ppt fon bakery idea

8/12/2019 Ppt fon Bakery Idea

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BUSINESS ENTREPRENEURSHIP

SUNSHINE

BAKERY

ANKITA TALREJASEC B


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BRIEF DESCRIPTION OF PROJECT & PRODUCT

The proposed Bakery & Confectionery shop is a small scale project with

a production area and sales out-let. It will be equipped with basicmachinery and fixtures. The production area will require covered area

of 2,700 sqft and the outlet will be established on 900 sqft. The sales

outlet will remain open for business for 16 hours per day around the

year.

Product mix will include cakes, snacks, sweets, biscuits, bread and

general confectionery items. This merchandise will be prepared and

acquired according to the demand of local customers and in quantities

directly proportional to expected sales.

Out of total sales revenue 70% will come from bakery items and balance

30% from general confectionery items. Maximum sales are expected during

Eid seasons and in winters. First year revenues of the project are

estimated to be Rs

11.24 million. It is expected that production growth rate will be 5%

per annum along with 10% per annum increase in sales price.


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CRITICAL FACTORS

Background knowledge and experience of the entrepreneurin the bakery business.

Induction of trained human resource for production ofrequisite items.

Maintenance of quality and hygiene standards.

Pricing strategy & understanding requirements of the targetcustomers.

Decor presentation and layout of the shop and products.

Location considerations for easy access of the customers.


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INSTALLED & OPERATIONAL

CAPACITIES

The sales of bakery items is 70 % of total salesrevenue. The installed capacity of bakerydepends on the variety of the products being

produced. Installed capacity of majorproduction items is cakes 23,758 pounds,40,470 pieces of snacks, 11,812 pounds ofsweets and 11,800 pounds of mixed biscuits .

Starting capacity utilization is 70% of theinstalled capacity growing at the rate of

5% per annum.


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POTENTIAL TARGET MARKET

Areas having presence of middle income groups in thesmaller cities will be an ideal location for opening sales outletof the business. Ideally, production facility of the workshopshould be located alongside the sales outlet; however, if the

rental costs are a constraint, production facility can beestablished at a distant economical location. In such a case,higher transportation costs may need to be factored in.Smaller cities with growing middle income group such asSargodha, shekhupura, Gujrat, Sukkur, Hyderabad,Nowshehra, Charsadda, Khuzdar and Gilgit are some of theprospective cities for setting up this business.


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Space Requirement

The space requirement for the proposed bakery and confectionary unitmainly includes the production hall, store room and a retail outlet. Forthis purpose it is recommended that a rented place of maximum 3,600sqft (i.e. 2,700 sqft for production space and 900 sqft for outlet) would be

acquired on rent basis in the vicinity of newly developing housingsocieties in the major cities. The production space and bakery outletcould be acquired at separate places. However, it should be ensured thatboth the facilities are located closely for easy supply of produced goodsto the outlet.


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Useful Project Management Tips

Technology

Required spare parts & consumables:Suppliers credit agreements andavailability as per schedule of maintenance be ensured before start ofoperations.

Energy Requirement: Should not be overlooked and alternate source ofenergy for critical operations be arranged in advance.

Machinery Suppliers: Should be asked for training and after salesservices under the contract with the machinery suppliers.

Quality Assurance Equipment & Standards:Required products quality

standards need to be defined on the packaging and a system to checkthem instituted, this improves credibility.


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Marketing

Product Development & Packaging : Expert's help may be engaged forproduct/service and packaging design & development.

Ads & Point of Sales Promotion: Business promotion and disseminationthrough banners and launch events is highly recommended. Productbrochures should be acquired from good quality service providers.

Price - Bulk Discounts, Cost plus Introductory Discounts : Price should notbe allowed to compromise on quality. Price during introductory phase maybe lower and used as promotional tool. Product cost estimates should becarefully documented before price setting. Government controlled pricesshall be displayed.


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Human Resources

Adequacy & Competencies: Skilled and experienced

master chef should be considered an investment and

be retained on better terms, if necessary


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Exit Strategies

A sale is always an option: the question is how much can you get for yourcompany? The key is to find suitable buyers who assign a high value to yourcompany. Generally, the more potential buyers, the better, since then you canestablish a market price.

Most business brokers recommend you start planning for a sale at least 3-5 yearsin advance. This may sound overly cautious, but in many cases even 5 years is notlong enough. As a business owner it is very easy to become overly attached toyour business and lose sight of what the business really looks like to an outsider.What makes your company valuable to you may not have any impact on apotential buyer.

The payment of the employees can be made from the cash which is earned aftersale of the company.


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FINANCE

Description Amount Rs.Capital Cost

Plant and Machinery 11,24,750

Furniture, Fixture and Office Equipment 2,70,000

Motor Vehicles 45,000

Pre-operating Cost 1,20,000

Total Capital Cost 15,59,750

Working Capital

Raw Material Inventory 1,06,692

Up-front Building Rent 2,25,000

Cash 1,50,000

Total Working Capital 4,81,692

Total Project Cost 20,41,442


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THANK YOU

ppt fon bakery idea

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