Tuesday, June 4, 2019

Business Plan Of Slice Bakery Management Essay

Business Plan Of stroke bakeshop Management EssayIntroductionSlice Bakery and Juices is a slit up succus and bakehouse retail establishment located in down town Nairobi. Slice bakers expects to catch the interest of a unconstipated devoted customer base with its all-inclusive variety of fresh juices and freshly bake cakes and bread. Slice Bakery and Juices plans to construct a strong market place position in the metropolis due to the partners perseverance get a line in the argona.The establishment aims to offer its services and products at a reasonably rivalrous price to meet the take aim of the middle and high area residents and tourists.The CompanySlice Bakery and Juices is incorporated in the city of Nairobi. It is equ on the wholey owned and managed by its three partners. Mr. David Williams has extensive carry out in marketing, sales and management and was the vice chairman of Eveready Batteries and Harper foods. Mr. Arnold Mwangi is experienced in finance and ad ministration and was previously the chief financial officer with twain 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.The organization intends to hire 2 full time pastry cooks and four part time baristas to behave customers and perform the day to day operations.Products and ServicesSlice Bakery and Juices offers a vast range of freshly made proceeds and vege duck juice varieties that are brought into the city from various parts of the continent. The fraternity 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 business hours. Ten to cardinal moderately sized batches of assorted bread and cakes are prepared during the day to assure the availability of freshly baked products at all times.The MarketThe young juice industry in Nairobi has recently experienced very fast growth. The worm equatorial temperature in Nairobi stimulates the regular consumption of serene drinks.Slice Bakery and Juices wants to establish a freehanded regular customer base and it leave achieve this by concentrating its marketing and business on local anesthetic residents, which will be the organizations target market. This will create a healthy, stable revenue base that will ensure the stability of Slice Bakery. In summation tourists are expected to comprise aproximately25% of the total revenue collected. correct visibility and competitive products and services are crucial in order to capture this portion 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 internal Bank of Kenya s a ten category loan. The company an ticipates sales of around $485,000 in the first year, $570,000 in the second year and $660,000 in the third year. The organization should break even by the fourthly 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 twain and $48,000 by year three. Slice bakers does not expect cash flow problemsMissionSlice Bakery and Juices aims to offer high quality fresh juice and pastry products at a reasonable price to meet the demand of middle and high income area residents and tourists.Keys to SuccessThe following are needed to deem Slice Bakers and Juices a successProvide the highest possible quality product with excellent customer services.Competitive pricing.COMPANY SUMMARYSlice Bakery and Juices is a bakery and juice shop managed by three partners. These partners represent sales management and financeadministration food and beverage. The partners will provide capital from their own sav ings which will cover up the start up expenses and also provide a safety net for the first few months of business. A ten year petite 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 competition 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 backing will come from the partners capital and the ten year loan from the National Bank of Kenya. The following diagram and table below illustrate the organizations projected initial start up costs.Start-Up RequirementsStart up expensesLegal- $2,000Premise Renovation- $25,000Expensed equipment- $37,000 opposite- $1,000 tot start-up expenses- $65,000Start-Up Assets capital Required- $63,000Other current assets- $10,000Long term assets-$65,000 come up assets- $138,000Total Requirements- $208,000 FundingStart up expenses- $65,000Start-Up Assets $138,000Total funding needed- $208,000AssetsNon-cash assets from start-up- $65,000Cash requirements from start-up- $73,000Total assets- $138,000Liabilities and capital liabilities accredited borrowing- $0Long tem liabilities $110,000Accounts payable- $900Other current liabilities- $0Total liabilities- $110,900CapitalPlanned investmentMr. David Williams- 30,300Mr. Arnold Mwangi- 30,300Mrs. Felicia Wanjiku- 30,300Other- $0Additional required investment- $0Total Planned investment- $90,900Loss 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 quality farms in Africa. The organization caters for its customers by providing 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 mod erately 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.Market SegmentationSlice Bakery and Juices focuses on the upper and middle income markets, this particular 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 competitive quality products and services are crucial in order to capture this market segment.Market AnalysisThe previous chart and table outline 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 climate for most of the year, cool drinks are very much in demand. Much of the days exercise occurs in the morning just before 930am with a steady 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 stalls 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 glass of freshly made harvest-tide/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 vary their product mix depending on the size of each individual store and its location. Larger stores carry a wide selection of fresh juices in various 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 se lection 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. sales StrategyAs the graphs below show, Slice Bakery and Juices expects sales of about $485,000 in the first year, $570,000 in the second year and $660,000 in the third year.CDocuments and SettingsChifMy DocumentswORK_ONLINE2a22e7554c0a4224b23f7935f16cfd66.pngCDocuments and SettingsChifMy DocumentswORK_ONLINEgraph.png gross sales ForecastYear 1 Year 2 Year 3Unit SalesJuices 135,000 148,500 163,350Pastry 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 $3.31Pastry 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 $655,006Direct Unit Costs 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 Wanji ku 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 first-yearfigures for total sales by units, and by operating costs. These are presented as per-unit revenue, per-unit price, and fixed costs.These conse rvative 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 Analysismonthly 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 $102,386Gross 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 $71,460Deprec iation $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 lodge in 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 $15,650Net Profit $13,019 $36,437 $45,925Net Profit/Sales 2.65% 6.43% 7.01%

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