Given business plan was developed and successfully implemented for the organization of confectionery production in the city of Alekseevka, Belgorod region*.
Business plan for organizing the production of confectionery products
1. Review
1.1. Project goal
The duration of the project is 1 year, the project provides for the provision of a bank loan, the lending rate is 20%.
Monthly repayment of interest on the loan, starting from 1 month of the project for 12 months.
Monthly repayment of loan debt starting from the 10th month of the project, within 2 months.
The capital requirement for the implementation of the program for organizing industrial production of cookies is: $80,000 or 2,560,000 rubles.
The main source of repayment of principal and interest payments is revenue from sales of products.
Every month it is planned to contribute additional funds in the amount of $1,200 in the form of a contribution from the founders for the development of production.
1.2. Paths to success
One of the most promising markets in the food industry currently remains the biscuit market.
In the last three years there has been a noticeable increase in biscuit consumption, and in 2001 the biscuit market capacity increased to almost 400 thousand tons. According to calculations, the normal market capacity is 600 thousand tons, so it is realistic to expect 40% market growth in the next three years.
The success of the project is also the reduction in costs for raw materials and supplies through the purchase of equipment presented in the project. When planning the purchase of equipment for the production of cookies, the company paid special attention technological quality of equipment and the possibility of technological support of the supplier company. In addition to direct prices for raw materials, this equipment allows you to optimize the cookie recipe while reducing costs and maintaining quality.
The project is managed by a company that has been successfully operating since 1996 Russian market. Lack of competition in the area where production is planned. The project identifies risks and includes an annual inflation rate of 15% in financial calculations. Integrated project indicators indicate the effectiveness of investments.
2. Market analysis
Currently, the gap in the ratio of the shares of consumption of imported and domestic cookies is very large: 7% eat only imported cookies, 73% - only domestic, 20% - both. A similar process can occur due to the emergence of new inexpensive imported brands, although in general packaged cookies have recently been losing their position in the market.
The situation with loose cookies is completely different: the share of consumers is growing rapidly - in Russia as a whole, since the end of 1998, it has increased by 10%, in each region there is a steady upward trend in the consumption of loose cookies.
Market analysis in Russian regions shows that in the coming years it will be more profitable to produce loose cookies.
This company plans to start working in one of the promising markets for loose cookies: granulated sugar.
Packaged cookies are in greatest demand in Moscow and St. Petersburg, while loose cookies are in greatest demand in the Moscow region, Northern, Northwestern and Volga-Vyatka regions.
3. Analysis of the project market strategy
3.1. Competitors
There is no competition for the presented production in this area (Alekseevka, Belgorod region).
4. Financial analysis
The company's sales receipts from August 2002 (the start of the project), December 2002, February 2003 and May 2003 are as follows:
The total fixed costs of the company are presented below:
5. Risks
The reliability of investments in the project is ensured by the absence of competition, stable growing demand, low cost, and skillful management policies.
The risk associated with the occurrence of force majeure circumstances is reduced by taking into account the 15% annual inflation rate in the financial plan.
*Please note:
The figures given are valid at the time of drawing up the business plan and for a specific region!
Here we will look at an article about how to open a confectionery shop, what is needed for this, and consider a business plan for opening it.
Entrepreneurship in the production and sale of confectionery products is considered an attractive investment for any investor. With relatively low costs, about 400 thousand dollars, to create production from scratch, the profitability of the business can reach up to 30%.
Let us immediately note that your hottest sales days will be pre-holiday and holidays... which, in fact, is not surprising.
We have prepared detailed information for you ready-made example cafe-patisserie business plan, which you can download. The file contains all the approximate figures and calculations that will be necessary for your business. If you want to open without a cafe, then simply remove the costs and income associated with it.
Thanks to this example, you can evaluate your capabilities.
How to open
So, let's look at the information on how to open a confectionery shop and what you need to open it point by point.
Market selection
Well-established regional manufacturers that are developing the center have a greater chance of success, although newcomers also have prospects. A positive example is the experience of the Fili-Baker confectionery. They have been on the market for four years. Initially, their segment was focused on the production of bread and bakery products. Having entered the market with the production of cakes, they faced stiff competition. They had to prove the consistency of their products for this confectionery for a whole year, sometimes even buying them in stores themselves. The result was that the Pancho cake became the best-selling cake in the capital in four years.
Necessary investments
The technologically complex production of confectionery products requires high-quality equipment. Domestic equipment for an enterprise with one furnace will cost approximately 100 thousand dollars. At the same time, the oven itself will cost about 20 thousand dollars, and everything else will be needed to purchase mixers, a filling and packaging line for the confectionery. It makes sense to choose between domestic and foreign equipment, since the cost of the latter is almost twice as expensive.
The next significant expense is the rental of premises. Moscow 200 sq. m will cost from 180 to 200 thousand dollars per year. You also need at least five cars for the pastry shop. This will still cost 70 thousand. The main component of success is the development of your own logistics service. A perishable product must be sold as soon as possible.
You also need to consider the costs required for marketing research and promotions. You will have to fork out for everything, from shelf space to a new position in the assortment.
Creating a team of like-minded people, when selecting personnel for a confectionery, first of all, it is necessary to take into account the desire and interest of employees in production quality product. You also need to take into account the range of partners with whom cooperation is planned and the range and volume of products. For ten retail stores, 10-15 staff will be enough in the person of a baker and an assistant, a team of confectioners of 5-6 people, one of whom should be a technologist. The rest of the confectionery staff will be distributed between logistics and order reception services and administrative positions.
If you plan to produce cakes, then another team of confectioners is needed for this, due to the fact that the cooking technologies have significant differences.
Product range
It is necessary to start with widely known and technologically simple recipes for pastry shops. Having proven yourself well in this segment, you can start producing premium cakes. In terms of volume in the Moscow market, they occupy about 10% and starting production for an inexperienced enterprise is risky and unprofitable.
Sale
Implementation finished products It is better for a confectionery to start with small stores. Only after successful implementation over a certain period can you offer your products to small chains. In the future, with the gaining of authority and a positive reputation, large stores and retail chains will be interested in your product.
Finally, a video on this topic:
We hope that this article about how to open a confectionery shop and its business plan will help you start your own business.
- Which taxation system choose for the store. OKVED code
- candy store
- Description of products and services
- Marketing plan
- Production plan
- Recruitment
- Financial plan
- Monthly fixed expenses
- Revenue forecast
We suggest studying a typical business plan for opening a counter-type confectionery store in a small town.
Step-by-step plan for opening a candy store
General information:
- City population: 150 thousand people;
- Trade format: counter-type store;
- Store location: office center;
- Type of property: rent of premises with an area of 50 m2;
- Opening hours: 09:00 - 19:00;
- Number of jobs: 4 people;
- Sources of financing: own funds - 570 thousand rubles.
Key performance indicators for a candy store:
- Monthly profit = 61,699 rubles;
- Profitability = 11.7%;
- Payback = 9 months.
How much money do you need to open a candy store?
List of starting costs:
To open a retail outlet, an investment of 570 thousand rubles will be required.
Which taxation system should you choose for your store? OKVED code
The organizational and legal form of the organization will be individual entrepreneurship. When registering the activity, the OKVED code 52.24 was indicated - “Retail trade in bread, bakery and confectionery products.”
The taxation system will be a single tax on imputed income (UTII). The tax amount is calculated using the formula: 15% * (1800 (basic yield) * sq.m)*k1*k2. The k2 coefficient for retail trade in confectionery products in the Ulyanovsk region is 0.6; k1 - deflator coefficient in 2014 is 1.672. The planned sales area of the confectionery store is 40 m2. As a result of the calculations made, the tax amount will be 10,834.56 rubles per month.
Location of the retail outlet: office center of the city, in the immediate vicinity there is a large shopping center.
What documents are needed to open candy store
Currently, practical activities have begun to implement the project:
- Registration of individual entrepreneurship with the local tax service has been completed;
- A preliminary lease agreement has been concluded for a retail space of 40 m2 (plus a warehouse of 10 m2) on the ground floor of a two-story building. The rent is 40 thousand rubles per month.
- A search was carried out for companies and local manufacturers of confectionery products. Agreements have already been concluded with 11 companies.
The operating hours are expected to be set from 09:00 to 19:00 without breaks and days off.
Description of products and services
The average markup on goods, according to the business plan, will be 40%. Which corresponds to the average markup for stores of this type.
The approximate assortment of a retail outlet will look like this:
- Bread (about 30 varieties);
- Pastries (about 20 types);
- Cookies and sweets (more than 80 types);
- Gingerbread, marshmallows;
- Cakes;
- Breakfast cereals;
- Pasta and cocoa;
- Tea and other products.
We believe that the average check will be 200 rubles. The price level in the store will be at the level of the market average.
Since most of the products of the confectionery store are perishable, priority will be given to the goods being supplied from local producers. This is especially true for goods such as bread, pastries (pies, buns), and cakes. Some of the goods are planned to be taken on a deferred payment basis (for sale).
Download business plan for a candy store
Marketing plan
The main clients of the outlet will be office workers, visitors to shopping centers and boutiques. The store is located in a high traffic area. On average, up to 12 thousand people a day pass by the building in which the store will be located.
It is expected that up to 100 people will visit us daily. That is, 1% of the total traffic. Peak attendance: from 11:00 to 15:00, when the main revenue will be generated.
How much can you earn from candy store products?
Based on the total attendance and average check, you can determine the potential revenue: 120 people. * 200 rub. = 24,000 rubles. However, such income indicators will not be achieved immediately, since the store still needs to “promote” and gain regular customers. You can reach your revenue targets only after 6 months of work:
In total, the planned annual revenue will be 7.2 million rubles.
Revenue targets will be achieved through:
- Trade exclusively in fresh produce. This will be strictly monitored by sellers;
- A wide range of confectionery products, incomparable to any competitor within a 500m radius;
- Polite attitude towards customers from the staff.
Production plan
The premises in which the store will be located are in excellent condition. There are no plans for renovations to the premises. To start trading, all you need to do is install the trading equipment and stock the goods.
The total area of the premises is 50 m2, including a retail area of 40 m2 and a warehouse of 10 m2. The premises comply with all SES and fire safety standards.
To create a commodity stock (confectionery products), it is initially planned to allocate 200 thousand rubles. The store will operate in a counter trade format.
Recruitment
The planned staffing includes:
Sellers will work on a 2-by-2 schedule. Monthly bonuses are possible for good sales performance.
In addition to sellers, you will need to hire an accountant and a cleaner. It makes no sense to employ these workers full-time, so an agreement for paid services (outsourcing) will be concluded with them. Monthly costs under these agreements will amount to 10 thousand rubles.
Financial plan
Monthly fixed expenses
Total monthly expenses will be 150,800 rubles, per year - 1.8 million rubles. Structure annual costs candy store is presented in the form of a diagram:
The main expenses in general structure annual costs will be the cost of paying wages to store sellers - 37%. In second place are the costs of rental payments - 26% of total costs. And finally, in third place are the costs associated with the payment of insurance payments for employees to extra-budgetary funds of the Russian Federation - 11% of the total annual costs.
The sales break-even point with an average trade margin of 40% will be 527.8 thousand rubles per month:
Revenue forecast
The calculation of the economic indicators of the work of a candy store, according to the business plan, is presented in the table - forecast of income and expenses:
The net profit of the confectionery store at the end of the year will be 740,392 rubles.
You can’t expect high income in the first year of operation, since the store is still gaining popularity. Hence the low profitability of the confectionery store - only 11.7% (in fact, this is comparable to the income from a bank deposit). However, the project pays off within 10 months of operation. In the second year of operation, the expected monthly profit will be at least 150 thousand rubles with a store sales profitability of 30%.
We recommend download business plan for a candy store, from our partners, with a quality guarantee.
This is a full-fledged finished project, which you will not find in the public domain.
Contents of the business plan:
1. Privacy
2. Summary
3. Project implementation stages
4. Characteristics of the object
5. Marketing plan
6. Technical and economic data of equipment
7. Financial plan
8. Risk assessment
9. Financial and economic justification for investments
10. Conclusions
Business plan
Reviews (8)
Guarantees
We present to you a business plan for a confectionery shop, an establishment that can not only produce cakes, donuts, sweets, chocolate, but also sell them directly on site. In addition, a good confectionery can produce an assortment of cookies and offer them for sale to city shops and cafes. Thus, such a small confectionery factory will operate with a constant income.
Use a business plan to organize a candy store and immediately begin to think through the range of products. It is this that is the basis for the large profits of any confectionery store, as well as the quality and freshness of the goods offered. A lot will depend on what kind of specialists will work in such a confectionery or store. This is exactly what you should think about right away, even at the planning stage.
We suggest using a business plan to create a confectionery shop, which can be formed within any restaurant or supermarket. Here you can set up the production of cakes, pastries, and rolls. With high quality products, any production of confectionery products will be profitable, since the demand for this product is constantly growing, and will continue to do so.
Study the presented business plan and also open a bakery cafe - for children and adults, where it will be so pleasant to spend weekends and holidays. In addition to an assortment of baked goods, a mini pastry shop can also offer ice cream, juices, and delicious desserts. Here you can sell confectionery products simply “to take away”. All this will work for profit and meeting the needs of the population.
Fast food has firmly entered our lives, despite all the hype surrounding the discussion of how harmful the abuse of such food can be. But against the background of hamburgers, shawarma and hot dogs, one product stands out favorably, loved by both adults and children - delicious and satisfying donuts. Opening a donut shop is a great chance to start at low cost, recouping your investment in the shortest possible time.
According to experts, the donut baking business is characterized by high profitability, which in some cases reaches 100%! Such profitability and relevance of this turnkey business is due to the fact that the fast food market is not yet saturated with donuts. This means that budding entrepreneurs have every chance to conquer this territory. In order to open a donut bakery, a businessman only needs to invest 10-15 thousand dollars.
The main charm of a donut is its freshness, so for maximum success it is recommended to open a mini-production and a donut shop at the same time, because the aroma of baked goods has an attractive force that is almost impossible to resist. Having decided to open a coffee shop and pastry shop at the store, you will not know the end of customers, of course, if your products can satisfy the most demanding taste.
How to start a business producing and selling donuts? From determining the volume of initial investment. If you only produce donuts, selling them to nearby stores, the costs will be small. The main expense item is the purchase of a machine for producing donuts, the price of which averages 30-40 thousand rubles. The productivity of the donut baking machine is 300-400 donuts per hour. The payback period for donut production equipment, depending on the price, usually does not exceed 2-3 months.
If you are planning to sell donuts, you can purchase a mobile stand and install a donut making machine in it. By choosing a busy place to sell, you can be sure that your products will be a success. Donuts can have a variety of fillings - chocolate, fruit, caramel. Provide your clients with a wide range of products, and they will thank you with their attention.
With the development of the donut business, it makes sense to think about opening a small confectionery department, which, in addition to donuts, will sell other products - cakes, muffins, buns. In order to open a full-fledged confectionery store, you will need additional financial investments. But this step will allow you to attract new customers, which is important in an increasingly competitive environment. Over time, you can open a whole network of confectionery departments, the main products of which, of course, will be fluffy and aromatic donuts. A competent example of a business plan for opening a confectionery shop from scratch with ready-made calculations will help you speed up this process and avoid annoying mistakes. Based on it, it will not be difficult for you to comprehend all the basics of this type of business.
When planning to open a business such as selling confectionery products, you should be prepared for some specific problems to arise. The first and most serious difficulty is associated with finding a suitable premises that must comply with all the standards and requirements of Rospotrebnadzor. Finding this is not easy, since some of the requirements are, to put it mildly, difficult to meet. The package of documents required to open a confectionery shop will be quite impressive, and difficulties may also arise at this stage.
The organization of confectionery production as a business begins with the selection of qualified specialists. And here we should take into account such a factor as constant staff turnover, as the main players in this market segment confidently say. Judging by the reviews, people who do not have sufficient experience often go into the confectionery production business. And the businessman is forced to spend money on their training. At the same time, there is no guarantee that, once trained, a specialist will stay in this company for a long time.
When planning the opening of a new mini-confectionery workshop and store, pay attention to such a component of work organization as the timely receipt of raw materials, which requires an agreement with reliable suppliers. If you do not want to lose some customers, never allow interruptions in the supply of flour, margarine and other ingredients necessary for the production of quality confectionery products.
In a business like a confectionery, much depends on the quality of raw materials. And, as practice shows, it is often uneven. As a result, entrepreneurs are forced to adapt to these fluctuations, constantly adjusting product formulations in order to prevent deterioration in quality finished product. When planning to open your own business - a confectionery shop - be prepared for the fact that prices for raw materials will constantly rise. As a rule, when opening a confectionery store, a businessman focuses on a certain category of customers. In the face of rising prices for raw materials, he has to make a difficult choice: either increase the cost of finished products, knowing that some customers will be lost, or switch to less expensive products in order to retain his client.
As experience shows, the second option often also causes a drop in consumer demand, and at the same time leads to the loss of the company’s reputation. This factor must be taken into account when opening a candy store; the business will require constant investments and only competent calculation will not allow you to fall out of the loop. Most of the costs will go towards purchasing equipment. The final figures depend on the scale of production, as well as the specialization of the workshop. If you plan to focus on French bakeries and confectioneries when creating a business, then you should give preference to fully automated equipment, which, by the way, makes it easier to control the execution of work.
Opening a cafe-confectionery will not cause you serious difficulties if, in the process of creating your business, you follow the advice of professionals, which are given in a competent sample business plan for a mini-confectionery with a store and production with ready-made calculations. It also contains detailed description confectionery business, with special emphasis placed on its features. By neglecting your confectionery business project, you are putting your business in serious danger, putting quite a lot of financial resources at stake.
What's a celebration without cake? And if this is an exclusive confectionery product made to order, the delight of the guests will know no bounds. A business such as baking cakes to order will invariably be in demand, since in modern life we always want a little holiday. Opening your own business - a confectionery business - presents you with many difficulties, but they will all pay off, especially if you do what you love.
There are two options for entering the cake baking and making business: you can start working alone, taking orders for making cakes at home, or you can immediately open your own small pastry shop, the costs of which will certainly be higher. But a corresponding return is expected, since you cannot cope with a large influx of orders alone, and unnecessary problems with sanitary inspection may arise. Opening an individual entrepreneur to produce cakes at home will simplify the situation, but will not increase the amount of income.
In order to open your own business - a confectionery shop, and make custom-made cakes on a larger scale, you will need at least 200 thousand rubles at a time. Subsequently, if the business actively develops, the business can be expanded by opening a full-fledged confectionery factory or a large cake production workshop.
Organizing a small business producing cakes and pastries begins with finding ways to sell sweet products. Making cakes to order can be one of the areas of business, but not the only one, since this will greatly limit the scope, reducing the likely profit. At first, you can negotiate with large supermarkets, which are usually willing to sell high-quality baked goods. But it is necessary to take into account that the lead time for selling cakes is very short, and clearly calculate the volume of products produced.
Subsequently, it would be advisable to open your own confectionery shop, which will allow you to sell your own products without any problems. The cake sales business is highly profitable, which also attracts novice entrepreneurs. The main thing is to attract clients, which requires competent advertising of your services. Be sure to make a colorful catalog with samples of cakes that you can make to order, indicating the cost.
Even if you are an experienced pastry chef, opening your own cake production shop is not so easy. And for a beginner, facing the realities of this business for the first time, it is incredibly difficult to overcome existing problems. How to open a small mini-confectionery shop, where to start, how to calculate the cost necessary equipment for the production of cakes, and will the business be successful? If you have such questions, this indicates a lack of sufficient experience in this type of business. In this case, the most reliable assistant for you will be a professional example of a business plan for a confectionery shop for the production of cakes with ready-made calculations. Using it, you will be able to competently open your own cake baking business without risking your financial resources.
(OKVED 2) 47.24 Retail trade of bread and bakery products and confectionery products in specialized stores
Investments from RUB 1,903,000.
All materials by tag: confectionery, cafe
1. PROJECT SUMMARY
The essence of the project is to open your own confectionery shop in a city with a population of more than 500 thousand people. The purpose of this business plan is to justify the effectiveness and profitability of the project for investment. The confectionery will be located in a rented premises of 100 sq. m. meters, where there will be a confectionery shop and a hall to accommodate 20 visitors. The integral indicators of the project are given in Table. 1.
Key project data:
Starting capital: RUB 1,903,000.
Source cash: own savings
Estimated project duration: 3 years
Expected turnover: 800 thousand rubles.
Net profit: 175 thousand rubles.
Return on sales: 21%.
Payback period: 12 months.
Table 1. Integral performance indicators
2. DESCRIPTION OF THE INDUSTRY AND COMPANY
Confectionery is a rather broad and multi-component concept. According to Russian GOST, confectionery products are divided into the following groups: chocolate, cocoa, flour confectionery and sugar confectionery. Main feature modern market confectionery products can be called a transition from the “privilege” of confectionery products to their mass consumption. Increasingly, confectionery products are becoming fast food rather than a rare, expensive pleasure or gift. Due to this factor and the fact that confectionery products have a short shelf life and are highly dependent on freshness, the confectionery business has been and remains promising for small businesses.
Until recently, the confectionery market experienced steady growth. According to Alto-Group, production volumes have increased in all major segments since 2011 (see Figure 1).
Figure 1. Production volumes of confectionery products in Russia 2011-2014. (tons)
Source: alto-group.ru
At the end of 2015, experts noted a decrease in production volumes. In the market as a whole, the decline, according to the Confectionery Market Center, was about 1%. In particular, according to calculations by INFOLine specialists based on Rosstat data, the production of the largest group in the structure of confectionery production - chocolate, cocoa and sugar confectionery - showed a decline of 2.5% compared to last year. The reasons for this situation were the weakening of the national currency, a decrease in the population's income and a decrease in its purchasing power, and as a consequence - a decrease in the consumption of sweets. At the same time, over the year, imports of all confectionery products into the country have halved, and consumer prices have increased by an average of 24% (data from the Center for Central Asia). Chocolate (38%) and caramel (33-35%) have risen in price especially strongly. Due to rising prices for cocoa raw materials, manufacturers began to give preference to cheaper recipes, increasing the production of products with fillings and chocolate icing, refusing directly from the chocolate itself. Compared to chocolate, cheaper flour confectionery products turned out to be a crisis-resistant product.
The goal of this project is to organize our own production and sale of confectionery products in a city with a population of more than 500 thousand people and make a profit. A confectionery shop with a cafe-shop for 20 visitors will be located in a room with a total area of 100 square meters.
The project concept will include the production of confectionery products according to own recipes and selling them to consumers in finished form and to order. Since the cafe-shop will be located directly at the production site, the consumer will always have the right to count on purchasing fresh products. The assortment of the confectionery will consist of flour cakes and pastries with a total assortment of more than 110 types. Due to not the most unfavorable market conditions, the emphasis will be on inexpensive products and original recipes.
Profitable franchises
The target audience of the confectionery will be city residents, mainly living and working in its central part. The target audience can be characterized as citizens with an average level of income. The majority of the target audience are people aged 24-45, that is, the most solvent part of the population.
Due to the fact that the confectionery will have small production capacity and turnover, activities are planned to be carried out within the framework of an individual entrepreneur with a simplified taxation system (“income minus expenses”). The establishment will have a staff of 6 people.
The total investment costs for opening a confectionery shop will be 1,903,000 rubles. Of these, investments in working capital - 300,000 rubles. More details of the investment costs of the project are given in Table. 2 business plans.
Table 2. Total investment costs of the project
|
NAME |
AMOUNT, rub. |
|
|
Real estate |
||
|
Repair and design of premises |
||
|
Equipment |
||
|
Workshop and guest room equipment |
||
|
Intangible assets |
||
|
Registration and registration |
||
|
Working capital |
||
|
Total: |
1 903 000 |
|
3. DESCRIPTION OF GOODS AND SERVICES
The main assortment will be flour confectionery products - pastries (more than 100 types) and cakes (more than 10 types). The products we produce are high-calorie, but at the same time quickly digestible products with high nutritional value having excellent taste, unusual look and delicious aroma. The weight of cakes will vary from 40 to 120 g, cakes - from 500 to 2000 g. In Table. 3 shows the assortment of the confectionery and variable production costs. The assortment is indicative and may be changed depending on demand, the inclusion of new types of products, etc. The additional assortment of the confectionery will include soft drinks: coffee, tea, milkshakes, etc.
Table 3. Confectionery assortment
|
PRODUCT |
DESCRIPTION |
COSTS PER UNIT, rub. |
TRADE MARKUP, % |
UNIT COST, rub. |
|
|
Confectionery |
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|
Sponge cakes |
|||||
|
Cake “Michelangelo” |
Sponge cake with jelly and berries |
||||
|
Cake “Mr. Nut” |
Sponge cake with walnuts |
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|
Cake “Carrot Fortress” |
Sponge cake with carrots, cottage cheese, cinnamon and nuts |
||||
|
Cake “German Adventure” |
Sponge cake with chocolate glaze, banana and butter cream |
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|
Small Chocolate Cake |
Sponge cake with chocolate |
||||
|
Cake “Chocolate King” |
Sponge cake with chocolate and cherries |
||||
|
Sand cakes |
|||||
|
Cake “Sladkoedoff” |
Sand cake with candied fruits and nuts |
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|
Cake “Termite” |
Sand cake with condensed milk |
||||
|
Cake “Miracle glaze” |
Sand cake with glaze |
||||
|
Layer cakes |
|||||
|
Layer cake “Mephistopheles” |
Creamy layer cake with a surprise inside |
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|
Cake “Napoleon” |
Classic layer cake “Napoleon” with custard |
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Sponge cakes |
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|
Sponge cakes |
Assorted sponge cakes |
||||
|
Custard cakes |
Assorted custard cakes |
||||
|
Shortcakes |
Assorted shortbread cakes |
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|
Puff pastries |
Assorted puff pastries |
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|
Basket cakes |
Assorted basket cakes |
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Drinks |
|||||
|
Milkshake |
Assorted milkshake |
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Assorted coffee |
|||||
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Tea in assortment |
|||||
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Juice in assortment |
|||||
The main raw materials in confectionery production will be flour, eggs, sugar and butter. Milk and dairy products, fruits, berries, nuts, etc. will also be used. In the calculations of this business plan, average prices for raw materials in Russia as of December 2016 were used.
4.SALES AND MARKETING
The main sales channel at the initial stage of the project will be the workshop’s own café-confectionery; in the future, the products are planned to be supplied to grocery stores in the city. The sales plan (see Table 4 of the business plan) is designed for three years of the project’s existence. Reaching planned volumes is planned by the 4th month of operation.
Table 4. Sales plan for 2017-2019
|
Expression |
In kind |
In monetary terms, rub. |
In kind |
In monetary terms, rub. |
In kind |
In monetary terms, rub. |
|
Product type |
||||||
|
Cakes |
||||||
It is planned to use the following as marketing tools to attract the target audience:
distribution of leaflets and business cards;
Carrying out promotions with distribution of finished products.
Profitable franchises
Since customer feedback is important for the effective operation of a confectionery shop, it would be advisable to maintain social networks, where photographs of confectionery products will be posted, where visitors will be able to leave reviews about different types products. It is also possible to hold competitions with drawings for confectionery products or certificates for their purchase. To maintain customer loyalty, it is planned to create branded discount cards. To attract the attention of the audience at the start of work on the opening day of the confectionery, an advertising campaign will be held with a free tasting of confectionery products. 40 thousand rubles will be spent on advertising purposes before the opening of the establishment.
5. PRODUCTION PLAN
The confectionery shop with a cafe-shop will be located in the central part of the city, in a room with a total area of 100 square meters. Of these, 55 sq. meters will be a confectionery shop, 40 sq. meters will be occupied by a guest room designed to simultaneously receive 20 visitors. To accommodate the confectionery shop, the premises previously used as a cafe will be used, and therefore there will be no need for main communications. However, the guest room and the building's façade will need to be renovated to create the bakery's signature style. General expenses for repairs will amount to 430 thousand rubles.
The technological process for preparing confectionery products will depend on the specific recipe. In general, it can be divided into 5 main stages: preparing the product for kneading the dough, kneading the dough, baking the semi-finished product, preparing the cream, and decorating the product. To equip the confectionery shop, you will need to purchase equipment in the amount of 611,000 rubles. Taking into account equipment for preparing drinks, cash register equipment, display cases and furniture for the guest room, you will need 1,043,000 thousand rubles. (see Table 5 of the business plan).
Table 5. List of equipment
|
Name |
Price, rub. |
Cost, rub. |
|
|
Confectionery shop equipment |
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|
Beater |
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|
Cream boiler |
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|
Dough mixer |
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|
Confectionery forms |
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|
Convection confectionery oven |
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|
Electric stove |
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|
Proofing cabinet |
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|
Wiping machine |
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|
Fridge |
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|
Flour sifter |
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|
Freezer |
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|
Bathtub washing |
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|
Production equipment |
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|
Exhaust umbrella |
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|
Production table |
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|
Refrigeration equipment for trading floor |
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|
Confectionery showcase |
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|
Pastry cabinet |
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|
Juice cooler |
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|
Refrigerated bar cabinet |
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|
Other equipment |
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|
Furniture for visitors |
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|
Coffee machine |
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|
Cash register equipment/cashless payment terminal |
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|
Bar counter |
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|
Inventory |
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|
Milkshake mixer |
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|
Total: |
1 043 000 |
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On average, it is planned to produce 680 kg of cakes and 500 kg of pastries per month. Production volumes will be influenced by seasonality. Thus, the greatest workload of the workshop is expected on the eve of the New Year holidays, as well as in February - March.
6. ORGANIZATIONAL PLAN
Responsibilities for the management of the confectionery and work on cooperation with suppliers will be assumed by the individual entrepreneur. The organizational structure will include confectioners, salespeople, accountants and support staff. In Table. 6 shows the staffing table and wage fund. The main requirements for confectioners will be: availability vocational education, knowledge of recipes and production technology, the operating principle of confectionery equipment, methods of product design.
Table 6. Staffing and wages fund
|
Job title |
Salary, rub. |
Number, persons |
Payroll, rub. |
|
|
Production staff |
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|
Confectioner |
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|
Sales staff |
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|
Salesman |
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|
Support staff |
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|
Cleaning woman |
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|
Total: |
145 000 |
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|
Social contributions: |
43 800 |
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|
Total with deductions: |
188 800 |
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7. FINANCIAL PLAN
Investments in the Glazur confectionery project will amount to RUB 1,903,000. More detailed cost items are presented in Table 2 and Table. 5 business plan. All main financial indicators in the main period of activity, including cash flow, revenue, net profit, fixed and variable costs, are given in Appendix 1. The variable part will include the cost of raw materials, the constant (see Table 7) - rent, public utilities, commercial expenses, accounting, depreciation, management expenses, annuity loan payment (for a period of 36 months). Depreciation charges were calculated using the straight-line method over a useful life of 5 years.
Table 7. Fixed costs of the enterprise
8. EVALUATION OF EFFECTIVENESS
The effectiveness of the project can be judged based on the analysis of the financial plan, cash flows, as well as simple and integral indicators of the project (Table 1 business). Changes in the value of money over time are taken into account using the discounted cash flow method. The discount rate is 5%.
The expected turnover of the confectionery is 800 thousand rubles, net profit is 175 thousand rubles, return on sales is 21%.
The simple (PP) and discounted payback period of the project is 12 months. Net present value (NPV) is RUB 2,183,048, which is a positive value and exceeds the size of the starting investment. The internal rate of return (IRR) is 10.63%. The investment attractiveness of the project is also evidenced by the profitability index (PI), which is equal to 1.15 and exceeds 1.
9. RISKS AND GUARANTEES
Both at the preparation stage and during the main period of operation of the confectionery, the activity is associated with certain risks. Their assessment, as well as measures to prevent them, are given in Table. 8.
Table 8. Possible risks and ways to prevent them or their consequences
|
Risk factor |
Probability of occurrence |
Severity of consequences |
Events |
|
Equipment failure |
Purchasing equipment from a trusted supplier, availability of warranties, compliance with operating rules, hiring qualified personnel |
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|
Lack of qualified personnel |
Searching for personnel at the business planning stage, having a “backbone” of the team, offering more favorable conditions employees than competitors |
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|
Delaying repairs, increasing costs |
below average |
Careful approach to selection construction company, conclusion of an agreement with fixed deadlines for the delivery of the object, a fixed estimate |
|
|
“Squeezing out” by competitors (dumping, marketing wars, copying the corporate menu) |
Advertising, maintenance high level service, customer focus, receiving feedback from clients, the presence of a financial airbag for the initial period of work, the use of all competitive advantages, the presence of a loyalty program |
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|
Unscheduled rent increase |
Prescribing all the terms of the lease in the agreement, clarity of wording, if necessary, drawing up a lease agreement with the participation of a lawyer, concluding an agreement for long term at a fixed rate |
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|
Emergency, natural disaster |
extremely low |
Installation of security and fire alarms, compliance with fire safety standards |
10. Applications
APPENDIX 1
Production plan and main financial indicators in a three-year perspective
Profitable franchises
Mikhail Semynin