Homemade Bread Bakery
From Startup
The Thousand Rand Challenge Business Plan Template
This document provides a template of headings for presenting any business idea. The objective is to produce a step-by-step tool that illustrates every step of the business creation process. It should be possible, by following the information, to produce a viable business.
All text in italics should be deleted (including these introductory paragraphs) for use as a template on newly created business idea pages. Please ensure that the new page you're creating really is a new idea. Check the front page for a current list of businesses, or perform a search.
This heading area should contain a brief outline of the nature of the business - change the heading at the top to list the type of business - e.g. Fish and Chips Frying
[edit] Description of the business
Within each sub-heading are a series of questions that require detailed answers. Simply fill in your commentary beneath the headings. Note that these headings and the methodology are here, partly to be pedantic, but mostly to ensure a consistent approach across a number of unrelated businesses. It makes searching for information far easier if you know where to start.
What exactly is it that is going to be sold or done?
Bake and sell the following:
- Home made bread
- Home made rolls
- Scones
- Muffins
Place your research into the business under each of the bold headings and delete the text in italics.
What skills are needed to do this? Where is this taught and how much will it cost?
- Must know ho to bake
- must be able to do costing
1000*1000 course helped with costing
What tools or equipment are needed? Where can they be bought, and how much will they cost?
Mixer R700 Baking plates R100 Stock
How much space is needed to work from?
Only a kitchen
Where will the space be found, and how much will it cost to rent?
Business will be conducted from home
What sort of people will buy the product? Who are they and where do they live?
The residents from Diazville as well as people from Louwville Vredenburg
How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?
- 1 bread per household per day
- Most clients will come to my home
- will deliver in Vredenburg on Fridays
[edit] Upstream Businesses
A list of businesses and ideas that provide the services and products that this business needs.
[edit] Downstream Businesses
A list of businesses and ideas that this business could provide products for.
[edit] Competitors
What major competitors will attract clients' spending away from the business' products?
Sonop Cafe Maries shop
What prices and products do these companies have?
- Sasko Sam R5
- Blue Ribben R5
What makes them popular / unpopular?
Their bread do not taste homemade
What do they do to attract customers? Specials? Interesting marketing / advertising?
They are close to clients
Which of the competitors stand out as being particularly good at what they do?
No one - their bread are mass-production
What can be done to stand out against them? What can be done that is more exciting / more interesting?
Client like mine more because:
- more healthy
- homemade taste
[edit] Marketing the business to clients
What sort of people will buy the products and how important is product consistency to them (e.g. must every loaf of bread be identical)?
- Housewifes
- Schools
- Petrol station
- Most people of community
Bake only bread on order
How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)?
always the same
Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)?
They want high quality products at affordable prices
How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest?
- The nice smell of homemade bread attracts clients
- the bread are lookin very good
Do the clients want the same things sold in the same way, or do they want things to change all the time?
Yes, they always want the same home baked bread
What can be done to attract the first clients (the most important and most difficult to get)? How much will it cost?
I will give small samples to potential clients
[edit] The business inputs and outputs
List all of the inputs (products that are required to produce the products):
- Flour
- Yeast
- Salt
- Oil
- Potatoes
List all the suppliers for the inputs and their addresses, telephone numbers, and sales terms (cash, 30 days, etc.):
- Checkmate
- Spar
- Friendly
- Pick n Pay
- Shoprite
All on cash terms
List all of your outputs (products created by your business):
- Home made bread
- home made rolls
- Scones
- Beskuit (rusks)
- Muffins
What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)?
- Home made bread Selling R10 Profit R7
- home made rolls R3 R1
- Scones R5 R2
- Beskuit (rusks) R10 R5
- Muffins R3 R1.50
Do the outputs have a shelf-life? Must they be sold within a specified time limit before they go off / can't be sold? Which ones?
Yes, it have, but I am only going to bake on orders
[edit] Setting up the business
List everything that needs to be done to prepare the business to be ready (list everything needed to have as well, both equipment and stock):
- Oven (own)
- Mixer
- Plates
- Toaster
- Stock
How long will it take to get all of these things and how much will they cost to get?
One day will cost R1000
List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages):
- Electricity R200
- Water R100
- Salary R300
- Assistent R150
Total amount for fixed costs: R___750____________
How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)?
The owner will do all the baking herself, the assistant will do the cleaning and other smaller jobs
What training will they need, how long will it take and how much will it cost?
the assistant will receive inhouse training
[edit] The manufacturing or production process
List every step, from start to finish, to produce the product
- Buy ingredients
- bake bread
- Put in bags
- Deliver if necessary
- Receive money from clients
Allocate each of the manufacturing steps to a process and a process to a staff member (e.g. all manufacturing steps A to process 1):
I will do it myself Assistant will wash
What possible problems may happen during each step of the manufacturing process?
A power failure while bread is in oven If flour are old
What solutions can be identified for these problems? How much will they cost and how long will they take to fix?
- Power problem - no solution
- Buy flour from other supplier
What is the maintenance program for all the equipment?
Oven must always be in a good working condition
What safety requirements are important for production?
- wear protective clothing
- hygine environment
How will quality control and client feedback be handled?
- will replace if possible
- otherwise will give money back
[edit] Costing and bookkeeping
How many of each of the stock items can reasonably be sold each day (and month)?
will differ because I only bake on demand but : Home made bread 10 per day 200 per month
- home made rolls 10 bags 200
- Scones 10 200
- Biskuit 5(rusks) 100
- Muffins 10 200
Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)?
always the same but a little bit more in winter
What sort of pricing strategy will be chosen (cheapest or best)?
The best price clients can afford
What profit margin will be chosen for the products
Will depend of what product (not fixed)
Write down the cost prices plus the margin for each stock item you will sell, and the selling price
- Home made bread Cost R5 Profit R5
- home made rolls R2 R1
- Scones R2 R2
- Beskuit (rusks) R5 R5
- Muffins R1.50 R1.50
Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much?
Yes
Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable?
Home made bread 10 per day 200 per month
- home made rolls 10 bags 200
- Scones 10 200
- Biskuit 5(rusks) 100
- Muffins 10 200
Set out the products, costs, margins and selling prices:
|
Item |
Daily Target |
Monthly Target |
Cost Price |
Margin |
Selling Price |
Total per Month |
|
Home made bread |
10 |
10 x 20 number of working days in a month |
R 5.00 |
R 5.00 |
R 5.00 + R 5.00 |
= 200 monthly target x R10 selling price |
What trends are included in the projections?
[edit] Running the business
What is the process for running the business on a typical day? Who will be responsible for each step? Link this back to the production process.
start baking in the morning
Who will act as backup should the person responsible not be there? What do they need to act as backup?
my assistant
What weekly processes need to be performed? Who is responsible, who is backup and what tools are required?
Buy stock
What monthly processes need to be performed? Who is responsible, who is backup and what tools are required?
- Bookkeeping
- Pay my assistant
What is the schedule for training and motivating staff?
Commission if getting more sales
What processes are required for maintenance and new product creation? Who is responsible and what tools do they need?
- Market research
- Ask clients what they want
[edit] Before beginning
List some of the support services available (legal, business and other) that might be needed
WCBDC Red Door Mentor
What major laws concern the business, and which government departments should be called to keep up to date (list phone numbers)?
[edit] Related articles
Insert links to articles on Wikipedia or other Wikis that may be useful (such as recipes, legal discussions, accounting articles, and so on)
[edit] External links
List links to outside websites that may be useful for anyone starting this business
[edit] Business Trials
List your name if you started a business based on this plan, where you started the business, and how you did Links to case histories - you are welcome to develop these and insert them in your personal page (create this by developing a personal profile)
- Katrina October T & S Homemade bread
