contoh business proposal

Fr!zZz Café & Book Rental

A. INTRODUCTION

Yogyakarta as a student city attracts many students especially the college students to study there. The development of the city brings a change in the students’ life style. They have other activities besides study in campuses such as hang out with friends. They need a comfortable place to enjoy the togetherness with friends. This makes the cafe business become a profitable business. Therefore, we see that point as an opportunity to build a business on café.

The phenomenon occurred is that a café is not just a place to eat. Many cafes add some extra program to attract the customers such as movie watching, live music, clubbing, etc. We try to offer something different that is completing the café with a rental book.

Our café also wants to strength the café’s image as a place for having fun. In this place, the customers will find that reading can also be a fun activity. The function as a reading place proves that reading habits can be done in anywhere, although just to read comic or novel. Here, the customers will get many kinds of written text such as novel, comic, newspaper, magazine, etc which are provided freely. Besides that, the customers can also bring their own books. The soft music is hoped to make the customers feel comfortable, calm, piece and relaxed after having routine activities.

Based on the reasons above, we will set up the café and book rental in the area around campuses in the center of the students’ living. The strategic location that close the café with the center of the aimed market makes this business will be easier to be known and reached by the customers. We plan to build this café and book rental in Babarsari street 18, Babarsari –near with UPN Veteran and STIE YKPN- which close to students’ boarding houses. We have already had an area of 100 square meters.

This business intends to provide an intake, discussing, relaxing, reading hang out, or chatting place in one comfortable set. Everyone can enjoy some food and drink in the same time they can read any books, novels, comics, or any others light reading by free.

There are many advantages will be obtained by running this Café and Book rental business. The business owner will receive profit from foods and drinks sold. The profit also comes from the rent cost of the books. As the location is strategic and easy to reach, it will maintain the interest of the prospective customers and members to this café and book rental. So that it will increase the profit. Moreover, the customers will get many advantages. They will have a comfortable place to hang out, chat and read, and an opportunity for the college students to have a part time job.

B. SITUATION ANALYSIS

This café is named “Fr!zzz Café and Book Rental”. As the name, the business produces two kinds of products: Goods and services. Foods, beverages, or even snacks will be included in goods product. The services product will be seen in we provide books for rent. The both products will be marketed by traditional business system. It means that the producers try to produce the products independently without conducting an official and bound cooperation in the process of running the business.

The design of the building follows most of the Japanese café’s style that are simple and cozy. Most of the walls are made of glass that the visitors can enjoy the outside view so they will not be bored. One third of the building will be used as book rental. The café and book rental will be set up in the area around campus which is the center of the students’ living. We plan to build this café and book rental in Babarsari –near with UPN Veteran and STIE YKPN- which close to students’ boarding houses. It will be built on an area of 100 square meters.

C. SWOT ANALYSIS

1. Internal Strength

· The place is already available in a strategic location to build and maintain the Café.

· The location is easy to reach. It will increase the prospective customers’ interest to this Café.

· We have something different with another kind café business. It will become customers’ consideration to choose this café as their destination to have pleasant place for get some food or drink.

2. Internal Weakness

· We need more human resources to run this business.

· The workers have not available yet.

· We need an extra fund to run this business.

3. Opportunities

· The market is already available.

· Every one needs food.

· Every one needs an pleasant place to relax their mind.

· Most of people like reading.

4. Threats

· Threat of New Entrants

The threat of other kind business will not so significant because we have something different to offer. If there are other opponents in this kind of business, they will create their own feature to offer and have another market to be decided on.

· Threat of Substitute Product

Threat of substitute product may occur from some restaurants that provide food as common. As a loyal customer, they will not be influenced.

· Bargaining Power of Buyer

Bargaining power of buyers will not have serious influent in case of fix on the price. However, they may convey their suggestion to this café about the menu, music, or something else, to make it more comfortable and satisfying.

· Bargaining Power of Supplier

Bargaining power of suppliers does not have any significant influent because the supplies we need to be the resources are easy to be found in any places.

D. COMPANY DESCRIPTION

This café is named “Fr!zzz Café and Book Rental” with the following logo:

Café & Book Rental

We choose the name based on the consideration that it is simple, easy to be remembered and spelled. “Fr!zzz” is taken from English “freeze” meant to make something full of ice, to stop moving suddenly, to feel too cold, etc. we take “to stop moving suddenly” as the meaning of our café. It aims that everyone who pasts by the café will stop and stay to enjoy the food and or rent the comic or novel in our book rental. The logo of a snowman with open hands shows that we will welcome anyone with open hands and give the best service so the customers will feel comfortable, and piece.

The café is an individual ownership company (sole proprietorship). The owner of the café are Arif Rahman Hakim, Eni Sulistiani, Fatimah, Fajar Rini. We will share an equal ownership on this company as the manager. As an initial investment of the company every manager share

The café is run by using the traditional business system. The clear indication described in this business is that the producers try to produce the products independently without conducting an official and bound cooperation in the process of running the business. The business will be run without having cooperation with any institution.

The business serves goods and services products. The goods are food and beverage while the service one is book rental.

The design of the building follows most of the Japanese café’s style that are simple and cozy. Most of the walls are made of glass that the visitors can enjoy the outside view so they will not be bored. One third of the building will be used as book rental. The layout is enclosed.

The concept of this business is elegant but with the affordable price for the college students as the market. It is like the café in general, but we try to offer the different concept that is completing with books rent service.

The Goods Product

This café provides many kinds of food and beverage with the affordable price. The menu we are provided are special fried rice, fried rice, fried noodle, chicken soup, fried potatoes, bread toast (cheese and chocolate), banana toast ( cheese and chocolate), various kinds of pancake, various fruit juice, cappuccino and milkshake.

We will give a unique name for each menu, but it still can be understood easily by the visitors, without raising misperception. We will make an interesting menu list with the pictures of food and beverage that will arouse the visitors’ appetite.

In the weekend, we will serve some special menus such as steak, corn soup, spaghetti, pudding and ice cream.

The Service Product

For the comic and novel rent, the members can read here free of charge, while for the non-members will be charged based on the kinds of books.

E. MARKETING

1. Profile of the costumers

The potential customers of the cafe are students (university students or high school students). They are lower-middle-class students who like to have a chat with friends and to have a discussion together whilst eating or students who like to hang around a cafe, reading comics or novel. We also do not restrict other segment of costumers such as young executives or middle class employee.

2. Products

Our cafe provides many kinds of foods and drinks with achievable price. There are also many titles of comics and novels which can be read. Here the detailed list of foods and facilities:

Foods

Book rental

- Special fried rice

Rp. 7.500,-

- It is free of charge for cafe member to read or borrow the comics and novel.

- Fried rice

Rp. 6.500,-

- Reading in the cafe

- Fried noodle

Rp. 6.500,-

Rp. 300,- each

for comics

- Chicken soup

Rp. 6.000,-

Rp. 1000,- each

for novels

- Fried potatoes

Rp. 4.000,-

- Borrowing books

- Roasted Bread

Rp. 4.000,-

Rp. 750,- each

for comics

- Roasted Banana (cheese & chocolate)

Rp. 3.500,-

Rp. 2000,- each

for novels

- Various pan cake

Rp. 4.500,-

Note : if it is new comics or novels, the charge of borrowing is 10% of the price of the books.

- Fruits juice

Rp. 3.000,-

- Cappuccino

Rp. 3.000,-

- Various milkshake

Rp. 4.000,-

There are also special foods on weekend. They are steak, corn-soup, spaghetti, pudding, and ice cream.

3. The competitors

The competition of this kind of business isn’t so hard because every cafe has unique characteristics of content and style which are offered. This kind of business has already been differed according market segment which become the target of each cafe, for example such cafe gives music live as their character, the other gives clubbing atmosphere as the character.

4. Marketing development

The management will try to develop the market strength of the existing customers segment and try to get new costumers. The management also tries to make the existing customers/ cafe members being more loyal. It can be done by giving good services and friendship comfort condition in the cafe. Giving merchandise or free foods for the member who has special achievement, for example the member success to make her friends join the membership, she is the member who comes to the cafe most frequently, or she is always ordering highest bill is also another way.

5. Pricing

The price of our foods and drinks is lower than other same kinds of business. The charge of borrowing books is also competitive. To be a member, one should only pay Rp. 20.000,- when she registers and pay Rp. 10.000,- per month to extend the membership.

6. Promotion

In order to increase the sales and achieve the target market, we use some of the strategies below:

  • We use leaflet in the university area and in the shopping centre.
  • We promote our company in the news paper with an attractive advertisement.
  • We also hold a soft opening which gives free foods for the first fifty costumers. They can order one kind of food freely. We also give a promotional price which prevails in a certain period.
  • We use fresh vegetables, fruits, bread, and the best foodstuffs to make the good and qualified product because we concern about the quality control of our product.
  • We offer a comfortable place to the customers.
  • We provide a newest novels, comics, magazines, etc.

7. Marketing system

It is a directive system because we serve the customers directly. The customers order the food and the beverages then we serve like what they want.

F. PRODUCTION MANAGEMENT

We will give the menus with an unique name but still have a clear description about the menu so that the customer recognize it easily without any wrong perception. We also make a menu catalogue as attractive as possible, easy to be read, and also the picture of food and beverage so that the customer interested in the menu. We also have a special menu on the weekend with achievable price. Some of our special menus are steak, corn sup, spaghetti, pudding, and ice cream.

For the book rental, the customers who are the member can read the book in the café freely. While for Non-member will be charge Rp. 500 per comic, and Rp 1.000,- per novel. To borrow the comic and novel, they will be charge Rp 750,- per comic, dan Rp 2.000,- per novel. If the comic and novel is new edition, the rent price is 10% from the price.

All of the description and definition in this proposal is arranged in brief, so that will give a simple and understandable analysis about our business we offered. All of the policy formulations of the company are flexible to react the market changes, economic condition, culture, lifestyle and all of their influences to the business.

1. Operation Description

Fr!zZz café and book rental operates everyday except on the religion holiday from 11.00 WIB until 23.00 WIB. The café activities begin from the process of the uncooked material of food and drink in the morning. The uncooked material will be cooked when there is an order from the customer. When the customer comes, the waitress will serve them friendly then offer them the menu and answer their menu or offer them the special menu that may interest them. While they are waiting their order, they can listen to the music or read the book in the rental book.

Fr!zZz café and book rental open at eleven o’clock in the morning to get the customer who want have lunch in the fun place and close at eleven o’clock in the night so that we get the customer who want to read, have a break and dinner or just hang out with their friends.

If the customers want to borrow the book, comic or novel from the rental book they just pick it up from the bookshelf, then register it to the book rental operator. They will not have a difficulty in looking for the book because it is already arranged in a simple way. If they still have a difficulty, they can ask the operator to help them to find the book they want.

2. Organization Structure

The Owner

Chef

Waitress

Cashier

Book Rental Operator

3. Job Description

  1. The Owner

1. Manage and control the operational activities

2. Manage the operational employee

3. Develop Management Strategic of the company

4. Solve the management problem

5. Supervise the management activities

6. Audit the Operational Management and Financial Management regularly.

  1. Chef

1. Cook and serve the delicious food and beverages effectively and effeciently.

2. Manage the raw materials in the kitchen.

3. Develop new menus.

4. Control the qualities of the food and beverages.

5. Report the weekly/monthly activities to the owner.

  1. Waiter/ Waitress

1. Serve the customer friendly and help them if they have a complaint.

2. Deliver the order effectively and quickly.

3. Keep the cleanliness and tidiness entire the café.

4. Keep the security in the café environment.

5. Promote the café to their friends.

  1. Cashier

1. Supervise and Control the Stewardess.

2. Accept the payment from the customer.

3. Calculate the payment from the customer.

4. Account the daily revenue of the café.

5. Manage the order from the customer.

6. Report the weekly/monthly activities to the owner.

  1. Book Rental Operator

1. Serve the customers who want to rent the book.

2. Manage the book rental activities and its operational.

3. Accept, calculate, and account the payment from the customer.

4. Manage the supply of the book and build a good relationship with the publisher.

5. Report the weekly/monthly activities to the owner.

4. Staffing Description

To serve the customer, we have a plan to employ 10 members of staff. The job descriptions are 6 workers as the waitress to serve the customer. They are divided into two shifts. The other two workers are the chef to prepare and cook the food and drink, 2 worker as the cashier and 2 workers as the book rental operator.

The qualifications to be our staff are:

· Waiter/Waitress

The university students, good looking, communicative, sociable, friendly, ready to be a part-time worker, have a high work ethic.

We employ university students because as part-time workers, they have a low wages cost. Another reason is that they are also as the marketing staff because they can promote the café to university student community. At last but not least, we provide the university student a part time job, so that they can get an extra money and to practice their skills.

· Chef

Have an experience in the cuisine at least one year, have a loyalty in the company, have a great work ethic.

· Cashier

Good looking, minimum education is SMU/K, communicative, friendly, young, sociable, have an experience in the same position at least one year.

· Book Rental Operator

Good looking, communicative, friendly, sociable, have a high work ethic

In brief, we need both a part time worker and full timer worker who have a high work ethic, hard worker, have a loyalty in their responsibilities, friendly, capable in their position, and responsible.

We differentiate the salary to each worker, because they have different responsibilities;

· Waitress à Rp 200.000 /month.

· Chef à Rp 700.000 /month.

· Cashier à Rp 300.000/month.

· Book Rental Operator à Rp 150.000/ month

In one month, the staffs not only get the major salary, but they also get the serving of food based on their shift. To motivate the staff, they will get a bonus and also the vote for employee of the month who will get a special gift from the management. The atmosphere in the work place will be set up as a comfortable place to minimize the employee turnover. The family setting will be built so that the staff will not be depressed and have a high loyalty in the company.

G. FINANCIAL MANAGEMENT

Capital Needs

To establish the company, we need Rp 600 million as an initial investment. The details will be explained below:

1. Land (100m2)

2. Building (60m2)

3. Café’s Property

4. Cooking Utensils

5. Working Capital

Total Initial Investment

Rp 200 million

Rp 200 million

Rp 100 million

Rp 75 million

Rp 25 million

Rp 600 million

We already have the land so we need an additional capital Rp 400 million from the creditor in the term of debt. We will use the land certificate where the business will be established and other building (private house) as the collateral with its total value are Rp 600 million.

So, in the beginning of business, the focus of the business is to pay in instalment of the principal and the interest. We will settle the debt in four years. After the first four years, we have a project to expand our business by build another café or by add other services in the café.

Café Revenue

(Rp 900.000 x 30) x 12

Rp 324 million

Book Rental Revenue

Rp 3.000.000 + Rp 4.400.000

7,4 million

Rp 331,4 million

Working Capital Expenses

(Rp 290.000 x 30) x 12

104,4 million

Rp 227 million

Wages Expenses

Rp 3.500.000 per month x 12

42 million

Rp 185 million

Depreciation Expenses

35 million

EBIT

Rp 150 million

Instalment of the principal + interest

Rp 100 million + interest 20%

120 million

Rp 30 million

EBT (Earnings Before Tax) Tax (25%)

Rp 7,5 million

Net Income

Rp 22,5 million

Financial Projection Per Year

(In the first four year (the focus is to pay the debt from the creditor)

From the café’s business we have a prediction that we will get a gross profit (on average in one month, because there is a customer fluctuation on a regular day and weekend and also in the beginning of the month and in the end of the month) more or less Rp 900.000 each day, with the operational expenses and working capital is Rp 290.000, so the gross profit per month (the assumption is 30 days) is Rp 27 million.

While the revenue of the book rental business for a year is Rp 3.000.000 from the membership where the target of permanent member are 50 members and Rp 4.400.000 a year (with an average revenue per day are Rp 12.000)

The working capital consists with the raw material expenses for the food and drink, and other expenses (water, electricity, telephone) which are allocated per day around Rp 290.000, so the total a year (360 hari) is Rp 104,4 million. Wages expenses for the employee per month is Rp 3,5 million, so the wages expenses a year is Rp 42 million.

Depreciation expenses per year is Rp 35 million, the details are:

Depreciation per year:

Building Rp 200 million (UL 20 year) Rp 10 million

Café’s Property Rp 100 million (UL 10 year) Rp 10 million

Cooking Utensils Rp 75 million (UL 5 year) Rp 15 million

UL = Useful Life

In brief, the café’s business is projected to get EBIT (Earnings Before Interest and Tax) Rp 150 million per year. In every year, Rp 120 million from EBIT will be allocated to pay the instalment of principal debt + interest (total debt Rp 400 million) for the first four years. While the other Rp 60 million will be used to pay tax Rp 7,5 million (the assumption is that the tax rate is 25% from taxable income or Earning Before Tax) and the next Rp 22,5 million will be used to develop the business growth.

H. PRODUCTION EXPANSION

There are two possibilities of expanding the business. The first is providing more facilities for the member in the third year. The facilities can be more kinds of books to rent and read such as news papers, non-fiction books, etc. The addition of an internet corner will also be afforded in order to expand the production. The second is opening the branch cafe in the fifth year.

I. CLOSING

Considered this business has a profitable prospect, we make this proposal to look for creditors who want to cooperate with us. We had provided some analyses related with the plan and the prospect in the future which can be used as the base of decision making. We convince you that you will never wrong to invest the money in our business. Just grab this chance and get the profit.

Appendix

Layout Fr!zZz Café & Book Rental

1 m 9 m

2 m 2 m

2 m

2 m

3 m

5,5 m

3,5 m

8 m

5 m

2,5 m

Skala 1 : 100

Appendix

Layout Fr!zZz Café & Book Rental

Wall

Glasses

Toilet

Free-Space

Wastafel

Kitchen

Café

Book Rental

Parking Area

Garden