MGOP Bakery Supplies
Business Plan
Business
Plan
1.0 Executive Summary
MGOP Bakery Supplies will be a provider of good quality products and will excel
in good customer service. It will begin its operations in year 2014. The main
goals of the business are to provide the locality with top quality bakery supplies
as wholesaler or retailer and establish strong customer loyalty by offering
discounts and promotional items. The establishment ought to provide the best
prices on the products to the customers also; there will be a guarantee on the
best customer service offered by the employees. Financial plans are included in
this business plan .
(S ee Table of C ontents)
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Business
Plan
Table of Contents
Title Page............................................................................................................ 1
1.0 Executive Summary........................................................................................ 2
Table of Contents ................................................................................................ 3
1.1 Goals............................................................................................................ 4
1.2 Mission ......................................................................................................... 4
1.3 Keys to Success .............................................................................................. 4
2.0 Management and Organization ....................................................................... 5
2.1 Activities of the Business................................................................................... 5
2.2 Personnel Plan................................................................................................ 5
Table 1.0. Personnel Plan ................................................................................... 5
2.3 Hiring of Employees ......................................................................................... 6
3.0 Marketing Plan............................................................................................... 7
3.1 Product......................................................................................................... 7
3.2 Price ............................................................................................................ 7
3.3 Place............................................................................................................ 8
3.4 Promotion ..................................................................................................... 8
3.5 Customer ...................................................................................................... 8
3.6 Competition ................................................................................................... 8
4.0 Wok Plan ....................................................................................................... 9
Table 2.0. Work Plan ......................................................................................... 9
5.0 Start Up Capital............................................................................................ 10
6.0 Projected Profit and Loss Statement.............................................................. 10
Table 3.0. Profit and Loss Statement ................................................................... 10
7.0 Cash Flow Plan............................................................................................. 11
Table 5.0. Cash Flow Plan ................................................................................. 11
8.0 Break Even Analysis ..................................................................................... 11
Table 6.0. Break Even Analysis........................................................................... 11
9.0 Balance Sheet .............................................................................................. 12
Table 7.0. Balance Sheet .................................................................................. 12
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Business
Plan
1.1 Goals
Provide bakery supplies as wholesaler or retailer to the locality
Establish strong customer loyalty by giving out discounts and promotional
items or rebates
1.2 Mission
Provide customers with the best prices on the highest quality bakery supplies.
1.3 Keys to Success
Top-quality products
Excellent customer service
Offer discount prices and promotional items for loyal customers
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2.0 Management and Organization
MGOP Bakery Supplies will be managed by its owner, Mary Grace O. Pagas. This
will be the first year of operation of the business.
2.1. Activities of the Business
a) Managing the overall operations
b) Handling cash transactions
c) Direct selling of goods to walk in customers
d) Delivery of goods to distant customers
e) Accounting
2.2 Personnel Plan
a) Manager (1)
b) Cashier (1)
c) Sales Clerk (1)
d) Utility (5)
e) Accountant (1)
Table 1.0. Personnel Plan
Personnel Plan 2014 2015 2016
Manager 1 Php 156, 000.00 Php 171, 600.00 Php 188, 760.00
Cashier 1 130, 000.00 143, 000.00 157, 300.00
Sales Clerk 1 104, 000.00 114, 400.00 125, 840.00
Utility 5 390, 000.00 429, 000.00 471, 900.00
Accountant 1 130, 000.00 143, 000.00 157, 300.00
Total Employees 9 910, 000.00 1, 001, 000.00 1, 101, 100
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2.3 Hiring of Employees
Applicants were accepted for the vacant positions of: Cashier; Sales Clerk; Utility;
and Accountant. Those with the good qualifications were examined and
subsequently interviewed for hiring.
If sales exceeded from the net income projection, employees will
receive 10% annual salary increase.
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Business
Plan
3.0 Marketing Plan
3.1 Product
MGOP Bakery Supplies offers the primary ingredients and supplies in baking,
such as:
- Flour
- Shortening
- Margarine
- Sugar
- Baking Powder
- Milk Powder
- Yeast
- Bread Improver
- Baking Cups
- Food Coloring
- Food Flavoring
- Plastic bags and many more.
3.2 Price
Prices of the products would be ensured to be affordable to the public.
Discounted price will be offered to volume purchases and promotional items shall
be given to customers or rebates.
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3.3 Place
The store is located at the local Public Market of Digos City, Davao del Sur. This
will enable customers’ easy access to the location of the store as it will be at the
heart of the City.
3.4 Promotion
- The products available in the store will be organized neatly and orderly
giving the store a nice setting for customers to easily shop.
- There will be printed flyers given out to people walking by; also
advertisements on radio and television will be aired for broader reach to
potential customers; ads in social network sites will also be posted.
3.5 Customers
Customers of MGOP Bakery Supplies include bakeshops, pastry shops, catering
services, school and office canteens, and also, walk in customers.
3.6 Competition
Competition includes the supermarkets and grocery stores. To catch up to the
competitions, the MGOP Bakery Supplies offers high quality goods, good
customer service and delivery service to the valued customers.
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4.0 Work Plan
Table 2.0. Work Plan
Day Cash
Activity No. of Employees
(Monday - Saturday) (Monthly)
Managing the
Daily 1 Php 12, 000.00
overall operations
Handling cash
Daily 1 10, 000.00
transactions
Direct selling of
goods to walk in Daily 1 8, 000.00
customers
Delivery of goods to
Daily 5 30, 000.00
distant customers
Accounting Daily 1 10, 000.00
TOTAL 70, 000.00
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5.0 Start – Up Capital
MGOP Bakery Supplies will have Php 2, 000, 000.00 with a minimal interest of
10% per annum, as a start-up capital to kick off operations.
6.0 Projected Profit and Loss Statement
Table 3.0. Projected Profit and Loss Statement
2014 2015 2016
Sales Php 24,000,000.00 Php 30,000,000.00 Php 36,000,000.00
Purchases 22,460,000.00 27,000,000.00 32,875,000.00
Freight In 120,000.00 130,000.00 150,000.00
Good Available for Sale 22,580,000.00 27,130,000.00 33,025,000.00
Less:
Inventory - Ending 350,000.00 455,000.00 280,000.00
Cost of Sales 22,230,000.00 27,625,000.00 33,200,000.00
Gross Margin 1,770,000.00 2,375,000.00 2,800,000.00
Gross Margin (%) 7.37% 7.91% 7.77%
Personnel 910,000.00 1,001,000.00 1,101,100.00
Supplies Used 20,000.00 50,000.00 75,000.00
Taxes and Licenses 30,000.00 40,000.00 50,000.00
Insurance 40,000.00 50,000.00 60,000.00
Miscellaneous /
Rent 120,000.00 200,000.00 250,000.00
Telephone Bill 12,000.00 15,000.00 20,000.00
Electric Bill 12,000.00 15,000.00 20,000.00
Water Bill 6,000.00 8,000.00 10,000.00
Interest Expense 200,000.00 200,000.00 200,000.00
1,350,000.00 1,579,000.00 1,786,100.00
Net Profit 420,000.00 796,000.00 1,013,900.00
Net Profit Sales 1.75 2.65 3.37
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7.0 Cash Flow Plan
Table 4.0. Cash Flow Plan
2014 2015 2016
Cash Sales Php 24,000,000.00 Php 30,000,000.00 Php 36,000,000.00
Less:
Purchases 22,460,000.00 27,600,000.00 32,875,000.00
Freight 120,000.00 130,000.00 150,000.00
Other Expenses 1,150,000.00 1,379,000.00 1,586,100.00
Interest 200,000.00 200,000.00 200,000.00
23,930,000.00 29,309,000.00 34,811,100.00
Total 70,000.00 691,000.00 1,188,900.00
8.0 Break Even Analysis
Table 5.0 Break Even Analysis
2014 2015 2016
Sales Php 24,000,000.00 Php 30,000,000.00 Php 36,000,000.00
Cost of Sales 22,300,000.00 27,625,000.00 33,200,000.00
Gross Margin 1,770,000.00 2,375,000.00 2,800,000.00
Gross Margin (%) 7.37 7.91 7.77
Total Indirect Costs 1,350,000.00 1,579,000.00 1,786,100.00
Gross Margin 1,770,000.00 2,375,000.00 2,800,000.00
Break Even Point Sales
Level 76.27 66.48 63.78
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9.0 Balance Sheet
Table 6.0. Balance Sheet
2014 2015 2016
Asset
Cash Php 2,070,000.00 Php 2,761,000.00 Php 3,949,900.00
Inventory 350,000.00 455,000.00 280,000.00
Total 2,420,000.00 3,216,000.00 4,229,900.00
Liabilities and Capital
Capital 2,000,000.00 2,000,000.00 2,000,000.00
Income 420,000.00 1,216,000.00 2,229,900.00
Total 2,420,000.00 3,216,000.00 4,229,900.00
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