Abbreviated Business Plan

MRAS Family Inc.

Saira Khan
June23, 2014
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Table of Contents
Introduction 3
Vision, Mission and Values Statement 4
Funding plan 6
Setup plans 7
Marketing plan 8
Gantt chart 10
Expense Budget 11
Cash Position 12

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Introduction
MRAS Family Inc. is a convenience store business. It is located in Killeen, Texas. Killeen is
bordered to the north by Fort hood, which is second largest army base of United States, therefore
the economy of this city mainly depends on the soldiers and their families. The main focus of the
business is to serve its community my providing best customer service along with low cost daily
use products. The business will offers a product mix which includes dairy, bakery, snack food,
beverages, tobacco, grocery, health and beauty aids, frozen food, gasoline, and other produce
items along with simple food services. The business is expecting to capture the market share by
becoming the low cost leader in the retail industry. The business developed a proper funding, set-
up and marketing plans to execute the process smoothly.

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Vision, Mission and Values
Statement
Vision Statement
Our goal is to become one of the best customer service providers with an affordable
convenience by 2016.
The business offers a product mix which includes dairy, bakery, snack food, beverages, tobacco,
grocery, health and beauty aids, frozen food, money wire services, bill pay services, gasoline and
other produce items. It is intended to get the competitive advantage by selling high quality items
at low cost to its customers.
The business is located in Killeen, Texas. Killeen is bordered to the north by Fort hood, which is
the second largest base of United States, therefore the economy of the city mainly depends on the
soldiers and their families.
The customers are mostly active duty soldiers between the ages of eighteen to sixty. The median
income for a household in the city ranges from thirty-six-thousand dollars to forty-four- thousand
dollars. They value convenience and accessibility, therefore the business is trying to provide all
the services at one location to fully accommodate their needs.
The business has four employees. It has two cashiers for morning and evening shifts
respectively, one manager and a back stocker. They are all friendly and motivated employees.
The business is known for its low cost items and the excellent customer service among its
competitors.
The annual sale of the business is approximately 1.4 million dollars. The store is planning to
open a new fast food restaurant inside the store. This act will increase the net profit by forty-
thousand dollars by 2019.
Mission statement
We will create the maximum value for our business through the strength of our customers. We
will provide the best customer service to our customer by hiring friendly and motivated
employees. We will make their shopping experience memorable with our customer service.
Value Statement
We operate our business in a safe environment. We recognize that it is our responsibility to
provide our employees a safe and hygienic working environment. We are honest and open with
each other, our customers and our employees. We understand the value of our customers and the
employees to our corporation success. We trust respect and value the opinions of our employees.
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We reward our employees on the basis of their performance and contribution to the corporation.
We will be competitive through efficient and reliable operations, high quality products and
superior customer service. We will seek innovation and learn knowledge. We will apply
technology as our competitive advantage.
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Funding plan
Our start-up requirements come to $400,000, which are largely single time fees associated with
opening the store. These costs will be finance by both private investors and a bank. We are
expecting to operate at loss for the first six months before advertising begin to take effect and
draw in the customers. The business will need periodic influxes of cash in order to cover
operating expense during the first two years as it strives toward sustainable profitability. Almost
all of the funding has been arranged through lending institution and private investors already. We
are not anticipating any cash flow problems during the next three years
1. The business is going to apply for a loan to cover the set-up expanses. It will take one
months to get approval from the bank. The president of the corporation will require three
weeks to locate the individual investors to cover the marketing cost of the business.
2. The vice-president will hire a consultant to develop a business plan. It will cost the
corporation approximately $3,000 per week. The consultant will take two weeks to
prepare a business plan, therefore it will cost the business $6000 to develop a well formed
business plan.
3. The secretary will provide the entire required document to the bank to process the loan
application. She will meet the bank manager on the behalf of corporation to negotiate on
the interest rate and the terms of the loan agreement. It will take three weeks to receive
any response from the bank.
4. The president and the vice president will also open a bank account for business. The bank
will take a week to process the information and it will cost the business around $120.00
.The business will use the bank account to process business transactions.
5. The vice-president of the business will contact all the vendors to sign the contracts. He
will take four weeks to contact all the vendors. He will provide all the required
information to the vendors .He will also negotiate the pricing with vendors after
developing a proper purchasing procedure.


Figure 1.Histogram of MRAS Family Inc.funding plan. Saira Khan.
San Antonio, Texas.2014
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Funding operations
Funding plan bar chart
Required time Cost Lending amount
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Set up plan
The business will need approximately $270,000 for initial set-up. In order to find a proper
location the business will need a real estate agent. The business also needs the funds for
leasing, remodeling, hiring, and training.
1. The president of the business will contact a real estate agent to find a best location
for the business. It will take two to three months to get a desirable location for
business. It will cost the corporation $28,000 to get a proper location.
2. The president and the vice-president of the corporation by the help of their real
estate agent will negotiate with the property owner to get a ten year lease of the
building. It will cost the business $3000 per month for ten years. The agent will take
three weeks to prepare a legal contract.
3. The corporation is leasing an old building, therefore it require some major repairs.
The remodeling of the business will take three months. The vice-president will
approve the funds for the renovation. The vice-president will hire the contractors to
remodel the entire building. It will ultimately cost the business $220,000.
4. The vice-president will hire consultant for the selection of best employees. The
consultant will take three weeks to complete his task. His service will cost the
corporation around $9,000.
5. The vice-president will get the help of secretary to train the new employees. They
will take two weeks to properly train the newly hire employees.it will cost the
business around $10,000.


Figure 2.Pie chart of MRAS Family Inc. Setup plan. Saira Khan.
San Antonio, Texas.2014
Setup cost
Location
Lease
agreement
Remodeling
Hiring
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Marketing plan
The main focus of the business is to fulfill the needs and wants of its customer. They value the
convenience, accessibility, availilbity of their daily need products at one location.
It is located in Killeen, Texas. Killeen is bordered to the north by Fort hood, which is second
largest army base of United States, therefore the economy of this city mainly depends on the
soldiers and their families. The median income for a household in the city is around $36,000-
$44000 dollars. The target prospects are mostly active duty soldiers between the ages of eighteen
to sixty. They usually prefer the stores where they can find all the necessary items of their need.
The business solely focuses on the wants and needs of their customers. It is mainly emphasizing
on the exceptional customer service. It is trying to meet the higher standards of customer service
to improve their customers shopping experience.
The business brand is associated with best customers service provider in the area. The customer
knows the business not only for exceptional customer service but also for its convience.it was
designated as a best business of the area by its customers.
The most critical element of the success will be its marketing and advertising. The business will
use the prominent signs at the store location, bill boards, social media, and radio advertisement to
capture the attention of its customers. It will estimate cost the business $130,000.
1. The corporation will get the services of an advertising agency to create proper radio and
local television advertisements to attract their customers. The secretary of the corporation
will provide all the necessary information to advertising agency. The advertising agency
will take three weeks to create an advertisement and it will cost the corporation around
$40,000.
2. The vice-president of the company will hire a local artist to create bill boards. He will
take two weeks to create the bill boards of in store promotions. The hiring of an artist will
cost the business approximately $10,000.
3. The president of the business will contact a software engineer to develop a personalize
website for the corporation. He will take one month to develop a website. It will add
additional $ 30,000 to the marketing cost of the business.
4. The secretary will create the social media webpages for the business. She will create the
Facebook, Tweeter, and Linked in accounts for the business to attract more customers. It
will take her six hours to create these accounts and it will cost around $100.
5. The vice-president will contact the local radio channels to negotiate an advertising deal.
He will convince them to play the business advertisements during their popular shows. It
will take two to three months and it will cost the business $49,900.


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Figure 3. Pie chart of MRAS Family Inc. marketing cost. Saira Khan
San Antonio, Texas.2014.

Marketing cost
Hiring advertisement
agency
Hiring an artist
Hiring a website
developer
Accesing social media
Negotiating with
radio channels