The document provides a business plan for Reens Bakery. It outlines the location, services offered including bread, cakes and snacks. It discusses the target market of students in local schools. The plan details production processes, required equipment, and factors that could affect operations. It also covers organizational structure, recruitment, training, and financial projections for the bakery business.

1. REENS BAKERY BUSINESS PLAN
PRESENTED BY: Hellen Wanjiku
Matere

2. DECLARATION
I, Hellen, declare that this business plan has never been presented to any other examination body; The
production of this business plan should not be done with the consent of the author of the institution.

3. ACKNOWLEDGEMENT
• My sincere gratitude goes to almighty GOD for the strength and unfailing endurance He has given me
throughout the time of writing this business plan. I also thank Waka continuing education Centre for
allowing me to further my studies, and also acknowledge my lecturer Mr. Antony Matu for his
guidance throughout my business plan research.

4. EXECUTIVE SUMMARY
• My decision on ‘REENS BAKERY’ as the business name was based on the fact that it is a short and
distinctive name, which makes it easier for customers to remember and differentiate from competitors.
I will be preparing fresh, sweet and delicious commodities to our consumers. The business will also be
able to offer transport services. It will have delivery means which will be fast and reliable for the
commodities to reach the market targeted. This was after I discovered that most bakeries do not have a
delivery service which gives my bakery an added value and advantage over the others.

5. LOCATION OF THE BUSINESS.
• BUSINESS DESCRIPTION ADDRESS AND LOCATION
• The address will be;
• REENS BAKERY P.O.BOX, 149-510015
• reensbakery@gmail.com.
• The bakery will be located in Kirichu near Kiganjo along Kimani road. The main reason for situating
the bakery in Kirichu is the market availability. The large population of the area triggered the idea. The
area has many schools including Gachika Secondary, Kahiga Secondary, Kagumo High, Kirichu
Primary among many others which most are boarding. I did my research and found out that the
schools don’t have a steady supply of breads, snacks and cakes which are basically a necessity for
students in the schools.

6. SERVICES OFFERED
• The business will offer products like; breads, cakes, doughnuts, cookies, snacks, birthdays, wedding
cakes etc. The bakery will be offering high quality delicacies that compared to other bakeries. I will
ensure that the quality of my products is standardized and checked by the Kenya bureau of standards
before sale. The nearest bakery is located at King’ong’o which is unreliable and does not have any
delivery means. This is an advantage the bakery will have since there will be less competition. I noted
that most bakeries do not have delivery and hence consumers are left with no other choice but having
their means of delivery. The bakery will be able to deliver commodities from door to door hence an
added advantage.

7. Justification of opportunity
• The main problem that faces bakeries is unreliability and poor planning on the nature of commodities to produce.
Before setting up a bakery one should analyze the conditions of the surrounding or market so as to come up with best
solution to the gaps. The bakery will make sure that delivery of commodities will be fast and reliable at all time. It
will also be flexible in that it will be able to meet customer’s specifications in case of cooking birthday and weeding
cakes.
• Most bakeries and catering institution fail due lack of originality and also improper planning on the targeted
market. In my management, the bakery I will setup will have original flavors and delicacies which will leave the
consumers fighting for more. The market target is clear and almost certain.

8. The industry
• The proposed business falls under food industry. It will be based only on food substances.
INDUSTRY CHARACTERISTICS
• The food industry is largely monitored by the health officers as per county and one must focus on perfecting on the aspect. In the
bakery cleanliness and good hygiene will be the basis of
• Operation. The distribution means will be motorbikes at first which will be improved as time goes when business expand. The
technology advancement though has led the industry to grow at a very high rate. It has also played a very big role in the production
line which is highly automated throughout. Products will be manufactured in large quantities because there will be a wide market
demand.
INDUSTRY OUTLOOK
• In future, the business will be required to produce more to increase the sales since the market will be larger and more demanding.
Increase in sales will also trigger improvement or advancement of technology used at first to increase efficiency hence increase
both quantity and quality. The business due to this aspect will realize more profits. In expect the competition between the bakery
and the others to decrease as people will have realized the improved services and high quality standards offering.

9. Business objectives.
Short-term objectives
• I.Profit maximization – the enterprise will be intended to maximize its profit by offering competitive
products to its customers
• II.Offering high class transport services to its customers
• III.Creation of employment to the local community
• IV.Manufacturing high quality products that are fit for customer requirements
• V.Self-satisfaction – the bakery will provide the owner with his/her needs

10. Long term objectives.
• Expansion – this will help the business enterprise to open branches countrywide and also expand its
services.
• Introduction of machines – it will help the owner to reduce the number of workers in the business
hence reduce costs, maximize profits and increase efficiency.

11. Entry and strategy
• The business is intended to commence in January 2023. This is after completion of course. By this time I will
have the knowledge of organizing and controlling the business. The proposed
• business will produce competitive products to the customers compared to other businesses which will impact
employment and higher prices. The proposed business will advertise itself through personal selling method. It
will also create awareness of the products by conducting promotions to the customer.

12. CHAPTER 2
• In this Chapter I have highlighted the Marketing Plan, that details the customers, marketing strategies
and plans etc.

13. The Target Audience.
• The business target will mostly be students in the many boarding and day schools in the area. I thought hard of
where the location of the business would be suitable until I found the perfect location.
• It is almost at the exact center of the market radius of the consumers targeted. The reason for targeting students is
because of the fact that they like snacks which are fast foods. The target age bracket is the youth and adults both male
and female. Kiganjo location will have about 90% of the potential customers of the business and the other 10% from
the surrounding.

14. COMPETITION
• The bakery owner faces competition from Kiganjo and Homies Bakeries, the two main competitors in
the area. While Kiganjo is a well-established bakery in the locality, Homies Bakery is a well-
developed business offering similar products. To succeed, the bakery sponsor must prioritize high-
quality products, address issues of unreliability and poor planning faced by competitors, and capitalize
on the advantage of a reliable delivery service and original flavors to stand out in the competitive
market.

15. Advantage of Reen’s Bakery over its competitors
• 1.The sponsors of the business may help each other to solve an encounter problem.
• 2.The proposed business will be near the source of raw materials and its customers thus reducing cost
of production.

16. Disadvantages of Reen’s Bakery over its competitors
• 1.The competitors will take a sizeable share of the market.
• 2.The competitors already have existing customers.

17. ADVERTISING AND PROMOTION STRATEGY
• The bakery business will first advertise its products and services through posters written on papers.
There will also be the introduction of business cards, written the name, location and contact addresses
of the bakery on it. They will be designed in such a way that as the customers purchase items the cards
are issued so that they can also invite their friends. During the advertisement the proposed business
will portray the quality of product, availability, durability and the price of the products. The
effectiveness of advertisement will be measured by total, volume of sales incurred after the
advertisement.

18. PROMOTIONS TATICS
• The business sponsor will employ product promotion in the bakery in various ways such as;
• Free demonstration to customers.
• Price off i.e. Reduce on the prices
• Free samples in small quantities
• Awarding regular customers with small gift packs.
• The owner of the business may also add 10grams above the normal quantity of bread to
promote the product in the market. The effectiveness of the promotion will be measured with
the amount of products bought during the time of promotion. This will be compared to the
number of products bought before promoting to obtain the effectiveness.

19. CHAPTER 3
• In this chapter I have stated the duties and responsibilities of the manager are highlighted including those of other
personnel.
• Recruitment, training and promotions requirements are explained as well as remuneration and incentives to be
given to the personnel.
• Legal requirements for the start-up are outlined.

20. ORGANISATION AND MANAGEMENT PLAN
• Manager
 The person who provides overall management of the hotel
• Requirements
 Age over 30years
 The person must have worked in a hotel for at least 3years
 Must be trust worthy and honest
 Must be a computer literate

21. Duties and responsibilities
• I.Approve all the payments going out of the business
• II.Will be the overall manager of the business
• III.The one who calls and chairs the staff meetings
• IV.Will be the internal auditor of the business
• V.Recruiting of employees
• VI.Implementation of decisions accordingly

22. Finance Manager
• Requirements
 Should age below 30years
 Personnel qualities
 Trust worthy and honest
 Able to work under minimal supervision
 Possess good accounting and finance skills

23. Production Manager
• Requirements
 Work experience of 1 to 2 years
 Communicate fluently
 Operate under less supervision
 Time conscious

24. Duties and responsibilities
 Able to make quick decisions
 In charge of production unit and the employees
 Approves the daily working hours of production employees

25. PRODUCTION SUPERVISOR
• Requirements
 1 year of work experience
 Should be loyal
 Time conscience
 Should be faithful

26. Duties and responsibilities
 Supervise production workers
 Take record of employees attendance
 Implement the orders from the production manager

27. RECRUITMENT, TRAINING AND PROMOTION
• Recruitment at the business will be a collaborative effort led by the general manager, who
will work closely with the assistant manager and other team members to identify vacancies
and advertise job opportunities through computer-based platforms. The manager will
meticulously review applications, shortlist candidates, and conduct interviews. Additionally,
the manager will undertake the responsibility of orienting new hires.
• Following recruitment, a comprehensive training program will be implemented, utilizing
seminars conducted by experts under the general manager's supervision to equip employees
with essential skills and knowledge. The cost of training will be a shared responsibility
between employees and management.
• Regarding promotions, employees displaying potential for upward mobility will be given
priority before external advertisements, with evaluations based on performance determining
rewards and recognition to motivate diligent and reliable staff members.

28. CHAPTER 4
• In this chapter, the production plan and facilities are highlighted.
• The regulations affecting operations are also outlined here.

29. PRODUCTION PROCESS
The Production process will be as follows:
• I.Make sure power supply is stable
• II.Have all the raw materials ready
• III.Mix the required quantity in the appropriate ratio using electronic dough mixer
• IV.Weigh the pieces using the weigh scale and divider machine
• V.Roll the dough and put it into molding tins
• VI.Take them into the oven, wait for 30 to 40 minutes for readiness
• VII.De-mold them and put them into the cooling tracks to cool at room temperature
• VIII.Take them to be sliced by the slicing machine or leave the blocky if the design is blocky
• IX.Pack the ready bread using the polythene wrap branded with the business name, logo and contacts.
• Distribute the products to the immediate consumers for consumption

30. Tools and equipment
• It is a policy that every tool that may break will be reported to the administrator who will make necessary
arrangements for repair and maintenance with the suppliers.
• Repair and maintenance of tools will be done regular to ensure smooth serving of customers.

31. Factors affecting the production process
• These are classified into two; external and internal factors
• External factors are those factors that affects the business from outside and affects the operation of the business.
These factors include;
 Electricity failure-
 Competition
 Natural calamities
 Government policies

32. The Solution
 In case of competition, the owner seeks the weakness of competitors and tries to perfect it so as to attract more
customers
 In case of electricity failure, the bakery has got the voltage backup
• Internal factors are factors that affect the business from inside these are;
 Theft
 Frequent strikes from the employees
 Frequent machines breakdown for instance the ovens

33. These are some of the solutions to minimize the loss;
 The hiring of qualified technician who keeps these machines working in
• case of any breakdown
 Payment of good salaries to reduce the chances of strikes
 Tight security to minimize theft

34. CHAPTER 5
• Financial plan
• In this chapter shows investment in the business cost incurred in and the flow of money