Business Case Development of Jatra Ethnic Restaurant Project

Our initial statement to stakeholders and financial lenders is an honest disclosure of the Jatra restaurant project proposal - our intent is to set realistic business expectations, and eliminate any questions about the profitability and success of this business venture. Entrepreneurs have a tendency to paint the plan with a very optimistic brush, highlighting strengths and concealing the risks. We, as business owners and project managers, have a personal stake and financial commitment in the success of this restaurant. Our intention is to have a definitive project plan that not only serves our need for capital financing, but is utilized as our daily business roadmap. We have taken all precautions to validate our business and financial models, focusing on realistic projections. We have accomplished this as follows: Our financial model is rooted in industry facts, not optimism. We have based costs on our vast industry and practical investigation with similar ventures, validation against l restaurant industry cost averages, and analysis against local Bhaktapur city market averages. We have taken a collective look at all figures to make solid project estimates. Our Project concept was derived from detailed market analyses. Instead of building a business around a preconceived concept, we analyzed the market findings and built a concept around our consumers. In other words, our business is built to service an unmet consumer 'want'. A financial plan that ensures adequate capitalization. A contingency safeguard will be included in the start-up cost to ensure the business in not under financed, as well as giving the business adequate funding to sustain it in the first six months of start-up. Our industry experience is not much mature but our interest and untiring effort and enthusiasm as a young blood confirms a longer ramp-up stage for restaurants over other businesses. A common mistake for new entrepreneurs, but fully addressed in this project plan. A solid risk mitigation plan. We will evaluated risks associated with restaurant failure and account for them directly in the project plan. Instead of dismissing the risks, we will identified valid mitigation strategies for each. Smart management skills and knowledge. Our management team has members who are all management and business student having various backgrounds. All the members have a sound knowledge of different ethnic food and culture and are experienced in organizing different college events like welcome parties, farewell parties, picnics, and other ceremonial functions. The vast public relations with various personalities of the field are the major strength of the management team. Most of the team members are the locals of Kathmandu valley they have combined experience of life style of Kathmandu valley, and deep involvement with the city restaurant industry.

Capital Plan of the Project: The total capital requirement to launch Jatra restaurant is Rs.6,000,000 of which Rs. 5,400,000 is allocated to start-up capital, and Rs.600,000 as business operations cash reserve. This plan is being submitted in order to secure a business loan for Rs.3,000,000. The loan will be used towards equipment purchase, design, construction, and operational start-up expenses. Owners, Mr. Neeran

Dhaubhadel, Ms. Sheela Singh, Mr. Sandeep Devkota, Mr. Subin Shakya, and Mr. Shakar lal Shrestha are investing Rs. 2,000,000 in personal capital. Private investors friends and family, who will be part owners with a non-managerial interest in the business, will contribute the remaining Rs. 1,000,000. As owners managers, our commitment is to take personal accountability for all financial debt. We have taken the necessary precautions to ensure the project is fully capitalized, and have addressed all financial shortfalls to ensure a successful business start-up. Under a realistic scenario, the company should have over Rs. 1,800,000 in cash balance the third year. Even with the worst-case sales scenario, we reach a net worth break even at the end of Year 5. On a linear projection, the entire financial debt will be retired by Year 7. Justification as why it is a project and its source (whats the need)

It is a project because of the following attributes of a typical project: It is temporary in nature as it is a single time establishment of a restaurant. It is a unique task as it has its own scope and objectives and is non-routine in nature. It has a specific start and finish time predefined in the project plan. It has the definite goal, something the team is trying to accomplish It has a schedule of what will be done when by whom, often including interim milestones