Business Plan: The Bake Art Bakery Startup in London, Entrepreneurship

This document presents a comprehensive business plan for 'The Bake Art,' a startup bakery in London, UK. It includes a detailed business description, outlining the bakery's mission to provide high-quality, healthy food products and enhance customer loyalty. The plan covers marketing strategies, emphasizing a marketing mix approach with considerations for product, price, place, promotion, people, process, and physical evidence. A competitive analysis using SWOT framework identifies the bakery's strengths, weaknesses, opportunities, and threats. The plan also details the design and development of products, operational and management strategies, financial factors including startup costs and break-even analysis, traditional sources of finance, and ethical practices. The Bake Art aims to differentiate itself by offering healthy alternatives and leveraging technology for efficient operations and customer engagement.

Individual business
plan

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Business Description....................................................................................................................3
Marketing strategies.....................................................................................................................5
Competitive analysis....................................................................................................................6
Design and development of your product or service...................................................................7
Operation & Management plan ...................................................................................................7
Financial factors...........................................................................................................................8
Traditional sources of finance....................................................................................................10
Ethical practice...........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
An organisation in which human resources perform their tasks in order to achieve the
common goals as well as objectives of earning and maximising the level of profitability by
satisfying the needs and wants of the potential customers is termed as business. The process of
writing a report that gives a description and an overview of the future of business is defined as
business plan. This process explains the business strategies as well as key objectives that are
going to be attained within the organisation. This report is based on starting a new small business
and its related key issues that surrounds in setting up of a new business (Anicama, 2018). Within
this report, in this presentation, the chosen industry for starting a new business is bakery industry
and a bakery is going to be started in this respective portfolio. The Bake Art is taken into
consideration as a name of the bakery in which various types of foods are processed. This report
includes business description, marketing strategies, competitive analysis, design and
development of product, operation and management plan along with the financial factors.
Furthermore, traditional sources of finance and ethical practices in relation to new business are
also going to be discussed.
MAIN BODY
Business Description
In this report, The Bake Art is operated as a small Bakery in the Bakery industry in
London city of United Kingdom. The bakery industry is an evergreen industry among the others
and it never goes out of style and can be a great source of income. The mission of The Bake Art
is to provide different variety of food products with superior quality to its customers. The vision
of the respective business is to enhance the level of profitability as well as customer loyalty. This
is a small scale business enterprise and will have employee size of 15 staff. The products and
services of the respective organisation will include biscuits, breads, cakes, pastries, pizzas,
muffins, snacks, cookies, cakes and many more (Busenitz, 2020). After the pandemic situation of
COVID-19, customer base become more health consciousness so this business will offer food
products that are made from healthy ingredients which directly satisfy the wants and
requirements of the customer base.
Current market trends, future developments:

Food industry in changing day by day which needed the modification in the items
according to the requirement of the customer needs and technology advancement for the
production of product easily and effectively. Due to awareness of healthy and organic diet
among people, bakeries are also switching to healthier raw material to produce healthy products.
 Sugar reduction: The Bake Arts has to follow some health safety measures to achieve
huge customer base (Götz, 2020). One of them is sugar reduction bakery has to reduce
the amount of using sugar in bakery products and have to switch from white sugar to
brown sugar which will be the healthier alternative. And sugar can also replaced by stevia
which have zero calories, date syrup, jaggery and honey are the natural sweetener which
can be added to the product and make it healthier.
 Whole grain flour: Bakery uses refined flour as their base of products which is non
nutritious. The Bake Arts has to use whole grain flour as a alternative of refined flour
which have more nutrition value and preferred by most of the customers to maintain their
taste as well as health. It contains good amount of fibre, protein, minerals and vitamins
which is healthier to intake.
 Product appearance: Rather than taste product appearance attracts the customer and
influence to make a buying decisions. Rather than other bakeries, The Bake Arts will not
use artificial chemical colouring which harms the body in various ways. The Bake Arts is
going to use natural colours for texture colour differentiation in the bakery products that
are beetroot, annatto and turmeric which gives the good appearance with healthier
performing.
 Functional foods: The Bake Arts has to bring more functional foods which involve
nutritionist food. In functional foods there are cakes, cookies, salted nuts, and frozen
fruits which not only boosts the immunity but also contain protein, fibre, vitamin and
minerals (Hopp and Greene, 2018). The customer base of functional foods is increasing
day by day as everyone is switching to an healthier alternatives.
 Fat amount: The major consideration in bakery is the fat amount in the bakery products
which harms and causes cardiovascular aliments. Recently FSSAI has fixed the fat rate
limit from 5% to 3% which is become challenging for bakery to reduce and also maintain
the previous taste. The Bake Arts is using 3% of fat amount from starting for managing
the quality by keeping healthier alternatives in mind.

Marketing strategies
Marketing strategies are those methods that helps a business in differentiating its products
as well as services from its rivalries by focussing on their strengths and weaknesses to offer
products and values to the potential customers at superior quality. In relation to The Bake Arts,
different marketing strategies will facilitate the business in gaining competitive advantages over
the competitors that are active in the market place. For understanding various marketing
strategies, the concept of Marketing Mix is used in this report (Hopp and et.al, 2018). Marketing
Mix is the set of elements that are required to be ascertained by the organisation to promote its
products and services in an effective manner with an aim to earn and maximise the level of
profits within the 7Ps of the marketing mix. The marketing mix of The Bake Art is explained as
below:
Product: A product is anything which can be provided to the market to gain the attention,
consumption as well as acquisition that may satisfy the requirements and wants of the potential
customers. The food products within The Bake Arts are in a wide variety of number such as
breads, cakes, pastries, biscuits, muffins, snacks, cookies and many more. The respective
organisation is differentiating its products by adding some healthy ingredients within the existing
food products. It helps the business in capturing more of customer-base by directly satisfy their
needs and wants.
Price: It refers to that amount of money which is charged from the customers against the
products sold to them. There are various kinds of pricing strategies and some of them are cost
plus pricing strategy, penetration pricing strategy, etc. The Bake Arts should use penetration
pricing strategy as it will helps the business in attracting a large number of potential customers
by new food products that are initially sold at lower costs.
Place: This is defined as a path or a channel of distribution through which products of the
organisation are transferred from manufacturers to end user (Lämmle, 2020). There are various
kinds of distribution channel such as wholesaler, retailer, agents, consumers. The Bake Arts will
use direct channel of distribution in which consumers will buy food products directly from the
bakery.
Promotion: several tools that are used by the organisation for creating, maintaining and
expanding the demand of products. Within The Bake Arts, this tool helps the organisation in
creating awareness of its healthy food products and persuading customers to buy them by stating

their additional features as well as benefits. The business can use various strategies to promote its
food products like online and offline advertisements, digital marketing, direct selling and many
more.
People: It is said to be human resources that are present within organisation and who are
forefront when interacting with customers, taking and processing their queries. Within The Bake
Arts, there will be employee size of 15 people within business.
Process: This is defined as flow of business activities that take place within organisation when
there is interaction between business as well as customers (Mariani, Bartoloni and Morelli,
2019). The Bake Arts should understand the steps of customer journey that helps the business in
improving the effectiveness of functioning. A proper process of workflow facilitates bakery in
creating smoothness in its business operations.
Physical evidence: It includes physical environment where an organisation provides its
products, layouts or interior designs and many more. The Bake Arts can keep the records of all
experiences that is is getting by physical interactions of the customers or their queries, buying
behaviour along with providing them guidelines concerned with food products through brouchers
and pamphlet.
Competitive analysis
For analysing the competitive environment, a tool of SWOT Analysis can be used by the
organisation. This framework helps the business in analysing its internal strengths as well as
weaknesses along with external opportunities and threats that are available within market place.
The SWOT Analysis of The Bake Art is described as under:
Strengths: It becomes key duty of an organisation to analyse its strengths by taking
advice from professional strategic management. Major strengths of The Bake Arts are that it is
offering a wide variety of healthy food products that are in demand by customers nowadays after
pandemic situation of coronavirus (Marques, 2020). This helps bakery in attracting more
customers towards business and thereby increment in sales and profits of business.
Weaknesses: It creates loopholes and challenges inside business to sustain in market
place. Main weakness of The Bake Arts is to maintain a precise culture of workplace. It should
have effective business culture in terms of human resource management to develop employee
productivity.

Opportunities: Using Information Technology in business operations is major
opportunity for The Bake Arts to achieve business objectives in an effective manner. Bakery can
use advanced machines and technologies in process of preparing food products that would help it
in performing business operations in a more quick way.
Threats: Extreme level of competition can be a great threat for The Bake Arts as there
are many competitors in market like Margot Bakery, Baltic bakehouse, etc (McCardell, 2018). In
order to overcome this threat, bakery has to make its effective business strategies to gain
competitive advantages over them.
Design and development of your product or service
For staring up a bakery The Bake Arts, business requires financial funds that will be used
in different aspects of business. Initially, $150000 will be required as an investment on
commercial land. For exterior and interior designing, $ 230000 will be needed and to buy kitchen
appliances $ 115000 is required. For furniture, amount of $40000 will needed at initial level and
Marketing process requires $200 along with Utility expenses of $20000.
Operation & Management plan
Process of planning strategic goals and objectives that are to be achieved within
organisation are termed as operational plan. This is a base and justification of an annual request
of operating budget.
Mission: To provide different variety of food products with superior quality to potential
customers.
Vision: To enhance customer loyalty and level of profits within organisation.
Objectives:
 To enhance customer satisfaction by 15% in a year by offering delicious healthy
food products to customers for business expansion.
 To extend selling of standard food products by 10% in a year by various
promotional strategies.
The Bake Arts is operated in London City of UK and is dealing in offering food products
like biscuits, breads, snacks, pastries, pizzas, etc. Machines and technologies will be used in
business to prepare food items. Employee size of 15 members will be there in this business who
will perform different functions within business.

Financial factors
Start up costs for Bakery business:
Sales: $ 500000 for 5000 units
Cost of sales: $ 170000
Commercial space (Land): $ 150000
Renovation and Décor: $ 230000
Kitchen appliances: $ 115000
Furniture : $ 40000
Bakery Technology: Software: $40/ month
Hardware: $450
Fixed cost - Licenses and Permits: $ 41500
Insurance coverage: $ 1000
Variable expenses - Administrative charges: $1850
Marketing: $200
Insurance Coverage: $$10000
Salary: $ 30000
Utility expenses: 20000

Break even point = Fixed Expenses / Sales – Variable cost
42500 / (500000 – 170000 – 62050)/5000
= 42500 / (267950/5000)
= 42500/53.59
= 793 units
It is required for the firm to sell at least 793 units for earning its profits.
Exit strategies: These are the strategies that traces how a business owner make plans on selling
their investments within their business (Moraitis, 2018). Exit strategies facilitate organisation's
owner in having an out if they want to close or sell business. There are various exit strategies and
some of them are discussed as follows:
Merger: In this exit strategy, two businesses combine into one. Merger expand the value
of a business because of that investors tend to like them.
Acquisition: It is done when an organisation buys the business of another organisation.
With this exit strategy, an organization can give ownership of business to that organisation who
buys it from the previous one.

Initial public offering: It is initial sale of stocks of the business to public. Unlike a
private business, a public enterprise gives up a part of their own ownership to stockholders from
general public.
Traditional sources of finance
Fund is an amount of money that saved collected or provided for a specific purpose. A
fund is used for many established purpose some common types of fund are Pension fund,
Provident fund, Insurance fund, and foundation fund. Fund are used by an individual, business
organisation, government bodies (Penn, 2020). In business, funds means availability of finance,
cash for business transactions. Hence, the fund meaning is availability of cash. Funding is
process of providing resources on form of money an other values. Traditional funding means
loan from a financial institution the best source of this type of funding is from large and small
banks. Large banks have more loan providing formalities and have lower interest rate but smaller
banks have high interest rate but less formalities that a borrower has not facing issue to getting
loan. In context of The Bake Arts, different type of traditional funds are given below:
Crowd funding: This is the process of arranging small funds from donations,equity
campaign, customers, and investors. This approach is based on collective efforts of great
number of individual mainly through online media. By crowd funding the owner of The
Bake Arts have access of many investors that present in a market .
Angle investors: These are the private investors who provide financial backup to small
business. The fund provide by these investors are one time investment to support the
business organisation in difficult early stages. Angel investing is the primary source of
funding that help owner of The Bake Arts to get funds manage in effective manner.
Bank loans: A bank loan is a money offered by a bank to their customers for a certain
period of time, the borrower will to pay a fixed interest rate for a fixed period of time
(Tacchino, 2021). Bank loans are mainly of three types that helps The Bake Arts to get
fund are secured bank loan, unsecured bank loan, inter bank loan. Banks are the safest
entities where a borrower can borrow loan without any insecurity.
Family and friends: Family and friend are the first preference arranging funds when to
start a business or launch a new product. Family and friends are more willing to lend
money, especially when other types of sources are not accessible. The owners of The

Bake Arts obtaining funds from friends and family is comparatively low and for a short
period of time risk associate is also low.
Ethical practice
Ethical practices in business refers to the those applied ethical value in business in order
to develop effective organisational behaviour in their working environment. Companies used
ethical practices in order to make integrity in among employees as well as gain more trust from
their investors, stakeholders and consumer(Vurro and Perrini, 2018). There are many ethical
practices that are enforced by law that help companies to operate their business in ethical
manner. In context of The Bake Arts, ethical practices that are need to be followed in its bakery
are described below:
 Define values: It is important for the every company to make everyone in the
organisation familiar with their values so, they perform their work in ethical manner. The
companies should place their values in employees handbook, in a section of code of
ethics. It is important for the leaders of the company to refers its companies values while
making and decision in the company. In respect of The Bake Arts, it is important for its
management to provide full information about their companies ethical values to their
staffs in order to ensure them for performing their operation.
 Decide on appropriate disciplinary action: Some times employees of the business
should fail to follow their ethical standard so, they need get punish for it in order to make
other employees aware from it. It is important for the company to make or decide an
appropriate disciplinary action and punishment for each type of crime. In regards of The
Bake Arts, it is essential for their management to make and decide appropriate
disciplinary action if the employee misconduct in their working environment.
 Hold leaders to high standards: Employees are greatly influenced by their leaders. It is
important for the company to hold their companies leaders to a high standards in order to
make their employees aware about their expectation and inspired them to act with
integrity in the organisation (Winter, 2019). It also help companies to develop their
employees in future leaders. In case of The Bake Arts, its management should also hold
their leaders to high standards in order to make their employees aware and motivated in
effective manner.

 Incentivize ethical behaviour: For developing effective ethical behaviour in the
organisation, it is important for the company to use effective rewards and punishment for
the conduct of employees (Xu, 2020). Rewards are an effective method to make
employees behave good in the organisation and does not act unethically in the
organisation. In accordance of The Bake Arts, it is important for its management to use
effective incentives for the employees so, they conduct good ethical behaviour in the
organisation.
CONCLUSION
From above explanation of the report, it has been concluded that framing a business plan
is essential for every business as it helps in gaining competitive advantages. Through better
understanding of various aspects of a business, an organisation can easily attain its objectives
and ultimately success in an effective way. In this report, a bakery business has been started and
in context to this, current market trends for future development, marketing strategies and a
competitive analysis through swot have been explained. Along with it, concept of designing and
development of products of business has also been described in this report. Furthermore,
operational management plan, financial factors, different exit strategies have also been discussed.
This report has also been include traditional source of funding as well as ethical practices that
help a business in its effective functioning which contributes to success of organisation.