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Sarah Odetunde
- 1. Welcome The Business Plan You’vegot a business idea. You’ve decided to start a business. You want to get going. But there’s a lot more to a good business than a good idea. You need to think things through to maximise your chances of success. Are you the right person to run the business? Will customers like your product? A business plan will help you turn an idea into a business. It needs you to think through all the parts of your business to plan how everything will work. It will take a few weeks to write if you’re going to do it properly. Some parts will be easier to complete than others. Stick at it because it’s not the final document that’s important, it’s the process. Although you want to have a good plan when you’re done, an OK plan is better than no plan. The Prince’s Trust Business Plan Pack The best business plans aren’t long and complex; they explain only the most important information – what you want to achieve, how you will get there and the things you need to do along the way. It’s best to tackle a business plan in small chunks. The Prince’s Trust Business Plan Pack can help. This is The Business Plan divided into sections to help you develop your business idea. You can use the information in The Guide to help you complete the sections. Some of the sections of The Business Plan have tables to record the financial parts of your business. The tables are also available in MS Excel format and the sums in these are automatic. The Prince’s Trust Enterprise Programme The Prince’s Trust has helped many young people to complete their business plans and start their own businesses. If you are aged 18–30 and unemployed or working fewer than 16 hours per week, then we might be able to help you. We have offices throughout the UK and in each there is a team of Enterprise Programme staff. To take part, you need to be interested in self employment and have a business idea that you would like help to test and explore. The programme can then help you to see if your business idea will work and whether self employment is right for you. If through this process you find out it is, the programme can offer mentoring support and, if you really need it, financial support to start your business. However, if self employment turns out not to be the right option, the programme can offer support to secure other goals in employment, education, training or voluntary work. We can’t guarantee that your business will work or that we will be able to offer you money, but if you are up for a challenge and want our help to explore your business idea, get in touch and come and meet us.
- 2. Getting started Whose planis this? Business and owner details: Modupeoluwa Sarah Odetunde Business name: Sarah’s bakes Owner(s) name: Modupeoluwa Sarah Odetunde Business address and postcode: Gonyeli north Cyprus Business telephone number: +905428830639 Business email address: dupsygem4loves@gmail.com Home address and postcode (if different from above): Home telephone number (if different from above): Home email address (if different from above):
- 3. Section one Executive summary 1.1Business summary: My cake shop is a retail shop located in north Cyprus. My plan is to attain and maintain the interest of my customers with the broad variety of cake, snacks and other products. It will build a strong position among competitor by offering my product at a competitive price and quality products. 1.2 Business aims: I will serve all my customers by providing my products with affordable price and by rendering services that will put a smile on their faces. I will make no discrimination between my customers. 1.3 Financial summary: I will not be applying for financing. I plan on using some money I saved in the bank. I have about 3000tl in my saving account. If something goes wrong, I have back-up money and more than enough for my start- up cost. I will be using my house for the time been. I hope that after a few years of being open that I have enough money to buy a shop
- 4. Elevator Pitch 1.4 Yourbusiness name: Sarah’s bakes 1.5 Strapline: A little bliss in every bite 1.6 Elevator pitch: Sarah’s bakes is a small business which produces mainly Nigerian recipe cakes which serve Nigeria student as well as individuals at large in north Cyprus using modern flavours quality ingredient the cakes primary aim are birthday parties, student gathering, special occasions. All cakes are produced to order.
- 5. Section two Owner’s background 2.1Why do you want to run your own business? because I love to be an entrepreneur and to help African student to feel at home. 2.2 Previous work experience: Still a student, No work experience 2.3 Qualifications and education: Degree in business administration in NEU 2.4 Training: Certificate and associate’s degree programs in pastry arts and cake making, also known as cake decorating, teach the necessary skills needed to decorate cakes and effectively communicate with customers Details of future training courses you want to complete: Catering and Restaurant management 2.5 Hobbies and interests: cooking and baking 2.7 Additional information:
- 6. Section three Products andservices 3.1 What are you going to sell? a product a service both 3.2 Describe the basic product/service you are going to sell: Nigeria snack 3.3 Describe the different types of product/service you are going to be selling: Cakes, chin chin, egg roll etc… 3.4 If you are not going to sell all your products/services at the start of your business, explain why not and when you will start selling them: First, I want to be specialized in providing in “Cupcakes” and Nigerian Snacks… Secondly, in long range I want to create a complement store providing Nigerian Food & Deserts. 3.5 Additional information:
- 7. Section four The market 4.1Are your customers: individuals businesses both 4.2 Describe your typical customer: Africa people 4.3 Where are your customers based? Cyprus 4.4 What prompts your customers to buy your product/service? It a base need for Nigerians to get the product because of the taste And for them to feel at home because Turkish snacks and food is different 4.5 What factors help your customers choose which business to buy from? • Therefore, to provide a better homemade snack for Africans (Nigeria) • This kind of snacks is too expensive here in Cyprus. • Our Nigerian life style in the way we serve, dress, and place. • The kind of events we provide to our customers. 4.6 Have you sold products/services to customers already? yes no If you answered “yes”, give details: 4.7 Have you got customers waiting to buy your product/service? yes no If you answered “yes”, give details: 4.8 Additional information:
- 8. Section five Market research 5.1Key findings from desk research: internet and social media 5.2 Key findings from field research – customer questionnaires: We done a research on 50 African friends asking them about the different between African snack and Turkish snack And they said they saw a very high prices , not a good quality , and also the places is not give them the soul of Africa.. 5.3 Key findings from field research – test trading: we offer to our friends a kind of cakes and African snacks we cooked at home they love the cakes so much, and they tell us some notes on the snacks ...." 5.4 Additional information:
- 9. Section six Marketing strategy Whatare you going to do? Why have you chosen this marketing method? How much will it cost? Word of mouth Advertising Social Media Word of mouth is arguably the most effective form of business promotion and marketing. Friends are the most supportive of my business venture so start promoting my business with their help. Donate my cake to churches holding bake sales to raise funds. I give them flyers to pass out to their friends. Distributing business card Easy communication with customer 100tl TOTAL COST 100tl
- 10. Section seven Competitor analysis 7.1Table of competitors Name, location and business size Product/service Price Strengths Weaknesses Cake boss Gonyeli small size Cake 150tl • Have more experience • Has operate the business for more than years • Newly establish with new furniture • Well-known by most of the customer • Lack of staff • Unattractive environment • New in the market • High price of product
- 11. 7.2 SWOT analysis: Strengths •Produce creative and unique cake • Provide something different unlike any competitor in the market • Give everyone regardless of budget the opportunity to have a special cake Weaknesses • New in the market • New setup • Need to ensure consistent high quality product to stay competitive in the market • Lack of experience Opportunities • High quality product with reasonable prices • Expansion of the product line. • Growing concern for health Threats • Experience of competitors in the market and best advertisement strategies example Gloria jeans and other cakes shop • Without online engagement and optimization, the company can get lost in the crowded market place. 7.3 Unique Selling Point (USP): Unique Selling Point (USP) Good quality and attractive look for each product Unique decoration for each event or orders
- 12. Section eight Operations andlogistics 8.1 Production: I will make 20 cakes in a day, and it will take me 5 hours to bake all the cakes 8.2 Delivery to customers: Yes, for customer who is close by, free delivery 8.3 Payment methods and terms: With cash 8.4 Suppliers: Name and location of supplier Items required and prices Payment arrangements Reasons for choosing supplier City centre where they sell all ingredient for baking Flour 250 Sugar 100 Butter 60 Baking powder 50 Egg 50 Lcing sugar 30 All in cash They have the best quality of product for baking 8.5 Premises: 8.6 Equipment If being bought Item required Already owned? New or second hand? Purchased from Price Cake pans Pastry brush Mixer Cake filling YES New 1001 supermarket $100 8.7 Transport: N/A 8.8 Legal requirements: N/A 8.9 Insurance requirements: N/A 8.10 Management and staff: On my own for some period of time
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- 14. Section nine Costs andpricing strategy Product/service name Sarah’s bakes A Number of units in calculation 20 B Product/service components Baking powder, butter, flour, sugar, icing sugar, chocolate, Components cost 3000tl C Total product/service cost 3000tl D Cost per unit 150tl E Price per unit 130tl F Profit margin (£) 50tl G Profit margin (%) 39% H Mark up (%) 33%
- 15. Section ten Financial forecasts 10.1Sales and costs forecast Month 1 2 3 4 5 6 7 8 9 10 11 12 TotaL A Month name Jan Feb mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales forecast B Product/service 602 452 602 662 903 482 452 361 572 692 753 602 7135 C Product/service 30100 22600 30100 33110 45150 24080 22575 18060 28595 34615 37625 30100 356710 Costs forecast D Product/service 90300 67800 90300 99300 13545 0 72300 67800 54150 85800 103800 112950 90300 107025 E Assumptions (e.g. Seasonal trends) My assumption is that in summer period most Africa student will go home the sales of my product will go down.
- 16. 10.2 Personal survivalbudget Section Monthly cost (£) A Estimated costs Mortgage/rent 1500 Council tax N/A Gas, electricity and oil 200 Water rates 100 All personal and property insurances 500 Clothing 600 Food and housekeeping 300 Telephone 60 Hire charges (TV, DVD etc.) N/A Subscriptions (clubs, magazines etc.) N/A Entertainment (meals and drinks) 150 Car tax, insurance, service and maintenance N/A Children’s expenditure and presents N/A Credit card, loan and other personal debt repayments N/A National Insurance N/a Other B Total costs (£) 3410 C Estimated income Income from family/partner Part time job 1000 Working tax credit N/A Child benefits N/A Other benefits N/A Other D Total income (£) 1000 E Total survival income required (£) 2410
- 17. 10.3 Cashflow forecast Month Pre- start1 2 3 4 5 6 7 8 9 10 11 12 A Month name Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Money in (£) B Funding from The Prince’s Trust 10000 10 Funding from other sources 5000 5 Own funds 1000 100 100 100 100 100 100 100 100 100 100 100 100 2 Incomes from Sales - 30100 22600 30100 33110 45150 24080 22575 18050 28595 34615 37625 30100 35 Other - - - - - - - - - - - - - C Total Money in (£) 16000 30200 22700 30200 33210 45250 24180 22675 18150 28695 34715 37725 30200 373 Money out (£) D Loan repayments The Prince’s Trust - 10042 10042 10042 10042 10042 10042 10042 10042 10042 10042 10042 10042 10 Personal drawings Tools 500 500 500 500 500 500 500 500 500 500 500 500 500 6 postage 100 100 100 100 1001 100 100 100 100 100 100 100 100 1 water 150 150 150 150 150 150 150 150 150 150 150 150 150 1 materials 500 500 500 500 500 500 500 500 500 500 500 500 500 65 phone 70 70 70 70 70 70 70 70 70 70 70 70 70 9 Light 200 200 200 200 200 200 200 200 200 200 200 2002 200 2 Maintenanc e 600 600 600 600 600 600 600 600 600 600 600 600 600 7 rent 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 13
- 18. E Total money out (£) 3120 3120 3120 3120 3120 3120 3120 3120 3120 3120 3120 3120 3120 40 F Balance (£) 12880 27080 19580 27080 30090 42130 21060 19555 15030 25575 31595 34605 27080 33 Opening balance 12880 12880 14200 5380 32460 62550 104680 124235 143790 158820 184395 215990 250595 27 Closing balance 12880 14200 5380 32460 62550 104680 124235 143790 158820 184395 215990 250595 277675 55
- 19. 10.4 Costs table Costitem What is included and how you worked it out Total cost 50 egg 250 flour 100 sugar 90 vanilla extract 50 baking powder 40 condensed milk 30 evaporated milk 100 whipping cream Total cost 710 total manufacture cost 710
- 20. Section eleven Back-up Plan 11.1Short-term plan: My short term plan is to implement more efficient marketing by using social media apps like Facebook and Instagram, purchase new and efficient equipment to streamline processes, expanding my customer base by 50% and to raise my turnover and profit 11.2 Long-term plan: My long term plans is to get shareholders in the business, expand the business and get a shop in the city and have more outlet in various part of the city and finally make my business recognized internationally. 11.3 Plan B: if my business fails I will close it down and stop the cake production so that I don’t incur more losses and I will also sell the baking tools and equipment. 11.4 Plan B continued...: I will start selling African inspired clothing because a lot of international students schooling in north Cyprus come from Africa.