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PRECHY BAKES “N” PASTRIES
Prechy Cakes “N” Pastries, owned by Ms. Ogugua Onyinyechi Racheal, produces
and sells variety of cakes, cupcakes, and pastries in the Aba of Abia State. Prechy
Cakes “N” Pastries has been growing 30% per month for the last one year to
become a favorite bakery in the area. Prechy Cakes “N” Pastries goal is to develop
a unique chain of 10 bakeries in Nigeria by 2020, with sales revenue doubling every
two years and net profit increasing by 15% annually. Prechy Cakes “N” Pastries
plans to invest in a new branch in 2017 that requires an additional budget of N5,
000,000. Prechy Cakes “N” Pastries will self-finance 20% from its retained earnings
and is looking for a 2-year loan to cover the remaining 80%. In our bid to help our
community we will donate 1% of our net profit to the less privileged
AND MISSION
Provide customers high quality baked goods at a competitive price, that will create a loyal
customer base.To give customers the opportunity to join us in nourishing the earth
through providing customers freshly baked cupcakes.To create neighborhood
atmosphere where patrons feel relaxed and become instant
regulars
To become a unique, sought-after chain of 10 bakeries in Nigeria by
2020,providing the widest variety of cakes with
traditional recipes using local ingredients.
Easy accessibility of pastries has been a serious problem facing our community for the past year, there is need for a retail bakery in Aba, that offers cakes cupcakes and pastries, by estimations, 70% of its residents finds it hard to get baked goods without having to preorder them. No one provides specialty cakes for customers who have diabetes and vegetarians.
Our Solutions
Eating baked goods made easy by providing freshly baked Cakes, where customers do not need to makes orders, but just walk in and buy cakes
Every one wants to eat healthy, in that view we offer organic cakes for customers who have diabetes and customers who are vegetarians
The market segmentation is divided into three psychological groups
The Celebrators: Celebrators are people that have reasons to celebrate! Birthdays, anniversaries, graduation, Valentine's Day, and Christmas are just a few of the many holidays or special occasions that families and loved ones choose to celebrate with Prechy Cakes “N” Pastries. This market encompasses a variety of people including the young, middle aged, and old, and both men and women.
Soccer Moms: Soccer Moms encompass not just moms, but all family members. Prechy Cakes “N” Pastries serves as a place where families feel both welcome and comfortable. Kids come to enjoy with after school milk and cookies while Mom treats herself to a more elegant dessert. Or "Moms" can meet up with friends to enjoy a baked good and enjoy relaxation in the midst of a busy day.
Walk – in Customers: We have walk‑in customers who just want to enjoy a delicacy. We also have clients celebrating special occasions like birthday, anniversary and graduation.
REVENUE MODEL
We generate revenue through the production of varieties of cakes, cupcakes. Examples of cakes are cheese cake, carrot cake, red velvet cake, chocolate cakes etc.
We offer all paid classes, where we teach people how to bake and decorate cakes and cupcakes. Whether you have an idea of how to bake or not
Revenue will be generated by selling pastries like, Pizzas, Meat pie, Buns, Sausage roll, doughnuts, small chops, cookies
In our effort to give back the community, we plan to start up “BAKERS CLUB” in secondary schools where baking will be taught for free, to build up our future generation to become entrepreneurs, in return we expect to serve them with our products when needed thereby generating revenue
FACTOR ME STRENGHT WEAKNESS COMPETITOR A COMPETITOR B IMPORTANCE TO
CUSTOMER
PRICEVARIES AS PERCUSTOMIZATION
OF THE CUSTOMER
AFFORDABLE EXPENSIVE MODERATE 4
SELECTION ORGANIC BEST IN THE MARKET NOT ORGANIC NOT ORGANIC 5
SERVICE SINCE WE ARE ASTARTUP THESELECTION OFPRODUCTS ARELIMITED AND IT IS AWEAKNESS WHENCOMPARED TO THE
COMPETITORS
WIDE SELECTION OF
PRODUCTS
WILD SELECTION OF
PRODUCTS
5
EXPERTISE THE ONLY SERVICEOFFERED IS ACOMPLIMENTARY
BAKING CLASS
N/A OFFERS VARIETY OF
CLASSES
4
COMPANY
REPUTATION
SINCE WE ARE ASTARTUP WE AREYET TO BEREGISTERED IN THEMINDS OF A LOT OF
CUSTOMERS
SHORT DURATION OFTHE BUSINESS LEADSTO A MODERATECOMPANYREPUTATION AND IS A
WEAKNESS
THEY HAVE AVERY GOODREPUTATION ASTHEY ARE ANESTABLISHED
SINCE 2010
THEY HAVE A VERY GOOD REPUTATION ASTHEY ARE AN ESTABLISHED SINCE 2009
5
COMPETTIVE ANALYSIS
In an era when food is becoming chemistry, Prechy Cakes “N” Pastries will focus on raw, natural, and organic and local ingredients to create its product. Our cakes are homemade, Thus, our products taste better and are better for you. Each of our products contains extra detail to set it apart from the competition. We ensure that our products appeal to the eye as well as to the stomach.
We provide cakes for vegans and people with diabetes theses cakes are highly made from organic raw materials, e.g organic flour organic sugar etc.
We will create an atmosphere where people can take cake, pizza and coffee for breakfast or lunch
Market size
CelebratorsSoccer MomsWalk-in customers
45%
35%
20%
Branding Advertising/
Online Marketing
Referrals Word Of Mouth
Getting a customized packaging for our products to create a niche.
We will incorporate the use of online platforms to reach more audience, platforms such as, our website which will be our major channel, Facebook page, instagram account.We would post pictures of our cakes in blogs.
We will also use the traditional way of marketing to get our customers, by telling them what we do.
We will provide quality baked cake for our customers to get referrals from them.
incentives
We will offer incentives for loyal customers, who patronize us daily.Offer party packages with discount prices to boost word-of-mouth marketing.
Run a baking club in 6 schools by the end of first year
To achieve 99% customer satisfaction and develop repeat customer base
To achieve 70% market customers by the end of 2018
To double sales revenue every two years To Increase our net-profit by 10%
annually Raise funds to support our goals through
interested investors To organize a cake fair by year two
Ogugua Onyinyechi RachealCEO, Chief Baker
Katherine OtisiAssistant Baker
Miracle AndrewSocial Media Manager
OUR TEAM
Prechy Cakes "N" Pastries]12-Month Cash Flow
Period Beginning 8-1-15 9-1-15 10-1-15 11-1-15 12-1-15 1-1-16 2-1-16 3-1-16 4-1-16 5-1-16 6-1-16 7-1-16Period Ending 8-31-15 9-30-15 10-31-15 11-30-15 12-31-15 1-31-16 2-29-16 3-31-16 4-30-16 5-31-16 6-30-16 7-31-16
Cash at Beginning of Period 15,700 25,300 41,900 49,000 59,600 74,300 101,900 135,100 94,100 143,100 205,600 270,950 Cash at End of Period 25,300 41,900 49,000 59,600 74,300 101,900 135,100 94,100 143,100 205,600 270,950 309,450
Operations Aug'15 Sep'15 Oct'15 Nov'15 Dec'15 Jan'16 Feb'16 Mar'16 Apr'16 May'16 Jun'16 Jul'16Cash receipts from (5,000)
Customers 57,800 75,140 45,100 58,600 76,000 83,600 98,800 101,800 129,300 155,000 170,500 120,000 Other operations
Cash paid forInventory purchases (17,000) (22,540) (13,500) (17,000) (22,800) (25,000) (29,600) (30,300) (38,800) (46,500) (51,150) (36,000)General operating and admin expenses (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000)Wage expenses (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000)Interest 0 0 0 0 0 0 0 0 0 0 0 0 Income taxes 0 0 0 0 0 0 0 0 0 0 0 0
Net Cash Flow from Operations 24,800 36,600 15,600 25,600 37,200 42,600 53,200 55,500 74,500 92,500 103,350 68,000
Investing Activities Cash receipts from
Sale of property and equipment 2,800 0 6,500 0 0 0 Collection of principal on loans Sale of investment securities
Cash paid forPurchase of property and equipment (8,000) (5,000) 0 0 (7,500) 0 (75,500) (4,000) (7,500) (15,500) (5,500)Salaries (5,000) (10,000) (10,000) (10,000) (10,000) (10,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000)Operational activities (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (6,000) (6,500) (7,500) (7,500) (9,000)
Net Cash Flow from Investing Activities (15,200) (20,000) (8,500) (15,000) (22,500) (15,000) (20,000) (96,500) (25,500) (30,000) (38,000) (29,500)
Financing Activities Cash receipts from
Issuance of stock Borrowing
Cash paid forRepurchase of stock (treasury stock) 0 Repayment of loans 0 Dividends 0
Net Cash Flow from Financing Activities 0 0 0 0 0 0 0 0 0 0 0 0
Net Cash Flow 9,600 16,600 7,100 10,600 14,700 27,600 33,200 (41,000) 49,000 62,500 65,350 38,500
Cash flow projection for the past year
Capital raise and use of proceedsWe are asking for N4,000,000 for expansion of our business to increase our operations and reach other clients.
COSTS EstimatedFixed Costs
Advertising for Opening 150,000 Basic Website 50,000 Brand Development 150,000 Building Down Payment 500,000 Building Improvements/Remodeling 100,000 Business Cards/Stationery 5,000 Business Entity 15,000 Business Licenses/Permits - Computer Hardware/Software 50,000 Decorating 80,000 Franchise Start Up Fees - Internet Setup Deposit - Lease Security Deposit - Legal/Professional Fees - Machines & Equipment 1,500,000 Office Furniture/Fixtures 250,000 Operating Cash (Working Capital) 340,000 Point of Sale Hardware/Software - Prepaid Insurance - Public Utilities Deposits 40,000 Reserve for Contingencies - Security System Installation 50,000 Setup, installation and consulting fees 50,000 Signage 20,000 Starting Inventory 250,000 Telephone 25,000Tools & Supplies 150,000 Travel 25,000 Truck & Vehicle 1,000,000 Other 1 (specify) - Other 2 (specify) -
Total Fixed Costs 4,800,000
PrechyCakes "N" Pastries
2017 Budget
INCOME Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TotalSalesCakes 500000 525000 550000 575000 550000 525000 525000 550000 575000 600000 650000 650000 6775000CupCakes 150000 100000 100000 125000 125000 150000 150000 175000 200000 250000 300000 300000 2125000Pastries 750000 750000 750000 750000 800000 750000 750000 875000 1250000 1450000 1500000 2000000 12375000
Total Sales 1400000 1375000 1400000 1450000 1475000 1425000 1425000 1600000 2025000 2300000 2450000 2950000 21275000
Cost of Goods Sold (from details section)COGS - Cakes 150000 155000 150000 155000 150000 155000 155000 150000 155000 160000 170000 170000 1,875,000 COGS - CupCakes 45000 30000 30000 37500 37500 45000 45000 52500 60000 75000 90000 90000 637,500 COGS - Pastries 300000 300000 300000 300000 320000 300000 300000 350000 500000 580000 600000 800000 4,950,000
Total Cost of Goods Sold 495000 485000 480000 492500 507500 500000 500000 552500 715000 815000 860000 1060000 7462500
Gross Profit 905000 890000 920000 957500 967500 925000 925000 1047500 1310000 1485000 1590000 1890000 13812500
Non-Operating IncomeInterest Income - Rental Income - Other -
Total Non-Operating Income - - - - - - - - - - - - -
Total INCOME 9.1E+05 8.9E+05 9.2E+05 9.6E+05 9.7E+05 9.3E+05 9.3E+05 1.0E+06 1.3E+06 1.5E+06 1.6E+06 1.9E+06 13,812,500
EXPENSES Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TotalOperating ExpensesAccounting and Legal (20,000) (20,000)Advertising (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (120,000)Depreciation (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (180,000)Dues and Subscriptions (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (120,000)Insurance (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (360,000)Interest Expense - - - - - - - - - - - - - Maintenance and Repairs (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (1,200,000)Office Supplies (130,900) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (1,780,900)Payroll Expenses (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (300,000)Postage - - Rent (45,000) (45,000) (45,000) (45,000) (45,000) (45,000) (45,000) (45,000) (45,000) (45,000) (45,000) (45,000) (540,000)Research and Development (100,000) - - - (100,000) - - - (100,000) - - - (300,000)Salaries and Wages (250,000) (250,000) (250,000) (250,000) (250,000) (250,000) (250,000) (250,000) (250,000) (250,000) (250,000) (250,000) (3,000,000)Taxes and Licenses (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (360,000)Telephone (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (120,000)Travel (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (480,000)Utilities (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (900,000)Web Hosting and Domains (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (60,000)Other - - - - - - - - - - - - -
Total Operating Expenses -895900 -795000 -795000 -795000 -895000 -795000 -795000 -795000 -895000 -795000 -795000 -795000 (9,840,900)
Non-Recurring ExpensesFurniture, Equipment and Software -450000 (450,000)Gifts Given -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 (600,000)Other 0 0 0 0 0 0 0 0 0 0 0 0 -
Total Non-Recurring Expenses -500000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 (1,050,000)
Total EXPENSES -1395900 -845000 -845000 -845000 -945000 -845000 -845000 -845000 -945000 -845000 -845000 -845000 (10,890,900)
Net Income Before Taxes 0 0 0 0 0 0 0 0 0 0 0 0 - Income Tax Expense 0
NET INCOME 0 0 0 0 0 2,921,600
