Entrepreneurship Development 1.0 Introduction 1.1 Origin Ms. Jafrin Farid, the course Mentor of Entrepreneurship Development (MGT-360), in words authorized the task of writing this Business Plan as individually. I were independently formed of the Instructor selected the focus. The submission date of this Business Plan is September 10, 2006. 1.2 Purpose Immediate purpose of this Business Plan is to practically accomplish the requirements of the Entrepreneurship Development (MGT-360) course prerequisite and as a consequence to learn the formal Business Plan for a new business. Today’s life growing fast. It is full of demand and expectation. For that there are so much opportunities satisfy the peoples’ demand. This is an overwhelming opportunity for me to work at a part of a professional business field. In this regard I feel honored to prepare a formal Business Plan. In addition to serve this purpose it tries to find out•
To determine how to make a proper Business Plan,
•
To determine consumers need and
•
To learn how to be successful in business career
1.3 Scope of the Study There are lots of opportunities to make new businesses. The raw materials are very simple and available around us. As well as there are demand also. So, I used the scope is to take the opportunities and do a bakery business by introducing new bakery product with different flavor for the people. I have tried my level best to gathering the information regarding this type of business. 1.4 Limitation It is difficult to include all the information to prepare a proper Business Plan in Bakery food by providing different flavor in this short time. There for, I have arbitrarily picked some infamous information and I did not get enough information about that. I have tried to
include all the information about the Bakery business by introducing different flavor in Dhaka city in order to succeed in bakery food business. 1.5 Sources and Methods of Collecting Data Most of the relevant data and information taken from market survey of customer demand. So to find out enough information for Bakery food by providing new product and flavor, I have analyzed the customer demand and opportunity of making profit. Then I have collect data from different ways in different bakery house. I also talked with some people to know about their need and demand. I also collected some information from web area. 1.6 Business Plan Preview The Business Plan of JAM & JELLY CAKE started with Business Description where General description of business, Mission statement and Business Objectives explained. After that the Product description clarified. The Product description refers product feature, product benefits, proprietary rights and stage of development. The following part of the Business Plan expresses Industry and market analysis. Industry analysis, opportunity and trends, competitive environment and competition, Target market, customer analysis and sales analysis are clarified in this part. Then customer research, target market strategy, market positioning, product strategy, channel strategy, pricing strategy and advertising & promotion strategy explained in Marketing Plan. After the marketing plan JAM & JELLY CAKE clarified Operation and Management Plan which refers location, Supply chain analysis, inventory management system, stakeholders, physical facilities and factors, building interiors, layout patterns, manufacturing layouts, equipment, organizational chart and plan the personnel. The business plan of JAM & JELLY CAKE also explained Financial plan in the last section of plan. The Business Plan of JAM & JELLY CAKE end with supporting documents which represents extra relevant information to prepare a formal and fruitful business plan. 2.0 Business Description 2.1 General Description of Business
JAM & JELLY CAKE is a bakery business. It will offer various types of hygiene and quality bakery food mainly for middle, upper classes and vegetarian people in Dhaka, Bangladesh. JAM & JELLY CAKE will focus with bakery food like cake, bread and biscuits with different flavor. JAM & JELLY CAKE will be organized as a sole trader business. The target area of JAM & JELLY CAKE is Banani, Uttara and Dhanmondi residential area. The main objective of JAM & JELLY CAKE is to provide hygiene and quality cake, bread and biscuits with chocolate, vegetable, egg and milk flavor with reasonable price. First time JAM & JELLY CAKE will start with two skilled cook and three unskilled people. Later on JAM & JELLY CAKE will open a training center to make bakery food to minimize unemployment problem of Dhaka city. Brand Name : JAM & JELLY CAKE (Be Enlighten) Product
: Jam & jelly cake, Chicken cake, Fish cake, Egg cake, Chocolate cake, Banana
Cake, Regular bread, Jam & Jelly bread, chicken bread, and biscuits with vegetable, egg and chicken flavor. Factory, Head Office and Sales Center: Banani, Dhaka, Bangladesh. Other Sales Area: Uttara Tower, Uttara and Dhanmondi. Location: JAM & JELLY CAKE has select its Factory, Head office and Sales centre in TRADE CENTRE, Banani. Banani is very important place. TRADE CENTRE is located in Kamal Atartuk Avenue. There are eight private university, ten Bank, one post office, and many private offices in this road. But Cooper’s and Kings Confectionary are not operating their business in this road. This is very important road in Banani. And there is a wide public market called
Banani Bazar in this road. Transportation and parking facilities are also a part of great advantages. On the other hand office rent and other expenses are very high. So, expensive office and availability of parking area are the part of disadvantages. 2.2 Mission Statements of JAM & JELLY CAKE Mission Statements of JAM & JELLY CAKE is to provide a range of hygiene and quality bakery food with different flavor for making a positive impact in bakery foods for middle and upper classes vegetarian people. 2.3 Business Objectives JAM & JELLY CAKE want to solve the problem of producing wide range of bakery food with different flavor. Then JAM & JELLY CAKE will produce chanachur and chips with fruits, chicken and Jam & Jelly flavor. JAM & JELLY CAKE also want to minimize the unemployment problem in Dhaka city. 3.0 Product Description In product description part, JAM & JELLY CAKE has studied about product feature, product benefits, proprietary rights and stage of new product development.
Cake 3.1 Product Feature and Description: All the product of JAM & JELLY CAKE will be attractive, compassionate and well packaged.
Product Line
Raw Materials
Weight
Price (Taka)
Chicken Cake
Flour, Sugar, Egg, Butter,
200 g.m.
40.00
200 g.m.
30.00
Chicken. Chocolate Cake
Flour, Sugar, Egg, Butter, Chocolate.
Egg Cake
Flour, Butter, Egg, Sugar.
100 g.m.
15.00
JAM & JELLY CAKE
Chocolate, Flour, Sugar, Egg,
1 k.g.
400.00
Birthday Cake
Butter.
JAM & JELLY CAKE
Vanilla, Egg, Flour, Sugar,
1 k.g.
400.00
Birthday Vanilla Cake
Butter.
JAM & JELLY CAKE
Flour, Sugar, Egg, Butter,
1 k.g.
450.00
Wedding Cake
Chicken, Chocolate, Vanilla
JAM & JELLY CAKE Pear
Flour, Sugar, Egg, Butter,
1 k.g.
450.00
Heart Cake
Vegetable, Chocolate,
1 k.g.
400.00
300 g.m.
35.00
300 g.m.
30.00
Vanilla JAM & JELLY CAKE
Flour, Sugar, Egg, Butter,
Beach Cake
Chocolate, Vanilla
Chicken Bread
Flour, Egg, Chicken, Sugar, Butter.
Jam & Jelly Bread
Flour, Sugar, Egg, Butter, Potato, Onion, Tomato, Carrot.
Regular Bread
Flour, Sugar, Egg, Salt, Yeast.
300 g.m.
25.00
Regular salt Biscuits
Flour, Butter, Egg, Salt.
200 g.m.
25.oo
Fig: JAM & JELLY CAKE’s product description
JAM & JELLY 3.2 Product Benefits JAM & JELLY CAKE is a small house but suitable decorated and simplicity comfort to the guests. JAM & JELLY CAKE want to provide hygiene & quality food with reliability. Customer will get greater out put because JAM & JELLY CAKE will never use synthetic harmful color. All the products color of JAM & JELLY CAKE will be natural. JAM & JELLY CAKE is committed not to use harmful raw materials to produce cake, bread and biscuits. The entire customer will get fresh and healthy food from JAM & JELLY CAKE. JAM & JELLY CAKE will provide various kinds of Birth day and Weeding cake to fulfill the demand of potential customer.
Chicken Cake 3.3 Stage of Development JAM & JELLY CAKE can include with another new flavor, the shape and style. JAM & JELLY CAKE will try to find out the demand of new product with original products, products improvements, products modifications and new brands. JAM & JELLY CAKE will follow in their new products development which represented as follow—
Idea Generation
Idea Screening
Concept Dev. & Testing
Marketing Strategy Jam & Jelly New Product Development Business Analysis
Commercialization
Test Marketing
Product Development
Fig: JAM & JELLY CAKE’s new product development 4.0 Industry and Market Analysis 4.1 Industry Analysis Food industry is continuous to grow. Within the industrial sector, the growth of the food processing industry is particularly important for Bangladesh as this is one of the major industries in terms of contribution to total manufacturing production and employment. Changes in mean capacity realization rates in the food processing industry over the three periods suggest that enterprises in different sectors within the industry recorded only moderate increases in efficiency during the post-reform period. The average rate of capacity realization for this industry increased by only 7 per cent, from 51 per cent in 1981 to 58 per cent in 1991. There is still a substantial unrealized productive capacity in most of the enterprises in the food processing industry. On the average, capacity realization increased most sharply in the fish and seafood sector by 31 per cent from a low mean of 47 per cent in 1981 to 78 per cent in 1991. The reason for this sharp rise may be attributed to the outward orientation of this sector and the need for competition. All the firms in this sector adopted a 100 per cent export orientation approach. The remaining industries showed little or no improvement. The consumers of Dhaka City now spend a whopping 3000 million Taka per year on bakery food. During the period of 2002 to 2006 the bakery market of Dhaka city grew at 40%. This has generated a boom in bakery food opening the last five years. People are always wish different types of food with new and desirable flavor. We can change the section of product and market by producing a range of hygiene and quality food with different flavor. Our business is oligopoly organization. 4.2 Opportunity and Trends Cake, bread and biscuits are minor food in our daily life. But some specific time these are used as immediate food especially in the morning. JAM & JELLY CAKE will produce Cake, bread and biscuits with Vegetable, Chocolate, chicken and fruits flavor. The growing number of health conscious people can be a good market for future Jam & Jelly and chicken cake,
bread and biscuits. As the raw material of the cake, bread and biscuits are available in Bangladesh. Huge amount and various types of vegetables are growing in Bangladesh and the Government is also fear about agro based business and others types of business boom to contribute in national GDP. So, Raw materials and skilled employees are available and JAM & JELLY CAKE think intense, reoccurring and detailed training is the cornerstone to success. Technology are also easy to operate and available with reasonable price. JAM & JELLY CAKE will organize Superior building, good quality show room, excellent sitting arrangement, and hygienic environment for infrastructure support. From opportunity analysis JAM & JELLY CAKE think cake, bread and biscuits with vegetable, chocolate, chicken and fruits flavor will get good support from Bangladeshi market especially in Dhaka area. Finally the main trends of JAM & JELLY CAKE are to provide a wide range of bakery food with different flavor and reasonable price.
Jam & Jelly Cake 4.3 Competitive Environment and Competition Fresh and quality foods are always demandable. There are many bakeries in Dhaka city. All the bakeries are willing to making more profit. Before starting the operation JAM & JELLY CAKE tried to gather information about some competitor in food and bakery sector in Banani, Uttara and Dhanmondi area. The nearest six competitor that JAM & JELLY CAKE found are as follow1. Cooper’s 2. Sadia Hot Cake
3. Ideal Bakery 4. CSD Bread & Biscuit factory 5. Kings Confectionary 6. Yousuf Confectionary JAM & JELLY CAKE has analyzed about the competitor and divided them two functions as Direct and Indirect competitor. Direct Competitor-Kings and Yousuf confectionary. Indirect Competitor- Cooper’s, Sadia Hot Cake, Ideal Bakery, CSD Bread & Biscuit factory. Competitive Matrix Chart Competitor
Product
Unique
Distribution
Adverti
Geogra-
Product
Service
Feature
System
sing
Phic
Layout
Packaging
Location Kings
5
5
5
0
4
4
4
Cooper’s
5
5
5
0
3
5
5
Sadia Hot
3
3
3
0
2
3
2
Ideal Bakery
2
2
2
0
2
2
1
CSD Bread
3
2
2
0
2
3
2
Yousuf
4
4
4
0
3
4
3
Confec.
Cake
Confec. Agree completely=5, Mostly agree=4, Partially agree=3, Mostly disagree=2, Disagree completely=0.
From the competitor analysis JAM & JELLY CAKE find out some information of competitor’s strength and weakness. The strength and weakness are as follows: Kings Confectionary: Product services, unique feature, distribution system, packaging and product layout are the strength of kings confectionary. Advertising is the main weakness of kings confectionary. On the other hand there is some problem in selecting location. Cooper’s: Product services, unique feature, distribution system and packaging are the strength of kings confectionary. Advertising is the main weakness of kings confectionary. There is some problem in selecting location and product layout. Sadia Hot Cake: Distribution system is the main strength of sadia hot cake. Product services, unique feature, geographic location, advertising, packaging and product layout are the weakness of Sadia hot cake. Ideal Bakery: Product service and selecting location are the strength of Ideal Bakery. Distribution system, unique feature, geographic location, advertising, packaging and product layout are the weakness of Ideal Bakery. Gulshan Bread: Product feature and product layout are the strength of Gulshan Bread. Distribution system, unique feature, geographic location, advertising, packaging and product feature are the weakness of Ideal Bakery. Yousuf Confectionary: Product services, unique feature, distribution system, Location and product layout are the strength of kings confectionary. Advertising and packaging are the weakness of Yousuf Confectionary. Finally, Cooper’s, kings confectionary and Yousuf confectionary are main competitor. But in Banani Kamal Atarturk Avenue, Cooper’s or Kings confectionary are not available. There is a branch of kings in road no. 11. And Cooper’s are not operating their service in Kamal Atarturk Avenue. So, there is a great opportunity to start the operation of JAM & JELLY CAKE.
4.4 Target Market and Customer Jam & Jelly cake, Chicken cake, Fish cake, Egg cake, Milk cake, flouts cake, Jam & Jelly biscuits, chicken biscuits, regular biscuits and Bread with chicken, fish, milk, and chocolate flavor are demandable for all classes’ people in the society. In this moment there are not single bakeries that are producing Jam & Jelly cake or Jam & Jelly bread for vegetarian people. On the other hand no bakeries are providing outstanding quality, service, cleanliness, and home service delivery by using internet or phone call. We hope we will make every customer in every house or area smile. The target customers of JAM & JELLY CAKE are— •
Upper class and Middle class people.
•
Vegetarians People.
•
Students.
•
Tourists who are visiting the city
4.4.1 Market Segment The maximum middle and upper classes people use bread for their breakfast. In general, people are fond of various types of bakery food with different flavor. Firstly, our target is upper and middle market in Dhaka city. JAM & JELLY CAKE think it will get approximately 100,000 customers per year. And the buying condition will be acceptable for all consumers.
4.4.2 Market Size and Growth JAM & JELLY CAKE targets just about who can eat. The primary customers are middle and high classes’ people. Market survey of JAM & JELLY CAKE conducted that it will get 20-25% customer in beginning time. And JAM & JELLY CAKE wish it will capture minimum 10% growth rate. Total sales volume can be approximately 400000 units per year. 4.5 Customer Analysis
Target Customer analysis Customer Quality
Area/Location
Demand
Upper & middle
Banani, Baridhara,
High
classes people
Gulshan, Uttara, Dhanmondi
Students
Banani, Dhanmondi,
Medium
Uttara, Gulshan Tourists Who are
Banani, Baridhara,
visiting 6he city
Gulshan, Uttara
Medium
All the products of Premier Cake House will be highly specialized and profitable, that would be capable to fulfill the demand of potential customer.
Jam & Jelly cake Students Maximum higher education institution and English medium school in Dhaka city. JAM & JELLY CAKE have choose Banani, Uttara and Dhanmondi area because of many educational institution in these places. For example there are eight private universities in Banani kamal atartuk avenue. So there are more than twenty five thousand students come in this area to study. Maximum students dislike to eat something in the hotel because of bad environment or dirty food processing system. They want solution and the survey of JAM & JELLY CAKE refers they wish to eat chicken cake, Jam & Jelly cake, Chocolate cake or bread for short time at the lunch period or evening period and breakfast time when they start their class at the morning. Tourists who are visiting the city Banani, Uttara and Dhanmondi are very important palce for private organization in business sector. There are more than twenty manpower and travel agency in Banani. On the other
hand there are many Embassies and private bank in Banani area. Many people attend banana for process their VISA and others paper. Many business person come to the bank for transaction. So every day there are many people comes to Banani in bank, offices and manpower & travel agency. Sometimes it takes huge time to process their work or many people come from different district. In the lunch time or evening time they wish to eat something. If they find fresh and quality cake, biscuits and bread they will be potential customer of JAM & JELLY CAKE. 4.6 Sales Analysis The target customer of JAM & JELLY CAKE is middle, upper classes and vegetarian people. For sales analysis JAM & JELLY CAKE analyzed the Banani residential area. A common way to estimate total market demand is as follow: Total number of buyers each year Upper, Middle and Vegetarian People
---------------------------300000 65%
---------------------------195,000
Total customer purchased by an average buyer per year 55% -----------------107,250 Thus, if there are 107,250 buyers of bakery food each year, the average buyer buys items bakery food per year. Then the total quantity purchased by an average buyer per year = 107,250*10=1,072,500 units. JAM & JELLY CAKE think, it will be able to capture 20% of total quantity. So the total quantity is 2,14,500, and the average price of JAM & JELLY CAKE’s bakery food is Tk. 28.00. Then the total market demand of JAM & JELLY CAKE is 2,14,500*28.00 = Tk.60,06,000. Revenues Units Sold Price/Unit Revenues
Year 1 2,14,500 28.00 60,06,000
Year 2 2,60,000 27.50 71,50,000
Year 3 350,000 27.00 94,50,000
Year 4 450,000 26.00 1,17,00,000
Units Sold 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0
Units Sold
Year 1
Year 2
Year 3
Year 4
Chart: Unit sold of Sales analysis Revenues 14,000,000 12,000,000 10,000,000 8,000,000
Revenues
6,000,000 4,000,000 2,000,000 0 Year 1
Year 2
Year 3
Year 4
Chart: Revenues of Sales analysis 5.0 Marketing Plan JAM & JELLY CAKE has surveyed in consumer market and gathered some important information from the market. JAM & JELLY CAKE will provide the necessary product that the consumers wish to buy. Jam & Jelly cake, bread and biscuits are not providing by any bakery house. So there is a huge demand in Jam & Jelly items bakery food. Chicken cake and bread
are not also available in the market and it has also demand in the market. JAM & JELLY CAKE has made a marketing plan before launch the product in the market. The parts of the marketing plan of JAM & JELLY CAKE are customer research, target market strategy, channel strategy, market positioning, product strategy, pricing strategy and advertising & promotion strategy. 5.1 Customer Research JAM & JELLY CAKE think about customer research sincerely and the survey is conducted properly from the customer market. The 80% of upper classes people use bread, biscuits and cake for their breakfast and middle classes people are 60%. There are more than 5% vegetarian people who are wish Jam & Jelly cake, bread and biscuits. But huge numbers of people wish different kinds of bakery food with different flavor. Only egg cake, vanilla cake, chocolate cake, regular bread and biscuits are available in the market. On the other hand many potential customers are willing to buy products by internet or phone call. And JAM & JELLY CAKE will offer these kinds of facilities. So, JAM & JELLY CAKE think people will be more interested when JAM & JELLY CAKE will start its operation. 5.2 Target Market Strategy The target market of JAM & JELLY CAKE is middle, upper classes and vegetarian people. These types of customer are very serious about their health. All the bakery products of JAM & JELLY CAKE will be free from harmful chemical. Customer will get different kinds of bakery food with different flavor easily. JAM & JELLY CAKE will open a Web Site for adverting and selling products to the customer. JAM & JELLY CAKE will also offer customer to buy products by phone call. By offering various types of product and marketing variations to segments, JAM & JELLY CAKE hope for higher sales and a stronger position within each market segment. 5.3 Market Positioning JAM & JELLY CAKE will provide different types of bakery food with different flavor. Jam & Jelly cake, Jam & Jelly bread, Jam & Jelly biscuits, chicken cake, chicken bread, fish cake are
totally new product in the market. Kings confectionary, Cooper’s, Yousuf confectionary is the main competitor in bakery food sector but they are not producing this types of bakery food. JAM & JELLY CAKE think the customers are available but products are not available in the market. JAM & JELLY CAKE will take care about the quality and variety of bakery food with different flavor. JAM & JELLY CAKE will produce various types of Birthday and Weeding cake for the potential customer. 5.4 Product Strategy JAM & JELLY CAKE will provide three promise to the customer. Hygiene, Quality and wide range of bakery food with different flavor are the promise of JAM & JELLY CAKE to the customer. JAM & JELLY CAKE will use machinery for packaging the product. The cook of the JAM & JELLY CAKE will also use mixing machine to mixing the ingredients of different type of bakery food. For cutting the products JAM & JELLY CAKE will also use cutting machine. JAM & JELLY CAKE think all the potential customer will get hygiene and quality food with reasonable price. 5.5 Channel Strategy JAM & JELLY CAKE has a plan for distribution channel. JAM & JELLY CAKE will provide products and services in two easy. Direct marketing channel (No intermediary levels) and Indirect marketing channel (Channel contains one or more intermediary channel). Direct Marketing
JAM & JELLY CAKE
Potential Customer
Indirect Marketing
JAM & JELLY CAKE
JAM & JELLY CAKE’s representatives or sales branch
Potential Customer
Fig: Channel Strategy of JAM & JELLY CAKE 5.6 Pricing Strategy In Pricing strategy, JAM & JELLY CAKE will follow “Market-penetration pricing”. Market penetration pricing represents setting a reasonable price for a new product in order to attract a large number of buyers and a large market share. JAM & JELLY CAKE think production and distribution costs must fall as sales volume increases. The pricing will be below the photocopy that is markup pricing. 5.7. Advertising and Promotion Strategy My advertisement is on “Jam & Jelly Cake s”. Jam & Jelly Cake s is a shop of various food items with special item of birthday cake. It is a new company of existing products of food industry. Gift & Greetings industry has made advertise in print media and electronic media. In print media, they mainly choose in newspapers and magazines. And in electronic media, they choose internet and some time television. As my company is a new in market so the advertising is to create customer awareness. Jam & Jelly Cake s is a domestic company and it make quality bakery food items. So, I think my advertisement will be better to publish in print media and I will also use billboard near any school, college and university to introduce my new innovation and exclusive collection to my target customer.
Communication and Sales Objectives of JAM & JELLY CAKE
Competitive parity and Task of JAM & JELLY CAKE
Message strategy of JAM & JELLY CAKE
Brochures, Bill Board, Posturing
Fig: Advertising decisions of JAM & JELLY CAKE 6.0 Operation Plan
Communication and Sales impact of JAM & JELLY CAKE
JAM & JELLY CAKE has made a plan to operate the production sector. JAM & JELLY CAKE wish it will get much benefit from the operation plan. The operation plan of JAM & JELLY CAKE is started from the purchase raw materials. The operation plan of JAM & JELLY CAKE divided in eleven stages. The stages are as follow:
Purchase Raw Materials
Transportation
Storage & Inspection
Deliver to Production Plant
Processing and Washing
Dividing the ingredients
Mixing the ingredients
Microwave Woven
Wait for Sometime and Quality Testing
Quality Control
Fig: Operation Plan of JAM & JELLY CAKE 6.1 Building Interiors
Packaging & Distribution
The office and sales centre is not harmful for the customer and employee. JAM & JELLY CAKE will organized proper lighting and sitting arrangement for the valuable customer. Factory and Sales office will be organized as totally air-conditioned. JAM & JELLY CAKE will provide Z type of comfortable chair and Sofa for the customer in sales centre. 6.2 Layout Patterns Layout patterns of JAM & JELLY CAKE will be formal, control and divides store into a series. And it will be friendly environment and acceptable for everyone. 6.3 Manufacturing Layouts In manufacturing layout JAM & JELLY CAKE will deals with product layout, process layout, fixed position layout and functional layout. In product layout sector production will perform by sequence. Process layout will perform according product process function. Layout patterns of JAM & JELLY CAKE will be open spaces in production and sells centre. 6.4 Manpower Requirements JAM & JELLY CAKE is a sole trader business. The managing director is the owner of the business. Managing director can operate in production sector. Manpower is required for Marketing, cook and sales person. So, total sales person needed five person in cook sector who will also operate packaging and leveling. In marketing area JAM & JELLY CAKE need one experienced marketing officer and two sells person need. 7.0 Management Plan 7.1 Develop an Organization Chart Managing Director: Managing Director is the owner and head of the business. The Managing Director of JAM & JELLY CAKE will also take responsibility of production management. JAM & JELLY CAKE always wish to increase sales volume by providing hygiene and quality food. The managing director will serve his qualified working experience to JAM & JELLY CAKE. For this reason Managing director should be motivated, proficient and truly concern in working area.
Sales and Marketing manager: Sales and marketing manager is important employee of JAM & JELLY CAKE. Sales and Marketing manager should be experienced in bakery food sector at least 5 years. The job responsibility of sales and marketing manager is to increase the sales volume by providing different ways. Head of the cook: Head of the cook is another employee of JAM & JELLY CAKE. The job responsibility of the head of the cook is to produce hygiene bakery food. Another responsibility will be to modify other cook to produce hygiene bakery food.
Managing Director
Production Manager
Sells and Marketing Manager Sells Person
Head of the Cook
Cake Cook
Bread Cook
Biscuits Cook
Fig: Organization Chart 7.2 Plan the Personnel Man, Machine and money are the three basic elements of business. Manpower is the heart production business for making quality food. For making quality and hygiene food JAM &
JELLY CAKE need a small number of employee. One Production Manager, one Sells and Marketing Manager with two sells person will be administration sector. JAM & JELLY CAKE will start with two skilled and three inexperienced cook. Small number but qualified people are more desirable and worthwhile for more production rather than unskilled large number of people. So, quality should be more preferable than the quantity. 7.3 Principal JAM & JELLY CAKE is a sole trader business. The owner of the business will be the director and the director is responsible for operating and production sector. The director will take the responsible of production sector to control the quality. The director is experienced person in bakery food production. The director of JAM & JELLY CAKE is also responsible to handling the marketing manager and the head of the cook. The marketing manager has five years experience in bakery food marketing sector. The cook is experienced in bakery food especially cake, bread and biscuits. Others cook are also able to handle the cake production. So, JAM & JELLY CAKE has qualified strength in management, marketing and production area.
8.0 Financial Plan 8.1 Capitalization Plan
Financial plan is very important factor in Business Plan. It is impossible for JAM & JELLY CAKE to start fruitful operation without capital. Capitalization plan is the part of financial plan which bears three functions. Capital required, Capital sources and Loans required are the main part of Capitalization plan. 8.2 Uses of fund statement The owner of the JAM & JELLY CAKE has land property around fifty lacks, Computer thirty thousand, Furniture fifty thousand and bank balance ten lacks. JAM & JELLY CAKE will organize fifteen lacks twenty two thousand and fifty thousand by bank balance and selling land property. JAM & JELLY CAKE will also use land property to take loan from the bank. JAM & JELLY CAKE has also plan to buy raw materials and inventory on account. JAM & JELLY CAKE will offer one or two person for sponsorship by offering special profit.
8.3 Pro forma statement 8.3.1 Twelve month income projection statement JAM & JELLY CAKE has made a twelve month income projection statement. The income projection statement shown below: Sales Cost of Goods Sold (35%) Contribution Margin
60,06,000 (21,02,100) 39,03,900
Fixed Factory Overhead
(18,52,500)
Selling and Administration Expenses
(7,00,000)
Other selling Factory Expenses Interest, advertising and other expenses Net income
(4,00,000) (2,00,000) 7,51,400
8.3.2 Three years income projection statement After finishing the twelve month income projection statement, JAM & JELLY CAKE also made three years income projection statement. The income projection statement shown below: Sales
1,80,18,000
Cost of Goods Sold (35%) Contribution Margin
(63,06,300) 1,17,11,700
Fixed Factory Overhead
(55,57,500)
Selling and Administration Expenses
(21,00,000)
Other selling Factory Expenses
(12,00,000)
Interest, advertising and other expenses Net income
(6,00,000) 22,54,200
8.3.3 Break even analysis Break even analysis of JAM & JELLY CAKE determines the sales needed to break even. The approach is a useful complement to sensitivity analysis, because it also sheds light on the severity of incorrect forecasts. JAM & JELLY CAKE calculate the break-even point in terms of accounting profit. JAM & JELLY CAKE will follow equation Technique to determine the Break even analysis. JAM & JELLY CAKE assume that average contribution margin will be 48 percent. Fixed costs average Tk. 25,00,000 per year. 48% of sales = 0.48, 52% Variable Cost = 0.52 and Sales = x So, the Break Even Sales = Variable Costs + Fixed Costs + Net Income Or, x
= 0.52x + 25,00000 + 0
Or, 0.48x =
25,00,000
Or, x
= 52,08,333.
CARVE wish the break even point around tk. 53,00,000 per year. It is not exact figure. It can be change. 9.0 Risk Assessment 9.1 Risk Potential Problem Risk is the part of business. JAM & JELLY CAKE think every business is risky. JAM & JELLY CAKE has a plan against risk. JAM & JELLY CAKE will save risk purpose 15% from sales revenue. JAM & JELLY CAKE think it will get much benefit from the risk fund.
9.2 Obstacles and Risks JAM & JELLY CAKE think it can face some problem. All the products of JAM & JELLY CAKE are demandable. Jam & Jelly cake, Jam & Jelly bread, Jam & Jelly biscuits, chicken cake, chicken bread, fish cake, vanilla birth day cake, Jam & Jelly Cake beach cake, Jam & Jelly Cake weeding cake will get popularity quickly to the middle, upper and vegetarian people. Bakery business is profitable business. So, there is a chance to copy the products in the market. On the other hand, every business has some risk. To start the business of JAM & JELLY CAKE, it needs huge amount of money. To collect the money and interest rate is risky for JAM & JELLY CAKE. Every business has a probability to get loss. JAM & JELLY CAKE is a sole trader business, so if any accident or any other financial problem can occurs harmful effect to JAM & JELLY CAKE.
9.3.0 Plan against the Risk and Obstacles
9.3.1 Contingency Plan JAM & JELLY CAKE will take the license from the bakery food industry. JAM & JELLY CAKE will prepare trademark and logo for its products. The entire products will be different shape from the other bakery product of the market. JAM & JELLY CAKE will take every types of authority from the relevant sector. Tax identification number and it will be organized with trade license by the power of Business sector of Dhaka City Corporation. So, JAM & JELLY CAKE will get the legal authority from the city corporation and other business area.
9.3.2 Insurance Plan JAM & JELLY CAKE will be organized by Insurance Plan to reduce the risk. JAM & JELLY CAKE will open an insurance file for Business Purpose in American Life Insurance Company (ALICO). Firstly, insurance file will be open for ten years.
10.0 Supporting Documents 10.1 Pictures
10.3 Documents for Bank account and L/C
JAM & JELLY CAKE will export machine for credit sales. So, it is necessary to open a Bank account and L/C in a Bank. For opening a L/C the bank will provide to JAM & JELLY CAKE the following documents: 1. Bank application form 2. Valid Trade License 3. Import registration Certificate. 4. Income Tax declaration or a TIN. 5. Memorandum of Association. 6. Photograph 7. Insurance Cover Note and receipt of premium payment. 8. A copy of Indent etc. For opening a L/C the bank will provide to JAM & JELLY CAKE the following documents: 1. L/C Application Form 2. L/C A Form (Letter of Credit authorization Application Form) 3. IMP Form 4. TM Form 5. Agreement Form 6. Charges Documents 7. Guarantee Form After submitted the documents JAM & JELLY CAKE will have to submit the following documents: 1. Valid Trade License 2. Income Tax declaration or a TIN. 3. Memorandum of Association. 4. Photograph 5. Insurance Cover Note and receipt of premium payment. 6. A copy of Indent etc. 10.4 Resume(s)-required
JAM & JELLY CAKE will offer proper educated and experienced person in marketing, operation & production and cook area. Marketing and sells manager will be at least five years experienced in bakery food area and cook should be seven years experienced in bakery food sector. JAM & JELLY CAKE will prefer more experienced person in bakery food area. Experienced certificate, educational certificate, Photocopy of Passport as a confirm memo of nationality are necessary to include with resume. 10.5 Work Schedule JAM & JELLY CAKE has made plan for working schedule. Every day office and showroom will be start its operation at 8.00 a.m. and finished at 10.30 p.m. The production manager does not attend all time. Before the production and to justify the quality of the product, the production manager can test the quality of the product. For Factory working schedule cook will start its operation 9.a.m. to 7.p.m. and they will get two hours break for pray and lunch. Marketing & sells manager and sales person will works as full time office employees.
11. Conclusion
Food industry is one of the important potential export industries of Bangladesh. Food industry will generate employment opportunities which in turn will create savings and investment on consequent flow of capital. Variation in productivity growth is captured by material consumption, thus obscuring the role of physical and human capital. JAM & JELLY CAKE is a bakery business and one of the bakeries of food industry. It will offer various types of hygienic and quality bakery food mainly for middle, upper classes and vegetarian people in Dhaka, Bangladesh. JAM & JELLY CAKE will focus with bakery food like cake, bread and biscuits with different flavor. Jam & Jelly cake, Jam & Jelly biscuits, Jam & Jelly bread, Chocolate cake, chicken cake, chicken bread, vanilla cake, egg cake and regular cake & biscuits will be product of JAM & JELLY CAKE. JAM & JELLY CAKE will be organized as a sole trader business. JAM & JELLY CAKE will develop to meet the growing need of the healthminded consumer who wants a great, healthy bakery food that is both delicious and fresh. Consumers are seeking healthful traditional bakery food with different new flavors. With our incredible purchasing power and the increasing need for healthy hygiene and quality bakery food, JAM & JELLY CAKE created an aggressive, but responsible. The growth plan through the area developer model to help people eat healthier, smarter and more satisfyingly in Bakery Food sector across the country.