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Business Plan Homey Bakery

By:   •  October 29, 2014  •  Essay  •  2,339 Words (10 Pages)  •  1,497 Views

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HOMEY BREAD BAKERY

TABLE OF CONTENT

1. Title Page...................................................................1

2. Literature Review...........................................................3-4

3. Executive Summary.........................................................5

4. Company Background.......................................................6-7

5. Market Analysis.............................................................8

a) Market Research.....................................................8

b) SWOT Analysis.......................................................9

c) Market Segmentation................................................10

d) Market Mix...........................................................10

e) Competitive Advantage...............................................10

f) Physical Evidence.....................................................12

6. Operations and Production.....................................................13

a) Start Up Costs...........................................................14,15

b) Revenue/Expenditure Analysis..............................................16

c) Break even Analysis........................................................17

8. Bibliography......................................................................18

LITERATURE REVIEW

Entrepreneurship

According to Schaper, Volery, Weber and Lewis entrepreneurship stems from the French word entreprendre, meaning "to undertake" or to take in one's own hands. They also mentioned that during the industrial revolution the term entrepreneur was used to describe the new phenomenon of the individual who had formulated a venture idea, developed it, assemble resources and created a business venture (2011).

Furthermore, Schaper et al, define entrepreneurship as the process, brought about by individuals, of identifying new entrepreneurial opportunities and converting them into marketable products or services. Therefore Shane and Vankataraman suggested that the field of entrepreneurship involves the study of sources of opportunities; the processes of discovery, evaluation and exploitation of opportunities, and the set of individuals who discover, evaluate, and exploit those opportunities (cited in Schaper et al).

Schaper et al believes that entrepreneurs are different from non entrepreneurs and managers because they are perceived to be a hard headed risk bearer or a visionary. Schaper et al, goes on to say that entrepreneurs acquire various psychological traits which include, the need for achievement, the level of confidence and a risk taking propensity. Consequently, entrepreneurs do not operate in a vacuum, however they respond to their environments. The first stage in the creation of a new venture is recognition of opportunities. In this stage the entrepreneur studies the market needs and the specified resources. Schaper et al also mentioned that people may have the propensity to create and develop a business in an environment conducive to entrepreneurship. They may even have identified a promising opportunity but the actual decision to launch the venture arises from a clear intention, and this implies action (2011).

The new venture stage, intention is a conscious mind that motivates attention toward the goal of establishing the new business. With recognition of intent, the entrepreneur takes further steps toward the evaluation of business opportunity and gathering resources for launching the venture. The second process of new venture creation include formulation of strategy, the development of a prototype, market research, the identification of potential partners, and the drafting of a business plan.

Subsequently, Schaper et al, mentions that just as the would-be entrepreneur must decide to attempt to establish a business, he or she must also decide whether to proceed with or abandon the attempt the decision may be triggered by specific events such as dismissal, job frustration, graduation or inheritance, all these may trigger the launch of the new venture, however it is mainly the passion of the individual, motivation that pushes the person to take the plunge. Launching the venture shows that triggers have prevailed over the perceived barriers to start up. On the other hand, if the person decides to abandon the attempt, then the advantages are known to be greater than the advantages (2011).

EXECUTIVE SUMMARY

HOMEY BREAD BAKERY makes homemade bread, which is baked in an earth oven (lovo), we do not use any machines, and everything is made traditionally. This brings out the uniqueness of the taste and the business itself, because we use all primary avenues in production. We target everyone that loves a nice tasty piece of bread to start the morning or end the day. We believe that if we target only a group of the market we will be actually obstructing other people's chances of trying something new and different. That is basically the reason why we are aiming to target everyone in the market.

Since our business is new we plan to base our production and distribution from Home, this will enable us to accelerate slowly, keep the profit and focus on the production of a good piece bread without worrying about the rent, electricity, delivery and so forth. Marketing of our product will not need much emphasis as it will be promoted and be known through word of mouth. As we provide a good and reliable service, people will eventually spread the word, and the reputation of our business will paint itself from there.

Our business has more experienced and well known competition, this are Hot Bread, Small bread shops that are owned by Chinese counterparts, LEES etc. However their presence in the market will not intimidate us as our product is unique, because the taste is different since we do not use machines for mixing and electric ovens. We produce a tastier and cheaper bread, as our costs of production is not costly, that is why we are charging a piece of bread at $1.

BACKGROUND

This idea was primarily created from the need to keep the business costs low and affordable, we tried to come up with a business that did not use up most of our time and energy, we wanted to do something that people can relate to, something unique and special as opposed to the rest of our competitors. We wanted to use as less cost as possible, and with the help of natural resources to make as much profit as we can.

Every day people wake up to the sight of bread from Chinese shops and so forth, and these are differentiated as it comes in the form slices, buns, sausage buns etc. And when the electricity is out families are affected as bakeries cannot operate because their production are machines oriented.

This is where we come in, this is our competitive advantage, because we do not require machines to mix and bake our bread, everything is done with a good heart, an optimistic outlook (aim) that will enable us to provide for our customers. We see our customers as our children, we will look to provide always the best for them, we will be there providing our services when other bakeries still have shut their doors shut.

Our customers will prefer our services from the bigger businesses because we will provide more energetic, happier services, and also because we already know our customers, so it will be easier to obtain and attain the relationship with our customers. Evidently, as you buy bread from Chinese bakeries, they either do not know what you are asking to buy (language barrier) or too tired or too lazy to serve the customers. From experience the Chinese bakery in our area has broken every law in the health books. Bread will be covered with raging flies that are large enough to attack a grown man, so to speak. Service with a smile is long way of their service delivery, endless calls on the front counter will be dismissed with the normal "finish".

Yes, so this is main reason why we planned to start this business, so we not only aim to provide better services for the community but we also wish to provide for our needs and the needs of families as a whole. We also aim to prove the old paradigm WRONG, the type of thinking that we Fijians are not independent but dependent on foreigners who enter our country to start businesses. We want to stand on our own two feet, we also want to provide inspiration for other young people.

Business History

Being unemployed and studying is not easy so we knew it was time to be self sufficient. This home based business will provide a modest income for us, we bake for our friends, family, and our community market. With our reduced expenses our business provides a good amount of income we need.

The most sustainable and self reliant way to bake is the

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