Professional Documents
Culture Documents
Business Plan
Heather Haeusler, Whitney Block, Nicole Greenbank, & Andrew Spencer.
Project Overview
The bakery is proposed as a means of additional income for the family farm. Products are homemade and of high quality. The bakery will be run the women family.
Operations Plan
Start Up
The bakery will be constructed on the farm. Construction will commence in January 2006. The bakery is scheduled to open in May 2006.
Organizational Structure
Board of Directors
President/Manager
Head Baker
Assistant Baker
Floor Plan
Work Plan
4:00am Start Baking 8:00am Bakery Opens Leave for farmers market: 5:00 pm Bakery Closes
Capital Budget
Description Estimated Cost ($) Source of Estimates Obtained
Buildings:
Bakery Total Building Costs Equipment: Oven Proofer Showcase Refrigerator Freezer Used Mixers 20qt Shelves/dollies Additional equipment Furniture Total Equip. Costs Total Working Capital Total Capital Required $ $ $ $ $ $ $ $ $ $ 2,400 2,000 560 2,600 750 3,200 525 5,000 640 $ 17,600 1200 $ 85,000 $ 85,000
1000ft2
Humboldt Lumber Mart Ltd
Ace Mart Restaurant Supply Co Ace Mart Restaurant Supply Co Ace Mart Restaurant Supply Co Sears Canada Sears Canada Nicholson Equipment Ltd. Ace Mart Restaurant Supply Co Ace Mart Restaurant Supply Co Monthly requirements for capital*
$ 103,800
2006
$30,500
$16,700 $10,440
total
$57,640
Inventories
Desired Inventory = 0 Average Days for Inventories
Raw Material Inventory = 30 days Finished Goods Inventory = 2 days
Accounts Receivable/Payable
Receivables
From Bulk Cheese Warehouse and Sask Made Market Place Have 30 days from date of billing to pay No discounts offered
Payables
Saskpower, and Sasktel Have 21 day grace period
Human Resources
President/Manager
Responsibilities:
Oversees daily production Work Schedules Assigning Employee Tasks Traveling Ensures product quality Purchases raw materials Keeps facility running, and clean Accounting Duties
Head Baker
Responsibilities:
Working long hours Ability to follow recipes Ability to produce quality product Ability to use ovens and mixers Dishwashing and janitorial skills
Assistant Baker/Waitress
Responsibilities:
Assist in baking Operate Cash register and serve customers Dishwashing, and basic janitorial skills
Delivery Persons
Responsibilities
Deliver product to Bulk Cheese Warehouse & Sask Made Market Place Deliver products to and work at Farmers Markets in Saskatoon, Melfort, and Wakaw
Additional Training
All staff members will take the one day Safe Food Handling Course Other food safety programs offered by SIAST will be taken
HR Stratagies
Motivation:
Family Business Membership benefits
Marketing Plan
Marketing Mix
Price
High, but still competitive
Promotion
Fresh, homemade, good quality, down home farm feel
Wakaw, Saskatoon, Melfort
Place
Positioning
Bulk Cheese Warehouse/Sask Made Marketplace Farmers markets
SWOT Analysis
Internal Strengths
Family business Location Homemade recipes
Internal Weaknesses
Location Inexperience Increased prices
SWOT
External Opportunities
Desire for healthier lifestyle Niche market in urban areas Large target market area
External Threats
Change in lifestyle trends Increased fuel prices Competitors having lower prices
Competition
Country Crossroads
Prices
Very High
Edge
-located just off highway 41 -many services; gasbar/ Subway/cstore/restaurant -make product from scratch and Ready-Make
Very Low
-use pre-mixed frozen dough, which cuts costs -located downtown Wakaw
Melfort Co-op
Very Low
Average
-viewpoint of customers is very positive -charge more for individual items -is a caf/bakery -located in the city of Melfort
Farmers Markets
Average-High
-located down-town -charge more for individual items -large number of customers -wide variety of products
Compared To.
The Bakery Products Prices Edge
Bread/loaf Bread High -brand new facilities
Buns/dz
Buns
Other
Muffins
-family owned/operated
Tarts
-is a caf/bakery
Cookies
Financial Plan
Financing
Total Financing Required $104,000
$150,000 $30,000
Total Financing
$180,000
Balance Sheet as of December 31, 2006 Assets Current Assets Total Current Assets Long Term Assets Total Long Term Assets Liabilities Current Liabilities 44587 Total Current Liabilities Long Term Liabilities 94431 Total Long Term Liabilities Owner Equity Total Owner Equity Total Liabilities and Owner 139018 Equity 1080 144477 -6538
Total Assets
139018
Ratio Analysis
Ratio 1. Liquidity Ratios Current Ratio 2. Investment Utilization Ratios Inventory Turnover Total Asset Turnover 26 1.44 -6.67 Company Average
2.93
86.4% 6.34 52.9% 9.8% 14% 103%
Risk Analysis
Critical Value
Interest rate on debt Fuel Prices Driver Wage Quantity of Bread (farmers market) Quantity of Buns (farmers market)
Base Case
8% $1,200 8.50 10,608
2,485
5,447
8,352
53.3
$1.31
$1.43
$1.78
$2.15
$2.50
$3.06
40.4
42.3
price
Contingency Plan
If price of bread decreases:
have to either increase sales to a break even level the bakery would have to find a way to decrease fixed costs
Methods
additional stall at the Saskatoon farmers market craft sales throughout the province
Questions/Comments?