An increase in consumption is observed in tonnes.
Innovative bakery is about a production unit and selling point as well. The area on site is already owned. No extra fees required, on that section. Production area of 200sq/m will be applied on site along with 200sq/m selling area 150sq/m parking and 150sq/m storage (approximately).
MARKETING STRATEGY
PRICING POLICY:
• COMPETITION: RATES, MACHINERY, MANUFACTURING COST OF COMPETITORS
• SUPPLIERS: PURCHASING PRICE, LOCATION SUPPLIERS, MEETING NEEDS, SERVICE
• CONSUMER BEHAVIOR
PROMOTION STRATEGY
-Advertising on local radio stations
-Ads in local newspapers, magazines
-Personal contact with tenants
-Brochures
-Internet advertising
-Participation in various social and cultural events in the region, as a sponsor
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There are also chances that the company can take advantage of such as a competitor getting out of the market along with attracting costumers from other areas. Subsidies to renew or get the company bigger is also a possible sAcenario as well as loans on low interest to achieve that. The company should try to prevent new comers onf the particular business in the area along with losing costumers. Furthermore should also be aware for any VAT or general tax increases that will affect the cost of production.
KEY OPERATING POINTS (BENEFITS)
-Wide variety of products and fresh bread
-Production of pure materials
-Competitive prices
-Direct service
-Suitable areas of production
-Clear roles and responsibilities of personnel
-Staff with experience
-Deliveries to customers
-Parking
OPERATING PLAN
*due to suppliers choice:
• COST OF RAW MATERIALS
• LOADING CONDITIONS
• LOCATION SUPPLIERS
• METHOD OF PAYMENT
• QUICK SERVICE
PRICING: COST & SALES
(BASED ON SUPPLIERS GIVEN PRICES)
AVERAGE COST / SELLING PRICE / MAIN COMPETITOR’S
PER UNIT PER UNIT SELLING PRICE
BREAD 0.35 1.30 1.40
NUTS 0.10 0.90 0.95
SWEETS 0.40 1.95 2.05
PIES 0.45 2.10 2.20
HUMAN RESOURCES
DEPARTMENT OF ADMINISTRATION
-FINANCE
-STAFF
PRODUCTION SECTION
-PLANT MACHINERY
-SUPPLIES
-QUALITY
-ORDERS
MARKETING SECTION
-MARKET RESEARCH
-PROMOTION
-SALES
PERSONNEL
-2 BAKERS
-2 ASSISTANTS
-4 SELLERS
-1 DRIVER
PERSONNEL SALARIES
PERSONNEL SALARY/MONTH MONTHS SALARY/YEAR
BAKER 1700 14 23800
BAKER 1700 14 23800
ASSISTANT 845 14 11830
ASSISTANT 845 14 11830
DRIVER 845 14 11830
SELLER 845 14 11830
SELLER 845 14 11830
SELLER 845 14 11830
SELLER 845 14 11830
TOTAL 130410
START-UP EXPENSES
According to the budget of our investment program costs come to 649.300 €.
The investment will be included in the Third Community Support Framework, Operational Programme Peripherals supported indirectly by the EU to enhance new businesses.
The sources of funding are:
A)EQUITY: 40% of the total cost of investment.The amount will be covered by equal participation of the four founders of the company (amount of own funds 25%)
B) SUBSIDY: 27% of the total investment cost.
C) BANK LOAN: 33% of the total investment cost.
EQUITY 259.720 €
SUBSIDY 175.000 €
BANK LOAN 214.580 €
TOTAL : 649.300
• Land 450.000 €
• Building 126.500 €
• Car 20.000 €
• Machinery 52.840 €
• Total: 649.300 €
LOAN:
*The company will get a 10-year 214.580 € loan from the National Bank at a fixed rate of 4.5%. The annual payments come to 26.607,92 € and the total payment will be 266,079.2
FINANCIAL STATEMENT AND PLAN
YEAR PROJECTED GROWTH REVENUE
1 - 615.000
2 7% 658.000
3 9% 717.275
4 11% 796.170
5 13% 899.672
NET RESULTS (PROFIT) FOR THE YEAR: 260680
LESS INCOME TAX: 31281
PROFIT TO SUPPLY: 229399 €
Profits multiplied by 50% and then the rest will be multiplied by the tax rate of 24%.
260680 * 0.50 = 130340
130340 * 0.24 = 31281
*The remaining profits are divided equally (25%) to each member-investor.
2nd YEAR RESULTS:
NET RESULTS (PROFIT) FOR THE YEAR: 294103
LESS INCOME TAX: 35292
PROFIT TO SUPPLY: 258810 €
BREAK EVEN ANALYSIS:
If you can accurately forecast your costs and sales, conducting a breakeven analysis is a matter of simple math. A company has broken even when its total sales or revenues equal its total expenses. At the breakeven point, no profit has been made, nor have any losses been incurred. This calculation is critical for any business owner, because the breakeven point is the lower limit of profit when determining margins.
BREAK EVEN POINT:
BEP=FIXED COSTS/CONTRIBUTION MARGIN *(over contribution per unit)
BEP=68995/0.65=
BEP= 107.684€
