Online Cake Selling Venture - Example

Business Report for Online Cake Selling Venture Student name: Institutional Affiliation: University: Business Report for Online Cake Selling Venture 1.0 Executive Summary Tech Cakes will be a medium scale Australian retail electronic company that can be accessed online by our customers. The company deals with special order cakes for unique occasions which are sold to our customers at an affordable price We will operate from a remote location in the Australian suburbs but all our dealings with customers happen online. There will be only one head quarter of the company which includes a bakery where all the cakes are made. Customers will not be allowed inside the premises for sanitation purposes. Also, they would not have the need to be at the location because all dealings of the business happen online. The remoteness of the location is so as to keep the immediate environment open enough for adequate ventilation of the bakery and include adequate safety precautions. The remote location also allows us to put up enhancing satellites to boost internet signal and make connectivity optimum (Watson, 2010). Tech Cakes will provide both a product and a service. The product we offer is a cake or cakes to our customers. The orders are placed online with an upfront payment after which the company begins to make the cake as needed. We offer customization in the type and appearance of the cake according to the customer’s preferences. In addition, after the cake and payments have been made; the cakes are delivered to the doorstep of the client. The capital needed to start the business will be $50,000 to cater for leasing the building, buying baking material and equipment, acquiring technology for the electronic part of the operations and to purchase the satellite. It will also be used to buy material and clothes and appliances for the staff. Investing in the company would be a wise business venture for those who will be involved. The food industry never runs out of customers so they can be assured of the business staying in top shape. In addition, the incorporation of technology, making it an online venture, expands our client base and makes it easier to meet the customer’s needs as required. More customers will want to use the company’s services more (Centrelink, 2010). 1.1 Business Purpose The purpose of this business is to provide cake baking and delivery services to our customers using the internet as our middle man. It is the obligation of the business to provide the best cakes to their clients. In addition, the cakes should be baked with an exact similarity to the customer’s demands. The company will be responsible for responding to all the online requests and finishing them in time. Prompt delivery of the cakes will be made at all times. The company will provide customers with a simple and clearly explained online interface in the company’s website. Another objective of the company is to ensure delivery of impeccable products while conforming to the safety and quality provision. 1.2 Product/ service detail When a customer goes online to order a cake, writing options are available as well as video conferencing. There will always be someone monitoring the network for any activity so that they can respond to inquiries and orders in real time. Customers will not need to waste too much time or wait long for a response. This secures more clients. Customers give all the details needed including their location, deadline and type of cake. The chances of being erroneous will be minimal due to this. Every customer will have an account in the company’s network so that any new information is recorded on there where the staff can always check on update about the order. After the customers have made their payments electronically, the staff begins to work on the cake. The money first provision will ensure that there are no hiccups in the accounts like for instance some people may be ordering as a joke. On finishing the cake, a company delivery person is sent to deliver the package to the specific customer (Autodesk, 2004). 1.3 Competitor Analysis The main competitors for this venture are established bakeries and private catering companies that have been around for a longer time. The markets that are targeted by these competitors are wholesale businesses and retail outlets. Because they provide a bulk of products at a cheaper price, their main advantage will be that their prices are lower. Other markets include educational institutions which employ a similar strategy of providing more goods for lower prices. The potential customers at these institutions are the students who may want to use the same products in their homes. Competitors also use variety of products to attract customers as opposed to just cakes (FNDI, 2004). Tech Cake will experience some barriers in an attempt to enter into the market. These barriers include having a hard time finding the location for the head quarters. To overcome this, locations will be scouted out in collaboration with community development projects. In addition, it will be difficult to advertise effectively online because of the existence of many other online advertisements. To make the advertising strategy better, hardcopies of the advert material will be put on notice boards with information about the website links. Being a medium scale business, it will be harder to compete with larger businesses. The focus will be on maximizing medium scale production and not competing with large scale businesses (ACOA, 2010). The most likely reactions and responses from competitors are: They will include electronic features in the running and carrying out of the transactions. Competitors will increase their frequency of advertising for products that are similar to the ones that the company will have. Competitors may include delivery services as part of their businesses too. Features and benefits matrix Feature Description Benefit Tech Cake online website The website will be used to take orders and make payments Simplicity for the customers Special occasion cakes Cakes will be customized to the customers preferences The quality of the product will be dictated by the customers. Higher standards will be achieved. Home deliveries Orders are delivered to the customer’s door step when finished Increase the company’s effectiveness by easing the load for the customers Remote location Company will be located in a remote area Enables workers to be more efficient thus improving quality of production. The area will be safer and adhere to sanitation and other health codes more efficiently Medium scale The business will function on a medium scale production Since the business is new, it will be easier to meet customer’s needs adequately. 1.4 Financial Projections The products and services that will be sold are: Cakes Delivery services Customization costs The minimum amount for selling a cake will be $30. However, the prices will vary depending on the type of customization required, the size of the cake and the material that will be incorporated in the cake’s final look. In addition, the delivery services will also be affected by the size of the order. For instance, an order that is for a party will require more shipping space and material for packaging. An additional determinant will be the distance of the destination from the company’s location (Richards, 2011). With an estimate of about 40 orders a day, the cakes will be sold for $30 dollars each inclusive of the delivery and customization costs. On their own delivery is about $4 per cake which amounts to $160 daily and customization is $6 per order which amounts to $240 per day. Cakes will go at $20 each which will amount to $800 per day. The total monthly income for the first month will be $36,000. This value will be realized from a progression of more sales as shown in the graph below. It is recommended that more research be done about the market, the competitors and ways to deal with barriers to entry in the market. In conclusion, the business is bound to alter some of its methodology as it takes root. Tech cake is a venture that will utilize both the field of technology and business to a mutually beneficial end. References Autodesk. (2004). Features and benefits matrix. Retrieved June 10, 2011 from http://www.calcad.com/products/docs/MapGuide%206.5%20Features%20and%20Benefits.pdf Atlantic Canada Opportunities Agency (ACOA). (2010). Planning for success: your guide to preparing a business and marketing plan. Retrieved June 10, 2011 from http://www.acoa.ca/English/publications/FactSheetsAndBrochures/Pages/How_to_prepare_a_marketing_Plan.aspx Centrelink. (2010). Executive summary. Retrieved June 10, 2011 from http://www.centrelink.gov.au/internet/internet.nsf/about_us/executive_summary.htm First Nations Development Institute (FNDI). (2004). Business plan example. Retrieved June 10, 2011 from http://www.firstnations.org/publications/4BusinessPlanExample.pdf Richards, D. (2011). Writing a business plan – Financial projections. Retrieved June 10, 2011 from http://entrepreneurs.about.com/od/businessplan/a/financialproj.htm Watson, K. (2010). IMS electronic music business report. 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