Business Plan 1.docx

(CUP OF EVERY MEETINGS) TEA BUSINESS PROPOSAL BY-THE DREAM BUILDERS Executive Summary CITEAZEN is a new tea room in park street,kolkata. CITEAZEN is a Limited Liability Corporation, managed by its owners, Subhankar Bhattacharjee and Saurav Chatterjee. Subhankar Bhattacharjee has five years of experience managing a successful boutique coffeehouse in Kolkata. His love and knowledge of teas will make the transition to owning and running a teahouse a natural step. Saurav Chatterjee has 3 years of training as an herbalist and worked for 4 years as a tea tender in Darjeeling. He is currently training to be a nutritionist; his knowledge of the health benefits of tea will help our marketing and sales efforts. Company Summary CITEAZEN is a start-up business located in Park Street, Kolkata.Area(150Sq.ft200Sq.ft) Our primary focus will be on the over 16 kinds of tea we offer, including black teas, green teas, herbal teas, and different flavors of Iced teas.We will serve our teas hot and iced. Company Ownership The partners Subhankar and Saurav, each will control 50% of the business.The owners are investing 20 lakhs each in the business. Subhankar Bhattacharjee will handel the Internal Factors of the business(Managing the entire internal work force like controlling the staffs and handling the customers and business) Sourav Chatterjee will handel the External Factors of the business(Promoting our shop ,Marketing, Identifying Competitors,Identifying Potential Customers,Buying of raw materials from the suppliers)

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Start-up Summary Equipment and Inventory will make up 75% of start-up requirements. Leasehold improvements and general expenses comprise the remaining 25%. The owners are contributing 20 lakhs each of investment to the business. We need a total of 60 lakhs,as our startup capital; we plan to add two more investors who will invest in our business and after the success of our business and after earning the profits we will distribute the profits among the owners and the investors.(40:40:10:10)

Planning 1.The very first step of our planning is to choose a perfect location in the Park Street of Kolkata,where the local recidence as well as the tourist can easily see our teahouse and the tea lovers for example:students,employees,tourists,etc should come regularly or once in a week to drink a cup of tea and enjoy our excellent service. We have choosen that area because the demand for tea is quite high on that locality. 2.Future Goals-(a)Build New Outlets,(b)Create Brand Image(c),Profit Maximization,(d)Our aim is to serve the best quality and most interesting varieties of teas and accompaniments at all times to everyone,(e)We strive to treat our customers respectfully as our guest and we intended to offer our guest service that is prompt,friendly and relaxed.(f)Hand Blended Products. 3.Objectives-(a)Creating a better touch point for brands to connect with our customers.(b)To provide healthy and quality tea to the customers.(c) (a).In Kolkata, our potential clients is divided between local residents and tourists.We expect to easily generate sales to existing committed tea drinkers, who will immediately recognize the quality of our products and services. . Sales to tourists depend on a highly-visible location, and promotional efforts in cooperation with other local businesses. 4.We expect our well-researched and conservative sales forecasts project sales over 1.2 crore in the first year, with continued moderate increases through year 3. We project a net profit in the first year of over minimum 10-25 lakhs, with steadily increasing net worth for the foreseeable future. 2

5.The owners are investing 10 lakhs rupees each of their own money into the business.Our Startup Capital will be 60 lakhs from which 20 lakhs will be invested by the owners itself and the rest will be taken from Abhirup Saha And MD.Kajal Ahmed(investors of our business) who will invest in our new tea business.Abhirup will invest 20 lakhs and MD.Kajal will also invest the same amount which is 20 lakhs. 6.Gross Margin of 65% or more and net profit above 10% of sales. 7.Strong hold in the market from the time of introduction and eliminating substitude demand. 8.(a) Mission:Our goal is to provide the finest premium teas to residents and the tourists of the Kolkata in a relaxed and fun atmosphere. Part of our mission is to educate our customers about tea. (b)Vision:The vision of our tea shop is delivering happiness to our customers and we looks forward and creates a mental image of the ideal state that we wishes to achieve. 9.Brand Name-Our Brand Name Will be CITEAZEN Tea House.We have given this name because we want to serve better tea to the tea lovers of Kolkata as well as to the tourists. 10.Tagline-CITEAZEN(Cup of Every Meeting) 11.Logo-Our (CITEAZEN Tea House) Logo

12.Marketing Mix-: Product-Our main Product is tea.There are various kinds of teas we will serve which will includes Assam,Darjeeling,herbal and iced teas.Apart from this we will

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serve various types of beverage also like Pastries,Baked Cookies,Veg Samosa,Nachos,Egg Wrap,and Garlic Bread. Price-:

Types of Teas Assam

Darjeeling

Harbal

Iced

Side Food Items

VARIETY

Rate(@)

(a)Hot Regular(Orthodox and CTC) (b)Black(Orthodox and CTCCruch,Tear and Curl)

(a)59 (b)69

(a)Black (b)Oolong (c)Green Tea (d)White tea

(a)59 (b)79 (c)99 (d)99

(a)Lemongrass (b)Ginger (c)Peppermint (d)Hibiscus Flower

(a)149 (b)129 (c)119 (d)159

(a)Lime Iced (b)Peach (c)Chocolate (d)Watermelon Iced (e)Apple-Mint (f)Blended Iced Jasmine

(a)199 (b)159 (c)219 (d)269 (e)249 (f)259

(a)Veg Samosa(2pieces) (b)Garlic Bread (c)Egg Wrape (d)Nachos Masala Cheese Chips (e)Baked Cookies (f)Pastries

(a)67 (b)78 (c)81 (d)51 (e)15 (f)41

Place- The location we have chosen contains an additional area we can annex for extra seating if and when it becomes necessary, for a small additional rental charge.We have choosen the area of Park Street,Kolkata because the demand for tea and the tea lovers are very high on that locality for example,Students,Employees,Tourists,Local residents specially women.

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Promotion-For our Shop’s promotion we will apply two promotional tools for example,(a)Advertisements-We will give advertisement in the newspaper,Magazines,and in social media by creating our own page to promote our shop as well as our product also.And,(b)Sales Promotion-It will includes Discounted Prices,Coupons,Free Gifts,Buy one Get one Free,Rewards Points Card,Combos,Wi-fi Facilities,Seasonal and Holiday Drink specials. Organizing: 1. According to business organization needs(Budgeting): Long-term Assets: Refrigerated Chocolate Case: Rs.50000 Tea Racks: Rs.20000 Coffee Maker: Rs. 15000 Hot Water and Steam machine: Rs.50000 Dishwasher: Rs.30000 Cash Counter(Computer’s) Rs.45000 Other Hardware & Appliances: Rs.30000 Furniture and Table: Rs.400000 Short-term Assets: Coffee Grinder: Rs.20000 Iced Tea Shakers: Rs.15000 Expensed Supplies: Rs.50000 Napkins,Stirrers,cleaning supplies,tea-balls,tasting cups Rs.20000 Chulha: Rs.2500 Tea Cups,Plates,Spoons,and other hardwares Rs.30000 TOTAL Rs.7,77,500 Others Expences Gas Cylinder:3 cyl per monthMilk-1,395 LTR per month Suger-300kg per month Rent of our shop Advertising and Promoting Decoration and Paintings Total

Rs.3900 Rs.72,540(52 per litre) Rs.15000(50 per kg) Rs.15000(per month) Rs.5000 Rs.16000 Rs.1,27,440

2.Procurement of Raw Materials or Sources of Raw Materials: 5

TEA-:We will gather Assam Tea from Powoi Tea Industry,Eastern Agroplanters(Guwahati) and Darjeeling tea from Himalayan leaf pvt ltd(gurgaon),UGP Ventures(Siliguri). Other Raw Materials:-We will buy other raw materials from the Local Markets of Kolkata. Directing          

Experienced Owners/Managers- Subhankar and Saurav have some years of experience in this and related industries. Percentage of Share-Both the owners will give and get 40% share of the business. Investors:We have two external investors Abhirup Saha and MD.Kajal Ahmed.Both of them are investing 10% each on our business. To obtain a approximately of 200 regular(Per Day) customers in the Park Street market the first year of operation. We will direct our business so that we can achieve the first year sales of .8 crore -1.2 crore. Maintain an average gross margin of 58 percent(58%). To produce a reasonable net profit by the end of the 3rd year of operation. To operate a successful tea store in Park Street,Kolkata, employing 5 to 8 employees in the first year. By satisfying our customers. By providing our customer’s 5 star hospitality service.

Communicating External1. We listen actively to our customers. 2. We don't interrupt when talking to the customers. 3. We use easy-to-understand words while talking with customers, not industry terms. 4. We will use professional wording, not texting terms when communicating electronically. 5. We only use positive, not negative statements. 6. We will be aware of words or phrases that can lead to a defensive reaction when taking with customers. 6

7. We will take valuable feedbacks from the customer’s to know about their experience and to serve better in the future. 8.Keep in touch with our Customer’sKeeping in touch with our customers indicates that we care about them and value their business. We will send regular notes or emails about new products and services that we offer. Internal 1.We will always keep good bounding with our employees. 2.We will provide good incentives to our employees. 3.Weekly meetings with our employees. 4. We will promise to make payments on time to our suppliers as well as to ours employees and that will indicates a well-organized business.

Promotion-For our Shop’s promotion we will apply two promotional tools for example,(a)Advertisements-We will give advertisement in the newspaper,Magazines,and in social media by creating our own page to promote our shop as well as our product also.And,(b)Sales Promotion-It will includes Discounted Prices,Coupons,Free Gifts,Buy one Get one Free,Rewards Points Card,Combos,Wi-fi Facilities,Seasonal and Holiday Drink specials

Controlling 1. Salary Planning-We will need Two Cooks,Two Staffs,One Guard,and Three Waiters.We have decide that the salary distribution will be for the Two Cooks Rs.10000(each),Two Staffs who will be sitting on the counter to receive the order of customer’s and collect payments Rs.8000(each),Three Waiter Rs.5000(each),and Guard Rs.2500. 2.We Keep ourself and our employees motivated:

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We will always keep ourself and also our employees motivated. It helps us to improves efficiency and which will shows our customers that we and our team are well- organized.We will always give our employees reward who will do their work properly and who will bring more profits to the business.By this technique we will always keep motivate our employees ,so as to keep their morale high. 2. Excellent Customer Service- Each customer will be treated as would an honored guest in our homes. 3. Broad cross-seasonal offerings- In addition to hot teas, we will also offer iced teas and Harbal teas. Products and Services CITEAZEN will specialize in premium teas.Our full "teahouse" experience is complemented by an assortment of teas, tea accessories, all suitable as souvenirs and gifts for our tourist customers. Our goal is to be a destination store for visitors, new experiences, and knowledge of tea. 16 kinds of tea Our tea-tenders will know the best brewing temperature and time for each of the 16 kinds of teas we offer. These include Assam Teas,Darjeeling Teas,Harbal Teas,Iced Teas. We will also offer a range of green teas, which are becoming more popular.CITEAZEN Teahouse's no-caffeine herbal infusions range from flavored rooibus to fruit blends and medicinal brews.All of these teas are available hot,iced for customers. Sales Strategy Because CITEAZEN Teahouse is a new entity, we understand that we will have to prove our Tea House worth to upscale tea buyers in order to earn their respect and business. Our Sales Forecast depends on establishing a loyal customer base who visits our teahouse at least once in a week or month; we expect a few committed tea drinking "regulars" who will come in more than once a week. In order to achieve this kind of repeat business, every customer, whether on the first visit or their hundredth, will be treated graciously and with respect.

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Part of our mission is to educate our customers about tea; however, this must only be done in a respectful fashion. Our knowledge is a resource, and must never be used to make a customer feel uncomfortable or ignorant. Sales Forecast We expect sales to start off conservatively and increase extensively during the Christmas, Valentine's Day, Easter and Mother's Day holidays,Durga puja’s and other festive seasons. CITEAZEN teahouse expects average sales of just over minimum 10 lakhs per month for the first year, as we build name recognition and status in the community. In the second and third year we look to see increased sales of roughly 10%-20% per year, as we gain a larger percentage of the market share and increase our customer base. Financial Plan Our Financial Plan is based on sound research into similar businesses in similar communities, and cost estimates obtained for equipment, rent, and other operating expenses. As an owner-operated business, we have some leeway in adjusting our own compensation if sales are low in a given month, but our forecasts are conservative. Our top financial priorities in the first three years are repaying our long-term loan, paying our employees fairly, covering our expenses on time, and generating a modest profit. We are opening this shop because we love tea, we love tea drinkers, and we will enjoy all the hard work we must do to maintain the business. We do not expect to get rich doing this, but we do anticipate steadily increasing profits and net worth as CITEAZEN Teahouse becomes well-known and establishes a loyal clientele. Marketing expenses are budgeted at approximately 3%-5% of total sales. Company expansion, while not a necessity, will be an option if sales projections are met and/or exceeded. Important Assumptions   

A continued gradual increase in the population and socio-economic class of the Park Street area. Continued tourist interest in our area. Increasing consumer interest in tea 9

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