Individual Business Plan Report for Creamy Delights Bakery

This report discusses a business proposal plan for Creamy Delights Bakery, covering industry analysis, competitive analysis, marketing strategies, financial projections, and other relevant factors. It also includes a management plan and the ability of the entrepreneur to manage the new business venture.

Individual Business
Plan Report
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Executive summary
The purpose of this report is to develop understanding on the concept of entrepreneurship
and the creation of a business enterprise. The following report discuss a business proposal plan
in detail with proper format which helps in attaining knowledge as on what factors must be
considered before establishing a new venture. It covers industry analysis, competitive analysis
and discuss marketing strategies as well as financial projections along with other relevant
factors.
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Table of Contents
Executive summary.........................................................................................................................2
Introduction ....................................................................................................................................4
Main body .......................................................................................................................................4
Business details...........................................................................................................................4
Location......................................................................................................................................5
Product description.....................................................................................................................5
Industry analysis.........................................................................................................................6
USP and competitor analysis......................................................................................................7
Operations plan.........................................................................................................................10
Risk and contingency plan........................................................................................................11
Sales and marketing strategy....................................................................................................12
Finance and funding plans........................................................................................................13
Management team.....................................................................................................................13
Conclusion ....................................................................................................................................14
References.....................................................................................................................................15
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Introduction
Individual business plan refers to the process of constructing a idea associated with
provision of goods and services in order to create value for the individuals. It is related with the
process of devising plans and strategies and deciding the product or service after analysing the
market and viability of the product in the market. Business plan is a document covering
important details regarding the operations and management process of the start-up including
mission, vision and objectives of the business. The following report discuss a business proposal
plan which is associated with start-up of a bakery. In this report, various factors that are to
considered before establishing a start-up is discussed including industry analysis, product
description, USP and competitors analysis, operations plan, sales and marketing strategy,
financial projections etc. In addition to this, it also discuss the management plan and the ability
of entrepreneur to manage the new business venture.
Main body
Business details
The small sized business venture of bakery would be launched and operate under the
label of Creamy delights located in London, United kingdom offering a range of cakes and
pastries to customers. The main reason and motivation behind selecting this idea for a new
venture creation is to fulfil demands of individuals by delivering them best quality of cakes and
other related items (Jukova and et.al., 2019). There is highly emerging trend among individuals
to celebrate various occasions and thus the demand of cakes and cupcakes are high among
youngsters as well as kids. Kids love having customised cakes of their favourite Superheroes and
Barbies on their birthdays and thus the trend of customised cakes is increasing among
consumers.
Vision of the business
The vision of the start-up is to establish core values and operate ethically and induce
customer satisfaction through providing best services. This bakery aims to attain engagement of
consumers and wants to attain their appreciation in terms of fulfilling their requirements as per
their specifications. It aims at building a brand image which is highly recognised and known for
their finest services in the market (Xu, 2020). The bakery is aimed at adopting eco-friendly
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methods to promote sustainable practices and thus it will avoid plastic packaging and use paper
packaging instead.
Mission and objectives
The mission of this business venture is to serve consumers with best qualities of cakes
and pastries and to create value for them. The primary objective of the company is to attain
significant level of growth and development though earning high profit margins while catering to
the preferences and wants of customers in ethical and responsible manner. The bakery aims to
maintain reputed image and goodwill by maintaining good interpersonal relations with their
loyal consumers by treating them right and offering best quality deals.
Location
The bakery would be situated in borough market which is a busy and central area where
services and products of bakery would be highly approachable and accessible for the individuals
(Masciocchi, 2020). The locality of a new business venture is directly linked with its footfall and
number of customers it is likely to attract. Creamy delights would ensure that its posh and
commercial location would be able to induce large consumer base through grabbing their
attention.
Product description
The range of products that would be offered by the creamy delights would include the
following:
 Cakes (freshly baked and customised)
 Cookies
 Doughnuts
 Pastries
 Cupcakes (freshly baked and customised)
 Breads
 Muffin
The products of the enterprise would be produced with the assistance of skilled bakers
and it would offer a range of varieties in the above mentioned categories of items. The bakery
will be able to attract customers through delivering them with great taste while adopting
customisation and specialisation in items designed as per customer preferences (Lin, 2019). The
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bakery will buy patents related to the packaging and logo of the bakery in order to eliminate
threat of imitation of same designs through somebody else.
Industry analysis
Size of the market
In context to the creamy delights, the bakery industry is growing rapidly with increasing
tendency of individuals towards consumption of cakes and breads. United kingdom has a
potential market in this sector which offers a range of varieties in products to buyers. The bakery
industry of the UK is worth approximately £8.7bn and is accounted for an annual growth rate of
0.9% in the years between 2017 and 2022. It is one of the most significant sector including
various businesses operating in offering bakery products.
Barriers to entry
The viability and success of the business venture in long run is dependent upon the
investment and strategies of the firm to gain competitive edge. It requires abundance of financial
resources in order to offer best quality and wide range of varieties to customers (Prathap and
Sudheer, 2021). The bakery market is full of potential rivals and thus is is important for the
venture to devise constructive strategies in order to drive its long term growth.
Threats to market
The growing awareness of consumers towards health issues has made them highly
conscious regarding their consumption patterns and thus the trend of sugar-free and gluten free
products is increasing day by day. Thus it created challenges for the new emerging businesses to
bake healthy cakes while maintaining great taste and thus it would be challenging for the bakery
to comply with standards and changing preferences of the company.
Outlook for the future
Throughout the next five years from 2026-27, the revenues of this industry is ascertained
rt decline from an annual compound rate of 0.6% to £8.4 billion. The growing trend among
individuals to consume healthy food is likely to impact the purchasing power of consumers
through putting pressure on consumption of sugary products (Zulkornan and et.al., 2021).
However the less certainty of economic conditions which is due to expected recession in the
current year, implies the ease on inflationary pressures. Moreover, it is forecasted that disposal
incomes of consumers will rise which would enhance their spending on purchase of commodities
of the bakery sector.
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Pestle analysis
Pestle analysis is a framework to analyse the factors of external business environment
affecting a particular industry and it helps in evaluating various considerations that business has
to focus upon. The pestle analysis of bakery industry is discussed below:
Political factors: These factors are associated with government regulations and interruptions
which are likely to affect the operations of an enterprise in direct or indirect manner. The tariff
and trade barriers and tax duties are some of the important political factors which are likely to
impact upon the decision making of Creamy Delights.
Economic factors: The changing demand and supply models are some major factors which is
associated with the operations of company to comply with customer's expectations. In addition
to this, inflation rates and disposable income level of consumers are other relevant economic
factors in context to the new venture of bakery (Giri, 2018).
Social factors: These relates to the demographic trends and preferences of consumers which
determine the decisions and operations of an organisation in numerous ways. The changing
preferences of the consumers and growing health consciousness is likely to increase their
demand for sugar and gluten-free produce or else they will decrease their consumption opf sugar
products.
Technological factors: These are associated with technical advancements and any changes in
techniques and their prices is likely to influence the production of an organisation. In context to
the creamy delights, technologies are required to bake cakes and for customisation. Moreover,
the enterprise will use digital technologies for marketing its commercial activities.
Legal factors: These are associated with legal compliance and requirements of a business in
order to avoid any kind of trouble. In context to the Creamy Delights, it has maintain strict
adherence with food and beverage standards of health and hygiene. Moreover, protecting
intellectual property rights is another legal factor influencing the enterprise.
Environmental factors: The food processing of breads and cakes influence the environment in
various ways in terms of carbon emissions and it promotes wastage of food and water as well.
Thus the enterprise has to operate their activities in sustainable manner in order to avoid any
negative reviews from general public and other communities for promoting harm to environment
through their operations.
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USP and competitor analysis
Competitor analysis using porter's five forces
Porter five forces helps in evaluating the factors which are important to consider in order
to know the position of the enterprise in the market and to devise strategies to gain competitive
edge. The five forces are explained below:
The threat of new entrants: This threat is low for in context to the creamy delights as the
enterprise will use economies of scale to sustain its competitive position. Thus the enterprise
would not be affected to a great extent by the emergence of new businesses (Jeje, Naidoo and
Verma, 2021).
Competitive rivalry: This threat is high in context to the new venture as the market of bakery is
full of potential rivals which would make it challenging for the enterprise to match their level as
they are well-established and sustaining in the market from years.
The threat of substitutes: This threat is high in context to the bakery as there are wide range of
choices available to the customers due to high number of operators in the industry. The high
availability of substitutes induces customers to shift their preferences and thus the enterprise has
to devise constructive strategies to drive competitiveness.
Bargaining power of consumers: This threat is moderate as there are various individuals of high
level income groups who are price in-sensitive and are willing to purchase high quality products
at demanded prices. Although perception of consumers varies according to their incomes and
there are many individuals who make purchasing decisions considering their affordability to
consume certain products (Bhattacharyya and Fernandes, 2019).
Bargaining power of suppliers: This threat is also moderate as the availability of suppliers is
high in relation with providing inputs of bakery produce. Thus the wide range of choices to
source goods from enable the enterprise to negotiate prices. However suppliers negotiate to
charge high and thus the bakery has to consider their offerings through agreeing on their terms.
Competitors of the bakery
There are various competitors in the industry of bakery as there are huge number of
bakery stores located across London, which increases the competition level to a great extent.
Following are some major competitors in context to the Creamy Delights:
Bread ahead: The bakery was established by baker Matthew Jones in 2013 in borough market,
the bakery has expanded all across the London through opening various branches. The enterprise
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is specialised in providing a range of palatable sour-dough breads which is extremely crunchy. It
offers a variety of doughnuts, croissants, chocolates, cream cheese frosting. This bakery has
established its renowned brand image in the market through consistently offering best services to
consumers. The bakery is known for its great taste and varieties and consumers never regret
spending their money in its offerings.
Comptoir gourmand: The bakery is owned and managed by a small family with various
branches in London, the firm has earned significant attention from customers and it has become
an enterprise which is loved by individuals as they offer pastries of great taste. The firm offers a
range of varieties and flavours of pastries including chocolate twist, Americano, pistachio,
almond and fruity flavours.
Olivier’s bakery: The enterprise is mainly based in south east and deals in offering variety of
freshly baked breads, cakes, pastries and scrumptious soft croissants. The firm was founded in
1756 and is sustaining in the market from a long time. It has attained a large customer base and
its central location in the busy street has helped the firm in gaining fame and popularity. The
bakery specialised in providing high quality breads and finest products made from high quality
of ingredients.
Artisan foods: This small crafted bakery is situated in borough market, London and offers a
range of handmade cakes using organic ingredients as much as possible. The USP of the firm is
to provide consumers with produce which is made from German sour-dough breads and its
delicious offerings includes pretzels, pastries of various flavours etc. this bakery owns various
shops in London which made it a renowned bakery brand in London catering to needs and
requirements of potential buyers.
Unique value proposition
The unique value proposition of the creamy delights will define its ability to induce
customer base through offering them unique value differentiated from its competitors. The USP
of the venture is discussed below:
Highly customer oriented brand: The new business venture of creamy delights would show
extreme commitment towards providing consumers with maximum level of satisfaction (Hoozée
and et.al., 2020). The owner of the firm would pay emphasis on delivering individuals with the
quality and quantity they had demanded at best and affordable prices. The bakery would be able
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to attract large base of consumers through offering them with high customisation best suited to
specifications of customers.
Attractive ambience and display of products: This bakery would be designed in a aesthetic
manner which would enable the organisation to induce large number of customers. The bakery
will also offer dining experience with availability of minimal furniture where individuals can
enjoy their me time while having sweetest delicacies. The display of customised orders would
allow visiting customers to know about great services of the bakery and thus it will helps in
increasing orders and sales of the firm (Ócsai, 2021).
Reasonable prices: The pricing strategy of the firm would be designed considering the
expectations and maximum satisfaction of consumers. Creamy delights is committed towards
showing concern to their valuable consumers. Thus, it will provide great taste at affordable
prices in initial phase in order to attract more consumers and offering them maximum utility.
With economies of scale and sourcing raw material directly from the wholesalers in bulk, the
firm would be able to take advantage of low cost strategy (Lasisi-Balogun, 2020). Through
providing goods at relatively lower prices, the bakery would be able to increase familiarity of
brand among consumers and increase sales. After raising significant brand awareness, the firm
will start increasing its prices based on the more value added.
Operations plan
The operations plan of the firm will decide the course of actions that the firm would
undertake on daily basis to ensure the various transactions between suppliers as well as
consumers. The operations of the firm would take place in premises of the bakery where on first
floor, all the functions regarding manufacturing and storing produce will take place. Whereas on
ground floor, the selling and serving function would take place. On first floor, the baking
functions would be associated with purchase of fixed assets including kitchen equipments such
as microwave and refrigerator and other utensils. On first floor, the owner will store sourced
inputs and raw materials being used in cooking procedures. On ground floor, the firm would
display the items including customised cakes, cupcakes, muffins, doughnuts etc. In addition to
this, it will be accommodated with minimal furniture of two-four chair and table in order to
provide consumers with dining experience or spending quality time with a friend. The
operational plan designed for the firm would include the procedures involved in turning the
visions of the firm into reality (Atanasiu, 2021)). The firm will hire two part time and two full
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time cooks for baking purpose who will also serve the customers. Major operations of the firm
would include sourcing raw material, production and making processes, storage and offering
final services to customers. The major functions regarding with operational plan of the bakery is
discussed below:
Sourcing of raw materials: This process is associated with procurement of raw materials
required in yielding outputs. The raw materials in context to the creamy delights would include
sugar, flour, whipped cream, frostings, choco chips, cocoa powder, egg etc. the firm would
source these raw materials from local wholesalers across London (de Vries, Veer and de Vries,
2018). The firm have to develop agreements with suppliers for the purpose of smooth production
process and to ensure availability of commodities in stores at all times.
Making: After procurement of raw materials, the bakers would execute cooking process in order
to transform inputs into valuable outputs. The making processes in bakery will be reviewed and
monitored by owners in order to ensure the provision of best services.
Taking orders and transactional process: At first floor, the selling and serving functions will be
accomplished by consumers deciding and picking their orders from menu and displayed items. In
case of customised offerings, visitors will place their order with clear specifications which will
be delivered to them within time ensuring fast services.
Risk and contingency plan
In Context to organisations, the risk and contingency plans helps the organisation in
preparing against the uncertain events which could result in disturbing the entire business
operations. The main aim in context to the business plan is to be prepared and carry out safety
measures from the unwanted happenings. In addition to that it also helps in prevention of
discontinuation of work due to any reason with the help of proper planning and procedure (Shi,
Wang, Luo and Zhang, 2019). In context to contingency plans, it helps in maintaining and
managing financial resources in situation of any emergencies a and storing up data in relation to
the details regarding the business plans. Though the bakery business is highly profitable and is
highly competitive but it involves a lot of risks and threats that might put the leaders and
managers of the organisation in a situation of risk and threat.
In context to organisation, the organisation focuses to achieve success and growth with
the help of attracting new consumers and also to ensure development and growth of the
company. In context to Bakery Business, there are various drawbacks and risks involved and it
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is important to have proper planning for the purpose to avoid any kind of uncertain situations. In
context to Bakery Industry, it is highly diverse and large and there are small mom and pop
bakeries that aims on the artisan a baked goods that comprises of pastry and breads. When it
comes to the threat or risk associated with the bakery industry, it differ from unique to small
bakeries( Subiyakto, 2020).
Fluctuations in Prices: In context to the bakery business, the price fluctuation exist for the
goods which are seasonal and becoming rare in other months. The fluctuation in the prices of the
raw material can result in becoming a risk for the bakery owners (Tokdemir, Erol and Dikmen,
2019).
Limited Growth Opportunities: In context to the bakery business, it comprises of limited growth
opportunities which results in consumers not willing to pay premium prices for the baked goods
and leading to a market saturated with bakeries.
Tough Competition: In context to bakery business, with the continuous increase in health
consciousness spreading, the bakeries are involved in making gluten free diet and which are
helpful for the situation for the small bakeries (Liu, Jarrett and Maitlis, 2021).
Sales and marketing strategy
While forming a new start-up, it is highly significant to develop and devise effective
marketing and promotional strategies in order to increase awareness of the brand. The marketing
strategy of the bakery would define how it would raise awareness among consumers about the
establishment of their business. The sales and marketing strategy of the new venture is discussed
below:
Social Media: The creamy delights will make effective use of social media platforms for the
purpose of marketing and promoting their brand. It will create business accounts on Facebook as
well as Instagram in order to induce audience and enhance awareness about the goods and
services of the firm. Through making social media accounts and posting relevant content
designed in creative and innovative manner, the firm would be able to grab attention of audience.
Moreover, Instagram and Facebook is a constructive platform to showcase uniqueness and
customised products of the bakery to individuals. Moreover, through promoting content on these
social media platforms, the firm would be able to increase interaction with consumers and make
them aware of new additions of product line. The social media manager of the firm would post
pictures of customised cakes on stories for the purpose of promoting the brand.
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Referrals and word of mouth: Creamy delights will attempt at increasing awareness of their
start-up through spreading the word among their friends, relatives and other acquaintances.
Although, It is not a proper technique but it is very effective and helps greatly in promoting
emergence of a brand by increasing familiarity of the bakery. The bakery will promote their
visitors to refer their brand to their friends and family as it will help the firm in increasing
customer base (Sebestyén and Tóth, 2018). This technique really works well in promoting a new
brand and the bakery would also request their visitors to post pictures of their orders on social
media stories while tagging the location as well.
SEO Website marketing: The enterprise will make effective use of investing funds in
maintaining constructive SEO presence on search engines such as google and bing. This would
help the enterprise in consolidating its marketing strategies as whenever individuals will search
local bakeries in London, the name of creamy delights must be shown in top options (Chen,
Harncharnchai and Saeheaw, 2022). In order to ensure this, the bakery will make strategic use of
various features of SEO which includes proper use of keywords while promoting brand through
such platforms.
Finance and funding plans
Financial projections is one of the most crucial part while developing a business plan as it
is the means of turning vision, objectives and devised plans for start-up into reality. Without
effective and strategic financial planning, the business would not be able to attain defined
objectives while earning profits in long run. Creamy delights is seeking 90000 in debt financing
in order to start the bakery. The breakdown of start-up costs is stated below:
 Bakery build-out and interior design, furniture and other assets – $50,000
 Opening stock – $10,000
 Working capital – $30,000
Budgeted cash flow statement
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Management team
A Management team is basically a group of high level associates which are hired by the
owner of the business for the purpose to take on essential responsibilities within the organisation.
In context to the business plan for starting up the bakery it will a team with the owner and two
other members who will be supporting in running the business (Gauthier, Cohen, and Meyer,
2019).
In context to the business plan, all the business functions will be carried out by the owner
itself and along with that the other two individuals will be finance manager and marketing
manager. In order to run the business operations in a successful manner, it is very important to
have a good management team which is tough but fair, driven and single minded. It is important
for the management team to know how to make the founder’s mission and vision a reality. It is
important for them to carry out tactical and strategic business plans, understanding the reality of
balancing the expectations , making tough decisions and building effective
strategies( Rodríguez-Mantilla, Fernández-Cruz and Fernández-Díaz, 2019).
In context to the business plan, the structure of the management team will be function
which is also known as operational team which is based on division of team on the basis of
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functions. In context to organisation, it is very important to have a effective team management
which helps in providing various benefits such as economic benefits, improving productivity and
contributing towards the overall business growth. In context to business plan, the management
team is a section of the proposal that helps in indicating the expertise and credential of the team
of the managers of the organisation. It plays a important role and helps in showing prospective
investors that the professionals of the organisation who are being appointed are experienced and
educated and have the competencies and capability to fulfil the leadership positions. In addition
to that it is very important to have a dedicated team of members that could perform their
functions in a effective and efficient manner and contributes towards the overall success of the
organisation.
Conclusion
From the above report, it has been concluded that creamy delights is a sustainable and
viable idea capable of earning high revenues in long term with its constant strategic efforts. The
market size and industry analysis of the bakery sector implied the emerging trends and
possibilities of significant growth in this sector. This business idea would be successful with
right strategies and consistency of providing satisfaction to consumers through dealing in best
quality of items. Creamy delights will achieve growth through adopting customisation in
constructive manner and selling these items at reasonable prices to gain trust and loyalty of
visitors.
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