TiffinWallah BusinessPlan

*Please be advised all amounts are in Bangladeshi Taka, instead of US Dollar. 1 USD = 85 BDT 

Tiffin Wallah 

Executive Summary 

There is a need in Dhaka, Bangladesh for a selection of quality foods service similar to Mealpal, and Tiffin Wallah will sell this top-quality  food at a competitive price. The owner and sales manager have over 20 years of combined experience in business development and food service sales. We will continue to develop our excellent working relationship with smaller farmers and produce whole seller to bring the savings to the  customer. 

We will be successful because we offer something different: a timely pleasant experience with unmatched quality and hygiene practices. We  will create a service environment that caters to the customer’s needs on a budget. We are selling highly modifiable products and brand experience to  working-class young-men at price point that is only limited to certain caste group and limited to financially affluent neighborhoods in a country of  200 million people. We estimate an optimistic gross margin over the industry average. We will be successful because of the excellent team we have  assembled and the drive and determination of the owners.

1.1 Objectives 

1. 100% customer satisfaction, measured through repeat customers, referrals and surveys. 
2. To achieve and surpass the industry average profit margin within the first two-years. 
3. To achieve a respectable net profit by year two. 
4. To create a conglomerate that helps young entrepreneurs start their own venture  
5. To create a foundations that helps and educate small farmers to create better organic produce and stay in business through sustainable practices  

1.2 Mission 

“To exceed the customer expectation at every facet of the business relationship” 

Tiffin Wallah provides a unique lunch buying experience to the customers in the Dhaka region. One that focuses on customer’s needs, wants, and satisfaction in a market where vendor is always right. We understand that lunch purchasing is a necessary due to the distance between residential and  commercial space, options are limited and experiences are poor. Our goal is to provide the customer with an enjoyable, exceptional service by  satisfying individual customer’s practical lunch needs. 

We also believe it is important to have quality food at a low cost, and stellar service that should be limited the wealthy. Our company will make a  profit by generating sales. It will provide job satisfaction and fair compensation to its employees, and a fair return to its owners. Hard work and  performance is rewarded through bonuses and commissions. Job satisfaction is very important for employees and owners, we will create a work  environment that is enjoyable and profitable for all. 

1.3 Keys to Success 

To succeed in this business we must: 

• Put together a team of experienced professionals. 
• Secure an excellent communication and customer service outlet. 
• Establish a network of suppliers, in order to buy and produce products that are of the highest reliability and quality, at a competitive price. • Ensure customer satisfaction by encouraging the two most important values, taste, and Tiffin Wallah . 
• Create high morale by rewarding employee success with monetary compensation.

*Please be advised all amounts are in Bangladeshi Taka, instead of US Dollar. 1 USD = 85 BDT 

Company Summary 

Tiffin Wallah is an independently owned business, established in 2021 by an stretegy and customer service expert with over 15 years of customer  involvement experience. We provide a unique lunch buying experience for customers in Dhaka-Metro Area by providing inspected, top quality, fresh  food for working-class millennial and generation-x consumers, at a competitive price. We are conveniently mobile to serve anywhere with 5 miles  driving distance. 

2.1 Company Ownership 

Tiffin Wallah is a privately held corporation. It will be registered as a Subchapter S, with ownership 60%-Rafi Sarkar, 40%-Investor. 

2.2 Start-up Summary 

Almost 90% of start-up costs will go to asset creation. Start-up costs will be financed through a combination of owner’s investment, short-term Meal plans (VA business Meal-plan), and long-term borrowing. The start-up chart shows the distribution of financing. 

Other miscellaneous expenses include: 

• Legal fees for business establishment (ownership, and no sell agreement). 
• Stationary, office supplies. 
• Marketing/advertising fees. 
• Initial consultation to establish records with an accountant. 
• Rent for lot and office. 
• Establish a Web page for advertising. 
• Expensed equipment (two computers, two desk, Fax/copier, phone lines, and office furniture). 
• One month initial start-up investment in foods.

START-UP REQUIREMENTS 

Start-up Expenses 

Legal $500 Stationery etc. $200 Advertising $1,000 Consultants (Accountant) $500 Rent $4,000 Expensed Equipment $4,500 Internet Web page $1,000 Other $500 TOTAL START-UP EXPENSES $12,200 Start-up Assets 

Cash Required $67,800 Start-up Inventory $50,000 Other Current Assets $0 Long-term Assets $0 TOTAL ASSETS $117,800

*Please be advised all amounts are in Bangladeshi Taka, instead of US Dollar. 1 USD = 85 BDT Total Requirements $130,000 

START-UP FUNDING 

Start-up Expenses to Fund $12,200 Start-up Assets to Fund $117,800 TOTAL FUNDING REQUIRED $130,000 Assets 

Non-cash Assets from Start-up $50,000 Cash Requirements from Start-up $67,800 Additional Cash Raised $0 Cash Balance on Starting Date $67,800 TOTAL ASSETS $117,800 Liabilities and Capital 

Liabilities 

Current Borrowing $100,000 Long-term Liabilities $0 Accounts Payable (Outstanding Bills) $0 Other Current Liabilities (interest-free) $0 TOTAL LIABILITIES $100,000 Capital 

Planned Investment 

Owner #1 $20,000 Owner #2 $10,000 Additional Investment Requirement $0 TOTAL PLANNED INVESTMENT $30,000 Loss at Start-up (Start-up Expenses) ($12,200) TOTAL CAPITAL $17,800 TOTAL CAPITAL AND LIABILITIES $117,800 Total Funding $130,000

*Please be advised all amounts are in Bangladeshi Taka, instead of US Dollar. 1 USD = 85 BDT 

2.3 Company Locations and Facilities 

• The company office is located at Mirpur, Sector 1, Dhaka, Bangladesh. 
• The office and Kitchen is approximately 1,000 square feet and has ample space for the first three years of growth. • The 20,000 square foot lot and building is leased from the principal owner for supplies and storage.

Products 

Tiffin Wallah sells food and stellar service at a competitive price. Tiffin Wallah buys produce that are not retail sale quality from well known  wholesalers, and small local farmers. Tiffin Wallah continually maintains a diverse stock of produce, providing the widest selection for individual  needs. 

Produce are purchased daily, to add to the current stock on hand. Each produce category is thoroughly inspected by chef with over 25 years of  experience. Only produce that pass this critical inspection and taste test are kept on site for use. 

3.1 Product Description 

Tiffin Wallah sells all types of food from traditional South-Asian cuisine to western-fast food. We cater to each customer individually, to satisfy his  own practical needs and wants. We buy only the best produce at or below wholesale in order to bring the savings to the customers. We also offer  custom menu creation service to customers. If we do not have the food they want in stock, we will modify our existing menu or find one for them. 

3.2 Competitive Comparison 

Tiffin Wallah has several advantages over its leading competitor: 

1. Quality inventory, backed by an excellent customer service, for a competitive price. 
2. A very thorough inspection process and hygiene practices to avoid selling any cross contaminated food. 
3. A highly experienced sales staff with a mission to serve the customers by making the necessary purchase of a lunch an enjoyable experience with unmatched customer satisfaction.

*Please be advised all amounts are in Bangladeshi Taka, instead of US Dollar. 1 USD = 85 BDT 

3.3 Sourcing 

Sourcing is critical for any enterprise, and has a direct impact on food pricing. Our primary source for produce is the local farmers (Salar, Tongi) who  wholesale produce to reduce a large unsold food inventory. We will thoroughly inspect each produce and select only the best at our price margin to  maintain a high quality of inventory. We will also provide a consignment service, by exception, for quality produce that are in demand, for a 15%  handling fee. Lastly, we will take limited trades of unsold goods from retail shops; ensuring end value is at or above wholesale price. The majority of  our lunch will be priced between $1,000 and $10,000, averaging $5,000 per category. A far greater profit margin is available for low-end $2,000  lunch menu than high-end $10,000 lunch menu. Most sales promotions and advertising costs are limited, and will be handled in-house by our record  keeper. 

3.4 Sales Literature 

Tiffin Wallah will use local advertising in daily newspaper classified, Food Ads, and the blogs to reach our customers. 

• Newspaper advertisements in Dhaka Tribune regional newspapers that advertise specific sales promotions. 
• Online lunch classified through a company Web page.

3.5 Future Products 

Future products will include specialized sales in holiday menu, specialty food and sea/fish products. These products will be purchased and sold  through the same methods. They will further diversify a wide selection and there exist limited competition in the food sector business. 

Market Analysis Summary 

Almost everyone needs food to sustain themselves. Many young men are so far from home that they cannot bring food and store it properly. Due to  the recent success in economy, there is a large disposable income for lunch buying. New cuisine sales have enjoyed the largest single month gain in  October 2019, up 24%. 

4.1 Market Segmentation 

Our market segmentation will consist of four basic segments; Youngman, supervisors, husband, and singles. 

Young-men (student) will include college age students who need a safe and economical food. This group is concerned with price, flashy looks, and  being cool. These buyers tend to be less educated and will buy on impulse paying more for less food. They will also buy food more often than others,  on average every two to three a day.

*Please be advised all amounts are in Bangladeshi Taka, instead of US Dollar. 1 USD = 85 BDT 

The supervisor (retired/business owner) group will focus on practicality. Cost may be less important than quality and features. This group wants  comfortable, nicely equipped dishes at a reasonable price. They will want a lunch that will satisfy their hunger. 

Husband (family) will focus on safe, practical food. Something that will get him through the day, can relieve stress, and meet all his needs. Many  will be on a budget, and price may be a big factor. They will shop around and educate themselves on lunch, shopping for a specific menu or food. 

The last group is the Cool Guy (singles). They are similar to the Youngman in that they want flashy cool trend, but may be a working professional  who can afford to pay more for a higher-quality food. 

The Market Analysis pie chart shows an average increase of 10% in potential customers. Many of these groups will want to trade up for a newer  or more expensive food at a later date. This will create an ever-increasing market for used car buyers. 

MARKET ANALYSIS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 

Potential Customers Growth CAGR 

Students 10% 45,000 49,500 54,450 59,895 65,885 10.00% 

Retired 12% 60,000 67,200 75,264 84,296 94,412 12.00%

Families 10% 400,000 440,000 484,000 532,400 585,640 10.00% 

Singles 10% 200,000 220,000 242,000 266,200 292,820 10.00% 

Other 10% 20,000 22,000 24,200 26,620 29,282 10.00% 

Total 10.17% 725,000 798,700 879,914 969,411 1,068,039 10.17%

4.2 Target Market Segment Strategy 

We focus on providing for the average lunch buyer first. Our focus will be on those most likely to purchase low-end, low-cost food (highest profit  margin). The youngman, supervisor, husband, and cool guy have very different needs and wants. We will focus on each group separately, and  prioritize our efforts. We will look at every customer as a potential repeat customer, reference, or spokesperson for other meal buyers. 

4.2.1 Market Needs 

There are two important underlying needs: quality service before food at competitive prices, and a large supply of available food menus. 

1. There is a real need for a highly professional restaurateur who can provide quality food at competitive prices, through hygienic environment. 2. There is also a practical need for new food provider to move a large amount of food inventory that takes up valuable space on supplier’s lots. 4.2.2 Market Trends 

We have four major trends that help us: 

1. New food sales have boomed over the last five years. This has contributed to a large supply of quality lunches and a 14% growth in food sales.  October 2019 had a record sales increase of 24%. Consumers recognize the value of a good readymade mood, and are willing to pay for it. Even  those consumers who would be more prone to purchasing restaurant food are now purchasing meal plans. 

2. Lower prices, and a higher income are creating an opportunity for buyers to purchase more food for the same price. Food service plans are  currently as low as $60. Typically many have paid as much as $100-120. The consumer’s savings are in the thousands for a long-term buying. 

3. Specific food, like burgers and Chinese are more popular and have sold better than curry based food. 

4. Meal plans are becoming more popular for work due more hours spent working and traveling. 

4.2.3 Market Growth

*Please be advised all amounts are in Bangladeshi Taka, instead of US Dollar. 1 USD = 85 BDT 

According to available market information, meal plans have risen 14%. Spending on meal plans continues to rise, despite a slowing economy. As  population increases in the area, so will the need for meal plans. Another strength is the fact that people are constantly seeking different style of food.  The average person buys a new dish every four days: The result is continued increases in sales and profit margins. 

4.3 Industry Analysis 

• The meal plan industry is continuing to grow at or above population increases. Food is the second largest purchase most consumers make, and  more people are buying ready made food than ever. 

• Relatively good margins have resulted in some success in the local restaurant industry. 

4.3.1 Competition and Buying Patterns 

Food and restaurants are notorious for unethical sales & production practices. Customers are inherently cautious and untrusting as a result. The more  we can provide a high-quality food experience, the more successful we will be. Our salesmen will provide a friendly and personal experience for the  buyer. We will follow up and ensure customer satisfaction. We will rely on these customers for an excellent reference to other lunch buyers. This  company will build an excellent working relationship with our suppliers and customers. 

4.3.2 Industry Participants 

Meal plan providers in the area are still relatively average in size. Restaurants have varying degrees of success based primarily on location, products,  and the sales team assembled. Quality sales personnel are usually not adequately compensated for their services, and as a result they tend to move  from one business to the next. 

4.3.3 Main Competitors 

Our closest, similar competitors are Aladin Sweets, Home-cooks, & local restaurants. 

• The primary competitors will be those in and around Dhaka City. Home-cooks is a large, well-established taste buds, with approximately 75% of  the local market share. Home-cooks has a large operation however without a well-trained service staff. Our sales manager is a former Home cooks sales manager, who understands the competition’s operations very well. 

• Aladin-Sweets offers a limited selection, and appears to be unorganized. Aladin’s does not offer any competitive marketing or food inventory and primarily focuses on the $1-2,000 producs. 

Strategy and Implementation Summary 

Our location is a very important competitive edge. We are in Dhaka City because people travel from all over the area to work there.

*Please be advised all amounts are in Bangladeshi Taka, instead of US Dollar. 1 USD = 85 BDT 

The other competitive edge we need to develop is the service experience and reputation as a local leader in customer satisfaction. This advantage is  important to us because we rely on word of mouth to generate additional customers. Tiffin Wallah is our difference. 

5.1 Marketing Strategy 

Our marketing strategy will focus on two segments. Those segments are described in the following subtopics. We will implement a strategy that  treats customers as a community. This means our marketing resources will be centered on advertising both sales promotions (events) and personal  sales (customer service, friendly atmosphere). 

• The marketing budget will not exceed $6,000 per year. 

• Marketing promotions will be consistent with the Mission Statement and support the following objectives: 

1. 100% customer satisfaction, measured through repeat customers, referrals and surveys. 

2. To achieve a respectable profit margin within the first three-years. 

3. To achieve a healthy net profit by year two. 

5.1.1 Pricing Strategy 

Our pricing strategy will be based on competitive restaurant prices plus vat fees. We will not exceed competitive retail prices, and will attempt to sell  at wholesale plus a fair profit, generally 15-25%. Quality and price say a lot about our food. The lunches that are rare or not readily available to meet  demand will be priced accordingly. The average industry mark-up for similar food is 20-30%. 

5.2 Sales Strategy 

Sales compensation is based on a percent of profits. We will invest adequate time and resources into training each member of the sales team and  into good customer relations. Salesmen will be paid a portion of their salary based on commission. Good performance is rewarded with increased  commission and bonuses. However integrity will not be sacrificed for sales. Customer satisfaction will continue to be a top priority. All potential  sales will be attended to in a timely fashion and long-term salesperson-customer relationships will take precedence over sales closure. 

5.2.1 Sales Forecast 

The following table and charts give a run-down on forecasted sales. We expect sales to increase at a slow rate per month for each product in the first  year. From June through September we expect minimal growth during our start-up period. October through December we expect decreased sales due  to historical trends, and a depreciation in value based on less demand. February through August we expect increased sales growth again. In 2004 and  2005, we expect solid steady sales growth as Tiffin Wallah claims a larger market share. We expect increased sales in lower-priced foods, and this 

*Please be advised all amounts are in Bangladeshi Taka, instead of US Dollar. 1 USD = 85 BDT 

will be our primary product that yields the highest margin. We feel this sales forecast is realistic based on the market analysis of similar businesses  performance. The opportunities for used car sales has increased with the high sales of new foods, increasing the number of quality late model used  foods in the market. More new car buyers directly effect the number of used cars available. The current low interest rates also have a positive impact  on the high-end food purchases. The population growth in the area creates a need for more foods as well. 

The risks involved with this forecast include technology and the need for low impact environment friendly transportation. Older used cars tend to be  less efficient, and will become less popular. Current hybrid foods are priced extremely high, and car makers have not found an economical answer for  consumers. We estimate conservative earnings from selling extended warranties and from selling Meal-plans (we will sell the Meal-plan for the  lender). 

Note: For food purchases, the per-unit price of inventory purchases includes the cost of detailing foods. 

SALES FORECAST 

YEAR 1 YEAR 2 YEAR 3 

Unit Sales 

Low-end food 298 320 345 

Average food 154 162 170 

High-end food 79 85 90 

Meal-plan sales 166 175 200 

Holiday sales 136 140 150 

Other 49 50 50 

TOTAL UNIT SALES 882 932 1,005 

Unit Prices Year 1 Year 2 Year 3 

Low-end food $2,000.00 $2,200.00 $2,400.00 

Average food $4,979.87 $5,100.00 $5,200.00 

High-end food $9,958.23 $10,200.00 $10,500.00 

Meal-plan sales $400.00 $400.00 $400.00 

Holiday sales $200.00 $200.00 $200.00 

Other $5,000.00 $5,100.00 $5,200.00 

Sales 

Low-end food $596,000 $704,000 $828,000 

Average food $766,900 $826,200 $884,000 

High-end food $786,700 $867,000 $945,000

Meal-plan sales $66,400 $70,000 $80,000 

Holiday sales $27,200 $28,000 $30,000 

Other $245,000 $255,000 $260,000 

TOTAL SALES $2,488,200 $2,750,200 $3,027,000 

Direct Unit Costs Year 1 Year 2 Year 3 

Low-end food $1,200.00 $1,100.00 $1,000.00 

Average food $3,500.00 $3,500.00 $3,500.00 

High-end foods $8,000.00 $7,900.00 $7,800.00 

Meal-plan sales $0.00 $0.00 $0.00 

Holiday sales $0.00 $0.00 $0.00 

Other $4,500.00 $4,500.00 $4,500.00 

Direct Cost of Sales 

Low-end foods $357,600 $352,000 $345,000 

Average foods $539,000 $567,000 $595,000 

High-end foods $632,000 $671,500 $702,000 

Meal-plan sales $0 $0 $0 

Holiday sales $0 $0 $0 

Other $220,500 $225,000 $225,000 

Subtotal Direct Cost of Sales $1,749,100 $1,815,500 $1,867,000

5.2.2 Sales Programs 

Sales programs will include sales awards for the highest sales, bonuses, and customer service awards for those employees who best exemplify Tiffin  Wallah ‘s commitment to customers. 

We will provide quarterly training and educational opportunities by sending employees to professional development training for their respective area. 

5.3 Strategic Alliances 

We depend on our alliance with local farmers and wholesalers to maintain our inventory. This relationship is crucial to our success and will be placed  ahead of petty differences. Our financial relations with these groups will be handled in a timely and accurate manner. We need to make sure that the  personnel, and especially the ownership, of our allies are aware of our support and reciprocation. We will also depend on outside sources for  professional development of our sales staff.

*Please be advised all amounts are in Bangladeshi Taka, instead of US Dollar. 1 USD = 85 BDT 

5.4 Milestones 

The accompanying table lists important program milestones, with dates, managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation. The milestone table shows purchasing and marketing goals. What the table doesn’t show is the commitment behind it. Our business plan includes complete provisions for plan-vs.-actual analysis, and we will hold follow-up meetings every month to discuss the variance and course corrections,  and a final plan review on 5/1/21.

MILESTONES 

Milestone Start Date End Date Budget Manager Department 

Business Plan 10/15/2020 11/19/2020 $0 Owner Marketing 

Purchase Lot 1/1/2021 5/1/2021 $0 Owner Marketing 

Complete Legal 1/1/2021 1/1/2021 $500 Owners Management 

Establish Suppliers 1/1/2021 6/1/2021 $0 Sales Mgr Sales 

Establish Acctg Books 1/1/2021 5/1/2021 $500 Owner, admin Records 

Final Plan Review 5/1/2021 5/1/2021 $0 Owner ALL 

Purchase Office 5/1/2021 5/15/2021 $4,700 Owner Administrative

Supplies/Equip 

Purchase Inventory 5/1/2021 6/1/2021 $50,000 Sales MGR Sales 

Grand Opening  Advertisement 

5/1/2021 6/1/2021 $500 Sales MGR Administrative 

Hire Employees 5/15/2021 5/20/2021 $0 Owner Management 

Company Party 7/1/2021 7/1/2021 $200 Owner Administrative 

Totals $56,400 

Web Plan Summary 

Tiffin Wallah has a long-term plan of developing a Web page through Wix that customers can visit and view a list of current menus. We anticipate  being operational within four months of opening. This would allow those customers who are seeking a specific food to save time by looking before  they contact us. We will include photos and general information for each food. 

We will rely on outside help to initially establish the page. We intend on maintaining the site ourselves through our record keeper and sales manager.  Our Web page would be advertised through all correspondence, business cards, and advertisements. This will provide a “link” to additional  information. 

We will measure success through the hit counter and customer feedback, and re-evaluate or modify the Web page as necessary. 

6.1 Website Marketing Strategy 

Marketing for a retail business depends on recognition for expertise. It starts with our existing customer base, informing them of our Internet  presence and encouraging their word-of-mouth recommendations to others. 

We will develop and maintain a database of food inventory. From there we add specific information on each food, and an aggressive search engine positioning program. We use the database to make regular contact with email newsletters and notices about new arrivals, special offers, and referral  services. 

6.2 Development Requirements 

The Tiffin Wallah website will be initially developed with few technical resources. A simple hosting provider, Wix Web services, will host the site  and provide the technical back end.

*Please be advised all amounts are in Bangladeshi Taka, instead of US Dollar. 1 USD = 85 BDT 

Tiffin Wallah will work with a contracted user interface designer (university student) to develop the simple, Internet-focused site. The Tiffin Wallah  employees themselves will do the maintenance of the site. Tiffin Wallah can also look into pre-packaged solutions through Wix Web hosting. 

Management Summary 

Tiffin Wallah will start with four initial employees. The owner will manage over all operations and the sales manager will manage all buying and selling of inventory. A cook clerk and assistant attendant will also be hired initially. 

Once the gross margin and cash flow will support it, we will hire an additional salesman and services attendants (tentatively four to six months). 

7.1 Personnel Plan 

The personnel plan and monthly salary is included in the following table. It shows the owner’s monthly salary of $3,500, followed by the sales  manager of $2,500 plus a 20% (after cost) sales commission. The secretary/administration will earn $2,000 per month and the lot attendant is paid  $1,200 per month. Bonuses will be paid for monthly sales that exceed forecasted sales, to all employees. As the business grows, additional salesmen  and a services attendant will be added. 

PERSONNEL PLAN 

YEAR 1 YEAR 2 YEAR 3 

Production Personnel 

Owner/Manager $42,000 $50,000 $60,000 

Other $0 $0 $0 

SUBTOTAL $42,000 $50,000 $60,000 

Sales and Marketing Personnel 

Sales Manager $30,500 $35,000 $40,000 

Other $0 $0 $0 

SUBTOTAL $30,500 $35,000 $40,000 

General and Administrative Personnel 

Secretary/Records Admin $24,300 $26,500 $29,000 

Service Attendant $14,550 $15,500 $16,500 

Other $0 $0 $0 

SUBTOTAL $38,850 $42,000 $45,500

Other Personnel 

Accountant $2,000 $2,000 $2,000 

Other $0 $0 $0 

SUBTOTAL $2,000 $2,000 $2,000 

TOTAL PEOPLE 0 0 0 

Total Payroll $113,350 $129,000 $147,500 

Financial Plan 

1. Growth will be moderate to good, cash flows steady with several months of loss in 2021-2022. 

2. Marketing will remain below 10% of sales. 

3. The company will invest residual profits (10%) into financial markets and approximately 50% into company expansion for the first year. 8.1 Important Assumptions 

We will accept credit cards and pre-tax salary. Credit cards will have a negative affect on cash flow in that we may not be paid for several  days. Salary will also impact cash flow in that they are an asset and have no real value until received. We will have to limit the number of credit  transactions, and only take in guaranteed salary at a premium price to facilitate a quick profit. The personnel burden is very low because benefits are  not paid to part-timers. And the short-term interest rate is extraordinarily low because of current market rates. 

We also assume conservative earnings from selling Meal-plans and extended buys will be made. The other assumption is that current market  conditions will remain for the next two to three years. High income rates will have a positive impact on sales and more buys on the short term. 

GENERAL ASSUMPTIONS 

YEAR 1 YEAR 2 YEAR 3 

Plan Month 1 2 3 

Current Interest Rate 7.00% 7.00% 7.00% 

Long-term Interest Rate 10.00% 10.00% 10.00% 

Tax Rate 30.00% 30.00% 30.00% 

Other 0 0 0 

8.2 Key Financial Indicators

The following chart shows that inventory turnover speeds up as sales increase. This correlation is important when evaluating past inventory control  techniques. 

8.3 Break-even Analysis 

The following break-even analysis table has been completed on the basis of average costs/prices. With average per unit sold costs and average  variable costs as shown, the table calculates what we need to make per month, or sell in units, to break even each month.

BREAK-EVEN ANALYSIS 

Monthly Units Break-even 18 

Monthly Revenue Break-even $49,867 

Assumptions: 

Average Per-Unit Revenue $2,821.09 

Average Per-Unit Variable Cost $1,983.11 

Estimated Monthly Fixed Cost $14,813 

8.4 Projected Cash Flow 

We are positioning ourselves in the market as a medium risk concern with steady cash flows. Accounts payable is paid at the end of each month,  while sales generally in cash give Tiffin Wallah an excellent cash structure. Initial cash flow in July will be negative, there will be steady increases  until October has a negative flow. Again a steady increase in positive cash flow until another slow loss in May. For year 2022-2023 we see a solid  overall increase. All cash flow over 50% will be re-invested into the company. At least 10% of which will be invested in long-term assets. We will  reserve up to 5% for bonuses, sales awards, and professional training.

PRO FORMA CASH FLOW 

YEAR 1 YEAR 2 YEAR 3 

Cash Received 

Cash from Operations 

Cash Sales $2,488,200 $2,750,200 $3,027,000 

SUBTOTAL CASH FROM OPERATIONS $2,488,200 $2,750,200 $3,027,000 

Additional Cash Received 

Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $150,000 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $30,000 $0 $0 Sales of Other Current Assets $0 $0 $0

Sales of Long-term Assets $0 $0 $0 

New Investment Received $0 $0 $0 

SUBTOTAL CASH RECEIVED $2,668,200 $2,750,200 $3,027,000 

Expenditures Year 1 Year 2 Year 3 

Expenditures from Operations 

Cash Spending $113,350 $129,000 $147,500 

Bill Payments $1,969,644 $2,181,397 $2,251,696 

SUBTOTAL SPENT ON OPERATIONS $2,082,994 $2,310,397 $2,399,196 

Additional Cash Spent 

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 

Principal Repayment of Current Borrowing $24,000 $24,000 $24,000 

Other Liabilities Principal Repayment $0 $0 $0 

Long-term Liabilities Principal Repayment $0 $0 $0 

Purchase Other Current Assets $0 $0 $0 

Purchase Long-term Assets $0 $0 $0 

Dividends $0 $0 $0 

SUBTOTAL CASH SPENT $2,106,994 $2,334,397 $2,423,196 

Net Cash Flow $561,206 $415,803 $603,804 

Cash Balance $629,006 $1,044,809 $1,648,613 

8.5 Projected Profit and Loss 

The key to increasing overall sales is to focus on acquiring foods at, or below, wholesale price. Operating, advertising and consulting costs will  increase at a slower rate than sales and profit in the next three years. Normally, a start-up company will operate with negative profits through the first  two years. We predict a positive gross margin during 2023, increasing modestly to 2025. This optimistic projection is based on the sales strategy and  market analysis. Projected sales will support continued operations, and final success will be based on actual sales and an increasing gross margin.