Thursday, January 14, 2016

GROUP#3

Wafflicio
us
BUSINESS PROJECT
Business Plan and Cash Flow Forecast
Group# 3

Thursday, January 14, 2016

GROUP#3

Business Plan for Wafflicious

Business
name:

Wafflicious

Type of
organization

Partnership of 10 people

Business Aim

To fulfill the want of students and teachers

by providing them with freshly made
waffles, along with toppings of their choice.

Product

Freshly-made customized Waffles

Fixed cost:
Rs. 2000 [rent]

Variable Costs:
Betty Croker Waffles Batter- Rs. 3150
Business Costs
[7*240]
Suleiman Chocolate Syrup Sprinkles Ice cream Maple Syrup-

Price

Total cost = 5000

Cost per waffle = Rs. 83
Pricing Strategy used : cost plus pricing
PRICE= COST PER PRODUCT + PROFIT
MARK-UP
=83 + [44/100*83]
=83 + 66
=149 ~ 150
2

Thursday, January 14, 2016

GROUP#3

*premium will have a profit markup of 66%

as more value will be added to it. Thus
making its sale price
Rs. 225.
150 - COMBO
250- PREMIUM
**the value added to combo is [150 83] =
67
the value added to premium is [250 83]
= 167

Target Market

Students and Teachers at the carnival on

22nd January 2016, Friday.

Market
Research
undertaken
and results

150 Students were asked to fill out

questionnaires. A detailed quest

Human
Resource Plan

10 group members. Each assigned a specific

task that they are best at (Division of Labor
has been practiced).

Business
Equity

Every member has equally contributed to

the business.
600 invested by each member * 10 members
= 6000

Production
Details

Batter and toppings bought from the

market. Estimated costs incurred are 4000.

Location

Would be decided by the school

authorities

Thursday, January 14, 2016

Main
Equipment
Required

GROUP#3

Waffle Maker (available)

Predicted Revenue: (150*40 + 250*20)

= Rs.11000
Total Costs = Fixed costs + Variable costs
=2000 +4000
= Rs. 6000
Forecast Profit
Forecast Profit: Revenue total
costs
=11000
6000
= Rs. 5000
Initially cash flow will be Negative as
variable costs will incur the batter and
toppings. However as the service will be
provided and revenue earned, cash flow will
Cash Flow
become positive.
A detailed cash flow forecast is provided
after the business plan.
10% profit will be shared with the school
authorities.
10/100*5000 = Rs. 500
The remaining profit will be equally shared
Profit Sharing
amongst the partners.
[5000-500] / 10
4500 / 10
Rs. 450 profit for each partner

Thursday, January 14, 2016

GROUP#3

Cash Flow
Forecast
A cash flow forecast is an estimate of future
cash inflows* and outflows** of a business,
usually on a month-by-month basis. This then
shows the expected cash balance at the end
of each month.

Cash Inflows
Cash Outflows
Opening Balance1.
Net Cash Flow2. [Inflows
Outflows]
Closing Balance3.

11000
6000
6000
5000
11000
5

Thursday, January 14, 2016

GROUP#3

* Cash inflows refer to the sums of cash that that is received

by a business during a period of time.
** Cash outflows are the sums of money paid out by a
business during a period of time
1. Opening balance is the amount of cash held by the
business at the start of the month
2. Net cash flow is the difference between the inflows and
outflows.
3. Closing balance is the amount of cash held by the business
at the end of each month. This becomes the next months
opening balance.

Thursday, January 14, 2016

GROUP#3