BUSINESS PLAN

Rafeeahs
Delicious
Doughnuts
!!

Name:Rafeea
Venue:Bergvliet
h Edwards
Primary School

Table of Contents
Executive Summary........................................................................................... 3
Objectives....................................................................................................... 3
Mission................................................................................................................ 3
Goals for my Business........................................................................................ 3
The Business....................................................................................................... 5
Business Concept............................................................................................... 5
Target Market...................................................................................................... 5
Needs Analysis................................................................................................... 5
Survey Questions................................................................................................ 6
Financial Plan...................................................................................................... 7
Start-up costs..................................................................................................... 7
Cost for 100 doughnuts...................................................................................7
Other Expenses.................................................................................................. 7
Selling Price of doughnuts.................................................................................. 7
Projected Expenses and Profit............................................................................ 7
Record of Receipts and Payments.......................................................................8
Profit and Loss Statement...................................................................................8
Production Plan.................................................................................................. 9
My Product.......................................................................................................... 9
Production.......................................................................................................... 9
Method............................................................................................................... 9
Marketing Plan................................................................................................. 10
My Businesses Market...................................................................................... 10
Advertising and Promotion............................................................................... 10
Product price and sales.................................................................................... 10

Executive Summary
The owner of the business is Rafeeah Edwards. Delicious Doughnuts is a
specialty doughnut business that provides divine doughnuts to customers.
Doughnuts will be made above the average size and customers will be able to
choose their own toppings from a nice variety of options.
The main market of my business would be learners at the school, their parents,
teachers, neighbours, and people at my fathers work, family, friends and
parties. The business will also have a pre-order service for things like birthday
parties and cake sales.
Delicious Doughnuts anticipates the initial investment of R250 to start off with.
The initial target is to sell 100 doughnuts per week which will allow it to show a
healthy profit of R240 per week.
Objectives
Delicious Doughnuts has established a few objectives it wishes to achieve in the
next year:
1. Sell 100 doughnuts on the entrepreneurs day
2. Make a profit of more than R200
3. Grow the business to 200 doughnuts per week

Mission
The mission statement of the business is twofold:
Product Mission - Provide customers the finest quality, large and cheap
doughnuts.
Economic Mission Operate and grow at a profitable rate through good
business decisions.

Goals for my Business

I would like to learn these skills:

How to be creative and make different types

doughnuts.
How to advertise.
How to sell and convince people into buying
my product.
How to design cool doughnuts.

Profi t
I want to be able to make R800 profit per month after I have made about
R7000.By next year I would like to have made approximately R33000.

Dates by which I want to achieve these goals

I want to achieve these goals by mid-October 2014; I will work hard on making
the right amount of profit. Once the business earns a reputation I will start an
order and deliver service.

Owners of the Business

The owners of the business will be I working from my home and selling it in
different places. I will use my different resources and skills and make the
doughnuts using help form other people.

What I will put into the Business

I will put R1000 into the business which will cover all ingredients, equipment
needed to make everything and also marketing expenses. The investment will
also cover delivery costs and the other monies required to start up business.

My Responsibilities
My responsibilities are to buy all materials, do the planning, look after financial
responsibilities (e.g. making sure the business makes profit) and ensure that
there are no wastages and unnecessary spending in order to keep the business
running. I will advertise my business via posters, word of mouth, and later a very
small advert in the community newspaper.

The Goal of the Business

The long term intention of the business is to create a wide variety of doughnuts
and develop it into a novelty business that targets parties and larger events.

The Business
Business Concept
Delicious Doughnuts is a speciality doughnut and beverage business which
includes doughnuts which will be fresh and of a large size and value for money
and allows people to create their toppings for their doughnut that they order, The
business also allows orders to be taken for parties etc. especially for weekends
and offers a free delivery service in a 5km radius.

Target Market
Delicious Doughnuts will focus on three main markets:

1. All learners especially the lower grades from

Grade 1 to 4 which makes up about 300
to 400 learners. Learners enjoy sweet
things and always like to create their
own unique flavours when it comes to
luxuries (e.g. Ice Cream)
2. Teachers and parents that will visit the
school on entrepreneurs day.
3. People at my dads work and neighbours

Needs Analysis
A sample of people from the grades were interviewed to see if they would be
interested to purchase such products during breaks and before and after school
and place orders for parties and weekends if they enjoy it. A few neighbours
were also interviewed and the response was very positive.
The following is a sample of the survey that was used to interview approximately
63 learners. They were from various grades and included boys and girls whereas
the girls made up 70% of the sample of 63.
Neighbours were also approached and the response as positive provided that is
tastes nice and the price is good.
This shows that the business idea is good and that
and strawberry icing is not a good topping to use.

smarties

Survey Questions
Please tick the appropriate boxes:

Questions
1

Would you buy large cupcakes?

Are you interested in choosing

your own toppings for the
doughnuts?

Would you be interested in the

following topping?

How much are you willing to pay

for these doughnuts?

Ye No
s

The results of the survey shown in the following table:

Questions

Ye N
s
o

Would you buy large doughnuts?

54

Are you interested in choosing your

own topping for the doughnuts?

56

Would you be interested in the

following toppings?

63

Smarties

44

19

Whispers

60

Chocolate Mouse

63

Strawberry Icing

25

38

Vanilla Icing

50

13

Chocolate Icing

63

Positioning in the Industry

The main competitors are the fellow entrepreneurs at school, Woolworths, Spar,
Checkers and other bakeries.
This business idea is good because these shops do not offer the option to
customize your own doughnuts with a selection of your own toppings. They also
sell their doughnuts in quantities of 6 or 8 and it is also very small. I will be
selling doughnuts individually and the price will be cheaper and the doughnuts
will be larger.

Suppliers of Product Ingredients

The products use standard ingredients such as flour, milk, sugar, eggs etc. and I
will be sourced from Cash n Carry such as Makro that allows you to buy in bulk
at a good price.

Financial Plan
Start-up costs
The following appliances are required to make the doughnuts and I will be using
my parents appliances.

Stove
Mixer
Mixing bowls
Measuring jug
Metal spoon
Piping bag
Muffin trays

I will using R250 as the capital to start the business this money will come from
my savings.
Cost

for 100 doughnuts

16 eggs R20
400g castor sugar R4
1 litre oil R11
720g cake flour R5
Baking powder(200g) R15
1 bottle vanilla essence R5
Icing sugar R10
Topping R50
Mini doughnut holders R30
Electricity& Transport R50

Other Expenses
The main costs are the electricity and transport costs which I have to pay my
parents. This is estimated to be R50 in total for transport and electricity. Printing
costs for the flyers are R20 for 10 flyers and I also need gloves for serving cost of
R10.

Selling Price of doughnuts

The doughnuts will be at a price of R4.00 for basic topping and R5.00 for a
decadent topping.

Projected Expenses and Profit

Sales of 100 doughnuts = R500

Costs for doughnuts=R200

Other Expenses:
Advertising space = R5
Premises Hire = R5
Flyer = R20
Gloves = R10
=R50
=R250
My aim is to sell 100 doughnuts initially.

Record of Receipts and Payments

The Makro receipts will be kept for the cost of ingredients.
My parents will provide an invoice for the transport and electricity costs.

Profit and Loss Statement

Profit = selling price cost price
=R500 R250
Therefore:
Profit = R250
Selling price per doughnut sold = R5
Cost price per doughnut sold = R2
Profit = R5 R2
=R3
This means that the business will run at a R3 profit per doughnut.

Production Plan
The unit costs = the costs of producing 100 doughnuts/no. of doughnuts
=R200/100 = R2.00 per doughnut

My Product
My product is a selection of colourful, delicious doughnuts in chocolate, vanilla
and strawberry icing in special mini doughnut holders.
Additional toppings are added using a special squeezer as
required by the customer.

Production
Raw materials/ingredients

4
3
1
1
4
1

large eggs
quarter cups castor sugar
tsp. vanilla essence
cups cake flour
tsp. baking powder
cup fish oil

Method
1.
2.
3.
4.
5.
6.

Cream eggs and sugar until light for about 5 minutes.

Add 1 teaspoon of essence, fish oil and then beat.
In a separate bowl sift the cake flour and baking powder.
Fold the dry ingredients into the mixture.
Add cup of milk.
Bake at 180

Marketing Plan
My Businesses Market
The main market of my business would be learners at school, their parents,
teachers, the people at my fathers work, family and friends and birthday parties.
I will also have a pre-order service for things like birthday parties, cake sales and
other events.
Please see flyer on the last page

Advertising and Promotion

I will use pamphlets to hand out on the day and arrange for advertising on the
school notice boards. This has been included in the expenses of businesss
promote my product further; I will provide people with free tasting samples
because people usually buy thins once they tasted it.

Product price and sales

I will sell the doughnuts at a price of R5.00 each and I want to able to sell 100
doughnuts a week.