Business Plan of the Valentine Cake House Enterprises
com The business is a private entity owned by [insert full names] and is scheduled to commence in August 2018. Executive Summary Business Details Valentine Cake-House Bakers and Coffee Enterprises is a sole proprietor business whose location will be Cleveland, Ohio- United States of America. The business is scheduled to commence in mid-August 2018. Products and Services Valentine Cake-House will be baking cakes and cookies of different flavors that meet most of the wide variety of customer preference in the region. Moreover, the outlet will also serve coffee in different flavors to her customers. On the other hand, the finance officer will help in coordinating financial matters such as budgeting, remuneration, purchases, and inventory control. This individual will be a qualified accountant technician.
Market Opportunity The business expects to gain 22% of the market in the first year of entry and 37% by the third year. The objective is achievable because most existing businesses lack the technology the caliber of Valentine Cake-House. Moreover, the market gap is so large such that most cake and cookie flavors are missing in this market where demand is promising. The products will be sold in both a retail outlet and on vans during occasions. The products come in different flavors that meet the appetite of clients who are in a broad spectrum of taste for cakes and cookies. However, the quality of coffee and cappuccino will remain the same as the ones in the market. On the other hand, the uniqueness of the business is found in the services accompanying the products.
The customers will also enjoy a varied number of services, which includes door-to-door supply, packing, and customization of cakes, coffee, and cappuccino to match the customer’s request. • The level of technology in use by most existing bakers are outdated hence the opportunity to introduce efficiency in the baking world through better technology. • Need to create jobs for those graduating with technical and professional knowledge in aquaculture. • The need for self-satisfaction in self-employment is a driving force to the start up. 1 Skilled and Unskilled Jobs on Offer Skilled jobs include management, procurement and sales, accountants, and production team. The manager will be in charge of total control of the business through his/her roles as a supervisor, budget control, coordination of departments through proper communication, and the social link of the business to the world.
The local business will be part of the consumers of Valentine Cake-House business and suppliers to this entity. Wholesales dealing with supplies of oil, wheat, and products needed in the baking industry will be the suppliers to this business. Technical suppliers such as water, electricity, telecommunication, and the internet will also form part of the supplying unit to the business. Technologists and technicians from the region will also be hired when there is need for maintenance, repair, or installation of new equipment. 2 The Impact of the Goods to the Community The community lacks supply of fresh and varied flavors of cakes that can satisfy their taste. The owner will start the business from scratch as a new independent entity where she will invest all the capital.
Moreover, the owner will be in charge of securing costs such as insurance, recurrent expenditure, maintenance, stocktaking, expansion, and remuneration of the employees. 1 Permits and Licenses The food industry in Cleveland has a number of licenses and permits that a business must secure. Some of the licenses include: Food Handling Hygiene certificate for every worker handling foods at the production unit, storage, supply, or point of sales. Business Registration License, which allows the owner of the business to operate in Cleveland, is compulsory for all the businesses. Ones the business has earned a wide customer base, the culture will not change, and more branches will open to ensure that the clients have their needs at their doorstep. 3 How to Develop the Business The business will start with a single outlet in Cuyahoga, Cleveland.
The Outlet will house the baking and coffee production unit. There will also be truck sales of commodities in various parts of the city and different times of the day. Moreover, the company will arrange for the distribution of commodities to clients within the city. The gap in this market suits Valentine Cake-House because it will be producing nine flavors of cake and seven for cookies. On the other hand, the coffee service at the outlet will come in four different flavors. Diversification in flavors gives the business a strong competitive advantage, which the rest of the suppliers lack. 5 Profitability of the Business The business will be profitable in this region because there is a wide market gap in terms of the cake flavors loved by clients.
That means that at entry, Valentine Cake-House will be running a section of flavors that have never existed. On a similar horizontal level are the finance officer, sales persons, and operation and production personnel. This level has horizontal communication from one department to the other and vertical when dealing with the general manager and the lower ranks. Lowest in rank is security personnel and the cleaning officers. Managers will include a general manager, an operations manager, an accountant, procurement and sales manager, and a human resource. Each of these levels requires techniques and skills that vary. Remuneration of all the workers vi. Sourcing materials and equipment vii. Negotiating on behalf of the company Responsibilities i. Hiring employees ii. Supervising the date today activities of all the employees iii.
Good command of the English language vi. Has a certificate of good conduct vii. Trust worthy. viii. Female i. 22-28 years of age iv. Possess background knowledge of baking techniques v. Has basic computer knowledge. vi. Good knowledge of food preservation and handling vii. Holder of a driving license and with at least two-year driving experience v. Has a certificate of good conduct. i. The distribution of products ii. Driver of the distribution van and the motor bikes iii. On the other hand, employees in the lower ranks such as salespersons should earn $25000 p. a. An accountant should earn $35000 p. a while the lowly ranking workers such as security personnel and cleaner should take an average of $12000 p. a. On the other hand, the customers to the business are residents around the suburbs and flats around Cuyahoga County.
The close proximity enables the sales team to reach the client within a short period of order request. Moreover, very little fuel is wasted during local supplies. However, the regions where the sales truck visits have passable roads, which limit wear and tear hence low replacement costs. Therefore, the proximity to customers and suppliers is convenient to the business. On the other hand, internet and telephone billing are currently charged together depending on the subscription rates an entity decides to use. The cheapest of the billing is $15 per month and the most expensive is $35. 95 per month. The prices of such commodities in Cleveland are fair and sufficient for a medium size business like Valentine Cake-House. 2 Quality and Stock Control All the baked products will be produced according to the procedure using supplies that have not expired.
Unemployment stands at 3. 8%, which is 0. 2% below the national level. Therefore, Valentine Cake-House will source it labor from the locals because there are sufficient and qualified people in the region. THE HUMAN RESOURCES COMPONENT The Human resource will require 12 full time personnel as tabulated below Job Title Number Qualification Duties And Responsibilities Finance Officer 1 • Holder of certificate in ATC or equivalent • 25-30 years old • Team player • Competitive and ready to meet deadlines and quotations • Good command of the English language • Has certificate of good conduct • Trust worthy. 2 Employee Selection The firm contracted for the recruitment process will decide on the best alternative employee recruitment technique in picking the job applicants after an interview. However, the owner will require that the interview incorporate a practical session for the recruits in the production department.
3Orientation Upon recruitment, all the personnel will undergo a two weeks training seminar on the organization’s goals and work culture. Moreover, the employees will be inducted according to their departments so that each section of the company is vested in their section. Furthermore, the organization will always prepare career development programs such as short courses will be provided to employees who show the drive for development and have their job done well. An estimated 60% of 70% who work in the informal sector and the civil service consumes cakes, cookies, and coffee on a daily basis while 80% of 70% buy these commodities on a weekly basis. However, 95% of the 70% buy the commodities every month. b. Institutional Customers Includes hoteliers, government institution canteens, and non-governmental organization institution canteens in Nairobi and its environs The hotel industry has a capacity of about 125 hotels in Cleveland.
They have good financial capability as most are 3 star, 4 star and 5 star hotels with high consumption rate and diverse flavors of cakes and cookies. Socio-culturally, the business has the potential to serve every cake, cookies, and coffee lovers. Most dwellers in this region are lovers of the delicacies offered by the business. 3 Needs of Each Target Market There are three categories of targeted customer, that is, local businesses, individual customers, and institutional customers. Individual customers have a broad taste for satisfaction and can purchase in quantities such as half-liter coffee and half kg cakes or cookies. On the other hand, institutions are more specific with their orders depending on the flavors of cakes that sell most. That means that the business will be controlling 22% of the market during entry but the sales volume will grow, as more customers will have word of the new products in town.
The profits will increase with expansion but the margins are projected at 23% of the amount invested at the start and 37% when the expected target market share is reached. 7 Marketing Objectives Foremost, marketing by Valentine Cake-House is to improve the products in the market. The market has cake vendors who only deal on a few cake flavors. The other aim of marketing is to make sales of 5600kgs cakes, a 3360kgs cookies, and 2800-liter coffee per month. 50 $4,200 Total $109,480 2nd Variation Cakes 3600kgs $14 $50,400 Cookies 1060kgs $8 $8,480 Coffee 1500l $1. 50 $2,250 Total $61,130 The breakeven point will be realized when a graph of cost and sale is plotted and the point of their intersection forms the breakeven point, that is, where sales volume earns an amount equivalent ($48 032) to the cost of sales.
4 Project Reinforcement The industry has bakers who produce a variety of baked commodities. Such includes cakes, bread, muffins, cookies, cap cakes, hot dogs, chicken burger, and meat burger among others. THE EXIT STRATEGY COMPONENT To get out of the business, a plan by a private audit firm and the company lawyer will meet and draft the takeover by inheritance to the children. The method of purchase is cheaper and can allow the business to match pricing competition such as underprices by competitors. Additionally, when the competitor underprice, the business will also reduce the standards of measurement by matching the unit of measurement with that in the market. However, the business will not drop the prices with more than 15 percent but will keep its quality to attract customers of like taste.
3 Industry Trend When there is unfavorable industry wide conditions, the business will shift focus to making other baked products other than cakes, cookies, and coffee. Product diversification ensures that the customers are served to a variety of flavors, which improves the amount of sales. Computer literate v. Team player vi. Trust worthy and God-fearing (Christian) vii. 25-30 years old (male or female) Finance officer i. Holder of a certificate in ATC or equivalent ii. Good command of the English and Swahili languages iv. Has a certificate of good conduct v. Christian vi. 2 males and one female vii. Age 22 – 30 years old Operations and production staff i. : ____________________ Email address: _______________________ Academic Qualifications Date Schools/Institutions Attended Qualifications Obtained (‘O’/’A’ Levels, Diploma, Degree) Subjects/Grades From To Other Qualifications / Courses Attended / Awards Attained Date Qualifications / Awards Obtained Awarding Institution From To Employment History Date Firm/Institution (in chronological order) Position Held Key Responsibilities Reason(s) for Leaving From To Details of Current Employment No approach will be made to your present employer without your consent.
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