Business Plan

Sai cake house

By: (sec 1710)

NISHA MOZA (52)

DHRUV DHAWAN (49)

GAGAN MAAN (50)

AMANINDER SINGH BAJWA (51)

PLAN OUTLINE

1)Executive Summary

2)Description of Venture

3)Market Analysis Summary

4)Promotion & strategy Summary

5)Organisational Plan

6)Operational Plan

7)Technology Plan

8)Financial Plan

Executive Summary
Introduction
SAI CAKE HOUSE is a start-up cake and bakery retail establishment located in Moga
district in Punjab. Sai cake house expects to catch the interest of a regular loyal customer
base with its broad variety of coffee and pastry products. The company plans to build a strong
market position in the town, due to the partners' industry experience and mild competitive
climate in the area.

SAI CAKE HOUSE aim to offer its products at a competitive price to meet the demand of
the middle-to higher-income local market area residents.

About the Ownership

SAI CAKE HOUSE is equally owned and managed by its four partners. Ms Nisha Moza is
acting as operations manager, Dhruv Dhawan will be acting as Financial manager,
Amaninder Bajwa acting as Marketing manager, Gagan Singh Maan act as HR manager.

The firm intends to hire two full-time pastry bakers and three part-time baristas to handle
customer service and day to day operations.
Products and Services
SAI CAKE HOUSE offers a broad range of cakes & pastries. Sai cake house caters to all of
its customers by providing each customer with best quality products made to suit the
customer, down to the smallest detail.

The bakery provides freshly prepared bakery and pastry products at all times during business
operations. Three to four moderate batches of bakery and pastry products are prepared during
the day to assure fresh baked goods are always available. We are also providing our
customers with coffee.

PRODUCTS

Simple cake
Anniversary cake
Birthday special cake
Black forest cake
Carrot cake
Multi color cake
Chocolate orange frost cake
Cheese pizza muffins
Chocolate Brownies
Masala patties
Mushroom patties
Sai special cheese patties
Black forest pastries
Chocolate pastries
Pineapple pastries
Vanilla pastries

The Market
SAI CAKE HOUSE wants to establish a large regular customer base, and will therefore
concentrate its business and marketing on local residents, which will be the dominant target
market. This will establish a healthy, consistent revenue base to ensure stability of the
business. Personal and expedient customer service at a competitive price is key to
maintaining the local market share of this target market.

Financial Considerations
SAI CAKE HOUSE expects to raise 15 lakh of its own capital. This provides the bulk of the
current financing required.

SAI CAKE HOUSE anticipates sales of about 400,000 in the first year, 600,000 in the second
year, and in the 800,000third year of the plan. SAI CAKE HOUSE should break even by the
ninth month of its operation as it steadily increases its sales. Profits for this time period are
expected to be approximately 80,000 in year 1, 1,50,000 by year 2, and 2,30,000 by year 3.
The company does not anticipate any cash flow problems.

Vision
Our vision is to become No. 1 cake house in Northern India.

1.1 Mission
SAI CAKE HOUSE aims to offer high quality cake and pastry products at a competitive
price to meet the demand of the middle- to higher-income local market area residents.

1.2 Keys to Success

Keys to success for SAI CAKE HOUSE will include:

1. Providing the highest quality product with personal customer service.

2. Competitive pricing.

Description of venture
SAI CAKE HOUSE is a cake, pastries & bakery shop managed by four partners. These
partners represent sales and finance/administration areas, respectively. The partners will
provide funding from their own savings, which will cover start-up expenses and provide a
financial cushion for the first months of operation. The company plans to build a strong
market position in the town, due to the partners' industry experience and mild competitive
climate in the area.

Company Ownership

SAI CAKE HOUSE is a partnership firm. It is equally owned by its four partners.

Start-up Summary

SAI CAKE HOUSE is a start-up partnership firm. Financing will come from the four
partners. The following chart and table illustrate the company's projected initial start-up
costs.

Market Analysis Summary

SAI CAKE HOUSE focus is on meeting the demand of a regular local resident customer
base.

Market Segmentation
SAI CAKE HOUSE focuses on the middle- and upper-income markets. These
market segments consume the majority of cake & bakery products.

Market Analysis

SAI CAKE HOUSE wants to establish a large regular customer base. This will establish a
healthy, consistent revenue base to ensure stability of the business.
Target Market Segment Strategy

The dominant target market for SAI CAKE HOUSE is a regular stream of local residents.
Personal and expedient customer service at a competitive price is key to maintaining the local
market share of this target market.

Market Needs
As we are opening our shop in Moga district where there are no good quality distributers of
cakes & bakery . So people of moga need some best products & our shop will cater to their
needs. We are also offering coffee of best quality to our customers.

Service Business Analysis

Despite low competition in the immediate area, SAI CAKE HOUSE will position itself as a
place where customers can enjoy with a fresh pastry & a cup of delicious coffee in a relaxing
environment.

Competition and Buying Patterns

Competition in the local area is somewhat sparse and does not provide nearly the level of
product quality and customer service as SAI CAKE HOUSE. Local customers are looking for
a high quality product in a relaxing atmosphere. They desire a unique, classy experience.
People in Moga do not have a choice except to have products of low quality. But after we
will open our shop they will have what they deserve.

Promotion and Strategy Summary

SAI CAKE HOUSE will succeed by offering consumers high quality cakes, pastries &
bakery products with personal service at a competitive price. We will be promoting our cake
house through advertisements in local newspapers twice in a month. We will be distributing
pamphlets in local market once in a week to position our shop in their minds. We will be
using hoarding in front of the shop so that it is visible from a long distance. We will set up
banners to position our shop in customers minds as when they will see it more times it will
position our shop in the minds. We will be providing free home deliveries for first 100
customers. We will be offering gifts to those for shopping above Rs 500.

Competitive Edge

SAI CAKE HOUSE’s competitive edge is the relatively low level of competition in the local
area in this particular niche.

Sales Strategy

SAI CAKE HOUSE anticipates sales of about 400,000 in the first year, 600,000 in the
second year, and 8,00,000 in the third year of the plan. These estimates is on the survey
basis.

Organisational Plan
We are having partnership firm with equal share in the business. Mr. Amaninder Singh Bajwa
has extensive experience in sales, marketing, and management. Mr. Dhruv Dhawan brings
experience in the area of finance and administration, including  Ms Nisha Moza as
Operations Manager, Mr. Gagan Singh Mann will be responsible for recruitment for the shop.

We will be hiring two full-time pastry bakers and three part-time baristas to handle customer
service and day to day operations & one cleaner . They are directly answerable to Ms Nisha
Moza & Mr Gagan Maan. Two full time bakers will work from 12 a.m to 10 p.m. part time
employees will work in shifts from 10a.m to 3 p.m & 4 p.m to 10 p.m.

Operational Plan

Our production will start production in the evening from 6 to 10 as per the demand.
Production of cakes will be done on alternate days & on the order basis . we will using high
technology microwaves, ovens, refrigerators & baking machines which will save our time . if
there happens that all our cakes are not sold, we will use that cakes to make bread rusk by
baking them slightly more. If the quantity is small we can distribute them among the workers
& our vendors to promote our products. It is for one month only as we need to estimate our
sales per day so that production can be limited to demand so that there are no wastages.
We be keeping inventories of following items :

 flour

 sugar

 butter

 baking soda

 Dry active Yeast

 Salt

 Vegetable oil

 Presevatives

Replenishment of inventory:

 On analysing sales of every month.

 As per seasonal demand like New Year, Valentine’s Day.

Technology plan:

We will be using high technology equipments to make our products. As by using new
technology enhances the speed of production. It saves time also so that quick & prompt
service is provided. It also lesses manpower used for making products. We will be using
1 baking machine , 2 microwaves , 1 refrigerators & baking equipments for production.
 Bakery machine

REFRIGERATOR

MICROWAVE

Financial Plan:

As we have Rs.1,50,00,00 budget & each of the four partners have contributed Rs.3,75,000.
No loan has been taken from bank or any other financial institution. We have taken one big
shop on lease , area of which is 2000 sq ft. We have also hired five persons who have
experience in manufacturing of bakery products. We are having Rs 2,50,000 cash in hand as
reserves for contingencies. Our working capital is 1,75,150.

Commodity Rate (Rs) Quantity Total(per year)

Shop on lease 7500 per month 2000 sq ft 90,000

Security(for shop) 200,000 2,00,000

Salary per month

(Full time) 5000 2 1,20,000
(Part time) 2500 2 60,000
(Cleaner) 1500 1 18,000

Computer 21,000 1 21,000

(with printer)

Water cooler 5000 1 5000

3000 1 3000
Desk & chair

Generator 35,000 1 35,000

desks 450 2 900

Small serving tables 650 3 1950

A.C 20,000 1 20,000

Fire Extinguisher 3000 2 6000

Machinery
(baking machine) 70,000 1 70000
(microwave) 35,000 2 70000
(refrigerators) 70,000 1 70000

Coffee Machine 15000 1 15,000

Interiors & 50,000 50,000

decoration

Raw material 10,000 1,20,000

 94,000
n newspaper 6000
1000
10,000

TOTAL 10,74,850