A &B Bakery

BUSINESS PLAN PROPOSAL

GROUP 7. BEEd –III WPU-MAIN CAMPUS

 Abijay, Joevelos J.
 Akira, Watty H.
 Alba, Reynold N.
 Arbis, Emily V.
 Bacnan, Anna Rose
 Badajos, Genevieve

I. Proposed Business: Bakery

II. Name of Business: A &B Bakery
III. Strengths, Weakness, Opportunities and Threats
A. Major Strengths:
The major strength of the business is;
 cheap raw materials
 Location of the business is way too far from the competitors.
 Having new and different varieties of cakes, pastry and breads.

B. Major Weaknesses:
The major weakness of the business is
 the accessibility of raw materials
 low production at a time of peak of popularity of the product
 lack of technical know-how of owner/manager

C. Major Opportunity:
The major opportunity of business is:
 there no nearby competitors
 increasing consumer demand for the product/service offered
 continued product development

D. Major Threat:
The major threat of the business is:
 Competitors low pricing
 Economic downturn
 Consumers satisfaction
 Unexpected change in price of ingredients
IV. Decision-making Checklist

A. Economic Factors YES NO

1. Will there be a profit? ____√___ _______
2. Can we avail of loans? ____√___ _______
3. Is there a ready market for our product? ____√___ _______

B. Social Factors
1. Are we providing for a needed product/service? ____√___ _______
2. Will the community benefit from the business? ____√___ _______
3. Are we free to make our own decision? ____√___ _______
4. Are we ready to invest? ____√___ _______
5. Do we have our families’ support? ____√___ _______

C. Interactive Factors
What risks are involved?
 In the business, the risk of failing to meet the demands of the consumers is
always there. There are risks of dissatisfaction and the possible shortage of
resources and money.

How do we feel (in general) about the business?

 We feel that we have a good chance in succeeding in our chosen business in
bakery. Our combined efforts and our determination will be a big factor in
the success of the business. Also, we have chosen an area which is far from
our competitors and we consider it as an advantage.

D. Evaluation
1. Are most of your answers a yes or a no?
 All of our answer are yes
2. Is there a factor, such as lack of credit that will make the business impossible?
 Yes

3. What is your decision about the business? Why?

 We have decided to continue our business despite the many factors which
could contribute to the failure of the business. With careful evaluation, we
found out that our strengths outweigh our weaknesses.

4. If your decision is yes, discuss as a group what you are looking forward to
about starting a business and what are you afraid of the most.
  We are looking forward to make a name for ourselves in the business world.
We are afraid that we might fail in getting the support of the consumers to
our products which may cause the downfall of the business and failing in
our business. However, we will try the risk because we will never succeed if
we don’t.

5. If your decision is to discontinue, refer back to the earlier activities where you
listed a number of business opportunities.
 We will continue with the business

V. Areas to be Considered

A. Materials:
1. What are the materials that you need to start your business?
 Utensils (measuring cups, spatula, stainless bowl, dough cutter, plancha,
cheesecloth).
 Equipment (Weighing scale, Dough kneader, Oven, Working table)
 Raw materials (Bread flour, water, refined sugar, vegetable shortening, salt,
instant yeast)

2. Where can you obtain the materials?

 We have access to the materials in Puerto Princesa City.
3. Is there a ready source and enough supply?
 Yes

B. Transportation:
1. What transportation facilities do you need for the successful operation of the
business, obtaining supplies and marketing your product?
 Mode of transportation would be by Land. We will have a motorcycle for
some deliveries and rusco for massive deliveries.
2. How much does it cost?
 The cost of transportation is incorporated in the selling price of the
product.

C. Facilities:
1. Where are you going to locate your business?
 Our Business will going locate in San Juan, Aborlan , Palawan
2. Is there a ready supply of water, electricity and other resources?
 Yes
3. How much does their installation cost?
 We already had a ready source of electricity and water in our site.

D. On Workers:
 1. Who is responsible for what?
 Production Department- Responsible for the whole production of products
we sell.

 General Manager- Runs the daily operations of the business and may also
handle marketing and this role can be filled by the owner.

 Kitchen Preparation Personnel- Maintain cleanliness an orderliness of the

area.
 Marketing Department- Responsible for the promotion and the selling of the
products

 The Finance Department- Responsible for the bookkeeping, financial

reports and counting matters such as salaries, budget and profit gained.

 Delivery Personnel- In charge in delivering orders of the clients

2. How much will you pay yourselves for the time you will be spending?
 We will pay them 250 per day
3. Is there a need to hire other workers?
 Yes

E. On Training:
1. Do you have the needed skills?
 Yes
2. If you don’t have the skills, how do you plan to acquire them?
 Training session can be conducted regularly to acquaint us with the
production of our business.
3. Who will train your hired workers?
 Our production department will train the newly hired workers.

F. On Packaging:
1. Does your business need package?
 Yes

2. If yes, what kind?

 The packaging of our products is light and eco-friendly. We also do
customized packaging for cakes according to the costumer’s request.

3. Where will you get them?

  We can get them in Puerto Princesa City

G. On promotion:
1. How will you let the consumers know about your business and your product?
 We will launch our social media pages and holding promos during special
occasions such as Valentines, Christmas and New year that will catch our
buyers’ attention especially those who would want to save. We will also
provide our consumers brochures for them to see samples of our product
especially the designs. We will also give some freebies for a certain amount of
purchase.

2. How much are you ready to spend for promotions? What strategies are you
going to use?
 We will spend 10,000 pesos for brochures and the cost of promos and freebies
depends on how in demand our product is.

H. On Money:
1. Where will you get your start-up capital?
 Loan from the bank (Landbank of the Philippines)

2. How much are the interest payments?

 We will borrow 500,000.00 pesos’ worth of money with 9.5 interest and we
are going to pay it in three years.

Business Plan

OUR BUSINESS
Name of Business A & B Bakery
Our Proposed Business is: Bakery
The skills to be learned: (1) Baking
(2) Packaging
(3) Handling orders
The location of the business: San Juan, Aborlan, Palawan

OUR MARKET
Our consumers, where and when:
Our consumers are those people around the area. And we are also open on
deliveries around Aborlan and Narra. We are available anytime of the year.

We will promote our business and products through:

We will launch our social media pages and holding promos during special
occasions such as Valentines, Christmas and New year that will catch our buyers’
attention especially those who would want to save.
We will also provide our consumers brochures for them to see samples of our
product especially the designs. We will also give some freebies for a certain amount of
purchase.

BUSINESS OPERATION
We will produce the product:
every day (quantity) - 2,000 pieces
every week (quantity) - 12,000 pieces
every month (quantity) - 144,000 pieces
We produce in a year’s time a total number of: 288,000 pieces

We will hire (kind of workers and number)

We will be hiring skilled, patient and flexible workers:

(1)Production Department - 3
(2)Kitchen Preparation Personnel- 1
(3)Services Department - 5

Total = 9 workers

We will divide the work this way

A. Production Department
(1) Packaging
(2) Bakers
B. Kitchen Preparation Personnel
(1) Equipment/Dish washer
(2) Cleaner
 C. Services Department
(1) Finance
(2) Delivery Personnel
(3) Cashier

The people who will manage the business are (any position, e.g. managers, treasurers
and the tasks assigned to them)

a) General Manager
The General Manager runs the daily operations of the business and may
also handle marketing.

b) Production Baker
The Production Manager is responsible for the whole production of baked
goods.

c) Kitchen Personnel
The Kitchen Personnel are responsible for cleanliness and orderliness of
the whole area

d) Finance manager
The Finance Manager responsible for all the budget and expenses of the
business

e) Cashier
The Cashier is responsible for cash and selling product within the facility.

BUSINESS EXPENSES
Our start-up expenses would include the following:
____________________________________________________________
Materials : P150, 000.00
Sales budget : P30,000.00
Cash budget : P150,000.00
Manufacturing budget : P70,000.00
Labor : P100,000.00
Total : P 500,000

Our operating expenses for one year would include the following:
Materials : P1,800,000.00
Sales budget : P360,000.00
Cash budget : P1,800,000.00
Manufacturing budget : P840,000.00
Labor : P1,200,000.00
 Total : P 6,000,000

we will borrow money from : Landbank of the Philippines

At an interest of : 16 %
Our monthly payments will be : 16,111.1
Interest will start on : the fourth month after the business has
been established and will continue for
two years

SALES INCOME
We will sell the product/service at : P4.00/pc
Our projected sales (quantity) is:
every day : P8,000
every month : P48,000
every year : 576,000

Current market price of the item is : P5.00/pc

They sell (quantity)
every day : P8,000
every month : P48,000
every year : P576,000
Our estimated annual sales income is :

BUSINESS BENEFITS
Our business will contribute the following:
(1)Encourage people to take risk in business world
(2)Reduce unemployment within the area
(3)Our country to be known as a good quality product

Our business will be facing the following risks:

(1)Failure to meet the costumers demand
(2)Competitors
(3)Possible shortage of money and resources

Production Plan Form

Start-up Expenses

Resources Needs Source Cost

 Materials Bread flour, Refined sugar, Puerto Princesa P130,000.00
Vegetable shortening, Salt
,food color and Instant yeast

Transportatio Motor Motor Manufacturers P20,ooo.oo

n Rusco Trycicle P40,000.00

Facilities Working area Business Onsite

Lobby
Canteen
Workers Uniforms Management P10,000
ID
Ventilation
Dormitory

Workers’ Materials for Demos Management P5,000

Training

Packaging Boxes and paper bags Puerto Princesa P5,000

Promotion Brochures and flyers Marketing P3,000

Department

Total: P 213,000.00

Investment Plan Form

Product/Service

Item What is needed What is on hand Cost

Equipment Oven, Refrigerator and mixer Table and Trolley P 145,000
Raw materials Bread flour, Refined sugar, Salt ,food color P 130,000
and Vegetable shortening and Instant yeast
Transportation Second hand Rosco and P60,000
 Motor cycle
Construction Own building Own building
Training Materials for demo P 5,000
Packaging Boxes and paper bags P5,000
Promotion Brochures and flyers P3,000
Total: P 348, 000.00

Sales Chart
One Day: Price per item Number of items Daily sales
sold income
P4.00 2,000 pcs P 8,000
Weekly: Daily sales Number of selling Weekly sales
income days/month income
P 8,000 6 days P 48,000
Monthly: Daily sales Number of selling Monthly sales
income days/month income
P8,000 25 days P200,000
Yearly: P 2,400,000.00

Operating Expenses

Total Needed Source Cost/Cycle Cost/Year

Raw Bread flour, Refined Puerto Princesa P 130,000.00 P1,560,000
materials sugar, and Vegetable
shortening
Transportatio Second hand rusco and seller P 60,000.00 P 60,000
n motor cycle
Facilities Working area Business Onsite
Lobby
Canteen
Workers Uniforms Management P10,000.00 P10,000
ID
Ventilation
Dormitory
Training Materials for demo Management P5,000.00 P 5,000
Packaging Boxes and paper bags Puerto Princesa P5,000.00 P 60,0000
Promotion Brochure and flyers Marketing P3,000.00 __________
Department
Loan __________ __________
Payments
 Total: _____________________

Consider the following questions:

(1)How much money do you have?
 We have 300,000 pesos
(2)How much do you need to borrow to start the business and begin operating?
•We will borrow 500,000.00 pesos’ worth of money.
(3)How much interest should you pay?
 9.5 interest and we are going to pay it in three years.

COST PLUS PROFIT PRICE

A. Monthly costs
Materials _________________________________________
Transportation _________________________________________
Facilities _________________________________________
Labor/salaries _________________________________________
Packaging _________________________________________
Loan payments _________________________________________
and Taxes _________________________________________
Others _________________________________________
Total Costs P __________________

1. number of items you produce each month

2. Per item cost: cost (total of 1)

number of items = per item cost

Example: P 20,000.00 = cost of materials and other expenses (total of 1)

50 = number of products/items
P 400.00 = cost of product/piece

How to get the mark-up (you plan to add a 20% mark-up to your product)
P 400.00 x .20 = P 80.00
P 400.00 + 80.00 (480.00) = selling price of product/piece with mark-up

3. How much is added to each item’s cost for profit (reasonable amount for mark-up)? A
market survey is necessary to find out how much customers are willing to pay.
__________________________________________________________
4. Add: per item cost and profit margin for each item and you have sales price for each
item.

A sample business plan is given in the succeeding pages. You can use this as your
guide in coming up with your own business proposal.

ORGANIZATIONAL STRUCTURE
 Bread bakery is a business that owned and managed by Anna Rose Bacnan . This is
located at San Juan Aborlan, Palawan. It has currently 9 employees, including my
supervisor Reynold alba, master baker is Watty Akira and the assistant baker is Dario Licos,
the cashier is Joevelos Abijay and sales lady is Reyna Licos, the repacker is Genevieve
Badajos, and the delivery is Emely Arbis and Ericka Manzul, and the last are utility is
Kenneth Alvis.

Production Layout

The layout of business which is the bread bakery, all the facilities are separate in every
area inside and out of the establishment.