MANNA

BAKERY
Business Plan &
Cash Flow Forecast
PLAN
1. Company Summary
a. Objectives
b. Mission
c. Company Ownership

2. Market Analysis

3. Industry Analysis

4. Products

5. Strategy & Implementation

A. Sales Strategy
B. Sales Forecast

6. Management/Executive

7. Finance – Cash Flow Forecast

A. Start-up Summary
B. Personnel Financial Plan
C. Remuneration
D. Projected Cash flow estimate
COMPANY SUMMARY
MANNA BAKERY will be located in downtown KUBWA in Abuja the Federal Capital Territory.
Kubwa is very popular destination and has a high population density. The district is also a
location of all major banks in the country, a major hospital, and several hotels. Kbuwa is a
prime location and residence for most of the employees of the nearby district businesses.
The bakery will sell different varieties of Bread and other health specific breads, pastries,
cakes to the area and other surrounding communities and districts six days a week Monday
through Saturday. The close proximity of Kubwa to the major districts makes it an ideal
location for a new enterprise or business.

OBJECTIVES

Our main objective is to establish a first class bakery and patisserie with a café in the
storefront.

We hope to develop the strong presence in the community needed to support our sales
goals.

It is our goal to develop our products by rolling them out gradually in the first year of
operation.

MISSION

It is our mission to make MANNA BAKERY a cornerstone in the community by creating a

neighbourhood atmosphere where customers feel comfortable and become instant
regulars. We are sensitive to the needs of the often overlooked population of health
conscious eaters, dieters and people with fat or weight problems. We will cater for their
needs for healthy, delicious baked goods. We seek fair and responsible profit, enough to
keep the company financially healthy for the long term and to fairly compensate owners
and investors for their money and risk.

COMPANY OWNERSHIP

MANNA BAKERY is owned by Chiedozie Agwu, Ifeoma Agwu and Onyinye Chiedozie Agwu.
Eventually, as the company becomes established, MANNA BAKERY will be trading as Indulge
Global Services Ltd, Which will be the parent company of MANNA BAKERY.

Indulge Global Services Ltd is a registered limited liability company with Corporate Affairs
Commission of Federal Republic of Nigeria on Twenty-Eight day of September, 2009.

RC: 846659.

TIN: 11101026-0001.
MARKET ANALYSIS

Our target market includes people who are health conscious and/or have common food
allergies. This is a niche market since there is currently no bakery in Abuja who caters to
these needs.

A. Market Survey: We conducted a market research/survey around kubwa and its

environs. Our survey was done using the traditional method of questions and
response. A diverse group of 100 respondents were picked at random for the survey.
The purpose and goal of the research was to determine the need for the
establishment of a new bakery, competitiveness and the desire of the residents to
have one.
Our findings and results of the survey were encouraging. 75% of the respondents
said there is a need to have a new bakery in the area. 68% said the provision of
health conscious products was its main attraction while another 80% felt that the
current bakery was grossly inadequate as it is only an outlet. They were particularly
fascinated by the fact that the new bakery will produce and sell on site thereby
affording them the opportunity of daily fresh products.
The survey result proved our assertion that a new bakery is needed in Kubwa.
B. Diet Group: For health reasons, many people are warned off certain food by their
doctors because of high cholesterol and blood pressure. According to the World
Health Organisation, the main killer in the US and other third world countries is
Heart Disease. More recently people aged 50+ are going on special diets to prevent
heart and other diseases. Our provision of health conscious products like High Fibre
Bread and wholemeal baked products will help to decrease the scourge of heart
disease and reduce untimely deaths.
C. The Allergy Group: One in ten people suffer from a common food allergy and most
of it is related to food products, however most bakeries do not cater to their needs.

Target Market Segment

While our target market is the entire population of Kubwa and its environs, we will also
focus on the allergy group, the diet group and health conscious individuals since they are
likely to be the most prevalent and steady customers due to the unique nature of our
products and its non-availability elsewhere.
INDUSTRY ANALYSIS

MANNA BAKERY competes in the Food Industry which is highly saturated. In addition to
competing with other bakeries, it competes with all restaurants, delis and supermarkets for
a share of its bread and baked products. We are mostly concerned with competitors who
differentiate their products and services with a healthy option focus. Because this group of
bakeries is virtually non-existent in our target area of operation, MANNA BAKERY will stand
out as a unique entity.

Competition

Currently, there is only one bakery in kubwa. The Oceanic Bakers

Strengths: They only make and sell bread alone. They are a well-established bakery in town;
they sell and supplies breads to local shops and the general population in Kubwa and its
environs

Weaknesses: They are only an outlet of a bakery situated elsewhere, and do not provide a
wide variety of products and definitely do not provide health conscious products and baked
goods. They sell their bread, Chin Chin and Meat Pie .The texture and flavour of their bread
is very dense and flavourless according to our survey respondents. We plan on using high
quality white flour which has a texture and flavour similar to wheat. Conclusion: They are
not considered a major competitor

PRODUCTS
MANNA BAKERY will provide non gluten and baked goods and pastries to diet, health
conscious consumers and the general populace of Kubwa and its environs. Special
considerations will be made for all common food allergies. We also intend to introduce
Cassava Flour Bread.

Example of goods: Bread, Muffins and Pastries

Honey Bread, Coconut Bread, Fish Bread, Banana Bread, and our Special Milk, Butter and
Fruit Bread. Cakes & Special Items

Wedding and Birthday Cakes, Fruit and Chocolate cakes,

Spelt Breads, Muffins and Pastries.

Spelt flour is the most common wheat – alternative flour as it has the same characteristics
as wheat which provides similar taste, consistency and behaviours creating goods that are
just as good as any wheat baked which provides similar taste, consistency and behaviours
creating goods that are just as good as any wheat baked good. We will also try dairy free
muffins and pastries as well as egg free breads.
STRATEGY & IMPLEMENTATION

Our strategy will focus on serving the general populace and a niche market with quality
goods. Our primary aim is to become the best bakery in Abuja. We are determined to
become part of the community – an establishment that becomes as much of the community
as a church or local grocery store. To achieve these goals we will provide the following

*Quality baked goods for everyone to enjoy at a fair price

*Friendly, neighbourhood feel atmosphere

*Special diet menus in relation to the advice of doctors and other healthcare providers.

A. Sales Strategy

Our Strategy focuses on building a customer base by providing good customer experience.
With the addition of the café bar and lunch menu in the next few months, we hope to have
customers make the bakery their one stop destination for breakfast or lunch. We hope to
advertise the bakery in local newspapers and radio stations. We will also consider the
distribution of flyers/Leaflets in the neighbourhood. Part of our strategy also includes a test
lunch for five days serving customers free bread and other pastries, a road show around
Kubwa and its surrounding thereby creating awareness of our opening date.

We will employ sales representatives on a performance related payment to visit Schools,

Prisons, Hotels and Restaurants to inform them of our presence and products.

B .Sales Forecast

Our sales forecast assumes the following changes:

*Bread and other product sales will be slightly higher during the non-rainy season since
more people will be outdoors.

*Bread and pastry sales will be higher in Easter, December, Eid Kabir because of food
oriented holidays.

* We anticipate constant sales of Iced Beverages all year round especially during the dry
sunny months

*We expect a huge volume mostly on weekends when people are at home.
SALES FORECAST
Year 1 Year 2 Year 3

Sales

Breads N12, 000, 000 N16, 000,000 N21, 000,000

Beverages N6, 000,000 N8, 000,000 N10, 500,000

Snacks/Sandwiches- N8, 000,000 N10, 400,000 N14, 000,000

Total Sales N26, 000,000 N34, 400,000 N45, 500,000

Direct Cost of Sales

Year 1 Year 2 Year 3

Breads N3, 000, 000 N4, 500,000 N6, 500,000

Beverages N2, 000,000 N2, 666,000 N3, 333,000

Snacks/Sandwiches- N1, 600,000 N2, 400,000 N2, 800,000

Total Direct cost of Sales N6, 600,000 N9, 566,000 N12, 333,000
MANAGEMENT & EXECUTIVE
Management& Staff List:

A. Chiedozie Agwu – Chairman/CEO

B. Ifeoma Fernandez-Agwu Managing Director

C. Onyinye Chiedozie Director

D. Victoria Aru – General Manager

D. Emmanuel Ekett – Master Baker

E. Charles Ogbonna – Assistant Baker

F.Blessing Madu – Sales Executive

G. Paul William – Driver

H. O. Mahmud - Security Officer

We recognize the importance of good and experienced management; we have therefore

assembled a storm management team. The team is led by Ifeoma Chiedozie Agwu. Ifeoma
comes to MANNA BAKERY with over 15 years’ experience in management. In addition to her
industry specific experience, she has been a Director of a security outfit in the UK for over
10 years with her husband Mr Chiedozie Agwu.

Ifeoma has a wealth of experience as she has a higher diploma in catering and hotel
management. She worked in Lagos Sheraton Hotel, British Telecommunications restaurant
in London, The Guardian News papers restaurant in London etc.

Mr Emmanuel Eket our chief baker has over 15 years of baking experience. He has worked
in Eko Holiday Inn in Lagos as an assistant baker; he worked in Shoprite Lagos and other
reputable establishments to mention a few. Charles Ogbonna the assistant baker has over
10 years’ experience in the industry. Our amiable General Manager Victoria Aru will lead the
marketing efforts having participated in the sales management of Indulge Boutique a high
brow clothes shop in Abuja.

MANNA BAKERY is an exciting opportunity that combines fresh baked goods and healthy
option products addressing the recent need for these new products. Demand for these
products is expected to grow exponentially as medical doctors and health professionals
become more and more aware of food allergies Nigerians are afflicted with. Profitability is
forecasted to occur by month 3. Through a combination of strong management team, a
solid business model, and exciting market demanded products will allow Manna Bakery to
quickly gain market penetration and cash richness.
PERSONNEL FINANCE PLAN
Once the bakery becomes established and the cash flow is steady, we would like to hire one
person for counter help and another assistant baker.

The table below illustrates the needs of current employees within three months of
operation.

Personnel Financial Plan

Year 1 Year2 Year3

Ifeoma Fernandez Director N1, 200,000 N1, 450,000 N1, 600,000

Chiedozie Agwu Director N1, 800,000 N2, 000,000 N2, 250,000

Emman Eket Chief Baker N600, 000 N700, 000 N800, 000

Charles Ogbonna Asst Baker N480, 000 N550, 000 N650, 000

Blessing Madu Sales Exect N240, 000 N290, 000 N365, 000

Paul William Driver N420, 000 N480, 000 N580, 000

O. Mamudu Security N216, 000 N246, 000 N296, 000

Victoria Aru Gen Manager N660, 000 N735, 000 N850, 000

Total People 8 8 8

Total Payroll N5, 616,000 N6, 451,000 N7, 391,000

FINANCE
Start Up Summary:

The primary expense to establish Manna Bakery is N10, 000,000. This cost is calculated on
the N5, 000,000 loan estimate and N5, 000,000 owners capital investment. Chiedozie Agwu
and Ifeoma Agwu intend to invest N5, 000,000 of their savings to cover the other cost of
start-up. This amount represents the owner’s investment.

Start Up

Requirements

Start-up Expenses

Legal N50, 000

Stationary etc. N10, 000

Brochures N25, 000

Consultants N0.00

Insurance N50, 000

Mortgage N0.00

Research & Development N0.00

Bakery Ingredients N100, 000

Other N10, 000

Total Start Up Expenses N245, 000

Start-up Assets

Cash Required N5, 000,000

Other Current Assets N0.00

Long Term Assets N5, 000, 000

Total Assets N10, 000,000

Total Requirements N10, 245,000

Start Up Funding

Start Up Expenses to Fund N245, 000

Start-up Assets to Fund N5, 000,000

Total Funding Required N5, 245,000

Assets

Non Cash Assets from Start up N5, 000,000

Cash Requirements from Start-up N5, 000,000

Additional Cash Raised N0.00

Cash Balance on Starting Day N5, 000,000

Total Assets N10, 000,000

Liabilities and Capital

Liabilities

Current Borrowing N0.00

Long term Liabilities N5, 000,000

Accounts Payable (Outstanding Bills) N0.00

Other Current Liabilities (Interest Free) N245, 000

Total Liabilities N5, 245,000

Capital - Planned Investment

Untied N0.00

Chiedozie Agwu N5, 000,000

Other N0.00

Additional Investment Required N0.00

Total Planned Investment N5, 000,000

Loss at Start up (Start-up Expenses N245, 000

Total Capital N4, 755,000

Total Capital and Liabilities N5, 245,000

Total Funding N10, 245,000

CASH FLOW FORECAST

Ratio Analysis
YEAR 1 YEAR 2 YEAR 3
Sales Growth 0.00% 30% 75%
Percent of Total Assets
Total Current Assets 15.14% 25.5% 39.4%
Long Term Assets 84..86% 79,90% 60.06%
Total Assets 15.4% 25.195 39.94%
Long Term Assets 84.86% 74.90% 60.06%
Total Assets 100% 100% 100%
Current Liabilities 12.98% 12.08% 11.07%
Long Term Liabilities 98.58% 89.19% 74.23%
Total Liabilities 96.59% 89.19% 74.23%
Net Worth 1.41% 10.81% 25.77%
Percent of Sales
Sales 100% 100% 100%
Gross Margin 64.14% 75% 100%
Gen Admin Expenses 64.14% 57.51% 52.56%
Advertising Expenses 4.13% 3.70% 52.56%
Profit Before Interest& 35.00% 50%% 75.00%
Taxes
Ratios
Current 1.17% 2.08% 3.61%
Debts to Total Assets 98.59% 89.18% 74.23%
Pre Tax on Net Worth 10.28% 117.61% 88.05%
Pre Tax Return Assets 0.15% 12.71% 22.69%
Net Profit Margin 0.10% 30% 75%
Return on Equity 26.84% 88.20% 65.67%
Activity Ratios
Accts Payable Turnover 10.00% 12.17% 12.17%
Payment Days 27 30 45
Total Assets Turnover 27 29 27
Debt Ratios
Debt to Net Worth 69.68 8.25 2.88
Current Liab to Liability 0.13 0.14 0.15
Liquidity Ratios
Net Working Capital N5,000,000 N6,500.000 N8,750,000
Interest Coverage 1.02 2.94 5.23
Additional Ratios
Assets to Sales 1.02 2.94 5.23
Current Debt Total 13% 12% 115
Assets
Acid Test 1.17% 2.08 3.61
Sales Net Worth 88.03 75% 125
Dividend Pay Out 0.00 0.00 0.00
PRO FORMA CASH FLOW
YEAR 1 YEAR2 YEAR 3
Cash Received
Cash From Operations
Cash Sales N26,000,000 N34,000,0000 N45,500,000
Sub Total Cash from
Operations N26,000,000 N34,000,000 N45,500,00
Additional Cash Rcvd
Sales Tax,VAT Received N0.00 N0.00 N0.00
Current Borrowing N0.00 N0.00 N0.00
Other Liabilities N0.00 N0.00 N0.00
Long Term Liabilities N0.00 N0.00 N0.00
Sales of Current Assets N0.00 N0.00 N0.00
Sales Long Term Assets N0.00 N0.00 N0.00
New Investment Rcvd N0.00 N0.00 N0.00
Sub Total Cash Rcvd N26,000.000 N34,000,000 N45,500,000
EXPENDITURES
Expenditures from Ops
Cost of Production N6,600,000 N9,566,000 N12,333,000
Salaries N5,616,000 N6,451,000 N7,391,000
Sub Total on Operation N12,216,000 N16,017,000 N19,724,000
Additional Cash Spent
Sales Tax,VAT Paid Out N0.00 N0.00 N0.00
Principal Repayment of
Current Borrowing N1,666,000 N1,666,000 N1,666,000
Other Liabilities Paymt N0.00 N0.00 N0.00
Long Term Payments N0.00 N0.00 N0.00
Purchase Other
Current Assets N0.00 N0.00 N0.00
Assets Long Term
Purchase N5,000,000 N.00 N0.00
Dividends N0.00 N0.00 N0.00
SUB TOTAL CASH N18,000,000 N17,683,666 N21,390,666