MY FIRST BUSINESS PLAN ON CATERING_2012

Four major obstacles for catering business are :
1.) Buying NEW expensive high-end equipment when you all you need to do is call a local wholesaler of used restaurant equipment and pay only a fraction of the cost.,
2.) Hiring more people than you need = overhead, etc...,
3.) Location - lack of accessibility or visibility.,
4.) Advertising - You must know where & how to advertise for the lowest dollar amount.



FIRST ATTACHMENT IS FOR OVERALL B PLAN

SECOND ,THIRD ATTACHMENT IS FOR INDIVIDUAL COST BREAK UP ON ISSUES LIKE SALARY AND ESTABLISHMENT



NEt cost is coming out to be 6 lakh around FOR ONE ORDER AND ONE MONTH NET.(INCLUSIVE OF EVERYTHING)

* with proper advertising and about 10 orders a month and by scheduling per plate cost to be 50 for 500 people each in each of these orders cost comes out to be= 250000 which is not enough. nET COST PER CUSTOMER HAS TO BE AROUND 3 LAKH ATLEAST per order .IN 10 ORDERS IT CAN BE AROUND 40 LAKH. COST OF ESTABLISHMENT OF AROUND 30 K is one time .THE REST OF 4 .8 LAKH OUT OF 6 LAKH CALCULATED IS ON SALARY TRANSPORT AND RENT AND HENCE IS ONE TIME FOR ONE MONTH. 1.3 LAKH IS FOR ONE ORDER.

SO NET PROFIT IS 1.7 L *10(ORDER)=17 L - 4.8 L =12 L NET FOR ONE MONTH ( if and only if 10 orders come in one month and price per order is 3 lakh)

FOR GENERALISED VIEW AS A FORMULA IT CAN BE WRITTEN AS

profit (x)=(x-1.3)* n - 4.8

FOR PROFIT OF ANY MAGNITUDE
if x=2 LAKH then n has to be >7
if x=3 LAKH and n has to be >3

where x is net amount charged for one order and n = number of order

HENCE OVERALL CHANCES OF PROFIT IS MODERATELY GOOD.