F&H Business Plan (V - 0) - 20170810

Running head: Business Plan of F&H 1
Business Plan
Fresh and Healthy Lunch Box
F&H Kitchen
Hledan, Yangon
Team Members
1. Ko Myo Min Swe
2. Ko Kyaw Zin Linn
3. Ko Moe Thet
4. Ma Tin Sweet Sweet Yin
5. Ma Thet Htar Swe
6. Ma Eindray Aung
From MBA Batch – II (Myanmar), Stamford International University
This business plan is intended to submit as project assignment for Entrepreneurship

subject in Stamford International University’s MBA program.
Submission date – 08 August 2017
Instructor
Dr. Adam Thompson , Stamford International University

Business Plan of F & H 2
Contents
Executive Summary......................................................................3
About F&H...............................................................................................................................................3
Analyzing the Industry.............................................................................................................................3
Management Team.................................................................................................................................3
Marketing Strategies...............................................................................................................................3
Financing and Funding............................................................................................................................3
Value Proposition....................................................................................................................................4
Business Description.....................................................................4
Mission........................................................................................................................................................4
Vision...........................................................................................................................................................4
Goals............................................................................................................................................................4
Objectives....................................................................................................................................................4
Summary of overall strategic direction........................................................................................................4
Reason for starting F&H business............................................................................................................5
Description of F&H product.....................................................................................................................5
Business model............................................................................................................................................6
The business models that will be used in F&H business are brick and click, and subscription.................6
Brick and click model...............................................................................................................................6
Subscription model..................................................................................................................................7
Membership............................................................................................................................................7
Value proposition.........................................................................................................................................7
Industrial Analysis........................................................................8
Product feasibility analysis......................................................................................................................8
Target market feasibility.........................................................................................................................8
In-direct competitors...............................................................................................................................9
Direct competitors.................................................................................................................................10
Industry size, Segments and Maturity...................................................................................................11
SWOT Analysis............................................................................ 12
Strengths....................................................................................................................................................12
Unique fashion-conscious experience....................................................................................................12
Environmentally responsible.................................................................................................................12
Health‐conscious menu.........................................................................................................................12
Weaknesses...............................................................................................................................................12
Low brand‐recognition in the local market............................................................................................12
Control over suppliers............................................................................................................................12
Opportunities.............................................................................................................................................12
First‐mover advantage..........................................................................................................................12
Booming economy in Yangon and increased disposable income...........................................................12
Unsaturated market..............................................................................................................................13
Threats.......................................................................................................................................................13
Entrance of other industry leaders........................................................................................................13
Popularity of food‐style.........................................................................................................................13
Management Plan.......................................................................13
Organization Chart.....................................................................................................................................14
Other Stakeholders....................................................................................................................................15
Professional Service Firms.........................................................................................................................15
Marketing Strategy.....................................................................16
Marketing & Sales Plan..............................................................................................................................16

Overall Marketing Strategy........................................................................................................................16
Marketing Objectives............................................................................................................................16
Target Market Strategy.........................................................................................................................16
Unique Selling Proposition.....................................................................................................................17
Positioning Strategy..............................................................................................................................17
Positioning Statement...........................................................................................................................17
Value Proposition..................................................................................................................................18
Marketing Mix............................................................................................................................................18
Product..................................................................................................................................................18
Price......................................................................................................................................................18
Place and Distribution Channels............................................................................................................18
Promotion.............................................................................................................................................18
Sales Management....................................................................................................................................19
Marketing Budget Plan..............................................................................................................................19
Operations Plan..........................................................................20
Geographic location...................................................................................................................................20
Floor Plan..............................................................................................................................................20
Day-to-day general operation...............................................................................................................21
Supply Analysis..........................................................................................................................................22
Food Products........................................................................................................................................22
Equipment and Other Supplies..................................................................................................................22
Service Providers.......................................................................................................................................22
Accounting and Legal............................................................................................................................22
Information Systems and Technology...................................................................................................22
Total Quality Management........................................................................................................................22
Working Capital Planning and Management.............................................................................................23
Accounts Receivable..............................................................................................................................23
Inventories.............................................................................................................................................23
Accounts Payable..................................................................................................................................23
Cash Conversion Cycle...........................................................................................................................23
TIME SCHEDULE....................................................................................................................................23
Financial Plan.............................................................................25
Source of Initial Financing..........................................................................................................................25
Sales Forecast............................................................................................................................................25
Income Projection......................................................................................................................................27
Capital Budget............................................................................................................................................29
Bibliography...................................................................................................30
Fresh and Healthy Lunch Box

Business Plan
Executive Summary
The purpose of this business plan is to raise MMK 52 million for the development of a
lunch/meal box delivery service, F&H lunch box that will produce the quality food products
for meals and deliver to the customers in its targeted market. The company was founded by
six team members who are Ko Myo, Ko Kyaw Zin, Ko Moe, Ma Sweet, Ma Thet, and Ma
Eindray.
About F&H
F&H kitchen will be located near our first priority target market which can give the
benefits of time saving to deliver, easy access, and convenient surrounding for a kitchen.
The customers can also come and observe the kitchen to see how it is working
professionally and how clean & safe foods can produce from F&H kitchen. Because the
problem to start F&H lunch box business is coming up from the dissatisfaction on outside
food quality, especially not safe food and hygienic, and time consuming in road traffic,
and hard to carry a food carrier. If the people can throw away those problems, their lives
will become healthy and happy. This is about our vision of the business and shows how
will we be able to achieve this vision.
Analyzing the Industry

There has very big substantial market potential in our first priority target market region in
which MICT Park and its surrounding. Only MICT Park has around 150000 employees
and most of them are willing to get a quality lunch box according to our survey, we will
provide that kind of lunch boxes within affordable price range for every segment with the
gross margin of 46% to 53%. The estimated market growth will also be more than 35%
each year based on the employee population and sales forecasts.
Management Team
F&H team members are well educated and they know how they can control to get the
quality of food to produce in every single steps. More over, they have well background
experience in their management positions.
Marketing Strategies
F&H marketing will be especially based on online marketing by using website, mobile
app, and facebook page. Only two marketing and sales staffs will conduct all marketing
and sales strategies according to F&H marketing manager. The biggest expense in F&H
operating cost is marketing. The business model will be based on “brick & click” and
“subscription” models.
Financing and Funding

70% of initial investment funding will contribute from six team members of F&H
founders, 10% will be seeking from commercial loan with 14% interest rate under SME
loan program. The rest 20% will need to raise from an outside investor. Payback period
will be 26 months from the starting of the business. The breakeven sales units per day is
162.
Value Proposition
F&H will provide fresh and healthy meals along with clean and nutritious for your daily
life. Our motto is “Enjoy F&H, All Stress Out!
Business Description
Mission
• Easing the hardship, stress when it comes to order food in times of need
• Offering the healthy food service so as the lessen food-related diseases these days
• Keeping updated with the current market trends and customers’ demands
• Maintaining an economic balance of the business
Vision
All the lives would be happy, be success, and be wealth by eating incredible nutritious
meal without any stress on foods.
Goals
• Customer Trust & Satisfaction
• Promote Healthy Lifestyles
• Flag-ship in Online Food Services
• Affordable Prices for Every Communities
Objectives
• Build strong CRM.
• Provide Professional Training to Employees
• Invest in Updated Technology
• Collaborate with better standard supplier
Summary of overall strategic direction

F&H would be carefully set up the business by building strong CRM, providing
professional training, investing in updated food technology, and trying to get standard suppliers
to sustain the business in long term period by passing through every single business Goals to
reach our vision.
Reason for starting F&H business

The reason to start this business comes up from dissatisfaction of the quality of foods that
we can get easily at outside in our daily life. Now a day in Yangon, most of the people are
relying on outside foods for their lunch in every day because they earn their living at far away
from their homes. Having a good meal at outside is very unlikely for everybody. Good quality of
outside foods means it can provide clean and sufficient amount of nutrition to a human body. It is
also needed to be fresh. Most of the restaurants and street food suppliers in Yangon could not
give a good quality of food, some street food are very dirty, and their cooking process from start
to end are very poor standard for the food to eat. They cannot control the raw materials quality
also. Some of the raw materials suppliers are using artificial and chemical to get longer lifetime
of their materials, and those chemical are not to use for food. Seth A., (Nov 2014), has stated in
his news as he wondered if somebody definitely say that all the food available in Yangon is safe
and hygienic. This means that all the food that we can get in Yangon is not safe and hygienic.
Seth A., (Nov 2014) has also stated that food hygiene seems linked to the country development,
and so the people in food industry are sill needed to educate more awareness about the provision
of neat and clean food preparation and about the food hygienic.
Scattergood G. (Oct 2016), has described in his news as Dr. Nwe New, head of
cardiology at Yangon General Hospital, said that more people have coronary artery disease,
stroke, and renal failure then ever before which is the result of poor life style and consumption of
stall is high in Myanmar, with people preferring to eat preserve food with a high stall content.
Myanmar has identified five nutrients deficiencies as major nutritional problems as according to
country’s health ministry. Based on those data the people in Myanmar need to change their life
style especially in eating as soon as possible.
There are about three reasons to find a quality food at outside: (1) the money, (2) the traffic, and
(3) the time. Some restaurants can give customers satisfaction but the price is too high, the
normal people with normal income, middle income, could not use that amount of money. For
some people, they can use the money but the restaurant that they want to eat is too far away and
they need to across the traffic jam so they cannot reach there in reasonable time. For those
reasons it is very hard to find a good quality healthy food at outside and it is a very big problem
right here.
Description of F&H product

One of a big opportunity is come out together with the above problems. Every body
seriously required a good quality of food in time for their daily life. F&H lunch box delivery
business is born to fill in this big gap. F&H lunch/meal boxes will provide correct amount of
nutrients by followed through the whole food hygienic processes in the every single steps of food
preparation from buying materials to delivering the consumers.
Seth A., (Nov 2014) has described that the hygienic food can be defined as “the set of
basic principles employed by food operators at all stages of food handling to ensure that food is
safe for humans to consume and is of good keeping quality”. This is also the first priority for
F&H. According to F&H objectives, we will train the employees to get more knowledge on good
food hygienic. Which includes removal of dirt, germs, and other contaminants on the food in
every stages of food handling such as production, preparation, storage, and presentation. This
training will have to provide the employees before the business is started to operate. Identifying
good quality of raw material suppliers is one of the major characteristics of F&H.
F&H lunch/meal boxes will be categorized into four groups that depending on their
prices, and there has each separate menu in each group. According to Myanmar food culture
cooking process and the menu is a little bit different from other ASEAN countries, so that the
food operator need to be classified its menu based on the kind of meat such as fish, prawn, pork,
chicken, etc. The categories of F&H lunch/meal boxes are premium meal, regular meal, regular
curry, and vegetarian. The amount of each kind of nutrients content in each lunch/meal box will
be defined on its packaging such as calories in kcal, carbohydrate in gram, fat in gram, and
protein in gram. So the consumer will know what kind of nutrients are involved how much many
in this meal and then they can adjust their required amount of nutrition. The result is that they can
change their life style by F&H and can get healthy life.
In the premium meal, F&H will provide first class of meat in the main dish and only olive
oil will be used for every dish. Much more variety of vegetables, beans and stem rice will be
included in this set menu. Normally, the consumers can choose from at least two menus in this
category.
In the regular meal, F&H will provide middle class of meat in the main dish and suns oil
will be used for every dish. The rest criteria are the same as in premium meal and the different is
only in oil usage.
In the regular curry, F&H will provide middle class of meat in the main dish and suns oil
will be used for every dish. All of the rest criteria are the same as in regular meal except steam
rice. Steam rice is not included in this kind of menu.
The last one is vegetarian, this set menu is especially intended for the vegetarian and in
which much more vegetables and beans will be provided by F&H.
Business model
The business models that will be used in F&H business are
brick and click, and subscription.
Brick and click model

F&H will have to create its web site to get so many benefits for the business such as
improving advertising effectiveness, save money on printing and distribution costs, easy access
to new customers, easy to use and update, improving productivity, can educating to the
customers, getting two way communication, etc. All food processing are doing in offline and
receiving the orders from the customers has to be done by online, and then deliver the lunch/meal
boxes to the customers. This is very easy access way to the customers, and the communication
between customers and F&H is too easy. The customers can find his required meal in the menu
on our website and he will get his desire meal by just clicking online. F&H will develop a mobile
app to do easiest access way with the customers. They can make order and payment by using this
app on their mobile phones.
Subscription model
The customers must have to pay subscription fees to access F&H products. The
subscription fees can be paid both ways online and offline. F&H business will be linked to the
banks and customers can make all the payment online. The benefits are time saving, no need to
carry the cash, no need to go anywhere for a meal. For some customers, if they don’t have mobile
banking system they can come to F&H pay subscription fees and can enjoy F&H. The basic
subscription fees would be started from 15000 MMK up to unlimited amount. F&H subscription
model is very flexible because the subscriber can order by just clicking on his mobile application
in one day ahead, and don’t need to order for every day.
Membership
Membership is one of the benefits for the subscribers. If a subscriber has been ordered
until F&H’s target quantity in a month, this subscriber will become F&H member. Those
members can have a chance to get the discounts from 2% up to 5% bases upon their reached
target order quantities. The memberships would be classified into silver and gold. There is
another way to be F&H member for the customer who does not have the experience with F&H,
they can pay membership fee and getting all the benefits equal to silver membership criteria but
the membership fee is not returnable.
Value proposition
Providing fresh and healthy foods with clean and sufficient amount of nutrition in every meal for
every person is the value proposition of F&H business. Our motto is “Enjoy F&H! All stress
out!”
Industrial Analysis
Product feasibility analysis
All team members were tried to collect some information and data about eating lunch from
employee community who are working around Yangon. We have prepared a survey
questionnaire and print it out about 200 copies to answer on this paper. We were using two ways
to collect the survey data they are requesting to answer on the survey questionnaire paper and
online survey by using survey monkey website. Around 110 persons were feedback their
answers. We got the survey data as below:
Sr. No. Survey Question Feedback from employee community

How do you usually have you lunch Home Outside Other 35% relied on outside
1 from? Home or outside? 67 persons 39 persons 4 persons food.
What is your perspective on the outside Clean Not clean Other 63% feels not clean on
2
food cleanliness? 41 persons 69 persons 0 person outside food.
What is your perspective on the outside Healthy Unhealthy Other 82% feels unhealthy on
3
food healthiness? 18 persons 90 persons 2 persons outside food.
Do you satified your existing lunch box Yes No Other 35% are unsatisfied on
4 service? 19 persos 38 persons 53 persons their lunch box service.
Needed No need Other 92% are needed clean and
5 Do you need clean and healty lunch box?
101 persons 9 persons 0 person healthy lunch box service.
Do you prefer one day advance Yes No Other 45% prefers to order one
6
ordering for your lunch? 33 persons 40 persons 0 person day advance.
Are you interested to use subscription
Yes No Other 73% are interested to use
7 model for your lunch box ordering
81 persons 28 persons 2 persons subscription
service?
Do you prefer to use a mobile app to Yes No Other 88% are prefered to use
8
order your lunch? 98 persons 13 persons 0 person mobile app.
Table 3.1 Survey Data Analysis
As according to the above survey data 35% of employment community is relying on outside food
in which minimum 35% of them are not satisfied to their existing lunch box services.
Target market feasibility

According to telephone conversation with our close friend, U Aung Naing Oo, admin manager of
Suntac Technology Company, said that their company is located in MICT Park Yangon with the
total employee quantity of around 250 persons. He also informed us as around 150 companies are
located in MICT Park, and the estimated total employee quantity in this park is around 15000
persons. Our survey data has been shown that 35% of the employee community is relied on
outside foods. If we find out how many employee will be relying on outside food by using those
data, the final result would be around 5250 employees in MICT Park are relying on outside food.
In which 35% of them are unsatisfied on their existing outside food. So that about 1837 persons
are facing with unsatisfied to their lunch. Based on this figure, our primary target would be
heading to the customers in MICT Park.
The food or lunch box delivery industry is old but the quantity of quality food operators is not
sufficient to supply the market demand. The people who want to have the quality food products
are increasing day by day. The gross profit margins of the lunch box production are from 40% up
to 50%. The availability of raw materials is not too hard to find but purchasing process has to be
done carefully to get the required standard of raw materials as needed.
Some companies are very big corporation such as ACE, Ericsson, etc. Our target market is
initially based on the employee communities of MICT Park and then F&H’s target market will
continue to move to Hledan Center, Myanmar Plaza, and Pale Condominium. Too many
international corporations such as Ooredoo Myanmar, Huawei Technologies (Yangon), etc. are
also existed in Myanmar Plaza and Pale Condominium. The estimated employment quantities in
each corporation would be around 400-500 persons in Yangon. So the market demand would be
so substantial.
Organizations are operating in competitive market and facing more difficulty for retaining its
clients. According to the business growth and presence of infrastructure are directly related. Lack
of infrastructure is also affecting business growth for Lunch Box. However survey among
customers, business owners, is showing that the organization will be able to increase revenue if it
can deliver foods to customers at their offices. As most of the customers work in office, making
an online ordering will be easy for them.
If they do not need to go outside for taking lunch, they will be able to save valuable time during
office hours. The current survey reflects that customers of F & H need an online platform where
they will be able to order foods. The platform will also be able to accept payments made by
customers. Moreover, it will provide customers with updated information regarding menus and
will collect their feedback on products. In case of any online application, security is the most
important factor. F & H management needs to ensure that their online system is secured to attract
its clients. Most of customers wish to use the Application software for ordering.
Most of the customers of F&H are office-workers and they want foods to be served in less time.
Analyzing requirements of customers, F & H management can include features of online
shopping, communication interface, e-payment facilities and newsgroups. Online shopping and
payment: Online platform of F & H kitchen should include the features of online ordering and
online payments. Organizations which conduct trading activities on internet has excellent
opportunity for informing buyers regarding their new product. Online ordering and payment
making facility can provide F & H competitive advantages as it results time-efficient trading.
Every day the restaurant requires serving large number customers. However, the restaurant has
no place where its customers can seat. It indicates that customers of this organization need to
spend significant time for buying food. On other hand, as most of its customers work in office, it
is not possible for them to wait for long time. There are other restaurants present in that area and
the number of new restaurants is increasing continuously. Current survey shows that the market
is highly competitive in nature and competition will increase in future also.
In-direct competitors
Some of successful restaurants like YKKO and Oriental House are existed in MICT Park. One
meal/lunch from those restaurants is worth about 4500 MMK for minimum price. A canteen is
also existed, and around 4 to 5 Myanmar traditional restaurants are at there and the quality of
food is with poor standard. The price per meal is around 2000 MMK or may be much higher. But
they do not deliver their lunch to the consumers.
Thiha (Sept 2016), has described that the growth of Yangon Door2Door food delivery service
has been substantial since they had partnered with 28 restaurants in July 2015 and now there are
more than 60 across Yangon. Their business is collecting the food from their partner restaurants
and delivering to his customers. According to Thiha (Sept 2016), data there are over 100 meals to
deliver on average on each day. The customers are much easier to find Door2Door service by
using mobile app on smartphone and ability to order directly through their Facebook page as well
as their web page with Myanmar Language Version. Door2Door service is a indirect competitor
for F&H because the difference is Door2Door deliver the food from their partner restaurants and
F&H deliver its own food.
Direct competitors
For the lunch box delivering service there are three major competitors, they are Khine Khine
Kyaw, Daw Saw Yi, and Shwe La Min. They provide their service as a subscription model. If the
customers want to get their lunch box, they have to pay minimum for 30 lunch boxes in advance.
They don’t use any online ordering and the customers cannot find easily them but they have been
operating their business for more than 20 years. Their brands are well known among the people
who live in Yangon and their business is sustainable.
Subcription Estimated
Price Ordering
Business Name ServiceDescription Qty. UOM Fees lunch box
(MMK) System
(MMK) per day
PremiumMeal
One day ahead,
Burmese curry including meat,
4,500 1 Boxes 15,000 Mobile App, 40
F&H vegetable salad, beans, fish
Faceebook,
sauce & paste, with steam rice
Website
Delivery Charges Free Times Free
Regular Meal
One day ahead,
2,800 1 Boxes 15,000 Mobile App, 199
Faceebook,
sauce & paste, with steam rice
Website
Regular Curry
One day ahead,
2,400 1 Boxes 15,000 Mobile App, 135
Faceebook,
sauce & paste
Website
Vegetarian Meal One day ahead,
Vegetable salad, beans, fish 1,600 1 Boxes 15,000 Mobile App, 30
F&H
sauce & paste, with steam rice Faceebook,
Delivery Charges Free Times Free Website
Table 3.2(A) Major Competitor Analysis

Competitors
One day ahead,
fried vegetables, vegetable soup 2,600 30 Boxes 78,000 500
Khine Khine Kyaw No Mobile App,
and fish paste, without rice
No Online
Delivery Charges 850 30 Times 25,500
One day ahead,
Daw Saw Yi No Mobile App,
No Online
Delivery Charges 1,000 30 Times 30,000
One day ahead,
Shwe La Min No Mobile App,
No Online
One day ahead,
Shwe La Min No Mobile App,
No Online
Table 3.2(B) Major Competitors Analysis
One of the advantages of F&H is lesser subscription fee than other major competitors for the
customer. The subscription fee of F&H is started from 15000MMK up to unlimited amount as
the customer’s desire. The customer can order their lunch after they have been paid the minimum
amount of subscription fee and no need to use too much money for its first order. Another
advantage is flexible in ordering system than others. The customers can order day by day basic,
for example - if he has plan to have F&H lunch box on the next day he can order today, if he has
no plan to have F&H lunch box on the day after tomorrow, no problem don’t order for that day.
The customer can order by using facebook, or mobile app, or F&H website is another advantages
of F&H. It is too easy to order and a good meal will arrive near by them.
Industry size, Segments and Maturity

Thiha, (June 2015), has described that Yangon has population of over 5 million people in which
2.6 million are employee. According to our survey data, 35% of employees are relying to outside
food, so that the total population relying on outside food in Yangon is around 1 million. It can
easily be seen that Yangon has a very big substantial market for food delivery service.
Our aim is to provide the consumers with mid‐range income level an additional option for lunch
and dinner fare. Please refer to “Marketing Strategy” for more details on our targeted consumer.
Therefore we are positioning our establishment to fill a niche market for clean and healthy
Myanmar‐style cuisine. We are differentiated from our competitors due to our focus on
environmental responsibility, health‐conscious menu items and exciting live kitchen.
SWOT Analysis
Strengths
Unique fashion-conscious experience
Customers are able to watch the Wok‐chefs freshly and quickly prepare their food over live
flames which will add to the excitement of healthy Myanmar cuisine experience. The F & H
offers a unique fusion fashion-conscious blending the flavours of Healthy Myanmar cuisine.
Environmentally responsible
The F & H vision is in line with the current trend in Yangon towards environmental awareness.
Currently the city wishes to reduce their daily household waste. That is why, all of our packing
can be recycled.
Health‐conscious menu
The F & H’s health conscious menu items are in line with the current trend towards health
awareness. All of the menu items are low in fat and are prepared with fresh natural ingredients,
promoting health and well‐being. Low‐carbohydrate options are also available, distinguishing us
from the “full fat” fast food chains.
Weaknesses
Low brand‐recognition in the local market
Currently in our environment, there just begin “The F & H” kitchen. The zero‐brand‐recognition
imposes a challenge to the business and more local marketing efforts will be needed to create
awareness.
Control over suppliers

We are required to buy materials from approved suppliers.
Opportunities
First‐mover advantage
There is not too famous Lunch box, healthy Myanmar cuisine, delivery for lunch time in Yangon.
By opening the healthy Myanmar cuisine Kitchen in Yangon, we are able to capture the first‐
mover advantage in this segment.
Booming economy in Yangon and increased disposable income

Our F & H is one of the few provinces that have shown growth during difficult economic times.
Yangon is the largest city in the province of Myanmar.
Unsaturated market
The market is unsaturated. This inflexibility with F & H standards may prove to be a hindrance
if we are unable to find economical suppliers in the local region.
Threats
Entrance of other industry leaders
The biggest threat to The F & H is the entrance such as brick and click. With an unpredictable
economy, people are trending towards mid‐range healthy Myanmar Cuisine experiences and food
that can be enjoyed at home for a lower cost.
Popularity of food‐style
Another risk is the popularity of Myanmar cuisine for lunch times. This risk has been mitigated
through the intensive surveying and consumer research that we have conducted prior to this
proposal. Please refer to the survey results table.
Management Plan
F&H lunch box business is founded by a group of people who are very interested to solve the
food problems which is existed in Myanmar. The founders are Ko Myo, Ko Kyaw Zin, Ko Moe,
Ma Sweet, Ma Thet, and Ma Eindray. They all are shareholders of F&H business and are decided
to form the ownership as Limited Liability Company (LLC).
One of the reasons to form a limited liability company is that the members have liable to pay
only up to their investment amount when the debts and obligation issues occurred in the business.
This prevents their profits from another business from being deducted, and can provide security
for the possessions and other incomes of the members if they have any.
There has no double taxation in LLC because the profits are taxed only on the shareholders level
The tax issue for LLC is different too much from sole proprietorship and partnerships in which
the double taxation is unavoidable. The taxation flexibility in LLC is a great relief for every
startup business.
The company registration procedure can be done by with or without attorneys. The numbers of
shareholders is unlimited. So the founders can easily add new partners or sell the entities as they
needed after setting up the company.
Organization Chart
Organization Chart of F&H Business
Board of director of F&H is organized by all team members. The responsibilities of BOD are to
setting up the company’s strategic direction, goals, objectives, vision, and mission. The board of
director is appointed to act on behalf of shareholders to operate the company’s day by day
business plan. The board are accountable to the shareholders and the company will hold the
monthly meeting at which managing director will have to provide performance report to the
board. Then the company’s new future plans and strategies are also approved by the board.
Managing director and all other management persons have responsible to implement the new
future plans and strategies for the company. The Committee will meet monthly during the first
year of the business and then on a quarterly basis or as needed. The chairperson of board member
will facilitate these meetings, providing an agenda and disseminating meeting notes and ensuring
follow up of action points.
The members are assigned as each respective position as in the organization chart. Their
background experience are very strong in the related assigned position and job descriptions.
The main responsibility of managing director is leading and controlling the company to achieve
F&H future plans and strategies. All the managers of the F&H will support the managing director
to solve each specific issue which is related to the respective department.
The main role of Business development department is to create the new business opportunities
and more improving sales and marketing strategies for the whole business. This department has
to connect with most other department for manage for periodical operations, financing, selecting
supplies and connecting with advertising and making public awareness of the respective
business. All the employees in the business development department must have the well
knowledge of business, including marketing, sales, advertising and business plans.
The operation manager is responsible for the daily operational activities, including the
purchasing of raw materials, kitchen management, collecting orders, delivering and human
resource management. For the inventory management, there will employees in charge for the
control of daily and weekly stock control so as to manage a better use of fresh and good
ingredients in every lunchbox F & H delivers. The operation manager should have enough
experiences in managing different kinds of departments for quite some several years.
The finance manager is mainly responsible for the ease financial flow, including budget, profit
and loss control, income statement, expenses, salaries and wages.
Other Stakeholders
The stakeholder groups can be classified into two groups: primary and secondary stakeholders.
The primary stakeholders are
1. The owners or the founders of F & H

2. Shareholders (we still don’t sell stocks now, but it is one of our long term plans)
3. The staffs and the manages as mentioned in the organizational chart
4. The customers, including regular, potential and loyal customers
5. Suppliers for raw materials and packaging materials
6. Bank, in case we get the loans from the local banks
7. Food and Drug Administration of Myanmar (FDA)

As we have to request approvals from Food and Drug administration for permits, local
government can also our stakeholders.
Secondary stakeholders are local residents, competitors and media.

Competitors include both direct and indirect competitors. Indirect competitors are some food
restaurants that offer a variety of food. Direct competitors are the restaurants that offer delivery
services.
Our advertising plans are main aims for digital advertising; we need to have good connections
and relations with the media having large number of audiences and customers. Internet
connection is also a stakeholder of F&H business.
Professional Service Firms

Period trainings for the employees, including for quality management, customer service and
operation management are conducted, with the help of the professional training services by
outsourcing. Relevant rewards are given when tests and drills are made after every training
program.
Legal issues are compulsory for F & H, although such food delivery business does not really
require many legal considerations and steps in other kinds of businesses. However, attorneys are
chosen to raise money and the protection of intellectual properties. Checking the past reputation
of the attorneys is accomplished, so as for the better manipulations and specialization of
obtaining business license and permits from city or country, trade secrets, patents, trademarks
and copyrights such as logos. LLC cannot always require attorneys to do business yet with the
help of attorneys, setting the necessary standards and making agreements and contracts will be a
lot easier with the help of qualified attorneys.
Writing the founders’ agreement needs many steps, the first of which is nature of the business,
here in this case is lunchbox delivery service. The second fact is the respective title and positions
of the founders, which will be followed by their experiences and qualifications in brief.
The types of ownership and the division of ownership will be described (For our business, the
ownership is LLC and we have not sold the stocks to the public yet.)
Intellectual property of the business has to be protected in the agreement, along with the
complete description including the logos and slogans.
Last but not least, initial operation capital and the divisions of the profits have to be shown in the
agreement.
Marketing Strategy
In order to determine our targeted consumer, based on our surveying and preliminary research,
we determined that the majority of individuals surveyed have eaten Myanmar style cuisine. Of
the individuals interested in trying healthy Myanmar style food, the general population was
females aged 20‐49 with incomes under MMK 2,500. The most common fast‐food establishment
these individuals frequented was subway which indicates they are looking for a healthier
alternative in their fast food. Based on our marketing research, we are targeting the following
consumers:
- mid range income persons
- families with children

- health conscious individuals
- business professionals
Therefore, our positioning in close proximity to the shopping centre, public traffic and office
establishment is an area of high traffic for our targeted consumer, making our location ideal for
success. As well, the location is ideally situated for individuals who work on and around
downtown who wish to order some take‐out during lunch.
Marketing & Sales Plan
Overall Marketing Strategy

Marketing Objectives
F&H aims to achieve the following marketing objectives alliance with the company’s corporate
vision.
- Develop brand awareness among existing and new potential customers through word-
of-mouth or word-of-mouse method.
- Increasing sales while reducing marketing expenses.
- Be the reliable market leader in lunch box delivery industry.
Target Market Strategy

F&H is dedicated to providing Lunch Box Delivering Service to those who are working and do
not have time to cook, to those who find it is not safe and healthy to eat from the restaurants
which are near from work or home. F&H not only delivers lunch boxes to individual customers
but it also accepts order and provides for corporate events. F&H values customers and look for
long-term relationship by offering Subscription facility where customers can get discount from
using the application.
F&H plans to start targeting individuals working near MICT Park compound and around Hledan
Township. Our future expansion is targeted to be around Bahan township, Yankin township and
Downtown areas.
Unique Selling Proposition

F&H differentiates itself from existing competitors in the market by making every meal
processed with cleanliness, by delivering on time and with sufficient amount of nutrition in every
lunch box. Customers can send order any day they like with F&H’s flexible ordering system
while the competitors offer only one option: the whole month ordering system.
Positioning Strategy
F&H will position itself as a food operator with reasonably priced lunch box, and which is also a
master in providing nutritious healthy meal daily. F&H tries to differentiate itself from its
competitors such KKK, DSY and SLM as a flexible ordering system provider. F&H is to position
itself as a reliable lunch box supplier for its valued customers.
Positioning Statement
Our target market and potential customers will recognize F&H whenever they see or hear the
slogan or simply in their mind as “Fresh and Healthy Everyday”.
Positioning Map of F&H in the Market

KKK- Khaing Khaing Kyaw
Value Proposition DSY- Daw Saw Yi
A Reliable Nutrient Meal Provider in the market. SLM- Shwe La Min
Marketing Mix
Product
F&H provides four types of lunch boxes; Premium Meal, Regular Meal, Regular Curry and
Vegetarian Meal. All four types are full with sufficient amount of nutrition, made under clean
process, produced from fresh raw materials and qualified supplies and can be ordered through
F&H application or F&H Facebook page. Our service includes readiness to deliver for the
customer who orders one day ahead to their desire place.
Price
As F&H positions itself in the market as high quality, reasonable price lunch box seller, there are
different prices for different types of products in order to match with the quality of the products.
The price ranges to 4500MMK, 2800MMK, 2400MMK from 1600MMK per lunch box
respectively to Premium Meal, Regular Meal, Regular Curry and Vegetarian Meal. F&H uses
cost based pricing and demand based pricing strategies.
Place and Distribution Channels

F&H is located in Hledan Township and from there, it will deliver the lunch boxes to the
customers. F&H provides delivery-service, thus, it uses the direct distribution channel to reach its
end consumers via two types of transportation such as cars and bicycles. Customers will be
provided with Subscription service where they can subscribe F&H lunch box just by clicking and
F&H team will process and deliver to their desirable place.
Promotion
F&H plans to sell about 230 lunch boxes per day within year one. In order to sell the targeted
amount every day, we believe that our promotion plan plays a major role. We will create F&H
Facebook page where all our menus are announced, advertise through posts and letting customers
like and share the posts and pages creating word-of-mouse atmosphere. We will only advertise
on our Facebook page. F&H will give benefits to its subscribed customers as sales promotion by
offering a chance to be F&H member. There are two types of memberships, silver and gold. The
silver member will get 2% discount on every food from F&H while the gold member will get 5%
discount. The F&H subscriber can be a silver member when its order quantity reached to 15
lunch boxes in a month as well as the quantity reached to 30 will be a gold member. Furthermore,
F&H approaches B2B market by personal selling where two sales people will visit to the offices,
handing out leaflets and explain our products and services. We also plan to use public relations
by offering free lunch boxes at pagodas on national special occasions. F&H will constantly
communicate to its existing subscribed customers via email, website, and facebook page to
introduce new menus.
Sales Management
F&H believes that Sales Management is important in order to achieve company’s target goals.
All marketing efforts will be in vain if sales management cannot be done properly. Both Sales
and Marketing are generating revenue mechanisms. Therefore, effective sales strategy, hiring
right sales team and motivating them to attain set objectives are core for F&H Sales Management
Plan. Two sales people will be hired under the Business Development Department especially for
initial sales approach to the targeted customers at MICT Park office buildings.
There are total 16 buildings in MICT Park Business Area which are targeted initially by F&H.
F&H’s sales approach is to let the sales team to visit each building, hand out leaflets and explain
about the products and services offered to working professionals who are working in each
building. 16 days will be spent one day for each building and 50 free lunch boxes will be given
free of charge to early subscribers. Another strategy is to boost the posts from F&H social media
Facebook page and website. Later, we are trying to build an application and the customers can
subscribe our products and services through it. F&H’s sales planning forecast for year 1 is to sell
398 lunch boxes per day within one year, for year 2 is to sell 660 lunch boxes and 774 lunch
boxes for year 3 to sell. In order to make our sales team fully motivated to reach the targets, we
are planning to give commission to the team for their success.
Marketing Budget Plan
Marketing Budget Plan year 1 year 2 year 3

monthly yearly monthly yearly monthly yearly
Start up fund for Marketing
Advertisingand Promotion
Initial Start up promotion plan for 16 days in Target Market area 4,800,000
Initial developing cost for Website, Mobile App, and Facebook page 3,000,000
Upgrading cost for Data Storage, and Website, and Mobile Apps (At (In Jan, Feb,
3,160,000 6,000,000
the end of year 1, Nov & Dec) March, May)
Discount for membership (2% of total revenue, paid at the end of
2,840,000 5,840,000 11,650,000
year)
13,800,000 11,840,000 11,650,000
Monthly fixed expense

Advertising (on facebook, website, leaflets, etc.) 150,000 1,800,000 154,500 1,854,000 159,135 1,909,620
Subscription fees for internet to use mobile app, website, & facebook, etc.) 150,000 1,800,000 154,500 1,854,000 159,135 1,909,620
Travelling allowance for sales and marketing team 700,000 8,400,000 721,000 8,652,000 742,630 8,911,560
12,000,000 12,360,000 12,730,800
Table 5.1 Marketing Budget Plan

Operations Plan
F&H Lunch Box will be structured as a limited liability company, and the office based Board of
Directors will provide guidance to management. Daily operations include preparing and cooking
customers’ orders; monitoring inventory levels; and overseeing financial and operational results.
Food ingredients, supplies, and equipment will be sourced from franchise‐approved suppliers,
whereas local firms will provide accounting, legal, and IT services. Lunch Box will also be
committed to quality through total quality management techniques.
The capital budget will comprise of equipment, and leasehold improvements. Working capital
management is not complex due to the nature of the business; for, example, the majority of sales
are from customer (i.e. monies are collected immediately) and most of the inventory is perishable
within a one‐week time frame (i.e. inventory turnover is approximately seven days).
Geographic location
F&H will be located around Hledan Meeting Point in Yangon (as per below figure) where
business premises are around there.
The main reasons for choosing kitchen location in there are
• Acceptable costs
• Big storage
• Density of population
• Centre of town, easy access to anywhere
Floor Plan
The F&H will be approximately 50 ft2, with the inventory, two kitchens, and reception areas
Alley will be between two kitchens and also be featured with clean and tidy décor as an open
kitchen. This serve as a unique feature as customers can come and witness that the chefs prepare
lunch boxes as per below detailed floor plan. Lastly, there will be a small office room used for
administrative purposes.
Preparation
Preparation
Food
Food
Washing/Cleaning
Washing/Cleaning
Alley
Cooking
Cooking
Meal
Meal
Figure: Decoration
Packaging
Office Reception
Figure: Floor Plan
Day-to-day general operation

F&H Lunch Box’s technical processes and procedures relate to the day-to-day general operations
(refers to below figure), including the preparation of customer orders. The WMIS (workplace
materials information system) training will also be provided for all employees.
Processing Order (Tele/Online)
Tele advice to customers

Order Receiving (Tele/Online)
Preparing Invoices
Online advice to customers
Measure customers‘ satisfaction
Transport orders to customer
Development of a web portal and online store
Preparing content for the portal
Real time processing
Transfer orders to customer
Keeping products in
Preparation of products Product packaging
appropriate storage
Supply Analysis
Food Products
In order to maintain the high‐level of quality of Lunch Box cuisine, F&H will use local suppliers
for food products. All proposed suppliers are required to go through a screening process and need
approval by Management Team since they will have to negotiate price arrangements with all
suppliers.
Fig: Choosing Food Product Suppliers
Equipment and Other Supplies
All equipment and general supplies will be provided by local franchise approved suppliers. Other
“Lunch Box specific supplies” such as Boxes, Spoons, and Recycle Bags will be chosen from the
locally produced factory due to the significant cost savings from economies of scale realized in
the production of these supplies.
Service Providers
Accounting and Legal
F&H Lunch Box will require accounting and legal services. A local accounting firm will provide
bookkeeping services and prepare financial statements on a monthly basis to help the managers
to evaluate financial results against budgeted figures. The accounting firm will also prepare the
income tax return. The local legal firm will provide various legal professional services as
required.
Information Systems and Technology

F&H Lunch Box will also require information systems and technology services such as systems
will be basic as we will require Point of Sale (POS) software, and one computer system for
operational, financial, and customer data. These systems will be maintained by a local IT firm.
Total Quality Management

Part of F&H Lunch Box is to “serve freshly prepared, high‐quality food”; thus, the quality of
food serves as a key success factor. F&H Lunch Box’s dedication to quality is evidenced through
the following aspects:
• Food Safety: F&H staffs are well-trained in Food Safety knowledge.

• Food Preparation: An extensive 10‐day training program held by international training will be
provided for management in preparation for the commencement of operations; specific days
during the training course will be set for the chefs along with management to learn the aspects of
preparing each dish. The managers will then, in turn, train the cashiers.
• Continuous Improvement: Internally, an open door policy will be promoted and all employees
will be encouraged to provide both positive and negative feedback to management. Anonymous
feedback forms will also be available. Externally, Lunch Box will provide feedback forms for
customers when we deliver as well as on the website.
Working Capital Planning and Management

Accounts Receivable
As the majority of sales will be collected instantaneously, accounts receivable will solely
comprise of customer accounts and catering clientele. These accounts will be invoiced on a
monthly basis and management will consistently monitor the aging of accounts.
Inventories
Inventories will consist of food ingredients. Given that the average shelf time for perishables is
approximately two to three days, food inventories are expected to turnover every seven days.
Both employees and management will be responsible for monitoring inventory items, and
management will place inventory orders on a daily basis.
Accounts Payable
Accounts payable includes payments to suppliers for inventory and operating expenses.
Management will also be responsible for monitoring accounts payable balances and ensuring
timely payment to vendors.
Cash Conversion Cycle

The cash conversion cycle (“CCC”) exemplifies the number of days that cash is occupied within
the process of converting raw materials into finished goods. The CCC is determined to be seven
days. Given the nature of Lunch Box Services in general, as explained above within “Accounts
Receivable” and “Inventories”, the CCC is not a primary concern for Lunch Box.
TIME SCHEDULE
The following table presents the plan of activities between January 2018 and December 2018,
which represents the first year of operation of the entrepreneurial team and company since the
beginning of the development and execution of sales.
Jan Feb March April May June July Aug Sep Oct Nov Dec
2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018
General activities
Proposal for the registration the company
Initial funding
Establishment of relationships with banks
Company registration
Supply of fixed assets
Select location
Purchase equipment
Development
System specification
Web portal / Mobile Application Development
Entry content into portal
Select suppliers
Test equipment
Sample Menu delvelopment
Training/Education
Manufacturing
Procurement of raw materials
Manufacturing and sales
Marketing
Marketing communication strategy
Preparation of promotion
Advertising
Entry of sales promotion
Financial Plan
Source of Initial Financing

There are six team members in the founder of F&H business. They contribute around 6 million of
MMK each in the initial funding of the business. As according to detail calculation, which is
based on the realistic data, the required total initial investment for the business is 52 million
MMK. F&H members have decided to get commercial loan from the bank at the interest rate of
14%. The required loan amount is 5.2 million MMK. Every SME can get until 20 million MMK
loan from the bank under SME loan program.
Required Start-Up Funds Amount Totals

Fixed Assets
Leasehold Improvements 7,500,000
Equipment 9,000,000
Furnitureand Fixtures 5,300,000
Total Fixed Assets 21,800,000
OperatingCapital
Pre-OpeningSalaries and Wages 3,000,000
Inventory 2,500,000
Legal and AccountingFees 400,000
Advertisingand Promotions 4,800,000
Licenses 2,500,000
Other Initial Start-Up Costs 3,000,000
WorkingCapital (Cash On Hand) 14,000,000
Total OperatingCapital 30,200,000
Total Required Funds $ 52,000,000
Sources of Funding Amount Totals

Owner's Equity 70.00% 36,400,000
OutsideInvestors 20.00% 10,400,000
Additional Loans or Debt
Commercial Loan (14% Loan Rate) 10.00% 5,200,000
Total Sources of Funding 100.00% $ 52,000,000
Table6.1 Required Start-Up Fund for F&H Business
Sales Forecast
F&H will provide four types of lunch boxes and are classified with the name as premium meal,
regular meal, regular curry, and vegetarian meal. Total yearly sales forecasts of each products for
theree years are as shown below tables, Table 6.2, 6.3, 6.4, and F&H marketing team will have to
try to achieve the sales forecasts. Our sales forecasts is calculated based on 26 days per month
because most of the people would be at their home on the holidays, so we deduct 4 days per
month for this reason. In April, there is a very long holiday as according to Myanmar culture, so
we forecast only 10 days for this month.
Year 1 Sales Forecast in Boxes

PremiumMeal Regular Meal Regular Curry Vegetarian Meal
Daily Monthly Daily Monthly Daily Monthly Daily Month
J an 10 260 47 1,222 32 832 7 182
Feb 13 338 59 1,534 40 1,040 9 234
Mar 13 338 59 1,534 40 1,040 9 234
Apr (Only 10 workingdays in this month) 16 160 74 740 50 500 11 110
May 16 416 74 1,924 50 1,300 11 286
J un 18 468 85 2,210 58 1,508 13 338
J ul 18 468 85 2,210 58 1,508 13 338
Aug 20 520 98 2,548 67 1,742 15 390
Sep 20 520 98 2,548 67 1,742 15 390
Oct 23 598 113 2,938 77 2,002 17 442
Nov 23 598 113 2,938 77 2,002 17 442
Dec 23 598 113 2,938 77 2,002 17 442
Total sales unit per year per each product 5,282 25,284 17,218 3,828
Maximum daily Sales unit per day forecast for all 230
Total Sales unit per year 51,612
Table6.2Year 1 Sales Forecastsin Unit

J an 26 676 130 3,380 89 2,314 20 520
Feb 26 676 130 3,380 89 2,314 20 520
Mar 26 676 130 3,380 89 2,314 20 520
Apr (Only 10 workingdays in this month) 30 300 150 1,500 120 1,020 26 230
May 30 780 150 3,900 102 2,652 23 598
J un 30 780 150 3,900 102 2,652 23 598
J ul 35 910 173 4,498 117 3,042 26 676
Aug 35 910 173 4,498 117 3,042 26 676
Sep 35 910 173 4,498 117 3,042 26 676
Oct 40 1,040 199 5,174 135 3,510 30 780
Nov 40 1,040 199 5,174 135 3,510 30 780
Dec 40 1,040 199 5,174 135 3,510 30 780

J an 46 1,196 229 5,954 155 4,030 35 910
Feb 46 1,196 229 5,954 155 4,030 35 910
Mar 46 1,196 229 5,954 155 4,030 35 910
Apr (Only 10 workingdays in this month) 53 530 263 2,630 286 1,780 63 400
May 53 1,378 263 6,838 178 4,628 40 1,040
J un 53 1,378 263 6,838 178 4,628 40 1,040
J ul 59 1,534 302 7,852 205 5,330 46 1,196
Aug 59 1,534 302 7,852 205 5,330 46 1,196
Sep 59 1,534 302 7,852 205 5,330 46 1,196
Oct 71 1,846 347 9,022 236 6,136 53 1,378
Nov 71 1,846 347 9,022 236 6,136 53 1,378
Dec 71 1,846 347 9,022 236 6,136 53 1,378

Income Projection
The income projection of F&H was calculated based on the sales forecast per year. According to
our estimated total net income which is still not reached to total initial investment in year one.
But the business operation is quite good. The business growth can clearly be seen in the below
financial statements.
Year One Year Two Year Three

Total Income 142,012,200 270,277,000 472,723,800
Total Cost of Sales 70,726,880 134,546,920 235,319,840
Gross Margin 71,285,320 135,730,080 237,403,960
Total Salary and Wages 38,160,000 39,304,800 40,483,944

Total Fixed Business Expenses 37,594,332 38,722,162 39,883,827
OperatingIncome(beforeOther Expenses) (4,469,012) 57,703,118 157,036,189
[EBITDA]
Other Expenses
Amortized Start-up Expenses 4,566,667 4,566,667 4,566,667
Depreciation 3,845,714 3,845,714 3,845,714
Interest
Commercial Loan 698,547 628,233 547,417
Taxes - 10,645,834 30,528,612
Total Other Expenses 9,110,928 19,686,448 39,488,410
Net Income (13,579,940) 38,016,670 117,547,779
Table6.5 ThreeYears IncomeProjection of F&H
1.1 Proforma Financial Statements

Total cashflow statements for three years
year 1 year 2 year 3

Total Cash In Flows 142,012,200 270,277,000 472,723,800
Total Cash Out Flows 153,650,589 239,069,093 359,035,599
Cash Flows (11,638,389) 31,207,907 113,688,201
Operating Cash Balance at December 2,361,611 33,569,518 147,257,719
Table6.6 Total Cash Flow Statements of F&H for ThreeYears
Balance sheets at year ends

In the annual cashflow statements, we put some fix expenses at the year end of 1st year
and start of 2nd year. That’s why we will need to upgrade our IT infrastructures to mitigate some
difficulties for online access from the customers. Another reasons to upgrade IT infrastructures
are for product promotion and online advertisements. The another expenses at the year ends are
for the discout payments to our members. Our business model is based on “brick and click” and
subscription models, in this model we have to try to give back some benefits to our customers. So
F&H is making a way to be a member for our subscribed customers, there are two types of
membership, silver and gold. Silver membership subscribers will get the benefits as 2% discount
ever while gold membership subscribers got benefit of 5% discount. In our financial plan, we
have already put those expenses in our financial plan.
BasePeriod End of Year One End ot Year Two End ot Year Two
Assets
Current Assets
Cash 14,000,000 2,361,611 33,569,518 147,257,719
Accounts Receivable - -
Inventory 2,500,000 2,500,000 2,500,000 2,500,000
Prepaid Expenses 10,700,000 7,133,333 3,566,667 0
Other Current 3,000,000 2,000,000 1,000,000
Total Current Assets 30,200,000 13,994,945 40,636,185 149,757,719
FixedAssets
Real Estate-Land - -
Buildings - -
Leasehold Improvements 7,500,000 7,500,000 7,500,000 7,500,000
Equipment 9,000,000 9,000,000 9,000,000 9,000,000
Furnitureand Fixtures 5,300,000 5,300,000 5,300,000 5,300,000
Vehicles - -
Other FixedAssets - 6,000,000 20,680,000 32,330,000
Total FixedAssets 21,800,000 27,800,000 42,480,000 54,130,000
Less: Accumulated Depreciation - 3,845,714 7,691,429 11,537,143
Total Assets 52,000,000 37,949,230 75,424,756 192,350,576
Liabilities and Owner's Equity

Liabilities
Accounts Payable - -
Loan Payable 5,200,000 4,729,171 4,188,026 3,566,067
MortgagePayable - -
Credit Card Debt - -
VehicleLoans - -
Other Bank Debt - -
Lineof Credit Balance - -
Total Liabilities 5,200,000 4,729,171 4,188,026 3,566,067
Owner's Equity
Common Stock 46,800,000 46,800,000 46,800,000 46,800,000
Retained Earnings - -$ 13,579,940.42 24,436,730 141,984,509
Dividends Dispersed - -
Total Owner's Equity 46,800,000 33,220,060 71,236,730 188,784,509
Total Liabilities and Owner's Equity 52,000,000 37,949,230 75,424,756 192,350,576
Table6.7 BalanceSheets at Year Ends (Year 1, Year 2, Year 3)
1.2 Breakeven analysis

Assumptions % Assumptions % Assumptions % Assumptions %
Price Per Unit 4,500 100.00% 2,800 100.00% 2,400 100.00% 1,600 100.00%
Variable Cost Per Unit 2,400 53.33% 1,400 50.00% 1,160 48.33% 700 43.75%
Gross Margin Per Unit 2,100 46.67% 1,400 50.00% 1,240 51.67% 900 56.25%
Fixed Costs Per Month 6,691,549

Overhead Exp Allocation 15.00% 50.00% 30.00% 5.00%
Overhead Expenses 1,003,732 3,345,775 2,007,465 334,577
Breakeven sales units per month 478 2,390 1,619 372
Breakeven Sales Units Per Day 16 80 54 12
Breakeven Sales Units Per Day (All Products) 162
Table6.8 Breakeven SalesAnalysis

Capital Budget
As described in table 6.1 the capital budget that we required to run F&H busniess is 52
Million Myanmar Kyats. 70% funding of total capital investment will come from all of the F&H
team members, Ko Myo, Ko Kyaw Zin, Ko Moe, Ma Sweet, Ma Thet, and Ma Eindray, and they
will raise their investments equally. 10% funding of total investment will come from commercial
loan and the interest rate would be 14%. 20% of total investment will need to be invested by
outside investor. F&H would like to seek 20% of total investemet with 10% equity form outside
investor which is worth 10.4 million MMK and the payback period would be 26 months from
starting the business.
Bibliography
Seth A. (Nov 2014). Title: Is food in Yangon safe and hygienic? Retrieved from
http://www.myanmarinsider.com/is-food-in-yangon-safe-and-hygenic/
Scattergood G., (19 Oct 2016). Title: Myanmar: Half of population over 40 has high cholesterol,
one-in-three has hypertension. Retrieved from http://www.nutraingredients-asia.com/Regulation-
Policy/Myanmar-Half-of-population-over-40-has-high-cholesterol-one-in-three-has-hypertension
Thiha (10 Sept 2016). Title: Yangon Door2Door – food delivery growing from strength to
strength. Retrieved from https://consult-myanmar.com/2016/09/10/yangon-door2door-food-
delivery-bicycle-going-from-strength-to-strength/
Thiha, (9 June 2015). Title: Food delivery business in Yangon – Is it viable? Retrieved from
https://consult-myanmar.com/2015/06/09/food-delivery-business-in-yangon-is-it-viable/

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Running head: Business Plan of F&H 1

This business plan is intended to submit as project assignment for Entrepreneurship

Submission date – 08 August 2017

Dr. Adam Thompson , Stamford International University

Marketing & Sales Plan..............................................................................................................................16

Fresh and Healthy Lunch Box

Analyzing the Industry

Financing and Funding

Summary of overall strategic direction

Reason for starting F&H business

Description of F&H product

Brick and click model

Sr. No. Survey Question Feedback from employee community

Table 3.1 Survey Data Analysis

Target market feasibility

Table 3.2(A) Major Competitor Analysis

Table 3.2(B) Major Competitors Analysis

Industry size, Segments and Maturity

Control over suppliers

Booming economy in Yangon and increased disposable income

Organization Chart of F&H Business

1. The owners or the founders of F & H

3. The staffs and the manages as mentioned in the organizational chart

4. The customers, including regular, potential and loyal customers

5. Suppliers for raw materials and packaging materials

6. Bank, in case we get the loans from the local banks

7. Food and Drug Administration of Myanmar (FDA)

Secondary stakeholders are local residents, competitors and media.

Professional Service Firms

- families with children

Marketing & Sales Plan

Overall Marketing Strategy

Target Market Strategy

Unique Selling Proposition

Positioning Map of F&H in the Market

Place and Distribution Channels

Marketing Budget Plan

Marketing Budget Plan year 1 year 2 year 3

Monthly fixed expense

Table 5.1 Marketing Budget Plan

The main reasons for choosing kitchen location in there are

Figure: Floor Plan

Day-to-day general operation

Processing Order (Tele/Online)

Tele advice to customers

Online advice to customers

Measure customers‘ satisfaction

Transport orders to customer

Development of a web portal and online store

Preparing content for the portal

Real time processing

Transfer orders to customer

Fig: Choosing Food Product Suppliers

Equipment and Other Supplies

Information Systems and Technology

Total Quality Management

• Food Safety: F&H staffs are well-trained in Food Safety knowledge.

Working Capital Planning and Management

Cash Conversion Cycle

Source of Initial Financing

Required Start-Up Funds Amount Totals

Total Required Funds $ 52,000,000

Sources of Funding Amount Totals