Running head: SAHARA FOODS BUSINESS PLAN 1

Sahara Foods Business Plan

BUS 557 Applied Methods
Presidential Business School
Westcliff University
Instructor: Rabindra Silwal
Presented By: Deepika Gautam
26 August 2020
SAHARA FOODS BUSINESS PLAN 2

Executive Summary
Along with the change in the lifestyle of people their consumption pattern and habit has changed

people prefer ready made products. The demand of pickle has grown from household to hotels

and restaurants. Nepali pickle market is dominated by Indian brand Pickle and only few Nepali

Brand Pickle are popular in the market. Indian pickle is unhealthy as a result it may cause health

issues like high blood pressure and high salty containing pickle may create the risk of stomach

cancer. The main pain point of customers they did not get healthy pickles in the market available

pickle in the market may create health issues.

Sahara Company is a Partnership company in a partnership with Deepika Gautam and Januka

ojha. Identifying the market gap, Sahara Foods enters into to be socially responsible by providing

healthy and Transparent food product and the mission of the company is to produce quality

goods that exceeds the customer satisfaction. The target customer of Sahara foods is working

women, health conscious people, and elderly people. In the initial phase company produces four

different varieties of pickles and in the later stage company began to produce additional varieties

of pickle as well as adds other food products such as dehydrated vegetables and fruit chips. In the

first-year company will have negative operating cashflow as company will not be able to

optimally utilize resources. Similarly, company starts to earn its first net profit from second year

of Rs 135715 and by the end of 5th year its net income reaches Rs 1035513. Similarly, Company

will have Rs 1,036,122 total assets in the first year and in the fifth company will have Rs

3,816,903 which is about 4 times more than its first-year assets. Moreover, company will repay

its debts in Five year. By looking at the business environment, Sahara Foods will find a better

investor and execute exit plan after 8 years of its operation

SAHARA FOODS BUSINESS PLAN 3

Content
Executive Summary ...................................................................................................................2
1. Background .............................................................................................................................4
2. Company Introduction..............................................................................................................4
2.1. Vision....................................................................................................................................5
2.2 Mission .................................................................................................................................5
3.1 Customer pain point ………………......................................................................................5
3.2 Solution to The Problem ….................................................................................................. 6
3.3 Target Customer ………………. ........................................................................................ 7
3.4 Market Segmentation ........................................................................................................... 8
3.5 Business Modularity ............................................................................................................ .8
4 Business Mode…………………………………………......................................................... .9
4.1 Revenue Model…………..................................................................................................... 11
4.2 Operation Model ……………................................................................................................14
4.3 Channel & promotional Strategy.......................................................................................... 14
5.1 Competitive Positioning …………………........................................................................... 15
5.2 Venture Concept Dashboard ……........................................................................................ 17
6 Milestones ……………………………………....................................................................... 19
7.1 Organizational Structure........................................................................................................ 22
7.2 Team Member ………......................................................................................................... 23
8 Financial Outcome ……...........................................................................................................25
8.1 Income Statement …………………………………………………………………………. 27
8.2 Cash Flow Statement ............................................................................................................ 28
8.3 Balance Sheet……… ........................................................................................................... 30
9…Exit Plan ……………………............................................................................................... 31
SAHARA FOODS BUSINESS PLAN 4

Background
[Link]

Nepal is a country where people prefer “Dal, Bhat, Tarkari and Achar” in lunch as well as

in dinner. Pickle act as a taste enhancer as it adds spice to meals. Also, provides health benefits

such as helps in digestion, smooth the muscle cramps, contains antioxidants that helps to boost

immune system (Chakraborty & Roy, 2018). Nowadays people lifestyle has changed and has

become busy and hectic. Therefore, people prefer “Ready-to-eat” foods. In Nepal demand for

pickle has increased form household to restaurants, hotels, and party palaces. Moreover, there is

increasing demand of Nepalese brand pickle from countries like Dubai, Japan, Malaysia, US, etc.

Nepali pickle market is dominated by Indian Pickle. There are only few Nepali brand pickles that

are being able to compete with Indian Brand. Most of the Indian Pickle are unhealthy as it

contains excess oil, sour and contains lots of chemicals that helps to preserve pickles for long

period. In such situation, if someone came up with organic pickle would be best market

opportunity. Sahara Food aims to grab this opportunity by offering organic pickle to Target

Market.

1.1 Company Background

Sahara Foods Product Description

Sahara Foods is a company that produces foods items and its specialty are organic pickle.

Sahara pickle are made using 100% organic vegetables and contains less oil and no chemicals

which can be consumed by all age group people. All the vegetables required to make pickle are

purchased from the local farmers. Spices required to make pickles are crushed in the factory to

ensure the quality of the pickle. Initially, Sahara Foods produces four varieties of pickle Dalle

Khursani, Lapsi, Lemon, Pumpkin seeds and Bitter Gourd seeds pickle. These pickles are

available at four different size 50ml pouch, 100ml, 250ml, 500ml, 1000ml. All these four size
SAHARA FOODS BUSINESS PLAN 5

pickle pouch and jars are made focusing at different family size. In order to ensure that hygiene

is maintained while preparing pickle, we will obtain ISO 22000:2005 certificate. Company is

registered under Partnership firm under

2.1 Vision

To be socially responsible by providing healthy and transparent food product. In a long

run company aims to provide healthy foods to its customers. This helps company to gain loyal

customers and build company brand.

2.2 Mission

Produce quality goods that exceed customer satisfaction. Sahara Food is dedicated to

produce hygiene food products to its customers that helps to exceed their satisfaction

[Link] Pain Point

It is already mentioned that Nepali Pickle Market is dominated by Indian Brand Pickle.

Only few Nepali Brand pickle is famous in Nepal. Those pickles are unhealthy as it contains

excess oil, salty and unhealthy pickles. Most of the vegetables used to make pickles are produced

using Pesticides that may create health issues. Everyone loves to eat pickle but people hesitate to

eat readymade pickle. The pain point of customer is consuming readymade pickle are:

Pickles are unhealthy: Most of the readymade pickles are unhealthy as most of the pickle

maker use vegetables that are produced by using chemicals and pesticides, which may have

negative side effects in people’s health. Moreover, use of excess oil and chemicals in pickles

may create health issues like high blood pressure and a chance of stomach cancer as pickles

contains excess salt to preserve for longer time (Islami, Taylor, Ren, & Kamangar, 2009).
SAHARA FOODS BUSINESS PLAN 6

Readymade pickles cannot be served to every age group: Most of the pickles contains excess

oil and spices people of all age group cannot consume such pickle. In survey, most of the

working women says that they buy readymade pickle but those who have elderly people in their

home have to prepare simple pickle for them. Moreover, Health conscious people hesitate to eat

ready made pickle as it contains lots of chemicals. Similarly, one of the women says that during

her pregnancy though loved to eat pickle during and cannot make pickle by herself once

purchased readymade pickle but she finds there is excess spice and salt in the pickle. Then she

orders homemade form her friends and family.

3.2 Solution to the Problem

The main solution to the problem is making pickle suing organic vegetables which

provides various health benefits to the customer. Moreover, using Sesame oil Instead of mustard

and sunflower oil. Using various nutrients factors that promotes healthy life. Sahara pickle are

suitable and are focused every group of people. For example, Dhule achar which can be prepared

without using oil, Sweet Lapsi pickle are especially made for adult and children. Similarly, dalle

khursani and lemon pickle for adults and teen age people. Also, pickle is available in four

different sizes which is prepares by focusing the different family size. Sahara foods also makes

customized pickles as well. During some family functions and events people needs more pickle

that the normal days. They can make order three days earlier before delivery date.

All the vegetables are purchased form the organic farmers and the spices are brought and

cruhed in the factory to ensure the quality of spices. Various nutrients factors such as Vitamin A,

Vitamin C, Vitamin K and calcium are mixed while making pickle. Some of Sahara Pickle can

be consumed in different ways such as Dhule khursani can be consumed as pickle and it can be

used in soup to enhance the taste of Soup

SAHARA FOODS BUSINESS PLAN 7

2.3 Target Customer

Working women: Most of the working women find it difficult to prepare varieties of

product

Target consumer is the individual business has identified like most likely to buy product

and services (Aghdaie & Alimardani, 2015). Identifying the target customers is one of the most

critical considerations for a new business owner to consider Without understanding target

audience, or if an can’t survive in the competitive environment. The target market of Sahara

Foods are:

 Working women: Most of the working women find it difficult to prepare varieties of

product. They prefer to purchase readymade food. If food provides home like tase then it

will add value to the customer. Sahara Foods provides pickles that has homemade tase

and are healthy.

 Health Conscious People: Now a day’s people diet pan to be fit an healthy for this they

avoid oily foods. Such customers can be attracted by providing organic foods as it is good

for health.

 Elderly people: Mos of the elderly people are suffering some health problems. Sahara

foods prepared pickle (Dhule Achar) which is prepared without using oil specially

prepared for the elderly people.

2.4 Market Segmentation

Market segment is the process of dividing the target market into different segments and

group based on their characteristics (Martin, 2011). Sahara Foods market segmentation is done

on following way:
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Geographical Factor

Urban Area and Semi-Urban Areas: (Kathmandu Valley, Chitwan, Pokhara, Hetauda,

Nepalgunj, Dharan, Biratnagar, Butwal, etc). When business is able to cover Kathmandu valley

products are distributed in these cities.

Demographic Factor

Primary consumer: Working and non-working women

Secondary consumer: Elderly people, health conscious people, Hotels and Restaurants

Age Group: 15- 80 years

Income Level: Medium and High level

Psychographic Factor

Preference: Spicy, tangy, sweet, healthy and organic people

Attitude: Health-Conscious people

Lifestyle: Busy and working people

3.5 Business Modularity

Business Modularity is the ability of the business to create varieties of products using the

same resources which helps to reduce the cost of organization. Sahara Foods decided to produce

varieties of pickles using same vegetables and spices which is given below:

Lapsi and Lemon Pickle: Lapsi pickle is prepared in three different ways sweet Lapsi pickle

which is made using sugar. Sweet Lapsi pickle is prepared mainly focusing elderly and children.

Similarly, dry Lapsi and lemon pickle that have little bit of tangy and sour taste which can be

consumed as Titaura. Spicy Lapsi can is prepared adding some extra chilly which is prepared

specially for Adults.

SAHARA FOODS BUSINESS PLAN 9

Dalle Khursani Pickle: Dalle Khursani is prepared in two different ways dry Dalle khursani in

the solution of salt and lemon and gravy Dalle Khursani which is prepared by cutting khursani

into pieces and adding the spices. Dalle khursani is prepared mostly to sell in the winter season

as it helps to heat up body.

Other pickle that is produced in future such Mango pickle are made in two different flavor gravy

and dry. Radish pickle is available in spicy and sweet & sour taste.

Sahara Food have identified three competitors in the market (Druk, Navaras, Amako Achar)

these pickles are the popular market players in Nepal.

4 Business Model

Simply a business model describes about how our business makes money and explains

how value is delivered to the customers at appropriate cost. “business model contains precisely

delineated characters, plausible motivations and a plot that turns on an insight about value. It

answers certain questions: Who is the customer? How do we make money? What underlying

economic logic explains how we can deliver value to customers at an appropriate cos”

(Margretta, 2010). There are four components in business model they are:

4.1 Revenue model: The revenue model is part of the business, which describes the various

processes of generating income as well as its sources. Sahara Foods Revenue Model consists

four components:

Direct and Retail Sales: Sahara Foods is small startup, in initial stage Sahara Foods

basically relay on direct sales of its products. In the fifth year Company opens its own outlet

where it places other small company product and charge fees for every month. Retail sales is a

smart way to deliver promotions and free items to an established consumer base to further raise

brand recognition.
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Frequency of revenue: Since Sahara Foods decided to give place for other company in its

store commission is charged for selling their products. For each unit of sales 5% commission is

charged. Revenue from direct sales would be monthly but the revenue from retail or commission

would take place whenever Sahara Foods is able to sell other’s product which is reoccurring in

nature.

Price Level: There are different players in the Nepali market price of these players are

shown below:

Competitors / Price Price Range

Navara Achar Rs 180-Rs 600

Amako Achar Rs 150-Rs 650
Druk Rs 80-Rs 700
Arambha Rs 100-Rs 650
Sahara Pickle Rs 70-750

From the above table we can see prices of four different competitor, Druk offers pickles

in various size and its 50 ml pouch cost Rs 80 and its 1.5 Kg Jar pickle price is Rs 700.

Similarly, Navaras Pickle Price level is Rs 180 to Rs 600 and the sizes available from

120ml to 100gm. Amako Achar lowest price pickle is Rs 150 and its Highest Price Pickle is Rs

650. Among the competitors Druk presents the competitive price. Since, Sahara Foods uses

organic raw material its price is higher compared to that of competitors.

Revenue Stream: Revenue Stream is the key component of cash generated by a company

for each target customers. Most business need to have at least one stream of revenue to make

money. Revenue Stream is the key component of cash generated by a company from each

targeted customer. (Saarikallio & Tyrvainen, 2014). Most businesses must have at least one large

stream of revenue to make money. There are four different streams of revenue of Sahara Foods.
SAHARA FOODS BUSINESS PLAN 11

Direct sales: Main stream of revenue is the direct sales products form. In a first-year company

earns approximately Rs 987715 in first years and Rs 4541555 in the second year.

Customization Fee When customers want to customize pickle, they can directly order in the

factory outlet for customization charge ranges from Rs 100-Rs 150 depending the quantity and

the types of pickles customers orders.

 Delivery Charge: Sahara Foods offers delivery service to its customer which is Rs 100

for each delivery. In first company expects to receive around 8330 no orders.

 Sales of waste materials: Instead of throwing waste from the factory, company decides

sell all of its wastes to the fertilizer maker which helps to generate extra revenue for the

company for each kilo of wastage we will charge Rs 150.

4.2 Operation Model: Operation model is basically related with the how business manages

supply chain, production and does it deliver products to the customers. Some of the component

of Operation model are:

Research and Development Model: Before starting a business, a proper research and is

done in the market and analyzing the demand of organic pickle in the market to understand the

taste and preference of the customers. For three month a research is conducted where different

questionnaire is developed to collect the responses from the market. Moreover, research is done

to find out the strategic moves used by the competitors, machine and equipment requires to start

the business. From the research it is find that middle and upper class people are ready to pay high

price for organic pickle.

Production Approach: It is already mentioned, only 4 varieties of pickle (Pumpkin

seeds and Bitter Gourd seeds, Lapsi, Lemon, and Dalle Khursani) were chosen by Sahara Foods

in the initial process and pickles are produced through fermentation process. When vegetables
SAHARA FOODS BUSINESS PLAN 12

are brough in the factory, the first step is to put the veggies in a brine solution (water mixture and

salt). After soaking vegetable in brine, it is soaked in the sun for fifteen minutes. All the

ingredients required to make the pickle are carried and then crushed in the factory to ensure the

consistency of the pickle. Adequate amount of spices is used and combined completely in

vegetables. Once veggies and spices are properly combined, they are placed in jars. After

packaging is completed pickles are kept in sun for at least 3 weeks to bring the taste and moisture

in the pickle (Noonari, Memon, & Kourejo, 2015). In order to bring a proper taste and colour in

pickle it needed to be kept in sun for few weeks.

Operation approach: Company follows Lean operation approach which focuses on

reducing the wastage and improve the quality of products and cut cost by making the

manufacturing process more efficient (Kumar, Reyes, & Belekoukias, 2014). For the production

Sahara Foods follows hybrid organizational production process where most of it contains make

to order strategy. In order to reduce the wastage we will be investing in pickle making equipment

such as pickle mixing machine, blender, vegetable peeler this reduces the cost and wastage in

manufacturing process (Martin & Leurent, 2017). Using machineries and equipment helps to

increases the efficiency and effectiveness and also to increase the production. Lean production

can be accomplished by continuous improvement in output. Vegetables soon rotten to ensure that

only fresh vegetables are used to make pickles, all vegetables brought from suppliers are used to

make pickles within one day. It helps to reduce the diversion of raw materials.

Another characteristic of lean production is continuous improvement, while the Sahara

pickle focuses on constant improvement and continues to add pickle varieties. In addition, that

overproduction, as fruit and veggies are only available during the off-season season, making

them more costly. In order to reduce the risk of increase in the cost of vegetables, we make
SAHARA FOODS BUSINESS PLAN 13

pickles during their season. For Example, in Monsoon we find more Lemon we purchase lemon

make pickle and store and sell it in the offseason.

Inhouse and Outsource

For Raw material, Vegetable and Packaging & Printing

All the vegetables needed to make pickles are purchased from from Manakamana

Vegetables Suppliers as organic vegetables are collected from local farmers. The manufacture of

pickles (pickle pouch and jars) is outsourced as the expense of producing pouch and Jars

machines is costly and raises the cost of production and the price of pickles . All the plastic

pickle pouch and Jars are ordered from Piya Plastic Ltd and Sujal Plastic. Both companies offer

best quality of jars and plastic pouch at reasonable price. Also, provide customized jars and

pouches. In addition, they have flexible credit policy.

All the tags and printing related work is done by Active Printing Press. The main reason

for choosing Active Printing Press is that they provide all printing facilities at a reasonable price.

Using outside suppliers helps to reduce the fixed cost of the company at the same time it

increases the variable cost. All spices are ordered from OM Masala Which is located at Dhapasi

and have various outlet around Kathmandu valley and one of them is in Bhaisepati

Order Fulfillment

We use Hybrid Order Fulfillment Solution for order fulfillment. Almost all of the customer

orders are handled by Third party Logistic Total Logistic Pvt Ltd. In-house distribution is only

used when consumers order personalized pickles. Order fulfillment have access all over the

Nepal. We can reduce the fixed cost as but it will be costlier for company if they ship less

products compared to more products (Croxton, 2003). The reason behind choosing Total Logistic

are;
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 It reaches most of the cities that we have planned to distribute our product in Nepal.

 It provides insurance facilities in case if products get destroyed during transportation.

 It is providing best services at a reasonable rice

 It ensures delivery of products in reliable and efficient way using innovative technology

4.3 Channel and Promotional Strategies (Go-To-Market Strategy)

In order to reach the financial consumer, company uses both physical and online stores.

In the initial phase company focuses to sell in the local markets, grocery shop departmental

stores like K K Mart, Big Mart. Further pickles would be available in the Big Stores such as

Bhatbhateni. From the second year company company starts to sell its products in the major

cities (Hetauda, Chitwan, Biratnagar, Itahari, Birgunj) as well starts to sell its products in online

platform such as Daraz, [Link]. After first year, company will develop its website where

customer can make online orders. To reach the customer there are two tire middleman

wholesaler and Retailers.

For marketing strategy company use social media from which they can reach wide range

of customer, Pamphlets, Brochure. Moreover, company attends in food events. Where we can

introduce our pickle to the mass people. Involving in CSR activities like participating Bagmati

“Sarsafai Abiyan” would help to build brand.

SAHARA FOODS BUSINESS PLAN 15

Fig: Sahara Foods Brochure

5 Competitive Positioning:

Competitive positioning is about determining how you will "differentiate" your product

and build value for the market. It's about cutting out a position in a competitive environment,

setting your chips on the table, and gaining the market share (Burke, 2011). Identify the

competitive advantage helps to stand out of the crowd and gain the competitive advantage.

Basis Navaras Ama Ko Arambha Druk Ghar Ko

Achar achar Achar
Established More than 17 More Than 5 More than 8 1986 -
Years Years years
Price Range Rs 180- Rs Rs 157-Rs Rs 310-Rs Rs 50-Rs 600 Rs 70-Rs 750
600 650 650
Varieties More than 45 More than 10 About 30 More than 50 Only 5
varieties
Availability of 200gm, 100gm, 200gm, 200gm, 5kg, 250gm,
sizes 380gm, 400gm, 1.5kg, 100gm, 500gm,
400gm, 1000 600gm, 100gm, 1 950gm, 1000gm,
gm, 500gm 1000gm kg, 500gm, 400gm, 50gm
250gm 600gm,
250gm,1.2kg
, 50gm
SAHARA FOODS BUSINESS PLAN 16

Customized No No No No Yes
facility
Healthy Yes No No No No
Delivery Yes No No No Yes
facility
Other product Yes No No Yes Yes
line

Above table shows the comparison of Sahara Pickle with the its competitors in the

market. All the competitors are already establishing in the market. Among Druk is the oldest

pickle, followed by Navaras Achar, Arambha, and Aama Ko Achar. Similarly, the competitors

brand have varities of pickle available in the market. Druk has more than 50 varieties of pickle,

Amako achar has more than 10, Arambha has more than 30 varieties of pickle available in the

market. Likewise, competitors have advantage over Sahara Pickle in the size of pickle jars and

pouch. Sahara Foods has competitive advantage over its competitors in customized facility.

Sahara Food provides customized facility for this customer have to order 5 days earlier before

the delivery date. Moreover, Shara Foods and Navaras pickle produces healthy pickle and

provide delivery facilities to the customers. Companies like Druk and Navaras has Other product

line such as Druk has ketchup, fruit slices, squash, corn flakes) and Navaras sell pulses, jams,

spices, etc. Also, Navaras has it restaurant called Achar Ghar. Apart from pickle, Sahara foods

produces sundried vegetable, Dehydrated fruit chips, “Sakhar” and other foods products.

Analyzing the above table, Navaras and Druk are the tough competitors.
SAHARA FOODS BUSINESS PLAN 17

5.2 Venture Concept Dashboard

Some of the benefit provided by products to its customers are as follows:

Customer

Customers of Sahara Pickle are going to work females who've had busy schedules,

healthy individuals who want to eat natural foods, senior citizens want fresh and natural food,

pregnant women trying to carve pickles (, spicy, sour and sweet).

Product

100 % organic pickle made from organic vegetables, natural herbs, excess oil, no

artificial food colour, chemicals such as chlorine and sodium. This type of pickle can be

consumed in all age categories. Food colour is produced by us with a variety of fruits and

veggies. Five forms (pumpkin seed, bitter gourd, lemon, dalle Khursani) of pickles are prepared

with a range of flavours, such as gravy, dry, sweet, sour,etc. After the first year, the company
SAHARA FOODS BUSINESS PLAN 18

begins to increase its product line and manufacture sundried veggies and dehydrated fruit chips

such as apple chips, pineapple chips, banana chips).

Customer Benefit

• Functional Benefit: Sahara Pickle is a fine and unique flavor. This pickle is safer as all the

vegetables used to make the pickle are organic as well as the spices are prepared by someone to

ensure the quality of the pickle. Some of the positive effects of Shahara Pickle are it enhances

nutrition across the digestive system. It contains various nutrients factors such as vitamin A that

improves vision, Calcium that keeps adult healthy nerves and strong teeth, Vitamin K which

makes bones strong. In addition, it helps in digestion as well as improves the taste of the food.

• Emotional benefit: Lemon and Lapsi pickle are specially made for pregnant mothers, carving

spicy and sour. This pickle meets the carving of pickles at the same time as it ensures health, as

any of this pickle does not contain any unhealthy food colors and pesticides. In addition, pickles

are cooked using conventional spices that have home-made flavor.

• Social benefits: Use organic products and buying from local producers to help sustain and

encourage local farmers. In same way, selling food waste for agricultural chemicals instead of

dispose of the waste or using recycled pouch and container helps to preserve and clean the

environment (Shafy & Mansour, 2018) Moreover, providing employment opportunities for local

women that enable these women to provide financial assistance to their family.

Cases

Working women who have elderly people in their home cannot serve unhealthy pickle

Health conscious people cannot consume oily pickle as it creates health problem.

Solution
SAHARA FOODS BUSINESS PLAN 19

As Sahara pickle is made using organic vegetables and homemade recipes which do not

contain some additives, sugar, salt , sugar, excess oil, food colour excess oil that does not affect

people's health and it can be eaten by every age group ( pregnant, elderly people, people with

diseases such as diabetes). Sundried vegetables and dehydrated fruit contain a number of

minerals and vitamins.

Design Points

• Parts used in pickles (all-natural spices and organic pickles). Five different kinds of Lapsi

pickle, lemon pickles, pumpkin seeds and bitter gourd seed Lapsi and Dalle khursani are

prepared in a mixture of fresh, gravy and sundried pickles and mixed pickles. For example, Lapsi

pickle is produced in four different types (sweet, dry, spice, and sour) of dry pickle that can be

used as "Titaura.".

• Pickles are available in 5 sizes: 50gm, 250gm, 500gm, 1000gm family size pots. Both

disposable jars and packs are being used for packaging purposes. The 50gm pouch is made of

authentic, transparent plastic material. Moreover, all the ingredients used to make pickle are

listed on the back and the beneficial effects of the pickle are mentioned.

 Pickles are available in different online and physical stores (local shops, departmental

stores). Online platform help customers to save time as they get home delivery service. In

the initial phase products are made available at local stores and departmental stores.

6. Milestones

Milestone is the one of the important part of business plan which is presented in a chart

that show the major events or achievements that are to be achieved in certain deadline by

business (Altahtooh & Alaskar, 2018). Basically, milestones are divides into four parts

company’s first product design, it first commercial production, first commercial sales, its
SAHARA FOODS BUSINESS PLAN 20

operating profit, and the further investment does to expand the business. Milestone of Sahara

Foods is explained below:

Alpha Phase (2020 Dec 20)  First outlet in Bhaisepati

 Four different size of pickle jars and
pouch for packaging
 Decisions related to varieties of pickle
to be produced
Beta Phase (2021 January 5) Four varieties of pickles are produced 184
(jars and Pouch are produced)
First Dollar Sale (2021 January 15)  1st 85 packets of dule achar and 5 jars
of lapsi pickle are sold
 2nd remaining 100 packets and jars of
remaining pickles are sold
 Total sales in in January Rs 39180
First Operating profit (2022, Operating profit of Rs January 2022 as sales
revenue increases by adding varieties
Further Investment (2011, January) Investment in fixed assets of Rs 370000
(kitchen equipment Rs 250000
Vehicle Rs 120000) to increase the
production
2026 (Mid July) Company makes exporting its products to
foreign countries

Alpha Phase (2020 Dec- 2021 Jan 1): Sahara food outlet would be in Bhaisepati which is

located at 1km away from Medicity Hospital. It is decided to produce 4 varieties of pickles,

Lapsi, Dalle Khursani, Pumpikn Seeds abd Bitter Gourd seeds, Lemon. By analyzing the family

size and the preference of customers four different size of pickle packaging is design (1000ml,

500ml, 250ml), and 50ml pouch is decided to use for packaging pickles. More the logo of the
SAHARA FOODS BUSINESS PLAN 21

company is designed. Also, the factory layout is setup, kitchen equipment is installed to start the

production.

250ml 500ml 1000ml 50ml

Beta Phase (2021, Jan 5): In January five Sahara Foods starts is first commercial production

starts. Four varieties of pickle will be produced. Altogether, 185 jars and pouch of pickle is

produces. Quantity
50m
250ml 500ml 1000ml l
10 8 4 20
7 9 6 30
5 8 5 20
18 10 5 20

At first, 22 jars and 20 pouches of Lapsi, 21 jars and 30 pouches of pumpkin seeds and

Bitter Gourd seeds, 18 jars and 20 pouch of lemon, and 33 jars and 20 pouches of Dalle khursani

is prepared. More jars and pouch of dalle khursani is prepared as people prefer Spicy pickle at

the winter season.

First dollar sale (2022, Jan 15): The first product that Sahara Pickle make first commercial sale

is Dhule achar which is made up of pumpkin and bitter gourd seeds and lapsi pickle as these

pickles can be instantly consumed after the production. Since it takes minimum 3 week to get the

taste and color in the pickle, the other pickle will be commercially sold on January 25 in the
SAHARA FOODS BUSINESS PLAN 22

market. Altogether, first sales revenue will be Rs 39180 in the month of January. Pickles are sold

near areas of Bhasepati local shops, Bigmart and K K Mart.

First operating profit (2022 January - Febuary): Since in the first year will be unable to

utilize its resources optimally the it would not be able to earn operating profit. From second year

Sahara Foods adds some pickle and foods varieties which will increase the revenue for the

company. Thus, between January and February of 2022 company will achieve its first operating

profit of Rs 297424.3985.

2022 January: Further investment is made to increase the production Sahara Foods will invest

in Kitchen Equipment of Rs 250000 (dehydrator machine, and Rs 120000 of vehicles.

2026 January: In five years company will grow enough and makes major decision to start sales

of its products and services in neighboring country India.

Organizational Structure

5.1 Organizational Structure

Any corporation or association shall be founded by a person or a group of people to

achieve the organization's goals. Among these individuals and groups, there are specific

employees employed in their respective fields (Finance, marketing, human resource, production,

marketing and sales, and research and development). To accomplish the targets and aims of the

company, establish internal relations and order between the founding member, the strategic

planning and the staff as (top management , middle-level management and lower-level workers)

defined as the organizational hierarchy (Leea, Min, & Lee, 2016). Sahara Food flows

decentralized organizational structure where all the managers can make their decision

independently. For example, Marketing manager can make marketing campaign to increase the

sales volume. Procurement manager is responsible to choose appropriate vegetable supplier by

SAHARA FOODS BUSINESS PLAN 23

consulting with the top managers. Moreover, decentralized organizational structure there is

proper flow of information between departments (Ezigbo, 2012). In a decentralized organization

manager can make better and more timely decision.

5.2 Team Members

Business cannot handle by single person, a group of people with diverse skills are needed

to run the business efficiently (Shuffler, Salas, Deborah, & Travis, 2018). A diverse team of

people helps business to thrive in this competitive business world through their innovative ideas

team members. There are two board members and four team member:

Organizational Team

Founder (Deepika Gautam)

She is the founder of the organization who is currently perusing MBA in finance

specialization. She works as a finance and budget manager as she has ability to manage the

capital requirement for the company and compares investment opportunity. She will be helping
SAHARA FOODS BUSINESS PLAN 24

in preparing financial statement such as balance sheet, income statement, cash flow statement.

Moreover, she responsible to analyze initial fund requirement and capital required to manage

monthly expenses. As a production manager she analyzes the Break Even point and the payback

period of investment and make further investment decisions to increase the production.

Januka Ojha (Managing Director):

Januka Ojha have complete ther Bachelor degree in Arts and is being active member of

Khumaltar Mahila Samiti. She is responsible to execute the company’s business strategies,

maintain relations with the company suppliers, customers, and conduct CSR activities that helps

to build company image. She has high influencing power and great skills to manage team

members. She looks after what types of training are needed to provide workers to increase their

performance and hiring of the workers in the company.

Production manager (Mankumari Gautam and Padma Gautam)

Production manager is responsible to look after the overall manufacturing process. The

key role of the Two production manager should take care of production because they know about

the whole manufacturing cycle of the types of vegetables to make pickles, the proper mixture of

spice and ingredients to offer a special taste. Production manager looks after what kind of raw

material (vegetables, fruit) and the proportion of spices required to in bring unique taste in the

pickle. Both the managers are directly involve in production of pickle where look after

performance of all the tools and equipment (vegetable peeler, blender, weighing machine) are

performing efficiently. They are responsible to guide the other workers while preparing the

pickle One of the managers, Man Kumari Gautam is experienced as she used to make pickle and

sell in local market for las 15 years and have received positive responses from the market. Also,

Padma Kumari Gautam have knowledge of spices and can mix spices to create unique flavor.
SAHARA FOODS BUSINESS PLAN 25

Procurement and Sales Manager (Tej Prasad Gautam)

Tej Prasad Gautam is currently running his own business and has been managing

procurement and sales related activities by himself. He has completed Bachelors in Marketing

and has worked as Marketing manager in Enoc Lubricant. Main responsibility of Procurement

manager is to implement procurement strategy and maintains relations with the supplier. Mr Tej

Prasad Gautam compares the suppliers in terms of quality, price, and credit facility. Moreover,

he his responsible to select to select third party logistic who transport products outside

Kathmandu valley. Ensures that raw materials arrive at factory before the stocks reaches restock

level.

Sales and marketing Manager (Shree Prasad Dahkal)

Shree Prasad Dhakal Has completed Bcom and has been working as Marketing manager

in Gorkha Department Store for 15 years. He is responsible in the promotion and position of

Sahara pickle in the market. Organize the promotional activities such as CSR activities and

marketing strategies to promote company’s product. Visit market to take to know the customers’

needs and receives feedback from the market through social media and market research.

Moreover, he is responsible to analyze competitors move and develop strategies to compete with

them through marketing strategies.

7. Financial Outcome

Financial Outcome

Initial Investment

Particular Amount
Office equipment 20000
Furniture and Fixtures 65000
Kitchen equipment 67700
Vehicle 150000
Total Fixed Assets 302700
 SAHARA FOODS BUSINESS PLAN 26

Pre operating cost

Registration cost 25000
Legal fees 25000
Certificate from Department of Food Technology 10000
Total Initial Investment 342700

First Year Revenue

1st Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
5947 8302
Sales Revenue 39180 42390 53790 45500 0 62400 5 104490 105955 118475 132065 140975 987715
Deliver Charge 2000 2500 3000 2500 3000 3000 3000 3000 5000 10000 9000 7000 53000
Sales of
Wastage 2000 2200 2420 2662 2928 3221 3543 3897 4287 4716 5187 5706 42769
Customization
Charge 1000 2000 3000 4000 5000 5500 6000 6600 6930 10395 15593 17152 83169
7039 9556
44180 49090 62210 54662 8 74121 8 117987 122172 143586 161845 170833 1166653

2nd Year Revenue

2nd Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Sales 2425 2541 2564 2432 2797 2888 2977 3091 3356 5449 6883
Revenue 10 30 45 65 95 95 55 35 25 50 50 800700 4541555
Delivery
Charge 7000 7350 7350 7718 7718 8103 8103 8509 8509 8934 8934 9381 97607.45
Sales of
Wastage 5706 5992 6291 6606 6936 7283 7647 8029 8431 8852 9295 9760 90826.84
Customizati 1715 1800 1891 1985 2084 2189 2298 2413 2534 2787 3066
on Charge 2 9 0 5 8 0 5 4 1 5 3 32196 279858.1
2723 2854 2889 2774 3152 3261 3364 3498 3779 5906 7372
68 81 96 43 97 72 90 07 05 11 41 852036 5009847

Monthly operating Expenses

Per
Particulars
Mon Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Salary 2 27, 27 2 27,0 27,0
27,000 27,000 27,000 7,000 000 ,000 7,000 27,000 00 00 27,000 27,000
Rent 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000
Electricity Exp 1000 1000 1200 1320 1452 1597.2 1756.92 19323 2126 2339 2572 2829.537 3112
Telephone 500 500 550 605 665.5 732 805 886 974 1072 1179 1297 1427
Gas 6000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
Water 1000 1000 1000 1000 1000 1000 1000 1100 1210 1331 1464 1610.51 1771.561
Miscellaneou
s 0 800 800 800 800 800 800 800 800 800 800 800 800
Audit Fee 0 15000 0 0 0 15000 0 0 0 0 0 0
Advertising 0 10000 0 0 0 0 15000 0 0 0 0 0 0

Repair and
Maintenance 1000 0 - 0 0 0 2500 0 0 0 0 0 3000
 SAHARA FOODS BUSINESS PLAN 27

Fuel 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
Logistic 15000 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500
6 64, 97 6 66,0 66,5
Total 88,800 64,050 64,225 4,418 629 ,362 5,218 65,610 41 15 67,037 70,611

6.1. Income statement: Income statement is one of the core financial statement that shows the

company’s net profit and loss during an accounting period. (Mirouiuc, Carp, & Chersan, 2015).

Income statement shows to the investors that whether the company is in profit or not.

Sahara Foods

Income Statement

2021-2025

Year 1 Year 2 Year 3 Year 4 Year 5

Particulars (Rs.) (Rs.) (Rs.) (Rs.) (Rs.)
Sales Revenue 987715 4541555 5904022 7084826 8218398
Revenue from other
Sources 178938 468292 515122 566634 849951
Total 1166653 5009847 6419143 7651460 9068349
Less: Cost of Goods Sold 1147157 3803198 4508637 5349645 6352781
Direct labor 240000 552000 607200 667920 734712
Cost of raw material 907157 3251198 3901437 4681725 5618069
Gross Profit 19496 1206650 1910506 2301815 2715567
Less: Operating Expenses
Salary 324000 356400 392040 431244 474368
Rent 360000 396000 435600 479160 527076
Electricity bills 23237 25561 28117 30929 34022
Telephone 10692 11761 12937 14231 15654
Gas 12000 13200 14520 15972 17569
Water 14487 15936 17529 19282 21211
Miscellaneous 9600 10560 11616 12778 14055
Audit Fee ( two times ) 30000 30000 30000 30000 30000
Advertising 25000 27500 30250 33275 36603
Repair and maintenance 5500 6050 6655 7321 8053
Fuel 12000 13200 14520 15972 17569
Logistic 18000 19800 21780 23958 26354
Less: Depreciation on
SAHARA FOODS BUSINESS PLAN 28

Office equipment 4000 3600 3240 2916 2624

Furniture and Fixtures 3250 3088 17933 17036 18685
Kitchen Items 5416 24400 46448 50732 62674
Vehicles 12000 20640 18989 17470 16072
Total operating expenses 869183 977696 1102175 1202276 1322589
Net profit before interest
and tax 0 228954 808331 1099539 1392979
Less: Interest 0 48000 37957 26708 14110
Net Profit Before Tax 0 180954 770374 1072831 1378869
Less: Tax @ 25% 0 45238 192594 268208 344717
Net Profit after Tax 0 135715 577781 804623 1034151

Above table shows the Income statement of Sahara Foods in the first year, total sales

revenue is Rs 1166653 which gradually increases in each year. For, the first-year Gross profit is

2%, 24%, and 30% in 1st, 2nd, 3rd, 4th, and 5th year respectively. The total operating in the first

year is Rs 869183, second year Rs 977696, in third year 1102175, in fourth year Rs 1102276 and

in fifth year Operating expenses Becomes Rs 1322589 In first year There is no net profit in the

1st year. In the 2nd year net profit increases by Rs 135715 and in the 5th year net profit is Rs

1034151.

6.2 Cash Flow Statement: Cash flow statement show inflow and outflow of cash from business

over an accounting period (Noor & Nour, 2012)It is divided in cash flow from operating activity

( core business activity), Cash flow from investing activity ( investment in fixed assets), cash

flow from financing activities ( issue shares, pay dividend, payment of long term debts).

Cash Flow Statement

Sahara Foods
From 2021-2026
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
A. Cash Flow from Operating 112440 156284
Activities -525491 734539 558796 9 6
116665 500984 545627 688631 834288
Cash Collected from Customers 3 7 2 4 1
SAHARA FOODS BUSINESS PLAN 29

318920 359887 431624 517948

Less: Cash Paid to Suppliers 742961 6 8 0 9
Cash Paid for Operational 101556 111412 122253
Expenses 869183 925968 5 2 4
Cash Paid for Interest 80000 114896 90439 63335 33295
Cash Paid for Tax 0 45238 192594 268208 344717
B. Cash Flow from Investing (370000 (300000 (100000 (200000
Activities ) ) ) )
Purchase of furniture 300000
Purchase of Vehicle 120000
Purchase of kitchen items 250000 100000 200000
C. Cash Flow from Financing (668962
Activities )
(131038 (227836 (104985 (117584
Principal Paid ) ) (93737) ) )
Loan 800000
124526
Surplus (A+B+C) 143471 136703 165059 919424 2
167836 314306 450422 614943 1533872
Add: Opening Cash
314306 450422 614943 1533872 2778680
Closing Cash
From the above Table we can see that in the first year there is negative cash flow from

operating activities i.e. Rs -525491 in order to manage the negative gash foe business borrows Rs

900000 lakh loan and the closing cash balance at the first is expected to be Rs 314306 in the

second year, Company will be able will be able to earn its operating profit of Rs 734539. In the

same year, investment in vehicle and another kitchen equipment will be purchases of Rs 120000

and 250000 respectively. Similarly, in the third year, company cash outflow as its investment in

furniture of Rs 300000. In all year there is negative cash flow from financing activities as a new

firm which is in growth phase normally have negative cash flows from investing activities for the

growth and expansion of the company (Omag, 2016) Similarly, in 4th and 5th year company

invest in kitchen equipment. In the Fifth-year company’s closing cash to Rs 2778680.

SAHARA FOODS BUSINESS PLAN 30

6.3 Balance Sheet: Balance Sheet shows the company’s total assets and liabilities of the

company at the end of accounting period. By analyzing the balance sheet investors know the

financial health of the company.

Balance Sheet
For the year ended 2021-2026
Particulars Year 1 (Rs.) Year 2 (Rs.) Year 3 (Rs.) Year 4 (Rs.) Year 5 (Rs.)
Assets
Fixed Assets
Tangible Assets
Office equipment 18000 16200 14580 13122 11810
307402.781
Furniture and Fixtures 42750 40612.5 323581.875 3 339533
Kitchen Items 62284 285200 538384 505374 724328
Vechiles 138000 237360 218371.2 200901.504 184829
1094917.07 1026800.28
Net Fixed Assets 261034 579372.5 5 5 1260500
Current Assets
10079.5191 42257.750 50709.3009 60851.1611 73021.3933
Closing stock 3 8 5 5 7
Cash and cash equivalent 314306 883138 757310 1533872 2021600
Total Current Assets 324386 925396 808020 1594723 2094621
Intangible assets 450702 457373 460000 461735 461781
Total Assets 1036122 1962142 2362937 3083258 3816903

Liabilities and Equity

Current Liabilities
Accounts payable 91724 383538 457229 650842 658410

Long term loan 344,398 841,126 588,833 309,436 -

Equity

Capital 600,000 600,000 600,000 600,000 600,000

Dividend 50,000 50,000 50,000 50,000

Retained Earning
SAHARA FOODS BUSINESS PLAN 31

- 87,478 666,874 1,472,980 2,508,493

Total Liabilities and
Equity 1,036,122 1,962,142 2,362,937 3,083,259 3,816,903

Above is the balance Sheet of Sahara Food for next five years. The current assets and
current liability in the first rear is Rs 1036122 respectively. Due to heavy investment within the
five years Company total assets increases. From the second years company starts to distribute
dividend of Rs 50000 each year for the next four year. Company have total of Asset of
Rs3,816,903 in the fifth year. In each year company’s accounts payable increases and in the fifth
year it is expected that company will repay its long-term debt.
7. Exit Plan
Exit Plan

Since the market is very competitive and new hotels are opening one after another, we

need to make alternative plans to attract more customers in future. The competition is really

tough and can become difficult for the Sahara’s sustainability. Exit should be seen as a vital

event that focuses on the change of property. It is at this point in the business cycle that

investment income (or losses) arise, or, in other words, there is also a harvest exit from

production. Exit plan can be in various forms merger and acquisition, liquidation, sell off assets

(Tinenn, 2010). Sahara Foods has decided to execute exit plan after 7 years of its operation when

business is not able to create innovation in its taste. By then end of 7th year business will be able

to earn ten times its initial investment.

.
SAHARA FOODS BUSINESS PLAN 32

Conclusion

To sum up, Sahara Foods is small company that is focus towards providing the organic

and healthy foods to its customers. Though people are becoming busy day by day and prefers to

consume ready made food, they prefer organic and healthy food. Since, some of the market

players in the market are providing unhealthy pickle is the main market gap. Sahara foods

produces pickles using organic vegetables which provides health benefits to its customers.

Moreover, Sahara foods care about every age groups so they prepare pickles that is that can be

consumed by everyone. We have presented three financial statement where in the first-year
 SAHARA FOODS BUSINESS PLAN 33

company will have negative cash flow from operating activities and there will be no profit in the

first year. In the second-year company’s net profit will be Rs 137478 and in fifth year its net

profit reaches Rs 1035513. Similarly, the total value of the company in fifth year will be Rs

3,816,903. After 8 years company decides to exit the business by selling it to the appropriate

investor.

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