Title name: Business Plan for Running a Cake Shop
Assignment name: Financial Literacy
Word count: 2535
Table of Contents
Executive summary........................................................................................................... 3
Introduction..................................................................................................................... 4
1. System used to record financial records......................................................................... 4
2. Marketing.................................................................................................................... 4
2.1. Products or services to be offered........................................................................... 4
2.2. Target market / customers...................................................................................... 5
2.3. Industry (competitors)........................................................................................... 5
2.4. Location.............................................................................................................. 6
3. Operations................................................................................................................... 6
3.1. Types of financial services your business will need................................................... 6
3.2. Hiring and staff requirements................................................................................. 7
3.3. Production / assets required................................................................................... 7
4. Financial Management................................................................................................. 7
4.1. Identification of financial goals.............................................................................. 7
4.2. Evaluation of risks................................................................................................ 8
4.3. Yearly Budget...................................................................................................... 9
4.4. Cash Flow Statement........................................................................................... 10
4.5. Outline of funding needs..................................................................................... 10
4.6. Investment proposals........................................................................................... 11
5.Concluding statements................................................................................................. 12
References...................................................................................................................... 13
Executive summary
People in Australia attach a great importance on “eating ”. Eating is a very important thing in this country. Color, smell and flavor are three significant criteria in evaluating dishes. Many people in this country have found great opportunities to come here to earn their living by opening restaurants, coffee bars and cake shops. In addition, many upscale people favor eating western desserts such as macorons and cakes. Based on this, a French cake shop named Sweet Castle decided to open a cake shop in Melbourne. There is estimated that it will develop prospectively. As Fleming(2005) said location is very important for a new shop. Since location is a very important factor in opening a cake shop, the Sweet Castle should be conscious in selecting the premise. This cake shop is decided to be located in Brunswick Street because there is a large of population flow in this place.
This business plan aims at analyzing every aspect in opening a cake shop in Brunswick Street, including a general introduction and description of this project, System used to record financial records, marketing which includes products or services to be offered, target market, industry and location, operations which includes types of financial services your business will need, hiring and staff requirements and production or assets required, financial management which includes identification of financial goals, evaluation of risks, yearly budget, cash flow statement, outline of funding needs, investment proposals and concluding statements, and finally, concluding statements.
The main achievement of this plan report is that it demonstrates all the steps from its inception to its proper closing. The conclusion of this business plan is that the restaurant should take all the possible risks into consideration in order to prevent all the problems from happening. By doing this, the plan would bring a successful complement of this project.
代写英文论文:Business Plan for Running a Cake Shop Assignment name: Financial Literacy代写
Introduction
A cake shop named Sweet Castle plans to open in Brunswick Street in Melbourne, with a capacity of serving 20 guests. It plans to provide dessert like cakes, Macarons, and bread, and provide drink such as coffee, cocoa and hot chocolate. It has been estimated that this restaurant will be liked by many people in this place.This potential customers of this shop mainly includes white collars, travelers and high-spending groups.
Sweet Castle is a famous cake shop in Paris, France. It has more than 10 subbranches in France, providing traditional desserts as well as novel dessert. It not only attracts regular customers who like to eat traditional cakes and breads, but also catches new customers’ eye on their novel products. It offers dessert for retail and provide dessert for receptions. Customers can taste desserts in the cake shop, listening to light music and smelling the fragrance of the dessert. People like to reading and chatting in this shop in the morning, afternoon and evening. it is a super place to unwind.
1. System used to record financial records
The financial system consists of individuals, companies, markets, and governments that are involved in the process of exchanging financial assets. The main source of a company’s finance are intermediaries of finance in Australia. The banks in Australia attracts more customers. However, other customers prefer to insurance services. Financial intermediaries make a profit from other customers and earn interest. This plan will choose a suitable system to record financial records.
2. Marketing
2.1. Products or services to be offered
Sweet Castle, as it is said before, is cake shop, providing a capacity for about 20 people. It has some products and services that are provided as the same as other cake shops. At the same time, it provides products and services that are not the same as other cake shops. The main products of this cake shop are cakes, egg tarts, Macarons, breads and other western dessert. It also offer drink such as coffee, cocoa and chocolate. The raw material are imported from the best industry. For example, this cake shop imports chocolate from Bernachon, a famous cake shop in Paris, and imports wheatmeal from Granoro, a noted wheatmeal factory in Italy.
This cake shop also proved services of letting customers choose their favorite light music played in this cake shop. It also offers various kinds of magazines for customers to reading. Free WiFi is offered in this shop for customers who wants to do some things in the internet. The best feature of Sweet Castle is that it displays artworks made of colorful sugar paste. In its shopwindow, people who walk past by or who come in this shop can see lovely dolls, handbags, toy cars and other adorable things that made of sugar paste. Customers could taste desserts and enjoying this art work, or they could even purchase them and bring them home. Aside from that, this cake shop provides services for receptions and parties.
2.2. Target market / customers
Sweet Castle decides to located in Brunswick Street, aiming at high-spending customers, such as white collars who go to work in a hurry in the morning and favor eating a fast breakfast, and businessmen who know about the famous food in this street and like to meet their client in this cake shop. Travelers are also the target of this cake shop. Because Brunswick Street is very famous for its food in Melbourne, many travelers are eager to have some food to taste in this street. Therefore, this cake shop may attract a lot of travelers, businessmen and white collars.
2.3. Industry (competitors)
As is well known to all, it is never a lacking of cake shops in Melbourne. People in Melbourne like to eat dessert, so there are many famous cake shops in this city such as Monarch Cake Shop in Acland Street and other cake shops. It is not a easy task to compete with other famous cake shops for the reason that those shops are well known for the people in this place and have regular customers. Cake shops in this city are of slight differences, so the only way to be outstanding of this new cake shop is to highlight its differences and characteristics.
As said before, the this shop is of French style. It provides dessert and drink made by French cooks. All the raw material are provided by the best makers all over the world. There are a lot of artworks made of sugar paste in the shopwindow. People who just past by will be attracted by the vivid artwork and come into the shop. Customers who wants to book a cake for birthday could design on their own, and then the professional cooks will make the same cake as he/she designed. It is estimated that this service will attracts a lot of customers.
2.4. Location
Sweet Castle decide to open Brunswick Street in Melbourne. Brunswick Street is famous for its food from all over the globe in Melbourne. Brunswick Street is a prosperous food street, offering various kinds of food from all over the world. Being famous for its food, this street attracts more customers. Aside from many traditional Australian food, this street provide many food shop famous for their Indian food and Italian food. So Sweet Castle seized this chance and decides to open such a cake shop in this street.
3. Operations
3.1. Types of financial services your business will need
The aim to choose financial services is that the cake shop should search for a financial institution to manage its fund, investment and profits. This shop can use checking accounts which is also called demand deposits because this company always needs flow cash. Asset management account is also in demand. This is also called a cash management. Companies offered this service to provide a complete process of financial services program which includes checking account and ATM card, credit card, access to a variety of investments, credit for quick cash loans and online banking. (Thomas,T. 2009) Because this type of financial service is more suitable to this situation and it is estimated that the company will run soothly with this kind of financial service.
3.2. Hiring and staff requirements
Sweet Castle will recruit twelve employees, including one manager, four French cooks, two coffee makers and five waitresses or waiters. The manager that the shop will recruit should be professional in his/her management skills and rich in management experience. The four cooks should be expert in cooking French dessert, breads and macorons. The two coffee makers should be acquainted with operating the machine of coffee maker and be expert in making tasty coffee, cocoa and hot chocolate. The waitresses/waiters should be rich in their experience of working in cake shops. This shop will train them for about two weeks.
3.3. Production / assets required
There are a lot of things to purchase before this cake shop is open. First of all, the shop should be well decorated. A good decoration needs raw materials such as lumbers, light, ceilings, windows and so on. It also needs designation and labors. Tables, chairs and a cash register is also in demand. In the kitchen, kitchen stoves, refrigerators, kitchen waves, coffee machines and air conditioner is in need. This shop take all those things into consideration.
4. Financial Management
4.1. Identification of financial goals
In this part, this report will plan intermediate financial goals. It is estimated that this shop will make profit in about one and half year and has all the investment returned in about two years. This cake shop needs $20,000 to rent for two years, $28,000 for decoration, $3,400 for purchasing equipment,$93,000 for operating budget and $20,000 for floating capital. Therefore the total cost will be $165,000. Therefore, the cake shop will ask Mr Baulk for about $200,000. Because this company needs extra cash to deal with unexpected risks and problems.
Private investors are willing to help the company to run smoothly. (Harold K. 2003) This kind of investment covers all aspects and all steps of the growth of this company, including seed stage, development stage, enlargement stage and mature period. This type of investment will give a hand to the development of this cake shop, and other kind of investment can not do that. That is why Sweet Castle are seeking funding from a private investor rather than borrowing money from a financial institution.
4.2. Evaluation of risks
Before putting this detailed plan into practice, this shop should consider all the conditions that it may encounter.(Bent et al 2002) The possible risks and problems are the most important factors that it should take into considerations. Following problems may be factors that may influence the project’s success.
Firstly, the newly recruited employers should be took into considerations. They may be liabilities when they are not satisfied with the salaries that the restaurant give them, or when they are not content with the surroundings in the restaurant. Bigger problems may be caused when the new waitresses or waiters are not good at their jobs or when the cooks are not professional in cooking dessert. In addition,The delivery of raw materials is also a problem. When they are delayed in delivering them, the decoration schedule may be changed, which will cause the delay of the opening ceremony. Training new employees is a big problem for a new restaurant. To train a eligible employee of an cake shop is not an easy task and it takes a lot of time. Moreover, there are also other risks that the restaurant should consider. Some dessert may be not to guests’ liking. The decoration materials in the room may not live up to its price and quality.
To avoid those risks, much work should be done. The first step is that the managers should get some information about the recruits’ mind and make sure that the new employees are content with the wages and are acquited with their jobs. As Stallman (2005) said, preparing alternative plan in case the unexpected dangers actually happen is always a good way. So the second step is that the manager should make a detail schedule and make plan B in case the raw materials will not arrive on time and the contact will not be signed on schedule. The third step is that a market research should be conducted in focusing on different taste of different customers with different culture.
4.3. Yearly Budget
Yearly Budget for Sweet Castle
Financial goals: to make profits and to reduce loss
Income (cash inflows) budgeted Amounts Actual Amount Variance
(dollars) (percent)
Investment 200.000 74 200,000 ﹣
Earning from selling products 70,000 26 70,000 ﹣
Total income 270,000 100 270,000 ﹣
Cash Outflows
Salaries 13,000 28 13,000 ﹣
Utilities 500 1 510 +10
Internet access fee 250 0.5 241 +11
Equipment service 250 0.5 240 +10
Telephone bill 300 0.6 280 +20
Stock 2,500 5.4 2,600 ﹣100
Marketing 15,000 32 15,000 ﹣
Advertising 15,000 32 15,000 ﹣
Total expenditure 46,800 100 46,800 ﹣49
4.4. Cash Flow Statement
Cash Flow Statement Within The First Two Years
Income (cash inflows)
Investment 200.000
Earning from selling products 150,000
Total income $350,000
Cash Outflows
Salaries 26,000
Utilities 1,000
Internet access fee 500
Equipment service 500
Telephone bill 600
Stock 5,000
Marketing 30,000
Advertising 30,000
Total expenditure $93,600
4.5. Outline of funding needs
Rental cost: The new premises would cost $ 20,000 to rent for the first two years.
Decorating: The purchase of decoration material and the expense of design would be $28,000.
Layout Costs 500
Manual Labor 4,000
Glasses 4,500
Ceiling 5,000
Wall 2,000
Cement 1,000
Timber 5,000
Instrument 1,500
Equipment: The cost of equipment in the restaurant would be $ 5,400
Kitchenwares 2,000
POS 200
Telephone 100
Table and chair 1,000
Coffee machine 100
Refrigerator 1,000
Air conditioner 1,000
Budgets: The operating budget would be
$ 93,600 for a year
Salaries 26,000
Utilities 1,000
Internet access fee 500
Equipment service 500
Telephone bill 600
Stock 5,000
Marketing 30,000
Advertising 30,000
Floating capital: the demand of $20, 000 of the floating capital.
TOTAL COST OF PROJECT
|
Initial costs:
|
Decoration |
28,000 |
|
Equipment |
3,400 |
|
SUB-TOTAL |
$31,400 |
|
Recurrent cost |
Rental |
20,000 |
|
Operating budget |
93,600 |
|
Floating capital |
20,000 |
|
SUB-TOTAL |
$133,600 |
|
TOTAL COST |
$165,000
|
4.6. Investment proposals
The most important thing before doing investment proposals is to identify factors that reduce investment risk. The first two things that the cake shop should take into consideration are asset allocation and diversification. The process of spreading the company’s fundings and assets among many different kinds of investments is called asset allocation. Diversification a process which includes stocks, real-estate, risk-free assets and bonds. Therefore, the investment proposals of Sweet Castle should help the company to make more profits.
5.Concluding statements
This business plan analyzed many aspect about cake shop opening in Brunswick Street. The cake shop is a cake shop, aiming at the high-spending customers. This paper makes a plan in the following aspect: a general introduction and description of this project, System used to record financial records, marketing, operations, financial management and finally, concluding statements. The conclusion of this business plan is that the restaurant should consider all the possible risks so that it can avoid some or all of the possible risks. By doing so, the project is more likely to be successful.
代写英文论文:Business Plan for Running a Cake Shop Assignment name: Financial Literacy代写
References
Bent F., Mette S. H. and Buhl S.(2002)
Underestimating Costs in Public Works Projects: Error or Lie?London: Routledge.
Fleming, Q. (2005)
Earned Value Project Management. 3rd Edition. Project Management Institute.
Harold K. (2003)
Project Management: A Systems Approach to Planning, Scheduling, and Controlling. 8th Edition. London: Wiley.
Stallman, G.(2005),
Applied Software Project Management. New York:O'Reilly press.
Thomas,T. (2009)
Cultivating a Healthy Project Schedule. New York: Prentice-Hall.
