NAME - ADITI VIJAY SHITOLE

CLASS – SYBMS(HR)

ROLL NO – 215719

SUBJECT – BUSINESS PLANNING

TOPIC – BUSINESS PLANNING: CAKE BUSINESS

1) About Product: The cakes shop
2) About market for the product
3) How my product is different from (product differentiator)
4) Market segmentation
5) Market penetration
6) Customers
7) Costing
8) Overheads
9) Profitability
10) Sustainability
1) About my product:
Brand Name: The Creamy Creations

It is my retail business specializing in producing and/or selling cakes,

cupcakes, muffins, sponges, as well as other baked goods that fall under the
title of a cake. All the products are baked on site in the same manner to that
of a bakery.
1. Business Plan

Business Overview – It includes the concept of bakery business and the

type of service I am going to provide, the layout of my bakery and the
service type, a sample menu, and the details of the management team.
Industry Analysis – Doing the Industry Analysis is extremely important
before opening a bakery business. It would help I identify the
competition in my area, analyze the target audience for my bakery, and
help I choose the right location for my bakery business.
SWOT Analysis – The SWOT Analysis of my bakery business would
help I identify the Strengths, Weaknesses, Opportunities, and Threats
associated with my bakery business.
Operations Plan – The Operations Plan of my bakery business includes
the details about how my bakery would function, such as order-taking,
menu, service, staff management, raw material procurement etc.
Financial Analysis – The Financial Analysis of my bakery business plan
should include the cash flow statement, the operating costs, the fixed and
the recurring expenses, etc. This would help I gain the financial viability
of my bakery business.
Marketing Plan –The marketing plan talks about how I will be attracting
customers and promoting my bakery.

2. Location for my Bakery Business

One of the first steps to how to start a bakery business in India is to
decide a good location. For a bakery, the ideal location is a reputed
market or high-end shopping streets where footfall is high. Ideally, front
area shops on the ground floor, which are easily accessible and visible,
are apt for the bakery business. It is advisable to have a 500 sq ft. shop,
divided into two floors, to build a functional kitchen on one level, and
have a display cum serving area at another. However, this is subjective to
the space available and my own choice. For a 1000 sq ft area divided
between two floors, the rent should not exceed more than Rs 60-70k. My
expenditure would be around Rs 1, 80,000 to acquire the place where the
bakery will operate. Also, while finalizing the location of the bakery, it is
essential to ensure that the place has a proper water supply and drainage
facility. I need to get an appropriate legal agreement for the property as it
is also required in paperwork and other licenses. I need to even get a No
Objection Certificate (NOC) from the property owner that he has no
problem that his place would be used for food outlet purposes.

3. Getting all Licenses Required to Open a Bakery Business in India

Similar to the Quick Service Restaurant format, the bakery business also
needs five licenses: FSSAI license, GST Registration, Local Municipal
Corporation Health License, Police Eating House license, and the Fire
License. Out of all the permits, FSSAI, GST, and Local Municipal
Corporation Health License are the most important ones to have at the
starting of the outlet. Police eating house and fire license can be acquired
once I commence my operations. However, it is recommended to have all
the licenses in place before starting a bakery.

Food License: I need to apply online, through its website

(www.fssai.gov.in). I can also get this done through various agencies that
charge around Rs 5,000 for the complete paperwork and license fee. It is
advised to get a five-year food license to avoid renewal fees every year.
The cost for the five years FSSAI licenses is Rs 15,000.
GST Registration: It can be done with the help of a Chartered
Accountant.
Health License: I can get the Municipal Corporation’s health license fee
with the help of a local Municipal Health inspector. This would cost me
around Rs 3,000.
Fire License: I can get the fire license with fee of Rs 1,000-2,000, after
the installation of fire extinguisher cylinders.
4. Getting Manpower Required to Open a Bakery
Bakery shops requires an expert workforce because both the taste as well
as the presentation is essential in the case of baked goods. For a high-end
bakery, I need a Head Chef, Chef De Parties, and Helpers, plus Service
Boys and a Cashier at the display and the serving area. The approximate
total count of manpower required in the bakery is 15. The salary of the
chefs, bakers, and helpers depend on their experience.
5. Buy Equipment needed to start a Bakery Business
The kitchen equipment is costly for a bakery business since each piece of
equipment is made up of stainless steel, which is sturdy and long-lasting.
The major equipment required in the bakery is Planetary Mixers, Oven,
Deep Fridge, Cooling Fridge, Working table, Gas stove, Cylinders,
storage utensils, and other equipment.

6. Design the Display Area of My Bakery Business

The display area or the front end of the bakery business should be well
designed and created in a manner that every item is noticeable to attract
walk-in customers. I mainly require a Display fridge for cakes and
pastries. Other than the refrigerator, the display area should have proper
storage and a display rack for the items.

7. Install a POS & Billing Software in my bakery

The POS software is not just billing software anymore. Equipped with
powerful integrations such as Inventory management, the POS software
is now the only software I need in my restaurant. While purchasing one
for my bakery business, I will ensure that the POS software has features
to manage the shelf life of the baked items, robust inventory management
as I would be dealing with perishables. The price of POS software is
likely to differ based on the features I wish to include.
8. Doing Right Marketing & Branding of my bakery business
Marketing and branding are essential for any business to flourish, and a
bakery is no stranger to this. I need to get a properly designed logo and
display board from a professional designer. This will not only help me to
create my own unique identity but will also help in my branding while
packaging.

For the first few months, around 30,000 pamphlets are good enough to
market my bakery. These 30,000 pamphlets will cost I will incur around
Rs 30,000, with the good paper quality. Apart from flyers, I need to
invest some money in a great display board to attract customers. The
well-designed display board would cost me around Rs 25,000.

Apart from these, I must have a separate budget for restaurant

management software, since it could also help me in running several
marketing campaigns by utilizing customer data

10. Partnering with Online Food Aggregators

The demand for online food delivery is steadily increasing these days.
For a new bakery business, it is highly recommended that I register my
business with the online food aggregators such as Zomato, Swiggy,
UberEATS, Food Panda to generate online orders. It is also essential to
have an online-ordering enabled website for my bakery business. This
would help to boost my online presence and also generate online orders
for my bakery.