Start-up Business Plan - Bakery

FIVE SISTERS BAKERY BUSINESS PLAN PREPARED BY: GROUP 9
Fundamental Of Global Business Management Page 1

Five Sister Bakery's Logo (FSB)
Test & Love, and You will come back

Contents
I. EXECUTIVE SUMMARY ..................................................................................................................... 4
1.1. INTRODUCTION.............................................................................................................................................4
1.2. THE COMPANY .............................................................................................................................................4
1.3. THE MARKET ...............................................................................................................................................4
1.4. VISION..........................................................................................................................................................4
1.5. MISSION .......................................................................................................................................................4
1.6. KEYS TO SUCCESS........................................................................................................................................5
II. COMPANY SUMMARY ........................................................................................................................ 5
2.1. LOCATION ....................................................................................................................................................5
2.2. START-UP SUMMARY ...................................................................................................................................7
III. PRODUCT .............................................................................................................................................. 8
3.1. PRODUCTS....................................................................................................................................................8
3.2. SPECIAL PRODUCTS......................................................................................................................................9
IV. SWOT.....................................................................................................................................................10
V. BAKERY LICENSE ..............................................................................................................................12
VI. MARKET ANALYSIS SUMMARY......................................................................................................12
6.1. MARKET NEEDS .........................................................................................................................................12
6.2. TARGET MARKET .......................................................................................................................................13
6.3. COMPETITION.............................................................................................................................................14
6.4. SALE STRATEGY.........................................................................................................................................15
VII. PROMOTION AND ADVERTISEMENT ............................................................................................15
7.1. PROMOTION................................................................................................................................................15
7.2. ADVERTISEMENT........................................................................................................................................16
VIII. MANAGEMENT SUMMARY ..............................................................................................................16
8.1. PERSONNEL PLAN.......................................................................................................................................16
IX. FINANCIAL PLAN ...............................................................................................................................16
9.1. BREAK-EVEN ANALYSIS ............................................................................................................................16
9.2. PROJECTED PROFIT AND LOSS....................................................................................................................17
X. REFERENCE.........................................................................................................................................18

I. Executive Summary
1.1. Introduction
Five Sisters Bakery (FSB) is retail and wholesale bakery shop that will locate in
Oceanside city which is the third-largest city in California. The plan of FSB is to attain and
maintain the interest of our customers with the broad variety of bakery, pastries products, coffee,
and soft drinks.
1.2. The Company
FSB is incorporated in the state of California with the capital of $300,000. We have 6
shareholders, $50,000/each. Our shop will equally own and manage by our 6 partners. These
partners represent sales/management and finance/administration areas, respectively. The partners
will provide funding from their own savings, which will cover start-up expenses and provide a
financial for the first three months of operation.
1.3. The Market
The retail bakery and coffee industry in the U.S. has recently experienced rapid growth.
FSB wants to establish a large regular customer base, and will therefore concentrate its business
and marketing on local residents which will be the dominant target market. This will establish a
healthy, consistent revenue base to ensure stability of the business. High visibility and
competitive products and service are critical to capture this segment of the market.
1.4. Vision
To be an Oceanside’s Premier Bakery creating an exceptional product and customer
service experience to new and loyal customers everywhere.
1.5. Mission
Five Sisters Bakery serves our families, local resident, and community by preparing
baked goods of exceptional quality with competitive prices to meet the demand of the low- to
middle- to higher-income in order to build a strong position in this city.

1.6. Keys to Success
Keys to success for FSB will include:
1. Good location: our shop will be located in 3772 Mission Avenue, Oceanside, California,
which was a community shopping center and near the bus station.
2. Provides the highest quality products
3. Competitive pricing
II. Company Summary
2.1. Location
Our shop is located on 3772 Mission Avenue #119, Oceanside, California, which is a community
shopping center, and mini mall.
- Size: 4.5m x 20m= 90 square meters
- Populations in 2013: 174, 558
- Density: 1,500/square meters
- The median income for
- household in the city was $46,301.
- family was $52,232
- male $34,772
- female $27,962
- The per capita income for the city was $20,329. About 8.2% of families and 11.6% of the
population were below the poverty line, including 16.25 of those under age 18 and 5.7% of those
ages 65 or over.

2.2. Start-up Summary
FSB is a start-up company. Financing will come from the partners' capital. The following
chart and table illustrate the company's projected initial start-up costs.
 Capital: $300,000
 Start-Up Expenses:
- Legal: $3,000
- Rental: $24,000/year
- Equipments: $40,000
- Decoration: $20,000
- Advertisement: $1,000
- Raw Materials: $5,000
- Security Camera: $2,000
- Utility: $500
- Other: $3,000
=>Total= $98,500

III. Product
3.1. Products
FSB provides freshly prepared bakery and pastry products at all times during business
operations. It means that Bakery and pastry products are prepared during the day to assure fresh
baked goods are always available. We also offer some coffee such as Espresso, Americano,
Cappuccino, Latte…and soft drinks like Coke, mineral-water...etc.

3.2. Special Products
We will offer new taste of cake which is popular in Cambodia known as Tory Cake
(តយខេក).

3.3 Products Menus
IV. SWOT
Strengths
- Good Location
- Good Decoration and Atmosphere
- Provide high quality of product with good services
- Lower employment cost
Weaknesses
- Limited capital
- Many Competitors in California
- Competitors can offer similar products like us
Donuts
Old Fashioned $0.70
1 Dozen Donuts $7.00
1 Dozen Donut Holes $2.50
Twist or Bar $1.00
Jelly $1.00
Chocolate Chip $1.00
Muffins
Blueberry $1.25
Banana Nut $1.25
Croissants
Ham and Cheese $2.50
Ham, Egg and Cheese $3.00
Sausage, Egg and Cheese $3.00
Bacon, Egg and Cheese $3.00
Bread
White Bread $2.00
Wheat bread $2.00
Whole grain bread $2.00
Baguette $1.00
Cake
Small $15
Big $25
1 slice $3.5
Beverages
Hot
Coffee $1.50
Cappuccino $2.00
Americano $2.00
Espresso $2.00
Cold
Coffee $2.00
Cappuccino $2.50
Americano $2.50
Espresso $2.50
Coke $1.00
Mineral water $0.60

Opportunities
- Stable politic and good economy
- Continued expansion for online sales

Threats
- Changes in regulations can impact the business
- Products are already sole by major competitors
V. Bakery License
Applying for Bakery License
• To sell baked goods in a physical bakery require State’s Business Licenses, Permit & Tax
authority.
• First step in getting state business license for baking is to get a Federal Tax ID number.
As a sole proprietor we may be able to use our social security number.
• Obtain a bakery license application from State Licensing agency. Most site offer from
online, and will need to pay an application fee typically $100 or less.
• To get bakery license, our store will have to be approved by state inspector to ensure that
we meet health requirements, and that the food we produce will not harm our customer.
• We may need additional occupation licenses, so again check with the state. we will be
contacted to schedule an inspection of our facility, and once you pass that, you should
receive our bakery license.
VI. Market Analysis Summary
6.1. Market Needs
Oceanside is a place that has a nice weather which is not cold or hot. The weather is the
same almost the whole year. In that area, there are a lot of workers and labors and all of them
need an easy and cheap breakfast for their daily life. So bread and all the pastry is the first choice
for them. It is a potential opportunity to open this business.

6.2. Target Market
FSB establish a large regular customer base, and will therefore concentrate its business and
marketing on local residents especially employees and labors who will be the dominant target
market. FSB focuses on the low to middle and upper income markets. These
market segments consume the majority of our products. This will establish a healthy, consistent
revenue base to ensure stability of the business. Latino also the 2nd
target of our market. The
catering cake service will be especially utilized by locals for large events and celebrations such
as birthday, wedding, and other parties.

6.3. Competition
Competition in the local area is somewhat sparse and does not provide nearly the level of
product’s quality and customer service as FSB. Local customers are looking for a high-quality
product with a nice tastes and reasonable price. They desire a tasty, hygiene and reasonable
price. Along the Mission Ave area, there are not many bakery shops.
There are the lists of the top competitor around the area
1. San Luis Rey Bakery Restaurant
2. Tan's Donut
3. Yum Yum Donut
4. Alberson Bakery
5. La Perla Tapatia
6. Mission Donut House

6.4. Sale Strategy
As the table below, FSB anticipates sales of about $350,000 in the first year, $500,000 in
the second year, and $700,000 in the third year of the plan.
Sales Forecast
Year 1 Year 2 Year 3
Sales $350,000 $500,000 $700,000
Other 0 0 0
Total Sales $350,000 $500,000 $700,000
Direct Cost of Sales Year 1 Year 2 Year 3
Cost of Sales $90,000 $150,000 $180,000
Other $0 $0 $0
Subtotal Direct
Cost of Sales
$90,000 $150,000 $180,000
VII. Promotion and Advertisement
7.1. Promotion
-The first week of grand opening, we will discount 50% of all our product and drink, and give
them a lucky draw gifts.
-We will offer promotion, buy one get one free, every evening from 5pm until 7pm.
-Get a seasonal discount up to 10%
-Provide a member card to get a discount up to 10% in every purchase
-Provide a stamp card that if all customer bought 10 times, they will get one object free.

7.2. Advertisement
We will also promote our shop by the social media such as Facebook, newspaper ads, door
hangers and flyers. Every Thursday evening at downtown Oceanside will host the sunset Market.
They are gathering of local vendors which include a lot of food, drink and live entertainment. So
it will be good for us to advertise our shop and let the people taste our products.
VIII.Management Summary
8.1. Personnel Plan
Personnel Plan
Managers (4 persons) $120,000 $144,000 $168,000
Pastry Bakers (2 bakers) $72,000 $84,000 $96,000
Other $0 $0 $0
Total People 6 6 6
Total Payroll $192,000 $228,000 $264,000
IX. Financial Plan
9.1. Break-Even Analysis
The following chart shows the first year Break-even Analysis calculation for Five Sisters Bakery
(FSB).

9.2. Projected Profit and Loss
As the Profit and Loss table shows, FSB expects to continue its steady growth in profitability
over the next three years of operations.
Pro Forma Profit and Loss
Sales $350,000 $500,000 $700,000
Direct Cost of Sales $90,000 $150,000 $180,000
Other $0 $0 $0
Total Cost of Sales $90,000 $150,000 $180,000
Gross Margin $260,000 $350,000 $520,000
Gross Margin % 74.28% 70% 74.28%
Expenses
Payroll $192,000 $228,000 $264,000
Sales and Marketing (Advertise) $10,000 $13,000 $15,000
Rent $24,000 $24,000 $24,000
Utilities $1,300 $1,500 $1,800
Other $3,000 $3,000 $3,000
Total Operating Expenses $230,300 $243,500 $307,800
Net Profit $29,700 $106,500 $212,200
Net Profit/Sales 8.4% 21.3% 30.31%

X. Reference
hthttp://www.lao.ca.gov/LAOEconTax/Article/Detail/113tp://www.bplans.com/bakery_business_pla
n/executive_summary_fc.php#.UPcBc_KHh8E
http://www.lao.ca.gov/LAOEconTax/Article/Detail/113
http://www.census.gov/quickfacts/table/PST045216/0653322
http://www.city-data.com/city/Oceanside-California.html

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