Eat On The Go

A BUSINESS PLAN
BY
AJAO MUHAMMAD IKLIL
18CB024645

IN PARTIAL FULFILMENT OF THE DEGREE OF

B.Sc. BUILDING TECHNOLOGY
FOR THE COURSE
BLD 515
 CONTENT OF THIS BUSINESS PLAN
BUSINESS PLAN
 Description of Business
 Ownership & Legal Structure (Personal Skills and Experiences)
 Our Competitive Advantages
MARKETING
 Products & Services Offered
 Target Market
 Publicity & Advertisement
 Pricing Strategy
FINANCIAL MANAGEMENT
 Source & Amount of Capital
 Sales Forecast
 Projected Income Statement & Balance Sheet
 Breakeven Point
 Personal Balance Sheet & Compensation
OPERATIONS
 Business Management
 Personnel Plan
 Job Roles and Responsibilities
CONCLUDING STATEMENT
 Mission & Vision Statement
BUSINESS PLAN
Description of Business
Eat On The Go is a leading and standard food cart Company that will be based in Ikoyi, Lagos
State that covers a wide range of clients both individual and corporate clients. We have been able
to lease a standard corner piece facility that is centrally located in the heart of Ikoyi. We have put
plans in place to also sell our franchise and offer consultancy services in line with our area of
business.
Ownership & Structure
Eat On The Go is established by Ajao Muhammad Iklil pending B.Sc. in Building Technology
from Covenant University and Umar Danjuma B.Sc. in Computer Science from Afe Babalola
University. Umar also has a robust experience in the food business having worked both in the
public sector and the private sector before starting their own business.
On average, mobile food companies usually have 4 or 5 employees under their payroll. Because
of the type of mobile food business brand that we intend to build, we have been able to make
provisions for the following employees;
 Chief Operating Officer (Owner)
 Chef / Caterer
 Assistant Caterer
 Sales Girl
 Cashiers
 Driver
 Office Administrator
Our Competitive Advantage
Loads of factors count towards our advantage as a mobile food cart business operator. The fact
that we can determine where we want to sell our foods and drinks at times gives us the leverage
to make as many sales as we can make in a day.
It has been observed that any organization that offers training and consultancy services is always
amongst the leaders in their industry and we at Eat On The Go are set to tow along this part
because we want to become experts and amongst the leading mobile food truck company in the
whole of Nigeria.
We have put plans in place to facilitate continuous improvement in what we do because we know
that is one of the factors that will give us a competitive advantage in the marketplace. Another
competitive advantage that we have as a company is the size and condition of our food truck.
We have been able to purchase a brand-new retrofitted food cart with the entire required gadget.
It is big enough to accommodate all that we would need for the business, we are going to spend
less on maintenance and we can easily obtain approval from the appropriate authorities.
MARKETING
Products & Services Offered
At Eat On The Go, we make a wide range of pizzas in terms of sizes and flavours et al; we
prepare and serve our meals and other related items. We will also adopt full-service restaurants
and quick-service styles. As part of our strategy to create multiple sources of income in line with
our core business concept, we will run a consultancy service and training.
Our intention in starting Eat On The Go is to make profits from the industry and we will do all
that is permitted by the law in the US to achieve our aim and ambition. Here are some of our
products and services;
 sell lunch (assorted meals)
 sell snacks
 sell assorted drinks (Soft Drinks, Wines, smoothies, punch, Fruit Juice, amongst others)
 sell franchise
 training and consultancy services on mobile truck food business
Target Market
When it comes to the mobile food cart business, there are no restrictions to the market you can
explore, as long as you are operating within the law of the state where you are conducting your
business. We do not intend to place any limit to the scope of our target market and these are the
places/locations where we intend to operate our mobile food cart business to maximize sales;
 Construction sites
 Tourism locations
 University Campuses
 Carnival ground
 Stadiums and sports centres
 Community Outdoor Events
 Blue Collar work locations
 Farmers Markets
 Industrial Parks
 Movie Recording Location
 Military Bases
 Office Complexes
 Mechanic Villages
 Open-air shows and programs
When it comes to food, there is indeed a wide range of available customers. In essence, our
target market can’t be restricted to just a group of people, but all those who eat out and of course
those who would want to try it out. Given that, we have conducted our market research and we
have ideas of what our target market would be expecting from us. These are the groups of people
we intend to market our pizzas to;
  Households
 Children
 Corporate Executives
 Government Officials
 Business People
 Celebrities
 Military Men and Women
 Sports Men and Women
 Students
 Tourists
 Everyone who resides in our target locations.
Publicity & Advertising
Even though our food cart company is a standard one with a wide range of flavours and products
that can favourably compete with other leading brands in Nigeria, we will still go ahead to
intensify publicity for all our products and brand. We are going to explore all available means to
promote our services.
Eat On The Go has a long-term plan of opening outlets in various locations all over Nigeria and
also to sell our franchise which is why we will purposefully build our brand to be well accepted
in Lagos State before venturing out to other cities in Nigeria.
Our publicity and advertising strategy are not solely for selling our products but to also
effectively communicate our brand. Here are the platforms we intend leveraging on to promote
and advertise Eat On The Go
 Place adverts on both print (community-based newspapers and magazines) and electronic
media platforms
 Sponsor relevant community programs
 Leverage the internet and social media platforms like; Instagram, Facebook, Twitter, et al
to promote our brand
 Install our Bill Boards on strategic locations all around major cities in the United States
of America
 Engage in road shows from time to time in targeted communities
 Distribute our fliers and handbills in target areas
 Position our Flexi Banners at strategic positions in the location where we intend to get
customers to start patronizing our products.
 Ensure that all our staff members wear our customized clothes, and all our official cars
and distribution vans are customized and well-branded.
Pricing Strategy
Generally, the food cart business sells meals, and snacks at a cheaper rate when compared to the
conventional fixed–restaurant. We don’t have any plans to sell our foods, snacks, and drinks
beyond the prices that are obtainable in the industry.
That does not mean that we will fall below standard when it comes to the quality of our food.
One of our strongest selling points will be the taste and perhaps the number of our foods when
compared to our competitors.
From our market survey and feasibility studies, we are sure going to make reasonable profits
even when we sell a little below the average price for package foods and snacks in the food cart
industry, especially if the location we intend to sell our foods and drinks is not far away from our
base.
Payment Options
At Eat On The Go, our payment policy is all inclusive because we are quite aware that different
people prefer different payment options as it suits them. Here are the payment options that will
be available in every one of our outlets;
 Payment by cash
 Payment via Point of Sale (POS) Machine
 Payment via online bank transfer (online payment portal)
 Payment via Mobile money
Given the above, we have chosen banking platforms that will help us achieve our payment plans
without any itches.
FINANCIAL STATEMENT
Source & Amount of Capital
When it comes to starting a standard food cart business, one is expected to spend the bulk of the
start-up capital on equipping for the business. Aside from that, you are not expected to spend
much except for purchasing distribution vans, paying your employees, and utility bills.
These are the key areas where we will spend our start-up capital;
The Total Fee for Registering the Business in Lagos State – is $750.
Legal expenses for obtaining licenses and permits as well as the accounting services (software,
P.O.S machines, and other software) – $1,300.
Marketing promotion expenses for the grand opening of Eat On The Go; in the amount of $3,500
and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
Cost for hiring Business Consultant – $2,500.
Insurance (general liability, workers’ compensation, and property casualty) coverage at a total
premium – of $2,400.
Cost for payment of rent for 12 months at $1.76 per square meter a total amount of $105,600.
Cost for the construction of a standard bakery – $100,000.
Other start-up expenses include stationery ($500) and phone and utility deposits ($2,500).
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
The cost for Start-up inventory (raw materials and packaging materials et al) – is $80,000
Storage hardware (bins, rack, shelves, food case) – $3,720
The cost for counter area equipment (countertop, sink, ice machine, etc.) is – $9,500
Cost for yogurt-making equipment – $20,000
Cost for store equipment (cash register, security, ventilation, signage) – $13,750
Cost of purchase of distribution vans – $50,000
The cost for the purchase of furniture and gadgets (Computers, Printers, Telephones, TVs, Sound
Systems, tables and chairs et al) – is $4,000.
The cost of Launching a website – is $600
The cost for our opening party – is $10,000
Miscellaneous – $10,000
We would need an estimate of $500,000 to successfully set up our Food Cart delivery company
in Lagos State. Please note that this amount includes the salaries of the entire staff member for
the first month of operation.
Sales Forecast
It is important to state that our sales forecast is based on the data gathered during our feasibility
studies and also assumptions. This is for sales projections based on what we saw.
Lunch:
1000 lunches per day (on average), 12 months per year
$20 per person on the average
Snacks:
1500 snacks per day, 12 months per year
$5 per person on the average
Sales of Drinks and Water et al:
On average over 80% of people who purchase lunch (meal) and snacks would normally consume
drinks as well.
$1.5 for a bottle of coke
This equates to 2000 drinks in a day when you multiply 2000 by 1.5, we will estimate $3000
daily from the sale of drinks alone
Breakeven Point
Chart: Breakeven Analysis
The chart and table summarize our break-even analysis. With fixed costs of $10,520 per month
at the outset (to cover payroll and other operating costs), and variable costs (inventory) at 74% of
sales, we need to bill $41,167 to cover our costs. We do not expect to reach break-even until the
sixth month into the business operation.
Table: Breakeven Analysis
Break-even Analysis

Monthly Revenue Break-even $39,503

Assumptions:
Average Percent Variable Cost 74%
Estimated Monthly Fixed Cost $10,095

Projected Income Statement & Balance Sheet

The balance sheet in the following table shows managed but sufficient growth of net worth, and
a sufficiently healthy financial position. Our negative net worth, due to borrowed capital for
start-up, makes a significant increase by the second year and becomes positive in year three. It is
common for start-up businesses to have a negative net worth in their first few years.
The monthly estimates are included in the appendices.
Pro Forma Balance Sheet
Assets
Current Assets
Cash $101,685 $82,187 $181,270
Inventory $137,714 $172,142 $215,178
Other Current Assets $8,000 $8,000 $8,000
Total Current Assets $247,399 $262,329 $404,448
Long-term Assets
Long-term Assets $42,000 $42,000 $42,000
Accumulated Depreciation $4,200 $8,400 $12,600
Total Long-term Assets $37,800 $33,600 $29,400
Total Assets $285,199 $295,929 $433,848
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $148,189 $81,220 $81,220
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $148,189 $81,220 $99,942
Long-term Liabilities $237,628 $215,548 $193,468
Total Liabilities $385,817 $296,768 $293,410
Paid-in Capital $30,000 $30,000 $30,000
Retained Earnings ($196,708) ($130,619) ($30,838)
Earnings $66,089 $99,780 $141,276
Total Capital ($100,619) ($838) $140,438
Total Liabilities and Capital $285,199 $295,929 $433,848
Net Worth ($100,619) ($838) $140,438
OPERATIONS
Business Management
The Eat On The Go management team will initially consist of the founder himself, Muhammad,
and the provisional Head Chef, Umar. We do not anticipate the need to hire anyone else on a
full-time basis during the first year, because all of the services that a normal small business needs
will be outsourced. These services include the e-commerce infrastructure, accounting, marketing,
and legal services. We do plan to employ one part-time employee from the beginning to help
with cleaning and dishwashing.
Muhammad and Umar have 7 years of experience in the food service industry, as personal chefs.
Until the second year, Umar will continue to work part-time as a personal chef for several
couples in Plano, doing the prep work and menu planning for Eat On The Go in the mornings.
Muhammad, after having prepared test batches of every menu item with Umar will begin selling.
The owners anticipate possibly hiring local high-school students as sous-chefs in years 2 and 3;
Umar’s experience with local restaurants has shown that these students can often do quite well,
paid only minimally in exchange for professional restaurant and food preparation training.
Muhammad's existing contacts with local social and community groups, and Umar's ongoing
relationships with food distributors, specialty grocers, and high-end clients will all help to
generate high sales from early in the first year.
Throughout the first two years, we will conduct an aggressive cost analysis as to what our
capabilities are as owners and with what activities we need assistance.
Personnel Plan
The following table summarizes our personnel expenditures for the first three years, with
compensation increasing from $34K in the first year to about $60K in the third. We believe this
plan is a fair compromise between fairness and expedience and meets the commitment of our
mission statement. The detailed monthly personnel plan for the first year is included in the
appendices.
Job Roles and Responsibilities
Chief Operating Officer (owner)
 Responsible for providing direction for the business
 Creates, communicates, and implements the organization’s vision, mission, and overall
direction – i.e., leading the development and implementation of the overall organization’s
strategy.
 Responsible for the day-to-day running of the business
 Responsible for fixing prices
 Responsible for recruitment
 Responsible for payment of salaries
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization
Chef / Caterer /Cooks
 Responsible for preparing delicacies
 Makes lists and budget for kitchen supplies
 Oversees the entire kitchen staff
 Responsible for training new cooks
 Makes sure that the meals being whipped up taste good
 Kitchen Assistant / Utility Staff
Assistant the chef/ cook in the kitchen
 Ensures that all the needed cooking ingredients are in supply
 Runs errands for the chef/cook and every member of the workforce
 Ensures that the kitchen area of the truck is clean and hygienic at all times
 Responsible for washing cooking pots, utensils, and dishes when necessary
 Assists in packaging food and snacks
 Responsible for moving packed foods from the kitchen to the cubicle/point of sale
 Ensures that various types of drinks are present in the fridge at a time (get them replaced
as soon as they are sold)
 Any other duty as assigned by the line manager
Sales Girl
 Interfaces with our highly esteemed customers
 Collects orders and issues foods as demanded by customers after payment
 Keeps proper records of daily sales and then reconcile with the cashier
 Responsible for manning the fridge and everything up for sale
 Any other duty as assigned by the Chief Operating Officer
Cashier
 Receives payments on behalf of the company (POS, cash, mobile money et al)
 Issues receipts to customers
 Prepares financial report at the end of every working week
 Handles all financial transactions on behalf of the company
 Any other duty as assigned by the Chief Operating Officer
Driver
 Responsible for driving the cart to sales venues and back to base
 Ensures that the cart is in top shape at all times
 Ensures that maintenance schedules for the cart are strictly followed
 Responsible for renewing the vehicle license, insurance, and any other documentation for
the vehicle when due
 Any other duty as assigned by the food cart manager
Office Administrator
 Responsible for managing the daily activities of the back-end office
 Prepares payroll for the organization
 Prepare monthly financial reports for the organization
 Interfaces with vendors and third-party suppliers (drink suppliers, raw food suppliers, and
maintenance team et al)
 Responds to inquiries on behalf of the company
 Handles phone calls for the company
 Manage the company’s e-mail and website
 Interfaces with our bankers (lodgement of cash, checks and bank drafts et al)
 Responsible for payment of tax, levies, and utility bills
 Any other duty as assigned by the Chief Operating Officer
CONCLUDING STATEMENT
Our Mission and Vision Statement
 We Aim to become the leading brand in the mobile food cart business in Lagos State and
the whole of Nigeria.
 We are in the mobile food truck industry to construct a brand that can readily meet the
needs of our valued clients in places where they can hardly access standard cafeterias.
 And we also aim to offer entrepreneurs the opportunity and training needed to
successfully launch their own mobile food truck businesses in other cities in Nigeria.