Business Plan

Prepared By:
Valerie Rangel - TYBMS Marietta George - TYBMS Varsha - TYBMS Amita Tulaskar - TYBMS Runa Lobo - TYBMS COLLEGE St. Xaviers College, Mumbai

Table of Contents I.Table of Contents II.Executive Summary III.General Company Description IV.Products and Services V.Marketing Plan VI.Operational Plan VII.Management and Organization VIII.Personal Financial Statement IX.Startup Expenses and Capitalization X.Financial Plan . XI.Appendices XII.Refining the Plan

Executive Summary: Cane-o-cane is designed for the health conscious consumers who get exhausted easily after the daily routine. Its strategic location close to station area gives it an advantage by being easily accessible. It is a legal form of partnership between six partners who have pooled in capital together to start up this form of venture. Of the total start up amount for all its 6 locations amounts to Rs 30 lakhs. A loan has been granted by the Bank of India for 50% of the amount, which amounts to Rs 15 lakhs. The profit or loss as the case may be would be divided among the partners in the equal ratio, combining the net income or loss of all the stores. Mission Statement: "We will provide our customers with an incredible, healthy alternative to fast food that tastes great, convenient and nutritious, making it perfectly suited for today's active lifestyle and health conscious individuals. Companies Goal: To be a strongest contender in the market along with having the reputation of providing healthy ambience, nutritious products, satisfying service to the customer.

Business Philosophy: Cane-o-cane is customer-focused and responsive to change, balanced by a clear understanding that value and quality guide our decision-making. We challenge our priorities, policies, rules, procedures, regulations, and laws to ensure that we are providing efficient and effective services to our customers We support open communication at every level of our business processes. We continually evaluate our business processes to support a user-friendly environment that improves customer and employee satisfaction

 We recognize and accept that change never ceases; that it provides us the opportunity to become responsive to customer needs. The market for our products We would basically market our products to people of all age group whore health conscious and would prefer revigourating themselves after a hectic days activity. Description of the Industry Growth rate of the industry is estimated at higher level. In the short term the market share will escalate due to the innovation of service, product and place. In the long run more and more people would prefer our joint to competitors (soft drinks) as the competitors uses emulsifiers and binders in their drinks which leads to obesity and the results will educate consumers to opt for the natural drinks which ultimately will increase the market share of our business. The Companys most important strengths and core competencies The competition uses emulsifiers and binders in their drinks. We dont even know what emulsifiers and binders are: Well, we sort of do know that emulsifiers, binders and fillers have something to do with thickening drinks/juice. But still, we cant figure out why anybody would use them (or want them) in their drinks. But our product contains the real sugarcane juice without any chemical amalgamation. We knew that our stores had to look special, and that is why the design firm that committed to creating a visual interpretation of our products and brand with every location i.e. uniformity prevails in all our stores. One visit to any of our store and you will see that it is unlike any other. Vibrant colors, custom-made tiles and other artistic details. Special diet? We help you eat smart and safe We want everyone to be able to enjoy the visit to our stores. Thats why we

provide detailed information on ingredients, and how it can be a great fit with a whole range of special diets. Legal form of ownership: Partnership: a partnership is a business with more than one owner that has not filed papers with the state to become a corporation or LLC (limited liability company). There are two basic types of partnerships: general partnerships and limited partnerships. This article discusses general partnerships, the more common structure in which every partner has a hand in managing the business. The partnership is the simplest and least expensive co-owned business structure to create and maintain.

Marketing Plan We have conducted market research so as get the accurate information about customers and competitors that allows the development of a successful marketing plan. Economics: Current demand in target market In todays world more and more people are becoming health conscious and after understanding this need we are introducing the healthy juice. Some typical barriers that we are experiencing are: o Consumer acceptance and brand recognition. o High marketing costs to moderate level.

Products: Cane-o-cane specializes in offering sugarcane juice and freshly prepared sandwiches to go with it. Six to eight moderate batches of sandwiches products will be prepared during the day to assure fresh availability. 1) Sugarcane juice. 2) Healthy Sandwich Recipes (Whole Grain): Ingredients: Whole Grain Vegetable Sandwiches! These are great! 4 slices whole grain bread 1 avocado, mashed 1 tomato, sliced 1 small cucumber, sliced 1/4 cup Spanish onion, thinly sliced 2 tsp. healthy mayonnaise (available in a health food store) Sea salt, to taste

Pepper, to taste 3) Pita Pockets with Avocado and Sprouts: 1 whole wheat pita breads, cut in half 1 medium tomatoes, sliced thin 1 cup alfalfa sprouts 1/2 cup cucumber, sliced thin 1 ripe avocados, mashed 1/4 sweet onion, thinly sliced 1 tbsp. lemon juice (or to taste) Sea salt (to taste) 1/4 tsp. cayenne pepper 1/4 tsp. garlic powder 1/4 tsp. onion powder 1 tsp. chicken base powder, low salt (optional) 2 tsp. honey .4) Deluxe Grilled Cheese Sandwich: One of the most common ways to enjoy cheese is as a grilled cheese sandwich. Here's a deluxe and healthful rendition of the old favorite. Ingredients: 4 slices whole-wheat bread 2 teaspoons less-fat margarine (with 8 grams of fat per tablespoon) 3 ounces fresh mozzarella cheese, thinly sliced (or shredded reduced-fat Swiss cheese, Jarlsberg Lite, or part-skim mozzarella) 1 medium vine-ripened tomato, thinly sliced Freshly ground pepper Salt to taste (if desired) About 1/2 cup fresh basil leaves. Nutritional Information:

Per sandwich: 323 calories, 19 g protein, 37 g carbohydrate, 12 g fat (5.5 g saturated fat), 23 mg cholesterol, 5.2 g fiber, 615 mg sodium. Calories from fat: 33%.

5) Party Sandwich Sub : Ingredients: 1 unsliced loaf of wheat sourdough or French bread (some bakeries bake this fresh!) 1/2 cup light cream cheese, softened 1/2 cup shredded reduced-fat sharp cheddar cheese 1/3 cup chopped green onions 1 tablespoon light mayonnaise 1 1/2 teaspoon Worcestershire sauce 1/2 pound thinly sliced extra lean ham (any type you like) 1/2 pound thinly sliced lean roast beef 6 big slices dill pickle.

PRICE OF SANDWICHES: Healthy Sandwich Recipes (Whole Grain) Cost price: 48 Final price: 58 Pita Pockets with Avocado and Sprouts: Cost Price: 60 Final price: 65 Deluxe Grilled Cheese Sandwich: Cost Price: 40 Final Price: 50 Party Sandwich Sub: Cost Price: 35 Final Price: 45

Features: Fresh sugarcane juice. Reasonable cost. Hygienic products. Freshly prepared sandwiches with a wide option of fillings and flavors. Healthy and nutritious.

Benefits: Better value for a reasonable price. Greater variety. Made-to-order. Hygienic substitute to aerated drinks. Clean environment.

Food Value: The juice is extracted from the cane by pressing it through iron rollers in the machine. It is nutritious and refreshing. It contains about 15% natural sugar and is rich in organic salts and vitamins. Hence regarded as a nutritious diet.

Natural Benefits and Curative Properties: Sugarcane juice has many medicinal properties. It strengthens the stomach, kidneys, heart, eyes, brain and sex organs.

Fevers: The juice is beneficial in fevers. In febrile disorders which causes fever, when there is a great protein loss, liberal intake of sugarcane juice supplies the body with necessary protein and other food elements. Genito-urinary Disorders: Sugarcane is very useful in scanty urination. It keeps the urinary flow clear and helps the kidneys to perform their functions properly. It is also valuable in burning micturation due to high acidity, gonorrhea, enlarged prostate, cystitis and nephritis. For better results, it should be mixed with lime juice, ginger juice and coconut water.

Customers: Cane-o-cane focuses on targeting the average street food relisher. The company would like to serve as a respite to those wanting to grab a glass of a chilled and refreshing sugarcane juice and a bite of a sandwich while on they busy schedule. Cane-o-cane will focus on two different customer segments: Commuters and Captive Consumers. The greatest concentration will be on commuters heading to or from work, or those out on their lunch break. Captive consumers would include high school and college students, who have a limited time between classes to rejuvenate themselves. Apart from everyday commuters, Cane-o-cane also intends to target long-distance travellers, as close proximity to the railway platform will enable easy access to board trains. Hence, we would practically be targeting all age, gender, income, education and social class; anyone and everyone who has access to the juice bar.

This customer range will establish a healthy, consistent revenue base to ensure stability of the business. Competition: Cane-o-cane would predominantly receive competition from the street juice kiosks (hawkers) and other local juice bars. Competition in the local area could somewhat be sparse and ones that do not provide nearly the level of product quality and customer service as at Cane OCane. The consumers in this environment are looking for quick, convenient, fairly priced, quality refreshment that will allow them to purchase the product and return to work, class, or other activity. Cane-o-cane is a perfect example of the above mentioned features and attributes that a consumer can avail of from the products we offer.

Local juice centres can hardly meet all these criterias for obvious reasons like the proximity to open and busy streets, and food products touched by hand therefore increasing the incidence of the final product having lesser hygiene qualities.

When measuring head-to-head, direct competitors, we have found that there are none in the area. Cane-o-cane will be the first of its kind juice bar in the area planned to be set in.

However, there is a likelihood of facing competition in the initial stages of establishment of the business from open street juice vendors for reasons like their mass distribution and Cane-o-Canes limited reach during the period of infancy of the company.

Competitive Analysis

5 = critical; 1 = not very important

Me Factor (cane -o-cane) Sugarcane juice, freshly prepared Products sandwiches, bakery items Price Quality Selection Service Good Reasonable High Wide variety

Competitor A Strength Weakness (street juice vendors) Sugarcane, lemon juice

Competitor B ( local juice shops) All fruit juices

Importance to Customer 5

Low Low Specific

Reasonable Low-average Only sell juices; no snacks

4 4 3

Good Located every 400 mts

Good On every street

3 4

4 locations spread on the western and Location central line railway stations Posters, pamphlets Advertisin g (during the initial stages) ---

---

none

none

Niche:

The dominant target market for Cane-o-cane is a regular stream of local commuters and captive customers. Personal and expedient customer service at a competitive price is key to maintaining the local market share of this target market. Since the city of Mumbai has a warm and humid climate through most months of the year, cold drinks are preferred and demanded. With people becoming more and more conscious of their health, sugarcane juice is definitely a preferred substitute for aerated drinks. The location of our joints at four crowded railway stations of the city makes it a lucrative spot for passers by to halt by to grab a bite and a drink.

Strategy: Our marketing strategy needs to accomplish two things: first, to make potential customers aware of Cane OCanes opening and location; second, to educate potential customers as to what we offer and why they should choose us over their regular juice vendor. The marketing budget will not exceed 3% of our gross annual sales. The location of the juice bar on the busy railway platform makes it eye-catching, which will be a branding feature of its own. Distribute flyers and pamphlets while commuters wait to board their trains at platforms at moderately crowded hours and outside railway stations. Stick pamphlets in local train and railway stations. Encourage word of mouth through first time customers by offering the first 100 a complementary cookie.

Promotional Budget: Before startup: Rs.20, 000 (for the first month) for each outlet. Ongoing: Rs.7, 500 (every month) for each outlet.

Pricing: Our products are a range of them with different pricing strategies and also to be on a competitive edge we price at an average. Like the plain sugarcane juice: Rs.4 Sugarcane masala Cane special : Rs.5 : Rs.8

And sandwiches would be complimentary products. Healthy Sandwich Recipes (Whole Grain): Rs.58 Pita Pockets with Avocado and Sprouts: Rs.65 Deluxe Grilled Cheese Sandwich: Rs.50 Party Sandwich Sub: Rs. 45

The price will be effective as the customers we are targeting are mainly those who make their decision to have this juice depending on the basis of the price as one glass of sugarcane usually obtained at the stalls at Rs.3 per glass. Our conviction of it being hygienic and its ambience would add to the cost of Rs 4/- per glass. Our market also mainly attracts those customers who go in for a VadaPav or bhel and a glass of sugar cane for their meal or snacks.

Our market would consist of all those who also work for the day and what to have something healthy this is d best option they can ever get and sandwich to fill their stomach.

Proposed Location: We have a very strategic location for our business looking at the type of customers we are catering to we would like to keep our locations near the stations so that it is very feasible to the daily travelers to stop by for just five minutes to get healthy refreshing drink at just marginal price more from the street vendor. Any ways we would be providing with a better service of seating instead of the standing and drinking business like the others. Keeping our location near the station we would also like to open up in the upcoming malls catering to all those shopaholics who are tired after a long shopping spree. Also the mall would be great for the youth as it has become a hangout place for Mumbaikars where these people come for a window shopping and just to roam around as the things are very expensive for them to buy and thus after walking about in the mall if they are not hungry and just thirsty instead of spending twenty rupees on a bottle of water why not drink two glasses of sugarcane eight rupees each (since it is mall) making it to sixteen rupees and saving four rupees isnt it a great deal. Thus it is very much the customers want and a very strategic location. We are located near the competitors and also away from them when we are located near the competitor as when we are located near the stations we are located near the competitors as there are many others also who are already there. When we are located in the mall we could say the we are located away but again we are near to different set of competitors the coffee shop owners and the cold rinks and other

beverages but as we concentrate mainly on the benefits of the sugar cane juice thus attracting more and more of them towards it. Financial Plan

12- Sales Forecast

Sales Forecast (12 Months)

CANE'O CANE Jun08 12-month Sales Forecast Curren t Month Ending mm/yy Sales History

Fiscal Year Begins

Jun08 9000 5.00

churcgate stn

Jul08 900 0 5.00

Aug -08 100 00 5.00

Sep -08 900 0 5.00

Oct08 900 0 5.00

Nov -08 900 0 5.00

Dec -08 100 00 5.00

Jan -09 900 0 5.00

Feb -09 900 0 5.00

Mar -09 900 0 5.00

Apr -09 100 00 5.00

May -09 900 0 5.00

Annua l Totals 11100 0

2007

2006

2005

Sale price @ unit

Cat 1 TOTAL

45,00 0

45,0 00 900 0 5.00

50,0 00 100 00 5.00

45,0 00 100 00 5.00

45,0 00 100 00 5.00

45,0 00 900 0 5.00

50,0 00 100 00 5.00

45,0 00 100 00 5.00

45,0 00 100 00 5.00

45,0 00 900 0 5.00

50,0 00 100 00 5.00

45,0 00 100 00 5.00

555,00 0 11700 0

dadar stn

10000 5.00

Sale price @ unit

Cat 2 TOTAL

50,00 0

45,0 00 100 00 5.00

50,0 00 110 00 5.00

50,0 00 100 00 5.00

50,0 00 900 0 5.00

45,0 00 100 00 5.00

50,0 00 110 00 5.00

50,0 00 100 00 5.00

50,0 00 900 0 5.00

45,0 00 100 00 5.00

50,0 00 110 00 5.00

50,0 00 100 00 5.00

585,00 0 12000 0

vt station

9000 5.00

Sale price @ unit

Cat 3 TOTAL

45,00 0

50,0 00 300 0 7.00

55,0 00 400 0 7.00

50,0 00 500 0 7.00

45,0 00 300 0 7.00

50,0 00 300 0 7.00

55,0 00 400 0 7.00

50,0 00 500 0 7.00

45,0 00 300 0 7.00

50,0 00 300 0 7.00

55,0 00 400 0 7.00

50,0 00 500 0 7.00

600,00 0

mall1

3000 7.00

45000

Sale price @ unit

Cat 4 TOTAL

21,00 0

21,0 00

28,0 00

35,0 00

21,0 00

21,0 00

28,0 00

35,0 00

21,0 00

21,0 00

28,0 00

35,0 00

315,00 0

mall 2

3000 7 21,00 0

400 0 7.00 28,0 00 500 0 7.00 35,0 00 400 0 7.00 28,0 00

400 0 6.00 24,0 00 500 0 7.00 35,0 00 500 0 7.00 35,0 00

350 0 7.00 24,5 00 400 0 7.00 28,0 00 450 0 7.00 31,5 00

300 0 7 21,0 00 300 0 7.00 21,0 00 300 0 7.00 21,0 00

400 0 7.00 28,0 00 500 0 7.00 35,0 00 400 0 7.00 28,0 00

400 0 6.00 24,0 00 500 0 7.00 35,0 00 500 0 7.00 35,0 00

350 0 7.00 24,5 00 400 0 7.00 28,0 00 450 0 7.00 31,5 00

300 0 7 21,0 00 300 0 7.00 21,0 00 300 0 7.00 21,0 00

400 0 7.00 28,0 00 500 0 7.00 35,0 00 400 0 7.00 28,0 00

400 0 6.00 24,0 00 500 0 7.00 35,0 00 500 0 7.00 35,0 00

350 0 7.00 24,5 00 400 0 7.00 28,0 00 450 0 7.00 31,5 00

43500 292,50 0

Sale price @ unit

Cat 5 TOTAL

mall 3

3000 7.00 21,00 0

51000 357,00 0

Sale price @ unit

Cat 6 TOTAL

mall 4

3000 7.00 21,00 0

49500 346,50 0

Sale price @ unit

Cat 7 TOTAL

Monthly totals: All Categories

224,0 00

252, 000

277, 000

264, 000

224, 000

252, 000

277, 000

264, 000

224, 000

252, 000

277, 000

264, 000

30510 00

Production: Our method of production would be basically after the order and customized production being beverage joint wherein we cannot maintain stocks before hand. The production would be by using the conventional sugarcane juicer machine with one sugarcane using for 3 glasses Thus helping us give a better quality and thickness in the juice then those given by the competitors this is feasible for us as we are going to get the sugar canes for much cheaper rate than the others from the farmers as we would be buying in large quantities from the buyer thus availing the discounts from them. Customer service is of superior quality just like food joint u get the place to sit with as many number of people you come with and discuss on issues a lot can be happening on a glass of sugarcane with not just limiting it to conversations and also including the curing of diseases.

Location: In a location the characteristics required would be that of a easy access to the customers and place where the people are likely to come and there are immediate walk in of the customers thus making the locations we chose the best and the most strategic ones. The physical requirements: The amount of space would be 300-400sft approximately Making easy for us to put the sufficient seating arrangement and place for the kitchen activities which again are minimal. Power would be required a lot as the machine would be running the whole day for the sugar cane juice to be made as per the demand of the customers. We would actually need easy walk in access thats the reason actually we chose the place as the stations where we have this access. Our business hours would be starting at nine in the morning the peak office going hours till eight-thirty in the night.

Legal environment: We will be registered under the Shops and the Establishment Act. We will adopt the local municipal regulations on health and hygiene. Bacteriological investments will be conducted from time to time. Workers handling the juice will be given proper training for hygiene. Insurance coverage will be taken for machinery and all other fixed assets. Trademark will be registered with the concerned authorities as per the Companies Act.

Personnel: There will be about four people required at each place for the sugar cane juice counter and about three for the sandwich and more would be recruited depending on the demand. At first as we are starting of with only one machine we would be requiring as follows: Two people at the machine One person at the receiving of the product and One for taking the orders and also serving the order to the customer. For the sandwich part of it we would require three people: One for making the sandwich One for garnishing and giving it outside and One for serving them However there would be one person for taking the entire order and billing it preferably the store manager. Here we would have all skilled labor all experienced enough already who have worked in any hotel or anything but have a work experience of at least one year. Pay structure: We would be paying uniformly to the laborers and a rise would be seen in their salary depending on the turnover of the store. The store manager would be paid a fixed salary of Rs 10,000/- initially. These were the estimates for one outlet only it would be the same for all other outlets also. One person being the head of the department would be taking care of all the supplies at each outlet. That would be the structure of the organization.

Inventory : The inventory would be in the ratio of 1.33 as per the best credit rule and also there would be an inventory stock of the following at each store: Sugar canes 200 at Rs.4 per cane Sandwich bread packets at about thirty per outlet The vegetable stock as required The lead time of ordering would be decided once the business starts depending on the demand. Suppliers: Our suppliers would be whole sale cane suppliers at Lal Baugh and the wholesale vegetable suppliers and the grocery suppliers. For items like the sugar cane which is critical for our business we would be requiring a back up supplier.

Credit Policies: We would be taking the stock such as the grocery and the sugar canes on credit but we wouldnt be providing anything on credit to the customers thus only thing to be maintained shall be the management of accounts payable. This would be done by the accounting dept as per the requirements.

MANAGEMENT AND ORGANISATION The business on the day to day basis will be managed by the partners. In our organization every person is important and holds responsibility for the day to day happenings of the business. Regarding the organizational charts we would not require one as we partners are with the aid of two or three professional advisors will be managing the promotional and the other operational activities with coordinating with the supervisors or the store managers. We the partners will be handling all the activities as it does not require any organizational hierarchy.

START-UP EXPENSES

Machinery equipment: Transportation cost Machine stand: Furniture (seating arrangements, tables) Promotional Expenses before startup Ceiling fans, lighting Registration cost Rental deposit TOTAL:

90,000 10, 000 30,000 40,000 1, 40,000 25,000 200000 105000 6, 40,000

Explanation: The cost of the machinery equipment is Rs 90,000. However the cost of transportation adds to Rs 10,000 which is an expense for the business. The machine would be rested on the stand in the store which amounts to Rs 30,000/-. Customer seating arrangements and other add ons which provide convenience to the customers are estimated to incur a cost of Rs 40,000/-. Also a registration cost of Rs 2 lacs is incurred.

Ceiling fans and other lighting expenses crop up to Rs 25,000/-. Also a rental deposit of Rs 105000 had to be incurred for a single store. EXPENSES: (expenses incurred for a single year) PARTICULARS Raw Materials Labour charges Store Managers Salary Electricity expenses Rent Promotional Expenses TOTAL COST PER OUTLET/ PER YEAR 1, 82,500 2, 10,000 1, 20,000 18, 000 12,000 90,000 6, 32,500

The above expenses are arrived at for a single outlet per year. Considering that all the stores have uniformity as they are located near the station areas, the expenses of all the 6 outlets are the same. Therefore the total expenses for cane- o- cane would be 6, 32,500 * 6 = Rs 37, 95,000.

In short, Raw Materials (Cane cost) = 100 canes per day*365 days * Rs 5/- per cane = Rs 1, 82,500/- (per year) Labour charges: 7 laborers* Rs 2500* 12 months= Rs 2, 10,000/- (per year) Store Managers Salary = Rs 10,000 per month * 12 months = Rs 1, 20,000 (per year) Electricity expenses = 12 * Rs 1500 (max) = Rs 18000/- (per year) Rent: Rs 10,000 * 12 = Rs 12,000/- (per year) Promotional expenses = Rs 7500 (per month) * 12 months = Rs 90,000/- (per year)

Explanation: The Raw Materials here being the canes, are purchased from the wholesale market at Lal Baug in bulk so as to exploit the benefit of a cheaper price and maximize returns. A demand for approximate 100 canes is made per day and for a year which comprises of 365days a demand for 36500 canes is anticipated. The cost per cane is Rs5/- owing to which a total expense of Rs 1, 82,500/- is incurred on the purchase of cane throughout the year. However if an average of the same is taken, an approximate value of Rs 15210/- is incurred per month. However owing to the seasonal nature of this product and the demand for sugarcane juice being more in the summer season a drastic fluctuation would be seen in the demand for the canes. However the shelf life of the commodity being high, it wouldnt result in the wastage of canes due to low demand on a certain occasion.

The store would be manned by four who would handle the entire distribution of cane juice and three to handle sandwiches as per the order of the customers. They would be paid Rs 2500 each per month initially. Owing to which Rs 17,500/- would be incurred as payment of wages for a month. On an average, per year Rs 2, 10,000 would be incurred as payment of wages. On the other hand, the store manager who would be handling the accounts and the entire management of the business would be given a starting salary of Rs 10000/-. In the entire year his salary expense would amount to Rs 1, 20,000/-. His salary would preferably rise after a period of few years once the business is well established. Similarly the electricity expenses are estimated to be Rs 1500 per month which would incur a total expense of Rs 18000/- per year. The rent for the area used to set up the business is a Rs 10000 per month which incurs a cost of Rs 120000/- per year on an average.

SOURCE OF INCOME: The entire financial requirements would be met through a partnership setup. The main purpose of this setup is to pool talents, resources together to turn the business into a wealth generating venture.

Appendices Industry studies Jumbo King Vada Pav was a business which provides an insight as to how a humble product can be turned into a world class product. Started about three years ago, this fast food chain specializes in vada pav. They also have variants of the vada pav, like the diet jumbo king and cheese jumbo king.

The outlet that was visited is situated right at the entrance of Andheri station on the east side. the people there in aprons and serving the vada pav wearing plastic gloves. They also have this steel frying equipment, somewhat similar to the one you see at McDonalds. They (JK) plan to make the vada pav as popular as the burger. And they have introduced the franchisee concept, (which is something unheard of in the road side snacks business), something similar to McDonalds. A grand expansion plan of having at least 1000 outlets is the next target.

Maps and photos of location

Detailed lists of equipment to be purchased:Machinery equipment: Machine stand: 90,000 30,000

Furniture (seating arrangements, tables) Ceiling fans, lighting Total

40,000 25,000 1, 85,000

Refining the Plan The business plan presented above should is a service business. For Raising Capital For Bankers Bankers will get assurance of orderly repayment. Amount of loan is Rs.15 lakhs. The funds will be used for firstly the purchase of the proposed land and for the licensing procedures. The installation of the sugarcane juicer machine and furniture is included , along with the amount required for the purchase of a buffer stock of sugarcane. Requested repayment terms are as follows: . 15% of purchase consideration in case of purchase of ready built premises [age not more than 5 years] 25 % in case the premise is more than 5 years old. 40 % for furniture and fixtures. Rate of Interest 14.25% p.a. w.e.f. 11.08.2008

Repayment The entire loan amount is repayable in Equated Monthly Instalments within 84 months, with an initial moratorium upto 12 months.

Service Businesses Our service business sells intangible products mainly sugarcane juice along with a wide range of sandwiches. The labor costs are curtailed because the shop can be handled by a maximum of three persons and the business has little in fixed assets. The key competitive factors in this industry are other shops that provide fast food and juice to customers. A formidable distance will be kept from competitors and quality products are the main priority for us. The prices are as follows: The plain sugarcane juice: Rs.4 Sugarcane masala Cane special : Rs.5 : Rs.8

Methods used to set prices Cane-o-canes plain sugar cane juice is for Rs. 4(small) Cane-o-canes plain sugar cane juice is for Rs. 6(large) Cane-o-canes special sugarcane juice is for Rs. 8 As per the variations in our products being quantity, flavouring and ingredients the product prices are set. Another factor in price setting is the pricing.

Credit, payment, and collections and procedures We would be taking the stock such as the grocery and the sugar canes on credit but we wouldnt be providing anything on credit to the customers thus only thing to be maintained shall be the management of accounts payable. This would be done by the accounting dept as per the requirements. Quality control procedures. The standard or accepted industry quality standards will be used. Bacterial testing of the equipment and the final product is one of the quality control procedures to be used. The measure of labor productivity will be calculated in the number of glasses of our fresh cane-o-cane juice each of the workers in the shop will make per day. Workers will have shifts wherein they perform the various actions in the shop in a cyclical order. This also ensures that all the workers are well acquainted with the different jobs in the shop. Percent of work subcontracted to other firms is nil, as cane-o-cane does not need subcontracting. The business in a shop needs few workers and the product is prepared in one single process.