Sheilas Cake Decorating and Bakeshop - Essay Example

BUSINESS PLAN Sheila Cook SHEILA’S CAKE DECORATING Address Line Address Line 2 ST ZIP Telephone Fax E-Mail Table of Contents Table of Contents 2 II. Executive Summary 3 II. Executive Summary Sheila’s Cake Decorating and Bakeshop is determined to become the people’s choice as source of freshly baked products that will remind you of mom’s homemade pastries. Due to the hectic lifestyle of working mothers, there is not much time left for planning nutritious meals moreover baking pies and pastries. The Bakeshop is ideally located in the middle of the city, right across schools , banks, and churches; thus, making it a very convenient place for a quick snack. Students, mothers, office workers, as well as church goers will find this cozy place as a refuge from the urban jungle. Aside from baked goods, light snacks such as sandwiches and salads is also offered. Aside from the delights from the bakeshop, customers in need of a specialized cake with plain or even elaborate decorations can be ordered from here. The prices are very competitive and lead time for orders is only a day’s notice. There is also a bookshelf in the nook that contains classic literary books that can be read. Since the bakeshop is a place to meet for different reasons, there is a cork board where messages can be written . The place is envisioned as an important part of one’s routine since sipping coffee, reading newspapers, and buying goodies for children waiting at home is a joyful task that can be accomplished in Sheila’s Bakeshop. In the next few years, it would have more loyal customers patronizing its wider array of baked goods. New customers will be gained as word of mouth advertisement will work effectively for the promotion of the bakeshop. Many satisfied customers would refer the bakeshop to family, friend, and clients. As the bakeshop gains reputation for having baked goods served with friendly service , it may develop another franchise in some parts of the city. III. Company Summary ___________________________________________________________________________ 3.1 Company Summary Sheila’s Cake Decorating and Bakeshop is a sole proprietorship type of business. The owner has extensively trained in baking at international baking schools under the tutelage of renowned bake decorating professionals. More importantly, The owner is also an MBA graduate from Wharton University specializing in Finance. The owner has substantial personal savings invested in this business; however, a loan from one of the private banks will boost the capital formation in terms of baking equipments that needs to be purchased. 3.2 Company Ownership Sheila’s Cake Decorating and Bakeshop is registered in the state of Alabama. It is single proprietorship type of ownership. 3.3 Company History Sheila’s Cake Decorating and Bakeshop is a start-up business. The financing will be supplied by the savings of the owner. A loan is currently applied for in one the state’s banks. IV. Marketing Plan 4.1 Market Analysis The main goal of Sheila’s Cake Decorating and Bakeshop is to supply the demands of the population for baked products as well as give the most artistic cake decoration that is reasonably priced. Nevertheless, people visiting the city like tourist will be an additional base of customers since this bakeshop would be one of the main reasons why people visit this State. 4.2 Market Segmentation Sheila’s Cake Decorating and Bakeshop focus on the young professionals, students ,and mothers belonging to middle- and upper-income markets Majority of these segments like the students will never fail to patronize any of the specially-baked pie. Mothers, husbands, or even children would always be filled with awe as they see the elaborate cake decoration inspired by the Victorian era or any theme requested for by the customers. Local Residents Since Sheila’s Cake Decorating and Bakeshop would be catering mainly to local residents working or living in the area, the company would be doing some promotional campaigns that will improve attract more people to spend time in our mini-café. 4.2.1 Target Market Segment Strategy The dominant target market for Sheila’s Cake Decorating and Bakeshop is a regular stream of office professionals, mothers fetching their children from school, and students from nearby colleges. The loyal patronage of the clients will be brought about by the cozy ambience of the bakeshop, friendly customer-service, and reasonably priced baked goods. The aforementioned features of Sheila’s bakeshop will create a large client base in the future. 4.2.2 Market Needs The food establishments surrounding the city are usually fast-food chain, Chinese restaurants and French outdoor café. The rest are specialty restaurants that cater to the upper-class clientele that is suited for meetings and business presentations. However, college students need a place to grab a quick bite and chat with friends and classmates. More so, mothers who fetch their children from school need a place to stay while waiting for the dismissal. This can be done leisurely at Sheila’s bakeshop without pinching their pockets even on a daily basis. The busiest time of the shop would be early morning, lunch time, and late afternoons. As for cake decoration services, competitors in the area only accept private services. Since Sheila has a bakeshop, this will serve as a good showcase for the artistic designs. 4.3 Competitive Edge The main competitive edge of the bakeshop is the cozy environment that it provides making a favorite place of people who want to eat cakes and pastries while enjoying a good chat. The Cake Decoration aspect is really good since more and more people are intrigued by the cakes being done. V. Financial Plan Sheila’s Cake Decorating and Bakeshop expects to raise $100,000 of its own capital primarily from the owner’s savings. It will borrow $100,000 from a local bank which will be paid in five years. 5.1 Break-even Analysis The Break-even Analysis of this business will be based on the average of the first-year figures. The average of the first-year figure will be for total sales by units, and by operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed costs. Having a conservative assumption gives a more accurate estimate of real risk. As soon as the business sales grow steadily until the fourth month, then it will reach the Break-even point. Break-even Analysis Monthly Units Break-even 16,255 Monthly Revenue Break-even $39,410 Assumptions: Average Per-unit revenue $2.42 Average Per-Unit Variable Cost $0.35 Estimated Monthly Fixed Cost $33,703 Read More