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NAME - ADITI VIJAY SHITOLE

CLASS – SYBMS(HR)

ROLL NO – 215719

SUBJECT – BUSINESS PLANNING

TOPIC – BUSINESS PLAN OF CAKE SHOP


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 a 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
It cn your mission statement, a review of your restaurant’s legal structure
and ownership, a brief history of the restaurant if it’s an existing
restaurant and plans of your restaurant business.
Business Overview – The Business Overview of a bakery business plan
must include the concept of your bakery business, and the type of service
you’re going to provide. It should include the layout of your 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 you open a bakery business. It would help you identify the
competition in your area, analyze the target audience for your bakery,
and help you choose the right location for your bakery business.
SWOT Analysis – The SWOT Analysis of your bakery business would
help you identify the Strengths, Weaknesses, Opportunities, and Threats
associated with your bakery business. Learn how you can do the SWOT
analysis for your bakery business here.
Operations Plan – The Operations Plan of your bakery business should
include the details about how your bakery would function, such as order-
taking, menu, service, staff management, raw material procurement, etc.
Financial Analysis – The Financial Analysis of your bakery business
plan should include the cash flow statement, the operating costs, the fixed
and the recurring expenses, etc. This would help you gain the financial
viability of your bakery business.
Marketing Plan – You should include a marketing plan in your bakery
business plan as well. The marketing plan should talk about how you’ll
attract customers and promote your bakery.
Learn in detail how you can write a successful bakery business plan here.

2. Choose A Location for Your 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 your own choice. For a 1000 sqft area divided
between two floors, the rent should not exceed more than Rs 60-70k.
Your 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. Get an appropriate legal agreement for the property
as it is also required in paperwork and other licenses. You should 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. Get All Licenses Required to Open a Bakery Business in India


Similar to the QSR 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 you commence your
operations. However, it is recommended to have all the licenses in place
before starting a bakery.

Food License: You can apply online, through its website


(www.fssai.gov.in). You 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. Find out
how to get the FSSAI License for your restaurant here.
GST Registration: It can be done with the help of a Charted Accountant.
Find out how you can do GST Registration for your Restaurant here.
Health License: You can get the Municipal Corporation’s health license
fee with the help of a local Municipal Health inspector. This would cost
you around Rs 3,000.
Fire License: You can get the fire license with a mere fee of Rs 1,000-
2,000, after the installation of fire extinguisher cylinders.
Here is a complete list of all the licenses required for opening a food
business in India and the steps to procuring them.
4. Get Manpower Required To Open A Bakery
Unlike the QSR and Food Truck, Bakery shops need 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, you 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. Unlike QSR or Food trucks, the
bakery requires new equipment for better efficiency. But to lower the
cost, you can get the working table second-hand.

6. Design the Display Area of Your 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. You 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 Your 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 you need in your restaurant. While purchasing
one for your bakery business, ensure that the POS software has features
to manage the shelf life of the baked items, robust inventory management
as you would be dealing with perishables. The price of POS software is
likely to differ based on the features you wish to include.
8. Do Right Marketing & Branding of Your Bakery Business
Market and branding are essential for any business to flourish, and a
bakery is no stranger to this. Get a properly designed logo and display
board from a professional designer. This will not only help you to create
your own unique identity but will also help in your branding while
packaging. Also, do remember to get a well-designed menu.

For the first few months, around 30,000 pamphlets are good enough to
market your bakery. These 30,000 pamphlets will cost you somewhere
around Rs 30,000, with the good paper quality. Apart from flyers, invest
some money in a great display board to attract customers. Well-designed
display board costs around Rs 25,000.
Apart from these, you must have a separate budget for restaurant
management software, since it could also help you 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 you register
your business on the online food aggregators to generate online orders. It
is also essential to have an online-ordering enabled website for your
bakery business. This would help you boost your online presence and
also generate online orders for your bakery.

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