ENTREPRENEURSHIP

BUSINESS PLAN

SARHAD PUNJAB HOTELS

Assigned by:

Mr. Usman A. Bhatti

Prepared By:

ABDUL HASEEB KHAN

RASHID AHSAN

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COMSATS Institute of Information Technology Wah Cantt

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Table of Contents

Description Page No

Introduction of business. 3

Acknowledgement. 4

Nature of business. 5

Vision/ Mission Statement . 6

Executive Summary. 7

Industry Analysis. 8

Description of Venture. 11

Marketing Plan. 13

Situation Analysis. 14

Strength and Weakness of Business. 15

Organizational Plan. 17

Development of Management Team. 18

Job Descriptions. 19

Assessment of Risks. 20

Financial Plan. 22

Break Even Analysis. 26

Conclusion. 27

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Introduction of the Business:

As we are the students of the subject of entrepreneurship and project of the subject is the necessary items according to the examination point of view. We are very thankful to our teacher Usman A. bhatti that he provides us the opportunity to do some practical work, which helps us more than enough to understand the pros and cons of the real business. We have selected the business of Sarhad Punjab Hotels, starting from one branch and after that we spread the chain of hotels throughout the main cities of the country. The basic reason is that to start this kind of business, we want to provide some unique quality food and services. We have unique environment for all kinds of customers, especially all kinds of divers and as well as families.

Sarhad Punjab Hotels:

Site: Model Town, Wah G T Road

Prop: Abdul Haseeb Khan (0300-5135119)Rashid Ahsan Khan

Mob # 0300-5135119

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Acknowledgement

We are thankful to ALLHA, who is the creator of creators,

His blessings enable us to complete this project. This project

could not be completed without the assistant of our parents

and our beloved teacher Mr. Usman A. Bhatti their affection

and guidance gave us courage to make this project.

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Nature of the Business:

“Provide unique, comfortable environment and delicious

and quality food and services to meets the customer’s needs by highly

skilled and professional workforce and building long term relation.”

Major contributing factors in this are:

24hrs. Services

Highly professional and co-operative Staff

Unique and quality environment.

Statement of the Financing Needs:

Initially business will be started with amount of 25, 00,000. Which are whole invested by the owners, and we both are equally share of profit and loss.

Confidentiality of Report:

The report is confidential and the property of the partners listed above. The person to whom it is transmitted intends it only for use,

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and any reproduction of any of it contents without the prior written consent of the firm is prohibited.

Sarhad Punjab hotels

Vision Statement:

“Committed to establish a chain of hotels throughout the

country”

Mission Statement:

“Provide unique, comfortable environment and delicious and

quality food and services to meets the customer’s needs by highly

skilled and professional workforce and building long term relation.”

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Executive Summary:

We have decided to start a business of hotels. We are two

member of this task and we are both students of business

administration. For starting and establishing any business it is very

necessary that there should be complete plan regarding marketing,

production, operation, finance and organization. Our type of business

is partnership. We both should perform and invest equally. As we

know that every functional areas of the business are sound, so that’s

why we focused on human recourse, production and specially focused

on marketing aspects. So we have a vision of starting and running the

distinguish business. Our workforce is very specialized in different

aspects of the business. Our managers are directly linked with

marketing, human resource and production. So we can say that we

have a diversified workforce.

As we all know that finance is the backbone of the business. So

we gather investment of 25, 00,000. We both invest equally in this

business.

Marketing is very essential source for attracting and awarding

the customer towards the product and services. Our marketing team

advertises 5 weeks before the venture on different geographic FM.

Channels and through billboards. Our target markets are all kinds of

customers, like families, young generations and especially all kinds of

drivers of different transports. We would providing as much quality

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product and services as we could. The basic reason is that people was

frustrated with bad quality of foods and services, and no better place

for refreshing. So we decided that we provide unique environment

and quality products and services at minimal price. People encourage

us to move forward.

This is the project of entrepreneurship so we have to show new

and creative in our business venture. We provide different

demographic dinning hall, and also provide a big lawn and seating

arrangements for the purpose of dining. We try to provide all kinds of

foods items that demanded by the customers. The environment is too

romantic with the heart touchy music in dinning hall and open air

arrangements. Any way when we choosing the business we make a

complete schedule for it and a complete business plan for it. We have

complete collaboration from both of us, invest same and enjoy profit,

bear loss same.

Industry Analysis

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Industry Analysis

Future Outlook and Trends:

Environmental Factors:

In wah cantt, and its surroundings, like, Peshawar GT.

Road peoples are wanted to that place where they have

there refreshment, Quality food and Environment at

minimal price. So we have a massive campaign of

marketing in order to develop the awareness about our

Sarhad Punjab Hotel, it is opportunity for us to develop a

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new business with creative ideas in future and develop the

taste.

Customers:

Our target markets are all kinds of customers, like

families, young generations and especially all kinds of

drivers of different transports. We would providing as

much quality product and services as we could.

Competitors Analysis:

There are many indirect and direct competitor of our

hotel, but there are none in the local market that offer such a broad

range of foods. Although there are a number of business of hotels in

Islamabad, Rawalpindi, Peshawar and local market but they all very

expenses.

Market segmentation:

Our target markets are all kinds of customers, like

families, young generations and especially all kinds of drivers of

different transports. We would providing as much quality

product and services as we could.

Industry Forecasting:

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Industry forecasting tends to what’s the position of this

industry in future. We bother have the industry analysis and reach at

that point, the hotel industry is very big, unextinct and forever. The

business is running and running never dies. The hotel industry trends

in future are very bright and we have believed that we must take our

part of success.

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Description of Venture

Description of Venture

Products:

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We try to all types of foods like, especially Chicken Karahi, Bar

BQ, Running Sea Food Items, and all running vegetables, Especially

Demanded Dalls, Soft Drinks, Special Doodh Patti and Coffe Bar.

Services:

As we have quality workforce so we must try to provide quality

services. Fast And timely services. Hotel will be open 24 hrs. After

some time of establishing the business we will try to provide home

delivery system. We have an also a complete marriage ceremony hall

also.

Size of the Business:

We have a complete business plan. So according to our business

plan we start business with a single hotel and after our growth, we

waste our setup. We try to provide a chain of hotels after every 80 to

100 km.

Venture Equipments and personal:

We have 8 units of split air-condition, all furniture that needed,

music systems, a fountain fresh unit, a counter P.C. Tents, Ovens,

Crockery, Freezers and all the necessary things which are helpful for

us.

We have a quality workforce which is hired from local area.

Background of Entrepreneurs:

We are both the students of the COMSATS WAH CANTT and

doing M.B.A (Marketing). We always find better opportunities so

that’s the reasons we starts this business.

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Marketing Plan

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SITUATION ANALYSIS

Back Ground of the Venture:

The Sarhad Punjab hotel is first to provide its quality product

and services for this market so the basic aim of the venture is to

satisfy customers needs and wants. At present no as such kind of

competitors are offering such types of foods and services with the

nominal prices with unique environment. So we want to tape this

potential.

Competitor Analysis:

This hotel is having as such no competitors in wah. Green

Lagoon and Wah continental are hotels but they are very expensive.

No doubt these competitors are well established and strong but their

high prices are the key points for the Sarhad Punjab Hotel to

manipulate in their own interest, as customers here think them as

inaccessible and highly priced.

Competitors are having many years of expertise in this field as

well as them well aware the customers demand. So our strategy will

be cost minimization and verity.

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Strength and Weaknesses of the

Business

Strength:

First Mover advantage.

Profitable market potential.

No as such this type of competitors.

Different verities of Foods.

Affordability.

New concept of diet foods.

On the spot Bar BQ Facility.

Weaknesses:

No prior experience.

Resources not very huge.

Presence of competitors.

Less hostelling trends in local environment.

Marketing Objectives and goals:

To run the business profitably.

Create more awareness for the unique hotel.

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Capture the market share.

With the passage of time introducing new services like home

delivery services.

With the passage of time we expand our setup throughout the

country.

Marketing strategy and Action Plan

Product and Services:

Initially the products and services are provided at the hotel.

Special features of the product include different verities of the foods

according to customer’s popular taste and trends.

Products and services are available 24 hrs due the needs of the

customers, like drivers and passengers.

Pricing:

Special emphasis is being paid on pricing strategy as this

important aspect will be differentiate this business from its

competitors and will help in capturing the market share.

Distribution:

No traditional distribution channels are being used at starting

the business but after some while we use our own distribution setup.

Promotion:

Being a starting business it requires a massive promotional

campaign to create awareness among the target market. So

promotional campaign will start well before opening of the business.

For this purpose we will use a massive campaign of advertising. So we

use big banners for this purpose, Billboards, Advertising on FM

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channels like 97, 100, and 89. WE should develop the relations with

drivers to stop at the Sarhad Punjab Hotel.

Organizational Plan

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Development of Management Team

This is the group of two members and work is assigned

according to their qualification and abilities. We both Invest equally

and both of us active partners in this project. We hire a quality

workforce for the purpose of our business. So according to their

qualification and capabilities we divide the management. Our

managers indulge in marketing activities, some are preparing

documentation e.g. assessment cost and etc, as for as reporting

system is concern group is divided into four sub groups and members

of these subgroups are suppose to be report to head of the sub group.

Form of Ownership:

This is Partnership based business. In this business we

two business partner. We both are the student of MBA 3rd semester.

We both partner investing equally and providing equal services, so the

profit or loses will distributed equal.

Identification of Partners or Principals Shareholders:

We are both business partners. In our business no

shareholders exist, Due to potential estimate which we both can

equally invest in our business. We both all in all in our business.

Customer Relationship Department:

Every manger operations will be dealing the customer

affairs regarding any suggestions or complaints about the services

being provided by the Venture. Customers will have direct access to

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the manager operation at each level. Customers will be having direct

access through telephone and mail service.

Job DescriptionCEO: Abdul Haseeb Khan

Job Description:

Formulation of venture, Financial, Marketing Production and

Human resource strategies.

i. Financial Manager: Rashid Ahsan

Job Description:

Handing Cash flow and preparing financial statements.

ii. Marketing Manager: Abdul Haseeb Khan

Job Description:

Advertisement and promotion of the venture.

iii. Production Manager: xyz ( will be appointed)

Job Description:

Managing the overall production process of venture.

iv. H.R. Manager: xyz(will be appointed)

Job Description:

Making teams and assigning them different task and monitoring

of the venture.

v. Purchase Manager: Rashid Ahsan

Job Description:

Purchasing of raw materials and assets of the venture.

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vi. Workforce: Will be appointed.

Job Description:

Preparing foods and providing services.

Assessment of Risk

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Weakness of the Business:

These are weakness of our business which we find out

after the SWOT Analysis.

No prior experience.

Resources not very huge.

Presence of competitors.

Less hostelling trends in local environment.

Contingency Plan:

To increase the customer base and to create

awareness, Sarhad Punjab Hotel will be charging its less price

for their products and services for first 1 month.

If any customer has any complaint then the management will

arrange the alternative.

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If there will be need the specials cooks for specials dishes can

be hired.

Generators will be available for any situation if electricity failed.

Financial Plan

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CAPITAL REQUIREMENTS

Land: 1000000

Building: 1500000

Total: 2500000

Advertisement+ Promotional: 100,000

Salaries:

15 waiters: (15 * 2000)

30000

5 cooks: (5*4000) 20,000

Total Salary 50000

Cost of running items:

(20000*30) 600000

Revenue per Day:

(30000*30) 900000

Revenue From extra Point:

(Revenue from Marriage Hall) 100000

Total Revenue Per Month: 10,00,000

Total Cost:

Billing. (30000)

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Salaries. (50000)

Inputs Cost. (600000) 680000

Profit: 320000

Tax 15% on Profit: 320000* 15%= (48000)

Net Profit: 272000

1 st Year Projected Revenue and Cost Quarterly

1st Quarter:

Revenue 1500000

Cost 1800000

Loss 300000

2nd Quarter:

Revenue

210000

Cost

200000

Profit

100000

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3rd Quarter:

Revenue

2700000

Cost

2200000

Profit

500000

4th Quarter:

Revenue

2950000

Cost

2180000

Profit

7200000

2nd Year Projected Revenue and Cost

Quarterly

1st Quarter:

Revenue 298000

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Cost 220000

Loss 780000

2nd Quarter:

Revenue

3000000

Cost

2300000

Profit

700000

3rd Quarter:

Revenue

3200000

Cost

2400000

Profit

800000

4th Quarter:

Revenue

3800000

Cost

2800000

Profit

100000

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Quarters profits Accumulated

profits

investment

1-ist qurt (300000) -300000 2500000

2nd qrt 100000 -200000 2500000

3rd qrt 500000 300000 2500000

4th qrt 720000 1020000 2500000

2-ist qrt 780000 1800000 2500000

2nd qrt 700000 2500000 2500000

3rd qrt 800000 3300000 2500000

4th qrt 1000000 4300000 2500000

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Break-even analysis

-2000000

0

2000000

4000000

6000000

1-is

tqu

rt 3rd

qrt

2-is

tqr

t

3rd

qrt

Quarterly years

Pro

fit /

Loss

&

Inve

stm

ent

Accumulated profits investment

Conclusion

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Sarhad Punjab Hotel will achieve its objectives. It is said that In

the food industry the profit is double of the other industry’s profit. It is

the most attractive business in this locality. Return on investment is

very high.

On the basis of our finding we can conclude that it is one of the

most attractive business in this area and people response towards

Hotels are increasing and number of customer increases every day.

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