Business Proposal on Hotel Services and Cafeteria Business

Introduction

In
setting up a hotel and cafeteria business enterprise, there should be a plan
intended to achieve a specific goal and a powerful lucrative ideas to be
considered in setting up this business enterprise (Hotel services and
Cafeteria). These locations include nearness to market, nearness to poly-techniques,
universities, colleges, companies, stadium etc and well developed area. The purpose
of this business plan is to raise a particular amount of money for the
development of this Hotel services and cafeteria business.

The total
amount required to carry out this business is about N1.8m.

Name
and Location of Business

This
business is named BBFV Hotel services and cafeteria and will be located close
to Petroleum Training Institute (P.T.I). Road, Warri. It is located here
because the institute is a well developed area close to the express way where
travelers passing by can easily locate it.

Aims
of the Business

The aims
of this business is to meet up with many demands of people e.g., travelers
traveling by, students in the institute and others living close to the P.T.I
express way in Warri, who would want to eat, drink and take shelter at their
convenient way in a particular time.

Required Funds

This BBFV
Hotel services and cafeteria business enterprise, these are a breakdown of the
total amount of equipments and their prices that will be use.

Sources of Capital

We will
take loan from the co-operative society because the bank take higher interest
rate than co-operative. The sum of N1.8m
will be collected from the co-operative, to be paid back in two (2) years which
will be N18,000 per month with 10%
interest.

Sensitivity
Analysis

Due to
economic changes, the business enterprise may be faced with a decline in its
revenues as in individuals and the business scale down the size of their
proposed events.

However,
BBFV’s Hotel services and cafeteria will be able to realize its profits due to
the high gross margins generated by the business.

Equipment Required in the Hotel Services and
Cafeteria Business

Equipments	Price ( N)	Quantity	Total cost.
Rent	25,000	2 yrs	600,000
Gas cooker	10,000	2	20,000
Gas cylinder	3,000	2	6,000
Tables	1,500	10	5,000
Wooden table	1,000	2	2,000
Chairs	1,000	40	40,000
Sound proof generator	60,000	1	60,000
Display canter	500	1	500
Pots	4,000	5	20,000
Frying pan	1,000	2	2,000
Plates	500	50	5,000
Bowl	150	10	1,500
Cutleries	300	70	21,000
Serving spoon	100	4	400
Dust bin	100	2	200
Basket	500	2	1,000
Television set	5,000	10	50,000
Wooden bed	1,000	10	10,000
Foam	5,000	10	50,000
Pillow	500	200	10,000
Bedspread/pillow case	2,000	40	80,000
Washing machine	30,000	1	30,000
Air-conditioner	40,000	10	400,000
Total			1,243,600

Other
expenses include confectioneries like Local Government N5,000
per month, vigilante charges N1,000 per
year, workers N5,000 each per month,
miscellaneous N545,400, total N556,400 then N556,400 + N 1, 243,600 = N1,800,000.

Starting
Up Ingredient Per Day

Ingredients description	Quantity	Unit Price	Total Cost
Meat pie	15	45	675
Biscuits	1 dozen	50	600
Bottle water	5 packets	45	2,700
Sweet	½ packet	50	50
1 crate of mineral	1		1,400
2 crates of Malt	2		2,400
Garri	2 baskets	350	700
Egusi			6,000
Jollof & fried rice			10,000
Banger soup			5,000
2 crates of Origin	2		3,600
2 crates of Goldberg	2		3,600
Fish			5,000
Chicken			5,000

Price Description

1.
Plate of
Jollof rice 500

2.
Plate of
Banger soup 300

3.
Plate of
Egusi soup 300

4.
Meat pie 150

5.
Biscuits 15

6.
Sweet 10

7.
Chewing
gum 10

8.
Water
100

9.
Mineral 120

10. Malt 200

11. Alcohol 400

12. Chicken 400

13. Fish 500

14. One room
8,000

Expected Income

We are
dealing with our calculation on the seven (7) working days in the week (Mondays
to Sunday) with starting ingredients that will be sold per day. Below is the
expected income.

S/N	Description	Unit price	Quantity	Total Amount
1.	Plate of Jollof rice	500	25	12,500
2.	Plate of Fried rice	600	15	9,000
3.	Plate of Banger soup	300	30	9,000
4.	Plate of Egusi soup	300	20	6,000
5.	Meat pie	150	30	4,500
6.	Biscuits	15	25	375
7.	Sweets	10	25	250
8.	Chewing gum	10	15	150
9.	Water	100	40	400
10.	Mineral	120	12	1,440
11.	Malt	200	18	3,600
12.	Alcohol	400	48	19,200
13.	Chicken	500	20	10,000
14.	Fish	600	20	62,000
15.	A room	8,000	10	80,000
TOTAL				168,415

The table
below gives the total amount expected daily, weekly, monthly and yearly.

S/N	Per day	Per week	Per month
	N 68,415	N 168, 415 x 7 days	N 1,178, 905 x 4weeks
		= 1,178, 905.	= 4,715,620
			Per year
			N 4,715,620 x 12 months
			= N 56, 587, 440.

Therefore,
the gross profit per year

= 56,
587, 440.

Daily Expenses

S/N	Description	Amount
1.	Ingredients	46,725
2.	Diesel	4,125
3.	Transport	500
TOTAL		51, 350

Weekly Expenses

S/N	Description	Amount
	Operational cost	51, 350 x 7 days
TOTAL		= 359, 450.

Monthly Expenses

S/N	Description	Weeks	Amount (N)
1.	Operational cost	x 4 weeks	=1,437,800
2.	10 workers 5,000 x	10	=50,000
3.	Light Bill		=500
4.	Loan payment		=75,000
5.	Interest		=18,000
TOTAL			N1,581, 300.

Yearly Expenses

S/N	Description	Amount
1.	Operational cost x 12	18,975,600
2.	Civil defense	1,000
3.	Public relation services	10,000
4.	Miscellaneous	20,000
TOTAL		N 19, 006, 600

Therefore
net profit = Gross profit –total expenditure

= N56,587,440 – N19,006,600

= N37,580,840.

Conclusion

On this
note, with the net profits realized, we will be able to pay back the loan and
interest which will be gotten within one (1) year and can also be secured for
purchasing our own land and raising our building within that same location. If
the owner of the building is willing to sell the building at an agreed price,
we can buy the building to be able to retain our customers.

All these
put together, will go a long way in establishing a hotel services and cafeteria
business in other towns, cities and states.