Business Plan on Cupcake Bakery 

Business Name:The Cupcake Bakery

Business structure: Partnership

Business location: Church st. Parramatta, NSW (franchiser store), main store, Sydney CBD

Date established:01/01/2016

Business owner(s): two business owners: Mr. Mani and Mrs Zara

Relevant owner experience:Both owners have general business knowledge based on their universtiry degrees and running of previous family owned business. They have both now ventured to running their own business using the skills and knowledge they have gained through their own family business’s.

Products/services: Cupcakes of a wide variety, hot and cold beverages and cooperate services. Constant regular demand flow with seasonal increased demand growth.

The Market

Target market:We aim to provide the whole general public of all ages and service requierments. This includes cooperate orders and individual single orders. Our products and services stand out over the others due to our dedication and quality of care we provide through custom order taking and meeting of dietry requirements.

Marketing strategy:Luckily we are a franchisor and already have an existing name in the industry hence most of our marketing has already been established. However, to further increase on our marketing to our individual store, we aim to increase customer awareness by holding free sampling of cupcakes outside our store during the week of opening, limited time offers, compeitions with gift vouchers to be won and ensuring customer satisfaction with guarantee promises.

The Future

Vision statement: We aim to provide luxurious sweets and beverages to the public earning their 100% satisfaction and recommendation. Our ultimate goal is to be recognized in the industry for outstanding quality of service, products and customer service.

Mission statement: The mission statement of The Cupcake Bakery is to offer some of the best baked products which reasonable price to its customers within a surrounding which is hygienic and eco-friendly.

Goals/objectives: The short and long term objective of the Cupcakle Backery is:

• To expand the entire productivity of the products
• To provide the best backed products to its customers
• Last but not the least to dish up the society where the business will be situated

The Finances

Key objectives and financial review: The product base of the Cupcake Backery is divided into four segments and all the for segments have different pricings for each individual products. As a result the total project finance which will be required to start-up the business is near about $3782

1       Products/services

Product/Service	Description	Price
Cupcakes	A large variety of freshly baked cupcakes including standard cupcakes, deluxe cupcakes, special order cupcakes for special occasions, maxi cupcakes and kids mini cupcakes.	-Standard Cupcakes:  $4.00 each -Deluxe Cupcakes: $4.80-$5 each -Maxi Cupcakes: $20.00-73 depending on size of cake -Kids Cupcakes: Assorted animal and character cupcakes $4.30-4.50  Large maxi cupcakes, Disney inspired: $68-73 -Special Occasion Cakes: Assorted cupcakes depending on time of year e.g. Valentines day cupcakes: $4.80 each and Valentines Maxi cupcake $25.00-68.00
Hot and Cold Beverages	Coffee: Our coffee served is made from a very unique company owned blend of coffee sourced from India, Central and South America, Indonesia and Ethiopia. (Cappuccino, Flat White, Café Latte, Long Black, Hot Chocolate, Chai Latte, Mocha) Teas: English Breakfast, Jasmine, Earl Grey, Peppermint, Chamomile, Lemongrass and Ginger Cold Drinks: Iced coffee served with ice cream and whipped cream topping, (Iced Coffee, Iced Chocolate, Iced Mocha) Milkshakes: (Chocoalte, Caramel, Vanilla Malt, Strawberry, Coffee, Mocha, Mint, Hazelnut)	Assorted Coffee: small $3.50, Large $4.00 Teas: small $3.50, Large $4.00 Iced coffee: regular from $5.50, large $6.00 Milkshakes: $6.00 each
Ice Cream	Sundaes: rich sundae made with brownies, ice cream flavour of choice (vanilla, strawberry or chocolcate) with syrup, nuts, hot fudge and whipped cream.	Regular: $6.00 Large: $12.00
Cooperate Orders, Vouchers and other services	Cooperate orders can also be made for larger orders and functions such as weddings, parties etc. Gift store vouchers can also be purchased along with gift-wrapping and custom made cupcakes as requested by customers.	Cooperate orders prices depend on type and quanity of cupcakes ordered. Birth Gift Boxes: Baby Boy or Girl Box of 12 special made cupcakes $48.00 Gift Vouchers: $50 Melbourne and Sydney Store Vouchers

Market position:

Compared to other cupcake stores, our product prices are not the cheapest however; the variation in services, cupcakes quality/selection and extra services provided can explain the difference in price. As seen by other competitors (eg. CupcakesonPitt and Cupcakes for all Occasions), the cupcake prices are generally lower by $0.5-1.50 but with are limited in variation and/or sizes. When compared to other cupcake stores, our store can be considered as a moderately priced cupcake supplier.

The mentioned competitors do not serve organic and specially sourced coffee, cold beverages such as ice cream and thick shakes, custom made cupcakes according to client orders nor provide gift wrapping for cupcake gift boxes. Our store offers very reasonable prices for coffee when compared to other coffee only chains. Having the options of desert and coffee also enhances the customer experience. The variety of drink options from coffee to milkshakes and even Sundaes can keep the whole family happy and provide options to a number of age groups.

Unique Selling position:

We stand out from our competitor by providing special features and products. We aim to be unique and offer more services such as custom and cooperate orders, provide home and take away orders, offer childrens menu and a friendly children/family environment and also cater to special diets such as vegetarian and gluten free options. We are also wheelchair accessible and have longer store hours making us available for longer (7am-6pm weekdays, 7am-7pm Thursdays, 10am-5pm Saturdays and from 11am to 5pm Sundays). Extra services such as gift cards, gift wrapping and custom orders can also provide us with a unique selling position than other stores.

Anticipated demand:It has been anticipated that in the first 6 months the business will gain a proft of around 60%.

Pricing strategy:

On our main website and instore we give the opportunity for customers to like our facebook page for limited time offers, compeitions and also update them on any news, events and discounts available. We also offer each customer a coffee/drinks stamp card with every 5^th beverage purchase free.

Value to customer:

Our value to our customers may depend heavily on the customers lifestyle, diet and schedule. To some, having a cup of coffee every morning before work or studies is a necessity while others may see having a cup of coffee and desert as a treat and done not so often.

Growth potential : The people of Australia are fond of having bread and backed food as a result it is anticipated to have a huge demand of near about 70% in the first six months which is expected to expand up gradually. The main drivers of the growth in case of The Cupcake Backery will be:

·         The fresh baked cupcakes

·         The location

·         The product base

·         The price of the product

·         The way of handling the customer

Insurance

Workers compensation: Particularly for this business employee compensation mandatory as because the business will employ certain amount of workers. The employee compensation will include hospital charges, rehabilitation expense, and extra costs for the workers who will get injured at the time of working.

Public liability insurance: The Entrepreneurs are responsible to outsiders which are mainly the clients, workers, contractors, as well as so forth, that arrives within the bond with the business. This implies if harm or a mishap happens at the time when the workers will be giving an administration on the company vicinity, the outsider can sue the business and prompt a protracted and exorbitant lawful matter

Professional indemnity: The specialised or professional insurance for the Cupcake Bakery will be planned particularly for the experts those who will work to offer suggestion and administrations to the clients as well as to the purchasers.

Product liability: Item risk indemnity gives security against any cases of harm or real damage emerging from products delivered by the business.

Business assets: For this particular business the main business asset will be the building where the actual business will be opened, equipments which will be needed at the time of backing. Along with this the employees will be also counted as the main business asset for this business.

Business revenue: As indicated by the past records of the business along with the history of the brand, the income created from a solitary store might be very considerable. This is because of the brand giving huge business occasions, weddings, birthdays and other uncommon events

 

Legal considerations

One of the important legal requirements of the business will be certification from the ASIC which is Australian Security and investment Commission in order to operate business within Sydney.

 

Suppliers

The major supplier of the Cupcake Bakery will be the wholesaler of Sydney who provides fresh and hygienic baking products like bread, crème sugar and icing etc. In order to maintain a god relationship with the customer the business will have one executive who will attend the wholesaler once in a month and also timely payment of the products which will be purchased from the store will help in maintaining a good relationship with the supplier.

Trading hours:

What are your trading hours: 7am-6pm weekdays, 7am-7pm Thursdays, 10am-5pm Saturdays and from 11am to 5pm Sundays

Expected peak trading times: Early morning from 7am-9am is when most people are leaving to work and order their cup of coffee. During Lunch times are also expected to be popular, this is when customers are able to have some time with their collegues, staff and friends. Also after school hours are also expected to be busy as most students would like to enjoy desert or a cold beverage after school.

Which times do you expect to be more profitable? Weekends and Thursday nights. This is when most people will be available to enjoy time off from their regular weekday routines and schedules.

How will this change over different seasons? Due to our longer acoomodating trading hours we are able to be available to our customers regardless of season changes. A possibility of change due seasons to consider could be the extra demand of hot beverages during colder months and the demand for the cold beverages such as milkshakes and sundaes during the warmer seaons. Also, during school holidays demand may increase due to family outings and availability.

Communication channels:

Customers are able to get in contact with us through our landline telephone, shopfront, email, facebook page, or internet blog.

Payment types accepted:

For our services and products we accept payment types of cash, credit and visa debit cards, gift cards and Paypal (online orders)

Warranties & refunds:

Due to health standards and safety we are unable to offer exchanges when customers are not satisfied with our products however we are happy to offer refunds on the day of purchases with valid reasons.

Quality control:

To ensure our cupcakes are produced to the same standard of quality we ensure that specific parameters are taken into consideration and controlled to ensure quality. These include:

ü  Ensure that the cupcakes that are made and brought into premisis are moist and do not crumble, keep shape nicely and are soft. To do this we ensure that they are not over baked and the temperature and baking time are precise and set to prevent the cupcakes becoming dry and crumbly. Ingredients such as oil and vinegar are moistening agents that are added into our recipe to ensure the right amount of softness and moisture of the cupcakes.

ü  Using the right amount of sugar to ensure right level of sweetness – this is usually 80g per cupcake and a kitchen scale is used to track this.

ü  Appearance of our cupcakes, sundaes and drinks is also very important. We ensure that every element in appearance is taken into consideration before display.

ü  Cupcake size is also important and is necessary to control. We ensure our franchisor ensures control over the shape and size of each cupcake during baking and cooling down. Ingredients such as baking powder and variables such as time and temperature are closely monitored and controlled (25 minutes baking time controlled with alaram clock, baking temperaute of 180 degrees to be checked in advance).

ü  Products such as coffee, milkshakes and sundaes are served to customers as soon as they are prepared and are ready to ensure freshness

2       Market Analysis

 

Market research

In order to carry out the market research for this business a survey will be carried out to identify the need and demands of the customer across whole Sydney.

 

Market targets

The target market for this business will be the people who are staying near Sydney and those who are fond of baked food like cakes.

Environmental/industry analysis

As the financial system of the Australia is stable as a result it will be a great help for the business to grow within that region.  

Your customers

Customer demographics

The main targeted customer of the Cupcake Bakery will the children and youngster who aged between 12 to 25 and also the college going student aged between 18 to 24. The secondary target segment will be the office going people aged between 26 to 40 who love to have cake at the time of evening and breaks.

Key customers

The key customer for this business will be:

·         The school and college going group

·         The office going group

 

Customer management

In order to maintain a good relationship with the clients free coupons, discounts and free gifts will be provided to the customers.

3       Competitors

[How do you rate against your competitors? How can your business improve on what they offer?]

Competitor details

Competitor	Established date	Size	Market share (%)	Value to customers	Strengths	Weaknesses
Cupcakesonpitt	2011	Not mentioned as such	20%	As it is a wholesaler thus the quantity of pruidtc is much higher as copared to other competitorsd	Have a  wholesale business	Only one store
Cupcakes For All Occasions	2015	Not mentioned as such	Not mentioned as such	Its new in the marjet as a result providng some of the finest products to its customers	Home delivery options available	Long distance

4       S.W.O.T. analysis

[List each of your businesses strengths, weaknesses, opportunities or threats in the table below and then outline how you plan to address each of the weaknesses/threats.]

Strengths	Weaknesses
Good location:  busy area, close to station, schools, library, Business district Parramatta. Products and services are unique Good coffee prices Support from franchisor Other franchishor is of a distance	High rental costsà reduce unnecessary costs and spending; increase sales through promotion and offers
Opportunities	Threats
Build on customer and brand loyalty Have a good reputation in the community	Cash flow problemsà manage existing cash flow appropriately and on necessities Unsold products means lossà only produce amount that is expected to sell based on daily average or to pre orders Competition from stores providing similar servicesà increase on quality of products and services, promotion and marketing. Provide online offers and discounts such as package deals

5       Market Strategy

 

Marketing Objectives

Examples of SMART marketing objectives

·         To achieve a 20% return on capital employed by April 2014 (Profitability Objective)

·         To gain 15% of the market for sports socks by November 2018 (Market Share Objective)

·         To make X brand of juice the preferred brand of 21-29 year old  females in Australia by August 2019 (Branding Objective)

Your PRODUCT

·          

Product or Service	Features	Benefits	Unique Selling Position	Support	Spin Offs
Cupcakes, hot and cold becerages such as coffee, tea, milkshakes and ice creams.	High quality sweets with fresh ingrediants sourced only from the best locations. Dietry requirements are also met.	Acquire more customers	Best products	Dicsounts and free gifts	No

ThePRICINGof your product or service

[Price is a critical component of your marketing mix. Why? Because choosing the right price for your products or services will help you to maximise profits and also build strong relationships with your customers. By pricing effectively you will also avoid the serious financial consequences that can occur if you price too low (not enough profit) or too high (not enough sales).

Setting prices for your products and services might seem like a daunting task, however, it doesn’t need to be … just remember:

·         You are in business to make a profit (and that’s ok!)

·         Most business owners underprice the value that they deliver

·         Your sales and marketing strategy should defend your prices.]

Product or Service	Price	Costs	Net Profit	Comp. Price	Value
Cupcakes of a wide variety, hot and cold beverages and cooperate services	Based on the product choice	$164	$100	$68-$73.00	Fresh and seven days open

Advertising & promotional strategy

[What strategies do you have for promoting and advertising your products/services in the next 12 months?]

Planned promotion /advertising type	Expected business improvement	Cost ($)	Target date
[Print media advertising, online advertising, mail-out, giveaway, media release, social media campaign or event.]	It will help the company to promote the products which will help to attain more sutomer base.	$3137	$20

Sales & marketing objectives

The major sales techniques which will be applied in this busiess is good and sober communication process.

Unique selling position

The USP of this business is its product and price range.

Position

[Place refers to the channels and locations for distributing your product, related information,

Place represents the location where a product can be purchased. It is often referred to as the distribution channel. This may include any physical store (supermarket, departmental stores) as well as virtual stores (e-markets and e-malls) on the Internet. This is crucial as this provides the place utility to the consumer, which often becomes a deciding factor for the purchase of many products across multiple product categories.]

Sales & distribution channels

Channel type	Products/services	Percentage of sales (%)	Advantages	Disadvantages
[e.g. Shopfront, internet, direct mail, export or wholesale]	All the products of this company	Min of 70%	Easily accessible to the customers	The price

6       Business Structure and Management

Registration details

Business name:The Cupcake Bakery

Date registered: 01/012016

Location(s) registered:Sydney, NSW

Business structure: Partnership

GST: Registered since 01/01/2016

Domain names:http://www.thecupcakebakery.com.au/

Licences & permits:General goods services

Business premises

Business location: the business will be located near Sydney, NSW

Buy/lease:It will be purchased premise

Organisation chart

[Outline your business structure in an organisation chart.]

Figure 1: Example Organisation Chart.

 

Management & ownership

Names of owners:Mr. Mani and Mrs. Zara

Details of management & ownership: The main will be run by the owner Mr. J Citizen

Experience:Experince in hanlding a bakery shop will be mandatory

 

Key personnel

Current staff

[List your current staff in the table below.]

Job Title	Name	Expected staff turnover	Skills or strengths
[e.g. Marketing/ Sales Manager]	[Mr Chris Brantley]	[12-18 months]	[Relevant qualifications in Sales/Marketing. At least 5 years experience in the industry. Award in marketing excellence.]
[e.g. Marketing/ Sales Manager]	[Mr Chris Brantley]	[12-18 months]	[Relevant qualifications in Sales/Marketing. At least 5 years experience in the industry. Award in marketing excellence.]
[e.g. Marketing/ Sales Manager]	[Mr Chris Brantley]	[12-18 months]	[Relevant qualifications in Sales/Marketing. At least 5 years experience in the industry. Award in marketing excellence.]
[e.g. Marketing/ Sales Manager]	[Mr Chris Brantley]	[12-18 months]	[Relevant qualifications in Sales/Marketing. At least 5 years experience in the industry. Award in marketing excellence.]

Required staff

[List your required staff in the table below.]

Job Title	Quantity	Expected staff turnover	Skills necessary	Date required
[e.g. Office Manager]	[1]	[2-3 years]	[Relevant qualifications in Office Management. At least 2 years experience.]	[Month/Year]
[e.g. Office Manager]	[1]	[2-3 years]	[Relevant qualifications in Office Management. At least 2 years experience.]	[Month/Year]
[e.g. Office Manager]	[1]	[2-3 years]	[Relevant qualifications in Office Management. At least 2 years experience.]	[2 years]

Exit Strategy

The existing strategy of the business is to start up the business with a good profit earning expectation in the first 6 month

7       The Finances

The amount of cash you have available for the venture from personal assets, including assistance from friends and family is AUD$15,000. You may of course seek additional debt or equity funding from other sources.

Students need to demonstrate a clear understand of how the business will be financed to

Financial forecasts

Firstly, revised budgets and statements from assessment item 2 and include the following

Financial forecasts should include:

·         Basic assumptions & information

·         Sales mix forecast (monthly for year 1, quarterly years 2 & 3)

·         Cash flow forecast (monthly for year 1, quarterly years 2 & 3)

·         Income statement (years 1 & 2)

·         Statement of Financial Position – Balance sheet (years 1 & 2)

·         Statement of Cash Flows (years 1 & 2)

·         Statement of Changes in Equity (years 1 & 2)

·         Personal expenses (year 1 only)

·         Cost-volume-profit analysis

·         Calculate the financial statement ratios

·         Profitability ratio

·         Sensitivity analysis (optimistic / most likely / pessimistic including analysis)

8       Action Plan

·         Legal

·         Finance

·         Marketing

Key Objectives	Task	By Whom	By When
Legal	To acquire the legal documents	Personal lawyer of the company	Within tjhe 1st month of the start-up
Marketing	To look after sales and promotional activity	Marketing managers	Within tjhe 1st month of the start-up
Finance	To look after the accounts department	Finance head	Within tjhe 1st month of the start-up

For more assistance on business plans on any business concepts, contact us at: 

http://australianassignmenthelp.com