Business Plan Of Slice Bakery Management Essay

Business Plan Of slash bakery Management Essay initiation gash bakery and Juices is a start up juice and bakehouse retail establishment regain in down town Nairobi. excision bakers expects to catch the interest of a symmetrical loyal customer domicile with its wide variety of fresh juices and new bake cakes and chou. firearm bakeshop and Juices plans to construct a strong market position in the urban center due to the partners industry acquaintance in the ara.The establishment aims to offer its run and products at a reasonably free-enterprise(a) price to meet the shoot of the middle and towering argona re casents and tourists.The alliance slicing Bakery and Juices is incorporated in the urban center of Nairobi. It is every bit owned and managed by its three partners. Mr. David Williams has all-inclusive experience in selling, sales and management and was the vice chairman of Eveready Batteries and harpist foods. Mr. Arnold Mwangi is go through in finance an d administration and was previously the chief financial officeholder with both Luigis Caf and Willy Pastries. Mrs. genus Felicia Wanjiku is a sound respected pastry dough dough chef with commodious knowledge and experience in the field, she formerly worked at laguna set down resort in the Kenyan coast as the interrogative sentence pastry chef.The organization intends to hire 2 full time pastry cooks and four part time baristas to serve customers and perform the twenty-four hours to day operations.Products and Services opus Bakery and Juices offers a vast range of pertly do harvest-tide and vegetable juice varieties that are brought into the city from variant parts of the continent. The troupe caters to all of its customers by serving each of them a carefully made drink that is specifically tailored to the customers order.The bakery side of the company provides a wide array of freshly prepared bread and cake varieties at all times during telephone circuit hours. Ten to dozen moderately size batches of assorted bread and cakes are prepared during the day to assure the availability of freshly baked products at all times.The foodstuffThe Fresh juice industry in Nairobi has recently experient very fast growth. The worm equatorial temperature in Nairobi stimulates the tied(p) consumption of cool drinks. slicing Bakery and Juices wants to establish a oversized regular customer base and it go forth achieve this by concentrating its marketing and business on topical anesthetic residents, which forget be the organizations target market. This earmark create a healthy, stable revenue base that will tell the stability of deletion Bakery. In growth tourists are expected to symbolize aproximately25% of the total revenue collected. Good visibility and competitive products and servicings are crucial in order to mesmerize this segment of the market.Financial ConsiderationsSlice Bakery and Juices is expected to raise $90,000 of its own capital and to borrow $110,000 guaranteed by the National cuss of Kenya s a ten grade loan. The company anticipates sales of virtually $485,000 in the first course of instruction, $570,000 in the second year and $660,000 in the triplet year. The organization should break even by the quartern month of business as it steadily increases its revenue. Profits for this period are anticipated to be approximately $12,000 in year one, $31,000 by year two and $48,000 by year three. Slice bakers does not expect cash f meek problemsMissionSlice Bakery and Juices aims to offer high character fresh juice and pastry products at a conceivable price to meet the take away of middle and high income part residents and tourists.Keys to SuccessThe side line of products are needed to make Slice Bakers and Juices a success reserve the highest possible tonicity product with excellent customer services.Competitive pricing. fraternity SUMMARYSlice Bakery and Juices is a bakery and juice grass managed by thr ee partners. These partners represent sales management and financeadministration food and beverage. The partners will provide capital from their own savings which will cover up the start up expenses and also provide a safety gain for the first few months of business. A ten year small business administration loan will cover the remaining costs. Slice Bakery and Juices plans to build a small market position within the city due to the mild rival in the business area of Nairobi.Company OwnershipSlice Bakery and Juices is incorporated in the city of Nairobi. It is equally owned by its three partners.Start Up SummarySlice Bakery and Juices financing will come from the partners capital and the ten year loan from the National Bank of Kenya. The following diagram and table beneath illustrate the organizations projected initial start up costs.Start-Up RequirementsStart up expensesLegal- $2,000Premise Renovation- $25,000Expensed equipment- $37,000 separate- $1,000 hit start-up expenses- $65 ,000Start-Up AssetsCash Required- $63,000former(a) current assets- $10,000Long precondition assets-$65,000 rack up assets- $138,000Total Requirements- $208,000FundingStart up expenses- $65,000Start-Up Assets $138,000Total sustenance needed- $208,000AssetsNon-cash assets from start-up- $65,000Cash requirements from start-up- $73,000Total assets- $138,000Liabilities and capital liabilitiesCurrent borrowing- $0Long tem liabilities $110,000Accounts payable- $900 otherwise current liabilities- $0Total liabilities- $110,900CapitalPlanned investmentMr. David Williams- 30,300Mr. Arnold Mwangi- 30,300Mrs. Felicia Wanjiku- 30,300 opposite- $0Additional required investment- $0Total Planned investment- $90,900 leaving at start up (start-up expenses) $65,000Total capital- $25,900Total capital and liabilities- $135,900Total funding- $208,000PRODUCTSSlice Bakery and Juices offers a vast range of juices all from a good tone farms in Africa. The organization caters for its customers by providi ng them with juice made to suite their individual needs. The bakery provides freshly made pastries and baked products at all times during business hours. Ten to twelve moderately sized batches of various breads and cakes are prepared during the day to assure the availability of freshly baked products at all times.MARKET ANALYSIS SUMMARYSlice Bakery and Juices main focus is on meeting the growing demand of a regular local resident customer demographic, as well as a number of visiting tourists that pass through the area. grocery SegmentationSlice Bakery and Juices focuses on the upper and middle income markets, this finical market segment consumes the majority of baked and pastry products.Local ResidentsSlice Bakery and Juices wants to establish a large regular customer base. This will establish reliable and consistent revenue to ensure stability of the establishment.TouristsTourists are expected to comprise aproximately25% of the total revenue collected. Good visibility and competit ive quality products and services are crucial in order to capture this market segment. commercialize epitomeThe previous chart and table abstraction the total market potential of the above customer segmentsTarget Market Segment StrategyThe dominant selected market for Slice Bakery and Juices is a regular flow of local residents. Personal and respectful customer service at a competitive price is the key in maintaining the local market share.Market NeedsSince Nairobi has a worm modality for most of the year, cool drinks are very much in demand. such(prenominal) of the days activity occurs in the morning just before 930am with a unswerving flow for the rest of the day.Service Business AnalysisThe Fresh juice industry in Nairobi has recently experienced very fast growth. The worm equatorial temperature in Nairobi stimulates the regular consumption of cool drinks. Juice Drinkers in the greater Nairobi city area are finicky about the quality of Juice offered at the numerous Fruit sta lls across the area. Despite low competition in the current areal, Slice Bakery and Juices will be located at a place where customers can enjoy a screwball of freshly made issue/vegetable juice with freshly baked cakes in a relaxing environment.Competition and Buying PatternsCompetition in the area is relatively sparse and does not nearly provide the quality of products and customer services as Slice Bakery and Juices. Local area customers are looking for a high quality product in a peaceful atmosphere.Leading competitors purchase and squeeze an array of fruits from around the world, make fruit and vegetable salads, a variety of pastries in quality packages and a line of premium packed cocktail drinks(both alcoholic and non-alcoholic). In addition to the companies sales through company operated retail shopsLarge chain companies motley their product mix depending on the size of each individual lineage and its location. Larger stores carry a wide selection of fresh juices in vario us sizes, flavor and types of packaging, as well as an assortment of fruits and fruit blending equipment and accessories. Smaller shops and kiosks generally sell a full line of Juice varieties, a limited selection of alcohol fruit cocktails and a few more accessories.Technologically conversant competitors make fruit juices and fruit related products conveniently available via the internet or mail order. Websites that allow online stores that allow customers to browse and purchase the companys vast array of products and service.STRATERGY AND IMPLIMENTATION SUMMERYSlice Bakery and Juices will eventually succeed by offering consumers high quality juices, bread and pastries with personal service at a reasonable and competitive price.Competitive EdgeSlice Bakery and Juices is the relatively low level of competition in the city area targeting this particular demographic.gross revenue StrategyAs the graphs below show, Slice Bakery and Juices expects sales of about $485,000 in the first yea r, $570,000 in the second year and $660,000 in the third year.CDocuments and SettingsChifMy DocumentswORK_ONLINE2a22e7554c0a4224b23f7935f16cfd66.pngCDocuments and SettingsChifMy DocumentswORK_ONLINEgraph.pngSales Forecast course of study 1 Year 2 Year 3 building block SalesJuices 135,000 148,500 163,350 pastry dough Items 86,000 94,600 104,060Other 0 0 0Total Unit Sales 221,000 243,100 267,410Unit Prices Year 1 Year 2 Year 3Juices $3.00 $3.15 $3.31 pastry dough Items $1.00 $1.05 $1.10Other $0.00 $0.00 $0.00SalesJuices $405,000 $467,775 $540,280Pastry Items $86,000 $99,330 $114,726Other $0 $0 $0Total Sales $491,000 $567,105 $655,006 accept Unit termss Year 1 Year 2 Year 3Juices $0.25 $0.26 $0.28Pastry Items $0.50 $0.53 $0.55Other $0.00 $0.00 $0.00Direct Cost of SalesJuices $33,750 $38,981 $45,023Pastry Items $43,000 $49,665 $57,363Other $0 $0 $0Subtotal Direct Cost of Sales $76,750 $88,646 $102,386Management SummaryMr. David Williams has extensive experience in marketing, sales and management and was the vice chairman of Eveready Batteries and Harper foods. Mr. Arnold Mwangi is experienced in finance and administration and was previously the chief financial officer with both Luigis Caf and Willy Pastries. Mrs. Felicia Wanjiku is a well respected pastry chef with vast knowledge and experience in the field, she formerly worked at Lagoon beach resort in the Kenyan coast as the head pastry chef.Personnel PlanAs the personnel plan illustrates,Slice Bakery and Juices expects to make significant investments in sales, sales support, and product development personnel.Managers $100,000 $105,000 $110,250Pastry Bakers $40,800 $42,840 $44,982Baristas $120,000 $126,000 $132,300Other $0 $0 $0Total People 10 10 10Total Payroll $260,800 $273,840 $287,532Financial PlanSlice Bakery and Juices expects to raise $90,900of its own capital, and to borrow $110,000 guaranteed bythe National Bank of Kenya as a ten-year loan.This provides the bulk of the current financing required.Break- even AnalysisSlice Bakery and Juices Break-even Analysis is based on the basic average of the firstfigures for total sales by units, and by operating costs. These are presented as per-unit revenue, per-unit price, and fixed costs.These conservative assumptions make room for a more accurate estimate of real risk. Slice Bakery and Juices should break even by thefourth month of its operation as it slowlyincreases its sales.http//www.bplans.com/bakery_business_plan/images/73ebe304715e411d80d3e39ff995c767.pngBreak-even Analysis periodic Units Break-even17,255Monthly Revenue Break-even$38,336AssumptionsAverage Per-Unit Revenue$2.22Average Per-Unit Variable Cost$0.35Estimated Monthly Fixed Cost$32,343Projected Profit and LossAs the Profit and Loss table shows,Slice Bakery and Juices expects to continue itssteady rise inprofitability over the next three years of business.Pro Forma Profit and LossYear 1 Year 2 Year 3Sales $491,000 $567,105 $655,006Direct Cost of Sales $76,750 $88,646 $102 ,386Other $0 $0 $0Total Cost of Sales $76,750 $88,646 $102,386 tax income Margin $414,250 $478,459 $552,620Gross Margin % 84.37% 84.37% 84.37%ExpensesPayroll $260,800 $273,840 $287,532Sales and Marketing and Other Expenses $27,000 $35,200 $71,460Depreciation $60,000 $69,000 $79,350Utilities $1,200 $1,260 $1,323Payroll Taxes $39,120 $41,076 $43,130Other $0 $0 $0Total Operating Expenses $388,120 $420,376 $482,795Profit Before Interest and Taxes $26,130 $58,083 $69,825EBITDA $86,130 $127,083 $149,175Interest Expense $10,000 $9,500 $8,250Taxes Incurred $3,111 $12,146 $15,650 illuminate Profit $13,019 $36,437 $45,925Net Profit/Sales 2.65% 6.43% 7.01%