Business Plan for Laxmi Bakery Cafe

This business plan outlines the details of Laxmi Bakery Cafe, including its innovative business idea, target market, future goals, and financial considerations. It also covers the bakery's products and services, risk management, and sustainability plan.

BUSINESS PLAN

TABLE OF CONTENTS
Table of Contents
Business plan summary ...................................................................................................................4
Business ......................................................................................................................................4
Market..........................................................................................................................................4
Future ..........................................................................................................................................4
Finances ......................................................................................................................................4
The business ....................................................................................................................................4
Business details ...........................................................................................................................4
Registration details ......................................................................................................................5
Business premises........................................................................................................................5
organisation chart ........................................................................................................................5
Management and ownership .......................................................................................................5
Key personnel .............................................................................................................................5
Products and services ..................................................................................................................5
Innovation ..................................................................................................................................6
Risk management.........................................................................................................................6
Legal consideration .....................................................................................................................6
operations ....................................................................................................................................6
sustainability plan .......................................................................................................................6
Market..............................................................................................................................................6
Market research............................................................................................................................6
2.Market targets...........................................................................................................................7
3.Environment analysis................................................................................................................7
4.Your customers4.Your customers.............................................................................................8
5.SWOT analysis ........................................................................................................................8
6.Your competitors......................................................................................................................9
7.Advertising & sales...................................................................................................................9
Future ..............................................................................................................................................9

Vision statement ..........................................................................................................................9
Mission statement .......................................................................................................................9
Goals and objectives .................................................................................................................10
Finances ........................................................................................................................................11
Key objectives ...........................................................................................................................11
Assumptions ..............................................................................................................................11
Start up cost ...............................................................................................................................11
B/S forecast ...............................................................................................................................11
P&L forecast .............................................................................................................................12
Expected cash statement ...........................................................................................................13
Break even assessment ..............................................................................................................13
REFERENCES..............................................................................................................................14

Business plan summary
Business
Laxmi Bakery cafe, came with an innovative business idea that involves customized gifts,
chocolate bouquet and bakery items as per the specification of the customers. It intends to attract
large customers towards their products by providing a variety of products to the customers at
home in accordance to their preference.
Market
Market relates with the target market on which the company will be focusing on that
involves the entire people of Australia and the travellers at the International Airport Mascot
2020. The target audience of this business will be middle and high class people, mainly youth
and adults.
Future
Aims and objectives
 To establish and maintain high standards of the sanitation
 Exhibiting strong foundation of the bakery techniques for preparing food, servicing,
presenting with inclusion of competence in the bakery and the pastry production.
 Exhibiting nutritional value to the customers as per their specifications
 To become a leading bakery firm within Australia.
Finances
Raising money for starting up the new business is considered as the great challenge for an
entrepreneur so while making decisions regarding the funding, he must be carefully choose the
source wisely (Brinckmann and et.al., 2019). The major sources for funding this business will be
personal savings, bank loan and the grants of government. This source of funding is been chosen
because very low rate of interest to be payable on the amount of loan and there is no need for
sharing of the profits.
The business
Business details
Laxmi Bakery shop will be offering a range of products and services to its customers
with customized items that includes cup cakes, pastry, gift items, chocolate bouquet, cakes and

fast food. This bakery shop will also be offering deserts and a spacial cake for the special
celebration. It will also be offering special promotions like speciality of day, other discount
offers etc.
Registration details
It involves the details regarding the Australian Business Number with registration of the
domain name and registration of business name from authorised .
Business premises
The premises of the business is been planned to locate at international airport Mascot
2020 in Australia and will be covering the city area in the future. The premises will be opened as
a store in an area of airport for the travellers as well as for the local people.
organisation chart
Functional organization structure will be followed in the bakery shop where a top down
flowchart is been prepared with high ranking management executives at top along with the
multiple managers at the middle level that includes human resources, department heads,
accounting and marketing heads etc.
Management and ownership
Bakery managers will include sales, marketing and purchase managers who are
responsible for directing and managing the bakery business by overseeing work of the
employees, making schedules, ordering supplies and marketing the products (Hopp and Greene,
2018). In addition to this, bakery managers will be the person who possess thorough knowledge
and the skills in respect of baking cakes, pastries and breads.
Key personnel
In order to create a value added business, key personnel plays a crucial role in a bakery
business and this start-up will comprise of the competitive personnel who seeks for new
opportunities in the business. The key personnel of the bakery shop include operation managers,
Quality control manager, professional staff, marketing and the purchase manager.
Products and services
It is the bakery that will be producing and sell flour based food items such as bread,
cakes, cookies, pies and pastries. It will also operate as a retail bakery that is serving coffee and
tea those customers who wishes for consuming the baked goods within the premises.

Innovation
The main innovation that has been created is customization where producing the product
and serving it in accordance or specification of the customers. This means that developing the
product which meets the requirements posed by different group of the customers.
Risk management
It relates to the process of determining the potential threats which might occur during an
investment process and taking appropriate measures for mitigating and eliminating the risk.
Assessing risk will be assisting an entity in identifying the severity involved in each type of risk
and exploring the solutions for reducing the influence of the risk (Watson and McGowan, 2019).
The major risk that needs to be assessed involves funding risk, maintenance risk, development
risk, economic risk, legal risk and design risk.
Legal consideration
The main legal rules that will be followed by Laxmi bakery involves licensing for
opening a store from the appropriate government authority and the license will be disclosed and
displayed on the premises. All the standards regarding food safety will be followed by this
bakery shop and ANZFS code also has to be adopted into their business.
operations
A clear operational plan will be prepared which will provide an overview of all the tasks
and the responsibilities in lien with objectives stated in the strategic plan. The bakery will
contain proper equipments like quality pans, cake pans and muffin tins (Carhart-Harris and et.al.,
2016). In addition to this, other necessities such as mixing bowls, spoons, pastry knives, flour
sifters etc. will also of a best quality.
sustainability plan
Laxmi bakery shop will be focusing on practices that will make its business more
sustainable such as using organic ingredients, emphasize on reduced packaging waste, make less
use of water and using recycled products.
Market
Market research
The market research means preparing the strategy and to know your customers. This
research is done to know the competitors' product and what the market needed . The laxmi
bakery situated near international airport mascot they are preparing their market research they

have to know about their customers gather market information the prices of the commodities
and segment the market on the basis of the age, gender, demographic they have to know the
market trends about which type of bakery product are prevailing in the market how many
customers are attracted towards the bakery product(Kotler, P. and et.al., 2017.) . Prepare a list of
your customers, prepare a question that are asked to the customers about their need and wants.
This all information helps the laxmi bakery to strategies over their product. The market research
helps laxmi bakery to initiate with their product this research shows the abilities of your product
to stand in market.
2.Market targets
In this the laxmi bakery has to know who their customers are where they leave why
should they buy your product over the other bakeries what qualities have in your product that can
differentiate it from competitors as it is bakery business the taste of the products is main factor
after analysing which a customer buy a product(Kerin, Roger, and Steven Hartley.). As the
customer is the king of the market the laxmi bakery has to know the preference of the customer
and how much satisfaction their product will provide to the customers. Targeting the market
helps the laxmi bakery to prepare their market plan about their product the market must be
segmented in parts on behalf of the age, location, income and the demographic of the customers.
Target the market which easily buy their product and they have to put less efforts to promote
their product over that market. Target market helps in the success of the bakery.
3.Environment analysis
The analysis of the market environment where laxmi bakery is going to start their
business they have to know the factors which are useful for them how to enter that market what
strategies are adopted by the competitors to know the market changes and according to that
prepare the plan for their product(Kotler, P. and et.al., 2015.)
. Laxmi bakery has to know who their suppliers are as they are involved in a bakery business the
environment related to the product or not if change in environment will raise the price of the raw
materials. Environment is changing due to change in climate.

4.Your customers4.Your customers
The laxmi bakery has to identify who their customers are get the profile of your
customers gather information from their social media accounts don't wait for customers to come
to you initiate yourself to get to the targeted customers know your regular customers who are
important for the success of the business know the needs of your customers know about them
their likes and dislikes what they do about their jobs, business how they buy online or offline
how much money they have who they are about their age, gender what they expect from your
bakery product what they like about your competitors product(Lovelock, C. and Patterson, P.,
2015.). Laxmi Bakery conduct surveys to get feedback from the customers about their product
reviews from the customers.
5.SWOT analysis
The laxmi bakery needs to prepare their strength, weaknesses, opportunities and threats
of the organisation for preparing their business plan.
Strength
The owner of the Laxmi bakery is experienced in bakery business from many years. We
have a variety of bakery products for the customers and have experienced cooks. The equipment
and facilities are well developed and able to manage any big order to achieve the customer
demand. As the laxmi bakery are taking online orders and giving home delivery to their clients
with their social media pages they are able to engage large number of customers. They provide
the fresh bakery products to their customers.
Weakness
The staff of the laxmi bakery is able to be impactful for their business they are not serious
about their work the inside environment of the bakery is not effective the seating arrangements
for the customers are not adequate they cleanliness and the physical presence of the bakery is not
impactful the delivery boy takes time to deliver the product.
Opportunities
As large number of people love the bakery products so its an opportunity for the laxmi
bakery to target those customers. Due to their online presence lots of customers are engaged to
them. Opportunities are born due to increasing demand for the bakery product.
Threat

Due to large number of competition in the market the business of laxmi bakery is affected other
bakeries who created their brand image in the market are covering large part of the market
increase in the price of raw materials effects the business of the laxmi bakery.
6.Your competitors
The laxmi bakery is in the market where large number of comeititors are working on the
same business . Laxmi bakery needs to identify those competitors, know their product and how
much effective it was for the customers, gather information about the products of the customers
what marketing techniques they are using, the equipments they have for the bakery products
who their target customers are the unique quality or product they are using.
7.Advertising & sales
The advertising and sales is the place where the laxmi bakery wants their product to
recognise by the customers (Crawford-Spencer and Cantatore, 2016). This helps bakery to
reach their customers in an effective way this shows the customers about their product services
and the qualities the product have sales is a different task as compare to the advertising where
the bakery have to engage with customers personally and show them about the product services
and qualities the laxmi bakery uses social media or newspaper for advertising their products and
handle sales over phone calls and online orders sales is a last stage where products reach to the
customers.
Future
Vision statement
“ To become a largest bakery shop with mainly one vision that is to meet needs and preferences
of our consumers as we seek for focusing on our clients”.
Mission statement
 Committed for serving assortment that are freshly baked
 To provide for safest and the healthy products
 Striving for delivering an international trend in Australia
 Struggling for updating each and every grocery stores for having a fresh and live bakery
of different size

Goals and objectives
 Dawn bread by following a vision in exceeding an expectation of the consumers
 Facilitating tasty products and delivering the quality, valuable, safety products to the
consumers.
 To facilitate best amenities to customers directly at their doorsteps
 To provide for nutritious and healthy food products.
 Providing efficient services to customers within a prescribed time frame
Action plan
Activi
ties/
weeks
1 2 3 4 5 6 7 8 9 10 11 12
Gener
ation
of
idea
Defin
ing
goals
and
the
object
ives
Feasi
bility
study
Creati
ng a
team
Com
munic
ating
plan
to
team
Desig
nating
resour
ces,
roles
and

respo
nsibili
ties
Procu
ring
funds
Follo
w up
Finances
Key objectives
 To increase revenue by 25% at the end of year 3
 To reduce expenses by 10% till the end of the quarter
 To achieve growth by 5% every year
 To capture 35% of the market share by the end of year 2
Assumptions
 It has been assumed that the average revenue per unit of the business equates to $2 and
the average variable cost per unit of a business will be incurred as $0.25.
 It has also been estimated that the business will generate profits over the years and will be
achieving growth in the long run.
Start up cost
It has been anticipated that the initial cost incurred for starting up a new bakery shop
equating to $5000 which would include all the expenses that is from rental cost, raw material
expenses and licensing fees (Maas, 2016).
B/S forecast
Balance sheet
Particulars Year 1 Year 2 Year 3
Amount in $ Amount in $ Amount in $
Assets
Current assets :
cash 150000 230000 320000
other short term assets 11000 11000 11000
Total CA 161000 241000 331000
Non- current assets :

Fixed assets 62000 82000 100000
less: Accumulated
depreciation 55000 100000 200000
Total non-current assets 7000 -18000 -100000
Total assets 168000 223000 231000
Current liabilities :
trade payables 14500 15400 19900
Short term borrowing 0 0 0
Total CL 14500 15400 19900
Non-current liabilities :
Long term borrowings 86000 81600 49350
Total liabilities 100500 97000 69250
capital 73600 113350 113350
Less: retained earnings 63000 50500 15550
Earnings 56900 63150 63950
Total capital 67500 126000 161750
Total
liabilities&capital 168000 223000 231000
P&L forecast
Profit and loss
account
Particulars Year 1 Year 2 Year 3
Amount in $ Amount in $ Amount in $
Revenue 400000 520000 650000
COGS 70000 85000 101000
330000 435000 549000
Expenses :
Payroll 150000 220000 280000
selling and distribution
expense 20000 28000 68000
Depreciation 55000 67000 78000
Uitilities 1100 1150 1250
Payroll taxes 35000 40000 43000
261100 356150 470250
Earnings before interest
and tax 68900 78850 78750
Interest expense 9000 8500 6800
Taxes incurred 3000 7200 8000
Net profit 56900 63150 63950

Expected cash statement
Cash flow statement
Particulars Year 1 Year 2 Year 3
Amount in $ Amount in $ Amount in $
cash received
cash from operations
cash sales 400000 520000 650000
Total cash from
operations / cash inflow 400000 520000 650000
Expenses:
cash spending 250000 270000 280000
bill payments 140000 180000 230000
total spending 390000 450000 510000
Net cash flow 10000 70000 140000
cash balance 150000 230000 320000
Break even assessment
Break even analysis
Monthly break even in units fixed cost/contribution per unit 17910.2857142857
Monthly break even revenue 35820.5714285714
Assumptions:
Avg. Revenue per unit 2
Avg. Variable cost per unit 0.25
Estimated fixed cost on
monthly basis 31343
Contribution per unit
revenue per unit-variable cost
per unit 1.75

REFERENCES
Books and Journals
Brinckmann, J., and et.al., 2019. Of those who plan: A meta-analysis of the relationship between
human capital and business planning. Long Range Planning. 52(2). pp.173-188.
Carhart-Harris, R.L. and et.al., 2016. Psilocybin with psychological support for treatment-
resistant depression: an open-label feasibility study. The Lancet Psychiatry. 3(7). pp.619-
627.
Crawford-Spencer, E. and Cantatore, F., 2016. Models of franchising for social
enterprise. Journal of Marketing Channels. 23(1-2). pp.47-59.
Hopp, C. and Greene, F. J., 2018. In pursuit of time: Business plan sequencing, duration and
intraentrainment effects on new venture viability. Journal of Management Studies. 55(2).
pp.320-351.
Kerin, Roger, and Steven Hartley. Marketing: the core. McGraw-Hill, 2015.
Kotler, P. and et.al., 2015. Marketing. Pearson Higher Education AU.
Kotler, P. and et.al., 2017. Marketing for hospitality and tourism.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Maas, A. I., 2016. Clinical trials: do we need criteria for pre-study feasibility assessment?. Acta
neurochirurgica. 158(11). pp.2045-2046.
Watson, K. and McGowan, P., 2019. Emergent perspectives toward the business plan among
nascent entrepreneur start-up competition participants. Journal of Small Business and
Enterprise Development. 26(3). pp.421-440.