Running Head: Final Project: Fais Dough-Dough Business Bakery Plan 1

Fais Dough- Dough Bakery

Business Plan
Nakita Lambert
OL-317: Small Business Management
Professor Dilligard
Southern New Hampshire University
Fais Dough-Dough Bakery Business Plan 2

Executive Summary:
Fais Dough- Dough is a bakery that will provide its customers with quality sweet treats

that add just the right amount of sugar because sometimes life can throw us too much spice. Our

bakery will have a variety of sweet treats ranging from cookies, to cakes, to seasonal and

traditional Louisianan deserts. The bakery is a life-long dream of me, the baker, Nakita Lambert,

and I have been baking since the age of 13 and I am one of two owners in the business. Brandon

Lambert, my husband is the second owner. Fais Dough-Dough is a play on a Cajun phrase “Fais

Do Do” which is a Cajun dance party. We, the owners picked this name as the business is located

in Southwest Louisiana in the town of Lake Charles. A vast majority of the population is Cajun

or of Cajun descent and we wanted to reach them on a personal level. We also agreed on this

name as our sweet treats will have our customers taste buds dancing all night long.

Our Highlight product is our take and bake dough. Which is pre-made cookie dough that

customers will be able to purchase and take, and then bake at home. We realized that this was a

market that has the potential to be profitable for our bakery while meeting the needs of our

clientele. By making fresh cookie dough locally our customers no longer will need to purchase

store bough pre-made cookie dough that has additives, and preservatives in it. This meets the

need of providing healthier options for our customers. We also plan to offer items that are Gluten

Free and Vegan friendly allowing ourselves a larger target market than your traditional bakery.

We decided to go this route as our area is very limited in resources available outside of your

traditional chain stores. We also plan to offer local Louisianan desserts as specials throughout the

year when they are normally not available. The overall business idea came from my love of

baking and fulfilling a need that people don’t necessarily realize is there.” (Lambert, N., 2020)
Fais Dough-Dough Bakery Business Plan 3

Starting up within our home the bakery will be an LLC and has plans to expand into a

commercial location within the second to third year of operation. Creating the bakery as an LLC

in lieu of a partnership the owners are able to better protect their personal assets while still

maintaining the tax benefits of a partnership. The funding for Fais Dough-Dough is from

multiple reliable sources. The first being the owner’s investment of $10,000 of personal savings,

while the second will consist of a loan from the Small Business Administration (SBA) to cover

the remainder of our start-up costs. While the business has what it needs to start the additional

funding will be utilized to purchase additional equipment which will be needed to meet the needs

and demands of our customer base. These are the options that we the owners feel best serve our

business plan and help us to achieve our overall goal of being a self-sustaining business during

and after our repayment of the SBA loan. Our financial forecast, which we go into greater detail

within the business plan, has forecasted sales of $65,000 with a projected profit of $24,816.96

within the first year.

The bakery industry “generates more than $30 billion in revenue each year. The industry

includes 6,000 retail bakeries and nearly 3,000 commercial bakeries. The American Bakers

Association reports the economic impact of baked goods produced and sold in the U.S. totals

$423 billion.” (Woodruff, 2019) With low barriers of entry for startup bakeries Fais Dough-

Dough will be able to market to and serve their target market of the more health concise, Gluten

Free and Vegan Friendly customers, which are vastly underserved in the local regional area. By

providing our customers a wide range of products we are meeting more of their bakery needs.

While we are a small bakery, we will be able to offer more personalization to the products as

“more than three-quarters of shoppers want the ability to personalize their purchase.” (Taylor,

2019) Because at Fais dough-Dough our main goal it to provide you and yours with quality
Fais Dough-Dough Bakery Business Plan 4

sweet treats that add just the right amount of sugar, because sometimes life can throw us to much

spice.

Business Plan

“Fais Dough-Dough is bakery with a highlight product of pre-made cookie dough that

customers can take and bake. This business idea came from my love of baking and fulfilling a

need that people don’t necessarily realize is there.” (Lambert, N., 2020) The name is a variation

on a Cajun phrase Fais Do-Do meaning Cajun Dance party. With the bakery being in a

geographical area where Cajun families reside, we wanted a name that would not only resonate

with residents but that would be a fun twist on a traditional phrase that they were already familiar

with. “To truly be successful in business you need to do something that you are passionate about

and something that plays into your strengths.” (Lambert, N., 2020) “Talent is the multiplier. The

more energy and attention you invest in it, the greater the yield. The time you spend with your

best is, quite simply, your most productive time.” (Harter & Buckingham, 2016) Our main goal

will be to provide you and yours with sweet treats that add just the right amount of sugar because

life can sometimes throw us to much spice.

“Fais Dough-Dough is a retail business, belonging to the bakery industry. Our products

consist of baked goods and our potential target market are those who are in need of, and

those who simply have a taste for small cakes, cookies, pastries and more. We will use all

natural, Non-GMO ingredients with options including gluten free and vegan friendly.

Bakeries are a dime a dozen but what can set us apart? By offering our “Take and Bake

Dough” we are creating not only a product that meets our customers’ needs but one that

gives them a fresh, healthier alternative to pre-packaged store-bought dough.” (Lambert,

N., 2020)
Fais Dough-Dough Bakery Business Plan 5

The funding that we plan to research and potentially use if we qualify is that of the Small

Business Administration (SBA) loan, Business Credit Cards, and potentially friends and family if

necessary. The SBA offer several options for small businesses than most traditional banks do not,

including options for Veterans and their spouses which is useful as me and my husband are both

veterans. “The 7(a)-loan program is the SBA's primary program for providing financial

assistance to small businesses. The terms and conditions, like the guaranty percentage and loan

amount, may vary by the type of loan.” (sba.gov) Fais Dough-Dough Bakery is currently in the

concept and research phase of the startup process with the intent of moving into the commitment

phase within in the next couple of months. We have thoroughly created a product and researched

and developed that product to meet our target markets wants and needs of smaller, healthier

options regarding desserts. By utilizing non-gmo products and offering options that are gluten

free and vegan friendly we can reach a niche market within the bakery world.

The business entities that we are considering for the business are those of a Limited

Liability Company (LLC) and that of a Limited Liability Partnership (LLP). An LLC “is a

corporate structure in the United States whereby the owners are not personally liable for the

company's debts or liabilities. Limited liability companies are hybrid entities that combine the

characteristics of a corporation with those of a partnership or sole proprietorship.” (Kenton,

2020) The reason we have decided to go this route is because an LLC completely separates our

personal assets from the company assets protecting us as the owners in the event of outstanding

debts and or liabilities. A limited Liability Partnership is set up in a similar way as an LLC. The

difference is that it protects each partner in the event of outstanding debt from one partner or a

liability that is caused by one partner. These are both options that we will discuss with a business

lawyer and decide which is best for the business.

Fais Dough-Dough Bakery Business Plan 6

Environmental Analysis
A business environmental analysis is a “systematic process by which environmental

factors in a business are identified, their impact is assessed, and a strategy is developed to

mitigate and/or take advantage of them.” (O’Farrell, 2016) At Fais Dough-Dough to complete an

environmental analysis we have decided to utilize a SWOT Analysis. A SWOT Analysis is a

system in which a business can assess and list their Strengths, Weaknesses, Opportunities, and

Threats. By completing a SWOT Analysis, a business can evaluate their internal and external

factors and how these factors affect the business.

SWOT
Strengths Weaknesses
 Variety of products  One Baker
 Products in smaller portion sizes  Currently run out of my home
 Our Take and Bake Dough  Several Local Bakeries each known
 Products that are Gluten Free and for their specialized products
Vegan Friendly  New among the bakery market
 Use of Non-Gmo Products
 Our company goal/guarantee
Opportunity’s Threats
 Delivery Options  Competitor Pricing
 Online Ordering  Competitor Experience
 Regional/Cultural Specialty Desserts  No current employees
 Economic downturn

Our goal/guarantee at Fais Dough-Dough Bakery of offering “quality sweet treats that

add just the right amount of sugar because sometimes life can throw us too much spice”

(Lambert, N., 2020), is not only branding our business but we are setting ourselves apart from

our local competitors. Offering a variety of products that are smaller portion sizes, our fresh take

and bake dough, as well as options that are gluten free and vegan friendly, we are broadening our

traditional target market base to an untapped market in the local area. By remaining a smaller

bakery that is family owned, we are allowing our business to create lasting customer
Fais Dough-Dough Bakery Business Plan 7

relationships that will carry over to the next generation. “Playing to your strengths allows you to

free up your time, energy and focus from doing things you’re not great at, that don’t make you

money, or bring in new business to instead doing only the strategic, revenue-generating work that

you’re brilliant at—and delegating all the rest.” (Fredrickson, 2012)

Within any successful organization there are weakness, how you implement and handle

those weaknesses can be the key to your success or failure. At Fais Dough-Dough one of our

main weaknesses that we will continually address is having only one baker. In the beginning

having only one baker will not be an issue as our customer base will be smaller and the one

baker will be able to keep up with demands. However, once we have established ourselves as a

well-known bakery having only one baker will become a weakness, as she will not be able to

keep up with supply and demand of our baked goods. Another one of our more prominent

weaknesses is location. Fais Dough-Dough will start out being ran out of our bakers’ home with

plans for a more permanent retail location. “Location is especially important for businesses in the

retail and hospitality trades because they rely a great deal on visibility and exposure to their

target markets.” (Angel & Thomas, n.d.) Being ran out of our bakers’ home could potentially

hinder business as people prefer more commercial locations for such businesses.

External Factors

“Analysis of external factors helps strategists to uncover and understand threats and

opportunities, which, in turn, helps to reveal a company’s strategic options.” (Luecke, 2005) The

opportunities and threats listed in Fais Dough-Doughs SWOT Analysis can be positive

alternatives and or obstacles that this business could face in its lifetime. The opportunities are

currently but not limited to adding delivery options. Delivery options would not only increase

potential customers but would add a much-needed option that most customers are looking for
Fais Dough-Dough Bakery Business Plan 8

today. Along with adding with adding delivery options, adding online ordering to our site would

not only increase revenue but could also increase website traffic which can alter search

algorithms and potentially put our business within the top search results in our area. Lastly

another area of opportunity that would allow for longevity is entering the local/regional specialty

desserts. These would include limited time offers throughout the year to include King Cakes

during Mardi Gras season, Pralines during holidays such as Valentine’s Day and Christmas, to

several other traditional Louisiana desserts as well as twists on those traditional desserts as well.

The threats within the bakery industry are similar across the board. We will be entering a

market where there are several other bakeries in the area that are well known along with an

established customer base. Established bakeries have the opportunity to have a relationship with

not only their customers but their suppliers as well which potentially gives them better pricing on

supplies and materials. Along with lower overhead cost for these competitors they also have

experience with our target market and what exactly they are looking for and wanting. One of the

last threats is that of the lack of employees. With this being a start up the baker and second owner

are currently the only employees. This will potentially hinder the workflow as we can only

produce products that one baker can handle. This means the number of customers served will be

reduced until further employees can be hired.

Industry Analysis

The bakery industry within congressional district 3 of Louisiana which is the district that

Fais Dough-Dough Bakery will reside accounts for “2,137 jobs and overall total output is

$548,950,000” (americanbakers.org, n.d.). Recent studies have shown that opening a smaller

retail bakery requires significantly less retail than that of a commercial bakery and that it is easier

to start. Smaller bakeries are easier to establish and to create a loyal customer base by catering to
Fais Dough-Dough Bakery Business Plan 9

a niche within the bakery market. Current bakery trends include but aren’t limited to savory

sweets, implementing brown butter, baking that is good enough not the perfect cookie, cake and

so on. Classics that remind you of your childhood but with a modern twist, the sheet cake, and

lastly quality over quantity. (queen.com) People are looking for quality sweet treats over quantity

and at Fais Dough-Dough our goal is to provide you and yours with quality sweet treats that add

just the right amount of sugar because sometimes life can throw us to much spice.

Geographical Location
Our bakery will start off being run out of the home of the owners with plans to move to

the heart of downtown Lake Charles or within the immediate surrounding area. “Downtown

Lake Charles is the center point of economic growth for the city. Restaurants, shops, arts and

cultural centers, and other businesses attract visitors to this developing area. Downtown at

Sundown and the Charlestown Farmer's Market are just a couple of examples of popular events

that showcase downtown Lake Charles. The Downtown Development Authority works with

businesses to plan growth in the Downtown Historic District.” (cityoflakecharles.com, n.d.) Lake

Charles has seen significant growth over the last few years with the last recorded data being that

from 2016-2017 the population grew from 75,044 to 75,194 a 0.2% increase. Although those

number seem small the median household income went from $37,465 to $40,910 which is a

9.2% increase. (datausa.io) This increase allows people to purchase items that they would

normally forgo and or even try to make themselves. The employment rate is at a continual

increase and the food preparation and serving occupations being within the top three jobs and

accounting for 10.1% of jobs in the area this location is the most logical for success.

Overhead
Fais Dough-Dough Bakery Business Plan 10

With Fais Dough-Dough falling under the service industry and being a homebased

business in the beginning overhead costs will remain on the lower end as the owner will utilize

personal equipment already owned and will make new purchases as needed. Consistent overhead

cost will be baking and packing supplies. With this being a small startup, immediate overhead

will be the cost to register the business name and apply for and receive all required permits

necessary to operate from the owner’s home. “A 2012 survey says 69% of businesses now start

in the home. And 59% of established businesses more than 3 and a half years old continue to

operate from there.” (Campbell, 2020) The success and or failure of the bakery being run from

the owner’s home will determine the speed in which the business looks to expand to a

commercial location downtown.

Labor productivity is “the rate of output per worker in your business per unit of time-

usually per hour.” (Lister, 2016) With there being only two employees within the business one

being the baker and the other partner being the manager of IT and Marketing. Output for the

baker will be lower than most bakeries as they have more than one person to mix, bake, and

decorate products. Also, productivity per hour will be based on what the baker is doing that day

as far as baking products, decorating and packing products as time for each of these activities

varies from day to day and product to product. Pricing will be competitive with other local

bakeries and allow for the bakery to make a profit while still being affordable to our customer

base.

Management Team
Fais Dough-Dough Bakery Business Plan 11

The owners are the management team for Fais Dough-Dough Bakery. My experience as

the baker comes from 16 years of baking for friends and family and obtaining my Bachelor’s in

Business Administration in December of 2020. As the Baker my job will be to “strive to provide

excellent baked items and service in an efficient, professional manner. The Baker will design,

execute, and improve recipes, perform quality checks on ingredients and finished products, use

icing, glazes, fillings, and decorations to enhance item presentation, and process orders from

customers. I will also greet customers, answer questions, clean workstations and equipment, and

perform other duties to ensure that customer needs are satisfied, and the bakery is well-stocked

and operating smoothly.” (betterteam.com, n.d.) I will also function as the Business

Administrator for the bakery. In this role my duties will include but are not limited to

maintaining and overseeing financial operations, reviewing and approving purchases, marketing

and promoting business, and scheduling and coordination of training that coincide with our

business’s goals.

The second owner has 15+ years of Information Technology and communications from

time and training in the military and his current job with Louisiana Radio Communications as

Supervisor of the Siren Department. He is in the process of obtaining his Associates in Cyber

Security with plans to obtain his bachelors in the near future. His role as head of our IT and

Marketing Departments will include responsibilities such as installing and maintenance of our

networking systems. He “must evaluate and install the proper hardware and software necessary

to keep the network functioning properly. This includes working within a budget that allocates

the amount of money the company can afford on network devices and software. The IT

department must make sure that the equipment it invests in both optimally serves the needs of the

company without going over budget.” (jobs.net, n.d.) As head of our marketing department he
Fais Dough-Dough Bakery Business Plan 12

will be responsible but not limited to developing our market strategy, researching demand for our

products, identifying potential customers, creating promotions and advertising for promotions,

building our brand awareness, and overseeing our social media accounts.

Owners/Partners

Partner One Partner Two

Office Marketing
Baker It Manager
Administrator Manager

Training and Compensation

Having both served in the military we have obtained excellent leadership skills that will be

useful when the time comes to hire additional staff. Our combined skills allow for each of us to

complete a job that the other cannot and to work together in the areas that we both have less

experience in. “There are certain business qualities that a good business owner needs, and some

people do have those natural talents. But if you are going to be a successful business owner, there

are a lot of skills that you have to learn as well.” (Strategy Driven, 2019) Currently no formal

education for bakers is required to become a baker. However, there are options that will aid in the

process should you so choose to have educational background in the field. You can attend any

technical college and or culinary school to aid in your progression as a baker. Other options
Fais Dough-Dough Bakery Business Plan 13

include on the job training, and apprenticeship programs. “Certification is voluntary and shows

that a baker has the skills and knowledge to work at a retail baking establishment. The Retail

Bakers of America offers certification in four levels of competence, with a focus on several

topics, including baking sanitation, management, retail sales, and staff training. Those who wish

to become certified must satisfy a combination of education and experience requirements before

taking an exam.” (collegegrad.com, n.d.) Our goal is to continually learn and grown within our

perspective responsibilities along with those that we aren’t as strong in as well. Compensation

for the managers/owners will be all revenue not invested back into the company seeing as they

are the only two employees currently. Once we have the need to begin hiring employees, we will

reevaluate compensation at that time.

Financial Forecast

Fais Dough-Dough Bakery is a home run bakery with our highlight product of take and

bake dough and items that are gluten free and vegan friendly. The owners will be providing a

portion of the startup cost which is from their personal savings. We are in the process of

obtaining a loan from the Small Business Administration to cover the remainder of the startup

costs. With limited resources in town that supply and cater to the gluten and vegan friendly

markets Fais Dough-Dough has a competitive advantage unlike the other bakeries in town.

“Success isn’t an elusive mystery–it’s quite simply defining goals and figuring out exactly what

has to happen to achieve those goals. After that, all you need is consistency and tenacity in taking

the steps from where you are to the achievement of those goals.” (Vance, 2020) The following

tables are our financial forecast which is crucial knowledge to our business’s success.

Table: Start-Up
Fais Dough-Dough Bakery Business Plan 14

“Sales forecasting gives insight into how a company should manage its workforce, cash

flow, and resources.” (White, n.d.) With Fais Dough-Dough being a smaller bakery, we have

projected our sales to be on the lower end towards $65,000 until we have an established

customer base. The below table is a projection of our first year of sales as well as our cash flow

projection. Our projected cash flow shows that we will be able to maintain our expenses and that

the income is sufficient to meet Fais Dough-Doughs needs and operational activity.

Sales Forecast

Unit Sales
Take and Bake Dough 4,739
Gluten Free/ Vegan Friendly Items 3,046
Cakes 162
Other 812

Unit Prices
Take and Bake Dough $6
Gluten Free/Vegan Friendly Items $8
Fais Dough-Dough Bakery Business Plan 15

Cakes $50
Other $5

Sales
Take and Bake Dough $28,437
Gluten Free/Vegan Friendly Items $24,375
Cakes $8,125
Other $4,062

Total Sales $64,999

Direct Units Costs

Take and Bake Dough $0.50
Gluten Free/Vegan Friendly Items $1.00
Cakes $15.00
Other $4.00

Direct cost of Sales

Take and Bake Dough $2369.50
Gluten Free/Vegan Friendly Items $3,046
Cakes $2,430
Other $3,248

Subtotal Direct Cost of Sales $11,093

Pro Forma Cash Flow

Fais Dough-Dough Bakery Business Plan 16

Cash from Operations

Cash Sales $64,999
Subtotal Cash from Operations $64,999

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0
New Current Borrowing $0
New Other Liabilities $0
New Long-term liabilities $0
Sales of Other Current Assets $0
Sales of Long-term Assets $0
New Investment Received $0
Subtotal Cash Received $64,999

Expenditures
Cash Spending $18,500
Bill Payments $3269.80
Subtotal Spent on Operations $21,769.80

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
Principle Payment of Current Borrowing
Other Liabilities Principle Repayment
Long-term Liabilities Principle Repayment
Purchase Other Current Assets
Dividends
Subtotal Cash Spent $21,769.80

Net Cash Flow $43,229.20

Cash Balance $73,229.20
Cash flow projections “give you a clearer picture of where your business is headed. And,

it can show you where you need to make improvements and cut costs.” (Kappel, 2020) Our cash

flow projections show that we are able to meet our ongoing expenses while generating sufficient

cash flow to maintain operations.

Fais Dough-Dough Bakery Business Plan 17

The following is our projected Balance sheet for Fais Dough-Dough.

Table: Balance Sheet Year 1
Pro Forma Balance Sheet
Assets

Current Assets
Cash $73,229.20
Other Current Assets
Total Current Assets $73,229.20

Long-Term Assets
Long-Term Assets $25,000
Accumulate Depreciation $55.80
Total Long-Term Assets $24,944.20
Total Assets $98,173.40

Liabilities and Capital

Current Liabilities
Accounts Payable
Current Borrowing
Loans Payable $4,527.84
Subtotal Current Liabilities $4,527.84

Long-term Liabilities $25,000

Total Liabilities $29527.84

Paid-in Capital $10,000

Retained Earnings $13,356.45
Earnings $24,816.96
Total Capital $20,472.15
Total Liabilities and Capital $98,173.40

Net Worth $20,472.15

Fais Dough-Dough Bakery Business Plan 18

With our profit and loss table we show that we are able to become and be a profitable business

with continual growth.

Pro Forma Profit and Loss

Sales $64,999
Direct Cost of Sales $11,093

Total Cost of Sales $11,093

Gross Margin $53,906

Gross Margin % 82.9%

Expenses
Payroll $18,500
Sales and Marketing $600
Depreciation $55.80
Payroll Taxes $2,614

Total Operating Expenses $21,769.80

Profit Before Interest and Taxes $32136.20

Interest Expense $956.28
Taxes Incurred $6,362.96

Net Profit $24,816.96

Net Profit/Sales 38%
Table: Profit and Loss

Our break-even analysis is projected with more conservative numbers which are a more

realistic projection.

Table: Break Even Analysis

Break-even Analysis

Monthly Units Break-Even 158

Monthly Revenue Break Even $1,916.54
Fais Dough-Dough Bakery Business Plan 19

Assumptions:

Average Per Unit Revenue 17.25

Average Per-Unit Variable Cost 5.12
Estimated Monthly Fixed Cost $1,914.15

Market Research and Evaluation

The following market evaluation and research provides information in regard to the

bakery sector and evidence whether or not there is a target market for Fais dough-Dough Bakery

in Lake Charles, LA. “Fais Dough-Dough is bakery with a highlight product of pre-made cookie

dough that customers can take and bake. This business idea came from my love of baking and

fulfilling a need that people don’t necessarily realize is there.” (Lambert, N., 2020) The bakery

industry “accounts for $322 billion in total economic output and roughly 2.1% of gross domestic

product.” (American Bakers Association, n.d.) As of 2017 Lake Charles had a population of 75.2

thousand people and an average median household income of $40,910. (datausa.io) Being

located in a city, and the surrounding cities being comprised of industrial plants the influx of new

and potential customers is endless. Our target market we are looking at reaching and marketing

to are those who are 25-40 with children and an average household income of $40-$50k range.

These guidelines cover the average demographic within the local area. (datausa.io)

Within the local area there are a total of 10-12 bakeries aside from chain commercial

store bakeries. Competitors strengths are that they are established and have a customer base.

Having commercial store front locations, as well as being established within a specialty, niche

market, having set price points, and the years of experience all aid in their continued success.

“The products that make up the bakery market are as follows: Bread: 32 percent, Rolls: 19
Fais Dough-Dough Bakery Business Plan 20

percent, Cakes: 15 percent, Retail bakery products: 10 percent, Soft cakes: 8 percent, Pies: 2

percent.” (Woodruff, 2019) With this information Fais Dough-Dough has decided to enter the

market with a product that will appeal to our customer base of being take and bake. Eliminating

the need to prepare and mix the cookie dough. All our customers need to do is take the dough

home and bake for fresh cookies. Along with our highlight product our goal is to enter the Gluten

Free, and Vegan Friendly markets. As more and more allergies are diagnosed each year and

people are becoming more health concise and our goals are to meet these needs. Within our

research we haven’t been able to find a local bakery that offers fresh products that meet these

needs. In regard to market share, with the number of citizens from above and the “average

revenue per capita of $212.90” (statista.com, n.d.) we have estimated that we could obtain 1.25%

of the local market share if our shares reach $200,126 within our first two years.

Our pricing strategy is one that in the beginning will be similar to that of our competitors.

To maintain a competitive advantage, we need to have lower and or similar pricing to draw in

customers. “Pricing is one of the most important components when it comes to creating

marketing strategies. The price is one of the first things that a consumer notices about a product

and is one of the deciding factors when it comes to their decision to buy it or not.”

(intelligencenode.com, 2020) Our specialty items are where our customers will see a difference

in pricing. These items will be priced using the cost-plus pricing as the ingredients for these

items run higher than the non-specialty items. By utilizing these two methods we are ensuring

that we will maintain a competitive advantage while still making a profit. By utilizing “minor

variations in prices we can lower and or raise profit margin by more than 20-25%. Competitive

price analysis is essential to competitive pricing strategies.” (intelligencenode.com, 2020)

Fais Dough-Dough Bakery Business Plan 21

Fais Dough-Doughs’ promotional strategies in the beginning are going to utilize social

media. We have a limited budget in regard to marketing at this time and that budget will be spent

on a website so that we can offer our customers online ordering. By utilizing social media, we

will be able to brand ourselves with hashtags, posting live and pre-recorded videos, and offering

specials that are only available through our social media accounts. “59% of people access social

media every day or most days and check social media over five times a day. 95% of online adults

ages 18-34 are likely to follow a brand on social media.” (lyfemarketing.com, 2019) With these

statistics how could we not utilize social media? Most social media business accounts are free to

setup and maintain it is when you delve into the paid boosts for post that you will incur costs.

In conclusion Fais Dough-Dough Bakery has a target market that we enter into and

maintain profitability. Lake Charles is continually growing to and has an influx of new hires, and

contractors based on the industrial plants in the surrounding areas. With these continual changes

and growth, the need for our take and bake dough and specialty bakery products are sure to be

the answer to a need.

Timeline, Critical Risks Assumptions and Benefit to the Community

“Fais Dough-Dough is bakery with a highlight product of pre-made cookie dough that

customers can take and bake. Where our main goal is to provide you and yours with quality

sweet treats that add just the right amount of sugar. Because sometimes life can throw us to much

spice.” (Lambert, N., 2020) While both partners are currently attending college, Fais Dough-

Dough is not planned to launch until well into the first quarter of 2021. “Timelines are essential

in managing the tasks that need to occur to reach your goals and determining the feasibility of

your target dates and costs.” (Richards, 2019) Below is a timeline of events that will be

implemented beginning in January 2021 and will include but are not limited to:
Fais Dough-Dough Bakery Business Plan 22

 First check with Louisiana Secretary of State to obtain business name and if it is

available. Start 1/1/2021 - End 1/31/2021

 Register business with the Louisiana Secretary of State, Louisiana Department of

Revenue and the Louisiana Workforce Commission if necessary, start 1/1/2021 –

131/2021

 Obtain all necessary license and permits Start 1/1/2021 – End 1/31/2021

 Establish website/ social media presence Start 2/1/2021 – End 2/28/2021

 Establish/Create Menu Items Start 2/1/2021– End 2/28/2021

 Purchase additional equipment/materials Start 3/1/2020 – End 3/31/2021

 Starting Date for marketing activities/campaign Start 3/1/2021 – Indefinite

 Opening date for Fais Dough-Dough 4/1/2021

 Begin looking for commercial Locations Start 4/1/2022 – End 12/1/2022

Assumptions throughout the business plan process have been that our highlight product

of take and bake dough will be the main source of revenue for our bakery, along with a close

second of our gluten free and vegan friendly options. With Fais Dough-Dough being in the

business to consumer business we have had to research our customer base. Based on these results

word of mouth will be the marketing strategy with the largest results. Further assumptions were

made based off of these results, and they determined that there is a need for a smaller bakery that

offers healthier options, smaller portion sizes, and options that are gluten and vegan friendly. Our

economic conditions show continual job growth as our area remains one of the fastest growing

areas in the nation. (Mitchell, 2018)

When it comes to the risk associated with a bakery business, many of them are the same,

though certain risks and opportunities are rather unique to small bakeries.(LaMarco, 2019) Risks
Fais Dough-Dough Bakery Business Plan 23

that we have identified and addressed for Fais Dough-Dough are those of fluctuation in prices for

products we use in our specialty products, and local competition. Our strategy is to continue to

support our brand while timing the price increase accordingly and at regular intervals when

necessary. Within the bakery business local one way to grow is to either “buy out competitors or

stealing their market share for a specific product.” (LaMarco, 2019) One way we have planned to

counteract this risk is to reach a target market that is in high demand that other bakeries within

our local area haven’t tapped into.

The benefit of Fais Dough-Dough to the local community is that we are going to be able

to provide our take and bake dough, gluten free and vegan friendly options that currently don’t

exist in our local area. Fais Dough-Dough in the future will be able to aid in the continued

economic growth of our local community by providing jobs. “Small businesses create 64 percent

of all new private-sector jobs, which means they’re absolutely essential to getting people

working.” (Wood, 2017) Lastly, by being a smaller locally run business we are able to reinvest a

larger share back into our local economy.

Succession Plan:
“Business succession planning is a series of logistical and financial decisions about who

will take over your business upon retirement, death, or disability.” (Newcomer-Dyer, 2020) As

this will be an LLC where the owners are spouses, we will have a succession plan that will

highlight divorce, unforeseen circumstances i.e. death, and retirement/selling of the business.

The first portion of the succession plan that we will address is the occurrence of divorce. If the

owners are to divorce our plans are for any owner wanting to remain in the business to buy the

second owner out of their share of the business. Seeing as we live in “Louisiana which is an
Fais Dough-Dough Bakery Business Plan 24

Equitable Division State” (Landers, n.d.), the owner wanting to remain would have to buy the

owner who is wanting to leave out for their share of the company which is 50% of the company.

The second area we would need to address would be that of unforeseen circumstance

where the owner who is the baker is unable to continue to work or passes away. In this instance

we the owners have decided that it would be in their best interest to sell the business at this point.

Who we would sell to would depend on if we had employees that were interested or if we would

need to sell to an outside party. Lastly, we would address retirement in our success plan. When

both owners are ready to retire, we will consider two options. We are hopeful that our son will

want to inherit the business and continue on and make this bakery a family legacy. Our first

option will be passing on to our son, however if he is not interested, we will then consider the

option to sell to an employee and or an outside party. “Knowing how your business will

transition, who will take over, and how heirs and partners will be compensated are all keys to

reducing future stress in the event of an owner’s sudden departure.” (Newcomer-Dyer, 2020)
Fais Dough-Dough Bakery Business Plan 25

References

Angel, B., & Thomas, J. (n.d.). Location Definition - Entrepreneur Small Business Encyclopedia.

Retrieved from https://www.entrepreneur.com/encyclopedia/location

Anita Campbell. (2020, January 20). 69 Percent of U.S. Entrepreneurs Start Their Businesses at

Home. Retrieved from https://smallbiztrends.com/2013/07/home-based-businesses-

startup.html

Baker Job Description. (n.d.). Retrieved from https://www.betterteam.com/baker-job-description

Baking Industry Economic Impact Study • American Bakers Association. (n.d.). Retrieved from

https://www.americanbakers.org/industry-data/

Bread & Bakery Products - United States: Statista Market Forecast. (n.d.). Retrieved from

https://www.statista.com/outlook/40050000/109/bread-bakery-products/united-

states#market-revenue

CollegeGrad. (n.d.). Retrieved from https://collegegrad.com/careers/bakers

Competitive Pricing Strategy -- See How Products Are Priced. (2020, March 13). Retrieved from

https://www.intelligencenode.com/blog/competitive-pricing-strategy-see-products-priced/

Downtown/Lakefront Development. (n.d.). Retrieved from

https://www.cityoflakecharles.com/department/?fDD=7-0
Fais Dough-Dough Bakery Business Plan 26

Fleishman, H. (n.d.). 12 Marketing Job Descriptions to Recruit and Hire an All-Star Team [Free

Templates]. Retrieved from https://blog.hubspot.com/marketing/marketing-job-

descriptions

Fredrickson, F. (2012, July 30). Play to Your Strengths: 3 Steps to Building a Business that

Thrives. Retrieved from

https://www.forbes.com/sites/fabiennefredrickson/2012/07/11/play-to-your-strengths-3-

steps-to-building-a-business-that-thrives/#3141fdb239f2

Harter, J., & Buckingham, M. (2016). First, break all the rules: what the worlds greatest

managers do differently. New York, NY.: Gallup Press.

Kappel, M. (2020, January 6). Cash Flow Projection: Advantages, Steps, & More. Retrieved

from https://www.patriotsoftware.com/blog/accounting/how-to-project-your-cash-flow/

Kenton, W. (2020, February 5). The Truth About Limited Liability Companies. Retrieved from

https://www.investopedia.com/terms/l/llc.asp

Lake Charles, LA. (n.d.). Retrieved from https://datausa.io/profile/geo/lake-charles-la/

Lake Charles, LA. (n.d.). Retrieved from https://datausa.io/profile/geo/lake-charles-la/#economy

LaMarco, N. (2019, March 16). Risks of a Bakery. Retrieved from

https://smallbusiness.chron.com/risks-bakery-61962.html

Lambert, N. (2020) Fais Dough-Dough Bakery Opportunity Analysis Plan. Unpublished Paper,

Southern New Hampshire University.

Landers, J. (n.d.). How to Protect Your Business in a Divorce. Retrieved from

https://www.inc.com/guides/2010/05/protecting-your-business-from-divorce.html
Fais Dough-Dough Bakery Business Plan 27

Lister, J. (2016, October 26). What Is Productivity of Labor? Retrieved from

https://smallbusiness.chron.com/productivity-labor-17636.html

Luecke, R. (2005). Harvard business essentials: strategy: create and implement the best strategy

for your business. Boston, MA: Harvard Business School.

Mitchell, K. (2018, October 3). Economic outlook: Lake Charles continues to be one of fastest

growing areas in nation. Retrieved from https://growlouisianacoalition.com/economic-

outlook-lake-charles-continues-to-be-one-of-fastest-growing-areas-in-nation/

Newcomer-Dyer, R. (2020, March 31). Business Succession Planning: 5 Ways to Transfer

Ownership Of Your Business. Retrieved from https://fitsmallbusiness.com/business-

succession-planning/

O'Farrell, R. (2016, October 26). Environmental Business Analysis. Retrieved from

https://smallbusiness.chron.com/environmental-business-analysis-43238.html

(n.d.). Retrieved from https://www.sba.gov/partners/lenders/7a-loan-program/types-7a-loans

Richards, F. (2019, February 11). How to Create an Implementation Timeline for a Marketing

Plan. Retrieved from https://bizfluent.com/how-8467396-create-implementation-

timeline-marketing-plan.html

Strategy Driven. (2019, November 29). 3 Knowledge Gaps That Small Business Owners Need to

Fill. Retrieved from https://www.strategydriven.com/2019/11/25/3-knowledge-gaps-that-

small-business-owners-need-to-fill/
Fais Dough-Dough Bakery Business Plan 28

Taylor, N. (2019, April 10). In-Store Bakery Sales Reached $13.8 Billion in 2018. Retrieved

from https://www.winsightgrocerybusiness.com/fresh-food/store-bakery-sales-reached-

138-billion-2018

Top Baking Trends for 2019. (2020, January 13). Retrieved from https://queen.com.au/top-

baking-trends-for-2019/

Vance, J. (2020, February 27). 3 Reasons You Need a Financial Forecast. Retrieved from

https://www.preferredcfo.com/why-need-financial-forecast/

White, R. L. (n.d.). What Is Sales Forecasting? - Definition. Retrieved from

https://trackmaven.com/marketing-dictionary/sales-forecasting/

Wood, M. (2017, June 2). 4 Ways Small Businesses Empower Their Communities. Retrieved

from https://www.business.com/articles/meredith-wood-small-businesses-empower-

communities/

Woodruff, J. (2019, March 19). Bakery Industry Analysis. Retrieved from

https://smallbusiness.chron.com/bakery-industry-analysis-64831.html

15 Reasons Why Marketing Through Social Media Should Be Prioritized. (2019, August 13).

Retrieved from https://www.lyfemarketing.com/blog/marketing-through-social-media/

Fais Dough-Dough Bakery Business Plan 29