Start-up Business Plan - Bakery

FIVE SISTERS BAKERY BUSINESS PLAN PREPARED BY: GROUP 9

Fundamental Of Global Business Management Page 1



Five Sister Bakery's Logo (FSB)

Test & Love, and You will come back



Contents

I. EXECUTIVE SUMMARY ..................................................................................................................... 4

1.1. INTRODUCTION ............................................................................................................................................. 4

1.2. THE COMPANY ............................................................................................................................................. 4

1.3. THE MARKET ............................................................................................................................................... 4

1.4. VISION .......................................................................................................................................................... 4

1.5. MISSION ....................................................................................................................................................... 4

1.6. KEYS TO SUCCESS ........................................................................................................................................ 5

II. COMPANY SUMMARY ........................................................................................................................ 5

2.1. LOCATION .................................................................................................................................................... 5

2.2. START-UP SUMMARY ................................................................................................................................... 7

III. PRODUCT .............................................................................................................................................. 8

3.1. PRODUCTS .................................................................................................................................................... 8

3.2. SPECIAL PRODUCTS ...................................................................................................................................... 9

IV. SWOT ..................................................................................................................................................... 10

V. BAKERY LICENSE .............................................................................................................................. 12

VI. MARKET ANALYSIS SUMMARY ...................................................................................................... 12

6.1. MARKET NEEDS ......................................................................................................................................... 12

6.2. TARGET MARKET ....................................................................................................................................... 13

6.3. COMPETITION ............................................................................................................................................. 14

6.4. SALE STRATEGY ......................................................................................................................................... 15

VII. PROMOTION AND ADVERTISEMENT ............................................................................................ 15

7.1. PROMOTION ................................................................................................................................................ 15

7.2. ADVERTISEMENT ........................................................................................................................................ 16

VIII. MANAGEMENT SUMMARY .............................................................................................................. 16

8.1. PERSONNEL PLAN ....................................................................................................................................... 16

IX. FINANCIAL PLAN ............................................................................................................................... 16

9.1. BREAK-EVEN ANALYSIS ............................................................................................................................ 16

9.2. PROJECTED PROFIT AND LOSS .................................................................................................................... 17

X. REFERENCE ......................................................................................................................................... 18



I. Executive Summary

1.1. Introduction

Five Sisters Bakery (FSB) is retail and wholesale bakery shop that will locate in

Oceanside city which is the third-largest city in California. The plan of FSB is to attain and

maintain the interest of our customers with the broad variety of bakery, pastries products, coffee,

and soft drinks.

1.2. The Company

FSB is incorporated in the state of California with the capital of $300,000. We have 6

shareholders, $50,000/each. Our shop will equally own and manage by our 6 partners. These

partners represent sales/management and finance/administration areas, respectively. The partners

will provide funding from their own savings, which will cover start-up expenses and provide a

financial for the first three months of operation.

1.3. The Market

The retail bakery and coffee industry in the U.S. has recently experienced rapid growth.

FSB wants to establish a large regular customer base, and will therefore concentrate its business

and marketing on local residents which will be the dominant target market. This will establish a

healthy, consistent revenue base to ensure stability of the business. High visibility and

competitive products and service are critical to capture this segment of the market.

1.4. Vision

To be an Oceanside’s Premier Bakery creating an exceptional product and customer

service experience to new and loyal customers everywhere.

1.5. Mission

Five Sisters Bakery serves our families, local resident, and community by preparing

baked goods of exceptional quality with competitive prices to meet the demand of the low- to

middle- to higher-income in order to build a strong position in this city.



1.6. Keys to Success

Keys to success for FSB will include:

1. Good location: our shop will be located in 3772 Mission Avenue, Oceanside, California,

which was a community shopping center and near the bus station.

2. Provides the highest quality products

3. Competitive pricing

II. Company Summary

2.1. Location

Our shop is located on 3772 Mission Avenue #119, Oceanside, California, which is a community

shopping center, and mini mall.

- Size: 4.5m x 20m= 90 square meters

- Populations in 2013: 174, 558

- Density: 1,500/square meters

- The median income for

- household in the city was $46,301.

- family was $52,232

- male $34,772

- female $27,962

- The per capita income for the city was $20,329. About 8.2% of families and 11.6% of the

population were below the poverty line, including 16.25 of those under age 18 and 5.7% of those

ages 65 or over.





2.2. Start-up Summary

FSB is a start-up company. Financing will come from the partners' capital. The following

chart and table illustrate the company's projected initial start-up costs.

Capital: $300,000

Start-Up Expenses:

- Legal: $3,000

- Rental: $24,000/year

- Equipments: $40,000

- Decoration: $20,000

- Advertisement: $1,000

- Raw Materials: $5,000

- Security Camera: $2,000

- Utility: $500

- Other: $3,000

=>Total= $98,500



III. Product

3.1. Products

FSB provides freshly prepared bakery and pastry products at all times during business

operations. It means that Bakery and pastry products are prepared during the day to assure fresh

baked goods are always available. We also offer some coffee such as Espresso, Americano,

Cappuccino, Latte…and soft drinks like Coke, mineral-water...etc.



3.2. Special Products

We will offer new taste of cake which is popular in Cambodia known as Tory Cake

(តយខេក).



3.3 Products Menus

IV. SWOT

Strengths

- Good Location

- Good Decoration and Atmosphere

- Provide high quality of product with good services

- Lower employment cost

Weaknesses

- Limited capital

- Many Competitors in California

- Competitors can offer similar products like us

Donuts Old Fashioned $0.70 1 Dozen Donuts $7.00 1 Dozen Donut Holes $2.50 Twist or Bar $1.00 Jelly $1.00 Chocolate Chip $1.00 Muffins Blueberry $1.25 Banana Nut $1.25 Croissants Ham and Cheese $2.50 Ham, Egg and Cheese $3.00 Sausage, Egg and Cheese $3.00 Bacon, Egg and Cheese $3.00 Bread White Bread $2.00 Wheat bread $2.00 Whole grain bread $2.00 Baguette $1.00

Cake Small $15 Big $25 1 slice $3.5 Beverages Hot Coffee $1.50 Cappuccino $2.00 Americano $2.00 Espresso $2.00 Cold Coffee $2.00 Cappuccino $2.50 Americano $2.50 Espresso $2.50 Coke $1.00 Mineral water $0.60



Opportunities

- Stable politic and good economy

- Continued expansion for online sales



Threats

- Changes in regulations can impact the business

- Products are already sole by major competitors

V. Bakery License

Applying for Bakery License

• To sell baked goods in a physical bakery require State’s Business Licenses, Permit & Tax

authority.

• First step in getting state business license for baking is to get a Federal Tax ID number.

As a sole proprietor we may be able to use our social security number.

• Obtain a bakery license application from State Licensing agency. Most site offer from

online, and will need to pay an application fee typically $100 or less.

• To get bakery license, our store will have to be approved by state inspector to ensure that

we meet health requirements, and that the food we produce will not harm our customer.

• We may need additional occupation licenses, so again check with the state. we will be

contacted to schedule an inspection of our facility, and once you pass that, you should

receive our bakery license.

VI. Market Analysis Summary

6.1. Market Needs

Oceanside is a place that has a nice weather which is not cold or hot. The weather is the

same almost the whole year. In that area, there are a lot of workers and labors and all of them

need an easy and cheap breakfast for their daily life. So bread and all the pastry is the first choice

for them. It is a potential opportunity to open this business.



6.2. Target Market

FSB establish a large regular customer base, and will therefore concentrate its business and

marketing on local residents especially employees and labors who will be the dominant target

market. FSB focuses on the low to middle and upper income markets. These

market segments consume the majority of our products. This will establish a healthy, consistent

revenue base to ensure stability of the business. Latino also the 2nd

target of our market. The

catering cake service will be especially utilized by locals for large events and celebrations such

as birthday, wedding, and other parties.



6.3. Competition

Competition in the local area is somewhat sparse and does not provide nearly the level of

product’s quality and customer service as FSB. Local customers are looking for a high-quality

product with a nice tastes and reasonable price. They desire a tasty, hygiene and reasonable

price. Along the Mission Ave area, there are not many bakery shops.

There are the lists of the top competitor around the area

1. San Luis Rey Bakery Restaurant

2. Tan's Donut

3. Yum Yum Donut

4. Alberson Bakery

5. La Perla Tapatia

6. Mission Donut House



6.4. Sale Strategy

As the table below, FSB anticipates sales of about $350,000 in the first year, $500,000 in

the second year, and $700,000 in the third year of the plan.

Sales Forecast

Year 1 Year 2 Year 3

Sales $350,000 $500,000 $700,000

Other 0 0 0

Total Sales $350,000 $500,000 $700,000

Direct Cost of Sales Year 1 Year 2 Year 3

Cost of Sales $90,000 $150,000 $180,000

Other $0 $0 $0

Subtotal Direct

Cost of Sales $90,000 $150,000 $180,000

VII. Promotion and Advertisement

7.1. Promotion

-The first week of grand opening, we will discount 50% of all our product and drink, and give

them a lucky draw gifts.

-We will offer promotion, buy one get one free, every evening from 5pm until 7pm.

-Get a seasonal discount up to 10%

-Provide a member card to get a discount up to 10% in every purchase

-Provide a stamp card that if all customer bought 10 times, they will get one object free.



7.2. Advertisement

We will also promote our shop by the social media such as Facebook, newspaper ads, door

hangers and flyers. Every Thursday evening at downtown Oceanside will host the sunset Market.

They are gathering of local vendors which include a lot of food, drink and live entertainment. So

it will be good for us to advertise our shop and let the people taste our products.

VIII. Management Summary

8.1. Personnel Plan

Personnel Plan


Managers (4 persons) $120,000 $144,000 $168,000

Pastry Bakers (2 bakers) $72,000 $84,000 $96,000

Other $0 $0 $0

Total People 6 6 6

Total Payroll $192,000 $228,000 $264,000

IX. Financial Plan

9.1. Break-Even Analysis

The following chart shows the first year Break-even Analysis calculation for Five Sisters Bakery

(FSB).



9.2. Projected Profit and Loss

As the Profit and Loss table shows, FSB expects to continue its steady growth in profitability

over the next three years of operations.

Pro Forma Profit and Loss


Sales $350,000 $500,000 $700,000

Direct Cost of Sales $90,000 $150,000 $180,000

Other $0 $0 $0

Total Cost of Sales $90,000 $150,000 $180,000

Gross Margin $260,000 $350,000 $520,000

Gross Margin % 74.28% 70% 74.28%

Expenses

Payroll $192,000 $228,000 $264,000

Sales and Marketing (Advertise) $10,000 $13,000 $15,000

Rent $24,000 $24,000 $24,000

Utilities $1,300 $1,500 $1,800

Other $3,000 $3,000 $3,000

Total Operating Expenses $230,300 $243,500 $307,800

Net Profit $29,700 $106,500 $212,200

Net Profit/Sales 8.4% 21.3% 30.31%



X. Reference hthttp://www.lao.ca.gov/LAOEconTax/Article/Detail/113tp://www.bplans.com/bakery_business_pla

n/executive_summary_fc.php#.UPcBc_KHh8E

http://www.lao.ca.gov/LAOEconTax/Article/Detail/113

http://www.census.gov/quickfacts/table/PST045216/0653322

http://www.city-data.com/city/Oceanside-California.html

http://www.bplans.com/bakery_business_plan/executive_summary_fc.php#.UPcBc_KHh8E



http://www.lao.ca.gov/LAOEconTax/Article/Detail/113

http://www.census.gov/quickfacts/table/PST045216/0653322

http://www.city-data.com/city/Oceanside-California.html

Education

Start-up Business Plan - Bakery