Everbest Bakery Business Plan - Case Study Example

Everbest Bakery Business Plan EVERBEST BAKERY BUSINESS PLAN Executive Summary Everbest is a new bakery in Glasgow whose missionis to give the people of Scotland baked goods of high quality using the most innovative methods and the most current technology. Our products will be freshly baked desserts and breads. We intend to use the ingredients of the highest quality. This will satisfy the people of this area for they have been longing for a high class bakery. We will be located along the major roads of the city and we have a convenient parking bay for our customers. All our bakeries will have tablets which will be easy to use in order to create their own imagined designs of the cakes and in turn help our bakers to have as many designs as possible; hence our business will stand out among others. We value good customer service and therefore we will make sure that our service is up to date with the ever changing technology. This will keep us to the mark of competition and remain friendly to the customers. The bakery will belong to the partnership of 5 people. There are no bakeries in the area and therefore this will give us a break through. We only have few competitors as threats one of the major competitions is the big supermarkets, Milton, marsh and best choice bakery. Although economy has gone from good to bad it has not affected the bakery industry. “The consumer price index for food, an indicator of bakery product values, rose 4.7 percent in September 2011 compared to the same month in 2010” (“Hoovers”). We will focus on the changes in customers’ needs such as preference, pleasure, health, and convenience. Middle class citizens are mainly our targets. But we will also give the lower class people and opportunity to access our products in a well created section in our bakeries. These sections will have breads and cakes from one day old. We are going to have average prices but keep up to date the quality and quantity in our production. Our objective is to be able to attract from 200 customers and above. We expect the customers of all ages and regardless of their sex, religion, color, or race. If our prediction goes right, we will be able to make about $500 in any single day and this will translate into $13000 in a month. Because of the current technology we will be able to contact our customers through internet. That is by the use of all available social sites such as face book, twitter and so on. By having our own website we will be able to display all our products and service to hundreds of potential customers. We also plan on advertising our business to the local dailies, televisions, and radios in order to introduce our business to the customers. We are also coming up with beautiful displays that will have strong aesthetic appeal. Brochures that are designed to inform the customers about the varieties in our bakeries and their prices will be in place before we start. We are going to print business cards alongside brochures. For the financial assistance we are going to approach our local bank to lend us startup capital. We predict to start up with $50000 and pay by the end of one and a half years. For the labor, we are going to start with four workers and the remaining work input will solely come from our family members. In the beginning we will only need two minimum-wage workers aside from the three of us participating in the business plan to run the bakery but more may be added as finances allow it and demand requires it. Our Business Idea We have experts in our team and after a study on the feasibility of the bakery in this region, we have discovered that Glasgow city and Scotland at large a more personal and home town bakery. We also found out that other bakeries came before us in the city, tried and failed terribly. This turn it a risky venture. Therefore we need to have equipment, tactics and high skilled laborers and good capital to start with. We cannot start selling cakes and breads without the local government permits and licenses. After we fix these challenges, then our business will move forward unopposed. The people in this town desire for a classic and luxurious bakery. This need coupled with the fact that majority of the people in the city belongs to upper middle class will propel the business forward. This will force us to provide the baked products with high quality. Having this in mind we will focus quality of the baked goods. We will defeat our opponents by creating an area where everyone is allowed to go and design his or her own fashion of the cake. This brings the customers closer to the company and maintains them for a long term. In these sections we will have fun and easy to use tablets locked on tables. These tablets will help the customers to create their own imaginations. When we couple this with the expertise of our bakers we will be able to give them their dream cakes and cupcakes. This is one of the interactions with the customers that will make them feel they have taken part in the manufacturing of their dream products. The main idea is to create a closer feel of the customers and keep our production at par with the technology. It will be very easy to order any of our products online through our website. It will be easier to design your cake online. All this will be just by a click from the comfort of the customers’ home. Incorporating technology in our production set us apart from other competitors in the Glasgow town and in Scotland at large. Our bakery will not be sit and eat paces but we anticipate it to be a place where a customer will come and pick what they may have designed at home or at our shops or select any other of our products and go. In all our shops we will create a place with sits and tables where a customer can sit and wait for us to serve him or her. We are strategically located in the middle of the town and our branches are along the major roads of the city. Fortunately our competitors are situated at the edges of the town and we believe any passer by will spot us before them. Our business operations will run through Monday to Saturday, from 5.00 a.m. to 5.00p.m. For our product to be fresh, we will bake them during the night and early in the morning. During the day we will be baking the customers’ own designed cakes. Our work during the day aside from selling will be helping the customers make the right choice and helping them to create their imagined designs. Any question about the company will, be readily available with them. In case any bug arises with the technology, we have experts ready to assist the customers. When our goods are not sold by the end of the day, they will be sold the following day to the low class people at a price lower than the fresh one. If they are not sold the following day we will donate them to rescue centers. This will enhance our relationship with the local community. Marketing strategy Everbest, that set a distinction in selling bread and other pastries. We are keeping our quality on track but at the same time have reasonable prices. We want to make selling and interaction with the customers enjoyable by incorporating technology in most of our services. Higher income and the top of middle class consumers is our main target. Our location in the city and along the major roads creates an easy access to for them. Although this is a small group to work with, we have also created sections for the low class earners. Our targeted customers are working class and some of them have their families with them. Therefore, we expect our daily customers to lie between 200 and 300. Our prices Our local competitors’ prices will be slightly lower to ours mainly because we want to maintain the good quality of our products. Targeted customers mainly from the top middle class earners are a factor to affect our prices. Price may fluctuate from time to time depending on the raw materials and our competitors, to avoid a big gap between our prices and theirs. In the table below, are some of the basic commodities we expect to sell and their prices. We will be distributing our products through our local stores. Customer will be selecting directly from the store or order online or through telephone. Special orders will be baked after the order is placed. Promoting our bakery As mentioned above we will contact our customers mainly through internet using social platforms such as Facebook, twitter and our website. Our products, their prices and how to select them will be on the brochures. We will publish business cards with all the relevant information to direct the bearer to our business location. We will have beautiful window display to appeal to the customers. We are going to place adverts on the local newspaper to inform customers of our business. We will also use local radio stations to put the message across to our customers. Our practice of selling a day old products at half price will also market us. We will try to go to local coffee shops and give them flyers and stickers to promote Everbest bakery. Involving ourselves in community based activities such as giving our products to the needy will market as Break even analysis Financial plan for the bakery Everbest bakery expects plan to borrow $50,000 as a 5-year loan. This will help financing the startup capital. Appendices Other competitors’ prices The above prices were stated at the beginning of the year 2015 and they are subject to change b) Finances Expected income for five years Expected Total expenses for five years Profit and loss accounts (year one) Expected worst scenario best scenario Gross profit 186775.68 153461.44 286972.08 Expenses 132, 000.00 132, 000.00 132, 000.00 Net Profit 54,775.68 117,653.56 154972.08 Profit and loss accounts (year Two) Expected worst scenario best scenario Gross profit 196775.68 143461.44 296972.08 Expenses 138000.00 138000.00 138000.00 Net Profit 58775.68 5461.44 158972.08 Profit and loss accounts (year Three) Expected worst scenario best scenario Gross profit 206775.68 163461.44 300972.08 Expenses 143000 143000 143000 Net Profit 63775.67 20461.44 157972.08 Profit and loss accounts (year Four) Expected worst scenario best scenario Gross profit 220775.68 180461.44 310972.08 Expenses 152500 152500 152500 Net Profit 68275.68 27961.44 158472.08 Profit and loss accounts (year five Expected worst scenario best scenario Gross profit 250775.68 200461.44 330972.08 Expenses 162000 162000 162000 Net Profit 88775.68 38461.44 168972.08 Bibliography ABRAMS, R. M. (2013). The successful business plan: secrets & strategies. Palto Alto, Calif, Planning Shop. Read More