BUSINESS PROJECT FOR ICE CREAM PARLOUR BY SH SATISH KR SHERWAN

​​BUSINESS MODEL FOR ICE CREAME PARLOUR
Introduction;-The summer season is a attractive choice to start a small Ice creame parlour of branded company by way of Franchisee model. as under;-
Sr No     Gist of Issues     Proposed Infrastructure
1              Name of Project:                             Opening of Branded Ice Crèame parlour
2              Objective:                                           Small Business as a New Start-up
3              Name of Brand:                                                Popular Brand in Ice cream
4              Type of Agreement :                      Franchisee Agreement
5              Time:                                                    3 to 5 years
6              Space/premises:                              500sqft to 700sqft
7              Fits out :                                               Shall be provided by the brand
8              Training:                                              10 days training Shall be provided by the brand to promoter or his representative
9              Space/premises:                              May be owned or on rent/lease basis with minimum period of 3 to 5 years matching with agreement period
10           Branded Licence fee:                     Varies from 3.00lacs to Rs5.00lacs
11           Electricity connection:                  Must be ready
12           Business entity:                                               May be proprietor/partnership/pvt limited company
Name of company/firm
                                Name of Promoters;
                                Address;
                                PAN No;
                                ADHAR NO;
                                Date of Birth;
                                Mobile no;
                                Existing Bank account with;
                                Account No:
 
14           COST OF PROJECT
(Rs in Lacs)          MEANS OF FINANCE (Rs in Lacs)
               
                Franchisee licensing fee :                            3.00        Margin/own contribution            5.50
                Furnitures/fixtures:                                       3.00        Bank Loan           10.00*
                Machine:                                                             3.00
                               
                 working capital:                                              5.00                       
                Contingency:                                                     1.50                       
                Total:                                                                    15.50
                Total:                                                                    Loan can be availed by way of Term Loan Rs5.50Lacs
Cash credit:                                                                        Rs4.50 with aggregate amount of Loan Rs10.00Lacs.
                15.50
16           DER:                                                                       1.82:1                   
 ECONOMIC VIABILITY OF PROJECT;-
EXPENSES
                Rent=Rs25000/-
                Electricity=Rs7000/-
                Salary of 2 persons=Rs30000/-
                EMI of Term Loan=Rs12000/-
                Interest on Cash credit=Rs4000/-
                Misc overheads         = Rs10000/-
 
                Total  ;                              =Rs88000/-
                Surplus                             = Rs102000/-
                Grand Total                     = Rs190000/-
 
RETURN ON INVESTMENT ON MONTHLY BASIS=18.50%
Pay back period of licensing fee=6 months
 
 
 
 
 
                Sales =Rs1,90,000/-
                Cost =Rs88000/-
                Contribution=Rs1,02,000/-
                Fixed Expenses=Rs5,50,00/-
                PV Ratio =53.68%
                BEP Level in =Rs1024590/-
                MOS          =Rs1255410/-
Keeping in view the small size of term loan from bank,the financial cost burden by way of interest on business is low hence profitability is booked right from the beginning which can be ploughed back in the business depending on the opportunities available to the entrepreneur.hence the project is technical feasible and economically viable.
 
 
 
                 INCOME
                Sitting capacity in parlour=20
                Occupancy 80%   = 16
                Average Revnue per person=Rs50/-
                Time of sitting of customer=1 hour
                Total hours in a day of opening of shop=10hours
                Proposed Revnue per hours=Rs800/-
                Revnue in a day=Rs8000/-
                Months Revnue=Rs2,00,000/-
                Revnue sharing 5% to brand=Rs10000/-
                Net Revnue =Rs190000/-
AUTHOR: SH SATISH KR SHERWAN, EX DGM, PUNJAB NATIONAL BANK