Topic: Create a business plan

Submitted to:
Mr. Puneet Bawa 11809362 Gunji Surya Prakasa Rao RROE03A20
11810341 Kari Venu Babu RROE03A21
11812237 Karnuthala Anu Kumar RROE03A23
11801203 Kesani Bharat RROE03A11
11907069 Atul Thakran RROE03A46
11906507 Abhishek Singh RROE03A45
11905527 Dalip Kumar RROE03A43
Bakery in
Hambran -
Punjab

Business
Plan
 Executive Summary
 Amazing Cakes Bakery is bakery that bakes and sells Cakes, Pastries and Confectionary Items.
The aim is to appeal to the people of Hambran village in Punjab.
 We aim to provide delicious cakes and pastry that would satisfy the palate of the target audience
and make them happy with amazing experience.
 We target to start with a small bakery in the district and then expand to other locations if one
location proves profitable. The plan also include a dine-in café after sometime once break-even
is achieved and bakery seems financially profitable.
MIND Map of Business Plan
 Understanding Target Group and Location
 Hambran is a village located in the Ludhiana West tehsil, of Ludhiana district, Punjab.
Hambran is a township in Punjab state in India. Located in the Ludhiana District close
to Mullanpur Dakha, 17 Km ( 10 miles ) west of Ludhiana.
 The population of this town is around 3500, approx. 740 families
 Since this is a small township in Punjab, user base is also relatively small.
 In places like this, people order Cakes and Confectionery Items usually for special occasions
only as they might have to travel to farther places to buy the same.
 We need to understand the demand about baked goods and figure out a plan to carry out the
marketing and promotions.
Operation
Plan
Operational Plan usually lays out the activities that needs to be carried out for smooth
functioning of day-to-day operations. It would include the following activity:
 Administrative Functions
• General & Administrative functions including legal, marketing, bookkeeping, etc.
• Sourcing and storing ingredients
• Hiring and training staff
 Kitchen Functions
• Food preparation
• Ongoing menu creation and modification
 Store/Retail Functions
• Order taking and fulfillment (for take-out and dine-in)
• Customer service
• Janitor/maintenance personnel to keep the store clean
 Licenses for Bakery Business
The five major licenses required for bakery business in India are:
1. FSSAI License: A complete paperwork and FSSAI license fee is required to avail of this license. Since it is a bit complex
process, it is advised to get a five-year food license to avoid renewal every year.
2. GST Registration: The professional help of a Chartered Accountant is needed. It is important to understand the application
and implication of GST imposed on the bill by the bakery owner.
3. Health License: A local Municipal Health Inspector provides a Municipal Corporation Health License by charging some fee.
4. Fire License: After the installation of fire extinguisher cylinders, a fee is charged by the local fire department depending
upon the scale of operation of the bakery.
5. Trademark and Copyrights: Trademark of a logo, symbol or name of the shop is important for the purpose of branding and
marketing of the bakery items. Trademark registration forbids other people from using the same logo or symbol. Thus,
creating a unique identity of the bakery. One may also choose copyright recipes. This will help to protect the taste and
influence of special products on the customers even if the chef is changed. The process of application for registration of
trademarks is governed by the Controller General of Patents, Designs & Trade Marks. It is only after the application is given
one can use TM, and once registered, one can use symbol R. However, application of copyright registration is governed by
the Copyright Office.
 Menu of the Bakery
 Pastry --- Rs. 75/- (Butterscotch, Strawberry and Vanilla) Considering the location
of the Bakery, items on
 Cake --- Rs. 475/Kg ( Dark Forest, Red Velvet and Double Chocolate)
the menu have been
 Cookies --- Rs. 85/400 gm. priced accordingly.
 Brownie --- Rs. 75/pc.
 Cup Cakes --- Rs. 25/pc.
 Doughnut --- Rs. 30/pc.
 Packed Goods --- At M.R.P
 Coffee --- Rs. 25/-
 Tea --- Rs. 15/-
 Bread --- Rs. 40 per loaf (White Bread), Rs. 60(Brown Bread), Rs. 80 (Multi-gram
Bread)

 Note --- Order for Birthday Parties or any other functions can also be placed.
 Daily Production Value
 Cakes --- 8 Kg.
8 units of half kg Cake
4 units of 1 kg Cake
Average Time for Production --- 1.5 hours of Preparation, 2.5 Hours for Baking and Storage
 Cup Cakes/Brownies/Doughnut/Pastry --- 20 Units each
Average time for production --- 2 hours for preparation, baking and storage
 Cookies --- 2 kg. each day
Average time for production --- 1.5 hours for preparation, baking and storage
 Bread Loaves – 10 bread loaves
Average time for production --- 2 Hours for preparation, baking and packing
 Coffee and Tea would be made using coffee/tea machine – shall take 3 mins – made to order.

With the help of One Baker and one assistant when done simultaneously, the preparation for opening the store can be done within 3 hrs. Starting early in
the morning and finishing by the time store needs to be opened.

Bakery Operating Hours – 10.00 AM – 7 PM

 Short term Operational Plan(First 2 years)
 Short team plan for bakery is to achieve a break even within a span of 1 st year.
Post achieving break-even point in the bakery business, the plan is to add more offerings:
 Start making profits on monthly basis.
 Expand the Menu and add a dining and café area.
 Hire more bakers and Service staff
 Long Term Operational Plan(5 yrs. plan)
 If the bakery manages to achieve the short term plan, the long term plan is to:
 Expand to other cities and start franchisee bakeries:
Franchising would bring in additional regular income along with one time high franchising fee.
 Tie-up with restaurant to supply baked goods
 Hire marketing team and invest more in marketing efforts.
 Increase online presence – getting listed on delivery apps, setting up own website and accepting
orders, increasing presence on social media platforms.
 Launch Schedule
Milestone Timeline
Completing the legal formalities By 28th Feb, 2021
Finalizing the paperwork By 5th March, 2021
Finalizing the location By 8th March, 2021
Machinery and Equipment set up By 15th March, 2021
Menu Preparation By 25th March, 2021
Marketing the Bakery By 30th March, 2021
Launch the Bakery By 1st April, 2021
Bakery Layout

This shows the structure of the

bakery.
Marketing
Plan
Internet penetration is on the lower end, the marketing strategies need to be more focused towards
offline marketing campaign such as leaflet distribution, promotion through tasting events.
Efforts towards WhatsApp promotion could be made as it’s a widely used app for communication even in
smaller town of India.

Offline Marketing:
• Pamphlet/Flyer which contains a list of variety of cake and confectionary
available, their pricing and contact information to place the order to be
distributed to inform everyone about the bakery.
• At the time of festival, special discount offers can be printed and
distributed across the time.
• The information about Free Delivery should also be mentioned.
• Tasting Event can be arranged on the day of opening. This would help in
bakery promoting the quality and variety of the cake, cookies, bread and
other confectionaries available at the Bakery
• One to One interaction at event with the Visitor and collecting their
feedback and telling them more about offerings at the bakery
 WhatsApp Marketing:
A user database of people using WhatsApp could be created at the
time of event. Also, whenever someone places an order, we can
ask them if they would like to be notified about different offers
and discounts via WhatApp messaging. This would help us get
connected to user for a longer time.

 Facebook Connect
Adding existing customer on Facebook can help the bakery
connect with user and keep track of their celebrations and send
curated offers to them to drive sales and promotions. This will
also make user feel more connected to the local business.
 Instagram Marketing:
With internet penetration improving even in small towns and
villages, the youngsters are starting to use more and more
social media. Instagram is all about catchy images and running
ad campaigns. We can run Instagram to post beautiful pictures
and capture more audiences.

 Business Listing on Internet:

The bakery’s information can be listed on Google and other
business listing sites which will help us connect with customer
whenever they are searching for nearby bakeries.
Financial
Plan
 Financial planning would include expenses and source of revenue.
 Expenses Planning: Expenses could be listed in two broader categories:
 One time/Fixed Expenses: For purchasing Machinery and Setting up the Bakery
 Recurring Expenses: Expenses that would have to borne on regular basis such as rent, raw materials, man power
salary, maintenance of machinery and miscellaneous expenses.
 Financial Forecasts also need to be prepared which would include the following:
 Balance Sheet Forecast
 Profit and Loss Forecast
 Break-even Analysis Forecast
 Cash Flow statement Forecast

Note: Since the business is at an initial state, the financial reports are forecasted to the best of our knowledge
of market and demand for baked goods. Actual finance might differ.
 One time expenses
 One time expense would include the following:
 Paint and Renovation of the space where we are planning to set up the bakery. This step would also include
installation of wall units, storage units and a front desk where orders can be checked out. It would cost around
Rs.15,000
 Machinery: The following machinery would be required at the time of initial set up. Further upgrades and additions
could be made depending on the operating profit.
o Planetary Mixers – Medium Size – Rs. 40,000
o Oven – Triple Tray – Rs. 35,000
o Deep Fridge – Rs. 35,000
o Working Table with Cooling Fridge – Rs. 60,000
o Gas stove and Cylinder Connection – Rs. 15,000
o Storage utensils – Rs. 4,000
 Business Licenses Fee – Rs. 25,000

One time Start Up Cost: Rs. 2,14,000

 Recurring Expenses
 Monthly Rent: Rs 5000
 Salary for Baker: Rs. 15,000
 Salary for Self: Rs. 15,000
 Raw Materials: Rs. 10,000
 Miscellaneous Expenses: Rs. 4,000 – Rs. 5,000

Expenses in a Month: Rs. 50,000

 Sources of Revenue
 Sale of Cake: Forecast sale of 2 per day at 475 = Rs. 950
 Sale of Bread: Forecast sale of 10 loaves at average price of Rs. 60 = Rs. 600
 Sale of Cookies: Approximate worth of Rs. 350 per day
 Sale of Doughnut/Pastry/Cup Cakes = Rs. 500 per day
 Sale of other confectionary items: Approx. Rs. 300 per day
 Other Misc. items such as dairy products and Ice creams: About 500 per day. These are
commission based.

 Total forecasted revenue: 80,000 with Variable of 10,000 up or down.

 Cash Flow
Forecast
Cash Flow Statement   Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22

Opening Balance   0 30500 21500 23000 24500 24500 26000 26000 31000 31500 28500 25500

Cash Incoming                          

Sales   80000 70000 72000 74000 74000 76000 78000 85000 85000 80000 75000 75000

Commission from sales of packed

goods   4000 5000 5500 6000 6000 6500 6500 6500 7500 7500 7000 7000

                           

Total Incoming   84000 75000 77500 80000 80000 82500 84500 91500 92500 87500 82000 82000

Cash Outgoing                          

Purchases (Stock)   15000 15000 16000 17000 17000 18000 20000 22000 22000 20000 18000 18000

Accountant Fees   1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500

Advertising and Marketing   1500 1500 1500 1500 1500 1500 1500 1500 2000 2000 1500 1500

Insurance   1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

Rent   4500 4500 4500 4500 4500 4500 4500 4500 4500 4500 4500 4500

Salary   30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000

Total Outgoing   53500 53500 54500 55500 55500 56500 58500 60500 61000 59000 56500 56500
 P&L Statement Forecast
Profit and Loss Forecast Apr21 - Mar22
Sales 999000
Less - Cost of goods sold 218000
   
Gross Profit/Net Sales 781000
   
Expenses  
Accountant Fees 18000
Advertising and Marketing 19000
Bank Interest 4500
Rent 54000
Salary 360000
Income Tax 15900
Total Expenses 455500
   
   
Net Profit 325500
 Balance Sheet Forecast

Asset     Liabilities  
Cash 330000  A/c Payable 72000
Insurance 12000  Loan 214000
Equipment 189000  Owner's Equity 248000
Total 531000    534000
         
         
Break Even Analysis
 Human
Resource Plan
Human Resource Plan would include resources that would help in set up and functioning of bakery.
Initial Set up plan:
Painter, Carpenter, Architecture Consultant, Menu designer and marketing material designer and
printer and CA.
Daily Operations:

Baker + A person to man the shop

Note: a prep person to help the baker is also needed but since this is a bakery in a small town the
preparation could be done in advance and the person manning the bakery can also help.
Note 2: Since this is a small scale bakery the human resource plan would differ from a large scale
bakery which are run into urban areas.
 Code of Conduct for Employees
 Be on time
 Be polite to customers
 Always smile when addressing the customers
 Maintaining Hygiene
 Dress Neatly
 Be Proactive
 Keep a tab of Inventory and when it needs to be refilled.
Conclusion
 Steps involved in making a business plan are same whether the business is small scale or large
scale. Only the operations, finances and marketing effort differs basis the target audience.
 Extensive expenses and marketing should be avoided for small scale businesses.
 Financial Plan should have a scope for miscellaneous expenses to accommodate unforeseen
expense.
 A small bakery could always be scaled higher if the operational activity is proving to be
profitable. Scaling from smaller operation is advisable rather than incurring huge expenses at an
initial stage itself.
Thank You!