Executive Summary

Name Of Business: Caitlins Bakery

Name of Owner: Caitlin Piltie
Business Address: La-Fargue Choiseul
Capital Invested: $20,000
Source of Capital: A Loan from the Choiseul Credit Union and a loan from family members.
Type of Business: Sole Trader
Number of Employees: Six Employees

Table of Contents
Page
Acknowledgement

Profile 1

Description of the business

The Objectives Of Caitlins Bakery

Role of the Entrepreneur

Use of Technology

Potential for Growth (Internal)

Profile 2

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Justification of Location

11

Selection of Appropriate Labour

12

Sources of Fixed and Working Capital

13

Types of Production

14

Level (Scale) Of Production

Quality Control Measures

15
16

Linkages

17

Profile 3

18

Potential for Growth (External)

Government Regulations

19
20

Ethical Issues

21

Bibliography

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Appendix

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Acknowledgement
Various persons need to be thanked for their assistance and support of completion of my
Principles of Business SBA. Firstly, I would like to thank my Principles of Business teacher
for his guidance and suggestions. Secondly, I would like to thank my homeroom sponsor Mrs
Dalsou who gave me advice throughout this SBA.

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Description of Business.
The legal structure of my business is a sole trader with unlimited liability. As a sole trader of
Caitlins Bakery I have complete ownership and responsibility of managing my business. I
have no obligation to share the profits with others and all debts incurred by the business are
my responsibility. As the owner I will know my staff and customers individually so can I
vary the hours of work to suit the customers.
The products we will be producing are fresh bread and cakes. In my community many young
people are unemployed and establishing my business will provide job opportunities for those
who are able to meet the requirements.
Caitlins Bakery will be involved in the Secondary industry because we need ingredients or
raw materials produced by the primary industry and then we make the finish goods in order to
sell them to the general public which constitutes tertiary industry.
My business will be useful because it will be producing good quality products and its location
more convenient for the people in my community. I will constantly check out customer needs
that my competitors are lacking and try my best to satisfy them.
My business must be safe for my employees and customers, so there are some legal steps to
be taken. My business name has to be registered in order to attain a food handlers permit so
that my firm can sell products without my customers being concerned about their health.

The Objectives of Caitlins Bakery Are:

1. To produce good quality bread and cakes.
2. To provide employment and enable employees to use their skills well to improve the
production process.
Mission Statement
At Caitlins Bakery my employees and I are committed to providing our customers with
freshly baked bread and cakes with high quality customer service and a pleasant working
environment.

Role of the Entrepreneur

My main role as an entrepreneur is to ensure I am very responsible in the decisions I make for
the business. I also have to set a vision for the business and ensure all the long-term and
short-term goals are achieved.
As the organizing entrepreneur I will have six employees at the beginning. I will inform the
employees of the firms policies which must be obeyed. The employees will supervised in
production by ensuring they know what to produce, how to produce them and how to use the
machines. In addition to that, as the entrepreneur I will also familiarize myself with the
machinery and tools to make my business more effective.
The money spent in the business will be borrowed from the Choiseul Credit Union in the
form of a loan. This money will be used to purchase the machinery and utensils.
Additional capital will be obtained from a relative. The relative will be paid back when the
business is self-sustaining. I realize as the entrepreneur I am taking the risk by investing the
money borrowed into capital investment for my bakery.
Development of commercial enterprises in the community by providing work and improving
life for the people in the community. Also providing items (bread/cakes) that improve the
quality of life.

Use of Technology
I will purchase a cake mixer to ensure the production of cakes is efficient. The machine will
be used to combine ingredients to make the cake batter. The machine will be faster than hand
mixing which will save time.
A computer will also be purchased in order to do a number of things. Firstly I can keep a
record of my accounts. Secondly I can keep stock records for my ingredients. Thirdly I can
research new recipes for cakes on the internet. The computer will be used to create accounts
instantly and allow quick access to the accounts. It will also assist in communication with
suppliers.

Potential for Growth

Internal
My business can experience internal growth, by increasing its level of sales through better
use of its assets. Advertising can be used to increase sales. Profits will be used to purchase
better quality equipment for the business. There will be a need to hire more people who meet
the job requirements for greater efficiency in production.
My bakery will start off with the basic range of bread and cakes. Once established I can
develop a wider range of bread and cakes in addition to developing related sales. For
instance, I could also tuna, cheese, tin meats and a range of soft and fruit drinks.
As the manager I will be able to work more hours and produce more each day as well as
monitor the internal growth to ensure the assets are not strained beyond their capabilities.

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Justification for Location

Caitlins Bakery will be located opposite the Choiseul Secondary School in La-Fargue.

Availability of Labour
There is a high rate of youth unemployment in La-Fargue. La-Fargue has one of the biggest
populations in the district of Choiseul. Along with the $750 students at the Choiseul
Secondary School I have a potential large customer base. There is a high rate of
unemployment in my community and my bakery will enable them to get work within their
community. The bakery will be in there community so they wont have to spend money of
transportation. This is especially convenient for working unusual hours.
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Availability of Land
I will not have to spend money on purchasing land because the location of my bakery belongs
to my family. They are generous enough to allow me to use it without any cost.

Availability of Infrastructure
My bakery will be in an area where there is proper infrastructure. There are proper roads,
water and electrical facilities. It is very close to the main road linking Soufriere with VieuxFort. It is located close to the main road for passing trade competition. There is only one
other bakery In La-Fargue so competition is not that intense. This is why it is very convenient
to set up my business in La-Fargue Choiseul because there is need for another bakery.

Access to Raw Materials

Finally, the raw materials I need are easily delivered from Soufriere or Vieux-Fort as the
bakery is conveniently located on the main road.

Selection of Appropriate Labour

I will require semi-skilled, skilled and unskilled workers to operate my business. I will
commence by employing six persons. Two workers will be skilled, two will be semi-skilled
and two will be unskilled. The two skilled workers will be bakers who will have the
appropriate qualifications. One will work the morning shift and the other the afternoon shift

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The skilled workers will be involved in the manufacturing process of making the cakes and
bread. Their job is to mix ingredients to make new cakes. They will require knowledge in
Food and Nutrition and a baker certificate.
Two of the semi-skilled workers will be serving the customers in the bakery. They will work
eight hour shift. One will work from 6a.m. till 2p.m. and the other worker will work from
12p.m. to 8p.m.
The first unskilled worker will be responsible for cleaning the bakery, and maintaining a
hygienic working environment and the second unskilled worker will be assisting the bakers in
baking the bread and cakes.
As the owner and manager of the business I will be overseeing all the employees.

Sources of Fixed Capital and Working Capital

Sources of Fixed Capital for Caitlins Bakery will be:
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1. A plot of land which I already own to accommodate my building for business

operations.
2. Fixed Assets purchased with a loan of $20,000 from the credit union. These include
the equipment, utensils and the shop fittings. The loan is being taken out for six years
and will be paying it back at an interest rate of 12% per annum.
Working Capital for my business will be funding the day to day operations. These include
paying workers, buying raw materials and paying utilities. I will use the loan from my
relative to fund working capital. $600 will used for paying bills including gas, electricity,
water and telephone. The skilled workers would be paid $1250, semi-skilled workers would
be paid $750 and the unskilled workers will be paid $500. The total amount for wages would
be $2500.

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Type of Production
Caitlins bakery will be using secondary production. Raw materials will be processed into the
finish products which are cakes and bread. We will be using batch production to make the
bread and cakes. The bakery will be producing 100 loaves, 500 small loaves and 10 cakes
twice daily. (Every morning/every afternoon) Production will depend on demand. However,
once established demand plus production will level out.

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Level (Scale) of Production

Caitlins bakery will be operating on a small scale (domestic consumption) of production. My
firm will be providing items for customers in La-Fargue as well as the surrounding
communities. My firm will produce at least 10 large cakes and 250 loaves of bread a day and
from a day will we increase these figures based on daily demand. I decided to engage in this
level of production because my firm is small. My firm will be providing enough cakes for the
people of La-Fargue Choiseul. I am involved in small scale production for domestic
consumption, providing bread and cakes for the local communities.

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Quality Control Measures

I will ensure that my bakery is promoting a positive image. I will employ qualified and
experienced individuals. Proper recruitment and training will lead to effective operation of
machines in my business. Training manuals will be produced by me to ensure proper
guidelines are followed in the preparation of the bread and cakes.
I will use precise measurements of raw materials using standard measuring equipment to
make the product.
The machinery will be serviced every month to ensure they are not faulty. I will assure that
the quality is persistently accomplished by administering and making convincing comments
when employees are producing cakes and bread.
Goods will be checked for freshness, composition and taste from start to finish throughout the
baking process.

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Linkages
Local suppliers and wholesalers will be providing the raw materials needed for the
production process. This is a backward linkage.
Therefore my business will engage in forward linkages by selling my bread and cakes in large
quantities in local supermarkets and hotels. A benefit of this linkage is that my firm will be
receiving the raw materials needed to manufacture my product.

Suppliers
Famers

Bakery

Backward
Linkage

Customers
Clients

Forward
Linkage

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Potential for Growth

External
I will expand my business by opening more stores in the country (Vieux-Fort/Soufriere) and
selling more products to local supermarkets and hotels. Expanding my business will allow me
to earn higher income.
Secondly, I will expand my business by opening a caf as part of the bakery. Along with my
bread and cakes I will sell coffee/tea/juice.

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Government Regulations
In order for my business to operate effectively, some regulations have to be met. Caitlins
Bakery will be paying National Insurance on behalf of the employees. This will benefit the
employees by providing compensation if they are sick or at retirement age.
A Health Certificate must be owned by both the employer and the employees as employees
are handling fresh foods. This food handling certificate is recommended.

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Ethical Issues
The ethical issues in my business include concerns of quality value and honesty. I will ensure
my business is honest about what products and services are in relation to their origin and
price. During the production process, I will ensure that the cake and bread ingredients are not
spoil before use.
I will use some of the money I have to support worthy causes in the community. The business
will give donations to support and develop people and groups in the society.

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Bibliography

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Appendix
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