MGOP Bakery Supplies

Business Plan

BusinessPlan

1.0 Executive Summary

MGOP Bakery Supplies will be a provider of good quality products and

will excel in good customer service. It will begin its operations in year

2014. The main goals of the business are to provide the locality with

top quality bakery supplies as wholesaler or retailer and establish

strong customer loyalty by offering discounts and promotional items.

The establishment ought to provide the best prices on the products to

the customers also; there will be a guarantee on the best customer

service offered by the employees. Financial plans are included in this

business plan (See Table of Contents).

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Table of ContentsTitle Page 1

1.0 Executive Summary 2

Table of Contents 3

1.1 Goals 4

1.2 Mission 4

1.3 Keys to Success 4

2.0 Management and Organization5

2.1 Activities of the Business 5

2.2 Personnel Plan 5

Table 1.0. Personnel Plan 5

2.3 Hiring of Employees6

3.0 Marketing Plan 7

3.1 Product 7

3.2 Price 7

3.3 Place 8

3.4 Promotion 8

3.5 Customer 8

3.6 Competition 8

4.0 Wok Plan 9

Table 2.0. Work Plan 9

5.0 Start Up Capital 10

6.0 Projected Profit and Loss Statement 10

Table 3.0. Profit and Loss Statement 10

7.0 Cash Flow Plan 11

Table 5.0. Cash Flow Plan 11

8.0 Break Even Analysis 11

Table 6.0. Break Even Analysis 11

9.0 Balance Sheet 12

Table 7.0. Balance Sheet 12

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1.1 Goals

Provide bakery supplies as wholesaler or retailer to the locality

Establish strong customer loyalty by giving out discounts and

promotional items or rebates

1.2 Mission

Provide customers with the best prices on the highest quality bakery

supplies.

1.3 Keys to Success

Top-quality products

Excellent customer service

Offer discount prices and promotional items for loyal customers

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2.0 Management and Organization

MGOP Bakery Supplies will be managed by its owner, Mary Grace O.

Pagas. This will be the first year of operation of the business.

2.1. Activities of the Business

a) Managing the overall operations

b) Handling cash transactions

c) Direct selling of goods to walk in customers

d) Delivery of goods to distant customers

e) Accounting

2.2 Personnel Plan

a) Manager (1)

b) Cashier (1)

c) Sales Clerk (1)

d) Utility (5)

e) Accountant (1)

Table 1.0. Personnel Plan

Personnel Plan 2014 2015 2016Manager 1 Php 156,

000.00 Php 171,

600.00Php 188, 760.00

Cashier 1 130, 000.00 143, 000.00 157, 300.00Sales Clerk 1 104, 000.00 114, 400.00 125, 840.00Utility 5 390, 000.00 429, 000.00 471, 900.00Accountant 1 130, 000.00 143, 000.00 157, 300.00Total Employees 9 910, 000.00 1, 001, 000.00 1, 101, 100

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2.3 Hiring of Employees

Applicants were accepted for the vacant positions of: Cashier; Sales

Clerk; Utility; and Accountant. Those with the good qualifications were

examined and subsequently interviewed for hiring.

If sales exceeded from the net income projection, employees

will receive 10% annual salary increase.

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3.0 Marketing Plan

3.1 Product

MGOP Bakery Supplies offers the primary ingredients and supplies in

baking, such as:

- Flour

- Shortening

- Margarine

- Sugar

- Baking Powder

- Milk Powder

- Yeast

- Bread Improver

- Baking Cups

- Food Coloring

- Food Flavoring

- Plastic bags and many more.

3.2 Price

Prices of the products would be ensured to be affordable to the public.

Discounted price will be offered to volume purchases and promotional

items shall be given to customers or rebates.

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3.3 Place

The store is located at the local Public Market of Digos City, Davao del

Sur. This will enable customers’ easy access to the location of the store

as it will be at the heart of the City.

3.4 Promotion

- The products available in the store will be organized neatly and

orderly giving the store a nice setting for customers to easily

shop.

- There will be printed flyers given out to people walking by; also

advertisements on radio and television will be aired for broader

reach to potential customers; ads in social network sites will also

be posted.

3.5 Customers Customers of MGOP Bakery Supplies include bakeshops, pastry shops,

catering services, school and office canteens, and also, walk in

customers.

3.6 Competition

Competition includes the supermarkets and grocery stores. To catch

up to the competitions, the MGOP Bakery Supplies offers high quality

goods, good customer service and delivery service to the valued

customers.

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4.0 Work Plan

Table 2.0. Work Plan

ActivityDay

(Monday - Saturday)

No. of Employees

Cash(Monthly)

Managing the overall operations

Daily 1 Php 12, 000.00

Handling cash transactions

Daily 1 10, 000.00

Direct selling of goods to walk in

customersDaily 1 8, 000.00

Delivery of goods to distant customers

Daily 5 30, 000.00

Accounting Daily 1 10, 000.00

TOTAL 70, 000.00

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5.0 Start – Up Capital

MGOP Bakery Supplies will have Php 2, 000, 000.00 with a minimal

interest of 10% per annum, as a start-up capital to kick off operations.

6.0 Projected Profit and Loss Statement

Table 3.0. Projected Profit and Loss Statement

    2014   2015   2016

Sales Php

24,000,000.00

Php

30,000,000.00

Php

36,000,000.00

             

Purchases  22,460,000.

00  27,000,000.

00  32,875,000.0

0Freight In   120,000.00   130,000.00   150,000.00Good Available for Sale  

22,580,000.00  

27,130,000.00  

33,025,000.00

             Less:            

 Inventory - Ending   350,000.00   455,000.00   280,000.00

  Cost of Sales  22,230,000.

00  27,625,000.

00  33,200,000.0

0

  Gross Margin  1,770,000.0

0  2,375,000.0

0   2,800,000.00  Gross Margin (%)   7.37%   7.91%   7.77%               

  Personnel   910,000.00  1,001,000.0

0   1,101,100.00  Supplies Used   20,000.00   50,000.00   75,000.00

 Taxes and Licenses   30,000.00   40,000.00   50,000.00

  Insurance   40,000.00   50,000.00   60,000.00

 Miscellaneous / Rent   120,000.00   200,000.00   250,000.00

  Telephone Bill   12,000.00   15,000.00   20,000.00  Electric Bill   12,000.00   15,000.00   20,000.00  Water Bill   6,000.00   8,000.00   10,000.00  Interest Expense   200,000.00   200,000.00   200,000.00

     1,350,000.0

0  1,579,000.0

0   1,786,100.00               

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  Net Profit   420,000.00   796,000.00   1,013,900.00  Net Profit Sales   1.75   2.65   3.37

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7.0 Cash Flow Plan

Table 4.0. Cash Flow Plan

  2014 2015 2016

Cash SalesPhp

24,000,000.00

Php

30,000,000.00

Php

36,000,000.00

Less:            

  Purchases  22,460,000.

00  27,600,000.

00  32,875,000.

00  Freight   120,000.00   130,000.00   150,000.00

  Other Expenses  1,150,000.0

0  1,379,000.0

0  1,586,100.0

0  Interest   200,000.00   200,000.00   200,000.00

     23,930,000.

00  29,309,000.

00  34,811,100.

00               

  Total   70,000.00   691,000.00  1,188,900.0

0

8.0 Break Even Analysis

Table 5.0 Break Even Analysis

    2014   2015   2016

Sales Php24,000,000.

00Php

30,000,000.00

Php

36,000,000.00

Cost of Sales  22,300,000.

00  27,625,000.

00  33,200,000.

00

Gross Margin  1,770,000.0

0  2,375,000.0

0  2,800,000.0

0Gross Margin (%)   7.37   7.91   7.77             

Total Indirect Costs  1,350,000.0

0  1,579,000.0

0  1,786,100.0

0

Gross Margin  1,770,000.0

0  2,375,000.0

0  2,800,000.0

0Break Even Point Sales Level   76.27   66.48   63.78

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9.0 Balance SheetTable 6.0. Balance Sheet

      2014   2015   2016Asset              

  CashPhp

2,070,000.00

Php

2,761,000.00

Php

3,949,900.00

 Inventory   350,000.00   455,000.00   280,000.00

               

  Total  2,420,000.

00  3,216,000.

00  4,229,900.

00               

Liabilities and Capital             

  Capital  2,000,000.

00  2,000,000.

00  2,000,000.

00

  Income   420,000.00  1,216,000.

00  2,229,900.

00               

  Total  2,420,000.

00  3,216,000.

00  4,229,900.

00

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