Mr. Happy's Bakery & Cafe Business Plan

This project is a detailed business plan for a new bakery and cafe venture called Mr. Happy's Bakery & Cafe. It covers various aspects of starting a business, including market research, ethical considerations, compliance with equality and diversity laws, and financial projections. The plan also includes a budget plan to avoid cash flow issues.

Business Plan

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
Summary of business plan.......................................................................................................................3
TASK 2.......................................................................................................................................................5
Market research.......................................................................................................................................5
TASK 3.......................................................................................................................................................6
Ethical dilemma.......................................................................................................................................6
TASK 4.......................................................................................................................................................7
How organization will comply with equality and diversity laws. What rights will be given to employees
of Mr. Happy Bakery & Cafe?.................................................................................................................7
TASK 5.......................................................................................................................................................8
Describe business assets, liabilities, expenses, gains and alos budget plan for avoiding issues of cash
flow.........................................................................................................................................................8
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................11

INTRODUCTION
Business plan refers to a formal written document which contains goals of a business and
ways in which these goals can be attained within stipulated time frame (Bell, Bryman and
Harley, 2018). Moreover, it also describes what kind of business it is, background information
about organization, financial projections and strategies for attaining its targets. It acts as a road
map which will provide guidelines to business. This assignment is based on general idea of new
business venture, Cafeteria. This report consists of business plan, market research, ethical
dilemma, equality and diversity law. At last, financial aspects of business are provided.
TASK 1
Summary of business plan
Setting up a business is not an easy task as it involves lots of efforts, time and money.
Along with this effective knowledge and experience is required in sector in which business is
about to be started (Business Plans, 2018). In this a venture is to be launched after identifying
appropriate industry, location where it can be launched, its potential customers’ and business
model. Each element is specified below:
Industry: When individual or group of members is opting to start a business, it is
necessary for them to analyse which sector or industry they want to enter into. This assessment is
based on Bakery & Cafeteria industry. It will also provide entertainment facilities to their
customers’ and they can also have customization options in their bakery products.
Location: This bakery & café will be started in central part of England where people
usually comes and magnetism is high. Furthermore, it is essential for its owners to identify legal
and jurisdictional obligations which are inclined with location. It is necessary so that they do not
lay into any kind of legal trouble.
Target customers’: Its potential customers’ will be in between 18 to 60 years. Reason behind
this is that youth are highest customers’ of cafeteria and middle age is taken into consideration
due to bakery as sweet teeth can fascinate this group more. There is no specific customer group
but when people have options for customization then they can opt for fruit cakes more and

reason behind this is that at present scenario people are becoming more health conscious
(Brinckmann and Kim, 2015). Moreover, price also plays an important role, it must be
reasonable with respect to services provided to their customers. Customers’ will be attracted
towards or will come to know through advertisements which will be displayed on pamphlets,
social media, television, newspapers, etc. The management will conduct a research to analyse
what customers’ need and accordingly formulate and design their products. This will not be easy
but it is mandatory so that they can have customers’.
Business model: It comprises of ways in which funds can be raised, stakeholders,
identifying potential customers, what all products can be offered, suppliers and ways in which
revenue can be generated. Products of this bakery and cafe include fruit cakes and biscuits as per
demand of customers, snacks, coffee and tea (organic and herbal). Prices will be reasonable so
that they can reach more number of customers. Main focus of this venture will be to satisfy
customers’ need as health conscious people have fewer options.
Name of business: Mr. Happy’s Bakery & Café is apt for this. As people will be satisfied
while they will opt for services offered by them which will eventually make them happy (Burns
and Dewhurst, 2016).
Visual identity of Mr. Happy’s Bakery & Café will be their logo. It will create positive impact on
people and customers will identify its services by their logo. The attraction part of logo will be a
smiley with hat. It is essential to have certain values and norms linked with business to have
positive and reflective image within market.

Figure 1 Logo
(Source: Self generated)
Furthermore, management of this bakery & cafe will focus on creating values by focusing
on protecting environment by ensuring that eco friendly products are used and waste is dumped
appropriately so that there is no harm to environment. Management wants to set an example that
by this way also things can be carried out. These values can be attained by taking effective
measures by which waste can be avoided and ensure that resources are used as per requirement
so that any kind of wastage do not occur (Council, 2016). They need to focus on creating a social
and cultural welfare by considering different norms set by government of UK and also takes into
consideration preferences and their choices. This will have overall positive impact on society as
well as requirements of customers’ will also be satisfied.
TASK 2
Market research
Primary research: This method refers to collection of data from primary sources which
mean that fresh data is collected. In this scenario, research is conducted to analyse preferences

and taste of customers’ towards bakery & café products and what all kind of snacks they mostly
prefer to have. For this, management of Mr. Happy needs to conduct survey by which they can
identify actual demands of customers’ of England. By this they will be able to acknowledge their
requirements and accordingly formulate strategies (The Difference Between Primary and
Secondary Research. 2018).
Secondary research: This method refers to collection of data from internet, journal,
newspaper, etc. This data has already been gathered and present somewhere. This is done to
understand their customer. Observations will be conducted to identify size of market and their
potential customers so that their business can grow. This research will provide management of
Mr. Happy bakery & café with exact information and this will assist them to implement their
strategies by which they can obtain higher levels of customers’ satisfaction.
Quantitative research: Survey will be conducted to have exact figures of number of potential
customers’ available and will be targeted by analysing their taste and preferences in context of
bakery & cafe products. This kind of research is signifies facts on basis of numbers rather than
quality to reach at compelling conclusion. Information is investigated for attaining results for
specific number of people (Kiznyte, Welker and Dechange, 2016).
Qualitative research: Focus of this research is on quality rather than quantity. Business
scope can be attained by this type of research as it deals with quality and it is one of the major
driving forces. By this quality results can be obtained as accurate information can be received
which is published in journals, books and articles. For conducting qualitative research market-in-
sight tool can be used by management of Mr. Happy bakery & cafe to identify their future scope
within market of UK. Furthermore, it will also assist to gain insight into competitors in same
industry (Kusumaningrum and Hidayat, 2016).
TASK 3
Ethical dilemma
There are certain issues which can arise but major one is ethical dilemma. In this, its
about collaboration with organization which harass, bully and discriminate their employees. Mr.
Happy should not carry out this partnership as it is not ethical. It will create negative impact on

minds of employees which will lead to decline in their performance. Mr. Happy inspires equality
and societal development; it must start from their own working premises. For this they need to
ensure certain objectives which are linked with sociality and equality. When they will collaborate
with such organization then they will not be able to attain their objectives which were promotion
of equality. Furthermore, it will demotivate their employees and will also create sense of job
insecurity among them. This will have adverse impact on performance of employees and also on
overall performance of Mr. Happy. This will spoil their image within market. Therefore, it is
essential that they should not collaborate with such organization. This will lead to strong
dedication of employees towards their work and they will have feeling of job security which will
have direct positive impact on their performance. An example can be taken, in recent case in
France and Belgium employee discrimination has occurred. This was based on dressing styles of
their employees, organization has banned religious outfits which includes Muslims headscarves.
The European Court of Justice said that as long as rules are not created by Board, any kind of
discrimination in regards to dressing style will not occur (Macaulay, 2018). But this case has
limited impact in UK. It is necessary that some steps must be taken so that organization should
behave in appropriate manner with their staff otherwise working contract will be void. Fair
practices should be carried out so that common interests can be retained by which organizational
goals and targets can be accomplished.
TASK 4
How organization will comply with equality and diversity laws. What rights will be given to
employees of Mr. Happy Bakery & Cafe?
Equality and diversity laws are essential for every business so that they can have effectual
control over functionalities which are carried within their premises. It is responsibility of
management of Mr. Happy to ensure that they follow these laws. They have formulated certain
rules and regulations before they hire staff. Right to equality is one of the major asset which has
been given by management to their employees which will inspire them to work positively and
ethically (Equality and Diversity Policy, 2018). Applicants are hired on basis of knowledge,
skills and talent possessed by them with which they can carry out their duties effectively. To
comply with equality and diversity law, an example can be taken of Starbucks who have initiated

equality and diversity practices. They are one who have executed different rights and power is
given to their employees. This initiative has created positive impact on behavior and culture.
Management of Mr. Happy Bakery & Cafe has opted to execute these laws before employees are
being hired at zero hour contracts. Staff will have right to speech by which they can share their
point of view with respect to any situation which is prevailing within organization. This will
build trust and faith among management and its employees. Furthermore, right of equality will
also be given to them, so that each employee is treated equally in terms of salary, duties are
given according to capabilities and there will be no discrimination on basis of age, sex, religion
or any other reason (McKenzie, 2015). They have initiated their business plan in such a way that
they can initiate equality and diversity within their working place.
TASK 5
Describe business assets, liabilities, expenses, gains and alos budget plan for avoiding issues of
cash flow.
Mr. Happy Bakery & Cafe is engaged in business which serve their customers with wide
range of snacks and customized cakes to ensure that health of their customer is maintained. For
this they need to consider certain points, they are:
Assets: Mr. Happy have their own long term assets which includes building, machinery,
furniture, etc. Their short term assets comprises of expenses, short term investments, amount
receivable, inventories and cash (Ross and Byrd, 2015).
Liabilities: They have nominal liabilities for term loans, borrowing etc. These are
noncurrent liabilities. Their current liabilities include tax payable, short term borrowing,
overdraft accounts payable etc.
Expenses: Mr. Happy needs expenses for carrying out their operations and functionalities
by which they can run their business which include salaries of staff, expenses associated with
production, raw materials, etc.
Gains: Major gains of Mr. Happy Bakery & Café include interest from investments,
revenue generated from customers, etc.

Cash flow for Mr. Happy’s Bakery & Café is provided below in which initial investment is of
£20000:
Particulars Amount(£)
Receipts from customer 15000
Interest income from investment 5000
Overall cash inflows 20000
Salaries of staff -4000
Expenses of lighting -8000
Purchase of materials -4000
Expenses of music -2000
Marketing Expenses -2000
Entire cash outflows 20000
Cash flow comprises of total inflow and outflow of funds. Mr. Happy Bakery & Cafe has
initial investment of £20000 for carrying out their business. There are different discussions
which can be taken into consideration to avoid cash flow problem is shown below:
Forecasting sales: Mr. Happy Bakery & Cafe needs to estimate and record their all sales
and organize all expenses with respect to actual sales which required to be maximized in form of
income and revenue (Thébaud, 2015).
Discounting for early payments: By offering discounts it will be easy for Mr. Happy
Bakery & Cafe to maintain cash inflow in their outlet by which management can maximize their
revenue by which they can increase their sales and business.
CONCLUSION
From above it can be concluded that business plan plays vital role in developing business
and grabbing all other opportunities which will come in their way and venture within market. It
is essential to execute equality and diversity law by which they can manage workforce within

organization. Ethical conduct is very important for them to stay and survive within market for
longer duration of time while maintaining ethics and following certain rules and regulations.
Furthermore, it is essential to manage cash flow within business so that they can maximize their
sales, revenue and make sure their sustainability in market.

REFERENCES
Books and Journals
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Brinckmann, J. and Kim, S.M., 2015. Why we plan: The impact of nascent entrepreneurs'
cognitive characteristics and human capital on business planning. Strategic
Entrepreneurship Journal. 9(2). pp.153-166.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Council, N. I. S. C., 2016. Business Plan 2016/17.
Kiznyte, J., Welker, M. and Dechange, A., 2016. Applying project management methods to the
creation of a start-up business plan: the case of Blendlee. PM World Journal, 5(5), pp.1-
24.
Kusumaningrum, I. and Hidayat, H., 2016. Learning Outcomes in Vocational Education: A
Business Plan Development by Production-Based Learning Model
Approach. International Journal of Environmental and Science Education. 11(18).
pp.11917-11930.
Macaulay, S., 2018. Non-contractual relations in business: A preliminary study. In The Law and
Society Canon (pp. 155-167). Routledge.
McKenzie, D., 2015. Identifying and spurring high-growth entrepreneurship: experimental
evidence from a business plan competition. The World Bank.
Ross, L. W. and Byrd, K., 2015. Business Plan Competitions: Start-Up'Idols' and Their Twenty-
First Century Launch Pads.
Thébaud, S., 2015. Business as plan B: Institutional foundations of gender inequality in
entrepreneurship across 24 industrialized countries. Administrative Science Quarterly.
60(4). pp.671-711.
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