ArtMoon Cake Shop Business Plan

This report discusses the business plan of ArtMoon, a cake shop in the UK market. It covers the products and services offered, target customers, competitors, skills analysis, projected profit and loss accounts, cash flow forecasting, sources of funding, obtaining resources with a budget, type of organization, and vision of the business idea.

ENTERPRISE AND
ENTREPRENEURSHIP

EXECUTIVE SUMMARY
The report aims at discussing the business plan, and with this regard all key dimensions
such as, customers, competitors, offered services and projected profit and loss accounts, cash
flow statement. The report will examine relevance of the idea, and present all key dimensions.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................3
BUSINESS PLAN...........................................................................................................................3
Products and services offered by the business.............................................................................3
Customers....................................................................................................................................3
Competitors..................................................................................................................................4
Skills Analysis.............................................................................................................................4
Projected 2 years’ profit and loss accounts-................................................................................4
Projected 2 years’ cash flow forecasting-....................................................................................5
BEP-.............................................................................................................................................6
Sources of funding.......................................................................................................................6
Obtaining the resources with a budget of the start-up costs........................................................7
Type of organization and the different management systems which a required to control the
business effectively......................................................................................................................7
Vision of business idea................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Entrepreneurship is referred as an activity of setting up a business and taking all the financial
risks and responsibilities for increasing the profitability of the organization. The current report will be
based on ArtMoon, which is a cake shop that is the new proposed business idea. This report will include a
business plan detailing its various features in order to develop an idea of the sustainability of the business.
BUSINESS PLAN
Products and services offered by the business
The ArtMoon is an attractive cake shop business which will be established in the UK market for
providing the audience with a better experience of unique and tasty bakery items. The proposed future
business will provide high quality and creatively designed cakes for the customers in order to increase the
popularity of the new business. The cake shop will prepare customized products according to the needs of
the customers (Audretsch and Moog, 2022). The Chef's will use different decorative ingredients in order
to provide a better experience to the customers. Innovative and new ideas will be considered by the
business for preparing different types and shapes of cakes for the customers. ArtMoon will apply for the
intellectual property rights for the unique recipes that are be prepared by the business. It will be useful for
the business to have authority over their innovations and secure their overall growth.
Customers
The consumers of the UK region are defined as the potential customers of the organization. The
organization will establish their business in the UK market and will provide their products and services of
the people who are active in the market. The people from all ages, genders and other criteria are targeted
by the organization as cake is a highly common product in the market which is purchased by a majority of
people on a regular basis. It will a B2C business and the products will be directly made available to the
customers by analysing their demands. The customized options for the customers is the USP of the
products that are offered to the customers (Chowdhury, Audretsch and Belitski, 2019). ArtMoon will
innovate attractive and unique recipes for increasing their demand in the market. This business is in trend
in the modern day scenario as it allows the consumers to get their desired products and enhance their
experience. Various ideas such as face printed cakes, flavoured cakes, shaped cakes etc. will be developed
by the organization in order to improve the engagement of the customers towards the products.

Competitors
The major competitors of the business are the other cake shops which are available in the market
if UK and related with selling different types of cakes in the market. This industry may have a lot of
organizations who are operating a cake shop as it requires less investment in comparison with other
industries. The competitors may have a significant market share in the industry due to the huge demand of
the cakes in the market. They may have a significant place in the market which may have a negative
impact on the growth of the organization. ArtMoon will target the customers effectively and provide them
with various additional services which is not provided by the competitors (Doern, Williams and Vorley,
2019). The organization will provide customizing options to the customers and recruit professional chefs
for preparing the cakes which may attract the customers towards the cake shop. These services may be
helpful in having a better market image and increase the engagement of the customers towards the
products that are offered by the new business.
Skills Analysis
ArtMoon has the ability to provide an enhanced customer experience to their target market. It will
provide better marketing campaigns of the business on various popular social media channels in order to
increase the popularity of the new business in the market (Wadhwani and et.al., 2020). These techniques
will be helpful for the organization in order to improve the interest of the customers towards buying
products of from the cake shop. The management may employ highly skilled Chefs who will prepare
attractive and tasty recipes for the customers in order to increase the demand of the cakes in the market.
This will be useful for the business in order top gain better recognition among the customers.
Projected 2 years’ profit and loss accounts-
particulars Amount for the
year 2023
Amount for
the year 2024
To bank charges
To salary of employee
To marketing
To advertisement expenditures
To rent
To loss on sale of assets
To depreciation
To miscellaneous charges
Total expenditures
6000
8000
7500
4000
12500
1000
300
1200
40500
6500
1600
11000
5500
14000
500
330
1300
40730

To gross profit
To income from investment
Total revenue for the year
45000
25000
70000
55000
30000
85000
Net projected profit for the year 29500 44270
Projected 2 years’ cash flow forecasting-
2023 2024
Cash flows from operating activities for the
year
Net Income form business
Adjustments pertaining to operating activities
Depreciation and amortization
Loss on sale of equipment
Changes in current assets and liabilities-
Increase in current assets
Decrease in current liabilities
Net cash provided by operating activities
Cash flows from investing activities
Lease expenditure
Net cash used for investing activities
Cash flows from financing activities
Amount generated from issuing debentures
Net cash provided by financing activities
29500
300
1000
-520
2000
32280
-3000
-3000
-
-
44270
330
500
-600
2500
47000
-2500
-2500
50000
50000

Net increase in cash during the year
Cash at the beginning of the year
Cash at the end of the year
12000
41280
41280
185780
BEP-
BEP refers to the point of sales where business experiences stagnant position, it generates
no profit and loss.
The entity is having a new and drastic idea so the BEP would be very lower for it. Even as per
the proposed profit and loss accounts it could be deciphered that it may be making profits even in
the first year of its operations.
BEP for the entity is very down which cost for the year and if the company generates revenues more than
five lacs then would be in profit so it is break-even point for the first year.
Sources of funding
There are different sources of funding that may be suitable for the business in order to manage
their work appropriately. ArtMoon may consider taking the funding from the personal investments of the
entrepreneur, it may be useful for the business in order to earn significant share of profits with the help of
this funding source. It will provide stability to the business and the organization may be able to reduce the
risks that may frequently arise. The organization will also ask for funding from the Angel investors as
they may provide support and help in managing the risks of the business efficiently ( Olanrewaju and
et.al., 2020). These funding sources may be appropriate for the business for establishing better practices
and organize their profits effectively. The cake shop will be able to gain better productivity of their

financial record are appropriately managed by them. It is useful for the organization in order to gain
advantage in the industry and manage their overall business practices appropriately.
Obtaining the resources with a budget of the start-up costs
There are various resources and expenses that may be incurred by the business in order to
purchase the resources and other assets which are important in order to establish the cake shop. These
expenses may be important in order to sources all the required resources and elements that are crucial for
the business to achieve future growth. An effective budget will explain what may be required by the
business in order to allocate these resources effectively.
Particulars Amount(€)
Equipments 2000
Rent 10000
Raw Material 5000
Salary 8000
Incorporation Fees 7500
TOTAL 32500
Type of organization and the different management systems which a required to control the business
effectively
The business will be a sole proprietorship business and all the crucial decisions of the
organization will be taken by the owner itself. The owner will invest his own capital and acquire funding
by the investors in order to improve the future growth of the business. Different management systems
may be introduced by the organization in their business environment in order to control the business
activities of the staff members working in the cake shop (Ratten and Usmanij, 2021). There are several
activities that are that may be monitored by ArtMoon with the help of advanced technological tools that
are useful in order to improve the overall performance of the business. These information systems may be
useful for the business to control their overall activities and increase quality of their products. The
management may be able to provide the staff members with adequate feedback which can be helpful in
order to gain better advantage and reduce the pressure from the employees.
Vision of business idea
The purpose of ArtMoon is to provide customizable cakes to the customers and increase its
markets share in the UK. The organization will expand its services and open various franchises of the
cake shop in the country in order to increase the reach of the business in the market.

CONCLUSION
According to the above report it has been concluded that the new business that will be launched
can be benefited by analysing their existing skills and gaining better output in the idustry. It will be
helpful for the organization to monitor their practices with the help of certain advanced technological
tools that are useful for the business.

REFERENCES
Books and journals
Audretsch, D.B. and Moog, P., 2022. Democracy and entrepreneurship. Entrepreneurship Theory and
Practice. 46(2). pp.368-392.
Chowdhury, F., Audretsch, D.B. and Belitski, M., 2019. Institutions and entrepreneurship
quality. Entrepreneurship Theory and Practice. 43(1). pp.51-81.
Doern, R., Williams, N. and Vorley, T., 2019. Special issue on entrepreneurship and crises: business as
usual? An introduction and review of the literature. Entrepreneurship & Regional
Development. 31(5-6). pp.400-412.
Olanrewaju, A.S.T. and et.al., 2020. Social media and entrepreneurship research: A literature
review. International Journal of Information Management. 50. pp.90-110.
Ratten, V. and Usmanij, P., 2021. Entrepreneurship education: Time for a change in research
direction?. The International Journal of Management Education. 19(1). p.100367.
Wadhwani, R.D. and et.al., 2020. Context, time, and change: Historical approaches to entrepreneurship
research. Strategic Entrepreneurship Journal. 14(1). pp.3-19.