MGOP Bakery Supplies

Business Plan
 Business
Plan

1.0 Executive Summary

MGOP Bakery Supplies will be a provider of good quality products and will excel

in good customer service. It will begin its operations in year 2014. The main

goals of the business are to provide the locality with top quality bakery supplies

as wholesaler or retailer and establish strong customer loyalty by offering

discounts and promotional items. The establishment ought to provide the best

prices on the products to the customers also; there will be a guarantee on the

best customer service offered by the employees. Financial plans are included in

this business plan .

(S ee Table of C ontents)

2| P a g e
 Business
Plan

Table of Contents
Title Page............................................................................................................ 1
1.0 Executive Summary........................................................................................ 2
Table of Contents ................................................................................................ 3
1.1 Goals............................................................................................................ 4
1.2 Mission ......................................................................................................... 4
1.3 Keys to Success .............................................................................................. 4
2.0 Management and Organization ....................................................................... 5
2.1 Activities of the Business................................................................................... 5
2.2 Personnel Plan................................................................................................ 5
Table 1.0. Personnel Plan ................................................................................... 5
2.3 Hiring of Employees ......................................................................................... 6
3.0 Marketing Plan............................................................................................... 7
3.1 Product......................................................................................................... 7
3.2 Price ............................................................................................................ 7
3.3 Place............................................................................................................ 8
3.4 Promotion ..................................................................................................... 8
3.5 Customer ...................................................................................................... 8
3.6 Competition ................................................................................................... 8
4.0 Wok Plan ....................................................................................................... 9
Table 2.0. Work Plan ......................................................................................... 9
5.0 Start Up Capital............................................................................................ 10
6.0 Projected Profit and Loss Statement.............................................................. 10
Table 3.0. Profit and Loss Statement ................................................................... 10
7.0 Cash Flow Plan............................................................................................. 11
Table 5.0. Cash Flow Plan ................................................................................. 11
8.0 Break Even Analysis ..................................................................................... 11
Table 6.0. Break Even Analysis........................................................................... 11
9.0 Balance Sheet .............................................................................................. 12
Table 7.0. Balance Sheet .................................................................................. 12

3| P a g e
 Business
Plan

1.1 Goals

 Provide bakery supplies as wholesaler or retailer to the locality

 Establish strong customer loyalty by giving out discounts and promotional

items or rebates

1.2 Mission

Provide customers with the best prices on the highest quality bakery supplies.

1.3 Keys to Success

 Top-quality products

 Excellent customer service

 Offer discount prices and promotional items for loyal customers

4| P a g e
 Business
Plan

2.0 Management and Organization

MGOP Bakery Supplies will be managed by its owner, Mary Grace O. Pagas. This

will be the first year of operation of the business.

2.1. Activities of the Business

a) Managing the overall operations

b) Handling cash transactions

c) Direct selling of goods to walk in customers

d) Delivery of goods to distant customers

e) Accounting

2.2 Personnel Plan

a) Manager (1)

b) Cashier (1)

c) Sales Clerk (1)

d) Utility (5)

e) Accountant (1)

Table 1.0. Personnel Plan

Personnel Plan 2014 2015 2016

Manager 1 Php 156, 000.00 Php 171, 600.00 Php 188, 760.00
Cashier 1 130, 000.00 143, 000.00 157, 300.00
Sales Clerk 1 104, 000.00 114, 400.00 125, 840.00
Utility 5 390, 000.00 429, 000.00 471, 900.00
Accountant 1 130, 000.00 143, 000.00 157, 300.00
Total Employees 9 910, 000.00 1, 001, 000.00 1, 101, 100

5| P a g e
 Business
Plan

2.3 Hiring of Employees

Applicants were accepted for the vacant positions of: Cashier; Sales Clerk; Utility;

and Accountant. Those with the good qualifications were examined and

subsequently interviewed for hiring.

If sales exceeded from the net income projection, employees will

receive 10% annual salary increase.

6| P a g e
 Business
Plan

3.0 Marketing Plan

3.1 Product

MGOP Bakery Supplies offers the primary ingredients and supplies in baking,

such as:

- Flour

- Shortening

- Margarine

- Sugar

- Baking Powder

- Milk Powder

- Yeast

- Bread Improver

- Baking Cups

- Food Coloring

- Food Flavoring

- Plastic bags and many more.

3.2 Price

Prices of the products would be ensured to be affordable to the public.

Discounted price will be offered to volume purchases and promotional items shall

be given to customers or rebates.

7| P a g e
 Business
Plan

3.3 Place

The store is located at the local Public Market of Digos City, Davao del Sur. This

will enable customers’ easy access to the location of the store as it will be at the

heart of the City.

3.4 Promotion

- The products available in the store will be organized neatly and orderly

giving the store a nice setting for customers to easily shop.

- There will be printed flyers given out to people walking by; also

advertisements on radio and television will be aired for broader reach to

potential customers; ads in social network sites will also be posted.

3.5 Customers

Customers of MGOP Bakery Supplies include bakeshops, pastry shops, catering

services, school and office canteens, and also, walk in customers.

3.6 Competition

Competition includes the supermarkets and grocery stores. To catch up to the

competitions, the MGOP Bakery Supplies offers high quality goods, good

customer service and delivery service to the valued customers.

8| P a g e
 Business
Plan

4.0 Work Plan

Table 2.0. Work Plan

Day Cash
Activity No. of Employees
(Monday - Saturday) (Monthly)

Managing the
Daily 1 Php 12, 000.00
overall operations

Handling cash
Daily 1 10, 000.00
transactions

Direct selling of
goods to walk in Daily 1 8, 000.00
customers

Delivery of goods to
Daily 5 30, 000.00
distant customers

Accounting Daily 1 10, 000.00

TOTAL 70, 000.00

9| P a g e
 Business
Plan

5.0 Start – Up Capital

MGOP Bakery Supplies will have Php 2, 000, 000.00 with a minimal interest of

10% per annum, as a start-up capital to kick off operations.

6.0 Projected Profit and Loss Statement

Table 3.0. Projected Profit and Loss Statement

2014 2015 2016

Sales Php 24,000,000.00 Php 30,000,000.00 Php 36,000,000.00

Purchases 22,460,000.00 27,000,000.00 32,875,000.00

Freight In 120,000.00 130,000.00 150,000.00
Good Available for Sale 22,580,000.00 27,130,000.00 33,025,000.00

Less:
Inventory - Ending 350,000.00 455,000.00 280,000.00
Cost of Sales 22,230,000.00 27,625,000.00 33,200,000.00
Gross Margin 1,770,000.00 2,375,000.00 2,800,000.00
Gross Margin (%) 7.37% 7.91% 7.77%

Personnel 910,000.00 1,001,000.00 1,101,100.00

Supplies Used 20,000.00 50,000.00 75,000.00
Taxes and Licenses 30,000.00 40,000.00 50,000.00
Insurance 40,000.00 50,000.00 60,000.00
Miscellaneous /
Rent 120,000.00 200,000.00 250,000.00
Telephone Bill 12,000.00 15,000.00 20,000.00
Electric Bill 12,000.00 15,000.00 20,000.00
Water Bill 6,000.00 8,000.00 10,000.00
Interest Expense 200,000.00 200,000.00 200,000.00
1,350,000.00 1,579,000.00 1,786,100.00

Net Profit 420,000.00 796,000.00 1,013,900.00

Net Profit Sales 1.75 2.65 3.37

10| P a g e
 Business
Plan

7.0 Cash Flow Plan

Table 4.0. Cash Flow Plan

2014 2015 2016

Cash Sales Php 24,000,000.00 Php 30,000,000.00 Php 36,000,000.00
Less:
Purchases 22,460,000.00 27,600,000.00 32,875,000.00
Freight 120,000.00 130,000.00 150,000.00
Other Expenses 1,150,000.00 1,379,000.00 1,586,100.00
Interest 200,000.00 200,000.00 200,000.00
23,930,000.00 29,309,000.00 34,811,100.00

Total 70,000.00 691,000.00 1,188,900.00

8.0 Break Even Analysis

Table 5.0 Break Even Analysis

2014 2015 2016

Sales Php 24,000,000.00 Php 30,000,000.00 Php 36,000,000.00
Cost of Sales 22,300,000.00 27,625,000.00 33,200,000.00
Gross Margin 1,770,000.00 2,375,000.00 2,800,000.00
Gross Margin (%) 7.37 7.91 7.77

Total Indirect Costs 1,350,000.00 1,579,000.00 1,786,100.00

Gross Margin 1,770,000.00 2,375,000.00 2,800,000.00
Break Even Point Sales
Level 76.27 66.48 63.78

11| P a g e
 Business
Plan

9.0 Balance Sheet

Table 6.0. Balance Sheet

2014 2015 2016

Asset
Cash Php 2,070,000.00 Php 2,761,000.00 Php 3,949,900.00
Inventory 350,000.00 455,000.00 280,000.00

Total 2,420,000.00 3,216,000.00 4,229,900.00

Liabilities and Capital

Capital 2,000,000.00 2,000,000.00 2,000,000.00
Income 420,000.00 1,216,000.00 2,229,900.00

Total 2,420,000.00 3,216,000.00 4,229,900.00

12| P a g e