achieved by offering high-quality service and extremely clean, non-greasy food with interesting twists. TARRKA VIHAR is a new restaurant that has purchased the assets of an existing restaurant. Company Ownership It has been formed as a Penta Corporation, the founder and President is Abhijeet Bimal. Start-up Summary

start up funding
160000 140000 120000 100000

In Rs

80000 60000 40000 20000 0 ASSETS LOANS INVESTMENT EXPENSES

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Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Investor 1 Investor 2 Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities Rs 3,000 Rs 138,000 Rs 141,000 Rs 50,000 Rs 88,000 Rs 0 Rs 88,000 Rs 138,000

Rs 0 Rs 100,000 Rs 1,000 Rs 0 Rs 101,000

Rs 25,000 Rs 15,000 Rs 0 Rs 40,000 (Rs 3,000) Rs 37,000 Rs 138,000 Rs 141,000

Start-up Requirements Start-up Expenses Legal Stationery etc. Other Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements

Rs 1,000 Rs 1,000 Rs 1,000 Rs 3,000 Rs 88,000 Rs 50,000 Rs 0 Rs 138,000 Rs 141,000

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3. Service
The Menu The menu is going to be extremely simple but changing every day. We will keep a small group of constants on the menu and then feature a chef's recommendation that we plan to have 85% of meals ordering. This will help us to reduce waste and plan ingredients and purchasing. TARRKA VIHAR provides an unmet dining experience in the fast-casual niche of the restaurant industry. All patrons receive benchmarked customer attention, encouraging them to return. The menu offerings are fast, simple, healthy, and easy to prepare. All dishes have a signature pineapple slice for decoration and eating pleasure. All the meats are marinated in a sweet soy ginger sauce overnight. STARTERS / APPETIZERS
Bhindhi Jaipuri - cauliflower with potatoes cooked together with onions, spices

and tomatoes Cauliflower Pakora Chicken Lollipop chicken drumsticks in sweet tangy sauce Chilli Babycorn Finger Fish - deep fried crumb fish finger, served with tartar sauce Fried Chicken Wings served with garlic and sauce Ginger Fish cubes of fish in a ginger flavored sauce Onion Pakora sliced onion with green chilli coated in chick pea flour crisp fried Paneer Finger cream fried paneer marinated in yoghurt mixed in Indian spices and served with tartar sauce Spring Rolls served with garlic sauce Vegetable Cutlet crisp fried pattie, stuffed with assorted mixed vegetable and potato Vegetable Samosa assorted mixed vegetables in a crisp pastry

SALAD / SOUPS
Attukal Soup a spicy soup of bone of leg of lamb simmered with peppercorn

and coriander. Chicken Rasam/Soup a spicy soup of chicken with bones simmered with peppercorn, coriander and mint.
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 Chicken Tikka Salad sliced boneless chicken tikka with chopped onion and

mint leaves Crme Soup Tomato, Chicken, Mushroom or Vegetable Dhall Surba delicately spiced lentil soup with fresh ground pepper Hot and Sour Soup veg or non-veg Jahangri Surba mildy spiced mutton soup with garlic and fresh herbs Manjog Soup veg or non-veg Mulagtawny Soup Indian curry soup served with lime slices Sweet Corn Soup veg or non-veg Tomato Surba a tangy light tomato soup flavored with authentic Indian spices garnished with fresh coriander. Vegetable Samosa / Cutlet

VEGETABLES
Aloo Capsicum green bell pepper and potatoes cooked in a spicy blended sauce Aloo Dum Kashmiri cubes of potato cooked in rich tomato butter gravy. Aloo Gobi cauliflower and baked potatoes cooked in curry sauce Aloo Gobi Adreki potato and cauliflower. Aloo Jeera sliced potatoes cooked in a mild tomato and onion masala Aloo Palak fresh spinach and potatoes cooked with herbs and spices Aloo Simla Mirch pieces of potato and capsicum cooked in Indian spices dry. Baingan Bartha eggplant cooked in clay pot oven and minced mixed with

tomato and onion gravy. Bariyala Bhindi whole ladies fingers cooked with Indian herbal spice and flavored with nuts and cooked dry. Bhindhi Masala fresh okra sauted with chopped onions, tomatoes, mild spices and herbs. Brinjal Salan aubergines cooked in light creamy masala sauce Chettinad Kuttu choice of vegetables cooked with green lentil and South Indian herbs Chettinad Potato Fry Dhal Fry green lentils cooked on a slow fire with onion and tomato Dhal Makhani assortment of lentil cooked with home style herbs and spices Dhal Tadka yellow dhal. Green Dhal Sambhar mixed vegetable curry cooked in green dhall South Indian style ideal for rice based pancakes. Green Peas Masala Kadhai Paneer - pieces of home made cheese, marinated and sauteed with capsicum in a Kadai
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 Kaju Mutter Paneer Cottage cheese and green peas. Karaikudi Kalaan - a Keralite dish made of yogurt, coconut and one vegetable Malai Kofta Curry potato and cottage cheese ball cooked in rich cashew nut

gravy garnished with dry fruits and cream. Mushroom Masala Mushrooms and Peas Masala Navrathana Korma assorted supreme vegetables and fruits cooked in creamy gravy. Palak Paneer fried cottage cheese cooked in spinach gravy. Paneer Butter Masala fried cottage cheese cooked in tomato butter gravy. Paneer Pasanda cottage cheese stuffed with dried fruits and nuts, deep fried and cooked in onion gravy. Sambhar mixed vegetable curry cooked in green dhall South Indian style ideal for rice based pancakes. Veg Curry Poriyal - sauceless vegetable curry Vegetable Khajana classic north Indian dish with bell peppers, vegetables and cashew nuts cooked in masala. Vegetable Makhanwala - vegetable simmered in a rich tomato gravy Vegetable Sha E Khorma mixed vegetables cooked in rich cashew nut gravy and garnished with dry fruits, nuts and cream.

Ethnic Ingredients and Recipes our chef will have great latitude in designing and producing menu offerings from many different regional cultures. We will endeavor to procure all the traditional, authentic ingredients necessary to hold true to these varied and interesting cultural recipes.

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Interior Accoutrements People need to keep life interesting, and our artwork will reflect the world influences that are core to the attitude of the TARRKA VIHAR chef.

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4. Market Analysis Summary

Target Market Segment Strategy TARRKA VIHAR will be focusing on families and individuals for several specific reasons. Most dinner services are for families. As more households become two income families, the adults have less time to prepare meals. Going out to dinner eliminates the need to prepare a meal and offers time to catch up with each other. The lunch business is driven by individuals. Many go out to lunch to get out of the work setting. Others have business meetings at lunch. This creates a large market of potential customers that is especially attractive. Market Segmentation The market has been segmented into two distinct groups. Families: forecasted to contribute 67% of the dinner time revenue.
Have 2.4 children 25K in household income 67% have an undergraduate degree 26% have graduate level coursework Go out to eat 1.6 times a week Dinners out are used as a meal replacement since neither parent has time

to cook a meal at home Sophisticated families that live within three miles of the site Individuals: comprise 69% of the lunch time revenue.
Ages 19-47 Individual income average is 30,000 72% of the individuals over 23 have an graduate education Eat out 2.3 times a week Young professionals that live near the location Shoppers who patronize the nearby high rent stores

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Market Analysis 2007 Potential Customers Families Individuals Total Growth 9% 8% 8.45% 26,585 28,978 33,654 36,346 60,239 65,324 31,586 39,254 70,840 34,429 42,394 76,823 37,528 45,786 83,314 2008 2009 2010 2011 CAGR 9.00% 8.00% 8.45%

Service Business Analysis

TARRKA VIHAR operates within the large restaurant industry. While the

industry has its upswings and downturns, the variance is less than the economy itself. People need to eat, they can eat in and save money, but the convenience of dining out creates a significant incentive. This is not to suggest that restaurants are recession proof, they are less affected by the general state of the economy. Within the restaurant industry there are several different segments:
Fast food: McDonalds, KFC Pizza: delivery and dine in Buffets: all you can eat Lounges: combining food and alcohol Fine dining: typically at the highest price point Fast-casual: combination of fast service and sit down dining

TARRKA VIHAR operates within the relatively new fast-casual segment. This segment has grown in response to the increased need for quality food, in a sit down environment, but with fast service. This is a recognition that many of the customers are dining out because they do not have the time to cook themselves. Competition and Buying Patterns TARRKA VIHAR faces competition from a variety of competitors:
Fast food: Offers the convenience of fast service. The food product is not

competitive, but people are often willing to sacrifice quality for convenience. Take out: Take away service allows a customer to enjoy already prepared food in their home.
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 Sit down dining: For customers that have the time to have a leisurely

meal. Food service takes longer and the menu options are more extensive. Sandwich shops: Considered to be part of the fast food segment, they are a direct competitor of TARRKA VIHAR as their food product is healthier than the fried alternatives of fast food. This competition comes primarily during lunch hours. Grocery markets: Serving prepared foods. Customer buying patterns typically revolve around several different factors:
Location: The restaurant is located near to work or home. Convenience: People eat out as it is quicker than preparing a meal

themselves. Factors of convenience relative to sit down restaurants are the time it takes to be seated, served, and the hours of operation. Quality: The menu items must meet minimum levels of quality for people to be willing to spend money on the food, particularly when there are so many different options available.

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5. Strategy and Implementation Summary TARRKA VIHAR will leverage its two-pronged competitive edge to quickly gain
market share. The competitive edge consists of an experience focus (ensuring that the customer's experience is top notch) and offering a fast, healthy diningout alternative. TARRKA VIHAR's marketing effort will focus on communicating the message that it offers a convenient, healthy dining experience. This will be accomplished through a variety of ways to be detailed in the Marketing Strategy section. TARRKA VIHAR's sales strategy will be an effort to convert potential and first-time customers into long-term customers. Competitive Edge TARRKA VIHAR will rely on a two part competitive advantage to help it become the premier fast-casual offering.
The importance of the experience. With so many restaurants and prepared

food being offered at grocery markets, the customer experience becomes extremely important as an effective way of distinguishing offerings. When a customer has a good experience at a restaurant, there is a significant chance that they will become a repeat customer. It is this experience that remains in the customer's mind well after they have consumed all of their food. This memory is what is communicated to their friends and colleagues. Fast, healthy food alternative. There is a huge market demand for fast, convenient food that can be consumed without dietary concerns. TARRKA VIHAR offers exactly this, vegetables and meats that are grilled with or without healthy marinades and sauces that add flavor not fat. White or brown rice is offered as the starch of the meal. In addition to the plentiful amount of vegetables offered, green salads are also available. Marketing Strategy The goal of the marketing strategy will be to raise awareness levels regarding TARRKA VIHAR and the offerings and value. The message will be that TARRKA VIHAR is a convenient, healthy fast-casual alternative restaurant. TARRKA VIHAR will employ several marketing outlets:
Print media advertising: Through leaflet inside the newspaper

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 Flyers: Passed around to local businesses with coupons attached to

introduce the community to TARRKA VIHAR and creating an economic incentive to try it. Entertainment book coupons: Presented within the first eight months of entering a market. The effectiveness of these books diminishes after approximately eight months and TARRKA VIHAR will turn to more cost effective marketing expenditures. Sales Strategy The strategy of the sales effort will be to convert potential and first-time customers into long-term customers. This will be accomplished using several techniques.
Punch cards: After 10 meals purchased, the 11th will be free. Punch cards

are an effective way of increasing sales from a specific customer. They are effective because they provide the customer with a sense of additional value, it gives the feeling of value with the free entree. People love getting something beyond what they pay for and the punch card provides this. Concentrating on the customer's experience: Customers will not come back if they are not happy with their dining experience. All employees go through a comprehensive training process that includes training on how to offer the customer the finest experience. The employees are empowered to resolve issues and are encouraged to seek assistance from the manager for a conflict that they are unable to resolve. Sales Forecast Sales will be modest during the first few months but will grow incrementally. The second store is forecasted to open on month 13, subsequent new stores will open at the earlier indicated 12 month intervals. Please note that the sales forecast for the first year reflects store number one. For years two and three the sales forecasts represent the company wide sales figures. Please review the following table and charts for additional detail of the sales forecasts, broken down in monthly and annual increments.

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120000 100000 80000 60000 40000 20000 0 INDIVIDUAL FAMILIES

Rs. 500,000.00 Rs. 400,000.00 Rs. 300,000.00 Individuals Rs. 200,000.00 Rs. 100,000.00 Rs. 2012 2013 2014 Families

Sales Forecast 2012 Sales Families Individuals Total Sales Direct Cost of Sales Families Individuals Subtotal Direct Cost of Sales Rs. 13,508.00 Rs. 10,671.00 Rs. 24,179.00 Rs. 45,026.00 Rs. 35,571.00 Rs. 80,597.00 2012 Rs. 42,764.00 Rs. 33,783.00 Rs. 76,547.00 Rs. 142,545.00 Rs. 112,611.00 Rs. 255,156.00 2013 Rs. Rs. Rs. 79,636.00 62,913.00 142,549.00 Rs. Rs. Rs. 265,454.00 209,709.00 475,163.00 2014 2013 2014

41 | P a g e

Milestones TARRKA VIHAR has identified four milestones for the organization. The milestones were chosen to develop achievable yet lofty performance goals for TARRKA VIHAR. The milestones were picked to be easy to measure. The following table offers detailed information regarding the milestones.
Milestones Milestone Completion of the business plan Opening of the second store Profitability Expansion into a new market Totals Start Date 1/10/2011 1/2/2012 1/1/2012 1/1/2012 End Date 31/12/2011 30/1/2013 30/4/2014 30/12/2014 Budget 0 0 0 0 0 Manager Abhijeet Abhijeet Abhijeet Abhijeet Department Operations Business development Accounting Business development

42 | P a g e

6. Web Plan Summary

TARRKA VIHAR will have a Web presence with a simple, user-friendly website. The website will be used for menu information, contact and location information, as well as background for the story of TARRKA. Currently, TARRKA VIHAR has no plans to offer online menu ordering. TARRKA VIHAR will reconsider this decision at a later date if it appears that customer demand requests this feature. Website Marketing Strategy The website will rely on two methods of marketing as a means for developing awareness of the site and increasing the number of visitors.
Search engine submission: The website will be submitted to various search

engines. Printed material: TARRKA VIHAR will reference the website address on all printed material that is passed out including menus, business cards, and advertising media. Development Requirements TARRKA VIHAR has identified a skilled Web designer to design and develop the website. This programmer has impressive credentials from the State of Oregon Web development department. TARRKA VIHAR has negotiated a below market bid for the website.

43 | P a g e

Before the launching of restaurant website interface

After the launching

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7 .Management Summary
Abhijeet Bimal is the driving force behind TARRKA VIHAR. Bimal has spent the last seven years in the restaurant industry. Bimal received his post graduate degree, a dual major of marketing and Finance from Business School of Delhi.
Personnel Plan
Bimal: New site searches, build out project management, accounting, and grill

operation and marketing process.

Cook: Food preparation and cooking. Misc.: Busing, dishwashing, cleaning, and other assorted activities. Manager: Assigned to each store.

Personnel Plan Abhijeet Bimal Cook Manager Misc. Total People Total Payroll 2012 24,000 12,650 0 9,900 3 46,550 2013 30,000 27,600 20,000 21,600 6 99,200 2014 34,000 41,400 40,000 32,400 9 147,800

45 | P a g e

8. Financial Plan
The following sections will outline important financial information. Important Assumptions The following section will detail important Financial Assumptions.
General Assumptions 2012 Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 1 10.00% 10.00% 30.00% 0 10.00% 10.00% 30.00% 0 2013 2 10.00% 10.00% 30.00% 0 2014 3

Projected Cash Flow The following chart and table will indicate Projected Cash Flow.

46 | P a g e

Pro Forma Cash Flow Rs. Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 103,010.00 Rs. Rs. 7,586.00 12,575.00 5,500.00 Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 314,604.00 Rs. Rs. 15,552.00 28,127.00 75,000.00 7,500.00 5,500.00 Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 477,999.00 Rs. 72,164.00 75,000.00 7,500.00 5,500.00 Rs. Rs. 80,597.00 80,597.00 Rs. 255,156.00 Rs. 255,156.00 Rs. 475,163.00 Rs. 475,163.00 2,003.00 Rs. 2,004.00 Rs. 2,005.00

Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 10,000.00 2,003.00 Rs. 110,597.00 20,000.00

Rs. Rs.

75,000.00 2,004.00

Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 550,163.00 Rs. 2,005.00 75,000.00

Rs. Rs. Rs. Rs. Rs. Rs. 330,156.00 Rs.

Rs. Rs. Rs.

46,550.00 50,960.00 97,510.00

Rs.

99,200.00

Rs. 147,800.00 Rs. 242,199.00 Rs. 389,999.00

Rs. 127,404.00 Rs. 226,604.00

Rs. 100,291.00

47 | P a g e

Break-even Analysis The Break-even Analysis indicates that 10,099 will be needed in monthly revenue to reach the break-even point.
4000 3000 2000 1000 0 -1000 -2000

4000

6000

8000

10000

12000

14000

16000

-3000
-4000
Break-even Analysis Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost 30% 7,069 10,099

Projected Profit and Loss The following table indicates Projected Profit and Loss

PROFIT YEARLY
60000 40000 20000

0
-20000 -40000 PROFIT 2012 2013 2014

48 | P a g e

GROSS MARGIN
350000

300000
250000 200000 150000 100000 50000 0 2012 2013 2014 GROSS MARGIN

Pro Forma Profit and Loss 2012 Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Sales and Marketing and Other Expenses Depreciation Rent Utilities Insurance Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales Rs. 46,550.00 Rs. 3,600.00 Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 99,200.00 7,200.00 20,000.00 18,000.00 4,800.00 4,800.00 14,880.00 1,800.00 Rs. 147,800.00 Rs. Rs. Rs. Rs. Rs. Rs. Rs. 10,000.00 24,000.00 27,000.00 7,200.00 7,200.00 22,170.00 2,700.00 Rs. 80,597.00 Rs. 24,179.00 Rs. Rs. 24,179.00 Rs. 56,418.00 0.70 2013 Rs. 255,156.00 Rs. Rs. Rs. 76,547.00 76,547.00 2014 Rs. 475,163.00 Rs. 142,549.00 Rs. Rs. 142,549.00 Rs. 332,614.00 0.70 -

Rs. 178,609.00 0.70

Rs. 12,996.00 Rs. Rs. Rs. Rs. Rs. 9,000.00 2,400.00 2,400.00 6,983.00 900.00

Rs. 84,829.00 Rs. -28,411.00 Rs. -15,415.00 Rs. Rs. Rs. -30,278.00 Rs. -0.38 1,867.00 -

Rs. 170,680.00 Rs. Rs. Rs. Rs. Rs. Rs. 7,929.00 27,929.00 4,836.00 928.00 2,165.00 0.01

Rs. 248,070.00 Rs. 84,544.00

Rs. 108,544.00 Rs. Rs. Rs. Rs. 11,036.00 22,052.00 51,456.00 0.11

49 | P a g e

Projected Balance Sheet The following table will indicate the Projected Balance Sheet
Pro Forma Balance Sheet 2012 Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth Rs. 4,610.00 Rs. 10,996.00 Rs. Rs. Rs. 19,996.00 Rs. 70,358.00 Rs. 90,354.00 Rs. 10,000.00 Rs. -19,237.00 Rs. Rs. 2,165.00 -7,071.00 9,000.00 Rs. Rs. Rs. Rs. 24,205.00 20,705.00 3,500.00 Rs. 22,141.00 Rs. 21,985.00 Rs. 156.00 Rs. 97,141.00 Rs. 41,985.00 Rs. 55,156.00 Rs. 83,283.00 Rs. 2,004.00 Rs. 172,141.00 Rs. 65,985.00 Rs. 12,575.00 Rs. Rs. 12,575.00 Rs. 28,127.00 Rs. Rs. 28,127.00 Rs. 100,291.00 Rs. Rs. 100,291.00 2013 2014

Rs. 106,156.00 Rs. 206,447.00 Rs. 2,005.00

Rs. 12,731.00 Rs. 2,003.00

Rs. 14,500.00 Rs. Rs. 19,110.00 Rs. 2,858.00

Rs. 137,858.00 Rs. 162,063.00 Rs. 10,000.00

Rs. 21,968.00 Rs. 10,000.00 Rs. 11,041.00 Rs. -30,278.00 Rs. -9,237.00

Rs. -17,071.00 Rs. Rs. 51,456.00 44,384.00

Rs. 12,731.00 Rs. -9,237.00

Rs. 83,283.00 Rs. -7,071.00

Rs. 206,447.00 Rs. 44,384.00

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Business Ratios The following table indicates common Business Ratios specific to TARRKA VIHAR as well as industry ratios.

Ratio Analysis Sales Growth Percent of Total Assets Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab. to Liab. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout 2012 -30.19% 0.00% 98.77% 1.23% 100.00% 150.10% 22.45% 172.55% -72.55% 100.00% 70.00% 105.61% 0.00% -35.25% 0.66 0.66 172.55% 327.79% -237.82% 2003 -37.57% 0.00% 11.13 29 6.33 0.00 0.87 (6,535) -15.22 0.16 150% 0.66 0.00 0.00 2013 216.58% 0.00% 33.77% 66.23% 100.00% 24.01% 84.48% 108.49% -8.49% 100.00% 70.00% 70.92% 0.00% 3.11% 1.41 1.41 108.49% -43.75% 3.71% 2004 0.85% 0.00% 12.17 21 3.06 0.00 0.22 8,131 1.64 0.33 24% 1.41 0.00 0.00 2014 86.22% 0.00% 48.58% 51.42% 100.00% 11.72% 66.78% 78.50% 21.50% 100.00% 70.00% 60.97% 0.00% 17.79% 4.14 4.14 78.50% 165.62% 35.61% 2005 10.83% 115.93% 12.17 23 2.30 3.65 0.15 76,086 7.66 0.43 12% 4.14 10.71 0.00 Industry Profile 6.96% 28.39% 37.68% 62.32% 100.00% 19.17% 29.21% 48.38% 51.62% 100.00% 59.31% 39.09% 2.75% 1.59% 1.26 0.87 3.27% 54.38% 7.17% n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a

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Sales Forecast Feb Jan Sales Families 0% Rs. Individuals 0% Rs. Total Sales Rs. Direct Cost of Sales Families Rs. Individuals Rs. Subtotal Direct Cost of Sales Rs. 816 869 877 924 948 1,034 1,100 1,110 1,169 1,199 Jan Rs. 1,242.00 Rs. 981.00 Rs. 2,224.00 Rs. 1,261.00 Rs. 996.00 Rs. 2,256.00 Rs. 1,301.00 Rs. 1,028.00 Rs. 2,328.00 Rs. 1,336.00 Rs. 1,056.00 Rs. 2,392.00 Rs. 1,364.00 Rs. 1,077.00 Rs. 2,441.00 Rs. 1,392.00 Rs. 1,100.00 Rs. 2,492.00 6,167 Feb 6,560 Mar 6,625 Apr 6,977 May 7,156 Jun 2,722 2,895 2,924 3,079 3,158 3,445 3,665 3,701 3,898 3,998 Rs. 4,141.00 Rs. 3,271.00 Rs. 7,412.00 Jul Rs. 4,202.00 Rs. 3,320.00 Rs. 7,522.00 Aug Rs. 4,336.00 Rs. 3,425.00 Rs. 7,761.00 Sep Rs. 4,454.00 Rs. 3,519.00 Rs. 7,973.00 Oct Rs. 4,545.00 Rs. 3,591.00 Rs. 8,136.00 Nov Rs. 4,641.00 Rs. 3,666.00 Rs. 8,307.00 Dec Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1,850

1,968

1,987

2,093

2,147

Personnel plan
Jan Abhijeet Cook Rs. Rs. Rs. Rs. 2,000 Feb 2,000 1,150 Rs. Rs. 1 2,000 Mar 2,000 1,150 Rs. 900 3 4,050 900 3 4,050 Apr 2,000 1,150 Rs. 900 3 4,050 May 2,000 1,150 Rs. 900 3 4,050 Jun 2,000 1,150 Rs. 900 3 4,050 Jul 2,000 1,150 Rs. 900 3 4,050 Aug 2,000 1,150 Rs. 900 3 4,050 Sep 2,000 1,150 Rs. 900 3 4,050 Oct 2,000 1,150 Rs. 900 3 4,050 Nov 2,000 1,150 Rs. 900 3 4,050 Dec 2,000 1,150 Rs. 900 3 4,050

Manager Misc. Total People Total Payroll

General Assumption
Jan Plan Month Current Interest Rate Longterm Interest Rate Tax Rate Other 1 10.00% Feb 2 10.00% Mar 3 10.00% Apr 4 10.00% May 5 10.00% Jun 6 10.00% Jul 7 10.00% Aug 8 10.00% Sep 9 10.00% Oct 10 10.00% Nov 11 10.00% Dec 12 10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

30.00% 0

30.00% 0

30.00% 0

30.00% 0

30.00% 0

30.00% 0

30.00% 0

30.00% 0

30.00% 0

30.00% 0

30.00% 0

30.00% 0

52 | P a g e

APPENDIX
Pro Forma Profit and Loss Jan Sales Rs. Rs. Rs. Rs. Rs. Rs. Feb Rs. 6,167.0 0 Rs. 1,850.0 0 Rs. Rs. 1,850.0 0 Rs. 4,317.0 0 Rs. 0.70 Mar Rs. 6,560.0 0 Rs. 1,968.0 0 Rs. Rs. 1,968.0 0 Rs. 4,592.0 0 Rs. 0.70 Apr Rs. 6,625.0 0 Rs. 1,987.0 0 Rs. Rs. 1,987.0 0 Rs. 4,637.0 0 Rs. 0.70 May Rs. 6,977.0 0 Rs. 2,093.0 0 Rs. Rs. 2,093.0 0 Rs. 4,884.0 0 Rs. 0.70 Jun Rs. 7,156.0 0 Rs. 2,147.0 0 Rs. Rs. 2,147.0 0 Rs. 5,009.0 0 Rs. 0.70 Jul Rs. 7,412.0 0 Rs. 2,224.0 0 Rs. Rs. 2,224.0 0 Rs. 5,189.0 0 Rs. 0.70 Aug Rs. 7,522.0 0 Rs. 2,256.0 0 Rs. Rs. 2,256.0 0 Rs. 5,265.0 0 Rs. 0.70 Sep Rs. 7,761.0 0 Rs. 2,328.0 0 Rs. Rs. 2,328.0 0 Rs. 5,433.0 0 Rs. 0.70 Oct Rs. 7,973.0 0 Rs. 2,392.0 0 Rs. Rs. 2,392.0 0 Rs. 5,581.0 0 Rs. 0.70 Nov Rs. 8,136.0 0 Rs. 2,441.0 0 Rs. Rs. 2,441.0 0 Rs. 5,695.0 0 Rs. 0.70 Dec Rs. 8,307.0 0 Rs. 2,492.0 0 Rs. Rs. 2,492.0 0 Rs. 5,815.0 0 Rs. 0.70

Direct Cost of Sales Other Costs of Sales Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll

Sales and Marketing and Other Expenses Depreciatio n Rent Utilities Insurance Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Rs. 0.15

Rs. 2,000.0 0 Rs. 300.00

Rs. 4,050.0 0 Rs. 300.00

Rs. 4,050.0 0 Rs. 300.00

Rs. 4,050.0 0 Rs. 300.00

Rs. 4,050.0 0 Rs. 300.00

Rs. 4,050.0 0 Rs. 300.00

Rs. 4,050.0 0 Rs. 300.00

Rs. 4,050.0 0 Rs. 300.00

Rs. 4,050.0 0 Rs. 300.00

Rs. 4,050.0 0 Rs. 300.00

Rs. 4,050.0 0 Rs. 300.00

Rs. 4,050.0 0 Rs. 300.00

Rs. 1,083.0 0 Rs. 750.00 Rs. 200.00 Rs. 200.00 Rs. 300.00 Rs. 75.00 Rs. 4,908.0 0 Rs. 4,908.0 0 Rs. 3,825.0 0 Rs. 24.00 Rs. Rs. 4,932.0 0 Rs. -

Rs. 1,083.0 0 Rs. 750.00 Rs. 200.00 Rs. 200.00 Rs. 608.00 Rs. 75.00 Rs. 7,266.0 0 Rs. 2,949.0 0 Rs. 1,866.0 0 Rs. 190.00 Rs. Rs. 3,139.0 0 Rs. -0.51

Rs. 1,083.0 0 Rs. 750.00 Rs. 200.00 Rs. 200.00 Rs. 608.00 Rs. 75.00 Rs. 7,266.0 0 Rs. 2,673.0 0 Rs. 1,590.0 0 Rs. 186.00 Rs. Rs. 2,859.0 0 Rs. -0.44

Rs. 1,083.0 0 Rs. 750.00 Rs. 200.00 Rs. 200.00 Rs. 608.00 Rs. 75.00 Rs. 7,266.0 0 Rs. 2,628.0 0 Rs. 1,545.0 0 Rs. 181.00 Rs. Rs. 2,809.0 0 Rs. -0.42

Rs. 1,083.0 0 Rs. 750.00 Rs. 200.00 Rs. 200.00 Rs. 608.00 Rs. 75.00 Rs. 7,266.0 0 Rs. 2,381.0 0 Rs. 1,298.0 0 Rs. 177.00 Rs. Rs. 2,558.0 0 Rs. -0.37

Rs. 1,083.0 0 Rs. 750.00 Rs. 200.00 Rs. 200.00 Rs. 608.00 Rs. 75.00 Rs. 7,266.0 0 Rs. 2,256.0 0 Rs. 1,173.0 0 Rs. 172.00 Rs. Rs. 2,428.0 0 Rs. -0.34

Rs. 1,083.0 0 Rs. 750.00 Rs. 200.00 Rs. 200.00 Rs. 608.00 Rs. 75.00 Rs. 7,266.0 0 Rs. 2,077.0 0 Rs. -994.00

Rs. 1,083.0 0 Rs. 750.00 Rs. 200.00 Rs. 200.00 Rs. 608.00 Rs. 75.00 Rs. 7,266.0 0 Rs. 2,000.0 0 Rs. -917.00

Rs. 1,083.0 0 Rs. 750.00 Rs. 200.00 Rs. 200.00 Rs. 608.00 Rs. 75.00 Rs. 7,266.0 0 Rs. 1,832.0 0 Rs. -749.00

Rs. 1,083.0 0 Rs. 750.00 Rs. 200.00 Rs. 200.00 Rs. 608.00 Rs. 75.00 Rs. 7,266.0 0 Rs. 1,685.0 0 Rs. -602.00

Rs. 1,083.0 0 Rs. 750.00 Rs. 200.00 Rs. 200.00 Rs. 608.00 Rs. 75.00 Rs. 7,266.0 0 Rs. 1,571.0 0 Rs. -488.00

Rs. 1,083.0 0 Rs. 750.00 Rs. 200.00 Rs. 200.00 Rs. 608.00 Rs. 75.00 Rs. 7,266.0 0 Rs. 1,450.0 0 Rs. -367.00

Interest Expense Taxes Incurred Net Profit

Rs. 168.00 Rs. Rs. 2,244.0 0 Rs. -0.30

Rs. 163.00 Rs. Rs. 2,163.0 0 Rs. -0.29

Rs. 158.00 Rs. Rs. 1,991.0 0 Rs. -0.26

Rs. 154.00 Rs. Rs. 1,838.0 0 Rs. -0.23

Rs. 149.00 Rs. Rs. 1,720.0 0 Rs. -0.21

Rs. 145.00 Rs. Rs. 1,595.0 0 Rs. -0.19

Net Profit/Sales

53 | P a g e

Pro Forma Cash Flow Jan Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interestfree) New Longterm Liabilities Sales of Other Current Assets Sales of Longterm Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Rs. Rs. -

Rs. 6,167.00 Rs. 6,167.00

Rs. 6,560.00 Rs. 6,560.00

Rs. 6,625.00 Rs. 6,625.00

Rs. 6,977.00 Rs. 6,977.00

Rs. 7,156.00 Rs. 7,156.00

Rs. 7,412.00 Rs. 7,412.00

Rs. 7,522.00 Rs. 7,522.00

Rs. 7,761.00 Rs. 7,761.00

Rs. 7,973.00 Rs. 7,973.00

Rs. 8,136.00 Rs. 8,136.00

Rs. 8,307.00 Rs. 8,307.00

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. Rs. -

Rs. 20,000.00 Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. -

Rs. Rs. 10,000.00 Rs. 10,000.00 Jan

Rs. Rs. Rs. 26,167.00 Feb

Rs. Rs. Rs. 6,560.00 Mar

Rs. Rs. Rs. 6,625.00 Apr

Rs. Rs. Rs. 6,977.00 May

Rs. Rs. Rs. 7,156.00 Jun

Rs. Rs. Rs. 7,412.00 Jul

Rs. Rs. Rs. 7,522.00 Aug

Rs. Rs. Rs. 7,761.00 Sep

Rs. Rs. Rs. 7,973.00 Oct

Rs. Rs. Rs. 8,136.00 Nov

Rs. Rs. Rs. 8,307.00 Dec

Rs. 2,000.00 Rs. 4,304.00 Rs. 6,304.00

Rs. 4,050.00 Rs. 1,926.00 Rs. 5,976.00

Rs. 4,050.00 Rs. 4,177.00 Rs. 8,227.00

Rs. 4,050.00 Rs. 4,287.00 Rs. 8,337.00

Rs. 4,050.00 Rs. 4,305.00 Rs. 8,355.00

Rs. 4,050.00 Rs. 4,404.00 Rs. 8,454.00

Rs. 4,050.00 Rs. 4,454.00 Rs. 8,504.00

Rs. 4,050.00 Rs. 4,525.00 Rs. 8,575.00

Rs. 4,050.00 Rs. 4,554.00 Rs. 8,604.00

Rs. 4,050.00 Rs. 4,621.00 Rs. 8,671.00

Rs. 4,050.00 Rs. 4,680.00 Rs. 8,730.00

Rs. 4,050.00 Rs. 4,724.00 Rs. 8,774.00

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. 550.00

Rs. 550.00

Rs. 550.00

Rs. 550.00

Rs. 550.00

Rs. 550.00

Rs. 550.00

Rs. 550.00

Rs. 550.00

Rs. 550.00

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. -

Rs. Rs. Rs. 6,304.00 Rs. 3,696.00 Rs. 8,685.00

Rs. Rs. Rs. 5,976.00 Rs. 20,190.00 Rs. 28,876.00

Rs. Rs. Rs. 8,777.00 Rs. -2,216.00 Rs. 26,659.00

Rs. Rs. Rs. 8,887.00 Rs. -2,262.00 Rs. 24,397.00

Rs. Rs. Rs. 8,905.00 Rs. -1,927.00 Rs. 22,470.00

Rs. Rs. Rs. 9,004.00 Rs. -1,848.00 Rs. 20,622.00

Rs. Rs. Rs. 9,054.00 Rs. -1,642.00 Rs. 18,981.00

Rs. Rs. Rs. 9,125.00 Rs. -1,603.00 Rs. 17,377.00

Rs. Rs. Rs. 9,154.00 Rs. -1,393.00 Rs. 15,985.00

Rs. Rs. Rs. 9,221.00 Rs. -1,249.00 Rs. 14,736.00

Rs. Rs. Rs. 9,280.00 Rs. -1,144.00 Rs. 13,592.00

Rs. Rs. Rs. 9,324.00 Rs. -1,017.00 Rs. 12,575.00

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Pro Forma Balance Sheet Jan Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulate d Depreciation Total Longterm Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Rs. 4,242.00 Rs. Rs. Rs. 1,787.00 Rs. Rs. Rs. 4,034.00 Rs. 20,000.00 Rs. Rs. 4,144.00 Rs. 19,450.00 Rs. Rs. 4,158.00 Rs. 18,900.00 Rs. Rs. 4,256.00 Rs. 18,350.00 Rs. Rs. 4,303.00 Rs. 17,800.00 Rs. Rs. 4,373.00 Rs. 17,250.00 Rs. Rs. 4,400.00 Rs. 16,700.00 Rs. Rs. 4,465.00 Rs. 16,150.00 Rs. Rs. 4,522.00 Rs. 15,600.00 Rs. Rs. 4,565.00 Rs. 15,050.00 Rs. Rs. 4,610.00 Rs. 14,500.00 Rs. Rs. 22,141.00 Rs. 8,989.00 Rs. 13,152.00 Rs. 18,141.00 Rs. 22,141.00 Rs. 10,072.00 Rs. 12,069.00 Rs. 20,754.00 Jan Rs. 22,141.00 Rs. 11,155.00 Rs. 10,986.00 Rs. 39,862.00 Feb Rs. 22,141.00 Rs. 12,238.00 Rs. 9,903.00 Rs. 36,562.00 Mar Rs. 22,141.00 Rs. 13,321.00 Rs. 8,820.00 Rs. 33,217.00 Apr Rs. 22,141.00 Rs. 14,404.00 Rs. 7,737.00 Rs. 30,207.00 May Rs. 22,141.00 Rs. 15,487.00 Rs. 6,654.00 Rs. 27,276.00 Jun Rs. 22,141.00 Rs. 16,570.00 Rs. 5,571.00 Rs. 24,552.00 Jul Rs. 22,141.00 Rs. 17,653.00 Rs. 4,488.00 Rs. 21,865.00 Aug Rs. 22,141.00 Rs. 18,736.00 Rs. 3,405.00 Rs. 19,390.00 Sep Rs. 22,141.00 Rs. 19,819.00 Rs. 2,322.00 Rs. 17,058.00 Oct Rs. 22,141.00 Rs. 20,902.00 Rs. 1,239.00 Rs. 14,831.00 Nov Rs. 22,141.00 Rs. 21,985.00 Rs. 156.00 Rs. 12,731.00 Dec Rs. 4,989.00 Rs. Rs. 8,685.00 Rs. Rs. 28,876.00 Rs. Rs. 26,659.00 Rs. Rs. 24,397.00 Rs. Rs. 22,470.00 Rs. Rs. 20,622.00 Rs. Rs. 18,981.00 Rs. Rs. 17,377.00 Rs. Rs. 15,985.00 Rs. Rs. 14,736.00 Rs. Rs. 13,592.00 Rs. Rs. 12,575.00 Rs. Starting Balances Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Rs. 4,989.00

Rs. 8,685.00

Rs. 28,876.00

Rs. 26,659.00

Rs. 24,397.00

Rs. 22,470.00

Rs. 20,622.00

Rs. 18,981.00

Rs. 17,377.00

Rs. 15,985.00

Rs. 14,736.00

Rs. 13,592.00

Rs. 12,575.00

Rs. 4,242.00

Rs. 1,787.00

Rs. 24,034.00

Rs. 23,594.00

Rs. 23,058.00

Rs. 22,606.00

Rs. 22,103.00

Rs. 21,623.00

Rs. 21,100.00

Rs. 20,615.00

Rs. 20,122.00

Rs. 19,615.00

Rs. 19,110.00

Rs. 2,858.00 Rs. 7,100.00 Rs. Rs. 11,041.00 Rs. Rs. 11,041.00 Rs. 18,141.00

Rs. 2,858.00 Rs. 4,645.00 Rs. 10,000.00 Rs. 11,041.00 Rs. -4,932.00 Rs. 16,109.00 Rs. 20,754.00

Rs. 2,858.00 Rs. 26,892.00 Rs. 10,000.00 Rs. 11,041.00 Rs. -8,071.00 Rs. 12,970.00 Rs. 39,862.00

Rs. 2,858.00 Rs. 26,452.00 Rs. 10,000.00 Rs. 11,041.00 Rs. 10,930.00 Rs. 10,111.00 Rs. 36,562.00

Rs. 2,858.00 Rs. 25,916.00 Rs. 10,000.00 Rs. 11,041.00 Rs. 13,740.00 Rs. 7,301.00 Rs. 33,217.00

Rs. 2,858.00 Rs. 25,464.00 Rs. 10,000.00 Rs. 11,041.00 Rs. 16,298.00 Rs. 4,743.00 Rs. 30,207.00

Rs. 2,858.00 Rs. 24,961.00 Rs. 10,000.00 Rs. 11,041.00 Rs. 18,726.00 Rs. 2,315.00 Rs. 27,276.00

Rs. 2,858.00 Rs. 24,481.00 Rs. 10,000.00 Rs. 11,041.00 Rs. 20,970.00 Rs. 71.00 Rs. 24,552.00

Rs. 2,858.00 Rs. 23,958.00 Rs. 10,000.00 Rs. 11,041.00 Rs. 23,134.00 Rs. -2,093.00 Rs. 21,865.00

Rs. 2,858.00 Rs. 23,473.00 Rs. 10,000.00 Rs. 11,041.00 Rs. 25,125.00 Rs. -4,084.00 Rs. 19,390.00

Rs. 2,858.00 Rs. 22,980.00 Rs. 10,000.00 Rs. 11,041.00 Rs. 26,963.00 Rs. -5,922.00 Rs. 17,058.00

Rs. 2,858.00 Rs. 22,473.00 Rs. 10,000.00 Rs. 11,041.00 Rs. 28,683.00 Rs. -7,642.00 Rs. 14,831.00

Rs. 2,858.00 Rs. 21,968.00 Rs. 10,000.00 Rs. 11,041.00 Rs. 30,278.00 Rs. -9,237.00 Rs. 12,731.00

Total Capital Total Liabilities and Capital Net Worth

Rs. 11,041.00

Rs. 16,109.00

Rs. 12,970.00

Rs. 10,111.00

Rs. 7,301.00

Rs. 4,743.00

Rs. 2,315.00

Rs. 71.00

Rs. -2,093.00

Rs. -4,084.00

Rs. -5,922.00

Rs. -7,642.00

Rs. -9,237.00

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My Favorite

Narayana Murthy
Born: August 20, 1946 Achievement: One of the founders of Infosys Technologies Limited; Chosen as the World Entrepreneur of the Year - 2003 by Ernst and Young Narayana Murthy is the Non-Executive Chairman and Chief Mentor of Infosys Technologies Limited. He is a living legend and an epitome of the fact that honesty, transparency, and moral integrity are not at variance with business acumen. He set new standards in corporate governance and morality when he stepped down as the Executive Chairman of Infosys at the age of 60. Born on August 20, 1946, N.R. Narayana Murthy is a B.E. Electrical from University of Mysore (1967) and M.Tech from IIT Kanpur (1969). Narayan Murthy began his career with Patni Computer Systems in Pune. In 1981, Narayana Murthy founded Infosys with six other software professionals. In 1987, Infosys opened its first international office in U.S.A. With the liberalization of Indian economy in 1990s, Infosys grew rapidly. In 1993, the company came up with its IPO. In 1995, Infosys set up development centers across cities in India and in 1996, it set up its first office in Europe in Milton Keynes, UK. In 1999, Infosys became the first Indian company to be listed on NASDAQ. Today (in 2006), Infosys has a turnover of more than $ 2billion and has employee strength of over 50,000. In 2002, Infosys was ranked No. 1 in the "Best Employers in India 2002" survey conducted by Hewitt and in the Business World's survey of "India's Most Respected Company" Conducted in the same year. Along with the growth of Infosys, Narayana Moorthy too has grown in stature. He has received many honors and awards. In June 2000, Asiaweek magazine featured him in a list of Asia's 50 Most Powerful People. In 2001, Narayana Murthy was named by TIME/CNN as one of the 25 most influential global executives. He was the first recipient of the Indo-French Forum Medal (2003) and was voted the World Entrepreneur of the
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Year - 2003 by Ernst and Young. The Economist ranked Narayana Murthy eighth on the list of the 15 most admired global leaders (2005) and Narayan Murthy also topped the Economic Times Corporate Dossier list of India's most powerful CEOs for two consecutive years - 2004 and 2005.

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BIBLIOGRAPHY www.google.com www.rediff.com Marketing Management - Kotler, Keller, Koshy & Jha Principles & Practice of Accountancy R.L. Gupta, V.K. Gupta

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