Sifted Bakeshop

Organizational
&
Financial Plan

1
 Background

SIFTED BAKESHOP is a brainchild of the two sisters who had been into producing
and selling cakes and pastries on-line. The initial intention was to experiment
potential viability of their hobby in baking which had been their childhood passion.

For the past two (2) years of informal operation over the web, it was indeed
determined that the business is progressing as shown from positive responses and
consistent increasing trend in sales orders from customers.

For the year 2016, the informal venture realized gross revenue amounting to Php
208,000.00 with a net profit of Php 55,000.00. Relatively, the amount of revenue is
proportionate to the scale of investment that the owners put into the business.

Considering the relevant personal hands-on experiences gained in producing and

marketing bakeshop products, the venture is now aiming to grow by expanding its
operations. However, such vision will only materialize if additional funds can be
obtained from interested partners who are willing to add value to the business.

Additional funds that may be acquired shall be utilized to augment existing capital of
the business and will be used primarily in purchasing additional equipment, setting
up a storefront in strategic location, establishment of operating capital, procurement
of raw materials inventory and other expenses deemed necessary to position the
new bakeshop in the market.

Thus, this organizational and financial study was initially undertaken to kickstart the
establishment of the business.

2
 Organization

PROPRIETOR

OPERATIONS
MANAGER

HEAD BAKER CASHIER

ASST. BAKER/ SALES ASSISTANT

DELIVERY PERSON

ASST. BAKER/
DELIVERY PERSON

3
 Duties & Responsibilities

A. General Manager

1. Oversees bakeshop staff to ensure the quality standards are

enforced. That means making sure bakery staff comply with
customer service and safety policies.
2. In charge of hiring, developing and terminating bakery staff.
3. Responsible for scheduling employees and ensuring payroll stays
within the budget.
4. Tracks inventory and calculates proper amount of ingredients
necessary for production of baked goods on a given day or week.
5. Monitors demand for each kind of pastry to know how much to
supply.
6. Ensures profitability of the bakeshop by working within the
confines of the bakery's budget in order to maximize sales.
7. Involves in determining prices of baked goods and tracks sales,
labor and inventory costs.
8. Enforces standards regarding food handling practices, safety and
sanitation.

4
A. Operations Manager

1. Manages inventory, monitoring supply for accuracy and adequate

supply at all times.
2. Handles purchasing/procurement operations as required; places
orders and monitors shipment to ensure timely delivery.
3. Establishes solid relationships with vendors; negotiates
competitive pricing with vendors to reduce supply costs.
4. Provides supervision, coaching, guidance and support for all
personnel to ensure optimal performance.
5. Prepares, manages and maintains baker budget, implementing
cost containment initiatives as required.
6. Responsible for general HR functions, including monitoring
schedules and conducting staff training.
7. Manages open and close procedures, including reconciling daily
sales and transactions.
8. Participates in safe preparation of food items; enforces safe food
preparation/sanitation guidelines.
9. Serves as company representative at marketing events; promotes
company to increase sales/business growth.

5
B. Head Baker

1. Reports to the Manager.

2. Supervises and coordinates activities of personnel in bread-baking
department.
3. Plans production according to daily requirements.
4. Requisitions supplies and equipment.
5. Maintains production records.
6. Trains and manages subordinate assistant bakers.
7. Assigns duties and monitors performance of subordinates.
8. Corrects errors and responds to complaints.
9. Hires, trains and discharges subordinates.
10. Supervises assistant bakers, schedules work hours, and resolves
conflicts.

6
C. Asst. Baker/Delivery Person

1. Assists Head Baker in preparations of bread, cakes, pastries and

other items.
2. Maintains the bakery area in a neat and hygienic manner.
3. Assists Head Baker in lifting heavy sacks of flour and other baking
items.
4. Assists in operating baking machineries and implements.
5. Maintains and sanitize baking utensils, tools, implements and
machinery.
6. Involves in developing new delicious bakery products and to meet
customers’ orders and tastes.
7. Delivers orders to customers as the need arises.
8. Performs other duties as may be ordered from time to time.

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D. Cashier

1. Greets all customers in a friendly and welcoming manner.

2. Records customer orders into the POS System, ensuring each
and every request is fully and accurately entered.
3. Informs , Sales Assistant through the POS System or verbal
communication, of customer special requests/adjustments.
4. Identifies customer issues/complaints and take necessary steps
to correct them.
5. Performs returns and special transactions through the POS
System.
6. Keeps the “register station” stocked with all necessary items.
7. Cleans and organizes the Cafe area when necessary.
8. Assists assigned employees with cleaning the Cafe area area.
9. Notify management of all customer and POS System issues.
10. Consistently maintain a balanced drawer.
11. Perform other related duties as requested.

8
E. Sales Assistant

1. Welcome customers as they arrive at the bakery and respond to

their queries regarding baked products
2. Provide customers with information on freshly baked products
and their ingredients
3. Assist customers in choosing cakes, pastries, cookies, breads
and pies according to their specific tastes
4. Pick chosen pieces, inquire how customers would like them to be
packed and pack them according to specific instructions
5. Ring up sales on the POS system and process credit card and
cash payments
6. Assist in carrying purchases to customers’ cars and thank them
for their business
7. Procure fresh ingredients for baking goods and assist bakers in
preparing and mixing them
8. Remove baked goods from ovens and place them on cooling
racks
9. Pack cooled baked goods in appropriate packing and label them
with price and expiry information
10. Assist in decorating cakes, pies and cookies
11. Carry baked goods to the frontend and place them aesthetically in
display cases
12. Set up and update information regarding the day’s specials or
specific offers in window displays

9
 Floor Layout

12
11

7
8 9

5 4
6 1

2
10 13
3

Legend:

1. Oven Area 7. Shelving Area

2. Mixer area 8. Cash Register
3. Counter Space with Overhead 9. Display Area
Storage 10. Cooler
4. Counter Space 11. Sitting/Cafe Area
5. Sink Area 12. Entrance Door
6. Shelving/Rack Area 13. Back Door

10
 Start-up Costs

Start-up costs are expenses that will be incurred during the organizational and
pre-operating stage of the business and funds to be allocated from the capital
contributions of the partners prior to its full operation. These expenses would
include, among others, the following:

Organizational Expenses

Business Registration 1,500.00

Business Permits and Licenses 3,000.00
Social Security Registration 3,500.00
National Health Insurance Registration 1,000.00
Tax Registration 3,000.00
Electricity & Water Installation 10,000.00
Advance Rentals 75,000.00
Marketing Media Production 20,000.00
Legal and Professional Fees 10,000.00
Bakeshop Opening and Bake Trials 20,000.00
TOTAL 147,000.00

Capital Expenditures

Storefront Construction 350,000.00

Bakery Equipment Purchases 400,000.00
Benches and Shop Fittings 100,000.00
Furniture and Fixtures 80,000.00
Office Equipment (Computer & POS) 70,000.00
TOTAL 1,000,000.00

Operating Capital (3months)

Cost of Sales ( 118,000.00x3) 354,000.00

Operating Capital (94,783.33x3) 284,350.00
TOTAL 638,350.00

Grand Total 1,785,350.00

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 Monthly Cost of Sales
These are expenses which are directly related to the
production of bakery products such as raw materials, direct
labor and packaging supplies, general breakdown and cost
assumptions of which are as follows:

1. Direct Materials .............. Php 50,000.00

2. Direct Labor (Bakers) ....... 55,000.00
Head Baker (35,000.00)
Asst. Bakers (2x10,000.00)
3. Production Overhead ...... 13,000.00
Total 118,000.00

Monthly Operating Costs

1. Salaries and Wages Php 33,000.00

Store Manager ............... 15,000.00
Cashier ........................... 9,000.00
Sales Assistant .............. 9,000.00
Total 33,000.00

2. Social Security, Philhealth

Pag-ibig Fund Employer Share 2,200.00

3. Office Supplies
1,000.00

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4. Equipment Repairs and Maintenance 1,000.00

5. Marketing & Advertising Expenses 2,000.00

6. Delivery Expenses 2,000.00

7. Professional Retainers Fee: 6,000.00

Bookkeeper/Accountant 3,500.00
Government Office Liaison 2,500.00

8. Rental Expense 25,000.00

9. Telephone & Internet Subscription 3,000.00

10. Web Hosting & Administration Maint. 1,250.00

11. Water and Electricity 10,000.00

12. Depreciation Expense 8,333.33

Store Building 350,000.00

Bakery Equipment 400,000.00
Benches and Shop Fittings 100,000.00
Furniture and Fixtures 80,000.00
Office Equipment (Computer & POS) 70,000.00
Total 1,000,000.00

Estimated Life: 10 years

Total Monthly Operating Costs 94,783.33

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Statement of Financial Position (Initial)

ASSETS:

Current Assets:
Cash (3mos. Operating Capital) 638,350.00
Property, Plant & Equipment:
Leashold Improvements (Storefront) 350,000.00
Bakery Equipment 400,000.00
Benches & Shop Fittings 100,000.00
Store Furniture 80,000.00
Office Equipment 70,000.00
Total 1,000,000.00
Other Assets:
Prepaid Rentals 75,000.00
Pre-operating Expenses 72,000.00
Total 147,000.00
Total Assets 1,785,350.00

LIABILITIES & EQUITY:

Liabilities:
Current Liabilities -
Loans Payable -
Total Liabilities -

Equity:
Owner’s Capital 1,785,350.00
Retained Earnings -
Total Equity 1,785,350.00

Total Liabilities & Equity 1,785,350.00

14
 Statement of Comprehensive Income
2017 Projection

%
Gross Sales 3,600,000.00 100
Less: Cost of Sales 1,416,000.00 39

Gross Income 2,184,000.00 61

Less: Operating Expenses

Salaries & Wages 396,000.00
Government Dues (SSS, Pagibig, Philhealth) 26,400.00
Office Supplies 12,000.00
Repairs & Maintenance 12,000.00
Marketing/Advertising Expense 24,000.00
Delivery Expense 24,000.00
Professional Fees 72,000.00
Rental Expense 300,000.00
Telephone & Internet 36,000.00
Web Hosting & Administration 15,000.00
Water & Electricity 120,000.00
Depreciation Expense 100,000.00
Total 1,137,400.00 32
Operating Income 1,046,600.00 29

Less: Income Tax (25% estimate) 261,650.00 7

Net Income 784,950.00 22

Average Monthly Sales 300,000.00

Average Daily Sales 10,000.00
Average Monthly Profit 65,412.50

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