Washington Retail Bakery’s Business Plan

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Table of Contents

Executive Summary
Company overview
Operational Plan
Start-Up Expenses
Profit and Loss Projection
Projected Balance Sheet
Breakeven Analysis
Works Cited

Executive Summary

The retail bakery will be located in southwest Washington to provide coffee and pastry products. The company aims to attract its own substantial market share despite the high competition in the target market. The company will sell quality products to its customers at competitive prices to increase the demand for the products.

Company overview

The company will provide a quality, latest, and comfortable environment for the business. The business will be family managed to reduce the costs of hiring employees. There will be a variety of bakery products to cater to the different tastes and preferences of customers. The company’s main mission is to satisfy customer needs and wants and ensure its dependability by customers. The main challenges are the high competition in the target market and the high costs of raw materials, premises, and pieces of equipment. The products are espresso and coffee. The quality will be maintained and improved throughout the business period. The coffee will be of Columbian origin. All the products sold will fresh and available (Palo Alto Software 1).

The retail business is very competitive because of the high consumption of coffee. People in the area take coffee frequently due to the cold weather. The company will also offer all the products in the competitor business to avoid losing customers to competitors and be able to maintain and attract their own customers. The business will target the rich and the middle class because they have a high purchasing power. Licenses will be required for the business to operate legally (Palo Alto Software 1).

Operational Plan

Select location.
Develop the store.
Start selling the basic kids wears.
Establish online selling.
Start full-service selling.
Plan for new stores (Business Plan Corner 1).

Start-Up Expenses

The business startup capital will be 1million dollars. The company will raise its capital through a loan from the bank. The expenses will be as follows:

Promotion	$5000
Consulting services	$90000
Retail store development	$350000
Capital expenditure on rent and other related expenses	$255000
In-store staff	$300000
Total amount	$

Start-Up Expenses (Source: Business Plan Corner 1).

The forecasts will be done for the following 3 years.


	Year 1	Year2	Year3

Donuts	$360000	$1500000	$4400000
Batters, Coaters And Breading, Croissants and Bread	$420000	$1700000	$5200000
Scone, coffee and Biscuits mixes	$250000	$1000000	$2900000
Cakes, Crème And Pound Cake	$120000	$500000	$1500000
Danish and Sweet Dough	$60000	$250000	$2000000
Total revenue	$1210000	$4900000	$16000000

The business focuses for 3 years (Source: Business Plan Corner 1).

Profit and Loss Projection

	Year 1	Year 2	Year3
Sales
Total revenue	$1210000	$4900000	$16000000
Operating expenses
Retail store development	$350000	–	–
promotion	$5000	$6000	$6000
Capital expenditures	$255000	$200000	$250000
Consulting services	$90000	$450000	$450000
In store staff	$300000	$800000	$950000
Total operating expenses	$1000000	$1510000	$1710000
Profit before taxes	$210000	$339000	$14290000
Taxes (10%)	$21000	$33900	$1429000
Net profit	$189000	$305100	$12861000

The projection shows increasing total operating expenses and net profit in the years.

Profit and loss projections (Source: Business Plan Corner 1).

Projected Balance Sheet

Balance sheet
	Beginning	Projected year1
Assets
Current assets
Cash in bank	$10000	$1189000
Account receivables	–	$14000
Prepaid expenses	$1500	$1500
Total current assets	$11500	$1204500
Fixed assets
Capital expenditures	$350000	$650000
Store furniture	$150000	$150000
Total fixed assets	$500000	$800000
Total assets	$511500	2004500
Liabilities and equity
Current liabilities
Accounts payable	$0	$40000
Long term debt
Bank loans payable	$0	$1000000
Total liabilities	$0	$1040000
Owners Equity
Retained earnings-beginning	$500000	$500000
Retained earnings-current	–	$290000
Total owners equity		$790000
Total liabilities and equity	$500000	$1830000

Projected Balance Sheet (Source: Business Plan Corner 1).

Breakeven Analysis

Breakeven analysis
Cost description	Fixed costs ($)	Variable costs($)
Variable costs
personnel		10%
Consulting services		3%
Fixed costs
Retail store development	350000
In-store staff	300000
Capital expenditures	255000
Consulting services	90000
promotion	90000
Taxes	21000
Total fixed costs	1021000
Total variable costs		13%
Breakeven level= $1153730

Break-Even Analysis (Source: Business Plan Corner 1).

Works Cited

Palo Alto Software. Bakery Business Plan. Palo Alto Software. 2011. Web.

Business Plan Corner. Sample Business Plan. Business plan corner.com. 2011. Web.

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