Project #01

Business: Fuel your fitness journey

Business Name: Fresh ‘n’ Fit
Submitted By: Sahra Gulzar
Roll no: 21041521-054
Term: VII
Course Code: ECO - 453
Course Title: Entrepreneurial Economics
Department : Economics
Submission Date: October 14,2024.
Submitted To: Sir Usama

1|Page
Fresh ‘n’ Fit
Glow Good

2|Page
Introduction

All the praises belong to Allah Almighty, for helping us in every step of our life & support in
our studies all the time. Secondly, we would like to show our gratitude to our coordinator Sir
Usama, for his support & guidance in our project completion. We are thankful to Government
post graduate college Jhelum for giving us this opportunity to enhance our knowledge & work
in better way. Also, I am very thankful to my group members for their hard work in this
project.

Fresh & Fit Food Outlet in College

Executive summary

Fresh ‘n’ Fit is a food cart business established to catering the needs of health-conscious
students at the Government Postgraduate College Jhelum. We understand that finding healthy
food options on campus can be a challenge, so we're here to fill that gap. Our menu will be

3|Page
packed with nutritious and delicious choices that will satisfy both the taste buds and the body.
Fresh salads bursting with vibrant veggies, protein-packed wraps filled with lean meats or
plant-based alternatives, and wholesome grain sandwiches that are as tasty as they are
nourishing. We're on a mission to make healthy eating accessible and exciting for students, so
they can fuel their bodies and minds for success.

We are on a mission to make healthy eating accessible and exciting for students. We believe
that nourishing your body shouldn't be a routine but rather an enjoyable experience. By
offering a diverse menu that caters to different dietary needs, we aim to empower students
to make healthier choices without sacrificing taste or convenience.

1. Business Description

1.1 Idea of the business:-

The major goal of our business is to provide convenient access to healthy and delicious food
options for students and staff at our college. We want to create a positive impact on the
student and staff community by promotinprovide a solution that meets the needs of health-
conscious students and staff. With our focus on offering delicious and healthy meals, we
have a great chance to attract a loyal customer base and stand out from other food options on
campus.

1.3 Vision:-

“Our vision is to create a vibrant and nourishing food business that not only satisfies the
cravings of students at our university but also inspires them to make positive choices in eating
for their well-being”.

1.4 Mission:-

“Our mission is to serve the student community with delicious and nutritious meals that fuel
their bodies and minds”

1.4.1 Customers:-

Our customers primarily are students and staff members who are health conscious. We’ll be
targeting those who prioritize their well-being and are looking for convenient and nutritious
food options on campus.

4|Page
1.4.2 Products:-

Our products will be fresh salads bursting with vibrant veggies, protein-packed wraps filled
with lean meats or plant-based alternatives, and wholesome grain sandwiches that are as tasty
as they are nourishing.

Fresh & Fit Veggie Delight Salad

5|Page
 Fresh & Fit Customized Salad

Whole Wheat Grilled Sandwich

Fresh & Fit’s Customer-Made Sub

1.4.3 Market:-

Our market would primarily be the students and staff of college.

6|Page
1.5 Objectives:-

The objectives of our business are to:

• Provide convenient and nutritious food options to the students on campus.

• Build a strong reputation for quality and taste.

• Promote a healthy lifestyle among our customers.

• Ensure customer satisfaction by delivering exceptional service.

1.6 Keys to Success:-

The keys to success for our business are quality food, convenient location, diverse menu,
exceptional customer service, effective marketing, and continuous improvement.

1.6.1 Quality food: We need to prioritize the quality and taste of our food. By using fresh
ingredients, maintaining high standards in food preparation, and ensuring consistency, we can
deliver delicious and satisfying meals that keep our customers coming back for more.

1.6.2 Convenient location: It's crucial to establish our food kart in a prime location on
campus that is easily accessible to students. By being in a central and visible spot, we can
attract more customers and make it convenient for them to grab a quick bite between classes.

1.6.3 Diverse menu: Offering a diverse menu with options for different dietary preferences is
important. By including vegetarian, vegan, gluten-free, and other options, we can cater to a
wider range of customers and ensure everyone finds something they love.

2. Management Description

In terms of our management description, we'll have a collaborative and inclusive approach. All
investors, including me and my friends, will have a say in decision-making to ensure that
everyone's voices are heard. We have a designated manager who oversees the day-to-day
operations, including inventory management, staff scheduling, and customer service.

2.1 Forms of Ownership:-

Our business conducts partnership business. We have chosen general partnership as the form
of ownership for our company, which means that each partner will receive an equal share of
profits and final distributions as well as equal rights and liabilities. This particular partnership
type comprises five members. Who have invested equally in the business's capital and who

7|Page
share equally in its profits and losses, each member has a 20% ownership stake in the company.
.

2.2 Ownership Structure:-

There are five partners who invest in and work in Fresh and Fit. Each member's investment
determines how much profit or loss they receive. These members administer the business and
actively participate in achieving the objectives. Each member is responsible for any business
losses up to the value of its equity.

Sandal 20%

Rabia 20%

Sufyan 20%

Ali Hassan 20%

Numan 20%

2.3 Intellectual property rights

In Pakistan, there is a government organization that deals with intellectual property rights. In
accordance with the ordinance of 2001 and the trademark rules of 2004, we applied for
intellectual property rights at the registrar office of the intellectual property rights, which is
the authority of the trade registration in Lahore, and we have registered our brand name, logo,
and slogan.

2.3.1 Brand Name

8|Page
Fresh and Fit

2.3.2 Logo

2.3.3 Slogan:-

Glow Good

2.3 Organizational structure:-

9|Page
Fresh & Fit’s Organizational structure

2.4 Management Team:-

Positions

CEO

Managers

• Marketing Managers

• HR Manager

• Operation Manager

• Finance Manager

We five friends form our management team and oversee all business activities accordingly.

CEO: Numan as CEO of the business oversees all business’s operations and set strategies to
improve the management of the business.

HR Manager: Sandal as HR manager plays important role in managing the human resource
of our business. She also assists in customer service resolving customer inquiries, providing
support and ensures positive experience for our customers.

Operational Manager: Rabia operates as operational manager and oversees the day-to-day
operations, including inventory management, managing the kitchen staff and the production of
food.

10 | P a g e
Marketing Manager: Ali Hassan as marketing manager focuses on promoting our business,
running social media campaigns, and collaborating with customers to increase visibility of
business.

Finance Manager: Sufyan works as finance manager in our business he takes care of all the
financial aspects, such as budgeting, financial planning, and managing expenses.

With this management team in place, we can achieve smooth operations, effective
decisionmaking and continued growth.

3. Feasibility Analysis

3.1. Market Demand:

3.1.1. Market Research:

We investigate the demand for healthy food option in our target area. We analyze
demographics, preferences, and competitor to identify the gaps or opportunities.

3.1.2. Trends:

We identify current health and wellness trends influencing food choices. We considered
factors like plant-based diet, organic preferences, and specific nutritional needs.

3.2. Competition:

3.2.1. Competitors Landscape:

We analyzed the competitors in fresh and fit food market. In college there is no fresh food
crafts so that is easy for us to start the business without any hurdles and competitors.

4. Environmental and Competitive Analysis

4.1. External Factor:

4.1.1. Technological Trends:

Advancement in technology may create opportunities or threats. Adopted to technological

changes enhances competitiveness. We can enhance the heathy food business by using
technology. If students follow the dietary plan, and then we can attract the audiences through
technology.

11 | P a g e
e.g. online order, free delivery options.

5. Operational Plan

5.1 strategies for process management:

These are some strategies by which we can effectively manage the processes in our “fresh n
fit” food business.
Standardize Processes:

We establish Standardize procedures for various aspects of our business including ingredient
sourcing, food preparation, cooking techniques, packing and delivery .This ensures
consistency and quality across all operations.
Implement quality control measures:

We set quality control checkpoints throughout the production process to ensure that all food
items meet our standards. We will regularly inspect ingredients, monitor cooking processes
,and conduct taste tests to maintain the desired quality..

6. Strategic Plan

A strategic plan for FRESH AND FIT food business by utilizing the EFE (External Factor

Evaluation), IFE (Internal Factor Evaluation), SWOT (Strengths, Weaknesses, Opportunities,

Threats), SPACE (Strategic Position and Action Evaluation), and QSPM (Quantitative Strategic
Planning Matrix) matrices.

6.1. External Factor Evaluation (EFE) Matrix:

6.1.1EFE Matrix:

| External Factors | Weight | Rating (1-5) | Weighted Score |

|-------------------------------|--------|--------------|----------------|

| Economic stability | 0.10 | | |

| Regulatory environment | 0.15 | | |

| Social and cultural trends | 0.12 | | |

12 | P a g e
 | Health and wellness trends | 0.15 | |
| | Technological influences | 0.10 |
| |
| Environmental sustainability | 0.08 | | |

| | 1.00 | |

6.2. Internal Factor Evaluation (IFE) Matrix:

IFE Matrix:

| Internal Factors | Weight | Rating (1-5) | Weighted Score |

|------------------------------|--------|--------------|----------------|

| Quality of ingredients | 0.15 | | |

| Brand reputation | 0.12 | | |

| Menu variety and innovation | 0.13 | | |

| Operational efficiency | 0.14 | | |

| Marketing effectiveness | 0.11 | | |

| Sustainability practices | 0.15 | | |

| | 1.00 | | |

6. 3. SWOT Matrix:

6.3.1. SWOT Analysis:

- Strengths: Quality ingredients, brand reputation.

- Weaknesses: Limited marketing effectiveness, operational inefficiencies.

- Opportunities: Growing health trends, technological advancements.

13 | P a g e
-Threats: Intense competition, changing regulatory landscapes.

6. 4. SPACE Matrix:

6.4.1. SPACE Analysis:

- Industry Strength (IS): -2 -Environmental Stability (ES): 5 SPACE Matrix:

| SPACE Factors | Weight | Rating | Weighted Score |

|------------------------------|--------|--------|----------------|

| Financial Strength (FS) | 0.10 | | |

| Competitive Advantage (CA) | 0.15 | | |

| Industry Strength (IS) | 0.10 | | |

| Environmental Stability (ES) | 0.05 | | |

| TOTAL | 0.40 | |

6. 5. QSPM (Quantitative Strategic Planning Matrix):

QSPM Matrix:

| Strategies | Weight | Rating | Attractiveness | Priority |

|------------------------------|--------|--------|----------------|----------|

| Improve marketing effectiveness | | | | |

| Enhance operational efficiency | | | | |

| Expand menu variety and innovation | | | | |

| Strengthen sustainability practices | | | |

14 | P a g e
 7. Human Resource Management
7.1. Staffing

Staffing is described as the process of recruiting, retaining and selecting qualified employees
to achieve organizational objectives. Staffing includes the job analysis and job Description &
selection
Key Roles: chef ,kitchen staff, wait staff, , manager .

Manager

• Manager must have problem solving skills

• He must be a far sighted person

• He must be experienced to make business more and more good

Chef

• Chef for healthy fresh and fit food business must have formal culinary training.

• He must have a good understanding of nutrition

• Who can bring creativity and innovation to our menu

Kitchen staff

• They must have understanding of principles of nutrition

• They must have ability to adopt to changing menu, dietary restrictions and customer
preferences
• They must have a desire to create delicious and nutrious meals that promote well being

8. Marketing Plan
8.1 Marketing objectives

8.1.1 Brand awareness

We increased the target market by 30% within the first six months and run a social media
campaign highlighting the uniqueness of our keto salads and sandwiches.

8.1.2 Product promotion

We launched a promotional campaign by offering a discount and special deal for the first
month to encourage trial.

15 | P a g e
 9. Financial Plan

Financial Plan for Fresh N Fit:

To start a healthy food business in university of Gujrat, required the capital amount to
establish it. We prepare the financial plan of Fresh N Fit will help to achieve our financial
goal by managing money, reduced financial stress and make financial decisions. We are
total five members undertake our partnership business with amount:

Financing resources:

All five members decided to make investment in Fresh N Fit business who wanted to help
in its growth and expand:

Business partners Investment amount percentage

Sandal 605670 20%

Rabia 605670 20%

Ali Hassan 605670 20%

Numan 605670 20%

Sufyan 605670 20%

Total 3028350 100%

ASSUMPTION:

SALE OF FINISHED PRODUCT:

16 | P a g e
Item Day Month Year Year2025 Year

2024 2026

Sandwich per unit 57000 1710000 20520000 22572000 24829200

380*150*30

salad 350*150*30 52500 1575000 18900000 20790000 22869000

Total Sale in market 109500 3285000 39420000 43362000 47698200

Sale price in 380 380 380 418 459.8

market(unit*Sandwich)

Sale price in 350 350 350 385 423.5

market(unit*Salad)

Initial cost of our business

Cost of goods sold

Fresh n fit (expenses will occur to run the business such as building on rent, equipment

uses in office and production etc.)

DIRECT COST DAY MONTH YEAR YEAR YEAR

2024 ' 2025 2026

PACKAGING MATERIAL 6500 78000 936000 1029600 1132560

DIRECT ELECTRICITY 2000 24000 288000 316800 348480

17 | P a g e
GAS 1500 18000 216000 237600 261360

KITCHEN SUPPLIES 40000 480000 5760000 6336000 6969600

TOTAL CGS 50000 600000 7200000 7920000 8712000

Landing acquired on rent

Year 2024

ITEM MONTH YEAR 2024 YEAR 2025 YEAR

2026

RENT ON BUILDING 20000 240000 264000 290400

Machinery and equipment required

DESCRIPTION QUANTIT UNIT COST TOTAL COST

FRYERS 1 90000 90000

GRIDDLES 2 72000 144000

CONVENTION OVEN 1 45000 45000

MEAT SLICER 2 30000 60000

COMMERCIAL SINKS 2 21000 42000

TEMPERATURE 2 1500 3000

CONTROLLER

AIR EXCHANGE FANS 2 1000 2000

18 | P a g e
 LED LIGHT 10 700 7000

TOTAL 393000

Office equipment

DESCRIPTION QUANTITY UNIT COST(PKR) TOTAL

COST(PKR)

PREP COUNTERS 3 50000 150000

UPS 1 10000 10000

FANS 6 7000 42000

AIR 2 70000 140000

CONDITIONERS

COMPUTER 2 35000 70000

PRINTER 1 15000 15000

TELEPHONE 2 3000 6000

SETS

WATER 2 20000 40000

DISPENSERS

TOTAL 473000

Office furniture and fire extinguishers

DESCRIPTION QUANTITY UNIT COST(PKR) TOTAL COST(PKR)

19 | P a g e
 VISITORS 20 8000 160000

CHAIRS

AND

TABLES
TABLE AND 4 15000 60000

CHAIRS FOR

ADMIN, STAFF

FIRE 1 5000 5000

ETINGUISHERS

TOTAL 225000

Raw material

DESCRIPTION YEAR 2024 YEAR YEAR 2026

2025

RAW MEAT 200000 220000 242000

VEGETABLES 1000000 1100000 1210000

GRAINS 85000 93500 102850

NUTS 95000 104500 114950

DAIRY 970000 1067000 1173700

FUNGI 450000 495000 544500

TOTAL 2800000 3080000 3388000

20 | P a g e
 Salaries and wages

CEO 60000 1 60000 12 720000 792000 871200

MANAGER 50000 1 50000 12 600000 660000 726000

EMPLOYEE 40000 2 80000 12 960000 105600 116160

0 0

SWEEPER 23000 1 23000 12 276000 303600 333960

SECURITY 30000 1 30000 12 360000 396000 435600

GUARD

INDIRECT 0 0

LABOR

PRODUCTIO 40000 5 200000 12 240000 264000 290400

N WORKERS
0 0 0

DELIVERY 20000 2 40000 12 480000 528000 580800

WORKER

TOTAL 13 483000 516000 567600 624360

0 0 0

Marketing expense

Description year Annually

Advertising expense 2024 45000

21 | P a g e
 Advertising expense 2025 50000

Advertising expense 2026 55000

Total 150000

Office and administration expense

DESCRIPTION QUANTITY UNIT MONTHLY YEAR YEAR YEAR

COST 2024 2025 2026

PAPER 2 1500 3000 36000 37800 39690

BUNDLE

PEN 25 20 500 6000 6300 6615

JOURNAL 1 800 800 9600 10080 10584

BOOK

STAPLER 2 1000 2000 24000 25200 26460

AND

PINS
CALCULATOR 1 800 1600 19200 20160 21168

STAMPS 2 350 700 8400 8820 9261

GUM STICKS 3 70 210 2520 2646 2778.3

TISSUE 10 150 1500 18000 18900 19845

TOTAL 10310 123720 129906 136401.3

22 | P a g e
 Depreciation

Description Value Rate Depreciation

Year 2024 Year 2025 Year

2026

Machinery and 393000 15% 58950 58950 58950

equipment

Office equipment 473000 15% 70950 70950 70950

Office furniture 225000 10% 22500 22500 22500

and fire
extinguisher

total 163650 163650 163650

(by using straight line method)

Initial financial needs

AMOUNT
DESCRIPTION
(PKR)

BUILDING RENT 240000

MACHINERY & EQUIPMENT 393000

23 | P a g e
 OFFICE EQUIPMENT 473000

OFFICE FURNITURE AND FIRE EXTINGUISHERS 225000

ADVERTISEMENT 150000

OFFICE AND ADMINISTRATIVE EXP 123720

OTHER EXP 91280

UTILITIES 504000

TOTAL CAPITAL COST 2200000

WORKING CAPITAL REQUIREMENT -

RAW MATERIAL INVENTORY 2800000

CASH 500000

TOTAL WORKING CAPITAL 3300000

TOTAL INVESTMENT 5500000

Projected income statement

DESCRIPTION YEAR YEAR YEAR

2024 2025 2026

SALES REVENUE 39420000 43362000 47698200

CGS 7200000 7920000 8712000

24 | P a g e
GROSS PROFIT 32220000 35442000 38986200

BUILDING RENT 240000 264000 290400

ADVERTISEMENT 45000 50000 55000

DEPRECIATION 2773425 2773425 2773425

EXPENSES

ADMINISTRATION 123720 129906 136401.3

EXPENSES

OTHER EXPENSES 91280 95844 100636.2

SALARIES 5160000 5676000 6243600

UTILITIES OF OFFICE 504000 554400 609840

SUBTOTAL 8937425 9543575 10209303

EBIT 23282575 25898425 28776898

INTEREST EXPENSE -- -- --

EBT 23282575 25898425 28776898

TAX 20% 4656515 5179685 5755380

NET PROFIT 18626060 20718740 23021518

25 | P a g e
 Cash flow statement

DESCRIPTION YEAR YEAR YEAR

2024 2025 2026

CASH FLOW FROM OPERATING

ACTIVITIES

EBIT 23282575 25898425 28776898

ADJUST FOR DEPRECIATION 2773425 2773425 2773425

EXPENSE

Balance sheet

Current assets

Cash in hand 500000 550000 605000

Raw material 2800000 3080000 3388000

Total current assets 3300000 3630000 3993000

Fixed assets

26 | P a g e
Machinery equipment 393000 432300 475530

Office furniture and 225000

extinguishers 247500 272250

Office equipment 473000 520300 572330

Less accumulated dep 163650 163650 163650

Total fix assets 927350 1036450 1156460

TOTAL ASSETS 4227350 4666450 5149460

Liability +owner equity

Current liability

Accrued expense 1199000 1318900 1450790

Total current liability 1199000 1318900 1450790

Long term liability 0 0 0

Loan 0 0 0

Total liability 1199000 1318900 1450790

Owners’ equity 3028350 3347550 3698670

Total liability +Owner equity 4227350 4666450 5149460

Ratio Analysis

27 | P a g e
 ratios Formul 2024 2025 2026

Profitability
ratios

Gross profit Gross 32220000/3942000 35442000/4336200 38986200/4769820

ratio profit/net
sale 0 0 0

=0.81 =0.82 =0.81

Net profit Net 18626060/ 20718740/4336200 23021518/4769820

ratio profit/net
sales 39420000 0 0

=0.47 =0.48 =0.49

Return on Net 18626060/4227350 20718740/4666450 23021518/5149460

assets ratio profit/tota
l assets
=4.4 =4.43 =4.47

Operating Operating 23282575/3942000 25898425/4336200 28776898/4769820

profit/net
profit ratio sales 0 0 0

=0.59 =0.60 =0.60

Asset

managemen

t ratio

28 | P a g e
 Fixed asset CGS/total 7200000/927350 7920000/1036450 8712000/1156460
turnover ratio fixed asset
=7.76 =7.64 =7.53

Asset CGS/total 7200000/4227350 7920000/4666450 8712000/5149460

turnover ratio asset
=1.70 =1.69 =1.69

10. Risk Management

10.1 Management risk

Risk

Our risk is relying heavily on a few key individuals for management or culinary
expertise.

Mitigation

Cross-trained employees, established clear processes, and created contingency

plans for key personnel changes.

10.2 Operational risk

Supply Chain Disruptions

Risk

Issues with the supply of fresh ingredients, leading to production delays or

quality issues.

29 | P a g e
Mitigation

Diversified suppliers, managed good relationships, and has backup suppliers for
critical ingredients .

30 | P a g e