127540263 Bakery Business Plan(1)

8/12/2019 127540263 Bakery Business Plan(1)

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EXECUTIVE SUMMARY:

Natures Bounty is a start-up coffee and bakery retail establishment located in KalaghodaMumbai.A diverse neighborhood in the heart ofcity has been only able to attract cheap eatrestaurants to open in its commercial center in the past. Healthy food options are a significaunmet need for the people who live and work there.

Natures Bounty will be located in a newly renovated 2000 square foot caf and bakery production space. We will offer fresh, healthy food options to the people who live and work the neighborhood. In addition to retail sales, we will sell quality baked goods wholesale to coffshops, cafs, restaurants and specialty convenience stores around. In the initial years ooperations, sales from the Natures Bounty retail operation will be the most significant source ofrevenue, while the wholesale portion of our business will aid in our long-term sustainability.

The Natures Bounty Caf will set itself apart by offering delicious, healthy food made fromscratch. Targeted marketing with people who work and live in Kalaghoda will attract customefor lunch and coffee and baked goods at the Caf. Our wholesale baked goods will offer gretaste and superior nutrition. Direct one-to-one marketing to coffee shops, cafs, restaurants anspecialty convenience stores will attract wholesale customers.

DESCRIPTION OF THE BUSINESS:

On May 9, 2014The Natures Bounty Caf will open its doors. From maple scones to robustslaws, jerk chicken, as well as soups, sandwiches, and muffins, everything we serve will be mafrom scratch with nutritious and delicious ingredients. Awareness of the health impact of food growing in the diverse community. A vibrant but struggling commercial center in the heart inner has several take-out cheap eats, but no place offering fresh, healthy options. Our

conversations with employees and residents show that they want an alternative. Our goal is offer a wholesome, delicious menu at affordable prices to the people who live and work in here

Awareness of the health impact of food is growing in the diverse city. A vibrant but strugglincommercial center in the heart of city has several take-out cheap eats, but no place offeringfresh, healthy options. Our conversations with employees and residents show that they want


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alternative. Our goal is to offer a wholesome, delicious menu at affordable prices to the peopwho live and work in here. The 2,000 square foot space includes a state-of-the-art kitchen wi production space and equipment to prepare a wide range of fresh baked goods and wholesomfoods, all made from scratch.

Executive Chef Emmons will use a wide variety of fresh vegetables, herbs, and whole grains craft healthful and creative yet simple food. She has developed a menu based on thneighborhoods desires, drawing on dozens of her already well -tested recipes. She will also offera range of products for people with specific health needs, including heart-healthy, non-dairlow-fat, and sugar free items. All our options will be offered at a rate competitive to prices in tneighborhood.

Wholesale

To balance the risk inherent in a single revenue stream from a retail location, our goal is to groour wholesale business selling quality baked goods to establishments. We will continue tdeliver our popular line of fresh baked goods to coffee shops, convenience stores and restauranWe will also be adding a new and unique healthy product line that includes dairy-free muffinvegan coffeecakes, and other delicious baked goods with superior nutritional value.


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Vision

To become the most preferred Bakery product manufacturer among the people by treating th people in the way they like to be treated and give them best for the least.

Mission

NATURES BOUNTY CAF aims to be a cornerstone in the community creating aneighbourhood atmosphere where customers feel comfortable and become instant regulars. Wseek fair and responsible profit, enough to keep the company financially healthy for the lon

term and to fairly compensate for our money and risk.OWNERSHIP:

The caf is jointly owned by three partners Yesha Bhansali, kanika Desai, Radhika Patel whhave equally pooled in funds and will equally share the profits.

MANAGEMENT:

To create and deliver on the promise of our offerings, we are relying on the talent of Mr

Emmons, our Executive Chef. Chef Emmons is a renowned chef and restaurant entreprenewith 20 years of restaurant experience. She will draw on the culinary traditions of the varioucultures of Dudley Square to prepare delightful food that is honestly good. She will bring hexpertise in streamlining operations to make good food affordable.


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SWOT Analysis:-

Strength:

No branded bakery food product which sells exclusively Cake and Pastry. It provides variety cake , Baked products, Bread etc formed by different Flavour which gives the customer aIndian taste plus nutritive products.

Weakness:

There is a risk in starting this business because it will be first of its kind.

Threats: There is no direct competitor as such but we can consider local player of the particular area our competitors because they are selling same product with low cost. If talk about Internation player like starbucks and other local players like caf coffee day, barista etc..

Opportunity: There is a large customer base, as India is having maximum number of vegetarian peopleIndians spend around 51% of their personal expenditure on their eating habit.


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LEGAL ASPECTS

Prevention of Food Adulteration Act, 1954

This act is the basic statute that is intended to protect the common consumers against the suppof adulterated food. This specifies different standards for various food articles. The standards ain terms of minimum quality levels intended for ensuring safety in the consumption of these foitems and for safeguarding against harmful impurities and adulteration. The central Committfor Food standards, under the Directorate General of health services, Ministry of Health anFamily Welfare, is responsible for the operation of this act. The provisions of this Act armandatory and contravention of the rules can lead to both fines and imprisonment.

Objective

To protect the public from poisonous and harmful foods.To prevent the sale of substandard foods.

To protect the interests of consumers by eliminating fraudulent practices

Standards on Weights and Measures (Packaged Commodities) Rules, 1977

These rules lay down certain obligatory conditions for all commodities that are packed, witrespect to declaration on quantities contained. These rules are operated by the Directorate Weights and Measures, under the Ministry of Food and Civil supplies


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MARKET ANALYSIS:

A.)Retail Market : Kalaghoda lies at the center of a culturally diverse, economically mixed,neighborhood that has undergone a period of steady growth over the past 20 years. Selling lunc

coffee, and baked goods to people who live and work in this area will drive theCafs retail business.

It is mainly a commercial center with banks like HSBC, Standard Chartered, Bank of IndiHDFC having their head office located around.

The High Court is also at close proximity.

There are also plenty of residencies within one mile of the decided location.

Based on our primary and secondary research, we make a set of assumptions: on averagemployees purchase lunch in the area ten times a month (2.5 times a week) and residen purchase lunch in the area once a month (0.25 times a week). We also make the assumption thon average, employees purchase breakfast or have a coffee break in the area once a week anresidents purchase breakfast or a snack in the area twice a month (0.5 times a week)

Potential Future Growth in the Retail Market :

This is an area that is experiencing continuing positive economic and social transformation.

Competition

In this section, we explore the competition that Natures Bounty faces in the lunch and the coffeeand baked goods market. The Natures Bounty Cafs retail market competitors in this area areexisting lunch spots as well as places that offer takeaway coffee and baked goods. Somemployees also choose to bring their own lunch.

Cheap eats:

There are a lot of cheap eat restaurants around that place, offering variety of food on the streeor small dine ins.

Convenience Stores:


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The local convenience store has a few pre-made sandwiches for sale

Cafes and Coffee shops :

There are a few cafes like CCD, The Pantry, and Starbucks around this place.

Competitive Advantages:

Based on our primary and secondary research in the retail market we found the following unmneeds, which we hope to channel into opportunities for the Bakery Caf:

Respondents noted that there are currently no salad and soup options in here, and that thsandwich offerings are dull at best. Were stuck with sub shops around here. I just want a

wrap, or a fresh sandwich on some nice bread. The people here are dying for some salad thats

not just a bunch of iceberg lettuce. Those looking for healthier lunch choices are also at a loss.

Lack of good options causes a number of people to choose to bring lunch from home. Amonthose we interviewed who primarily bring their own lunches; all said that they would be willinto eat out more if there were more options available, including soups and salads and vegetariaoptions.

CompetitiveAdvantage: Natures Bounty will offer fresh, healthy, delicious food. We will

change a third of our menu items on a weekly basis, including soups, salads, and rice dishes offer continuous new options for repeat customers.

Unmet Need: Good Options

People cant find good foo d for lunch in this area.Weve already had everything in the area 50million times, said one respondent

Competitive Advantage: The Caf will be centrally located in the heart of the suburb, competing

favorably with restaurants and bakeries outside on the basis of proximity and convenience.

B.)Wholesale Market Size

The wholesale market for baked goods is large. We have identified an additional 40 caflocated between 5 and twenty miles from our new location.


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Competition

Several other bakeries in the area currently sell wholesale baked goods. Based on feedback froour customers, many of whom order or used to orderfrom these vendors, Natures Bounty will

offer comparable, and often better, quality baked goods. Significant recent consolidation in thindustry has reduced the number of baked goods vendors, and, according to the perception several existing and potential wholesale customers we talked with, driven down both the qualiof baked goods and the level of customer service at the remaining bakeries offering wholesa baked goods.

Unmet Need: Product Quality and Variety

We discovered a significant unmet need for high quality baked goods, made from naturaingredients, delivered fresh every day, with good customer service. When I say we look f orhealthy products, I mean that customers mostly want things that are free of chemicals and

preservatives. Our customers not only look for good taste, but want to be reassured that its good

for the body to the extent possible for a muffin, or cookie, of course!

Competitive Advantage: Natures Bounty will offer our customers delicious products made withcareful attention to health and nutrition, using natural, whole ingredients. We are also currentdeveloping a number of products that appeal to people with special dietary preferences such low fat and non-dairy.

We will be using a significant ratio of whole grains, and we will also use oat bran, wheat brawheat germ, and cooked brown rice, among other grains. Despite the low-carb diets, we havfound a growing interest in whole grain baked goods from our purchasers. Most said they woutry a sample and consider buying baked goods wholesale from us if they liked what we had offer. This is an evolving market that is still underserved.


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MARKETING STRATEGY:

In order to hit our target numbers for customer visits, we have established the following strategfor our three retail customer segments: the primary employee market, the secondary employ

market, and the residential market. We will target the three market segments according to thfollowing timeframe: Year 1: Focus on primary and secondary employee m arket

Years 2: Continue to attract employee customers. Initial efforts to attract residents.

Year 3: Shift focus to residential market. Maintain employee customer base.

We are targeting the employee market in the first year in order to establish a foundation for sustainable business. Our research leads us to believe that the employee market will be quick

to respond to the opening of the Caf and become loyal, repeat customers. After building stable customer base in the employees market, we will be able to dedicate greater efforts t bringing fresh, healthy food to the residents of the neighborhood.

Customer Profile

Our first customers will be primarily office workers at non-profits, government agencies an private companies located in and around the area. Our customers will represent a wide range ethnic, racial, and cultural. The residential community is also highly diverse. The majority ooffice workers fall into a mixed age range from their mid 30s to late 50s. Based on our

research, they are interested in their health and appreciate fresh food that is good for you. Th

are looking for food options that offer both variety and good taste. We are always looking forsomething new that is better than what we have here now, said one empl oyee. At the same time,they have limited time and need quick service.

Product

Through our product offerings, the Caf will connect with our customers and celebrate thdiversity of people who live and work in Dudley Square. We will offer a menu inspired by thcultural and historical traditions of the neighborhood.

Our menu will emphasize healthy eating and healthy living. Our food will be made from scratcusing fresh vegetables, herbs, whole grains and little if any processed foods. Our products w


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have no preservatives, no trans-fats. We will seek to use ingredients that support locasustainable agriculture, organic whenever possible. We will produce food that is high inutrients and low in fat. We will be conscious of different health needs and offer specialt products including heart-healthy, non-dairy, low fat, and sugar free items.

The menu will be based on a core menu of consistent offerings, augmented by new menu itemevery week for those who are always seeking something new and different. Staff will providfriendly, welcoming and quick customer service.

Pricing:

Our overall pricing strategy will be based on competitive benchmarking. We will track ou production costs consistently on a per item basis to ensure profitability.

Affordable items and discounts

Our competitive pricing strategy will help make our high quality, healthy products accessible local residents of the community. We will also be sure to offer a range of products at varyin

prices so that more people can find something they can afford. In addition, we will also offindirect price discounts to those living in the area. Given that residents will be more likely t

visit the Bakery Caf on weekends, we will offer special brunch products on Saturday that wi ll be priced more affordably, such as sandwiches for Rs.80

Positioning:


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The Caf will be the place to go in Kalaghoda for fresh, healthy, delicious food at an affordab price, and sit down to enjoy it.

Distribution:

The Caf will sell our products from our retail location in the heart of the suburb. Mocustomers will be walk-in customers. Food will be available for eat-in or take out. The Cawill have tables and chairs to accommodate approximately 40 eat-in customers at a time.

Promotion:

The Natures Bounty will use the following promotion methods to communicate our compelling product and price positioning to the retail market.

The Cafs soft opening will be held on a weekday the first week after moving in. We willhold an opening party and invite people from key workplaces and community organizations forfree preview tasting of our products. We aim to invite 500 people at 15 companies and

organizations to come to the Bakery Caf, try free samples of our food, and take copies of omenus back to their workplaces to share with others. We will also be open to any feedbacregarding our products at this time.

We will officially open for business after our soft opening, and will spend the next two months

refining our products and process/operations. Then, we will hold our grand opening, which w be highly publicized and open to the general public. The Caf will be open all day, with rotatin product samples and coupon giveaways. People will have the opportunity to experience thspace, the food, and bring our menus home to share with others.

We will also pursue all media avenues for listing and announcing our opening event in locnewsletters and papers.

In order to publicize this event, we will mail invitations to all of the businesses, offices, anorganizations in Kalaghoda that employ the people working within 0.5 miles of the Caf, alonwith copies of our menu.

By highlighting our mission as well as our product offerings, we will recruit employees aworkplaces to be Caf Coordinators. We expect people to be interested in participating


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because they support the mission of the organization and like the food, but we will also offthem free lunch once a month for a year. We will provide them with marketing materials abothe Cafe, including menus, coupons, and text for email messages with special offers. We wialso work with them to arrange free tastings of Natures Bounty products at their workplaces.

We are currently developing a website that communicates information and educates visitorabout our products and mission. Our website will provide directions and a printable menu. Wwill also use our website to educate visitors about the high quality of our product, thwholesome, natural ingredients we use, and our all-scratch process. We will explain to oucustomers why our products are healthier and more nutritious.

In Years 2 and 3, we plan to have our growth come from customers in the residential market a

well as the secondary employee market. As a result, beginning in Year 2 we will start resideoutreach, and continue this focus in year 3.

Offering Community Specials

In addition to reaching the community through organizations, we will also seek to draw iindividuals through community-oriented promotions. To reach residents, we will post flyers anleave menus with coupons at least once a month in or near establishments that draw a lot of fotraffic, such as the post office, the library, the health club, etc

For our bring your grandparent to brunch special on Saturdays, we will give two free cookies

or brownies to anyone who has brunch with his/her grandparent in the Bakery Caf.

There will also be an ongoing competition called Spill the Beans held once a month.

Customers of the Bakery Caf are encouraged to share a family recipe or personal favorite on entry card. Chef Emmons will select four or five finalists, who will have the opportunity bring in their dish to the Bakery Caf on a given day. The community will be invited to try th

different dishes and vote for their favorite. The Bakery Caf will prepare the winning recipevery Friday as a menu special until the next winner is picked. The winner will receivrecognition at the Caf, and be awarded free lunch for five.

Wholesale


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With our increased production capacity at the facility, we will add more wholesale customerWe will focus on attaining larger accounts in order to spread delivery and logistical costs moefficiently. By then end of year one, we will increase our wholesale business to 20 customers. Bthe end of Year 2, we will increase our wholesale business to 27 customers. In Year 3, we wislightly decrease the number of accounts we serve to 22 customers.

Given the price sensitivity of wholesale customers, we will price our wholesale products tmatch the prices of our competitors for similar items.

We will drive our wholesale sales through direct one-to-one outreach. The Bakery Director wi be responsible for visiting targeted cafs, coffee shops and specialty/convenience stores wi product samples and wholesale menus.

Performance Milestones

We will measure our performance and success based on a number of metrics. We will track:

Marketing Activities:

The number of businesses where we have outreach coordinators

The number of community events we have participated in

The dates and numbers of places we have done literature drops

Marketing Outcomes:

The number of customers that visit our store each week

Customer usage of coupons

Visits to our website

Our weekly retail revenues

The number and size of wholesale accounts that we add each month


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MANAGEMENT PLAN

Management

A management team made up of an Executive Chef and a Bakery Director will lead the BakeCaf. The Executive Chef will oversee operations and the training program. The Director woversee financial management and business development, including marketing and sales. Jointlthey will make the many decisions necessary in running the day-to-day operations. ThExecutive Director of Natures Bounty will oversee the Bakery management team and ensurethat all financial and programmatic targets are met. The Executive Director will hold week business meetings with the management team.

The Executive Chef will be responsible for managing the kitchen. Her responsibilities includrunning the caf, cooking and serving customers every day during the start-up phase; produdevelopment, setting up and monitoring production processes; ensuring the safety ancleanliness of the kitchen and staff; and implementing the Training Program, including lessoand curriculum development. She will also be responsible for managing kitchen staff.

The Bakery Director will be responsible for developing the business and for the administration the training program. Her responsibilities include sales and marketing; financial managemeincluding bookkeeping, accounts payable and receivable, and payroll, and preparing monthlquarterly, and yearly reports. She will also be responsible for the administration of the trainin program, including recruiting and placing trainees and maintaining training program records anreports.

Staff:

The Sous-Chef will be responsible for the preparation of foods for the caf until businesdemands that the caf hire another cook for the Sous-Chef to manage. The Sous-Chef will b

supervised by the Executive Chef. The Bakery Production Manager will be responsible fmanaging all day-to-day workflow in the production of baked goods. The Bakery ProductioManager will be supervised by the Executive Chef. The remainder of the staff will consist two full-time Baker-Trainers responsible for bakery production. One of the Baker Trainers wialso be responsible for deliveries. They will be supervised by the Bakery Production Manager.


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Trainees

Through the Bakery Training Program, we will provide paid part-time hands-on training i baking and job skills to eight men and women a year facing major barriers to employment. W

will add trainees as the business grows for a total of ten trainees a year in Years 2 and 3.

Compensation

Executive Chef: Rs. 875000

Bakery Director: Rs. 800000

Training Coordinator: Rs. 487500

Production Manager: Rs.715000

Sous-Chef: Rs 502000

Caf Counter Worker: Rs. 280800

Business Expertise

The Cafs management team represents a strong mix of both restaurant and business skills, a both are equally important in running a successful Caf.

Executive Chef Emmons has twenty years of experience as a successful chef, cookbook autho pastry chef and entrepreneur. She graduated from New York University in 1985 with a degree food service management


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OPERATIONS PLAN:

Facilities:

Natures Bounty will be located on the ground floor of a former industrial building in the centeof CST. The newly renovated space, designed by Mehtas of the restaurant design company CKdesigns, captures the flavor of the old factory space with its tall windows, exposed brick and higceilings. At the same time, the cafe is welcoming and warm, with beautiful lighting, freshl painted tables and chairs, and a big bakery case filled with fresh pastries.

Production Schedules and Processes

Caf Service

The Caf will be open 7 am to 11 pm Monday through Sunday. Customers will walk up to thcash register past the bakery case to place their orders and pay. Orders will be called out wheready for customers to pick up from the counter. In the start-up phase, the Executive Chef will working every day in the Caf, preparing food, taking orders, working the cash register andeveloping the menu to respond to customer tastes. The Sous-Chef will be working 5 daysweek. He will be responsible for prepping food for the lunch rush and, during lunch, assemblinsandwiches. A third Caf worker will work part-time to cover the lunch rush during the week.

Bakery Production

The Bakery will operate from 5 am to 5 pm. Three baker trainers, (including the productiomanager), and trainees will mix, bake and package quality baked goods.

Bakery Production Schedule

Natures Bounty will prepare all baked goods from scratch. Because we will use all naturalingredients and no preservatives, and because all items are sold fresh, everything is prepareaccording to a just -in-time schedule.

Wholesale

We will prepare baked goods for wholesale at the same time we are baking for the retail, takinadvantage of efficiencies of scale.


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Quality Controls

The Executive Chef will be responsible for assuring food safety in the facility. She will maintasanitation through vigilance, with a particular focus on food storage, employees personal

hygiene, and the cleanliness of the equipment and facility. The Baker-Trainers are responsibfor maintaining quality control in the production of baked goods. All items will be prepared frostandardized recipes to ensure quality and consistency. Although the Bakery is a learninenvironment for the trainees, it is also a business, so maintaining quality is the highest prioritBaker-Trainers work alongside trainees, supervising and checking their work, especially early the trainees s ix month program.

Inventory Management

We will operate on a First-in-First-Out (FIFO) food rotation system. The Production Managwill be responsible for checking that all ordered items are received. The Production Manager walso conduct a weekly food inventory and check for spoilage and damage. We will us production schedules that maximize freshness and minimize waste.


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RISK ASSESSMENT AND PLANNNG:

Overview

We recognize the risk inherent in opening a Caf in this area. Our overall strategy to manage riis to have the flexibility and understanding within our operation to respond quickly aneffectively to address problems as they emerge. We have built this flexibility and expertise intour business model in two primary ways:

Qualified management team with necessary resta urant and business experience

Diversified income stream including both retail and wholesale sales

Potential risks include:

High Sales:

Risk: Too many people show up, particularly during peak hours such as lunch between 11:31:30, outstripping our capacity to serve good food quickly. Customers leave disappointed at thquality of the food or service.

Strategy: Our Executive Chef is an experienced restaurant chef. She has been running a burestaurant for 3 1/2 years.

Key Personnel Loss

Risk: The departure of Executive Chef Emmons leaves the Caf without a qualified leader.

The success of the Caf is heavily dependent on the skills, experience, media connections, ancreative energy of Executive Chef Emmons. If she chooses to leave, the business may lack t

capacity to grow according to our projections)

Strategy: Chef Emmons has made a commitment for two years. If she leaves, we will conduct extensive candidate search to find and hire someone with similar gifts, experience, anreputation.


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Health Risks

Risk: Customer experiences a food related illness as a result of eating food prepared at the Caf

Strategy: We maintain sanitation through constant attention Trainees receive training isanitation in their first two weeks in the program. In case of an emergency, we carry liabilitinsurance

New competitors enter the market

Risk: Since there is a very obvious need for better lunch and coffee options in this, it is possibthat other entrants may eventually come as well. This would likely occur if we are successful our business. According to our retail market analysis, there is room in the retail market for ne

entrants.

Strategy: We will continue to differentiate ourselves by offering great-tasting, healthy food wiattention to service, and customers will keep coming back.


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FINANCIAL PLAN

Our projected financials assume significant growth of annual revenue growth in the retail BakeCaf business in Year 1, followed by slower growth in the following two years. Our wholesa

business will grow significantly in Years 1 and 2, followed by slower growth in Year 3.Thoverall driver of our revenues in the early periods of our plan will be our ability to meet aunmet demand for healthy Our affordable meals in the area, as outlined in the marketing sectio

Estimated 100 day plan:

Product Name No. sales @rate (Rs) Total(Rs)

Bread

250 gm 2500 20 50,000

180 gm 3000 15 45,000

Cake

350gm 500 100 50,000

550gm 400 150 60,000

750gm 300 200 60,000

Toast

44 pieces 350 45 15,750

22 pieces 550 25 13,250

Pastry

6pieces/box 1000 30 30,000

cream roll


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5pieces/pack 1000 30 30,000

Cakery Bun

12pieces/pack 1200 20 24,000

20pieces/pack 800 30 24,000

Single pao 5000 3 30,000

Total 4,32,000

Projected Income Statement:Particulars Year 1(Amt in Rs.) Year 2 (Amt in Rs.) Year 3 (Amt in Rs.)

Revenue:

Wholesale 3131250 6006250 7462500

Caf/Retail 4518750 7225775 8791400

Specials 300000 350000 400000

Total Revenue 7950000 13582025 16653900

Cost of Goods Sold:Labour 5064925 5686750 7517225

Ingredients 2782500 4482075 5162700

Total Cost of GoodsSold

7847425 10168825 12679920

Gross Margin 102575 3413200 3973975

Gross Margin

Percentage

1% 25% 24%

Operating Expenses

General &Administrativeexpenses

1564625 2341300 2384700


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Depreciation 311675 311675 311675

Selling Expenses 1062125 1030800 1156350

Total OperatingExpenses

2938425 3683775 3852725

EBIT (2835850) (270550) 121270

-Interest - - -

EBT (2835850) (270550) 121270

-Tax - - 36381

Net Profit/Loss (2835850) (270550) 84889

Statement of Cash Flows :

Particulars Year1 Year2 Year3

Cash Flow from

Operations

Net Income (2835850) (270550) 121270

Plus depreciation andamortization

311675 311675 311675

(Increase)/Decrease inAR

(429700) (281250) (78125)

Increase/(Decrease inAP

525075 230925 21200

Total Cash Flow fromOperations

(2428800) (9200) 376000

Cash Flows from

InvestingPurchase of FixedAssets

(3325000) - -

Total Cash Flow fromInvesting

(3325000) - -


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Cash Flows from

Financing

Partners contribution 6250000 625000 -

Increase/(decrease) indebt

- - -

Total Cash Flows fromFinancing

6250000 625000 -

Increase/(decrease) inCash

496200 615800 376000

Beginning Cash - 496200 1112000

Change in Cash 496200 615800 376000End Cash 496200 1112000 1488000

Projected Balance Sheet

Particulars Year 1 (Amt in Rs.) Year 2 (Amt in Rs.) Year 3 (Amt in Rs.)

Current Assets

Cash 496200 1112000 1488000

Accounts Receivables 429700 710950 789075

Total Current Assets 925900 1822900 2277075

Fixed Assets 3325000 3325000 3325000

Accumulated

Depreciation

311675 623325 935000

Net Fixed Assets 3013325 2701675 2390000

Total Assets 3939225 4524575 4667075

Liabilities

Accounts payable and 525075 756000 813586


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accrued expenses

Total Liabilities 525075 756000 813586

Owners Equity

Partners Funds 6250000 6875000 6875000

Retained earnings (2835850) (3106400) (3021511) Net Income (2835850) (270550) 121270

Total Equity 3414150 3769350 3853489

Liabilities+ Net

Equity

3939225 4524575 4667075

Financial Projections Key Assumptions

Initial Capital Required Rs 6250000 including Rs2650000 for building improvement Rs675000 for equipment and the remainder for start-up working capital.

Revenue Growth - Brisk growth in years 1 and 2 for retail Bakery Caf and wholesal business due to small revenue base.

Operating Expenses Ingredient Cost of Goods Sold (ICOGS) is modeled starting at35% of revenue, narrowing to 31% by year 3. Remaining expenses represent predictabfixed costs such as rent, utilities, insurance and equipment maintenance.

Working Capital Initial working capital of Rs2925000 is enough to cover six monthsfixed costs. A working capital infusion will be needed in Year 2 that will be introduce by the partners.


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CONCLUSION

I am sure that our Bakery food product will succeed as it is having a huge market. The produrange also which we are having is unique and it nearly covers all the necessary qualities whichwill make a unique product. There are large number of people in Mumbai & its nearby citywhich can be served as our customers. Our bakery will be first of its kind hence giving it a firmovers advantage. In India there are large numbers of vegetarian people who account for abo40% of the Indian population. This gives an idea about our target customers. People in Indispend lavishly on their eating habit, only we have to do is to provide best quality Bakery food.

There are many factors that influence the availability of the product. Supply of raw materiashould be within time. Baker and worker should be quick and best so that we can provide ocustomers the quality Bakery food with a faster service. Marketing is especially important for business in retail industry because there is no other person on whom the retailer can rely in thindustry for penetration in the market or diversification.

Marketing is a very crucial activity in every business organization. Every product producewithin an industry has to be marketed otherwise it will remain as unsold stock, which will be

no value.

Documents

127540263 Bakery Business Plan(1)