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8/12/2019 Ppt fon Bakery Idea
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BUSINESS ENTREPRENEURSHIP
SUNSHINE
BAKERY
ANKITA TALREJASEC B
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BRIEF DESCRIPTION OF PROJECT & PRODUCT
The proposed Bakery & Confectionery shop is a small scale project with
a production area and sales out-let. It will be equipped with basicmachinery and fixtures. The production area will require covered area
of 2,700 sqft and the outlet will be established on 900 sqft. The sales
outlet will remain open for business for 16 hours per day around the
year.
Product mix will include cakes, snacks, sweets, biscuits, bread and
general confectionery items. This merchandise will be prepared and
acquired according to the demand of local customers and in quantities
directly proportional to expected sales.
Out of total sales revenue 70% will come from bakery items and balance
30% from general confectionery items. Maximum sales are expected during
Eid seasons and in winters. First year revenues of the project are
estimated to be Rs
11.24 million. It is expected that production growth rate will be 5%
per annum along with 10% per annum increase in sales price.
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CRITICAL FACTORS
Background knowledge and experience of the entrepreneurin the bakery business.
Induction of trained human resource for production ofrequisite items.
Maintenance of quality and hygiene standards.
Pricing strategy & understanding requirements of the targetcustomers.
Decor presentation and layout of the shop and products.
Location considerations for easy access of the customers.
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INSTALLED & OPERATIONAL
CAPACITIES
The sales of bakery items is 70 % of total salesrevenue. The installed capacity of bakerydepends on the variety of the products being
produced. Installed capacity of majorproduction items is cakes 23,758 pounds,40,470 pieces of snacks, 11,812 pounds ofsweets and 11,800 pounds of mixed biscuits .
Starting capacity utilization is 70% of theinstalled capacity growing at the rate of
5% per annum.
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POTENTIAL TARGET MARKET
Areas having presence of middle income groups in thesmaller cities will be an ideal location for opening sales outletof the business. Ideally, production facility of the workshopshould be located alongside the sales outlet; however, if the
rental costs are a constraint, production facility can beestablished at a distant economical location. In such a case,higher transportation costs may need to be factored in.Smaller cities with growing middle income group such asSargodha, shekhupura, Gujrat, Sukkur, Hyderabad,Nowshehra, Charsadda, Khuzdar and Gilgit are some of theprospective cities for setting up this business.
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Space Requirement
The space requirement for the proposed bakery and confectionary unitmainly includes the production hall, store room and a retail outlet. Forthis purpose it is recommended that a rented place of maximum 3,600sqft (i.e. 2,700 sqft for production space and 900 sqft for outlet) would be
acquired on rent basis in the vicinity of newly developing housingsocieties in the major cities. The production space and bakery outletcould be acquired at separate places. However, it should be ensured thatboth the facilities are located closely for easy supply of produced goodsto the outlet.
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Useful Project Management Tips
Technology
Required spare parts & consumables:Suppliers credit agreements andavailability as per schedule of maintenance be ensured before start ofoperations.
Energy Requirement: Should not be overlooked and alternate source ofenergy for critical operations be arranged in advance.
Machinery Suppliers: Should be asked for training and after salesservices under the contract with the machinery suppliers.
Quality Assurance Equipment & Standards:Required products quality
standards need to be defined on the packaging and a system to checkthem instituted, this improves credibility.
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Marketing
Product Development & Packaging : Expert's help may be engaged forproduct/service and packaging design & development.
Ads & Point of Sales Promotion: Business promotion and disseminationthrough banners and launch events is highly recommended. Productbrochures should be acquired from good quality service providers.
Price - Bulk Discounts, Cost plus Introductory Discounts : Price should notbe allowed to compromise on quality. Price during introductory phase maybe lower and used as promotional tool. Product cost estimates should becarefully documented before price setting. Government controlled pricesshall be displayed.
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Human Resources
Adequacy & Competencies: Skilled and experienced
master chef should be considered an investment and
be retained on better terms, if necessary
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Exit Strategies
A sale is always an option: the question is how much can you get for yourcompany? The key is to find suitable buyers who assign a high value to yourcompany. Generally, the more potential buyers, the better, since then you canestablish a market price.
Most business brokers recommend you start planning for a sale at least 3-5 yearsin advance. This may sound overly cautious, but in many cases even 5 years is notlong enough. As a business owner it is very easy to become overly attached toyour business and lose sight of what the business really looks like to an outsider.What makes your company valuable to you may not have any impact on apotential buyer.
The payment of the employees can be made from the cash which is earned aftersale of the company.
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FINANCE
Description Amount Rs.Capital Cost
Plant and Machinery 11,24,750
Furniture, Fixture and Office Equipment 2,70,000
Motor Vehicles 45,000
Pre-operating Cost 1,20,000
Total Capital Cost 15,59,750
Working Capital
Raw Material Inventory 1,06,692
Up-front Building Rent 2,25,000
Cash 1,50,000
Total Working Capital 4,81,692
Total Project Cost 20,41,442
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THANK YOU