BUSINESS IDEA

2.1.1Title: Restaurant

Location: Moshi Town near bus terminal

Name of the business: ………………. Restaurant

2.1.2 Background

A health body and mind comes from healthy diets which include food and drinks because they
are needed by people for survival, also to keep them strength for manual work and survival. The
aim of establishing this business is due to the need of this service on the chosen particular area
(bus terminal) which is crowed by many people. The idea of restaurant arise from the fact that
food and drinks are used by many people. A restaurant will be allocated at Moshi town near bus
terminal with good appearance of huts and garden.

2.1.3 Key Success Factors:

 Competent and committed shefs, waiters, cleaners with experience of 2-3 years.
 Good facilities like chairs, tables, music equipments, refrigerators, and generator.
 The good huts with good appearance, attractive garden.

2.1.4 Validation/Market Assessment

 An estimated size of 85 percent of Moshi town people and visitors due small competition
 An estimated capital of 40.5 million for expenses and maintenance of the garden
 Price per order will be 5000 as minimum price and the maximum depend on the order.
 As restaurant is located in town we expect to increase number of customers from 150 in
currently served per day up to 300 next years.

2.1.5 Legal status

 The business will be registered under the partnership of DALON GARDEN.

 The partners of the business are Digna, Agatha and Retsolitse where the profit
and loss will be distributed according to contributed shares of each partner.

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  Our legal advisor will be Engineer Huruma Kidenya
3.0 OPERATION PLAN
3.1.1 Product or service design development
The proposed business service of selling food in drinks by restaurant will be labour by DALON
GARDEN intensive and less of capital intensive where by labour who will be employed will be
skilled and unskilled in order to perform in effective and efficient manner
The technology which will be used in our business is HOTEL MANAGEMENT where many
people will be graduates on various levels in Hotel Management certificates and diploma
The estimated cost will be 20mil
We intended to promote and develop air business by offering good customer service and high
quality products (food, and drinks) also the attractive and clear environment

3.1.2 Product facilities and capacity

a) Machine and equipment requirement
 Our business will need requirements such as gave stoves, refrigerators, table in chairs,
cooking requirement shelves, electronic equipments (Television, music system, electronic
cooking requirements)
 Our requirements needed will be supplied by cello company, Benson company electronic
limited, any gave supply who are presently located at Moshi where all our equipment and
machinery will be bought by cash.
 All the maintenance and repair will be done by Benson is company electronic ltd and orxy
gas supply where the spare parts will be available on these shops. The place we have will
allow the expansion in future some for our business.
b) Description of monthly raw material requirement
At critical stage we need 20mil for buying raw materials such as meat, vegetables, rice,
potatoes, bananas, and drinks will be obtains from Bonite Bottlers Company, Pepsi cola,
Azam Company available at Shirimatunda. Moreover all the raw materials will be available
since we have chosen good suppliers of them.

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3.1.3 Production Strategy
By ensuring use will produce a good and high quality products we will need (14) workers; I
accountant, 3 class, 4 cooks, 4 waiters, 1 gardener, 1 watch man. The costs will be as follows

Monthly cost requirement for labours in Tshs.

No NAME COST PER LABOUR TOTAL COST

1. 1 Accountant 200,000 200,000

2. 3 cleaners 80,000 240,000

3. 4 cooks 180,000 720,000

4. 4 Waiters 120,000 480,000

5. 1 Gardener 70,000 70,000

6. 1 Watch man 100,000 100,000

TOTAL 750,000 1,810,000

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The preliminary expenses for our service will be
ITEMS COST AT START

Transport 120,000

Electricity 200,000

Water 100,000

License 150,000

Salaries 1,810,000

Advertisement 200,000

Overheads 200,000

Product cost 2,500,000

TOTAL 5,280,000

3.1.4 Production process and service delivery

The internal factors that are likely to affect our business are as follows
 Negligence which may arise from workers.
 Workers peace of mind in health.
 Fraud by workers.
External environment
 Competition from other competitors
 Government policy and regulation
3.1.5 Government Regulation
The permit which is required before starting the business like license which is provided by
Tanzania Revenue Authority (TRA) that costing Tshs 200,000
This also may affect the business because it might take 2 to 3 days or more than that to get it.

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 4.0 MARKETING PLAN

4.1.1 Industrial Description and Position

 Generally restaurants were existing but were not enough to satisfy all people who are in
need of services from them.
 Due to our idea of opening a restaurant we expect to get many customer and having
market volume of 85% because most of our customers will be the workers who are
working on different institution near our restaurant, visitors from different regions,
tourists, students from university and also household, as we know people need to eat and
drink so as to be able to work efficiently.
4.1.2 Competition

There is a competition but not a stiff one compared from other restaurants like Uhuru Park,
Kindoroko Hotel and Leopard Hotel.

Strength of our competitors

 They are in the market for a long period of time more than us example Uhuru
Park Garden and Kindoroko Hotel.
 Some they have got large amount of capital example Leopard Hotel.
 They are familiar with the business since they have been doing it for long time.

Weakness

 High price on food and drinks which makes unaffordable to other customers they
offer them.
 Poor hygiene.
 Lack of well trained workers and poor customer services that do not attract
customers.

We expect to get more customers than our competitors due to the following reasons;

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  Giving good customer services including having good language to our customers.
 Provision of good and quality product such as delicious food and drink.
 Affordable prices of our services and products.

The expected market share of our business will be 85%

4.1.3 Location analysis

 Our business will be located near a bus terminal in Moshi town and due to presence of
vast number of people in the particular area it will lead to the growth and expansion of
our business. Also the large numbers of people the area, other people see the opportunity
of opening other business like boutiques, saloons, taxi services and cosmetic shops. This
will make a greater demand of our services. Though there is competition from other
competitors at the bus terminal but it is not stiff one.
 There is an area of expansion, but also there is an opportunity of opening new branches in
different places like Majengo, KCMC, and Marangu mtoni.
 The existence of other business will facilitate the growth and expansion of our business
since we will need some the products to make our business successful example: butchers
of meats, wholesale shops for domestic equipments, groceries, availability of market
example Soko la kati where we can get rice, banana, potatoes, vegetables and fruits.
 Our business place needs time to time maintenance to keep attractive scenery to our
customers.
 Our customer will access parking since we have already set good and enough space for
parking.
4.1.4 Price Determination
 Our price will be affordable to our customers.
 Our price will not be the same as of our customers.
 All customers who will need to get our services from us will be able to pay for our price
because they will be of different prices according to the order placed.
 A big advantage which our customer can get from us is variety of prices on all our
services and products will be affordable to everyone compared to our competitors.
 Credit will be offered but not to all customers and not all the time.

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 4.1.5 Marketing Approach
 Our preliminary test to show that customers will respond in a positive way.
 Our services will satisfy customers because our products and services will high and good
quality also in variety of prices.
 The image will be conveyed consistently by good customer service, variety of prices on
our services, hygiene of our surroundings or place and some addition value or advantages
like dessert.
 The media which will be used to make people know about our business are social
network such as Twitter, Face book, radio station such as Radio one stereo, Kili fm,
Radio free Africa and Clouds fm also television channel like ITV and EATV.
 The effectiveness of advertisement will be evaluated through the increase of the market
size.

5.0 ORGANIZATIONAL PLAN

5.1.1 ORGANIZATIONAL CHART OF DALON GARDEN RESTAURANT

BOARD OF
DIRECTORS

ACCOUNTANT

COOKS

SECURITY CLEANERS OTHER WORICERS

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- Waiters
- Gardener
Owners/ Management
1. …………………
2. ………………….
…………………
3. ……………………….

Academic qualification
……………………….. Bachelor of Arts in Microfinance and Enterprise Development
……………………… Bachelor of Arts in Microfinance and Enterprise Development
…………………… Bachelor of Arts in Microfinance and Enterprise Development
……………………….. Bachelor of Arts in Microfinance and Enterprise Development

5.1.2 Team management

 The business will be managed by partners duties and responsibilities is to control and
manage day to day operational activities of the business according to strategic plan of the
business future survival
 Salaries per month for each partner will be 600,000 as the profit shared equally
 Duties and responsibility of management team are as follows.
1a) Board of directors
 To supervise day to day activities
 To ensure proper use of resources available
 Dealing with day to day decision making of the business such as budgeting and stock of the
company
b) Accountant
 Responsible for managing the all business transaction like cash flow and cash flows
c) Cooks

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  To prepare all main day to day dishes
 To make sure the dishes are made on time
d) Watch man
 Responsible to ensure all things are well secured and maintain peace all the time
e) Waiter
 Responsible for serving food and drinks to the customers
f) Cleaners
 Responsible to clean all the place and arrange things properly so as to attract more
customer
SALARY SCALE
WORKER AMOUNT

- Board of directors 2,400,000

- Accountant 200,000

- Cooks 720,000

- Cleaners 240,000

- Watchman 100,000

 Performance incentives for the management team is bonus for the best work performance

Key personal
(i) Current staff
s/n Job Name Skill& strength

1. Accountant …………………. Cert & Diploma in

A/C 2 year
experience

2. Cooker …………………… Certificate 1 year

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 experience

3. Security ……………………….. Experience 1 year

4. Cleaners ………………… Form 4 level

………………… Form 4 level

………………….. Form 4 level

Future staff required

S/N Job Title Expected Skills necessary Date required Quantity
staff turnover

1. Procurement 2-3 years Certificate/ June 2014 1

officer Diploma in
procurement

Certificate/Diploma
Cookers
2. 3-5years in Hotel June 2014 2
Management

Standard 7 leaver

Cleaner
3. 1-2years August 2014 1

 Our recruitment options are going to be porching and formal requiring process through
interview where we will need to advertise for the job vacancies through radio, example Kili
Fm, Moshi Fm

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  Also Dalon Garden restaurant is going to provide training process through experts from
outside example a cook chief from another hotel like leopard
5.1.4 Supporting services
 The bank that we are going to use its services is CRDB (cooperative n- rural development
bank limited) bank because it is the most favorable bank as it has a microfinance window
 The financial advisor of our business will be CRDB
 Our legal advisor will be Timothy Kisima who is a lawyer
 Business advisor will be Kilimanjaro business consulting company
 Our postal service will be obtained from Moshi postal office

STAFF DEVELOPMENT AND REMUNERATION

 The performance of our employee will be evaluated through our objectives as a restaurant
being meet and the quality services offered to our customers
 Our training to our workers will be given at any time alen needed
 Rewards to as workers will be given to them through their working capacity and their
goal identified behavior towards customers and one another
 The performance incentives that will be used to out workers is businesses.
 Increase of a loose of any worker due to any reason like illness or death we will employ
another one example through using a broker to find one for us or through porching.

6.0 FINANCIAL PLAN

6.1.1 Current funding requirement
 Our business will need 40.5 million for start up.
 The source of capital that will finance our business will be contribution of Tshs 5 million
from each partner and 25 million will be borrowed from CRDB bank at Moshi branch.
 Partners’ properties like house, machines, land, and car will be used as collateral for the
bank loan.

6.1.2 The use of fund

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  The fund will be used to buy all equipments and facilities that will help to start up
our business.
 The borrowed fund will help us to buy materials like food, drinks, chairs and
tables but the remain amount will help to pay salaries.
6.1.3 Long range financial strategies
 The terms and condition for us to pay back the loan will be in terms of
installments.
 If we will not be able to fulfill our loan obligation we will sell some of the
assets in order to pay the loan.

6.1.4 Financial statement

A. PROJECTED INCOME STATEMENTS FOR THE FIRST THREE YEARS
2014 2015 2016

Sales 180,000,000 200,000,000 205,000,000

Less : Cost of 87,070,000 88,000,000 89,500,000

goods sold

GROSS PROFIT 92,930,000 112,000,000 115,500,000

Less : Operating
expenses

Utility bills 5,000,000 5,000,000 5,100,000

Rental 4,000,000 4,000,000 4,200,000

Staff costs 25,920,000 25,920,000 27,000,000

Repair and 1,000,000 1,050,000 1,060,000

maintenance

Carriage 300,000 400,000 450,000

outwards

Advertising 700,000 600,000 400,000

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 Printing and 80,000 - -
stationery

Miscellaneous 800,000 - -
expenses

Total expenses 37,800,000 36,970,000 38,,210,000

Net income 55,130,000 75,030,000 7,729,000

before tax

Tax rate 30% 16,539,000 22,509,000 23,187,000

NET INCOME 38,591,000 52,521,000 54,10,3000

B.PROJECTED BALANCE SHEET AS AT 31 FOR YEAR 2014 - 2016

NON – 2014 2015 2016

CURRENT
ASSETS

Fixture and 1,415,000 1,615,000 1,600,000

fittings

Other expenses 50,000 50,000 70,000

Refrigerators 4,080,000 4,100,000 4,220,000

Tables and 4,080,000 4,100,000 4,220,000

chairs

Cements and 4,080,000 4,100,000 4,220,000

sand

Premises 19,000,000 2,100,000 21,000,000

Gas tank 60,000,000 70,000,000 70,000,000

Cooking wares 18,000,000 18,500,000 19,000,000

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 Total non- 110,705,000 123,465,000 124,330,000
current assets

Less:
CURRENT
ASSETS

Stock - 900,000 -

Debtors - - 27,000

Bank 1,000,000 10,000,000 5,000,000

Cash 114,000 2,044,000 200,000

TOTAL 109,591,000 12,944,000 5,227,000

ASSETS

Financed by:

Capital 20,000,000 30000000 38000000

Add: Net profit 38,591,000 52521000 54,103,000

CURRENT
LIABILITY

Bank loan 30,000,000 20,000,000 18,000,000

Share capital 21,000,000 8,000,000 9,000,000

TOTAL 109,591,000 110,521,000 119,103,000

LIABILITIES

C. PROJECTED CASHFLOW FOR THE YEAR ENDED FROM 2014 – 2016

CASH 2014 2015 2016

INFLOWS

Opening - 38,854,750 60,669,500

balance

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Revenue 180,000,000 200,000,000 205,000,000

Total inflows 180,000,000 238,854,750 265,669,500

CASH
OUTFLOWS

Operating
expenses

Tax 16,539,000 22,509,000 23,187,000

Maintenance 25,000,000 25,000,000 25,000,000

Fittings 2,676,250 2,676,250 2,676,250

Rent 4,000,000 4,000,000 4,200,000

Interest on - 1,200,0000 20000000

loans

Purchases 92,930,000 11,200,0000 115,500,000

Total outflow 141,145,250 178,185,250 190,563,250

Closing 38,854,750 60,669,500 75,106,250

balance

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7.0 Risk assessment

7.1.1 Potential risk s and problems

Category of risk Description of risks and Mitigate measures

effects

Cost Overrun risk -This occurs when the -To maintain extra cash
implemented plan cost of reserve
our business exceed the
estimated cost. This may
lead to the increase in the
financial implications of
our plan
Decline in demand -This may occur to our -To find the competitive
business due to advantages, which will
competition from other differentiate us from
competitors other competitors
Fire -May occur due to the use -The use of fire
of electronic components extinguisher, fire blankets
like cooking stores and and fire alarms
other electronic devices
in case of a default
Theft -Theft risk might occur -Security cameras
when there are dishonest -Watchman
workers in the business or
bad customers who might
come to our business with
bad intensions of stealing

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 7.1.2 Contingent Plan
Our contingent plan if theft occurs then the watchman will be responsible, when the fire
occurs the use of fire blankets, fire extinguishers and fire alarm will be used. Also for the
case of fail to repay the loan as it was required our business will use the business reserve and
the problem is too serious we will sell the other business properties so as to recover the loan.

8.0 IMPLEMENTATION SCHEDULE

Description Person responsible

-Profit maximization of a -All workers are responsible partners,

business accountant, chef cooks, watchman,
cleaners, workers and gardener)
Goals -Provide good and quality
food and drinks to the
And
customer

-Meet the customer need and

Objectives
demand

-Maximize the wealth and

welfare of the owner
Verifiable -Financial statement -Accountant and board of directors
indicators -Cash flow
-Legal business documents
Responsible -Market strategies plan -Board of directors
authority -Formulation of policy rules
and procedures.

9.0 Attachments

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9.1.1 Salaries and wages assumption
S/N Worker Amount/month

1. Board of directors 2,400,000

2. Accountant 200,000

3. Cooks 720,000

4. Waiters 480,000

5. Cleaners 240,000

6. Gardeners 70,000

7. Security 100,000

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