Description of Venture

Table of Contents DESCRIPTION OF VENTURE ........................................................................................................... 3 The Business ....................................................................................................................................... 3 Startup Summary ................................................................................................................................. 3 Meal Periods ....................................................................................................................................... 4 Mission of the Venture ........................................................................................................................ 4 Critical Success Factors ....................................................................................................................... 4 Products/Services ................................................................................................................................ 5 Layout ................................................................................................................................................. 5 Employees ........................................................................................................................................... 5 INDUSTRY ANALYSIS ....................................................................................................................... 6 Future of the Industry .......................................................................................................................... 7 MARKETING & SALES ...................................................................................................................... 8 The Market .......................................................................................................................................... 8 Market Trends and the Future .............................................................................................................. 8 Market Research.................................................................................................................................. 9 Sales Forecasts .................................................................................................................................. 10 MARKETING OBJECTIVES AND GOALS .................................................................................... 11 Competition and Competitive Strategy............................................................................................... 11 Pricing............................................................................................................................................... 12 Menu................................................................................................................................................. 12 Promotion.......................................................................................................................................... 13 Institute Of Business Management 1 OPERATIONAL PLAN ...................................................................................................................... 14 Restaurant Equipment........................................................................................................................ 14 Equipment needs ............................................................................................................................... 14 Layout ............................................................................................................................................... 14 Hours of Operations........................................................................................................................... 15 PRODUCTION PLAN ........................................................................................................................ 16 Modular design.................................................................................................................................. 16 Production Staff................................................................................................................................. 16 RISK ASSESSMENT .......................................................................................................................... 17 External risks..................................................................................................................................... 17 Internal risks...................................................................................................................................... 18 Evaluation of management team .................................................................................................... 18 Marketing.......................................................................................................................................... 19 Financial Risk.................................................................................................................................... 19 Production & Operations ................................................................................................................... 19 Exit Strategy...................................................................................................................................... 20 FINANCIAL PLAN............................................................................................................................. 21 CONCLUSION.................................................................................................................................... 24 Institute Of Business Management 2 DESCRIPTION OF VENTURE The Business “The Hooligans” is a sports theme based restaurant looking to attract the increasing number of people who love various sports. It will cater to the burgeoning upper middle class and sports enthusiasts especially of football and shorter versions of cricket (Twenty20). This is an unexplored market since the majority of the cafes in Pakistan are either unaffordable or they do not provide an adequate facility where friends can hang out and enjoy their favorite sports action . The idea of a theme restaurant was proposed by one of the group members and later all four group members agreed to work on it as their business venture focusing on specific segments of the business. The restaurant is slated to start up its operations in the 2 nd half of this year. The restaurant will start out as a LLC corporation, owned by its founders which are the 34 students of the class, and we are looking for a restaurant space of approximately 2,000 sq. ft. in Zamzama commercial area, Defence. Startup Summary This area is easily accessible, and public transportation is also available to get to this place. There are no parking and street lighting issues either. The management is seeking around Rs.4,802,700 from SME Bank @ a markup of KIBOR + 4% and Rs.205,8300 from investors to provide seed capital for the company. The start-up costs come to Rs.6,861,000 which is mostly expensed equipment, furniture, memorabilia, reconstruction, rent, start-up labor, licenses, operating cash, and legal and consulting costs associated with opening the restaurant. All equipments are purchased, not leased, in order to gain tax savings due to depreciation, and the management has enough cash to do so, and the tax calculations are done at the corporate tax rate of 35%. These are the start-up requirements to the best of the knowledge of the management team and experience in the industry, which is not appropriate, as no one in the team has sufficient knowledge regarding the Institute Of Business Management 3 operations of a restaurant, which may pose as a serious threat to the credibility of the management team. A suitable site for the first restaurant was found last month and lease negotiations will take place in the future. When the lease is signed there will be three months of free rent for construction and in that time the balance of the start-up funds must be raised. With that phase completed, the restaurant can then open and the operations phase of the project can begin. The restaurant will have posters and memorabilia from some of the sport‟s most notable players. Meal Periods Lunch: 12:00 p.m. – 3p.m Dinner 6p.m. – 12a.m Mission of the Venture      Be recognized for our service par excellence, our exceptional food and amazing drinks. Conduct all our relationships with an emphasis on long term mutual success. To be a place of choice for dining for all sports enthusiasts To be instrumental in spreading the love for sports in our community and to encourage an active and healthy lifestyle. To a place where people can come and talk about as well as enjoy matches of popular sports, not just football Critical Success Factors  The creation of a unique and innovative fine dining atmosphere will differentiate us from the competition. The restaurant will stand out from the other restaurants in the area because of the unique theme, design and decor. It will offer a fine dining experience in a cozy atmosphere.   Product quality. Not only great food but great service and atmosphere. The menu will appeal to a wide and varied audience. Institute Of Business Management 4  Controlling costs at all times without exception. Products/Services The business will focus on establishing a sports theme restaurant where people can enjoy their favorite sports on the large screen TV, or just talk about it with friends while enjoying our tasty food and drinks. Cafes and other expensive eatery outlets seem to be the in-thing these days with the young and rich people these days. When deciding on which place to eat at, these people usually consider the quality, price, perhaps décor and style. Often, new places are tried just because they offer something different. We aim to capitalize on this and see the sports theme as our unique selling proposition. Layout To accommodate the different groups of customers, we will use tables for four that can be pushed together in areas where there is ample floor space. This gives us flexibility in accommodating both small and large parties. Booths for four to six people will be placed along the walls, and ample space would be reserved for receiving, storage, food preparation, cooking, baking, dishwashing, production aisles, trash storage purposes, as well as designated areas for employee facilities and an area for a small office where the staff can perform daily management duties Employees The labor component of the project will be handled through advertising in a nationwide newspaper of good standard tentatively which is expected to be Jang and Dawn. The management will be looking for a combination of individuals with past experience, excellent manners, a satisfactory level of language capability and enthusiasm. Since the management will be offering above average wages we expect to attract the crème of the workforce and hope for low employee turnover. Appendix can be referred to for salary structure and expenses. Institute Of Business Management 5 INDUSTRY ANALYSIS The economy of Pakistan has been performing very well in recent years, consumer spending has remained buoyant and investors remained upbeat on the strength and sustainability of the current growth momentum, despite higher energy prices and natural calamities. The growth momentum that Pakistan has sustained for the last four years is underpinned by dynamism in industry, agriculture and services. Such increases in real per capita income have led to a sharp increase in consumer spending during the last three years. The number of restaurants in the organized sector in Pakistan is expected to rapidly increase as a result of the changes in demographic and economic factors which are having a significant impact on the restaurant industry in Pakistan. Increasing urbanization and rising disposable incomes are other factors which show greater promise for the services sector. The trend of eating out has significantly increased in recent years and it has evolved into a popular culture. Restaurant owners and operators are working to understand and respond to the preferences and expectations of Generation X and the Millennial Generation. Doing so requires that restaurateurs re-think their menu offerings, procurement patterns, technology, training, service, and marketing. A restaurant will only be successful if it is able to cater to the huge, unique market of young consumers which makes up about 30% of the total population. Market conditions in the area have a significant impact on the profitability of a restaurant. In this case, the future outlook remains positive as long as the market needs are met and menus are affordable. In terms of culinary trends, there is the popularity of health foods, use of fresh and authentic ingredients, expansion of quick service, acceptance of new fusion concepts, restaurants with a focus on entertainment, and ethnic and regional cuisine restaurants and establishing of the chef entrepreneur. Many multi national chains have adapted their recipes to the taste buds of Pakistani consumers and made their offerings spicier. Institute Of Business Management 6 Future of the Industry The Pakistani economy is becoming increasingly service-oriented, and over the past several decades, the foodservice industries that offer the highest levels of convenience have been rewarded with strong sales growth. In the face of rising population, incomes and increasingly hectic work schedules, a nearly insatiable demand for convenience will continue to drive restaurant sales. The value of consumer time, as well as the demand for consistent, high-quality food products, will continue to shape the food industry. The role of convenience in this dietary shift cannot be over-emphasized, and the future growth of the rest of the foodservice industry will be driven in large part by its ability to find new ways to save consumers‟ time. Institute Of Business Management 7 MARKETING & SALES The Market The target market for Hooligans is essentially football fans, belonging to the upper middle and higher income classes. The target age group is between 17 and 35 years. It is located in an area that attracts most of their evenings out. Our customer base will come from the following segments:     Football fans belonging to higher income groups from all over the city Students (16 to 24 years) Tourists Offices in the vicinity The concept and product image of Hooligans will attract 3 different customer profiles:    Those football enthusiasts who want to share their passion Those who want to do more than just eat out The curious and the young at heart Market Trends and the Future The fast food market is growing rapidly in Karachi with the changing lifestyles of not just the elite but a cross section of society. The growth in expenditure on fast food has been tremendous and will continue as the demand for convenient meals is ever growing, which is seen in the mushrooming of restaurants catering to all income groups.. The per capita income has grown at a phenomenal rate and has reached $925 from $724 in a matter of two years. The expanding purchasing power of the growing middle class in Karachi has allowed them to spend an increasing amount on leisure activities. The population dynamics also favour our idea, given that the proportion of people in our target age group i.e. the youth is expected to increase in proportion over the next decade. The rapid increase in employment rates for both Institute Of Business Management 8 males and females in the age group 20-29 also support our assumptions about increasing customer base each year (SMEDA). Market Research Two focus groups were conducted. One comprised college and university students between the ages 18-23 and another one comprised of housewives, working men and women and young teachers. The results showed that most respondents wanted not just a place to eat out but a place that offered other activities to engage them. Males were more excited about the concept than females. Affordability appeared to be a major concern for respondents. We conducted a survey by administering questionnaires to 10 people (6 males, 4 females) between the ages 18 and 30. A convenient sample was taken from the target population. The survey findings are given and they form the basis of our product and pricing strategies. Observation of decor, capacity, menu etc at various restaurants also formed part of market research, as well as informal interviews with customers and the guards to obtain rough estimates of number of customers visiting etc. Institute Of Business Management 9 Sales Forecasts Number of Customers Year 1 Weekdays Weekends Weekly 200 200 1400 Year 2 240 240 1680 Year 3 288 288 2016 Year 1 Quarter 1 Quarter 2 Quarter 3 Quarter 4 20160 16800 20160 16800 Year 2 24192 20160 24192 20160 Year 3 29030.4 24192 29030.4 24192 Total Customers 73920 88704 106444.8 Average Expenditure 400 428 457.96 Institute Of Business Management 10 MARKETING OBJECTIVES AND GOALS Our marketing strategy, based upon our analysis of the strengths, weaknesses, opportunities and threats for Hooligans! is designed to meet the following objectives:      Offer an innovative product in a familiar style at a competitive price. To be the most exciting hangout for fun loving young people. Focus on operational excellence To be the customers‟ first choice when it comes to spending an evening out To increase our customer base by 20 percent by the Football World Cup in June 2010. Competition and Competitive Strategy The idea of a restaurant entirely dedicated to sport viewing is a new concept in this city. Thus we have no direct competitors in terms of the exact experience offered. However there are many restaurants that do arrange viewings of major sporting events and popular matches such as the T20 Cricket World Cup or the Football World Cup. These and other themed restaurants are the ones we will view as our primary competitors e.g. Café Coffee Day, Café Zouk, etc. Secondary competitors will be restaurants that are alternatives for eating out for our target market e.g. Roasters, Espresso, etc. There are over 20 restaurants on Zamazama with at least 20 others in the DHA area. Although this presents an obvious challenge in terms of market share, it also indicates the presence of a large, strong potential. The newest competitors have made their successful entry based on an innovative concept or novelty. Capitalizing on an increasingly popular global trend of theme restaurants, Hooligans! will offer an innovative product in a familiar style at a competitive price. Institute Of Business Management 11 There are three major ways in which we create a competitive advantage:    Innovative concept making us the only one of its kind restaurant in Karachi Quality product at lower prices Other activities to engage the customer by allowing customers an experience that entails much more than food. Pricing The pricing strategy was prepared keeping in mind the high initial investment, competition and the target market. A number of restaurants that cater to similar target markets were visited in order to establish comparable prices. Also, prices had to be competitive, yet not so low as to put off the elite crowd Hooligans! Plans to attract which tends to feel that very low prices imply lower quality food. Moreover, the plan is to have a minimal cover charge as well, say Rs. 100. This is the amount charged in order to enter the restaurant, and may be redeemed for food items. 15% GST is included in these prices, so there are no "hidden charges". Menu The menu for Hooligans! has been designed to cater for people of all ages at all hours of the day. The breakfast items have been included since games sometimes take place late at night and last till morning. All the food items (burgers, subs, sandwiches) are easy to pick up and eat while watching television. Some items have also been included to cater to people who may just want to experience the restaurant and not pay full attention to the game being televised. Institute Of Business Management 12 Promotion In the face of increased competition, the most effective strategy is to differentiate our restaurant from the others and create excitement in a way that reinforces our positioning strategy, hence, the Football centred theme for our restaurant-The Hooligans! In order to ensure increases in food and beverages revenue, the marketing team will be employing simple restaurant promotional techniques. There are thousands of possible tactics that can be applied to drive revenues without any reliance on mass media advertising due to our budget restraints initially. Below are some of the proposed strategies for pre launch and later for the day to day promotion of our restaurant, summing up to an amount of Rs. 860,000 approximately. (This figure is only for the first year of launch) Pre-Launch Promotional Activities include “Teaser Advertisements” (Estimated amount allotted: Rs.260,000), a Grand Opening (Estimated amount allotted: Rs. 50,000), an Interuniversity Football competition at Rahat Stadium, Defence (Booking of the stadium and the banners plus the free gifts: Rs. 80,000), and Customer Relations (Estimated amount: Rs.156,400.) After-Launch Promotional Activities include launching a Website (Estimated amount allotted: Nil), doing a Radio Review (Estimated amount allotted: 76,800), having Contests (Estimated amount allotted: Rs.60000), doing Sampling (Estimated amount allotted for transportation and meal preparation: Rs. 120,000), starting Menu Bingo (Estimated amount allotted for printing Bingo cards and free merchandise: Rs. 36,000), and a Birthday Program (Estimated amount allotted: Nil). Institute Of Business Management 13 OPERATIONAL PLAN Restaurant Equipment Proper restaurant equipment is just one of the many components of a successful restaurant operation. Good equipment cuts down energy bill and minimizes delivery times, making your restaurant more efficient, productive and profitable. Refer to the appendix for the detailed analysis of kitchen equipment being procured. Equipment needs The restaurant equipment includes 1. Kitchen equipment 2. Interior decor and multimedia 3. Other equipments like generators, WIFI terminals, Pocket PCs for waiters etc. The cold storage provided by the Kold Kraft engineers will prevent bacterial growth and maximize the shelf life of perishable foods. Preparation equipment such as food processors will accelerate cooking time and save a great deal of labor. The head chef of the restaurant will be consulted before purchasing the kitchen equipment of the restaurant. The kitchen staff and waiters need to be familiarized with the computerized order booking, as all the orders will be communicated directly to the kitchen from the data fed into the Pocket Pc by the waiter, a WIFI system will be installed for this purpose. Layout Layout and design are important factors in the success of the restaurant. The size and layout of the dining room, kitchen and storage space all need to be taken into account in this regard. A typical restaurant would dedicate around 60 to 70 percent of its space to the dining area but for a theme restaurant like “The Hooligans” which would do most of its business based on customer experience, food can be had at most places inside the restaurant. Institute Of Business Management 14 The Hooligans is divided into three main sections:  Basement- It would have all kinds of stuff for the football lovers along with game tables for pool, foosball and other entertaining stuff. A playing field or Astroturf would be installed in the basement where football lovers could come in and enjoy the feel of real football. All services would be charged and there would be a slated number of persons who would be allowed inside the basement area to prevent overcrowding.  Dining Floor- It would house the dining hall where meals would be served during lunch and dinner time. A kitchen would be located adjacent to the dining hall on the ground floor to prevent any hassle and shorten the service time. The dining area which is the ground floor of the restaurant however is specifically reserved for most of the dishes in the main course while snacks could be had at other places.  Match Room- This is the floor where screening of football and other sports matches would take place. During the weekends this floor is expected to witness a lot of visitors coinciding with the Premier League football season in the UK which is followed very closely amongst the target market for our restaurant. During „off-days‟ or when there are no live matches to telecast, past football matches which have become popular such as Champions League finals, World Cup matches etc would be shown to the visitors. Hours of Operations The restaurant would be open 7 days a week from 12pm to 3pm and 6pm to12 midnight. During the peak season for football such as the World Cup or Champions League finals the restaurant operating time may be revised to accommodate for live coverage of these events. Institute Of Business Management 15 PRODUCTION PLAN The production process of The Hooligans! Is the actual preparation of the food items which is the cumulative name given to all the steps from the procurement of raw materials to the stage where the food items are ready to eat. Food production and assembly will be done in the kitchen of our restaurant. The chef will exercise strict standards of sanitation and quality production and presentation or packaging over the kitchen and service staff. Modular design Importance will be given to the use of modular design. Modular design is the name given to a way of production in which identical components of food is prepared and stocked separately and then assembled when needed. This saves considerable time and resources and also reduces order time which is very crucial in the restaurant business. In this case, the modular design would mean that patties, salads, French fries and buns would be prepared and stored separately and then assembled and heated as required. This concept would imply that effective storage facilities would be required that would keep the stuff fresh. Production Staff There will be two dishwashers. The dishwasher will provide clean dishes whenever they are needed and even though his task might sound very insignificant, he is a very vital and integral part of the kitchen staff. The next person is the prep cook. Prep is the short for preparing or preparation. They are responsible for chopping vegetables, cutting beef or peeling onion, etc. they will also be involved in cooking soups and performing other such repetitive chores that do not require much expertise. They therefore prepare the kitchen for the chef to come. The prep will start the process and the line cook will finish it. Thus the prep cook is the root system of the restaurant. They are the unsung heroes of the kitchen. They touch every part of the menu and are aware of the basics of cooking as well. A station is a place in the kitchen where the various cookers, fryers, grills etc are located. The cook assigned to these stations is known as line cooks. There will be three line cooks Institute Of Business Management 16 assigned to the station in this case. Line cooks require more experience than prep cooks and should be assigned to prep cooking first. Next comes the person who is the second in command and known as the sous chef. He is like the executive chef in training but may still train the chefs under him. He is mainly going through training and sometime several sous chefs work in the kitchen. After the sous chef comes the kitchen manager who knows all the technical stuff regarding the kitchen. He is mainly required to keep track of all the kitchen business that has got nothing to do with cooking such as ordering inventory, stocking, keeping the machinery fit and so on. Thus he completely lacks any culinary skills. RISK ASSESSMENT External risks The political situation prevalent and the poor law and order situation in the country can have a big impact on our business‟ long-term future. A single political event of importance can have an adverse impact on the business environment. One way to overcome the problems posed by the political situation is to get the business insured against political risk. Moreover, a change of government may lead to an adverse change in the tax rate or the rules and regulations governing the restaurant business. Economic variables also influence the outcomes of the strategies that we have drawn up. High food inflation, high oil prices, energy and food shortages, and high interest rates also pose a threat to our business. The business is heavily dependent on the correct execution of technology .The high costs associated with maintenance and obsolescence of technology will be a problem. We are targeting the youth population residing in Clifton and DHA, which makes our market limited. Results of our research shows that only males are mainly interested in sports. Presence of sports areas, like Area 51, Royal Rodale, Arena pose a threat to our business. Also, Gunsmoke, Espresso, Roasters etc serve almost the same kind of food that we do. To combat this risk, we need to constantly revise our strategies so that we remain innovators in our field. Institute Of Business Management 17 Internal risks Evaluation of management team The management team is the most important part of any new venture and hence represents a major risk factor. Below we analyze the weaknesses and strengths of our management team and how we can overcome these weaknesses. Strengths Have worked together before so know each other well. Understanding of each other will result in synergistic benefits. 4 year of education at Pakistan‟s premier business school have equipped us with the knowledge to successfully run a venture. Weaknesses Have no prior experience in the restaurant business. May not be able to manage rapid growth due to inadequate experience Consensus and coordination can take a lot of time because 32 people have to agree on one point. This can delay important decisions. All of the management team has strong family support to help them in difficult times Members have good contacts and networks In order to overcome our weaknesses the first step is to gain an in-depth knowledge of the restaurant business via the experiences of other successful restaurateurs. This would compensate for our lack of experience of the management team. The problem of lack of consensus can be resolved through putting rules in place. Firstly, the group leader who represents the group on the Institute Of Business Management 18 board of director will have to reach a two-thirds majority in his/her group. Then based on each the BOD would have to have a two-third majority to implement any decision. Marketing Product: Taste and serving size of food may not appeal to people manual orders taken by waiters in a noisy surrounding may lead to confusion and inefficiency, quality of the matches being aired may falter, the whole product may not appeal to females. Price: Is high considering locality and service. Promotion: A great deal of planning required. High budget of certain advertising plans. Radio sports may be missed by the target audience and have no impact on sales. Anything going wrong in the promotional activities may reflect negatively on the image of the restaurant. Sampling may backfire if customers do not find food up to the mark. Placement: If décor is not trendy and differentiating, it will fail to leave an impact. The seating order and ambience may be uncomfortable and noisy. Financial Risk The business will find it difficult to attract investors to a new venture because the amount of investment we need is huge i.e. Rs.4,802,700.1. In analyzing costs, we find that our cost of goods sold account for 73% of our revenue. Any high rise in inflation will result in deteriorating gross profit, hence active management of supplies needs to be carried out. High amount of current assets indicate excess liquidity hence better cash management is required. The return on assets and equity are negative in the first year of operations. Production & Operations Unreliability of suppliers is a major risk. Research on suppliers of only two hotels has been conducted, which is not a comprehensive assessment. Poorly trained workforce is another big risk. We will need to plan a strategy based on operational innovation in order to avoid operational risk. Institute Of Business Management 19 Exit Strategy The most simple exit strategy would be to convert our theme restaurant into a sports shop like Lords dedicated to selling sort merchandise, and forging alliances with major brands like Nike, Adidas, and Puma, etc. Harvesting is another option that is, selling the business to an employee or an outsider. One of the methods of harvesting is Direct Sale. This is especially common as small businesses are in demand by larger companies, who wish to grow by acquisition. We can also merge with another restaurant to gain synergistic benefits. Institute Of Business Management 20 FINANCIAL PLAN Breakeven Analysis Price Cost 400 320 Fixed Costs 3,644,416 Break Even Customers Break Even Revenue 18222080 45555.2 Institute Of Business Management 21 DCF Valuation Free Cash Flow Year 1 Year 2 Year 3 Net Income Depreciation Change in Working Capital Less: Capital Expenditure Free Cash Flow (151,623.51) 1121660 135749 5761000 (4,655,214.51) 804,065.54 1121660 45497.716 0 1,971,223.25 2,001,162.70 1121660 58545.56734 0 3,181,368.26 Growth Rate Terminal Value 10% 134725893.8 DCF Based Fair Value 94,025,714.60 DCF Value / Partnership Unit 11,753,214.33 Ratio Analysis Current Ratio Quick Ratio Cash Ratio Year 1 9.00 8.92 0.08 Year 2 8.32 8.26 0.30 Year 3 23.32 23.27 0.75 Receivables Turnover Receivable Collection Period Inventory Turnover Inventory Processiing Period Payables Turnover Payables Payment Period 400.00 0.91 1182.72 0.31 100.00 3.65 400.00 0.91 1518.61 0.24 100.00 3.65 400.00 0.91 1949.90 0.19 100.00 3.65 Asset Turnover Fixed Asset Turnover Equity Turnover 5.28 8.10 15.70 7.60 14.29 19.11 4.80 29.82 6.48 Gross Profit Margin EBIT Margin Net Profit Margin 0.27 0.04 0.00 0.26 0.07 0.02 0.25 0.09 0.04 Return on Assets Return on Equity -0.02 -0.07 0.15 0.37 0.18 0.25 LT Debt-Equity Ratio 1.86 1.27 0.18 Institute Of Business Management 22 Income Summary Total Revenue Cost of Goods Sold Gross Profit Sales & Marketing Expenses Security Expenses Salaries Expenses Administrative & Misc. Expenses Rent Expenses Interest Income EBITDA Depreciation Expense EBIT Interest Expense EBT Income Taxes @ 35% Net Income Year 1 32318000 23654400 8663600 Year 2 40990312 30372250 10618062 Year 3 52074961 38997968 13076992 423200 248400 2618000 465520 273240 2879800 512072 300564 3167780 354816 2400000 65556 2553628 1121660 1431968 1665235 -233267 -81643 -151624 455584 2520000 0 4023919 1121660 2902259 1665235 1237024 432958 804066 584970 2646000 0 5865607 1121660 4743947 1665235 3078712 1077549 2001163 Institute Of Business Management 23 CONCLUSION “The Hooligans” is a unique idea and would appeal to sports-loving people. This is an unexplored market since the majority of the cafes in Pakistan are either unaffordable or they do not provide an adequate facility where friends can hang out and enjoy their favorite sports action. According to our financial plan this venture would start generating profits from the second year onwards which is very encouraging as most new ventures take a long time to become profitable. Institute Of Business Management 24