lOMoARcPSD|43844473

BUSINESS PLAN

H A FOODMART LLC

600 HWY 80 WEST CLINTON, MS 39056

Prepared by:

Trusted Accounting & Tax Services Inc.

2814 Calgary Trail N.W. Phone: (780) 217–1717
Edmonton, Alberta T6J 6V7 Fax: (888) 519-4150
Email: trustedaccounting@live.ca www.trustedaccounting.ca
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PROJECT REPORT

FOR
FUEL STATION PROJECT

PROJECT LOCATION: 600 HWY 80 WEST CLINTON, MS 39056

PRMOTER- KARAJPAL SINGH KHEHRA

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TABLE OF CONTENTS
TABLE OF CONTENTS ....................................................................................................................... 2
EXECUTIVE SUMMARY .................................................................................................................... 4
1. INTRODUCTION ........................................................................................................................ 5
1.1. Objective of the project.................................................................................................... 6
1.2. Profile of the Promoter .................................................................................................... 6
1.3. The Economic Significance of the Project ........................................................................ 7
1.4. Location and Premises Required ....................................................................................... 8
2. MARKET STUDY ...................................................................................................................... 11
2.1. Scope of the Market Study ............................................................................................. 11
2.2. Market Demand.............................................................................................................. 11
2.3. Market Supply ................................................................................................................ 13
2.4. Target Customers ............................................................................................................ 13
2.5. Market Prospects............................................................................................................ 13
2.6. Marketing Promotion and Strategy ................................................................................ 13
2.7. Service program.............................................................................................................. 14
2.8. Sales Plan/Capacity ......................................................................................................... 14
3. SERVICE MIX AND CIVIL WORK OF THE PROJECT .................................................................. 15
3.1. Service mix ...................................................................................................................... 15
3.2. Civil Engineer Building and Civil Works .......................................................................... 16
4. ORGANIZATION AND MANAGEMENT .................................................................................... 17
4.1. Organization and Management ....................................................................................... 17
4.2. Man Power ..................................................................................................................... 17
4.3. Organizational Structure ................................................................................................ 17
5. FINANCIAL REQUIRMENT AND ANALYSIS .............................................................................. 20
5.1. Total Initial Investment Cost........................................................................................... 20
5.1.1. Fixed Investment ..................................................................................................... 20
5.2. Annual Service (Production) Cost at Full Capacity ......................................................... 22
5.3. Financial Analysis and Statements .................................................................................. 23
5.3.1. Underlying Assumption ........................................................................................... 24
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EXECUTIVE SUMMARY

1. Project Name Fuel Station Project

2. Project Owner KARAJPAL SINGH KHEHRA

3. Nationality Indian

4. Project location
600 HWY 80 WEST CLINTON, MS 39056

5. Project Composition Fuel station service (Fuel, Gasoline, Kerosene, Engine

oils, Lubricant, Liquor Store, Lotto Games, Tobacco Sale
and Convenience store)
6. Total Investment
$100,000/-
Cost

7. Employment A total of 5 employees.

Opportunity

8. Benefits of the Provide better service, Revenue generation,

project For The
Employment Opportunity, benefits local economy and
region/ country
stimulate local economy.
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1. INTRODUCTION

Clinton, MS is a small city located in the central part of Mississippi, close to both Jackson and
Vicksburg. It has an approximate population of 25,429 residents which makes it a great place
for families looking for a quieter environment. The 5 largest ethnic groups in Clinton, MS are
White (Non-Hispanic) (50.1%), Black or African American (Non-Hispanic) (43.5%), Asian (Non-
Hispanic) (3.45%), Two+ (non-Hispanic) (1.02%), and Other (Hispanic) (0.622%). None of the
households in Clinton, MS reported speaking a non-English language at home as their primary
shared language. This does not consider the potential multi-lingual nature of households, but
only the primary self-reported language spoken by all members of the household. 97.6% of the
residents in Clinton, MS are U.S. citizens.

The largest universities in Clinton, MS are Mississippi College (1,436 degrees awarded in 2022)
and Mississippi Institute of Aesthetics Nails & Cosmetology (455105) (58 degrees). In 2022, the
median property value in Clinton, MS was $204,100, and the homeownership rate was 69.6%.
Most people in Clinton, MS drove alone to work, and the average commute time was 25.8
minutes. The average car ownership in Clinton, MS was 2 cars per household.

As of 2022, 97.6% of Clinton, MS residents were US citizens, which is higher than the national
average of 93.5%. In 2021, the percentage of US citizens in Clinton, MS was 97.4%, meaning
that the rate of citizenship has been increasing.

The owners of this envisaged project has a good business experiences and very ambitious to
establish the company by expecting a good support and facilitation from the regional
government.

1.1. Objective of the project

The main objective of this project is to establish a standard Fuel Station in 600 HWY 80 West
Clinton, MS 39056.

Source: https://www.bestplaces.net/economy/city/mississippi/clinton
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1.2. Profile of the Promoter

The promoter of the project MR. KARAJPAL SINGH KHEHRA is a known business entrepreneur
in the area and also engaging in different business. In addition, the owner of this project hopes
this project to be the first of many other developmental projects to follow as they look forward
to share the responsibility of fighting poverty, reducing unemployment here in Clinton MS. The
promoter accumulated diversified skills in the area and also adopted working with many
people. Thus, it is these experiences which primarily motivated this investor to develop the
inception of this project idea.

The feasibility of the project has been carefully assessed and the promoters are confident that
it will be a total success. The business will be run by a team of competent management
professionals who have acquired practical achievement in related business fields. The
marketing-oriented approach to placement of products and distribution will be primarily based
on the need and preference of the customers and end users.

The promoter also is visionary and ambitious business, who is committed to make a difference in
traditional business practice by approaching it in an innovative way.

WORK EXPERIENCE

Kag Canada [Westcan Bulk Transport] Owner Operator 08 September 2021 - Current

● Creating a business plan and strategy.

● Keeping track of finances and accounting.

● Handling legal and compliance responsibilities.

● Managing marketing and sales.

● Ensuring outstanding customer service.

● Identifying hiring and HR needs.

● Overseeing the team.

● Managing day-to-day operations.

● Supervised and worked with up to ten employees and colleagues.

Light speed Logistics Inc Dispacth Manager 17 May 2018-21 August 2021

● Supervised and trained new employees.

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● Delegating tasks, coordinating the daily workload, documenting productivity, overseeing

incoming and outgoing shipments, and reporting to senior management.

McDonald’s Assistant Manager December 2012- March 2017

● Directed and led employees and team members on Effective operations, methods and
procedures.

● Coached employees on interactions with customers to drive exceptional service.

● Supervise and train up to six to ten team members.

● Taught staff upselling Techniques to meet revenue targets.

Burger King Supervisor January 2006-October 2011

● Supervises and trains five to ten team members and Shift Coordinators on team

stations, products, processes and policies.

● Manages cash control/security procedures and implements marketing plans,

maintains inventory, manage labor, and apply financial reports across shifts to

enhance restaurant results.

Education:

● Diploma in Electronic Communication

● Skill & Interests

● Skills : Excel,Google Analytics,Adobe,Powerpoint,Microsoft word

● Soft Skills :Self Starter, Problem solving, Organizational

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1.3. The Economic Significance of the Project

The envisaged project deemed to contribute to the economic development of the region in
general and the district/zone in specific with following ways:

1. Provide better service

By providing quality services, the project will satisfy the demand of the customers.

2. Source Of Revenue

As public policy of any nation, the government collects different forms of taxes from different
business organizations and individuals. Among the different forms of taxes, business income
taxes and payroll taxes are collected from undertaking business activities. Therefore, the
project has been serving sources of revenue for regional government.

3. Employment Opportunity

One of the problems that every country faced is unemployment. Therefore, the current
objective of the government is working on tackling the problem of unemployment and fostering
the development process either through creating self-employment or employment in other
organization. In this regard, project had hired 5 employees.

4. Benefit For Local Community

Apart from employment opportunity for local community, as a corporate responsibility the project
has been engaged in different development activities. This will better worth the community in
particular and contribute for the development of the nation as a whole.

5. Stimulate The Local Economy

The project will increase economic relationship and transactions among different actors in the local
economy.
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1.4. Location and Premises

A. Project Location
The envisioned project will locate in, 6 0 0 H W Y 8 0 W E S T C L I N T O N , M S 3 9 0 5 6

Location Map of the area

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2. MARKET STUDY

2.1. Scope of the Market Study

The project is targeted for West Clinton town and surrounding area. Hence, the scope of
market study of this project concentrates on the Clinton town and surrounding rural villages in
general.

Demographics and Population Trends: Understanding the local population's size, growth rate, age
distribution, income levels, and commuting patterns is crucial. This data helps determine the
potential customer base and their fuel consumption habits.

Traffic and Accessibility: Assessing the traffic flow in the area, including major highways, commuter
routes, and proximity to residential and commercial areas, helps gauge the station's visibility and
accessibility.

Economic Indicators: Reviewing local economic conditions, employment rates, and business
developments provides insights into the area's economic health and potential demand for fuel
services.

2.2. Market Demand

There are a number of factors which creates demand for Fuel Station In the area. The following
major factors are identified;
• Population and Traffic Patterns
• Competitive Analysis
• Economic Factors
• Consumer Behavior and Preferences
• Regulatory and Environmental Considerations
• Future Projections
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These major demand factors for the project are explained as follows

• Population and Traffic Patterns: West Clinton's population size and growth trends are crucial, as
they directly influence the demand for fuel. Additionally, studying traffic patterns, including
commuter routes and density, helps gauge potential customer flow past the station.

• Competitive Analysis: Assess existing fuel stations in West Clinton to understand their offerings,
pricing strategies, and service levels. This analysis helps identify gaps or opportunities in the market
that your fuel station could potentially fill.

• Economic Factors: Evaluate the economic conditions of West Clinton, including income levels,
employment rates, and overall economic stability. These factors affect residents' commuting habits
and their disposable income for fuel purchases.

• Consumer Behavior and Preferences: Understand local preferences regarding fuel types (e.g.,
regular, premium, diesel), payment methods (cash, credit, mobile payments), and additional
services (such as convenience stores, car washes, or repair services).

• Regulatory and Environmental Considerations: Be aware of local regulations governing fuel

stations, including zoning laws, environmental standards, and permits required for operation.

• Future Projections: Forecast future demand for fuel in West Clinton based on population growth
projections, economic forecasts, and anticipated changes in consumer behavior.

2.3. Market Supply

In the town there exist few service provider organizations. Standard restaurants, cafeterias,
pensions, assembly halls, play station and fuel station centers. Besides, all quality services in
one organization is almost nonexistence in the West Clinton abroad.

2.4. Target Customers

The target customers of the envisioned project are

• The residents of the West Clinton and the surrounding area

• Merchants and drivers
• Business Community
• Different occasional guests
• Different institutions( Government, NGOs and Private)
• Domestic and Foreign tourists and visitors
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2.5. Market Prospects

From the above analysis of market, it can be deduced that there is a huge gap between
demand and supply for Hotel business in the West Clinton as in the district that will give a
lucrative market for the envisioned project.

2.6. Marketing Promotion and Strategy

To reach customers different marketing ways will be used. Among the different marketing
strategies and tools for promotion controlling the market:

➢ Printed and non printed forms of advertising,

➢ Sponsorship of key government activities and public support mechanism.
➢ Seasonal discount pricing for guest houses and different others customer
centric marketing strategies will be used by the company.

The Fuel Station under discussion will have diversified marketing strategies that could enable it
come up with the different competitors in the market. Moreover, customer satisfaction will be
the key marketing strategy of the building. Generally the project has a competitive advantage
since there are no many standard fuel station in the town.

2.7. Service program

The organization initially operate at 90% of its capacity and will reach 100 %( full capacity)
service provision in the second year.

2.8. Sales Plan/Capacity

SN Description

Fuel Station
2.1 Kerosene
2.1 Benzene
2.3 Diesel
2.4 Lubricant and oil
3 Convenience Store
4 Meeting Hall
5 Liquor Store
6 Lotto game
7 Supermarket- Tobacco Sale
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3. SERVICE MIX AND CIVIL WORK OF THE PROJECT

3.1. Service Utility

The Fuel Station will provide the following service

Fuel Station

The project will provide different fuel energy (like kerosene, benzene and Diesel) for end users
by franchise based business from one of the oil company. Besides, the projects will also sale
different oil and lubricants for consumer. Moreover, service like Lotto Games and parking will
be provided by the company.

3.2. Civil Engineer Building and Civil Works

The buildings are planned to accommodate fuel station, and other utility requirements as well
as green areas and parking.

In general the buildings must be capable of being kept clean and provision should be made for
keeping the sewerages drained out properly and room temperature is attained to keep healthy
environment. In most environments, equipment should be totally enclosed in a light structure:
where the climate is suitable. A concrete floor, which can be swept, is usual.

The site will be encircled by a chain linked fence fastened to concrete posts. The project
construction is designed by professional engineers and construction will be done under close
supervision of the engineers.

4. ORGANIZATION AND MANAGEMENT

4.1. Organization and Management

The organizational structure should be in a way that the fuel station service can able to achieve
its objectives as well as the satisfaction of standard requirement.
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4.2. Man Power

The total manpower hired by company is 5 persons. The manpower list and the corresponding
labor cost are shown in Part five of this document.

4.3. Organizational Structure

The organizational structure of the project is designed by including all the necessary personnel
under the right division. At the top of the organizational structure, there will be manager with
the responsibility of supervising the overall activity of the fuel station. Depending up on the
nature of the center and the amount of work to be performs; there exist auxiliary units under
the general manager.

Employees under each unit will be supervised by the department head that is accountable for
the general manager. General Manager is appointed by the owner.

Owner

General Manager

Service Management Admin and Finance Marketing Department

Dept. Department

Fuel Station Convenience Parking Engine Oil Vehicle Spare Employee rooms
Store Shop Part
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A. The General Manager’s

The duties and responsibilities of the general manager are;
➢ He will plan, organize, direct and control the overall activities of the fuel station.
➢ He will devise policies and strategies that will enable the organization profitable

➢ He will plan, organize, direct and control the human and non-human resources of the
organization (other departments) so as to achieve the short and long run objectives of the
organization.
B. Service Management Department
This is the core department that has six main sections (Fuel station, Lotto Games, Parking
area, Engine Oil Shop, Vehicle Spare Parts and employee rooms)

The main duties and responsibilities of this department are

➢ To render those outlined services of the project and manage the overall service
delivery system of the motel and fuel station in line with the customer need and
satisfaction.
➢ He will incorporate modern technological innovation that will facilitate the service
delivery of the fuel station Lotto Games, Parking area, Engine Oil Shop, Vehicle Spare Parts
and employee rooms’ services that will increase customer’s satisfaction.

C. Administration & Finance Department

The Admin & Finance Department of the Hotel is responsible for undertaking the following
activities:
➢ Manage the human resources and control employee’s activity
➢ Will manage non human resources of the organization, which include: effective handling
of the different inventories and devise strategies of controlling against fraud and damage.
➢ Will provide the right material or inventory to the center with right price at the right time.
➢ Will plan, organize direct and control the financial transaction of the building by using all
the necessary documents.
➢ Accountant and cashers that will collect money from the customers.
➢ Will develop sound financial control system by developing modern financial control
systems.
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➢ Will prepare the annual financial statements and prepare condensed reports for both
the General Manager and other concerned government body.

A. The Marketing Department

➢ Will handle the overall marketing activities of the organization which include planning,
organizing, directing, and controlling.
➢ Will develop the marketing strategies.
➢ Will develop effective customer handling strategies
➢ Plan and execute the promotion mix
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5. FINANCIAL ANALYSIS / PROJECTION

According to the projected income statement, the project will start generating profit in the 1st
year of operation (2024) on the assumption that take over will took place in the second half of
the year.
Important ratios such as profit to total sales, net profit to equity (Return on
equity) and net profit plus interest on total investment (return on total investment) show an
increasing trend during the lifetime of the project.
The income statement and the other indicators of profitability show that the project is viable.

We will generate revenue mainly from regular services. Fuel sales generate tax revenue for the
city or county, which can be used for public services, infrastructure improvements, and
community projects.

APPENDICES
APPENDIX 1: FINANCIALS PROJECTIONS
 Projected
Year Ended Year Ended Year Ended Year Ended Year Ended
Particular
December 31, 2024 December 31, 2025 December 31, 2026 December 31, 2027 December 31, 2028
1st Year 2nd Year 3rd Year 4th Year 5th Year
6 Months 12 Months 12 Months 12 Months 12 Months
Revenues:
Sales $ 3,89,721 $ 8,18,414 $ 8,59,335 $ 9,02,302 $ 9,47,417

Total Revenue (A) $ 3,89,721 $ 8,18,414 $ 8,59,335 $ 9,02,302 $ 9,47,417

Cost of Goods Sold:

Purchases/ cost of material $ 2,82,440 $ 5,93,716 $ 6,10,934 $ 6,42,763 $ 6,68,827

Cost os Sale (B) $ 2,82,440 $ 5,93,716 $ 6,10,934 $ 6,42,763 $ 6,68,827

Operating Expenses :

Business taxes,licenses and memberships $ 177 $ 375 $ 397 $ 421 $ 447

Bank charges $ 655 $ 1,389 $ 1,473 $ 1,562 $ 1,657
Insurance Expenses $ 2,224 $ 4,716 $ 5,001 $ 5,304 $ 5,624
Professional fees $ 1,198 $ 2,539 $ 2,693 $ 2,856 $ 3,029
Rent $ 6,363 $ 13,496 $ 14,312 $ 15,178 $ 16,097
Repairs and Maintenance $ 9,046 $ 19,186 $ 20,346 $ 21,577 $ 22,883
Supplies $ 1,719 $ 3,646 $ 3,867 $ 4,101 $ 4,349
Utilities $ 2,684 $ 5,692 $ 6,036 $ 6,401 $ 6,789
Wages and benefits $ 22,699 $ 48,143 $ 51,056 $ 54,145 $ 57,421

Total Operating Expenses (C) $ 46,762 $ 99,182 $ 1,05,181 $ 1,11,545 $ 1,18,296

Earning Before Interest, Taxes & Amortaization

(A-B-C) $ 60,520 $ 1,25,516 $ 1,43,220 $ 1,47,994 $ 1,60,294
(%age on Turnover) 15.53% 15.34% 16.67% 16.40% 16.92%

Less: Income Taxes Paid $ 605 $ 1,255 $ 1,432 $ 1,480 $ 1,603

Net Income (Loss) after taxes (D) $ 59,914 $ 1,24,261 $ 1,41,788 $ 1,46,514 $ 1,58,691
(%age on Turnover) 15.37% 15.18% 16.50% 16.24% 16.75%