P-SOUP A LA CARTE

BUSINESS PLAN AND CASH FLOW FORECAST

By

AKATAH SHARON OBUMNEKE

Address: 60 Diya Street, Ifako Lagos State,Nigeria

Email: rubiesfromsharon@gmail.com

Tel: +2348161760277

June, 2021

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Table of Contents
1.0 Executive Summary
1.1 The Services…………………………………………………......1
1.2 Financing…………………………………………………….......2
1.3 Mission and Vision Statement…………………………………...2
1.4 Management Team……………………………………………….3
1.5 Sales Forecasts…………………………………………………3-4
1.6 Expansion Plan…………………………………………………..5
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure………………………6
2.2 Required Funds…………………………………………………..6
2.3 Management Equity………………………………………………7
2.4 Exit Strategies……………………………………………………..7
3.0 Strategic and Market Analysis
3.1 Economic Outlook……………………………………………….8
3.2 Industry Analysis………………………………………………...8
3.3 Customer Profile…………………………………………………9
3.4 Competition…………………………………………………...9-10
4.0 Marketing Plan
4.1 Marketing Objectives……………………………………………..11
4.2 Marketing Strategies……………………………………………...12
4.3 Pricing…………………………………………………………….12
5.0 Organizational Plan and Personnel Summary
5.1 Corporate Organization …………………………………………13
5.2 Organizational Budget …………………………………………14
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 5.3 Management Biographies…………………………………………14
6.0 Financial Plan
6.1 Underlying Assumptions ………………………………………....15
6.2 Sensitivity Analysis ……………………………………………….15
6.3 Source of Funds …………………………………………………...15
6.4 General Assumptions ……………………………………………..16
6.5 Profit and Loss Statements…………………………………….16-17
6.6 Cash Flow Analysis……………………………………………….18
6.7 Balance Sheet…...................................................................18-19
6.8 Breakeven Analysis……………………………………………….19
6.9 Business Ratios………………………………………………...19-20

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1.0 Executive Summary
The P-soup A la carte restaurant is a proposed to providing catering services with
the best of the tasty meals and top notch excellent customer service.

We serve both local and continental dishes well packaged for both home, office
deliveries while we make available our restaurant space very relaxing for clients
who would be interested in sitting to dine right in our space.

Our deliveries covers yaba, surulere and Lagos environs at large; P-soup A la carte
is here to deliver and satisfy your taste buds with fresh and homemade meals that
guarantees value for your money.

P-soup A la carte restaurant will be established as a limited liability company,

owned and managed by Akatah Sharon Obumeke a first class, top notch chef with
over 16 years of experience before proceeding further to have her university
degree.

We will provide an excellent outdoor catering service that is next to non.

Considering the fact that there is food everywhere, we make bold to say that our
good taste and quality of our food is something we don’t compromise on for any
reason whatsoever.

P-soup A la carte is presenting this business plan to Five Million Naira

(#5,000,000.00) to enable us execute our plans. We expect to make progress
financially in the next three years of operation.

1.1 The Services

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P-soup A la carte are well prepared to make profits from fast food vendor and we
will do all to achieve our goals.

To compliment the delicacies above, the delicacies will be served with a variety of
meat offerings ranging from roundabout to pomo to raw beef. Tasty fried chicken,
turkey, and assorted fish types

The business will have multiple streams of income, which will allow the business
to achieve maximum profitability by providing all available services that clients
will require from us.

1.2 Financing

P-soup A la carte is seeking to raise Five Million Naira (#5,000,000.00) for her
operations on fast food restaurant. We have what it takes to keep this business
running and to add a great value with aid of our services. 5 years loan with a 5%
interest rate due on the outstanding principal balance while the moratorium period
for construction is 12 months. However, the financing will be used for the
following

 Restaurant office space

 Equipments and facilities

 Appliances

 Fixtures

 Contingency and Escalation

1.3 Mission and Vision Statement

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 A. Mission

Our mission is to provide a customer experience that encourages repeat business.

We hope to develop the strong presence in the community needed to support our
services.

B. Vision

Our vision is to be a cornerstone in the globe by creating a neighbourhood

atmosphere where customers feel comfortable and become instant regulars.

1.4 Management Team

P-soup A la carte is owned by Akatah Sharon Obumneke. She had more than 15
years experience in various caters and fast food. Through her experience and
expertise she will be able to bring the operations of the business to profitability
within its first year of operations.

1.5 Sales Forecasts

We conducted a thorough market survey and feasibility studies and we were able
to discover that the sales generated by a fast food vendors depends on the size of
their customers.

We have perfected or sales and marketing strategies and we are set to hit the
ground running and we are quite optimistic that we will meet or even surpass our
set sales target of generating enough income / profits from the year of operations
and build the business from survival to sustainability.
We have been able to critically examine the fast food restaurant and we have
analyzed our chances in the industry and we have been able to come up with the
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following sales forecast. The sales projections are based on information gathered
on the field and some workable assumptions as well with respect to the nature of
fast food business that we run.

We will be running a standard fast food business with a capacity to brand and
package our services very well. Below are the projections that we were able to
come up with for the first three years.

 First Fiscal Year-: #6,000,000

 Second Fiscal Year-: #8,000,000
 Third Fiscal Year-: #10,000,000

Proforma Cash Flow Analysis Yearly

Fiscal Years 1 2 3

Cash from Operations #6,000,000.00 #8,000,000.00 #10,000,000.00

Cash from Receivable #0 #0 #0

Operating Cash Inflow #6,000,000.00 #8,000,000.00 #10,000,000.00

N.B: This projection is done based on what is obtainable in the industry and with
the assumption that there won’t be any major economic meltdown that can impact
negatively on household spending, bad weather cum natural disasters (draughts,
epidemics), and unfavourable government policies. Please note that the above
projection might be lower and at the same time it might be higher.

1.6 Expansion Plan

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The founder expects that the business will aggressively expand during the first
three years of operation Akatah Sharon Obumneke intends to implement marketing
campaigns that will effectively target all inhabitants and individually within Yaba,
Surulere and its environ.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

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P-soup A la carte and The Company is registered as a corporation in Nigeria

2.2 Required Funds

The primary expense to establish P-soup A la carte is N5, 000, 000.00 which is the
sum total cost for this investment. Akatah Sharon Obumneke intends to invest
N500, 000 of his savings to cover the business start-up. This amount represents the
owner’s investment.

Below is a breakdown on how these funds will be used

Projected Startup Costs

Restaurant Office Space #1,000,000.00

Equipments #2,000,000.00

Appliances #1,000,000.00

Fixtures #400,000.00

Working Capital #500,000.00

Marketing Budget #100,000.00

Miscellaneous and unforeseen costs #500,000.00

Total Startup Cost #5,500,000.00

2.3 Management Equity

Akatah Sharon Obumneke will return 5% interest to the investor for a period of 5
years
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Payment Method
Time/Year Payment Interest Principle Reduction Balance

0 - 5% - 5000000

1 1000000 250000 750000 4000000

2 1000000 250000 750000 3000000

3 1000000 250000 750000 2000000

4 1000000 250000 750000 1000000

5 1000000 250000 750000 0.5

Here are the payment options that Akatah Sharon Obumneke Company will make
available to her investor

 Payment via bank transfer

 Payment via online bank transfer
 Payment via cheque
 Payment via mobile money transfer
 Payment via bank draft

2.4 Exit Strategies

The management has planned for one possible exist strategy. The strategy would
be to sell the company to a larger entity at a significant premium. Since, the
industries maintain a moderate risk profile once the business established. The
management feels that the company could be sold for ten to fifteen times earnings.

3.0 Strategic and Market Analysis

3.1 Economic Outlook

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This section of the analysis will detail the economic climate, the services, the
customer profile, and the competition that the business will face as it progresses
through its business operations.

Currently, the economic market condition in Nigeria is slothful. This slowdown in

the economy has also greatly impacted the labour market, which has halted to
historical lows. Many economists expect that this recession will continue for a
moderate period of time, at which point the economy will begin a prolonged
recovery period.

3.2 Industry Analysis

Within Nigeria, there are approximately 48,000 businesses that own and operate on
fast food. Aggressively these businesses generate #450million naira a year of
revenue and provide jobs for 2000 thousand people. Aggregate payrolls over the
last five years have exceeded #5billion naira.

The fast food vendor is mature. The future growth rate of the industry is expected
to remain in line with the growth of the general economy. Management believes
that the key to remaining competitive in this field is to continually upgrade and
improve the level of service offered by the fast food vendors while concurrently
branding the Company’s name.

3.3 Customer Profile

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The golden rule for any business to reach the zenith of success is to know the
interests, likes, dislikes and trends of the customers.

 To know the typical age group of our customers

 To always make our customers to feel good

 To know their household composition

 To know exactly what they want

3.4 Competition

The fact that fast food business is very rewarding does not mean that there are no
challenges in the business. Starting a fast food business in Nigeria comes with its
own fair share of challenges, you would have to abide by the law and also compete
with loads of other investors in the fast food vendor.

In order to compete favorably in the fast food as a private Company we have been
able to hire the services of tested and trusted business gurus in food productions to
help us conduct critical SWOT analysis for us.

We intend maximizing our strengths, explore all opportunities we will come

across, properly manage our weakness and confront our threats. Here is a summary
from the result of the SWOT analysis that was conducted on behalf of our
management.

 Strength:
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Some of the strength that we will be bringing to help us stay in business is strong
product supported by great tasking meals with a strong focus on quality, healthy
and competitively priced meals in addition to the speed of producing meals.

Our access is to have great number of customers who are willing to patronize us
with the aid of good services.

 Weakness:

As a newbie in fast food business, we might have some challenges competing with
big fast food and other private fast food businesses that have been in the service for
many years; that perhaps is part of our weakness.

 Opportunities:

The opportunities in fast food business especially as a private organization

company is massive considering the number of families that would want to own
their own private fast food. We are well – positioned and ready to take advantage
of any opportunity that comes our way.

 Threat:

Some of the threats that we are likely going to face as a private company are
unfavorable government policies, and global economic downturn; global economic
downturn usually affects spending power and the private fast food is known to
encounter decline in sales and profits during this period.

4.0 Marketing Plan

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We intend to maintain an extensive marketing campaign that will ensure maximum
visibility for the business in its targeted market. Below is an overview of the
marketing strategies and objectives of the business.

4.1 Marketing Objectives

Our market objective is to develop a strong relationship with our customers within
three and four months and establish a first class in fast food business,
Collaboration, Integrity, Accountability, Passion, Diversity and Quality are the
map guides for our actions and these describe our value and behaviour. We hope to
develop the strong presence in the community needed to support our goals in food
production. This will help us to achieve these:

 To develop a robust relationship with our customer by maintaining good

services with them.

 To create an avenue where our customers will ask question, which will help
us to serve them well.

 To provide a team work

 To seek for businesses advert

 To provide adequate training to our team work.

All these will help us to be recognized as the most preferred world class
services providers in fast food segment.

4.2 Marketing Strategies

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Management intends to use a qualified advertising and marketing firm to help our
firm reach its intended audience of people seeking to know what we do. This
campaign will include the use of traditional print and media advertising as well as
the internet.

Our company will also use an internet based strategy. This is very important as
many people seeking to know good food service. Akatah Sharon Obumneke will
make this business known with the aid of social media.

The Company will maintain a sizable amount of print and traditional advertising
methods within local markets to promote the business services that the Company is
selling.

4.3 Pricing

Part of our business strategy is to ensure that we work with the budget of our
customers to help them meet their expectations.

Since we are not directly in control of the pricing system in the food production,
we can only abide by what is obtainable in the sector. But one thing is certain; our
facilities will always be safe and preferred by our customers.

A plate of food will be sold for #800 naira per plate, we will also consider the
market price.

5.0 Organizational Plan and Personnel Summary

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5.1 Corporate Organization

Senior Management

Training Coordinator Administrative Staff

IT / Strategy Coordinator Accounting

Reservation Management Sales - Marketing

Facility Maintenance Administrative

Legal Compliance

5.2 Organizational Budget

Personnel Plan – Yearly

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Year 1 2 3

Owner #480,000.00 #504,000.00 #540,000.00

Facility Manager #420,000.00 #444,000.00 #480,000.00

Food Vendor #240,000.00 #300,000.00 #324,000.00

Accountant/ IT Manager #324,000.00 #420,000.00 #444,000.00

Administrative #300,000.00 #324,000.00 #420,000.00

Totals #1,764,000.00 #1,992,000.00 #2,208,000.00

Number of Personnel

Year 1 2 3

Owner 1 1 1

Facility Manager 1 1 1

Food Vendor 3 3 3

Accountant/ IT Manager 1 1 1

Administrative 1 1 1

Totals 7 7 7

5.3 Management Biography

Sharon Akatah had more than 15 years experience in her management industry.
Through her expertise she will be able to bring the operations of the business to
profitability within its first year of operations.

6.0 Financial Plan

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6.1 Underlying Assumptions

The Company has based its proforma financial statement on the following:

 Akatah Sharon Obumneke fast food will have an annual revenue growth rate
of 10% per year.

 The Founder will acquire #5,000,000.00 of funds to develop the facility.

6.2 Sensitivity Analysis

In the event of an economic downturn, the business may have a decline in its
revenues. Because of unforeseen challenges and economic conditions, the business
may have issues with its top line income. Additionally, the high margins generated
by the business will ensure its continued profitability despite moderate decreases in
revenue.

6.3 Source of Funds

Financing

Equity Contributions

Management Investment

Total Equity Financing #5,000,000.00

Banks and Lenders

Banks and Lenders

Total Debt Financing #5,000,000.00

Total Financing #5,000,000.00

6.4 General Assumptions

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General Assumptions

Year 1 2 3

Short Term Interest Rate 9.5% 9.5% 9.5%

Long Term Interest Rate 10.0% 10.0% 10.0%

Federal Tax Rate 24.0% 24.0% 24.0&

State Tax Rate 5.0% 5.0% 5.0%

Personal Taxes 12% 12% 12%

6.5 Profit and Loss Statement

Proforma Profit and Loss Yearly

Year 1 2 3

Sales
6000000 8000000 10000000

Cross Margin 24.0% 24.0% 24.0%

Operating Income 6000000 8000000 10000000

Expenses

Payroll #1,764,000.00 #1,992,000.00 #2,208,000.00

General and Administrative

#450,000.00 #460,000.00 #470,000.00
Marketing Expenses #100,000.00 #120,000.00 #130,000.00

Professional Fees and Licensure #150,000.00 #180,000.00 #200,000.00

Insurance Costs #300,000.00 #400,000.00 #500,000.00

Travel and Vehicle Costs #100,000.00 #120,000.00 #130,000.00

Utilities #120,000.00 #140,000.00 #160,000.00

Miscellaneous Costs #300,000.00 #320,000.00 #340,000.00

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Payroll Taxes #200,000.00 #210,000.00 #220,000.00

Total Operating Costs #3,484,000.00 #3,942,000.00 #4,828,000.00

EBITDA

Federal Income Tax 24.0% 24.0% 24.0%

State Income Tax 5.0% 5.0% 5.0%

Interest Expenses 2.0% 2.0% 2.0%

Depreciation Expenses 3.0% 3.0% 3.0%

Net Profit
#10,000,000.00 #11,000,000.00 11,500,000.00
Profit Margin 5.0% 7.0% 9.0%

6.6 Cash Flow

Proforma Cash Flow Analysis Yearly

Year 1 2 3

Cash from Operations #6,000,000.00 #8,000,000.00 #10,000,000.00

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Cash from Receivable #0 #0 #0

Operating Cash Inflow #6,000,000.00 #8,000,000.00 #10,000,000.00

Other Cash Inflows

Equity Investment #500,000.00 #0 #0

Increased Borrowings #0 #0 #0

Sales of Business Assets #0 #0 #0

A/P Increases #0 #0 #0

Total Other Cash Inflows #500,000.00 #0 #0

6.7 Balance Sheet

Proforma Balance Sheet-Yearly

Year 1 2 3

Assets

Cash 2516000 4058000 5172000

Amortized Development/Expansion Costs 3484000 3942000 4828000

Inventories 2326000 4032000 5200000

FF&E 4000000 4000000 4000000

Accumulated Depreciation 500000 500000 500000

Total Assets 12826000 16532000 19700000

Liabilities and Equity

Accounts Payable 4000000 4000000 4000000

Long Term Liabilities 2475000 2675000 2875000

Other Liabilities 0 0 0

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Total Liabilities 6475000 6675000 6875000

Net Worth 12826000 16532000 19700000

Total Liabilities and Equity 19301000 23207000 26575000

6.8 Breakeven Analysis

Monthly Break Even Analysis

Year 1 2 3

Monthly Revenue 333333.33 500000 666667

Yearly Revenue
4000000 6000000 8000000

6.9 Business Ratios

Business Ratios – Yearly

Year 1 2 3

Sales Growth 0% 8.0% 8%

Gross Margin 67.5% 67.5% 67.5%

Financials
Profile Margin 5.55% 7.70% 9.10%

Assets to Liabilities 1.14 1.22 1.30

Equity to Liabilities 0.14 0.22 0.30

Assets of Equity 7.99 5.61 4.30

Liquidity
Property 0.64 0.68 0.72

Cash to Assets 0.56 0.56 0.55

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