Manna Bakery Business PLAN PDF

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MANNA BAKERY Business Plan & Cash Flow Forecast

PLAN 1. a. b. c.

Company Summary Objectives Mission Company Ownership

2. Market Analysis 3. Industry Analysis 4. Products 5. Strategy & Implementation A. Sales Strategy B. Sales Forecast 6. Management/Executive

7. Finance – Cash Flow Forecast A. B. C. D.

Start-up Summary Personnel Financial Plan Remuneration Projected Cash flow estimate

COMPANY SUMMARY MANNA BAKERY will be located in downtown KUBWA in Abuja the Federal Capital Territory. Kubwa is very popular destination and has a high population density. The district is also a location of all major banks in the country, a major hospital, and several hotels. Kbuwa is a prime location and residence for most of the employees of the nearby district businesses. The bakery will sell different varieties of Bread and other health specific breads, pastries, cakes to the area and other surrounding communities and districts six days a week Monday through Saturday. The close proximity of Kubwa to the major districts makes it an ideal location for a new enterprise or business. OBJECTIVES Our main objective is to establish a first class bakery and patisserie with a café in the storefront. We hope to develop the strong presence in the community needed to support our sales goals. It is our goal to develop our products by rolling them out gradually in the first year of operation. MISSION It is our mission to make MANNA BAKERY a cornerstone in the community by creating a neighbourhood atmosphere where customers feel comfortable and become instant regulars. We are sensitive to the needs of the often overlooked population of health conscious eaters, dieters and people with fat or weight problems. We will cater for their needs for healthy, delicious baked goods. We seek fair and responsible profit, enough to keep the company financially healthy for the long term and to fairly compensate owners and investors for their money and risk. COMPANY OWNERSHIP

MANNA BAKERY is owned by Chiedozie Agwu, Ifeoma Agwu and Onyinye Chiedozie Agwu. Eventually, as the company becomes established, MANNA BAKERY will be trading as Indulge Global Services Ltd, Which will be the parent company of MANNA BAKERY. Indulge Global Services Ltd is a registered limited liability company with Corporate Affairs Commission of Federal Republic of Nigeria on Twenty-Eight day of September, 2009. RC: 846659. TIN: 11101026-0001.

MARKET ANALYSIS Our target market includes people who are health conscious and/or have common food allergies. This is a niche market since there is currently no bakery in Abuja who caters to these needs. A. Market Survey: We conducted a market research/survey around kubwa and its environs. Our survey was done using the traditional method of questions and response. A diverse group of 100 respondents were picked at random for the survey. The purpose and goal of the research was to determine the need for the establishment of a new bakery, competitiveness and the desire of the residents to have one. Our findings and results of the survey were encouraging. 75% of the respondents said there is a need to have a new bakery in the area. 68% said the provision of health conscious products was its main attraction while another 80% felt that the current bakery was grossly inadequate as it is only an outlet. They were particularly fascinated by the fact that the new bakery will produce and sell on site thereby affording them the opportunity of daily fresh products. The survey result proved our assertion that a new bakery is needed in Kubwa. B. Diet Group: For health reasons, many people are warned off certain food by their doctors because of high cholesterol and blood pressure. According to the World Health Organisation, the main killer in the US and other third world countries is Heart Disease. More recently people aged 50+ are going on special diets to prevent heart and other diseases. Our provision of health conscious products like High Fibre Bread and wholemeal baked products will help to decrease the scourge of heart disease and reduce untimely deaths. C. The Allergy Group: One in ten people suffer from a common food allergy and most of it is related to food products, however most bakeries do not cater to their needs.

Target Market Segment While our target market is the entire population of Kubwa and its environs, we will also focus on the allergy group, the diet group and health conscious individuals since they are likely to be the most prevalent and steady customers due to the unique nature of our products and its non-availability elsewhere.

INDUSTRY ANALYSIS MANNA BAKERY competes in the Food Industry which is highly saturated. In addition to competing with other bakeries, it competes with all restaurants, delis and supermarkets for a share of its bread and baked products. We are mostly concerned with competitors who differentiate their products and services with a healthy option focus. Because this group of bakeries is virtually non-existent in our target area of operation, MANNA BAKERY will stand out as a unique entity. Competition Currently, there is only one bakery in kubwa. The Oceanic Bakers Strengths: They only make and sell bread alone. They are a well-established bakery in town; they sell and supplies breads to local shops and the general population in Kubwa and its environs Weaknesses: They are only an outlet of a bakery situated elsewhere, and do not provide a wide variety of products and definitely do not provide health conscious products and baked goods. They sell their bread, Chin Chin and Meat Pie .The texture and flavour of their bread is very dense and flavourless according to our survey respondents. We plan on using high quality white flour which has a texture and flavour similar to wheat. Conclusion: They are not considered a major competitor

PRODUCTS MANNA BAKERY will provide non gluten and baked goods and pastries to diet, health conscious consumers and the general populace of Kubwa and its environs. Special considerations will be made for all common food allergies. We also intend to introduce Cassava Flour Bread. Example of goods:

Bread, Muffins and Pastries

Honey Bread, Coconut Bread, Fish Bread, Banana Bread, and our Special Milk, Butter and Fruit Bread. Cakes & Special Items Wedding and Birthday Cakes, Fruit and Chocolate cakes, Spelt Breads, Muffins and Pastries. Spelt flour is the most common wheat – alternative flour as it has the same characteristics as wheat which provides similar taste, consistency and behaviours creating goods that are just as good as any wheat baked which provides similar taste, consistency and behaviours creating goods that are just as good as any wheat baked good. We will also try dairy free muffins and pastries as well as egg free breads. STRATEGY & IMPLEMENTATION Our strategy will focus on serving the general populace and a niche market with quality goods. Our primary aim is to become the best bakery in Abuja. We are determined to become part of the community – an establishment that becomes as much of the community as a church or local grocery store. To achieve these goals we will provide the following *Quality baked goods for everyone to enjoy at a fair price *Friendly, neighbourhood feel atmosphere *Special diet menus in relation to the advice of doctors and other healthcare providers. A. Sales Strategy Our Strategy focuses on building a customer base by providing good customer experience. With the addition of the café bar and lunch menu in the next few months, we hope to have customers make the bakery their one stop destination for breakfast or lunch. We hope to advertise the bakery in local newspapers and radio stations. We will also consider the distribution of flyers/Leaflets in the neighbourhood. Part of our strategy also includes a test lunch for five days serving customers free bread and other pastries, a road show around Kubwa and its surrounding thereby creating awareness of our opening date. We will employ sales representatives on a performance related payment to visit Schools, Prisons, Hotels and Restaurants to inform them of our presence and products. B .Sales Forecast Our sales forecast assumes the following changes: *Bread and other product sales will be slightly higher during the non-rainy season since more people will be outdoors.

*Bread and pastry sales will be higher in Easter, December, Eid Kabir because of food oriented holidays. * We anticipate constant sales of Iced Beverages all year round especially during the dry sunny months *We expect a huge volume mostly on weekends when people are at home.

SALES FORECAST Year 1

Year 2

Year 3

Breads

N12, 000, 000

N16, 000,000

Beverages

N6, 000,000

N8, 000,000

N10, 500,000

Snacks/Sandwiches-

N8, 000,000

N10, 400,000

N14, 000,000

Total Sales

N26, 000,000

N34, 400,000

N45, 500,000

Sales N21, 000,000

Direct Cost of Sales Year 1

Year 2 N4, 500,000

Year 3

Breads

N3, 000, 000

N6, 500,000

Beverages

N2, 000,000

N2, 666,000

N3, 333,000

Snacks/Sandwiches-

N1, 600,000

N2, 400,000

N2, 800,000

Total Direct cost of Sales N6, 600,000

N9, 566,000

N12, 333,000

MANAGEMENT & EXECUTIVE Management& Staff List: A. Chiedozie Agwu – Chairman/CEO B. Ifeoma Fernandez-Agwu Managing Director C. Onyinye Chiedozie Director D. Victoria Aru – General Manager D. Emmanuel Ekett – Master Baker E. Charles Ogbonna – Assistant Baker F.Blessing Madu – Sales Executive G. Paul William – Driver H. O. Mahmud - Security Officer We recognize the importance of good and experienced management; we have therefore assembled a storm management team. The team is led by Ifeoma Chiedozie Agwu. Ifeoma comes to MANNA BAKERY with over 15 years’ experience in management. In addition to her industry specific experience, she has been a Director of a security outfit in the UK for over 10 years with her husband Mr Chiedozie Agwu. Ifeoma has a wealth of experience as she has a higher diploma in catering and hotel management. She worked in Lagos Sheraton Hotel, British Telecommunications restaurant in London, The Guardian News papers restaurant in London etc.

Mr Emmanuel Eket our chief baker has over 15 years of baking experience. He has worked in Eko Holiday Inn in Lagos as an assistant baker; he worked in Shoprite Lagos and other reputable establishments to mention a few. Charles Ogbonna the assistant baker has over 10 years’ experience in the industry. Our amiable General Manager Victoria Aru will lead the marketing efforts having participated in the sales management of Indulge Boutique a high brow clothes shop in Abuja. MANNA BAKERY is an exciting opportunity that combines fresh baked goods and healthy option products addressing the recent need for these new products. Demand for these products is expected to grow exponentially as medical doctors and health professionals become more and more aware of food allergies Nigerians are afflicted with. Profitability is forecasted to occur by month 3. Through a combination of strong management team, a solid business model, and exciting market demanded products will allow Manna Bakery to quickly gain market penetration and cash richness.

PERSONNEL FINANCE PLAN Once the bakery becomes established and the cash flow is steady, we would like to hire one person for counter help and another assistant baker. The table below illustrates the needs of current employees within three months of operation. Personnel Financial Plan Year 1

Year2

Ifeoma Fernandez Director

N1, 200,000

N1, 450,000

N1, 600,000

Chiedozie Agwu Director

N1, 800,000

N2, 000,000

N2, 250,000

Emman Eket Chief Baker

N600, 000

N700, 000

N800, 000

Charles Ogbonna Asst Baker

N480, 000

N550, 000

N650, 000

Blessing Madu Sales Exect

N240, 000

N290, 000

N365, 000

Paul William Driver

N420, 000

N480, 000

N580, 000

O. Mamudu Security

N216, 000

N246, 000

N296, 000

Victoria Aru Gen Manager

N660, 000

N735, 000

Total People Total Payroll

8 N5, 616,000

Year3

N850, 000

8

8

N6, 451,000

N7, 391,000

FINANCE Start Up Summary: The primary expense to establish Manna Bakery is N10, 000,000. This cost is calculated on the N5, 000,000 loan estimate and N5, 000,000 owners capital investment. Chiedozie Agwu and Ifeoma Agwu intend to invest N5, 000,000 of their savings to cover the other cost of start-up. This amount represents the owner’s investment. Start Up Requirements Start-up Expenses Legal

N50, 000

Stationary etc.

N10, 000

Brochures

N25, 000

Consultants

N0.00

Insurance

N50, 000

Mortgage

N0.00

Research & Development

N0.00

Bakery Ingredients

N100, 000

Other

N10, 000

Total Start Up Expenses

N245, 000

Start-up Assets Cash Required

N5, 000,000

Other Current Assets

N0.00

Long Term Assets

N5, 000, 000

Total Assets

N10, 000,000

Total Requirements

N10, 245,000

Start Up Funding Start Up Expenses to Fund

N245, 000

Start-up Assets to Fund

N5, 000,000

Total Funding Required

N5, 245,000

Assets Non Cash Assets from Start up

N5, 000,000

Cash Requirements from Start-up

N5, 000,000

Additional Cash Raised

N0.00

Cash Balance on Starting Day

N5, 000,000

Total Assets

N10, 000,000

Liabilities and Capital Liabilities Current Borrowing

N0.00

Long term Liabilities

N5, 000,000

Accounts Payable (Outstanding Bills)

N0.00

Other Current Liabilities (Interest Free)

N245, 000

Total Liabilities

N5, 245,000

Capital - Planned Investment Untied

N0.00

Chiedozie Agwu

N5, 000,000

Other

N0.00

Additional Investment Required

N0.00

Total Planned Investment

N5, 000,000

Loss at Start up (Start-up Expenses

N245, 000

Total Capital

N4, 755,000

Total Capital and Liabilities

N5, 245,000

Total Funding

N10, 245,000

CASH FLOW FORECAST Ratio Analysis YEAR 1

YEAR 2

YEAR 3

0.00%

30%

75%

15.14% 84..86% 15.4% 84.86% 100% 12.98% 98.58% 96.59% 1.41%

25.5% 79,90% 25.195 74.90% 100% 12.08% 89.19% 89.19% 10.81%

39.4% 60.06% 39.94% 60.06% 100% 11.07% 74.23% 74.23% 25.77%

Sales 100% Gross Margin 64.14% Gen Admin Expenses 64.14% Advertising Expenses 4.13% Profit Before Interest& 35.00% Taxes

100% 75% 57.51% 3.70% 50%%

100% 100% 52.56% 52.56% 75.00%

1.17% 98.59% 10.28% 0.15% 0.10% 26.84%

2.08% 89.18% 117.61% 12.71% 30% 88.20%

3.61% 74.23% 88.05% 22.69% 75% 65.67%

10.00% 27 27

12.17% 30 29

12.17% 45 27

Sales Growth Percent of Total Assets Total Current Assets Long Term Assets Total Assets Long Term Assets

Total Assets Current Liabilities Long Term Liabilities

Total Liabilities Net Worth

Percent of Sales

Ratios Current Debts to Total Assets Pre Tax on Net Worth Pre Tax Return Assets Net Profit Margin Return on Equity

Activity Ratios Accts Payable Turnover Payment Days Total Assets Turnover

Debt Ratios Debt to Net Worth Current Liab to Liability

69.68 0.13

8.25 0.14

2.88 0.15

N5,000,000 1.02

N6,500.000 2.94

N8,750,000 5.23

2.94 12%

5.23 115

2.08 75% 0.00

3.61 125 0.00

YEAR 1

YEAR2

YEAR 3

N26,000,000

N34,000,0000

N45,500,000

N26,000,000

N34,000,000

N45,500,00

N0.00 N0.00 N0.00 N0.00 N0.00 N0.00 N0.00 N26,000.000

N0.00 N0.00 N0.00 N0.00 N0.00 N0.00 N0.00 N34,000,000

N0.00 N0.00 N0.00 N0.00 N0.00 N0.00 N0.00 N45,500,000

N6,600,000 N5,616,000 N12,216,000

N9,566,000 N6,451,000 N16,017,000

N12,333,000 N7,391,000 N19,724,000

N0.00

N0.00

N0.00

N1,666,000 N0.00 N0.00

N1,666,000 N0.00 N0.00

N1,666,000 N0.00 N0.00

N0.00

N0.00

N0.00

N5,000,000

N.00

N0.00

Liquidity Ratios Net Working Capital Interest Coverage

Additional Ratios Assets to Sales 1.02 Current Debt Total 13% Assets Acid Test 1.17% Sales Net Worth 88.03 Dividend Pay Out 0.00

PRO FORMA CASH FLOW Cash Received Cash From Operations Cash Sales Sub Total Cash from Operations

Additional Cash Rcvd Sales Tax,VAT Received Current Borrowing Other Liabilities Long Term Liabilities Sales of Current Assets Sales Long Term Assets New Investment Rcvd

Sub Total Cash Rcvd EXPENDITURES Expenditures from Ops Cost of Production Salaries Sub Total on Operation Additional Cash Spent Sales Tax,VAT Paid Out Principal Repayment of Current Borrowing Other Liabilities Paymt Long Term Payments Purchase Other Current Assets Assets Long Term Purchase

Dividends SUB TOTAL CASH

N0.00 N18,000,000

N0.00 N17,683,666

N0.00 N21,390,666...