BUSINESS PLAN WORKSHEET

Proposed Business: Bakery

Name of Business: A &B Bakery
Major Strengths:
The major strength of the business is;
 cheap raw materials
 Location of the business is way too far from the competitors.
 Having new and different varieties of cakes, pastry and breads.

Major Weaknesses:
The major weakness of the business is
 the accessibility of raw materials
 low production at a time of peak of popularity of the product
 lack of technical know-how of owner/manager

Major Opportunity:
The major opportunity of business is:
 there no nearby competitors
 increasing consumer demand for the product/service offered
 continued product development

Major Threat:
The major threat of the business is:
 Competitors low pricing
 Economic downturn
 Consumers satisfaction
 Unexpected change in price of ingredients

Decision-making Checklist

YES NO

Economic Factors

1. Will there be a profit? ____√__ _______

_

2. Can we avail of loans? ____√__ _______

 _

3. Is there a ready market for our product? ____√__ _______

_

Social Factors

1. Are we providing for a needed product/service? ____√__ _______

_

2. Will the community benefit from the business? ____√__ _______

_

3. Are we free to make our own decision? ____√__ _______

_

4. Are we ready to invest? ____√__ _______

_

5. Do we have our families’ support? ____√__ _______

_

Interactive Factors
What risks are involved?
In the business, the risk of failing to meet the demands of the consumers is
always there. There are risks of dissatisfaction and the possible shortage of
resources and money.

How do we feel (in general) about the business?

We feel that we have a good chance in succeeding in our chosen business
in bakery. Our combined efforts and our determination will be a big factor in the success
of the business. Also, we have chosen an area which is far from our competitors and we
consider it as an advantage.

Consider the following:

1. Are most of your answers a yes or a no?
Yes
2. Is there a factor, such as lack of credit that will make the business impossible?
Yes
3. What is your decision about the business? Why?
We have decided to continue our business despite the many factors which
could contribute to the failure of the business. With careful evaluation, we found
out that our strengths outweigh our weaknesses.
 4. If your decision is yes, discuss as a group what you are looking forward to about
starting a business and what are you afraid of the most.
We are looking forward to make a name for ourselves in the business
world. We are afraid that we might fail in getting the support of the consumers to
our products which may cause the downfall of the business and failing in our
business. However, we will try the risk because we will never succeed if we don’t.

5. If your decision is to discontinue, refer back to the earlier activities where you
listed a number of business opportunities.
We will continue with the business

Step 3

After deciding to push through with your chosen business, the following areas
and questions have to be considered and answered.

Materials:
1. What are the materials that you need to start your business?
Utensils (measuring cups, spatula, stainless bowl, dough cutter, plancha,
cheesecloth).
Equipment (Weighing scale, Dough kneader, Oven, Working table)
Raw materials (Bread flour, water, refined sugar, vegetable shortening,
salt, instant yeast)

2. Where can you obtain the materials?

We have access to the materials in Puerto Princesa City.
3. Is there a ready source and enough supply?
Yes

Transportation:
1. What transportation facilities do you need for the successful operation of the
business, obtaining supplies and marketing your product?
Mode of transportation would be by Land. We will have a motorcycle for
some deliveries and rusco for massive deliveries.
2. How much does it cost?
The cost of transportation is incorporated in the selling price of the
product.
Facilities:
1. Where are you going to locate your business?
San Juan, Aborlan , Palawan
2. Is there a ready supply of water, electricity and other resources?
Yes
3. How much does their installation cost?
We already had a ready source of electricity and water in our site.
On Workers:
1. Who is responsible for what?
Production Department- Responsible for the whole production of products we
sell.

General Manager- Runs the daily operations of the business and may also handle
marketing and this role can be filled by the owner.

Kitchen Preparation Personnel- Maintain cleanliness an orderliness of the area.

Marketing Department- Responsible for the promotion and the selling of the
products

The Finance Department- Responsible for the bookkeeping, financial reports and
counting matters such as salaries, budget and profit gained.

Delivery Personnel- In charge in delivering orders of the clients

2. How much will you pay yourselves for the time you will be spending?
250 per day
3. Is there a need to hire other workers?
Yes

On Training:
1. Do you have the needed skills?
Yes
2. If you don’t have the skills, how do you plan to acquire them?
Training session can be conducted regularly to acquaint us with the
production of our business.
3. Who will train your hired workers?
Our production department will train the newly hired workers.

On Packaging:
1. Does your business need package?
Yes
2. If yes, what kind?
The packaging of our products is light and eco-friendly. We also do customized
packaging for cakes according to the costumer’s request.
3. Where will you get them?
We can get them in Puerto Princesa City
On promotion:
1. How will you let the consumers know about your business and your product?
We will launch our social media pages and holding promos during special
occasions such as Valentines, Christmas and New year that will catch our buyers’
attention especially those who would want to save. We will also provide our
consumers brochures for them to see samples of our product especially the
designs. We will also give some freebies for a certain amount of purchase.

2. How much are you ready to spend for promotions? What strategies are you going
to use?
We will spend 10,000 pesos for brochures and the cost of promos and freebies
depends on how in demand our product is.

On Money:
1. Where will you get your start-up capital?
Loan from the bank (Landbank of the Philippines)
2. How much are the interest payments?
We will borrow 500,000.00 pesos’ worth of money with 9.5 interest and
we are going to pay it in three years.

Business Plan

OUR BUSINESS
Name of Business A & B Bakery
Our Proposed Business is: Bakery
The skills to be learned: (1) Baking
(2) Packaging
(3) Handling orders

The location of the business: San Juan, Aborlan, Palawan

OUR MARKET
Our consumers, where and when: Our consumer are those people around the area. And
we are also open on deliveries around Aborlan and Narra. We are available anytime of
the year.
We will promote our business and products through:
We will launch our social media pages and holding promos during special
occasions such as Valentines, Christmas and New year that will catch our buyers’
attention especially those who would want to save. We will also provide our consumers
brochures for them to see samples of our product especially the designs. We will also
give some freebies for a certain amount of purchase.

BUSINESS OPERATION
We will produce the product:
every day (quantity) 2,000 pieces
every week (quantity) 12,000 pieces
every month (quantity) 144,000 pieces
We produce in a year’s time a total number of: 288,000 pieces

We will hire (kind of workers and number)

We will be hiring skilled, patient and flexible workers:

Production Department 6
Kitchen Preparation Personnel 3
Services Department 7

Total 17 workers

We will divide the work this way

Production Department
1. Packaging
2. Bakers
Kitchen Preparation Personnel
1. Equipment/Dish washer
2. Cleaner
Services Department
1. Finance
2. Delivery Personnel
3. Cashier

The people who will manage the business are (any position, e.g. managers, treasurers
and the tasks assigned to them)
General Manager- Runs the daily operations of the business and may also handle
marketing.
Production Baker- responsible for the whole production of baked goods.
Kitchen Personnel- responsible for cleanliness and orderliness of the whole area
Finance manager- Responsible for all the budget and expenses of the business
Cashier- Responsible for cash and selling product within the facility.

BUSINESS EXPENSES
Our start-up expenses would include the following:
____________________________________________________________
Materials : P150,000.00
Sales budget : P30,000.00
Cash budget : P150,000.00
Manufacturing budget : P70,000.00
Labor : P100,000.00
Total : P 500,000

Our operating expenses for one year would include the following:
Materials : P1,800,000.00
Sales budget : P360,000.00
Cash budget : P1,800,000.00
Manufacturing budget : P840,000.00
Labor : P1,200,000.00
Total : P 6,000,000

we will borrow money from : Landbank of the Philippines

At an interest of : 16 %
Our monthly payments will be : 16,111.1
Interest will start on : the fourth month after the business has
been established and will continue for
two years

SALES INCOME
We will sell the product/service at : P4.00/pc
Our projected sales (quantity) is:
every day : P8,000
every month : P48,000
every year : 576,000
Current market price of the item is : P5.00/pc
They sell (quantity)
every day : P8,000
every month : P48,000
every year : P576,000
Our estimated annual sales income is :

BUSINESS BENEFITS
Our business will contribute the following:
 Encourage people to take risk in business world
 Reduce unemployment within the area
 Our country to be known as a good quality product

Our business will be facing the following risks:

 Failure to meet the costumers demand
 Competitors
 Possible shortage of money and resources

Production Plan Form

Start-up Expenses

Resources Needs Source Cost

Materials Puerto Princesa P150,000.00

Transportation Motor Motor P

Rusco Manufacturers

Facilities Working area Business Onsite

Lobby
Canteen
Workers Uniforms Management
ID
Ventilation
Dormitory
Workers’ Training Materials for Management
Demos
 Packaging Boxes and paper Puerto Princesa
bags

Promotion Brochures and Marketing

flyers Department

Total: _____________________

Consider this question:

How many items will you make in one production cycle? (production cycle – the
period of time needed for producing one “batch” of items)

Use the chart to calculate the costs for one production cycle first and then for one year of
production. Make sure you count your labor as part of your expenses. Estimate an
hourly wage and then multiply that by the number of hours worked.

Below is an investment plan form. Fill this up and compute for the total amount
of investment on the listed items.

Investment Plan Form

Product/Service

Item What is needed What is on hand Cost

Equipment _____________ _____________ _____________

Raw materials _____________ _____________ _____________

Transportation _____________ _____________ _____________

Construction _____________ _____________ _____________

Labor _____________ _____________ _____________

Training _____________ _____________ _____________

Packaging _____________ _____________ _____________

Promotion _____________ _____________ _____________

Others _____________ _____________ _____________

 Total: _____________________

Determine your sales income daily, weekly and monthly using the formula given
below in the sales chart.

Sales Chart

One Day: Price per item X Number of items = Daily sales

sold income

Weekly: Daily sales X Number of selling = Weekly sales

income days/month income

Monthly: Daily sales X Number of selling = Monthly sales

income days/month income

Yearly: Add monthly income for 12 months

Now compute for your operating expenses by using the operation expenses from below.

Operating Expenses

Total Needed Source Cost/Cycle Cost/Year

Raw materials __________ __________ __________ __________

Transportation __________ __________ __________ __________

Facilities __________ __________ __________ __________

Workers __________ __________ __________ __________

Training __________ __________ __________ __________

Packaging __________ __________ __________ __________

Promotion __________ __________ __________ __________

Loan Payments __________ __________ __________ __________

Total: _____________________

*Yearly Cost = cost of one cycle x number of cycles in a year.

 It is a good idea to set aside a certain amount for repairs, replacements on
unplanned expenses. Discuss “reserve” or depreciation allowance.

Consider the following questions:

How much money do you have? ________________________________
How much do you need to borrow to start the business and begin operating?
_____________________________________________________
How much interest should you pay?
_____________________________________________________

1. Monthly costs
Materials _________________________________________
Transportation _________________________________________
Facilities _________________________________________
Labor/salaries _________________________________________
Packaging _________________________________________
Loan payments _________________________________________
and Taxes _________________________________________
Others _________________________________________
Total Costs P __________________

2. number of items you produce each month

3. Per item cost: cost (total of 1)

number of items = per item cost

Example: P 20,000.00 = cost of materials and other expenses (total of 1)

50 = number of products/items
P 400.00 = cost of product/piece

How to get the mark-up (you plan to add a 20% mark-up to your product)
P 400.00 x .20 = P 80.00
P 400.00 + 80.00 (480.00) = selling price of product/piece with mark-up

4. How much is added to each item’s cost for profit (reasonable amount for mark-up)? A
market survey is necessary to find out how much customers are willing to pay.
__________________________________________________________

5. Add: per item cost and profit margin for each item and you have sales price for each
item.
 A sample business plan is given in the succeeding pages. You can use this as your
guide in coming up with your own business proposal.

ORGANIZATIONAL STRUCTURE
 ‣Bread bakery is a business that owned and managed by Anna Rose Bacnan .
Which is located at San Juan Aborlan, Palawan. It has currently 16 employees, including
my supervisor Reynold alba, master baker is Watty Akira and the assistant baker is
Dario Licos, and Jay Seguancia, the cashier is Joevelos Abijay and Renalee Alba and the
sales lady is Reyna Licos and Ryza Licos, the repacker is Genevieve Badajos, Jean
Focbit, and Liza Assuncion, and the delivery is Emely Arbis, Princess Daguia and Ericka
Manzul and the last are utility is Kenneth Alvis and Dexter Magrata.

Production Layout

The layout of business which is the bread bakery, all the facilities are separate in every
area inside and out of the establishment.