BUSINESS PLAN ON TOBACCO VENDOR
OMPRAKASH Tobacco & Pan shop, Powai

Assumptions :
He has a shop on rent and its rent is Rs 3000 per month with security deposit of Rs 50000
Furniture cost is Rs 5000 ( depreciating at 10% per year for 10yrs)
Initial material stock of Rs 15000 in the shop.
License from BMC (Brihanmumbai Municipal Corporation)is given for Rs 1200 for 3 yrs.

Total Capital Employed = 50000+3000+5000+15000+1200 = 75000
If i have deposited Rs 75000 in Fixed deposit, I could have earned Rs 563 per month (r.o.i taken is 9%)
Other monthly expense = 500 per month .

Locations:-
1. Can be near offices and Colleges but at a distance of more than 100
yards.
2. Market place or near railway station or bus stand.

Items:-
1.Cigarettes 2.Pan 3.Gutkha

Steps:-
Cigarette vendor gets 5- 7% profit margin on the sale of 1 packet of Indian brand and 10-12% on Foreign brands. Means a vendor may earns Rs 2 on every packet of 10 sticks of Indian brand and Rs 5 on Foreign brand.
If Omprakash sales 20 packets of Indian brand and 20 packets of Foreign brand than one day’s earning is Rs 140
And sells 50 pan which has a original cost of Rs 2 in Rs 5 than one day’s earning is Rs 150
And sells 50 Gutkha pouches in Rs 3 which has a original cost of Rs 2. Then one day’s earning is 50.

Total earning from 3 products in a day is Rs 340
Monthly Earning is 340*30 = Rs 10200

Earning is Rs 6167 after removing other monthly expense, monthly rent, depreciation on furniture