BUSINESS PLAN

On

Food Truck

Ward No.: 33, Putalisadak

Kathmandu

Email: live_food01@gmail.com

Facebook: LIVE Food Truck

Phone number: 9841056345/ 01-4536789

Entrepreneurs

Bhumika Tripathi

Tanuja Baral

Shanker Dev Campus

Date: 4th July, 2018

Acknowledgement
Food is the most integral part of human life and is consumed every single day. The
business of serving food is growing day by day and food truck is a similar concept.
Our major objective is to provide the customers unique and healthy cuisines at
affordable prices. We plan on visiting the most busy and crowdy places inside the
valley and will be serving the customers need over there.

The idea of starting a food truck came from our personal visit to the truck itself
which is located in Pepsicola. Though that truck remained still in a single place,
we thought of modifying it a little to a mobile truck that can move around different
locations and many people can enjoy our service. We would like to express special
thanks to Sahara Food Truck team for their valuable time and information.

We are grateful to Associate Professor Krishna Prasad Acharya, Campus Chief,

Shanker Dev Campus; Associate Professor Achyut Raj Bhattarai, Director(BBA)
for their valuable support. Our special thanks goes to Lal Prasad Aryal, Faculty
member of Entrepreneurship, for instructing and guiding us all the way in
completing this project. We would also like to extend our gratitude to all our
friends for providing their ideas and suggestions.

Entrepreneurs

Bhumika Tripathi

Tanuja Baral

July 2018

Table of Contents
Executive Summary………………………………………………………1-3
1. Industry Analysis………………………………………………………4-5
2. Company Description………………………………………………….6-8
2.1 Mission Statement……………………………………………………......7
2.2 Objectives………………………………………………………………...8
2.3 Main Strategies…………………………………………………………...8
3. Market Analysis……………………………………………………….9-10
3.1 Geographic Variables…………………………………………………….9
3.2 Demographic Variables…………………………………………………..9
3.3 Psychographic Variables…………………………………………………9
3.4 Market Positioning and Market Share…………………………………..10
4. Economic Plan……………………………………………………….11-12
5. Operations Plan……………………………………………………...13-22
5.1 Operations System………………………………………………………13
5.2 Operations Strategy……………………………………………………..16
5.3 Product/Service Design…………………………………………………17
5.4 Maintenance System……………………………………………………18
5.5 Facility Design………………………………………………………….19
5.5.1 Capacity Planning…………………………………………………….19
5.5.2 Location Decision…………………………………………………….19
5.5.3 Layout Structure………………………………………………………21
5.6 Inventory Management………………………………………………….22
6. Management Team…………………………………………………..23-32
6.1 Organizational Hierarchy………………………………………………..23
6.2 Duties and Responsibilities……………………………………………...24
6.3 Communication System…………………………………………………31
6.4 Management Styles…………………………………………………….32
6.5 Leadership Styles……………………………………………………....32
7. Marketing Plan……………………………………………………..33-35
7.1 Marketing Strategies…………………………………………………...33
7.2 Marketing Mix………………………………………………………....33
8. Financial Plan……………………………………………………….36-47
8.1 Income Statement……………………………………………………....36
8.2 Cash Flow Statement…………………………………………………...41
8.3 Balance Sheet…………………………………………………………..44
8.4 Ratio Analysis………………………………………………………….45
8.5 Cost-volume-profit Analysis…………………………………………...47
Overall Conclusion………………………………………………………..49
 Executive summary
Business plan is a written document that outlines the future activity for an existing
or proposed business venture. It acts as roadmap for future, setting a course of
action. LIVE Food Truck will be a fast-casual dining concept that is designed to
appeal first and foremost to the millennial generation who are food addicts and
foodie. LIVE Food Truck will provide a combination of excellent food at value
pricing.

LIVE Food Truck’s product offering consists of unique range of Korean cuisines,
continental foods, chef’s mouth-watering signature dishes. The food truck is
committed toward bringing international flavored menu items that are fresh,
healthy, affordable and mobile. Naxal, Patan, Bhaktapur, Boudha and other
cultural sites and major chowks area is best known for commercialization of
restaurants and cafes because of the inflow of tourists in such cultural sites.
Besides there is broad spectrum of market segment targeted both home and foreign
consumers that helps to establish large customer base and consistent revenue to
ensure stability of the business. The food truck industry is booming like no other
industry. The food truck eatery culture has mushroomed exponentially as food
trucks can be savior of people from their mental stress and exhaustion, a place to
try out unique cuisine to break monotonous kitchen lifestyle and a trending
platform for your great eating experience. The core vision is to expand the food
truck’s outlets to the rest of the districts of Nepal besides limiting it to the
Kathmandu valley.

Keys to Success

The founder believes that they have the right combination of experience expertise
and vision to quickly put the food truck on a rapid track for growth and profit. The
following keys will contribute to its success:

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Short-term Strategy

 Provide customers with healthy, fresh and flavored food.

 Build a customer base of regulars who will not let a week go by without at
least one visit at LIVE Food Truck.
 Implement a customer loyalty program that which will allow LIVE Food
Truck to market directly to its target market.
 Focus on management and system of operations.
 Providing cooks a favorable environment to work.
 Delegate responsibility to management, continue repeating the process.
 Ensure the training is at the heart of operation and at the heart of customer
experience so that employees will be able to reach their full potential.
 Provide service that is beyond reproach to the surrounding community.
 Develop green initiatives such as recyclable packages and serving
techniques and local ingredients whenever possible.
 Ensure efficiency, value and consistency in the product and the experience.
 Use social media campaign to connect with customers.

Long-term Strategy

LIVE Food Truck’s first locations will be inside Kathmandu valley but it should
be noted that the food truck growth model is based on franchising model after
proof of concept has been achieved. The strategy calls for developing master
franchisees that will be opened in multiple locations in specific geographic areas
within a year of business activities; the management team will initiate business
expansion by opening branches at many more outlets moving from east to west.

Sustainability

LIVE Food Truck believes in having a positive impact on the community. The
founder will take the extra steps necessary to be good, responsible neighbors by

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incorporating sustainable practices at each opportunity. The restaurant will achieve
environmental sustainability through:
 All kitchen equipment are top rated for maximum energy efficiency
 All paper products and disposable utensils are biodegradable
 Whenever possible purchasing food products locally from farmers who
produce organic ingredients

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 1. Industry Analysis
A food truck is a large vehicle equipped to cook and sell food. It is like a
restaurant on wheels and can go to where the customers are. Our food truck
comprises establishments primarily engaged in preparing and serving meals from a
mobile truck. The truck may or may not use the same location each day and does
not sell alcoholic beverages.

Becky Delaware, from Paste, designed a food truck that traces the rise of food
truck, beginning in 2008. Selling food street side goes back to 1800s, where many
people did not have means to cook their own meals, vendor sold food from small
carts or street kitchen. In 2008, Roy Choi opened Kogi in Los Angeles, considered
one of the first gourmet food trucks. (Source: Wikipedia)

There is no exact history when it started in Nepal but it is an emerging concept in

Nepali market and there are about 2-3 food trucks company successfully operating
inside Kathmandu valley.

The food trucks industry is in the growth phase of its life cycle. Although growth
has tempered slightly over the past two years, revenue is growing at a much faster
rate than the broader food service sector. Food trucks have fared better than their
food service counterparts primarily due to the budget friendly characteristics of
their products and the rising trend of consumers seeking experimental food
concepts. Furthermore, the industry continues to evolve and new establishments
are still entering the industry with new concepts. Over the 10 years to 2022,
industry value added (IVA), which measures an industry’s contribution to GDP, is
expected to grow at an annualized rate of 4.9%.

(Source: US Market Research Report)

The food truck industry’s remarkable rise in 2017 shows that it has a huge scope
to operation. This industry serves an estimated 2.5 billion people every day
worldwide. Moreover, the changing consumer preferences in favor of unique,

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gourmet cuisines and ethnic menus at less expensive prices are largely attributable
for its growth. On seeing this trend, its operation in Nepal will be quite beneficial.

Threats Opportunities

Will have to contend with municipal Not being tied down to a location is
regulatory hurdles. indeed a great opportunity.

Will have to compete directly with the Proximity to densely populated area
broader food-service sector. can be beneficial.

Vehicular traffic in the city.

2. Company Description

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 We will be owing two food trucks at the starting phase, one is to serve vegetarian
items and the other to serve non-vegetarian items. The trucks will be moving
around different locations as per the routine.

 Sunday & Monday: Naxal, near to big mart

 Tuesday & Wednesday: Kamalpokhari
 Thursday & Friday: Baneswor
 Saturday: Around cultural heritage sites like Basantapur, Patan, etc.
which is always crowded with tourists and locals on Saturdays.

We will also be moving to concerts and different programs as per the situation. We
will also take orders from customers to provide our food truck service in a
particular place during programs like seminars, meetings, sport events, etc.

Name of the Company: Live Food Truck

Location: Putalisadak (near Star Mall), Ward No.33, Kathmandu

Products available Ingredients

1. Momo items
 Veg momo Flour, cabbage, carrot, onion
 Chicken momo
Flour, chicken kima, onion

2. Samosa items
 Veg-samosa Flour, potato, coriander, peanuts,
onion
 Chicken-samosa
Flour, chicken gravy, coriander,
onion

3. Noodles
 Veg-chow Mein Chow Mein base, onion, cabbage
 Non-veg (egg + chicken)
Veg items + chicken, egg

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  Ramen noodles Spicy ramen noodles from market

4. Sausage
 Chicken sausage Ready-made sausage
 Buff sausage

5. Burger items
 Veg-burger Buns, sauce, onion, tomato, lettuce
 Non-veg (chicken + fish)
Veg items + chicken, fish patty

6. Special items-Japanese cuisine

 Sushi(non-veg) Sushi rice, sushi grade tuna, nori
sheets, peeled carrot, avocado,
cucumber
 Cheese fries
Potato, American cheese

Note: oil, salt, spices (masala), turmeric, chilly powder, pepper, garlic, ginger, etc.
are to be used in almost all items as per requirements.

2.1 Mission Statement

The only mission of our company is to prevent customers from unhealthy,

chemical filled foods by providing best quality foods, organically grown and
prepared in a clean environment.

2.2 Objectives of the Company

 To provide fresh and healthy foods.

 To promote and encourage locally available farmers by using their
organically grown vegetables and even local meats.
 To serve unique needs of customers at affordable prices.
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2.3 Main Strategies

Our main strategy will be differentiated products which would provide us a

competitive advantage. Our unique selling proposition, parking locations and
menus would create differentiation to achieve competitive advantage.

Strength Weakness

Financial capacities Difficulty in operation during rainy

season

Capacity to serve over 500 customers Service might be delayed due to

per day. large number of customers.

Relationship with brand experts.

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 3. Market Analysis
A market analysis is a comprehensive assessment of the market both quantitatively
and qualitatively. A market is the place where our products get sold and its
analysis is very important in order to succeed. The market analysis breaks the
industry into segments and zeroes in on the specific segment or the target market
to which the firm will try to appeal. The first task that’s generally tackled in a
market analysis is to segment the industry the business will be entering and then
specify the specific target market in which it will focus.

3.1 Geographic Variables

We are planning to target the customers in the major markets of Kathmandu city
like Naxal, Kamalpokhari, Baneshwor, cultural heritage sites, etc. in the beginning
phase. Later, we will be covering the whole Kathmandu valley that lies in
Province number 2 of Nepal. If we would be able to gain profit and position
ourselves in the duration of one year, then we will further expand it to emerging
cities of Nepal.

3.2Demographic variables

We will be offering varieties of food items daily and will have special items in
special occasions which can be consumed by all age group people thus we will
have a large number of customers that will be quite beneficial for us. Similarly,
our products will be targeted to medium and low income group people that would
be a plus point for us. Our truck will move to densely populated areas of
Kathmandu valley to serve as much customers as we can.

3.3 Psychographic Variables

As fast food is consumed mostly by all people, it is targeted to those who have the
need or habit of eating outside. The people having an average lifestyle are to be
targeted as per our product’s nature. Similarly, we will be offering both vegetarian

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and non-vegetarian items, that too, in separate trucks so people following different
cultures and values can easily afford it.

3.4 Market Positioning and Market Share

There exists competition from the restaurants and cafes operating around our
targeted locations, but our differentiated products made from organic materials as
well as the special menus of different countries on a routine basis at affordable
prices will help us to position ourselves among the competitors. Similarly, people
can get our service in different locations which will be convenient for them, that
will further add assistance in positioning us. Obtaining a greater market share will
gradually go onwards which will be backed by our coverage of every nook and
corner of the valley at the beginning and expansion to other big cities of the
country as well. Moreover, promotion of organic farming will also contribute us.

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 4. Economic Plan
Economic planning is a resource allocation mechanism that is contrasted with
the market mechanism. As a coordinating mechanism for socialist economics,
economic planning substitutes factor markets and is defined as a direct allocation
of resources.  Economic planning according to B.C. Tandon, “economic planning
means arrangement of resources which are scarce in relation to the needs for
their alternative uses in such a way that the satisfaction yielded by them is
maintained at an optimum level. It thus involves the element of choice between
scarce means of achieving a pre-determined end. It is a carefully thought out
rational arrangement of economic resources”.

In the context of Nepal, the economic system is seen to be mixed economy that
constitute market economies with elements of planned economies, free markets
with state interventionism, or private enterprise with public enterprise. Nepalese
economy have predominance in agriculture sector. The current GDP of Nepal in
average is 2.81 percent from 2000 until 2017. Nepal is ranked 32 nd among 43
countries in the Asia-Pacific region and its overall score is below the regional and
world averages,(Economic Index,2018).Nepal’s economic freedom score is 54.1,
making its economy the 133rd freest in the 2018 Index. Its overall score has
decreased by 1.0 point, with improvements in judicial effectiveness and property
rights outweighed by declines in monetary freedom and labor freedom. The
inflation rate in Nepal was recorded at 6 percent in March of 2018. Inflation Rate
in Nepal averaged 8.26 percent from 1964 until 2018, reaching an all time high of
30.42 percent in May of 1966 and a record low of -11.54 percent in May of
1967.Our business plan of food truck seems to be in the growth stage of trade
cycle as we can observe the growing trend of food truck in the country and around
the world. People are more fascinated in trying the new food that they have never
tried before and also the living style of people is increasing day by day in Nepal.

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 Projected figures

Particulars Amount

Fixed assets 22,06,500

Current assets 77,34,075

Current/short term liabilities 10,90,000

Long term liabilities 40,00,000

Expenses 74,14,500

Sales 1,62,00,000

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 5. Operations Plan
5.1 Operations System

Our production system follows intermittent production system.

Intermittent means something that starts (initiates) and stops (halts) at irregular
(unfixed) intervals (time gaps).In the intermittent production system, goods are
produced based on customer's orders. The flow of production is intermittent
(irregular). In other words, the flow of production is not continuous. Our products
are of different sizes and shapes as in intermittent system. The design of our
products goes on changing and requires the skilled and expertise manpower.

Inputs
Process Output
 Manpower
 Manpower  Products
 Machine
 Machinery or goods
 Materials
 Management  Services
 Management
 Schedule etc
 Money
 Information
 Land &
building

Feedback

INTERNAL ENVIRONMENT

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EXTERNAL ENVIRONMENT

 Inputs
 Manpower

The manpower that are required for our business are:

 Cook : For the preparations of food

 Driver : To operate / drive the truck
 Helper/ Cashier: To collect the orders and required money from the
customers and to provide other necessary facilities as per customer’s
requirement.
 Machine

The machines that are required are:

 Truck: To load the overall materials.

 Gas stove: For the purpose of preparation of varieties of foods.
 Microwave: To make warm/ heat the cold food products.
 Mini refrigerator: To make cold the beverages and uncooked food so
that it remains fresh all day long.
 Materials
The materials used for various kinds of food products are as follows:

Products available Ingredients

1. Momo items
 Veg momo Flour, cabbage, carrot, onion
 Chicken momo
Flour, chicken kima, onion

2. Samosa items
 Veg-samosa Flour, potato, coriander, peanuts,
onion

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 Flour, chicken gravy, coriander,
 Chicken-samosa onion

3. Noodles
 Veg-chow Mein Chow Mein base, onion, cabbage
 Non-veg (egg + chicken)
Veg items + chicken, egg
 Ramen noodles
Spicy ramen noodles from market

4. Sausage
 Chicken sausage Ready-made sausage
 Buff sausage

5. Burger items
 Veg-burger Buns, sauce, onion, tomato, lettuce
 Non-veg (chicken + fish)
Veg items + chicken, fish patty

6. Special items-Japanese cuisine

 Sushi(non-veg) Sushi rice, sushi grade tuna, nori
sheets, peeled carrot, avocado,
cucumber

Potato, American cheese

 Cheese fries

Note: oil, salt, spices (masala), turmeric, chilly powder, pepper, garlic, ginger, etc.
are to be used in almost all items as per requirements..

 Management

The management style that we will adopt will be democratic style of management
where every employees will give their views and opinions while making decisions

 Money

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 Our initial investment would be of around Rs. 300000 which excludes the
cost of the truck (i.e. 10 lakhs per truck).
 Information
For the information purpose we had collected data from various media sites
and from the personal visit to the truck at various locations.
 Land & building
As our food truck operates in public areas/ places we do not require the
land of our own to place the truck. But we would rent a place near
Putalisadak with proper parking lot to operate the management functions
and to park the truck during off-times.
 Output
 Products or goods
The final products and goods that we produce are listed below:
1. Momo items
2. Samosa items
3. Noodles
4. Sausage
5. Burger item
6. Special items-Japanese cuisine
 Internal and external environments
The internal environment that would probably affect our business are
employees
The external environment that our company will deal with are political-
legal, economic, technological and cultural factors.

5.2 Operations Strategy

There are mainly two major operations strategies namely competitive strategies
and operational strategies.

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Competitive strategies includes cost, quality, dependability, flexibility and speed.
Our business mainly focuses on the cost & quality aspects. The cost of the service
that we provide are affordable and the quality of our product is very good and
hygenic in nature.

On the other hand, operational strategies comprises product/service strategy,

location strategy, layout strategy, process strategy and human resource strategy.
Our business mainly concerns product/service strategy and location strategy as
well. Service strategy because the main focus of our business is to provide better
and qualitative services to the people. Location strategy will prove best for us as
our company will be covering the widest range of market through large number of
our trucks.

5.3 Service Design

Service design is the activity of planning and organizing people, infrastructure,

communication and material components of a service in order to improve its
quality and the interaction between the service provider and its customers. Service
design is the activity of planning and organizing people, infrastructure,
communication and material components of a service in order to improve its
quality and the interaction between the service provider and its customers.

Under service design we discuss about the form design, functions/ features design
and process design.

Form design

Products Quantity(weight) Minimum order

Momo 420 gm 1 plate

Noodles 300 gm ½ plate

Sausage 50-60 gm 1 piece

Burger 250 gm (veg) 1 piece

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 350 gm (non-veg)

Sushi 500 gm Minimum 6 piece

Cheese fries 320 gm 1 plate

Functions/ features design

The design for our product are specially designed by consulting various food
experts and professional chefs.

Process design

Our process of providing the service to the people is systematic and capital as well
as labour oriented. Under service design there are mainly two types and they are:

1. Customer contact process technology

2. Capital vs labour intensive process technology

Our company adopts capital vs labour intensive process technology as both the
manpower as well as machines contributes equally in providing the service.

5.4 Maintenance System

The major types of maintenance system that exists are namely breakdown
maintenance system, scheduled maintenance system, preventive maintenance
system and predictive maintenance system.

Our food truck company is going to adopt time base preventive maintenance
system as the truck and the products should be timely supervised and the
machineries should be checked and updates timely. The machines gets out dated in
certain period of time and should be checked or replaced in orderly manner to
operate the service smoothly.

5.5 Facility Design

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Facility layout is an arrangement of different aspects of manufacturing in an
appropriate manner as to achieve desired production results. Facility layout
considers available space, final product, safety of users and facility and
convenience of operations. Under facility design, following headings are
discussed:

5.5.1 Capacity Planning

On the starting phase of our business we will be targeting of around 1 million

customers and will expand the number of customers in the near future. The total
production of our service is neatly shown below:

Time period Production units

1 day 300

1 month 9,000

1 year 1,08,000

Discussing about the production period the products are made initially and are
stores in refrigerator. The customers waiting time would be not more than 20
minutes. And the production time will not take longer than 10-15 minutes.

The funds for our business would be collected from the investor partners and the
insufficient capital would be taken as a loan from various banking institutions that
have lower interest rates.

5.5.2 Location Decision

Our business head office will be located in Putalisadak which is the center place in
the Kathmandu city. Other than that our truck will be facilitated in various major
chowks and various cultural heritages. Major chowks includes Naxal, Buspark,
Patan, Bhaktapur and other major places inside the Kathmandu valley.

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Slowly and gradually in coming years, our business will be facilitated in other
various parts of the Kathmandu city as well.

Our location decision was mainly influenced by following factors:

I. Manpower factor

The manpower for our business would be easily available in busy place like
Putalisadak. Many people today are unemployed and there would be no other
center place than Putalisadak area i.e. our office area for people to search for the
job.

II. Material factor

The materials and vegetables for the operation of our business are easily available
in Putalisadak as vegetable market, meat shops and various electronic shops are all
around the location.

III. Customer factor

As our food truck will be placed in various places and major chowks of
Kathmandu, we expect that we will gain lots of customers on the daily basis.

IV. Infrastructure

Talking about the infrastructural factor, Putalisadak is well knfor the easy
availability of transport, machineries, water supply and there are lots of well-
known banks around the area so the financial institutes are also easily available in
the area.

5.5.3 Layout Structure

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Layout is the creation of a plan or convention for the construction of an object,
system or measurable human interaction (as in architectural blueprints,
engineering drawings, business processes, circuit diagrams, and sewing patterns).

There are mainly four types of layout and they are product layout, process layout
fix position layout and mix layout.

Among these layout, Live food truck will follow process layout as in process
layout similar machines and equipment of the same functional type are arranged in
one department. The processes are segregated and the machines of each process
are kept together while each process is kept separately. The process layout is
suitable in the case of job order production, i.e., production is based on customer
orders in which different varieties of goods are produced in small quantities.

Live food truck will adopt process layout as the service is provided only when the
customers places an order and the production is done in the limited quantity as
there is high chance of food getting contaminated or damaged in couple of days.

The brief layout design of our head office is shown below in the diagram:

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The building will have convenient parking lot service where we will be parking
our truck.

5.6 Inventory Management

Inventory management is the supervision of non-capitalized assets (inventory) and

stock items. Inventory management supervises the flow of goods from
manufacturers to warehouses and from these facilities to point of sale. A key
function of inventory management is to keep a detailed record of each new or
returned product as it enters or leaves a warehouse or point of sale.

The supplier of our vegetables and meat items will be the local organic farm that is
located in Gokarna. We will be ordering monthly of around Rs.1,00,000 worth of
vegetables and meat of worth Rs.2,00,000 i.e. on the yearly basis we will be
ordering vegetables worth of around Rs.12,00,000 and meat of Rs. 22,00,000.
Similarly, the other items like salt, pepper, masala, water, etc. will amount to
Rs.11,00,000. We will be ordering on the monthly basis from the same supplier.
The total inventory cost that we have estimated is Rs.30,000 monthly that includes
ordering cost of Rs.16,000 and carrying cost Rs.14,000 and yearly it will sum up
to Rs.3,60,000.

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 6. Management Team
The management team is the group of individuals that operate at the higher levels
of an organization and have day-to-day responsibility for managing other
individuals and maintaining responsibility for key business functions. The
management team is also generally responsible for putting together the business
strategy and ensuring the business objectives are met. The management team is
held accountable by the company’s board of directors.

Some organizations may operate a fairly flat team hierarchy with one or just a few
layers of management while other companies may operate with several layers of
the management team depending on the size of business.

6.1. Organizational Hierarchy

An organizational hierarchy is the blue print of an organization’s employees and

job titles. It is a structure with one person or group of persons at the top, and
increasing number of people below them at each successive level. Organizational
hierarchy is a way to structure an organization using different levels of authority
and a vertical link, or chain of command, between superior and subordinate levels
of the organization. Organizational hierarchy of our company is illustrated below:

General Manager

Operations Finance & Account Marketing

Chef Kitchen assistant Accountant Cashier

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6.2 Duties and Responsibilities

The duties and responsibilities of the staffs will be as follows:

1. General Manager

Our company’s general manager will be Bhumika Tripathi. The duties and
responsibilities of general manager are as follows:

 Plan, coordinate and manage all business operations to achieve corporate

goals.
 Financial tracking of the business.
 Assist in budget preparation and expense forecasting.
 Develop strategies to improve overall quality and productivity.
 Conduct regular meetings with the management and employees to discuss
about business updates, issues and recommendations.
 Overall risk analysis and management.
 Provide direction and guidance to employees in their assigned job duties.
 Assist in employee recruitment, training, evaluation, promotion and
termination activities.
 Ensure that employees follow company policies and procedures.
 To evaluate and review the performance of all departments and take
necessary steps to achieve organizational objectives.
 Address customer inquiries promptly and professionally and ensure
customer satisfaction.
 Identify business opportunities with new and existing customers.

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Resume of General Manager

 Personal Information

Name: Bhumika Tripathi

Age: 32

Gender: Female

Marital Status: Single

Address: Kadaghari, Kathmandu

E-mail: bhumikatrip09@gmail.com , Phone: 9815754263

Linkedin: linkedin.com/in/bhumika_tripathi-0100054b6

PROFESSIONAL/ EDUCATIONAL QUALIFICATIONS

Year of Passing Degree Institution/University Marks (%)

2009(November MBA DU 70.00

)

2007 B.Com(A&F) IGNOU 75.00

2004 XII Tribhuwan University 70.10

2001 X Government of Nepal 84.13

PROFESSIONAL EXPERIENCE
36 Months

Management trainee:

Mahesh Nagal & Co, NirmanVihar, New Delhi (Sep’10 to March’11)

Oswal Sunil & Company, Daryaganj, New Delhi (March’11 to Sep’13)

 General Manager, Amigo Café, July 2015- Present.

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  Management Accountant, Annapurna Hotel, Dec 2010 – Sep 2014.
 Asst. Manager, Dabur Nepal Pvt. Ltd., Jan 2008 – Nov 2010.
 Skills
 Good communication and organization skills.
 Time management
 Team building
 Leadership
 Domain Knowledge and decision making
 Ability to deal with changes effectively

2. Finance Manager & Accountant

The finance manager will be responsible for all financial and related
administrative matters. Our finance manager will be Tanuja Baral. The duties and
responsibilities of the finance manager are as follows:

 Financial analysis and interpretation.

 Determining the source of fund.
 Investment of funds.
 Performing day-to-day book-keeping.
 Profit planning and control.
 Performing monthly bank reconciliations.
 Preparing monthly management accounts for the Senior Management
Team.
 Preparing annual accounts/financial statements, ready for audit.
 Preparing financial reports for funders.

Resume of Finance Manager

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Name: Tanuja Baral

Address: Lazimpat, Kathmandu

Date of Birth: 32/02/2050

Nationality: Nepali

Marital Status: Single

Languages: Nepali, English

Contact Number: 9843816738

Email: baraltanuja@gmail.com

Academic Qualification

Leve Board Institution Division (%) Passed

l Year

SLC Nepal Board Aishwarya Vidya Niketan, Distinction 2065

Dhangadhi, Kailali (84.25%)

+2 HSEB Global College of Management, Distinction 2068

Mid-Baneshwor, Kathmandu (80%)

BBA Tribhuvan Shanker Dev Campus, Distinction 2072

University Putalisadak, Kathmandu (3.80)

Experience

 Attended workshop on “Managing Start-ups” organised by Leadership Corner

 Training on Logistics Technology by USEN
 Attended Nepal Business Gabfest organised by Thames International College

3. Operations manager

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Our operations manager will be Ujjwal Chaudhary. The duties and responsibilities
of the production manager are as follows:

 Manage and direct operations team to achieve business target.

 Assist in developing or updating standard operating procedures for all

business operational activities.

 Assist in employee appraisals, promotions, compensation and termination

based on performance review.

 Provide operational support and guidance to staff.

 Assist in developing operating and capital budgets.

 Monitor and control expense according to allotted budget.

 Assist in interviewing, recruiting and training candidates.

 Manage work assignment and allocation for staff.

 Work in compliance with company policies and procedures.

 Conduct regular meetings with team to discuss about issues, concerns,

updates, etc.

Resume of Operations Manager

 Personal information

Name: Ujjwal Chaudhary

Age: 30

Gender: Male

Marital Status: Married

Address: Kalaiya, Bara

E-mail: ujjwal_chd03@gmail.com

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  Phone:9813885686
 Linkedin: linkedin.com/in/ujjwal-chaudhary-45567p
 Academic Qualifications

Year of Passing Degree Institution/University Marks (%)

2013 MBA DU 69.25

2010 BBA(F) IGNOU 74.00

2006 XII Tribhuwan University 78.10

2003 X Government of Nepal 88.13

Skills

 Production scheduling
 Production management
 Quality management
 Time management

Experience

 Operations Manager, Shanti Production House, June 2016 – Dec 2017.

 Assistant Production Manager, Surya Nepal, Jan 2014 – April 2016.
 Project Supervisor, Josh Nepal Pvt. Ltd., Jan 2010 – Dec 2012.

4. Sales &Marketing Manager

Our marketing manager will be Pushkar Luitel. The duties and responsibilities
of the marketing manager are as follows:

 Managing all marketing for the company and activities within the
marketing department.

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  Developing the marketing strategy for the company in line with company
objectives.

 Coordinating marketing campaigns with sales activities.

 Overseeing the company’s marketing budget.

 Creation and publication of all marketing material in line with marketing

plans.

 Planning and implementing promotional campaigns.

 Preparing online and print marketing campaigns.

 Monitor and report on effectiveness of marketing communications.

 Creating a wide range of different marketing materials.

 Maintain effective internal communications to ensure that all relevant

company functions are kept informed of marketing objectives.

Resume of Marketing Manager

Name: Pushkar Luitel

Address: Balkhu, Kathmandu

Date of Birth: 04/10/2048

Nationality: Nepali

Marital Status: Single

Languages: Nepali, English, Hindi

Contact Number: 9860005786

Email: pushkar.luitel@gmail.com

Academic Qualification

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Leve Board Institution Division (%) Passed
l Year

SLC Nepal Board Annapurna Higher Secondary Distinction 2063

School, Thamel, Kathmandu (85%)

+2 HSEB Annapurna College Distinction 2066

(80%)

BBA Kathmandu Kathmandu University School of Distinction 2070

University Management, Gwarko, Lalitpur (3.84)

Training and Seminars

 Hospitality Management Training by LCCI Nepal

 Brand Promotion Training by Management Nepal
 Attended seminar or “New Business Opportunities” organised by Entrepreneurs
Nepal

6.3 Communication system

Communication is the process of transferring information of common interest

from one person to another. A manager would have to make necessary
communication to his subordinates to implement a plan and to get feedback on the
achievement of works.

Vertical, horizontal and diagonal are the types of communication system followed
in an organization. We will be following diagonal communication system. In
diagonal communication system, all the personnel in our organization can
exchange their ideas, views, experience and knowledge with each other and will
also develop a feeling of teamwork among the employees which is ultimately
helpful to gain organizational goals.

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6.4 Management Styles

A management style is an overall method of leadership used by a manager. It

encompasses the way they make decisions, how they plan and organize work, and
how they exercise authority. Management styles vary by company, level of
management, and even from person to person. It includes directive, analytical,
conceptual and behavioral management styles. Live Food truck will be following
conceptual management style. It will focus on long-term results, brainstorming of
alternatives, creative approaches to problem solving and taking higher risks.

6.5 Leadership Style

A leadership style is a leader’s style of providing direction, implementing plans,

and influencing people. The leadership styles are the behavioral patterns that a
leader adopt to influence the behavior of his followers, i.e. the way he gives
directions to his subordinates and motivates them to accomplish the given
objectives.

Leadership style comprises of autocratic, democratic and free-rein leadership

styles. Our company will use democratic leadership style. Democratic leadership
is a process in which subordinates are encouraged for their involvement in
decision making process. It empowers the subordinates who know the actual
problems and can contribute in making better decisions. Thus, we will be adopting
democratic style of leadership.

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 7. Marketing Plan
A marketing plan is a comprehensive document or blueprint that outlines a
business advertising and marketing efforts for the coming year. It describes
business activities involved in accomplishing specific marketing objectives within
a set time frame. Marketing plans, by their very nature, are strategic. Big ideas fail
without a plan, and marketing plan is the one thing that will drive innovation and
help you meet sales targets.

7.1 Marketing Strategies

Marketing strategy is a section of your business plan that outlines your overall game

plan for how you'll find and attract clients or customers to your business. A good
marketing strategy should be drawn from market research and focus on the right
product mix in order to achieve the maximum profit potential and sustain the
business. The marketing strategy is the foundation of a marketing plan.

Our company will use Market Differentiation Strategy as our main focus is to
bring something new to the market. Our concern is to be unique by producing
varieties of new products and moving truck food providing system.

7.2 Marketing Mix

The marketing mix (also known as the 4Ps) is a foundation model in marketing.

The marketing mix has been defined as the "set of marketing tools that the firm
uses to pursue its marketing objectives in the target". Thus the marketing mix
refers to four broad levels of marketing decision, namely: product, price,
promotion, and place. The marketing mix needs a lot of understanding, market
research and consultation with several people, from users to trade to
manufacturing and several others.

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7.2.1 Pricing

Pricing refers to the value that is put for a product. It depends on costs of

production, segment targeted, ability of the market to pay, supply - demand and a
host of other direct and indirect factors.

There are mainly 5 types of pricing strategies and they are:

 Cost based pricing

 Value based pricing
 Market based pricing
 Negotiation based pricing
 Dual pricing

Our company will follow market based pricing strategy as in this pricing strategy,
the company will evaluate the prices of similar products that are on the market. It
is important to only consider those products that are similar to the product being
offered. 

7.2.2 Promotion

Promotions refer to the entire set of activities, which communicate the product,
brand or service to the user. Promotion includes advertisement, consumer
schemes, press reports word of mouth, direct marketing, contests and prizes and so
on.

Our company will follow advertisement method for promoting our service. We
will advertise through our truck itself by painting an attractive logo of our
company on the truck and also share various interesting information through our
facebook page and other media.

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7.2.3 Product

A product is the item offered for sale. A product can be a service or an item. The
product that we serve are food items like momo, noodles, burgers, sausages, sushi,
potato fries.

Healthy and fresh quality food products will be provided by our food truck to the
people. Major priority is given to the customer’s health so that the food will be
perfectly cooked in very neat and tidy environment. Professional cooks will be
hired and the tools and equipment will be kept clean in daily basis. Customers will
not find a place to make a complain about anything.

The major factors that differentiates our food truck with the rest of other food
truck company is that our food truck is movable from one place to another. Also
the vegetables and meat that we use will be ordered from the local farmers fresh
from organic vegetables suppliers in order to promote and motivate the farmers at
local level. There will be the suggestion box placed in our truck where consumers
can put their views and suggestion for our food truck.

7.2.4 Place

At the beginning stage our main target is to focus on the people of Kathmandu
city. Later in the coming years we will be expanding our business to various
districts beyond Kathmandu.

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 8. Financial plan
A financial plan can refer to the three primary financial statements (income
statement, cash flow statement and balance sheet) created with a business plan.
Financial forecast or financial plan can also refer to an annual projection of
income and expenses for a company, division or department. A financial plan can
also be the estimation of cash needs and a decision on how to raise the cash, such
as through borrowing or issuing additional shares in a company.

a. Income Statement

An income statement is one of financial statements of a company and shows the

company’s revenue and expenses during a particular period. It indicates how the
revenues are transformed into the net income. The purpose of income statement is
to show managers and investors whether the company made or lost money during
the period being reported.

Income Statement of Live Food Truck

as on 31st Dec, 2018

Particulars Amount

Sales 1,62,00,000

Less: Cost of goods sold 40,00,000

Gross Profit 1,22,00,000

Variable Expenses

Salaries & wages 56,76,000

Advertising & promotion 2,00,000

Legal fees 50,000

Fuel 1,80,000

Gas 1,50,000

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Printing & Stationery 20,000

Communication 25,000

Professional services 40,000

Electricity & water 2,00,000

Total variable cost 65,41,000

Fixed Cost

Rent(annual) 6,00,000

Depreciation on vehicle @ 10% 2,00,000

Depreciation on computer & furniture @ 20% 56,000

Depreciation on other equipment @5% 2,500

Insurance 15,000

Total Fixed Cost 8,73,500

Total Operating Cost 74,14,500

EBIT 47,85,500

Less: Interest @ 10% 4,00,000

EBT 43,85,500

Less: Tax @ 35% 15,34,925

Retained Earnings 28,50,575

NOTE

Total Start-up Cost

1. Capital investments

Vehicle 20,00,000

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 Ovens & equipment 50,000

Utensils & tools 85,000

Furniture 1,50,000

Computer 1,30,000

License and permits 50,000

2. Operating Expenses

Advertising & promotions 2,00,000

Legal fees 50,000

Rent (annual) 6,00,000

Salary & wages 45,43,000

Cash (working capital) 2,00,000

Fuel 1,80,000

Gas 1,50,000

Printing & stationery 20,000

Raw materials 45,00,000

Communication 25,000

Professional services 40,000

Electricity & water 2,00,000

Oven & equipment

Oven: 2 pieces: 50,000

Computers & equipment

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Laptop: 1 piece @ 80,000

Printer: 1 piece @ 50,000

Salaries

Position Number Monthly Annually

General Manager 1 50,000 6,00,000

Operations Manager 1 40,000 4,80,000

Marketing Manager 1 40,000 4,80,000

Finance & Account Manager 1 40,000 4,80,000

Chef 3 35,000 12,60,000

Kitchen Assistant 3 15,000 5,40,000

Accountant 1 15,000 1,80,000

Cleaners 2 5,000 1,20,000

Cashier 1 8,000 96,000

Driver 1 20,000 2,40,000

Total 15 56,76,000

Sales forecast

Number of customers per day: 300

Sales amount per customer: 150

Number of working days: 360

Approximate annual sales: 300*150*360=1,62,00,000

Rent

Monthly rent: 50,000

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Annual rent: 50,000*12=6,00,000

Vehicle

2 second-hand trucks @ 10,00,000 each

Advertisement

In the first year of operation, aggressive promotions will be done.

Advertisement in TV commercials: 1,00,000

Advertisement in newspapers and magazines: 50,000

Advertisement in social networking sites; 50,000

Legal Fees

It includes:

Documentation charge: 20,000

Registration fee: 10,000

Advocate: 10,000

Miscellaneous: 10,000

b. Cash Flow Statement

It is a financial statement that shows how changes in balance sheet accounts and
income affect cash and cash equivalents. Essentially, the cash flow statement is
concerned with the flow of cash in and out of the business. The statement captures
both, the current operating results and the accompanying changes in the balance
sheet. It is useful in determining the short-term viability of the company,
particularly its ability to pay bills.

Cash Flow Statement of Live Food Truck

as on 31st December, 2018

Particulars Amount
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Cash from Operating Activities

A. Cash collection from debtors and sales

Sales 1,62,00,000

Increase in account receivable -80,000

1,61,20,000

B. Cash paid to suppliers and materials

Cost of goods sold -40,00,000

Inventory -5,00,000

Increase in account payable 90,000

-44,10,000

C. Cash paid to suppliers and operating expenses

Salaries and wages -56,76,500

Advertising and promotions -2,00,000

Legal fees -50,000

Fuel -1,80,000

Gas -1,50,000

Communication -25,000

Printing and stationery -20,000

Professional service -40,000

Electricity and water -2,00,000

Insurance -15,000

-65,56,500

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D. Tax, interest and dividend paid

Tax @ 35% -15,34,925

Interest on loan @ 10% -4,00,000

-19,34,925

I. Net cash available from operating activities 32,18,575

Cash from Investing Activities

Vehicle -20,00,000

Oven and equipment -50,000

Furniture -1,50,000

Computer -1,30,000

License and permits -50,000

Lease payment/Rent -6,00,000

Utensils and tools -85,000

II. Net cash available from investing activities -29,65,000

Cash from Financing Activities

Share capital 20,00,000

Bank loan 40,00,000

Short term loan 10,00,000

III. Net cash available from financing activities 70,00,000

Net change in cash flow(I+II+III) 72,53,575

NOTE

Cost of goods sold = Opening stock +Purchase – Closing stock

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 = 0 + 45,00,000 – 5,00,000
= 40,00,000

Share capital

The share capital will be the promoter’s share equally invested among the two
promoters namely Tanuja Baral and Bhumika Tripathi i.e. 10,00,000 each.

Bank loan

Bank loan would be taken from Nabil Bank @ 10% interest.

c. Balance Sheet

A balance sheet, also known as the statement of financial position is a summary of

the financial balances of an individual or organization. Assets, liabilities and
ownership equity are listed as of specific date, such as end of its financial year.
Balance sheets are presented with assets in one section and liabilities and net
worth in the other section with the two sections “balancing”.

Liabilities Amount Assets Amount

Share capital 20,00,000 Fixed Assets

Bank loan 40,00,000 Vehicles 20,00,000

Short-term loan 10,00,000 Ovens & equipment 50,000

Account payable 90,000 Utensils & tools 85,000

Reserve 25,00,000 Furniture 1,50,000

Net profit 28,50,575 Computer 1,80,000

Less: Reserve -25,00,000 Less: Depreciation (2,58,500)

Retained earnings 3,50,575 License & permits 50,000

Current Assets

Closing stock 5,00,000

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 Bank and cash 72,53,575

Less: Donation to Clean -99,500

Bagmati Campaign

Account receivable 80,000

Total 99,50,575 Total 99,40,575

d. Ratio Analysis

Ratio analysis is a relationship expressed in mathematical terms between two

individual figures or group of figures connected with each other in some logical
manner and selected from financial statements of the concern. The objective of
financial ratios is that all the stakeholders can draw conclusions about the
performance, strength and weakness of a firm and also can take decisions in
relation to the firm.

i. Current Ratio

Current ratio is the quantitative relationship between current assets and current
liabilities. It measures the ability of the firm to meet obligations due within one
year.

Current assets 77,34,075

Current ratio= = =7.1
Current Liabilities 10,90,000

The current ratio of 7.1 means that for every rupee of current liabilities, there is Rs
7.1 worth of current assets.

ii. Quick Ratio

Quick ratio is another measure of short-term solvency of the firm. It is the

quantitative relationship between quick assets and current liabilities.

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 Quick assets 72,34,075
Quick ratio= = =6.64
Current Liabilities 10,90,000

The quick ratio of 6.64 means for every rupee of current liabilities, there is Rs.
6.64 of quick assets.

iii. Inventory Turnover Ratio

Inventory turnover ratio (ITOR) measures how a firm’s average investment in

inventory is capable of generating sales.

Cost of goods sold 40,00,000

ITOR= = =16׿
Average inventory 500,000 ÷2

The inventory turnover of 16 times indicates that the firm is turning over its
inventory into sales 16 times in a year or in each 22.5 days (360 days ÷ 16).

iv. Fixed Assets Turnover Ratio

Fixed assets turnover ratio is the firm’s ability to generate sales based on its
various fixed assets. It measures the firm’s ability to make efficient utilization of
fixed assets.

Sales 1,62,00,000
FATR= assets ¿= =7.34׿
Net ¿ 22,06,500

The fixed assets turnover ratio of 7.34 is good for the firm because a high ratio
indicates that the firm is using its fixed assets efficiently to generate sales.

v. Total Assets Turnover Ratio

It is the measure of the firm’s ability to make effective utilisation of its total
investment in assets in terms of generating sales revenue.

Sales 1,62,00,000
TATR= = =1.63׿
Total assets 99,40,575

The TATR of 1.63 times means our company generates Re. 1.63 with every Re. 1
invested in assets.

vi. Debt-Asset Ratio

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The debt-asset ratio or debt ratio shows the proportion of total debts used in
financing total asset of a firm.

Total debt 40,00,000

Debt ratio= = =0.4024=40.24 %
Total assets 99,40,575

Debt ratio of 0.4024 indicates that 40.24% of total debts is used in financing total
assets of the firm.

vii. Return on Assets

Return on assets shows the percentage of net income on total assets.

Net income 28,50,575

ROA= = =0.2868=28.68 %
Total assets 99,40,575

It shows that the company’s earning is 28.68% of total assets.

viii. Return on Equity

The return on equity (ROE) measures the return on the owner’s investment in the
firm. It is the percentage of net income on total equity.

Net income 28,50,575

ROE= = =1.2127=121.27 %
Total equity 23,50,575

It shows that the company’s earning is 121.27% of shareholders’ equity.

8.5 Cost-Volume-Profit (CVP) Analysis

CVP analysis is used to determine how changes in costs and volume affect a
company’s operating income and net income. The CVP analysis of Live Food
Truck is as follows.

a. BEP sales in units

= Fixed cost ÷ (Unit selling price – Unit variable cost)
= 8,73,500 ÷ (150 – 60.56)
= 9,766 units
b. BEP sales in rupees
= BEP sales in units × Unit SP
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 = 9,766 × 150
= Rs 14,64,949
c. P/V ratio
= 1 – (Unit variable cost ÷ Unit selling price)
= 1 – (60.56 ÷ 150)
= 0.60
d. Cash BEP in units
= (Fixed cost – Depreciation) ÷ (Unit selling price – Unit variable cost)
= (8,73,500 – 2,58,500) ÷ (150 – 60.56)
= 6,876 units

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 Overall Conclusion
Food truck refers to a large vehicle equipped to cook and sell food. It is like a
restaurant on wheels and can go to where the customers are. The concept of food
truck in Nepal is emerging and new concept of serving the people with new taste
and varieties of food products. The business plan of our food truck we assure will
surely take the hype in coming day.

The feasibility analysis based on different lenses such as product/service

feasibility, industry/target market feasibility, organizational feasibility, and
financial feasibility has shown the business feasible to carry out. Product/service
feasibility analysis has shown that what the food truck is going to offer is desirable
and has good demand in the marketplace. The industry/target market feasibility
analysis shows that the food truck industry is flourishing in the country and at our
targeted market as well. Organizational feasibility analysis has ensured the
capability of managers, the efficient management system, and sufficiency of
resource to carry out the business. Similarly, financial feasibility analysis has
numerically indicated the suitability of the business through financial statements
and analyses. In a nutshell, the overall appropriateness of the food truck has been
confirmed and it is indicated that investment on this business will prove to be
beneficial.

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