BUSINESS PLAN

The Great State “Organic Cafe “

(Prospering a healthy lifestyle)
 EXECUTIVE SUMMARY

The great State “organic cafe” is a hypothetical start-up. It is

set up by six highly enthusiastic young entrepreneurs who
found opportunity that no existence of organic cafe in
present market of Bhubaneswar .
Organic Food consumption has become the trend of the
time but still are many who do not have a clear idea
regarding the definition of organic food. Organic foods
are natural and pure and since they are free from any sort
of contamination, they definitely are more appropriate for
consumption.
 Our cafe decided to focus on both veg.& non-veg. items i.e.
soups, sandwich,juice,salads etc . We aspires to became
market leader in Orissa market with in the next 5 years.
After stabilizing our brand we will expand our business in
other regions of Orissa.
Importance in Bhubaneswar

Opening an organic food cafe in Bhubaneswar we found it

to be important, as there are not many cafes that provide
healthy food. As BBSR is the capital of Orissa, it is
developing rapidly and going to be a metro city. It’s middle
and upper middle class is also growing rapidly. Though it
the temple city many visitors are coming to this place. It
has been observed that most people are health conscious
and opt for a healthy life.
 MISSION AND VISION STATEMENT
Mission
Provide healthy food to all and stop degradation of environment.

Vision:
To become market leader and open franchises in and around Orissa
INFORMATION OF PROMOTERS

Srinibas Routray
Age-23
Qual- PGDM

Deepak Ku. Bal

Age-23
Qual- PGDM
Rosalin Nath
Age-23
Qual- PGDM

Akshay Ku. Mandal

Age-23
Qual- PGDM

Kabikanta Behera
Age-23
Qual- PGDM

Lakmipriya Sahoo
Age-23
Qual- PGDM
 PERSONNEL PLAN
NAME OF DEPT SALARY (RS.)

General cum Finance manager-: Srinibas Rout ray 6000/-

(promoter)
Marketing Manager-: Deepak ku. Bal (promoter) 6000/-

Sales Manager-: Kabikanta Behera (promoter) 6000/-

Stock Keeping (Head)-: Rosalin Nath (promoter) 6000/-

Maintenance (Head)-: Akshay Ku. Mandal (Promoter) 5000/-

2 Chefs(2) 8000/- (Each)

1 Cleaner(1) 2000/-
3 Waiters(3) 3000/- (Each)
 INFORMATION ABOUT THE BUSINESS

Name of the business:

The Great State “Organic Cafe”

Address of the business:

CRPF Square
BBSR
Orissa.

Location advantages:
CRPF Square BBSR Orissa.
It is developing area with many shopping destination.
 Nature of business:
Organic food is natural and does not involve the usage of any kind of preservation or
artificial pesticides.
It has been claimed by health experts that organic food is more nutritious.
1.Organic foods contain phenol ice compounds that protect you from developing
heart disease and Cancer.
2.Organic foods contain loads of mineral and vitamin C, which the body requires.
3.Organic food ensures high food quality, which other conventional foods cannot
commit.
In fact health experts that organic food is more nutritious in the sense it has 27%
more iron and 14% more phosphorous have analyzed it. So head your way towards
leading a healthy lifestyle by eating organic foods

Nature of organization:
It is a partnership firm where all the 6 partners will distribute the profits and
losses equally amongst them. The café will work in 2 Shifts.

TIMINGS: 10:00 AM TO 10:00 PM

 MARKET ANALYSIS
Co- founder Deepak & Kabikanta will handle the marketing and sales department
venture. Our emphasis points are marketing will be to sell organic food, how our
product is healthy and to acknowledge people that how healthy and fresh it is. Budget
for marketing section is to create hype about our product before its launch and to
attract health conscious people as well as food eaters (consumers)

Market Segmentation
The Lonely Rich
Most of the professional are tech worker these days and most of those tech workers
are executives and Internet workers. They hang out with each other but desperately
want to get away from it and use the money they are making. Because this wealth has
come fairly easily for them, it’s particularly east to separate them from their money
again. They spend the most on drinks, appetizers and tips.

Young Happy Couples

The restaurant will have an atmosphere that encourages people to bring dates and to
have couples arrive. It wont be awkward for others an Organic does want to be a
social place here people meet other and develop a network. These young couples are
generally very successful but blamed and won’t be pending as much on drink.
The Rich Hippies
The Visitors in BBSR are a massive group with tremendous influence over
city’s government and private enterprise. They basically want to enjoy their
lives and can afford a high price for their psychological satisfaction.
Dieting Women
The organic food menu will always have a line of extremely delicious very
low fat meals. Organics will have tables of women meeting to discuss all
types of matters while feeling good about the food they eat.
 Supply analysis
Being the first ones to start an organic food cafe, we
stand as the pioneers for building up the organic food
market. Our competitors would be the local food joints
serving food different from us regarding the carbs,
vitamins, proteins, minerals etc. Organic food is healthier
compared to these joints as it is more calorie and health
conscious food cafe.
 MARKETING STRATEGY
Price:
We will be serving products of a better quality and taste
at a price affordable by all classes of people.
Product:
Our product includes different types of snacks which will
have an exceptional taste and quality compared to our
competitors.
Place:
CRPF Square, Bhubaneswar, Orissa
It is a developing area with many upcoming sites also
CRPF square itself has many food joints, shopping
destination etc which proves to be the perfect place to
open an organic cafe like ours.
Promotion:
Our main strategy will be to advertise near colleges, gyms, high street etc. We will
start our advertising about month before the launch of our cafe’s so that people and
potential customers already know about it.
Advertise in the gym by setting contract with them. Advertising in the malls itself by
bill boards, promoting sales by keeping discounts for students as well as gym
members with whom we have tie-up also by advertising on the local radio channels.
Sponsoring health event by supporting charity. Also “word of mouth” which is the
most important source of marketing by maintaining a good image of the cafe by
providing good customer service.
Target Market (Customers)
Organics believes that the market can be segmented into four distinct groups that it
aims to target:
· Professional people
· Young happy couples
· Visitors
Dieting women
 FINANCIAL PLAN
Presumptions
1) Margin money is 50% and bank loan is 50 %
2) Rate of Interest is 13.5% on bank loan
3) Depreciation rate is 20% on all assets
4) Working days in a month ( 30 days approx)
5) Maximum Capacity per year = 150*30*12=54000 units
6) Total Fixed Cost Per Year = Rs.9,00,000
7) Total Variable Cost per Year = Rs.8,640,000

Sources of Finance

Partners Contribution 50% =

Rs.850000/-
Bank loan 50% = Rs.850000/-
 Income Statement
Sales Revenue
Per day sales:
Approx 600 people visit CRPF-square per day, from them 200
People are women and 400 are others including children, men,
Aged.

Therefore on an average 150 visit our cafe. 150 (number of

customers visiting per day) x 200
(Average Amount spent by each customer)
= Rs.30000/- per day sales

Annual sales:
Rs.900000/- x 12 months
= Rs.10800000/

Expenses:
Calculation done on working capital items for 12 months
 Break-Even Analysis
1. Revenue/per unit Rs.200
2. Variable Cost/per unit Rs.160
3. Contribution/per unit Rs.40
4. Fixed cost Rs.9, 00,000
Break-Even Volume = (Rs.9, 00,000/Rs.40) =22,500 units.
Break-Even sales would be 41.67% of total capacity.
FORMULA:
B.E.P = F.C/CONTRIBUTION PER UNIT.
CONTRIBUTION= REVENUE PER UNIT-VARIABLE COST.
 SWOT ANALYSIS
Strength
1. Organic food is more rich in Vitamins, Minerals, and Fiber and retains the
level of nutrients for much longer.
2. You will have more energy through consuming low levels of toxics and
chemicals that show your body down.
Weakness
1. People are unaware about organic food.
2. There is a rigid mentality of people to adopt to the change in their lifestyle.
Opportunity
1. Food habits are changing.
2. Standard of living is improving.
Threats
1. Cost: Since it is little more expensive than the other food items people may
look back.
2. Established Competitors: Competitors like Pizza Hut, Hot Spot, Dawat,
Green Chilly etc are creating a threat for Organics.
 CONTINGENCY PLAN
1) We are adopting tight cost-controlling methods.
2) We have insured our business.
3) We are always keeping sufficient money for our
working capital.
4) If required we can invite two more partners to our
business in future.
 Conclusion
After identifying the business opportunity and
making a detailed project report on the business
opportunity, we have come to the conclusion that
the opportunity will have a better prospect on the
years to come. As the people all over the world
are realizing the bad side effects of fast food,
drinks and harmful drugs used in modern
therapies they will switch over to nature cure. The
search for alternative for these things will end to
our organic food cafe.
THANKS
TO
ALL