DISCLAIMER
(The following disclaimer is relevant to LEA Generic Business
Plan, to be excluded at business plan preparation by the
promoter):
This document is a generic document generated for use by
business entities of a particular class. The contents hereof are not
tailored to a specific individual entity and consequently LEA shall
not be liable for any loss howsoever incurred as a result of reliance
on this document in whole or in part. LEA further does not warrant
that a business placing reliance on this document will generate
certain results, nor does LEA guarantee any particular outcome of
the application of the contents hereof to any situation.
By accepting the use hereof the client accepts that in using the
contents of this document they shall use all reasonable care to
ensure the viability of their business. In preparing this document
LEA may have resort to projections based on estimates; the user
acknowledges this fact and hereby indemnifies and holds harmless
LEA, its successors in title agents and employees against any and
all claims for loss arising out of the implementation by the user of
the contents of this document or any annexure or addendum to it.
This document remains a guide only and the client undertakes to
seek appropriate professional advice in placing reliance on the
contents of this document.
ASSUMPTIONS
1. The proposed project will be owner managed and will operate as a
private limited company.
2. The required workforce will be sourced locally.
3. The project would have a segregated market targeting walk- Ins and
sections needing outside catering services.
Executive Summary
The Business Plan is submitted with the intention of sourcing for
funds for a Micro to small enterprise in the catering business. The
Proposal will support an establishment of a restaurant within the
District of Selibe- Phikwe.
The promoter intents to request funds amounting to P404 010.55
from CEDA, for the purchase of stock, machinery and equipment.
The business Model requires a staff compliment of at least 6
employees with the Owner Managing the enterprise on a full time
basis.
Revenues generated in the peak summer periods would be invested in
supporting the entity during the slower winter season. Profits for the
first year would rather be minimal due to high start-up costs but it is
expected that profits would escalate by 10% annually.
1. Background Information
Morama Catering services (Pty) Ltd is a registered company
name incorporated in the year 2015. It is in the business of
restaurant and catering services operating in Selibe Phikwe.
Selibe Phikwe is a small mining town wholly reliant on the
business opportunities presented by the mine. For the past two
years businesses in Phikwe have suffered due to the Global
economic meltdown that affected copper prices.
The government in its efforts to address the dependency of the
town and region on the mine has established organizations with
the mandate of ensuring economic activity. Organizations such as
SPEDU, NAPRO are an example of this effort.
The service Industry, particularly in Restaurant business is very
viable given the landscape and the populance of the area. There
are no established restaurants that cater for families. The only
Page 2 of 20
restaurants are in the Hotels and lodges and are far expensive
than any normal restaurant would be.
It is against this background that this business plans seeks to
raise capital to establish a restaurant that will serve the middle to
high income earners within Selibe Phikwe. It will also cater for
organizations and tourists passing through on their excursions.
2.1
2.2
Vision
To be the number one choice for meals and entertainment
needs within Selibe
Phikwe
Objectives
The entity aims in its operation to:
Exceed customer expectation
Develop into a sustainable entity maintained by its cashflow
Provide an environment of ambience and tranquility for
customers
To provide a multi-cultural menu to capture a wide
audience of customers
2.3
Mission
To be the number one choice for meals and entertainment by
providing a diversified menu in an environment of peace and
tranquility. This will be done by engaging qualified staff and
excellent customer service.
3. Organizational and Management Structure
Figure 3.1 Organogram
Page 3 of 20
Director/Manager
Chef
Administration
officer
Waitress( x2)
Cleaner/messen
ger
During establishment the Restaurant will create jobs for six people.
The owner will manage the business. A chef will be hired with two
waitresses on the side of operations. An administration Assistant will
be responsible for the cleaner and the reception area.
Table 3.1 Key Functions, Responsibilities
Position
Responsibilit Qualificati
ies
ons
&
Experienc
e
Director/Man Oversee
all Basic
ager
management,
business
marketing and manageme
accounting
nt skills
roles.
Bookkeepin
Page 4 of 20
and Remuneration
Remunera Freque
tion
ncy
P3, 500
Monthly
Chef
Waitresses
(x2)
Administratio
n officer
Ensure
successful
implementatio
n of jobs.
Recruitment.
Staff welfare
and resource
management
Menu
Preparations
Culinary
services
Obtaining
customer
Orders
Serving
and
clearing tables
Washing up
Manning
receptions/boo
king
Supervision of
the cleaner
Collection
of
cash
Welcoming
patrons
g skills
Business
planning
skills
Sales
&
marketing
skills
Sous Chef
P5000.00
Monthly
No
P1200.00
required
skills.
No
experience.
Month
Customer
service
experience
Month
P2000.00
Secretary
in
Public
Administrat
ion
4. Operational Plan
4.1 Location
The business requires a visible and accessible location in a safe
location. The location should be fully serviced with infrastructure
such as electricity, water, telephone and internet. The business
would be in a leased area in the town center where there is a
good foot traffic.
The area should be atleast 84 sqm, with ample room for inside
and outside seating areas. It should also be able to park a
Page 5 of 20
minimum of 20 vehicles with ease. Ideally it should also have a
children play area.
The plant should be designed to;
Minimize delays in materials handling and customer
movement.
Maintain flexibility
Use labor and space effectively
Promote high employee morale and customer satisfaction
Provide for good housekeeping and maintenance
Enhance sales as appropriate in manufacturing and service
facilities.
4.2 Source of Supplies
All food items are available in the popular retails such as
choppiest and Pick and Pay. For choice items the MD should be in
a position to create supply management contacts with producers.
For example farms are available proving fresh produce. Similar
deals could also be made with suppliers of meat such as spare
ribs and fish.
4.3 Project Location In Relation To Suppliers /Markets
/Infrastructure and Manpower.
Raw
Materials/In
puts
Labour
Page 6 of 20
Source
Around Selibe Phikwe
Location
Selibe Phikwe
and
surroundings
Technical
Support
Business
Marketing
Advisory
Support
Services
&
Machinery
and
Equipment
5. Production process
Page 7 of 20
LEA
CEDA
Sefalana
Welcome
Eureka
Selibe Phikwe
Selibe Phikwe
Selibe
Phikwe
Figure 5.1 Production process
Meal Preparation Process: All the necessary inputs would be
obtained and stored in preparation to start the project. The chef
would then prepare the meal according to the specification of the
client. The preparation area will be in the kitchen to avoid
customers seeing the process of preparation.
Service Process: The waitress will prepare the dining area for
service by ensuring cleanliness of the area. Once customers
arrive, they will be allocated an empty, clean table to sit, then
place orders. Drinks will be served, followed by meals, which will
be served hot for clients and their families. Where a kid is among
Page 8 of 20
the guest their meals will arrive before the others to avoid them
fidgeting. The waitress is expected to keep an eye on the clients
to ensure their requests are met in time. Once the clients are
finished with their meals they will pay for the service, while the
table is cleared. Dishes will then be washed in the kitchen.
Preparation
for service
Taking
orders
The service
of food and
drink
Bil ing
Clearing
Dishwashin
g
6. Marketing Plan
Description of the market for the product or service
The business would target:
Middle to high income earners (there is a steady growth in the
regions major villages and town (Phikwe and surrounding
areas)
Parastatals
Government entities
Private entities
Tourists
Social events such as weddings and parties
The business would be offering the following services:
Catering Services: This includes within the restaurant and
outside the resturant.
Location : offering a small space for parties
Benefits that the products/services meet.
The need for eatery places that cater for middle to high income areas
but reasonably priced than the current hotels
-Create employment for the youth
Key customers and demand levels.
Page 9 of 20
It is expected that the majority of the business will come from
private individuals. Mainly employees in government and private
entities.
It will also get a market in the government/councils and Parastals
workshop and meeting needing catering services
Market statistics on existing and potential demand.
The Selibe Phikwe region is earmarked for economic diversification.
There are a lot of plans underway to transform Phikwe into a
regional Horticultural Hub. As such the working population is bound
to increase and demand for services increase as well.
It is advisable that a real time market analysis is done to ascertain
the following.
Number of employees in Government sector/parastatals
Number of Enterprises within the District
Planned developments that could lead to population increase
Projected volumes, unit prices of the business.
Table 6.1 Projected volumes and unit prices
Service
Volume
per Unit price per Total price
month
month
per month
Restaurant
100
P150.00
15,000.00
Corporate
4
P5,000.00
20,000.00
Entities
Weddings
1
P10, 000.00
10,000.00
Total
45,000.00
Distribution channels.
The business would offer these services at the Restaurant.
Services for outside catering will be provided at the clients site.
Promotional strategy
There would be intense door to door campaigns and the business
should be ready to start on site. Flyers would be distributed at
strategic points and the business shall make use of social media
to increase mileage. The business is expected to venture into
mass media in their second year of operation. Signage at sites
would also be another tool to use for ease of reference. The
business would also identify a public site (E.g Park, Library,
Kgotla, or Education Centre) to work and exhibit their work as
part of giving back to the community.
Page 10 of 20
Marketing strategies, potential users.
The entity would start off with door to door presentations, flea
markets and other business forums to market the business. Social
media, word of mouth and flyers would be other tools used to create
awareness of the restaurant.
7. Competition analysis
8.
NAME
DISTANC
E
Travelers
Rest 2km
House
The Braai Smoke
2km
Bosele
Cresta 1km
Lodge
Chicken Licken
500m
Hotel Selebi
2.5 km
PRICE
QUALITY
P90.00
meal
per Average
P75.00
meal
per Average
P190.00 per Excellent
meal
P60.00 per Below
meal
average
P90.00 per Good
meal
OTHER
The enterprise
mainly
offers
traditional
cuisine.
The enterprise
mainly
offers
traditional
cuisine.
Offers buffet and
ala-carte.
Newly opened
Competitive edge
The owner is a qualified Home Economics teacher for 5yrs and also
worked in various restaurant in the country and abroad as part
time manager, and has peoples management
The business is located in prime area where there is good foot
traffic and enough parking area.
It offers a wide range of choice, traditional and western
gastronomy.
9. Internal Analysis (Strength and weaknesses)
Strength
Weaknesses
Skills and experience;- The owner
Lack of funds to start the
is a qualified Home Economics
operation of the business;- To
teacher for 5yrs and also worked
source funds from CEDA
in various restaurant in the
Lack of the necessary skills
country and abroad as part time
with
regards
to
records
manager.
keeping; The owner plans to
Page 11 of 20
Prime location; the business is
located in the town center where
is visible and easily accessible.
employ
a
finance
administrative officer.
and
Opportunities
Threat
Outbreak
of fire;
fire
Availability of skilled labor
extinguishers
will
be
placed
Availability of the much needed
strategically. Train employees
funds from schemes such as
on fire safety and first aid. The
CEDA, this is an achievable
business
assets
and
its
objective and it will be properly
employees will be insured.
mentored
into
a
successful
undertaking.
Theft/Embezzlement;- in order
to reduce this risk control
measures
like
security
systems operation will be on
board.
Rising Fuel costs; leading to
high operational costs and
uncompetitive prices.
Page 12 of 20
10.
Risk & Sensitivity analysis.
What could stop me from succeeding
Lack of buy-in by intended market
Lack of financial funds to kick start the business
Is my machinery insured
All equipment would be insured
Am I insured
All permanent staff would be insured
Can somebody in my family take over if am ill
There is currently no defined succession plan.
Can I get spares for my machinery
Spares are found in many various outlets thus repairing the machinery
would not be a hassle.
What will stop me from selling the amount I said I will sell
Lack of demand
Natural hazards
Can I get enough people into my business to do the work
Most of the work is labor thus reliability on casual workers when need be.
Page 13 of 20
11. Implementation plan
The project would commence upon receipt of funds and the below
Gantt chart details out the implementation schedule
Figure 11.1 Project planner
12.
Financing Structure
The budget for the business to start operating is as follows:
Table 12.1 Supplies
Description/i
tem
Assets
Double
door
fridge
Industrial
stove3
burner
4 Banner stove
Quant
ity
Cost
price
8
575.00
2
300.00
17 150.00
2 460.00
Bain-marie
6
divisionfloor
model
Full inserts
2
460.00
11
700.00
1 140.00
Flat pan
Half inserts
Electric
chip
fryer
2x
5l
double
Convection
oven 4 tray
Dough mixer
20l 220v
1140.0
0
4500.0
0
1965.0
0
2
060.00
8
487.00
10
300.00
8 487.00
Page 14 of 20
1
1
1
1
Total
2 300.00
11 700.0
4 500.00
1 965.00
2 060.00
10 300.00
Cash register
machine
Potato peeler
Chipper7
holes
Portion scale
Urn 28L
Chaffing dish
Hart
sauce
pan 50l
Defy
coffee
maker
Microwave
defy 28l
Dinner plate
Mug
coffee
white
Create
tumbler
glasses
Steel table
Spoon
Fork
Knife
Cutting board
Alarm
installation
Alarm
monitoring x 6
Light box
20
10
3000.0
0
10,300.
00
1,395.0
0
2
878.00
1550.0
0
285.67
855.00
674.95
674.95
1 195.00
100
100
1195.0
0
11.56
6.21
10
310.67
3 106.70
10
100
100
100
4
1
267.81
8.88
8.88
11.56
50.95
3777.5
1
306.85
2 678.10
888.00
888.00
1 156.00
203.80
3 777.51
3 600.00
Table Chelsea
Chair Chelsea
Gas 48 kg
6
24
3
3600.0
0
225.00
142.81
1
000.00
1
000.00
321.50
750.00
5
999.00
3 750.00
5 999.00
3
1
License fee
Fire
extinguisher
Gas re-fill
Deep freezer
Page 15 of 20
3
1
3 000.00
10,300.00
1,395.00
2 878.00
6200.00
5 713.40
8 550.00
1 156.00
621.00
920.85
1 350.00
3 427.44
3 000.00
1 000.00
1 400.00
TOTAL
140
890.75
Table 12.2 Operational expenses
Expense
Accounting fees
Advertising and Promotion
Bank Service Charges
Cleaning
Consumables
Insurance
Meals and entertainment
Postage and Delivery
Printing and reproduction
Protective clothing
Rent
Equipment
repairs
and
maintenance
Structural
repairs
and
maintenance
Security
Stationery
Telephone: Landlines and fax
Telephone: Mobile
Vehicle
costs:
Fuel
and
lubricants
Vehicle costs: Maintenance
Total
2.3 SUPPLIES
Description/item
50 kg flour
50 kg brown flour
20L cooking oil
Maize meal 50kg
Rice 10 kg
Macaroni 3 kg
Spaghetti 3kg
Page 16 of 20
Quan
tity
10
10
10
10
10
12
12
Value
4 000.00
3 500.00
4 200.00
1 200.00
5 000.00
8 500.00
2 500.00
1 440.00
1 000.00
4 000.00
54 000.00
5 000.00
5 000.00
7 000.00
5 000.00
3 000.00
6 000.00
12 000.00
3 000.00
P135
340.00
Cost
price
330.95
330.95
320.95
302.95
89.95
46.95
46.95
Total
3
3
3
3
309.50
309.50
209.50
029.50
899.50
281.70
281.70
Sugar 12.5 kg
Samp 10 kg
Chicken 2kg
Brown sugar8kg
Russian 2kg
Rama 1kg
Eggs
Polony 1 kg
Tomato sauce 3l
Koo beans 3 kg
Mayonnaise 3kg
Atchar 12x 385g
Chutney 3 kg
Raisins 500g
Barbeque
spice
1kg
Steak
and
chops1kg
Portuguese spice
1kg
Spice for rice 1kg
Vinegar 5L
Yeast 500g
Baking powder
50g *25
Five roses
Ricoffy
Washing powder
2kg
Handy Andy 5l
Domestos
Mr min
Air
freshener
6pack
Toilet Paper
Broom
Mop
Vanilla
custard
500g
Peach slices
Tennis biscuits12x
200
Cremora1kg
Peach slices
Yoghurt 1kg 6
Page 17 of 20
3
3
60
2
6
12
10
10
6
6
10
6
10
6
3
116.00
61.95
59.95
70.50
90.95
33.95
87.95
25.95
85.90
54.95
73.95
229.95
33.95
18.95
78.95
348.00
185.85
3 597.00
141.00
545.70
407.40
879,50
259.50
515.40
329.70
739.50
1 379.70
339.50
113.70
236.85
78.95
236.85
78.95
236.85
3
3
3
3
96.95
21.50
29.95
99.95
290.85
64.50
89.85
299.85
3
3
3
45.95
134.95
31.95
137.85
404.85
95.85
3
6
1
1
99.95
19.95
125.95
67.95
299.85
119.70
125.95
67.95
2
2
2
12
78.95
53.95
42.95
16.95
78.95
107.90
85.90
203.40
6
3
79.95
98.95
479.70
296.85
12
6
6
30.45
79.95
136.95
365.40
479.70
821.70
Fomo pack 75 s
Disposable spoon
250
Disposable
fork
250
Serviettes 100
330ml coca cola
440ml coke
1l coke
330ml tab
330ml coke zero
330ml
Fanta
orange
440ml
Fanta
orange
330ml Fanta pine
330ML
Fanta
grape
330ml white grape
330ml mango
330ml pine apple
500ml
source
water
1l Fanta orange
Carrots prepack
Beetroot(pack)
green pepper
tomato
onion
cabbage
Ribs
Potatoes 10kg
cucumber
Stewing beef per
kg
Transport
Total
Total Requested
12
10
79.95
41.95
959.40
419.50
10
40.95
409.50
10
1440
720
216
288
144
360
15.95
6.95
8.45
10.95
6.95
6.95
6.95
159.50
9.938.50
5.998.50
2.255.70
1.932.10
931.30
2.435.50
216
8.45
1.767.50
216
144
6.95
6.95
1.431.70
931.30
144
331
216
108
7.95
6.95
6.95
4.95
1.065.30
2.230.95
1.431.70
485.10
72
240
240
360
48
24
420
50
90
960
50
10.95
8.95
8.95
12.95
47.45
57.45
8.95
580.00
69.95
5.65
35.95
3 500.00
2
2
4
2
1
3
29
6
5
1
498.90
148.00
148.00
662.00
277.60
378.80
759.00
000.00
295.50
424.00
797.50
3 500.00
127
779.80
P404
010.55
Despite the business starting without funds, it would remain
solvent over its operations as it would be kept afloat by commercial
Page 18 of 20
loan acquired from CEDA. We expect solvency to improve over the
years as the entity intends to source more equipment and staff.
Table 12.4 Income statement
Table 12.5 Balance sheet
Table 12.6 Cashflow statement
Page 19 of 20
Page 20 of 20
