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What exactly is it that is going to be sold or done?
Bake and sell the following:
Place your research into the business under each of the bold headings and delete the text in italics.
What skills are needed to do this? Where is this taught and how much will it cost?
- Must know ho to bake
- must be able to do costing
What tools or equipment are needed? Where can they be bought, and how much will they cost?
How much space is needed to work from?
Only a kitchen
Where will the space be found, and how much will it cost to rent?
Business will be conducted from home
What sort of people will buy the product? Who are they and where do they live?
How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?
- 1 bread per household per day
- Most clients will come to my home
Upstream Businesses Edit
A list of businesses and ideas that provide the services and products that this business needs.
Downstream Businesses Edit
A list of businesses and ideas that this business could provide products for.
What major competitors will attract clients' spending away from the business' products?
What prices and products do these companies have?
What makes them popular / unpopular?
Their bread do not taste homemade
What do they do to attract customers? Specials? Interesting marketing / advertising?
They are close to clients
Which of the competitors stand out as being particularly good at what they do?
No one - their bread are mass-production
What can be done to stand out against them? What can be done that is more exciting / more interesting?
Client like mine more because:
- more healthy
- homemade taste
Marketing the business to clients Edit
What sort of people will buy the products and how important is product consistency to them (e.g. must every loaf of bread be identical)?
- Petrol station
- Most people of community
Bake only bread on order
How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)?
always the same
Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)?
They want high quality products at affordable prices
How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest?
- The nice smell of homemade bread attracts clients
- the bread are lookin very good
Do the clients want the same things sold in the same way, or do they want things to change all the time?
Yes, they always want the same home baked bread
What can be done to attract the first clients (the most important and most difficult to get)? How much will it cost?
I will give small samples to potential clients
The business inputs and outputs Edit
List all of the inputs (products that are required to produce the products):
List all the suppliers for the inputs and their addresses, telephone numbers, and sales terms (cash, 30 days, etc.):
All on cash terms
List all of your outputs (products created by your business):
- Home made bread
- home made rolls
- Beskuit (rusks)
What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)?
Do the outputs have a shelf-life? Must they be sold within a specified time limit before they go off / can't be sold? Which ones?
Yes, it have, but I am only going to bake on orders
Setting up the business Edit
List everything that needs to be done to prepare the business to be ready (list everything needed to have as well, both equipment and stock):
- Oven (own)
How long will it take to get all of these things and how much will they cost to get?
List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages):
Total amount for fixed costs:
How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)?
The owner will do all the baking herself, the assistant will do the cleaning and other smaller jobs
What training will they need, how long will it take and how much will it cost?
the assistant will receive inhouse training
The manufacturing or production process Edit
List every step, from start to finish, to produce the product
- Buy ingredients
- bake bread
- Put in bags
- Deliver if necessary
- Receive money from clients
Allocate each of the manufacturing steps to a process and a process to a staff member (e.g. all manufacturing steps A to process 1):
I will do it myself Assistant will wash
What possible problems may happen during each step of the manufacturing process?
A power failure while bread is in oven If flour are old
What solutions can be identified for these problems? How much will they cost and how long will they take to fix?
- Power problem - no solution
- Buy flour from other supplier
What is the maintenance program for all the equipment?
Oven must always be in a good working condition
What safety requirements are important for production?
- wear protective clothing
- hygine environment
How will quality control and client feedback be handled?
- will replace if possible
- otherwise will give money back
Costing and bookkeeping Edit
How many of each of the stock items can reasonably be sold each day (and month)?
Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)?
always the same but a little bit more in winter
What sort of pricing strategy will be chosen (cheapest or best)?
The best price clients can afford
What profit margin will be chosen for the products
Will depend of what product (not fixed)
Write down the cost prices plus the margin for each stock item you will sell, and the selling price
Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much?
Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable?
Set out the products, costs, margins and selling prices:
Total per Month
What trends are included in the projections?
Running the business Edit
What is the process for running the business on a typical day? Who will be responsible for each step? Link this back to the production process.
start baking in the morning
Who will act as backup should the person responsible not be there? What do they need to act as backup?
What weekly processes need to be performed? Who is responsible, who is backup and what tools are required?
What monthly processes need to be performed? Who is responsible, who is backup and what tools are required?
- Pay my assistant
What is the schedule for training and motivating staff?
Commission if getting more sales
What processes are required for maintenance and new product creation? Who is responsible and what tools do they need?
- Market research
- Ask clients what they want
Before beginning Edit
List some of the support services available (legal, business and other) that might be needed
What major laws concern the business, and which government departments should be called to keep up to date (list phone numbers)?
Related articles Edit
Insert links to articles on Wikipedia or other Wikis that may be useful (such as recipes, legal discussions, accounting articles, and so on)
List links to outside websites that may be useful for anyone starting this business
Business Trials Edit
List your name if you started a business based on this plan, where you started the business, and how you did Links to case histories - you are welcome to develop these and insert them in your personal page (create this by developing a personal profile)