Herbal Spa in Orissa 34

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DESERT AND SUNDAE BAR

A Business Plan submitted for partial fulfillment of

the requirements for the Degree of Bachelor of Technology

Under Biju Pattnaik University of Technology

By

SOUMYA RANJAN BARAL Roll #ECE200610358

PRANGYA UPASANA DAS Roll#EEE200625314

SANDEEP SAHU Roll#ECE200620407

MANISHA SWAIN Roll#CSE200626281

March - 2009

Under the guidance of

Mr. Jagannath Mohanty

NATIONAL INSTITUTE OF SCIENCE &TECHNOLOGY

PALUR HILLS, BERHAMPUR, ORISSA 761008, INDIA


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ABSTRACT

Everybody may it be a child of 4 year or an adult has an inner liking for deserts and sundae.while for

children its irresistible whereas for others its a delite.This particular venture would cater to the needs of

all the age group providing with mouthwatering lip service. It can loosely be described as a quick-service

restaurant where customers sit around a bar and watch their desserts and sundae being made. The

show, as well as the dessert and the sundae, is our main selling point.

Lip-a-Smocha is the name we are willing to give this exciting venture.It will hold true to its vision of being

a new concept with an old fashioned feel in order to become a favorite spot for all ages. As the

reported state leader in money spent in restaurants,Bhubneswar is an optimal location for launching a

new restaurant concept.Lip-a-Smocha also hopes to become a destination for the thousands of tourists,

both Indian and foreign, who visit Bhubneswar every year.

We are creating a new niche in the restaurant industry.Through a philosophy of "nothing but the best"

regarding both product and service,Lip-a-Smocha will establish itself as an exceptional dessert bar in

Bhubneswar. We also will gain a competitive advantage in take out and catered desserts.

This plan outlines our company concept, philosophy and forecasted financials. Rutabaga Sweets hopes

to find seed money of $300,000 to launch our business in June of this year.


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ACKNOWLEDGEMENT

We express our deep sense of gratitude to, Mr. Jagannath Mohanty, Project

Advisor, for his valuable guidance and constant unfailing encouragement for

completing this project.

We are also grateful to our friends for tirelessly and patiently pursuing us to finish this

report without whose help completion of the project report was the next thing to

impossible.

Last, but not the least, We give our sincere thanks to Mr. B. P.Pattnaik, for giving us

the opportunity and creating a nice work environment for us to complete our Business

Plan report within the stipulated period of time.

Finally, I would like to thank Mr. Sangram Mudali for providing us proper

environment for the completion of the report.

SOUMYA RANJAN BARAL

PRANGYA UPASANA DAS

SANDEEP SAHU

MANISHA SWAIN


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TABLE OF CONTENTS

ABSTRACT ...................................................................................................................ii

ACKNOWLEDGEMENT ............................................................................................iii

TABLE OF CONTENTS .............................................................................................. iv

1. INTRODUCTION ...................................................................................................... 6

2. GENERAL INFORMATION .................................................................................... 7

2.1 Name of the Entrepreneurs ...................................................................................7

2.2 Proposed Project ...................................................................................................7

2.3 Major Product / Services ...................................................................................... 7

2.4 Proposed Locations .............................................................................................. 7

2.5 Type of Organization ........................................................................................... 73. ENTREPRENUER PROFILE .................................................................................. 7

4. TYPE OF THE PRODUCT / SERVICES ................................................................ 9

5. DETAILS OF THE PROPOSED PROJECT ...........................................................10

5.1 Land and Building ..............................................................................................10

5.2 Machineries / Equipments ..................................................................................10

5.3 Miscellaneous Fixed Assets ...............................................................................11

5.4 Preliminary and Pre Operative Expenses ..........................................................11

5.5 Working Capital ................................................................................................11

6. MARKET POTENTIAL ..........................................................................................116.1 Present Demand and Supply of the Product Competition ..................................11

6.2 Competition ........................................................................................................12

6.3 Target Clients .....................................................................................................12

6.4 Marketing Strategy .............................................................................................12

7. MANUFACTURING PROCESS ............................................................................ 12

7.1 Technical Know How Availability .................................................................... 12

7.2 Step by Step Description ....................................................................................12

8. PRODUCTION SCHEDULE .................................................................................. 14

8.1 Number of Working Days per Annum ...............................................................14

8.2 Number of Working Shifts ................................................................................14

8.2.1 Service Revenue ..........................................................................................14

8.2.2 Utilities .......................................................................................................14

.............................................................................................................................14

8.2.3 Man Power (Salaries/Wages) .....................................................................15

8.2.4 Repairs and Maintenance ..........................................................................15

8.2.5 Selling and Distribution Expenses ............................................................16

8.2.6 Administrative Expenses ............................................................................16

8.2.7 Interest .........................................................................................................16

8.2.8 Depreciation ................................................................................................16

8.2.9 Misc. Expenses ............................................................................................168.2.10 Total Cost of the Project ............................................................................18


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8.2.11 Means of Finance ......................................................................................18

9. PROFIBILTY PROJECTIONS ............................................................................. 18

10. BREAK EVEN POINT ..........................................................................................19

11. CHALLENGES AND DECISIONS ......................................................................20

12. FUTURE PLANNING ...........................................................................................20

13. CONCLUSION ......................................................................................................21


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ENTREPRENEURSHIP PROJECT DESERT AND SUNDAE BAR

1. INTRODUCTION

In this dynamic world everyone busy in their lives. He require peace at some stages of

the life or at some moment of his life. So we can make a business plan by creating

natural environment within some limited area.

Here people will get natural atmosphere, herbal treatment of many diseases, yoga

centre, gym and natural parks. Here people will come for refreshment as well as

settles themselves as per term and condition for some limited period.

This can be a feasible business plan because orissa is full of natural beauties as well as

having a large space for such types of plan.


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2. GENERAL INFORMATION

2.1 Name of the Entrepreneurs

Soumya Ranjan Baral

Prangya Upasana Das

Sandeep Sahu

Manisha Swain

2.2 Proposed Project

Desert And Sundae Bar

2.3 Major Product / Services

A large area in proposed location having natural beauties.

2.4 Proposed Locations

Kalahandi, koraput, Jeypur

2.5 Type of Organization

Organization having experience of management

3. ENTREPRENUER PROFILE


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1. Name :Kasturi Priyadarshini Das

Educational Qualification:Bachelor of Technology

Technical Skills:C,C++,Core Java.

2. Name :Priyanka Mishra



3. Name: Pragya Mathur




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4. TYPE OF THE PRODUCT / SERVICES

1. Type of the Project :

Service & Sales Oriented Organization

2. Product / Services Description :

It is a specialized infrastructure where people get refreshment

as well as herbal treatment. .

3. Major Consumers :

High & Middle class families

PROMOTERS:

1. Major Promoter of our project will be loans taken from banks.

2. Capital from reliable and Supportive Capital Ventures.

3. Govt of orissa (tourism dept).


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5. DETAILS OF THE PROPOSED PROJECT

This Project is about constructing of an herbal treatment center. Here people get

natural atmosphere and Yoga center. Here there will be small parks.

5.1 Land and Building

Sr. No. Particular Area Required Total Value Remarks

1.

2.

Land

Building

8 acres

2000sqFt

Rs. 8,00,000

Rs. 5,40,000Total: Rs. 13,40,000

5.2 Machineries / Equipments

Sr. No. Description Nos. Required Rate(Rs.) Total Value(Rs.)

1. Grass cutter 5 30,000 1,50,000

2. Electric motor 5 6,000 30,0003. Transformer 2 10,000 20,000

Total: 2,00,000


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5.3 Miscellaneous Fixed Assets

Sr. No. Description Nos. Required Rate(Rs.) Total Value(Rs.)

1. Furniture 8 sets 10,000 80,000

2. Computer 4 30,000 1,20,000

3. A.C. 5 20,000 1,00,000

4 Aqua Guard 3 5,000 15,000

Total: 3,15,000

5.4 Preliminary and Pre Operative Expenses

Sr. No. Particulars Amount (Rs.)

1. Interest during implementation 7.0% interest on 40,00,000

loan=2,80,000

2. Establishment expenses 1,00,000

3. Start-up expenses 3,00,000

4. Misc. expenses 50,000

Total 7,30,000

5.5 Working Capital

Sr. No. ITEM Rs.

1.

2

3.

Salary/Labour

Interest on loan

Administrative expenses

29,40,000/year

2,80,000/year

Total 32,20,000

6. MARKET POTENTIAL

6.1 Present Demand and Supply of the Product Competition

In this dynamic world everyone busy in their lives. He requires peace at some stages

of the life or at some moment of his life. So we are creating natural environment

within some limited area. Here people will get natural atmosphere, herbal treatment of

many deceases, yoga centre, and natural parks. Here people will come for


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refreshment. Now a days people suffering from many diseases and most of the

chronic diseases. So these types of diseases can be cured by yoga. Now a days people

are getting bored from busy schedules so definitely they require peace. Most of the

peoples getting frustration from there busy life so our target is to make there mentality

to be calm as well as make them free from irritation. These types of project are very

much popular in Newyork, Japan like big countries.

6.2 Competition

Several beauty parlours and vedic villages in eastern zone.

6.3 Target Clients

Our main target clients are high & Middle class families.

6.4 Marketing Strategy

The Marketing Strategy will be advertising in the media and by discount coupons

delivered to the companys employees.

7. MANUFACTURING PROCESS

7.1 Technical Know How Availability

Books related to ayurvedic, books related to management, yoga therapies , forest

management.

7.2 Step by Step Description

1) Select a natural place where cool atmosphere is there. When people will

come here they should fill like a different life.


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2) Natural cottage will be made such that people will feel calm as well as for

yoga.

3) Parks will be there for entertainment.

4) Herbal treatment center will be made.


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8. PRODUCTION SCHEDULE

8.1 Number of Working Days per Annum

The spa will remain open for all days.

8.2 Number of Working Shifts

Since it is a service based on refreshment , so only one working shift is required.

8.2.1 Service Revenue

Year Items Quantity

Sold / Year

Rate Per

Unit

(%)

Sales

Realization

(Rs)

1 Service NA NA 50,00,000

8.2.2 Utilities

Sr. No. Particulars Annual Expenditure(Rs) Remarks

1.

2.

3.

Power/Electricity

Water

Any other item

1,00,000

10,000

50,000

Total 1,60,000


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8.2.3 Man Power (Salaries/Wages)

Sr.

No.

Particulars No. Wages/Salaries per

Month(Rs.)

Annual

Expenses(Rs)

1.

2.

3.

4.

Skilled

Semi Skilled

Unskilled

Office Staff

10

15

20

5

8,000

5,000

2,000

10,000

9,60,000

9,00,000

4,80,000

6,00,000

Total 29,40,000

8.2.4 Repairs and Maintenance

Sr.

No.

Particulars Amount(Rs)

1 Machineries 20,000

2 Fixed Assets 50,000

Total 70,000


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8.2.5 Selling and Distribution Expenses

Sr.

No

Particulars Amount(Rs) Remarks

1.

2.

Marketing Expenses

Traveling

Total

1,00,000

60,000

1,60,000

8.2.6 Administrative Expenses

Sr.

No

Particulars Amount(Rs) Remarks

1.

2.

3.

Stationery & Printing

Post/Telephone/Telegrams

Entertainment Expenses

Total

20,000

50,000

20,000

90,000

8.2.7 Interest

Year Outstanding

Loan Amount (Rs)

Interest Installment(Rs) Balance(Rs)

1 40,00,000 2,80,000 1,00,000 41,80,000

8.2.8 Depreciation

Sr.

No.

Type of Asset Cost of Asset Expected Life Depreciation

1 machineries 2,00,000 5 20,000

2 Fixed Assets 3,15,000 5 31,500

Total 51,500

8.2.9 Misc. Expenses


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Sr.

No.

Description Cost

1. Purchasing Medicines 40,000


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A.

B.

i)

ii)

iii)

iv)

v)

vi)

vii)

viii)

C.D.

Services Realization

Cost of Manufacturing/

Servicing

Utilities

Salaries/Wages

Repairs & Maintenance

Selling & Distribution

Expenses

Administrative Expenses

Interest

Depreciation

Misc. Expenses

Total

Gross Profit/Loss(A-B)

Income-taxNet Profit/Loss

50,00,000

1,60,000

29,40,000

70,000

1,60,000

90,000

2,80,000

51,500

40,000

37,91,500

12,08,500

4,02,835

8,05,665

10. BREAK EVEN POINT

Break Even Point =Fixed Cost* 100/(Fixed Cost + Profit)

= 18,55,000 * 100/(18,55,000 + 12,08,500)

= 60.55


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11. CHALLENGES AND DECISIONS

As an entrepreneur, we made many decisions before launching and managing a our

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?

12. FUTURE PLANNING

Our future planning is to make our business globalize almost all the parts of

India, and so world.


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We want to transform our herbal spa to a vedic villages providing natural

atmosphere, herbal treatment of many diseases, yoga centre, gym and beauty

services.

We are planning to double our budget within next five years.

The most extensible features of our business will be e-business i.e. business

through online business.

We will try to provide fast and quality service by home delivery to our

customers.

The quality of product is planned to be increased exponentially.

13. CONCLUSION

This herbal spa situated at Kalahandi, koraput, Jeypur has built its own impact in thehearts of its customers by providing them with high quality services. We can ensure

our customers that over the last few years, herbal spa has grown both organically and

inorganically by creating natural environment within some limited area & providing

natural atmosphere, herbal treatment of many diseases, yoga centre, gym and natural

parks. Herbal spa has created a special niche for itself as a value and lifestyle retailer.

The basic values which drive us are,

Respect for the Individual

Service to our Customers


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Striving for Excellence

Friendly Environment.

Herbal Spa in Orissa 34

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