Business Plan “The Honey Treats”
In order to establish the new business, there is the need for private entrepreneurship; however, the business that is going to start up is named as “The Honey Treats”, it will open in Atlanta, GA, USA. It will be a dessert bakery business, where there will be the focus on the quick-service and the exceptional dessert, however, the desert will be its main selling point and there is the vision of bringing a new bakery concept for the people of the city. It will become a favorite spot for the natives of the Atlanta and tourists. The business aims to facilities the people by giving them quality food as it would be a great place for the tourists. There will be the quality products and the business would focus on to provide the friendly and fair business environment to all the stakeholders (Giang, 2013).
It is the aim of the business to make the 50% increase in sales the second year of the bakery business. The startup cost of the business will be $300,00 to launch.
The bakery business will focus on the potential customer, especially the tourists or visitors because there will be the desirable sweets for the customers. The business is going to target the new niche market because it will be an exceptional dessert bar, the bakery will provide the customers with the high-quality desserts, and there will be the fun and the great “gourmet” experience, The business would focus onto making the enough profit to generate. There will be the development of the business strategies that will attract the customers (Theriault, 2013).
Honey treats will focus on the creative work environment by the workforce so that there could be the great concepts in the market. The company would like to focus on the employee education as there will be the recognition programs. There will be the three full-time workers and the three directors, who will focus on the business resources and business operations (Gale, Cengage Learning, 2017).
The business will start up with the $300,00 to launch; however, capital will be invested by three of the directors, aggregated investment of $1, 00,00 for the business operations. However, it is expected that business will make the 50% increase in sales the second year of the bakery business.
In the company history the business could be mentioned as the new start up business, as it is the new sweet bakery, named as The Honey Treats which will open in Atlanta, GA, USA, this dessert bakery business focuses on the natives of the Atlanta and the tourists. There will be the three directors, as the first director will be Mr. John, the second director will be Mr. Robert and the third director will be Mr. Bush. However, the directors have some marketing and business experiences; they can do some more basic market research in order to start up the good business.
Following are the business goals of Honey Treats
- The business focuses on to attain the sales of $155,00 in the first year.
- The business focuses on increasing the sales in the second year of the business by 50% and in the third year by 30%.
- Their business should open new branches or new stores in the third or fourth year, after going in the market.
Following are the mission statement of Honey Treats
- There is the focus to provide the customers with great and exceptional desserts with the finest and quality products.
- There will be the friendly and fair business environment to all the stakeholders so that it would be the favorite spot for the natives of the Atlanta and tourists.
The Ownership Structure
For the ownership structure of the Honey Treats, there is the need to think about the significant practices, as there is need to focus how the direct and indirect impacts can affect the entrepreneurial business. The business owners or the directors should decide that how much percentage of profit will be given to whom and how much percentage of ownership can be divided.
- In order to start up the business, there is the need to increase the cash flow of the business, as the bakery need to invest by thinking that how much money need to borrow from the bank, as the borrowing should be less, so that business could be saved from the necessary risks (Leitch, 2012).
- For the business the owners need to divide the percentage example, it is decided that Mr. John, who is the first director will own about 50% of the share. Mr. Robert, who is the second director of the bakery, will hold the 30% of the share and the third investor or director Mr. Bush will hold the 20% of the share in the bakery.
The Internal Management
The internal management of the bakery will focus on the various management categories, as the management needs to relate to the business processes. However, the management of the bakery will have the responsibility that how to divide the profit or what is needed to pay the workers etc. Few of the management responsibilities in the business are given as follows.
- The first director of the bakery Mr. John needs to decide the budget allocation, the responsibilities of the cashier in the business.
- The second director of the bakery Mr. Robert needs to focus on the HR principles example, the workforce management including recruitment, training etc.
- The third director of the bakery Mr. Bush needs to decide on the marketing plans that how business can be strengthened in the market and how to get the competitive advantage by making the effective advertising etc.
- The bakery business will also require the management of the chef, as we need the home based chef who can work for the bakery and the other chef who make fresh sweet products in the bakery.
- The business also requires full staff including the waiters and other people in the bakery who will attend the customer.
- The business has also decided on the wages of staff, as staff will be given $12 when they work for an hour and salary of two weeks will be given to them correspondingly. For the workers, the business will focus on the Atlanta and other US employment laws, so that sick leave and other leaves can be given to the employees when they need it.
External Management Resources
Honey treats will focus on the external management resources as are two important business resources that the business will focus, however, one is the professional services and other is the advisory professionals (Balanoff & Master, 2010).
- For the external management resources, three of the directors are well aware of the Atlanta market, they have the knowledge and experiences of the stakeholders and the market, and they understand that the project Honey treats will give them profit. The directors fully know how to deal with the complex market situation and how effective planning can be done, in order to get the positive outcomes in the industry.
Human Resources Needs In The Business Plan
The bakery business need to focus more on the employees because employees can help the business to grow, however, effective HRM principles need to be applied in the company, so that there could be the better support to the people working for the bakery. Thus, this department is under Mr. Robert, second director of the company, therefore there us the need to focus on the efficient practices. For the management of daily operation, there will be the people in the management of human resource, example, a chef will handle the team of chef and workers etc (Kraten, 2010).
- There is the need to recruit the better or professional chef, who has the done the course or have the professional degree, for the bakery. One should be aware bring the creativity in sweet taste buds.
- In order to recruit the great professionals, the there bakery will give advertisement in the newspaper and make the profile on the monster.com so that best candidates or staff could be selected. There will be the selection of the young talent, who can generate good ideas for the company. However, as the company is serving tourists also, so the staff should be able to speak in different languages.
Marketing Research And Analysis
The bakery needs to compete in the baking and restaurant industry, as there is need to focus on the business trends that are in the industry because of people in Atlanta like bakery products, in order to compete with the other bakeries in the city there is the need to do the comparison of itself. However, there are few bakeries in Atlanta that are giving home-based and exceptional product according to the choice of the customers, therefore, the honey treats need to focus on the lifestyle of the American people.
However, there are different types of competitors of the Honey Treats in the market, three competitors in the market are:
- Direct competitors: They are the competitors who have the same products and services example, freshly home based items.
- Occasional competitors: They are the competitors, who cater or offer the services to clients when they demand. Example, there are companies who can make cakes or cupcakes on occasion according to customers demand.
- External competitors: These are the competitors, who can become direct competitors in a market.
The strength of Honey Treats would be the innovation, as there will be the selection of the innovative staff, which can make the best bakery product. The bakery is going to serve freshly baked home based quality food so it can be the strength of the company. Strength could be friendly staff and the open customer’s friendly hours, where the customers will get the great experiences and services (Grant, Hackney, & Edgar, 2010).
The weakness of the bakery could be the perceived lack of demand because there are maximum competitors in the market. The location could be also the weakness because at starting of business the business cannot buy expensive locations in downtown of Atlanta.
However, Honey Treats have various of opportunities in the market, example, the company could focus on the online retailing as it is the business plans to focus on the online relating in order to get maximum benefits from the consumers. The business is also encouraging the catering for international taste because the major focus of the business is to make the international customer and customers who are the tourists.
There are various threats to the Honey Treats, as the competition is the major threat because the start up business cost is not too much, so everyone can give home baked fresh products, other bakeries could also provide customers with online and free delivery services etc. Changing climate and cost could also be the major threats to the company (Daft & Marcic, 2010).
Porter’s Five Forces Analysis
Threats Of New Entrants
In the industry, there can be threats of the new entrants because the startup business cost do not require much money, as people could also start the business or bakery products from the home, however, with the average cost of $10000 bakery capital can be gather and can be open.
Threats Of Substitutes
There are the high that of substitute products, because there are various bakery items that can be used to replace one product, however the bakery in this way, need to compete with the competitors so that there could be the benefits, bakery need to retain the clients by providing them with the higher quality of the products.
Bargaining Power Of Buyer
The buyer of the bakery has high bargaining power because there is hotel chain and convenience stores in the market, the customers in this way need to be given the quality and importance according to their favorable choices.
Bargaining Power Of Suppliers
There is less bargaining power of the suppliers because the raw material is very basic for the bakery items, the bakery has the alternatives supplier in order to get the products, therefore, there are multiple suppliers in the market and bakery could maintain the adequate supply.
The bakery has extremely high competitive demand in the market; there are many other small bakeries in Atlanta. Therefore, the new start-up business will compete on the quality and prices that are decided (Ochieng, Price, & Moore, 2013).
The marketing plan for the bakery is its marketing and advertising efforts for the first year. The aim of the company is to provide a unique dining experience as a superlative sweets shop. In marketing strategy bakery will reach to potential customers through newspapers, fliers, social media ads, and weekend promotions. Rest marketing plan will be made according to the location and nearby areas. The target customers of the bakery are students, professional, and people of all ages because bakery items are widely used by all every age bracket (Aileron, 2011).
The bakery will serve all bakery items such as cakes, sandwiches, cookies, sweets, bread, pizza and all other gourmet items. The Honey Treats bakery will be a medium size business. The business is located in Atlanta, USA and the bakery will hire 12 workers including chef, helper, cashier, and waiters. Roles and responsibilities of all persons will be described in their Job Descriptions so they will perform required work.
The bakery will use the honey theme in its location and ambiance of the bakery will be chosen according to name and logo of the business. Some animation characters will also be used to attract children. People will be allowed to celebrate birthdays in the bakery. All workers will wear a special uniform given by the bakery. The company will offer membership through membership card. Those customers who will apply for membership card will get special benefits. (Davis, 2011)
The company will select pricing strategies according to its marketing plan and other processes. The most suitable pricing strategy for a new startup is cost-based pricing strategy. According to this strategy, the retail cost of the bakery items will set according to the cost that will incur during the making of products.
Atlanta, USA is selected as the place of the bakery. The location is close to the market so customers will easily approach the bakery. The location is near to city, railway, and shopping malls and the areas have potential to attract many tourists.
Different promotional strategies will be used for promotion of the bakery. The Honey Treats will select cost-effective promotional strategies such as word of mouth, and newspaper ad, and ad on social media websites like FaceBook, Twitter, and LinkedIn.
The company will hire employees according to predetermined criteria. Necessary training will be provided to employees at the time of joining like communication skills, personality development, and presentation skills. The new business will focus on the people as; there is the need to train the people in a week so that the business can start up soon.
For the Honey Treat dessert bakery business plan there is the need to train the staff, the staff should be prepared in order to keep the check on the maintenance and of a process by the staff (Jinks, 2016).
The staff of the bakery will have the same uniform or clothing.
The business or bakery need to do its evaluation, as there will be the assessment of the operation after every 5 to 6 months, in order to keep check out the performance.
Business Legal Requirement
The legal requirements of “The Honey Treats” include registration and apply for a business license. An “occupational tax registration certificate” or business license is required for opening a new bakery startup in the Atlanta, USA.
- Business partners must apply for the business license.
- The name of the bakery must be approved under the USA business rules and regulations.
- Renew “The Honey Treats” business license annually after filling Business License Renewal Application. Business must fulfill renewal criteria and must follow all rules.
- Business partners must follow all rules related to business registration. (Atlantaga.gov, 2017)
Insurance And Security Issues
Business owners protect their finances and business with a wide range of insurance policies. It includes bakery insurance, employment insurance, health insurance, commercial vehicle insurance, and disability insurance. All kinds of business property can be saved by obtaining a right insurance service in the city. Business partners will select an insurance company in Atlanta after a careful search.
The business premises specify the location of the business. The bakery will be opened in the United States and the exact location of the bakery is described below,
The bakery will be opened in Atlanta, GA, USA. The total size of the bakery building will be 1200 square feet, 35% place will be used for kitchen and bathroom, while rest 65% area will be used for the dining hall. The rental building will be used for the bakery and rent will be paid after the end of every month.
Business Licenses And Government Rules
All business licenses must be obtained before starting the bakery. Partners are required to follow all government rules and regulations in business operations. Obtain food license from food authorities.
Fitting And Fixture And Equipment Required
Fitting and fixture equipment that are required for “The Honey Treats” are mentioned below,
- Purchase 12 new tables and 44 units of chairs
- Baking utensils like graters, peelers, and strainers
- Buy crockery, 2 new ovens, 3 stoves, racks, and work tables
- Two Air Conditions
- High-speed Wi-Fi service, and telephone line
Finance Plan And Implementation Plan
The financial plan and implementation plan of the bakery are described below.
Financing Of The Business
The financing of the business includes investment that will be required for starting the business. It gives an overview of the cost that will occur in all business operations during the first year of the business. (Leach & Melicher, 2016)
The Honey Treats is not just a bakery but also a company so $150,000 is required for initial investment. Initially, Mr. John will invest $75,000, Mr. Robert’s capital is $45,000, and capital of Mr. Bush is $30,000. Further investment will be made after analyzing situation and growth of the business. The financial plan will also cover current interest rate, future interest rate, and other taxes.
All business partners will invest their own capital so bank assistance will not be required in financial matters. However, if financial help will become necessary then the director of the bakery will determine financial needs for the business. The director will decide the period of the bank assistance. There are different ways that can be used for bank assistance and some of those methods are discussed subsequent,
- If the bakery will need long-term financial assistance, the shareholders will consider taking bank loans. The type of the loan will be selected after bank assistance and mutual understanding.
- If a small amount of cash will be required, the business partners can consider overdraft from the bank. They can also consider other sources of finance.
Income And Expenses
The income and expenses of “The Honey Treats” have calculated after market research. Partners have also assumed the cost on the basis of their experience. We assume that economy will be stable and there will be no change in rules and regulations. Therefore, income and expenditures will remain same for the first month. The increase in cost or inflation will be not taken into account. The standard tax rate of the USA will be applied and annual depreciation will be calculated according to default depreciation method. (Murray, 2016)
Distribution And Profits
All partners will distribute profit according to their capital and initial investment. Therefore, Mr. John will get a major portion of profit, while Mr. Robert and Mr. Bush will get profit as per their capital ratio.
The break-even value for the bakery is $1325, while the net profit and non-current cost for the first year are $402 and $3212 respectively. The net-profit margin will be 35.32% and the gross profit will be 51.23%.
The bakery business will be implemented according to the written plan. All tasks will be completed according to the 2017 plan.
The business plan we have made for the Honey Treat dessert bakery will work and the plan will be successful in the future, as there is the analysis from all business perspective, however, the calculations show that plan can be successful and give profit in few years.
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