Business plan for a bakery

 

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Business plan for Sunshine Bakery

 

Company Summary

Sunshine Bakery will be located in downtown Mellville in a historical building. This
downtown district is a very popular destination because of the historical architecture for
weekenders and tourists.

 

Company Ownership

Currently Sunshine Bakery is a sole proprietorship owned by Merlin Hull. Eventually, as
the company becomes established, Sunshine Bakery will apply to be incorporated.

 

Start-up Summary

The primary expense to establish the Sunshine Bakery is the mortgage loan estimated at
R1,750,000 to purchase the vacant space on 7th street. The building was previously
used as a bakery and we plan to buy the used equipment along with the space. This cost is
also calculated into the loan estimate. Merlin Hull intends to invest R70,500 of her savings to
cover the other cost of start-up.

These costs include:

 

business plan objective Advertising brochures.

business plan objective Bakery ingredients.

business plan objective Insurance.

business plan objective Bakery accessories, i.e. paper bags, cartons, etc.

 

 

Products

Sunshine Bakery provides specialized cakes and cupcakes at premium prices for special occasions.  The following flavours will be available vanilla, lemon, strawberry, chocolate, cheesecake, cherry cream and blue berry.

 

Market Analysis Summary

 

Our focus will be to target weddings, birthday parties, Easter celebrations, bachelorette parties and stork teas.

 

Market Segmentation

 

Our target market consists of three groups:

 

The Wedding Group


The wedding industry is booming and Sunshine bakery will focus on this group for whom a premium price can be charged for specialized and custom made cakes or cupcakes.

 

The Parties Group


This group will probably pre-order a variety of flavours, and it is not such a labour intensive order, because they will probably go for the less expensive option of choosing our standard products.

 

The Individual Buyer or “Walk-in” Group


Sunshine’s premises in the Bellville area, is a very popular destination because of the historical architecture for weekenders and tourists, which makes this segment a lucrative option.  We will focus on window display to attract passersby.

 

Target Market Segment Strategy

 

In our target market, we will mainly focus on the "wedding group" since they will spend the most per order. We expect that the "parties" and the '"individual buyer" group will make up a smaller portion of our customers.
We are specifically filling the speciality cakes needs of the "wedding group", so we expect the
most business from this group.

 

Industry Analysis

Sunshine Bakery competes in the Food Services Industry. In addition to competing with
other specialized cakes bakeries, it competes with all restaurants, delis, bakeries and
supermarkets for a share of its customers' food expense. Sunshine is most concerned with
competitors who differentiate their products and services with a creative and arty focus.
Because this group is so large, Sunshine has chosen to limit its analysis to other specialized cakes
bakeries.

 

Competition and Buying Patterns

 

Currently there are two bakeries in town that provide specialized cakes:

 

Cupcakes from Heaven

 

Strengths: Stocks freshly baked cupcakes and cakes. Well-
established bakery in town. Sells cakes in local grocery stores.

Weaknesses: Does not provide a wide selection of flavours. Furthermore the texture
and flavor of their cakes is very dense and lacks zest.

 

Life is Beautiful Patisserie
Strengths: Makes cakes and brownies every day. Will make custom-ordered non-
gluten cakes.


Weaknesses: Does not produce a wide selection or large quantity of cupcakes. Their
main focus is traditional flavour large cakes.

 

Strategy and Implementation Summary

Our strategy focuses on serving a niche market with quality goods. We are determined to
become a part of the community—an establishment that becomes as much of the community
as a church or local grocery store. To achieve these goals, we will provide the following:

 

business plan objective Friendly, neighbourhood-feel atmosphere

business plan objective Quality baked goods for everyone to enjoy at a fair price

business plan objective Visually attractive cakes and cupcakes

business plan objective Coffee sales will be higher in winter months, and for summer months sales of sodas

 

Competitive Edge

 

Our competitive edge is our quality of goods. We use only products of the highest quality
that create incredible feathery cakes that can’t be matched. We also
focus mainly on whimsical and modern flavours and designs. The other bakeries in town focus on traditional flavours.

 

Sales Strategy

 

Our strategy focuses on building a customer base by providing good customer experience.
With the addition of the coffee bar and lunch menu in early spring, we hope to have customers
make the bakery their one-stop destination for breakfast or lunch. In the summer, when we
open the outdoor patio, more and more customers will make the bakery a destination for their
lunches more often since the atmosphere will be so pleasing.

 

Sales Forecast

 

Our sales forecast assumes the following changes:

  • Cake sales in the summer months will be slightly higher since the wedding season is at its peak during summer months.
  • Coffee sales will increase during winter months.

Please insert a Sales forecast graph here, indicating the projected sales for 12 months.

 

Management Summary

 

Merlin Hull is the founder of Sunshine Bakery. She brings to the bakery her experience as
a baker and as an entrepreneur. She has worked as a baker for over 10 years including two
years as an apprentice in a well-known Paris patisserie. As a teenager she helped her parents
at the family's general store, both in sales and marketing. For her last two years at her
family's store, she was the general employee manager. Her duties at the bakery will include
employee hiring and training, head baker and store management.

Robert Morgan has run his own successful CPA consulting firm for 15 years. His duties will
include the bookkeeping, inventory management and stock fulfilment.

Marlene Hendricks runs her own PR company and will be assisting the Sunshine Bakery in its
marketing campaigns on a part-time basis.

Debbie Reitz has worked as a baker for over five years and will be the assistant baker. Her
responsibilities will also include the management of the bakery shopping list.

 

Personnel Plan

 

Once the bakery becomes established and the cash flow is steady, we would like to hire one
person for counter help and another assistant baker.

The new hirings will coincide with the opening of a lunch menu and coffee bar which will most certainly require more help.

 

Financial Plan

Please refer to our Financial Plan page for more information on what the Financial Plan entails.

Break-even Analysis

Please refer to our Break Even Calculator for a formula to calculate the Break-even point.

 

Projected Cash Flow

Click here to download a Cash Flow template.

Projected Income Statement (Profit and Loss)

Click here to download an Income Statement template.

Projected Balance Sheet

Click here to download a Balance Sheet template.

 

 

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