Individual Business Plan Report: Baked with Love Bakery, London

This report presents a detailed business plan for 'Baked with Love,' a vegan bakery. It begins with an introduction to business plans and provides a business overview, including the business idea, target market, market size, competition, and competitive advantages, such as using only vegan products....Read More

Individual Business Plan

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Provide a concise summary relating to the business idea and perform an analysis for the risk
that the business might face. .......................................................................................................3
2. Give a brief outline related to costs along with discussion......................................................5
3. Prepare the profit forecast statement for the business year of the operations..........................6
4. Make a budgeted cash flow statement for the operational year of the firm.............................6
5. Computation of the break – even point and margin of safety..................................................6
6. Describe the KPIs that will be applied in the bakery business of Baked with Love...............7
7. Supply recommendations based on the above analysis of the business. .................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business plan is defined as a written document which comprises of the company's goals
and the procedure how it aims to achieve the goals for the business. It provides for a structure for
the marketing, financial, strategic and operational standpoints of the business. As the investors
put their funds at stake with a high risk as they make their investments in a new business plan
hence demand a good return in exchange of the investment they make (Agoas, 2020). In this
report, a business plan of a bakery business- Baked with Love which produces three different
products: cupcakes, festive cakes and doughnuts. It is setup keeping in mind the requirements of
the present competitive world. An analysis of the business plan and the costs involved has been
done in the report below. The cost and profit budgets for the business are also prepared while
ascertaining the break-even point and the margin of safety for the new business.
1 BUSINESS OVERVIEW
A business plan is a type of written document prepared by the business organisations
which involves a description of the company's goals and objectives and how the company plans
upon to achieve those objectives. A business plan provides a written roadmap of the plans
decided by the business, the methods and techniques which are needed to attain and achieve the
goals decided and the time frame required by the business for achieving those goals and
objectives. A business plan builds upon the entire structure of the plan containing information’s
regarding all the required essentials like the financing for the plan, marketing, the required
operations and the specialised management which will be responsible to deal and achieve the
plan and its objectives.
1.1 What does the business intend on selling? Or what service do the intend on providing?
The business idea is of the establishment of a bakery shop named Baked with Love which
is a sole proprietor business and has the owner Jack Williamson as a sole owner responsible for
all the business operations. The business plan establishes to build this bakery which will solely
produce vegan cakes of three different types: cupcakes, festive cakes and doughnuts for all the
occasions they are booked for (Ahmed, 2019). The idea of vegan bakery products came from the
present society preferences where most individuals are shifting their tastes and preference to
vegan products.

1.2 What market group do the intend on selling to?
The targeted customers of the bakery business are primarily the section of consumers
who are vegan, are shifting to veganism or are excited to try upon different tastes and hence
choose upon a vegan cake. The primarily targeted section is of children and youth who are
excited by the idea of veganism and re ready to give it a try.
1.3 What is the annual market size?
The market research for this plan shows that as it is a different idea it will attract upon a
good bunch if customers to their business. But the continuous entry of new firms in the market
may arise as a problem for the bakery business of Baked with Love. As many firms keep on
trying upon always something new to attract customers, according to the market research it
shows that the bakery will have to always keep o producing their best taste results and trying
new innovations to provide customer with something different so that they don't lose upon their
customers in any situation (Escolà Soldevila, 2018).
1.4 Who are the competitors?
The business does have its competitors who are already established in the market such as
Baltic Bake house, Miel Bakery and many more. So the competition and the success through that
competition solely depends upon how the business is able to attract more customers and retain
those who are already with the business. The efficiency and ability of the business to do so will
ascertain the success of this business.
1.5 What will make customers select the product over others?
The preference if the customers to choose the cakes of the business over its competitors
lies upon the USP of the business. The USP of the bakery is the use of only vegan products in the
entire process stating from their flour to the last step of the icing for the cake. This establishes
the bakery as a brand which will be highly preferred by the customers over their competitors
(Singh, Sontakke and Nayak, 2020).
1.6 Where will business be located?
The location for the bakery business is in Oxford street in London, UK. A very heavily
occupied, busiest and crowd-pleasing street area in London that has a constant hustle- bustle
running on its streets.

1.7 What are the sources of finance?
The management of the resources in the bakery will have to be the most important factor
which will assess the success of the business in the coming future. The bakery will have to pay
enough attention to the way the resources in the business are utilised so that it could get the
maximum benefits from the resources employed while attaining low cost in the production
(Hang, 2022). As many businesses sometimes fail to assess the cost in the initial stages and
hence face a huge drawback or high losses which they then fail to overcome. Hence the bakery
business should properly allocate and utilise the resources it has to achieve the effective output
and maximise its profits
1.8 What will the initial funds be used to purchase?
The owner will use its own capital and loan as initial funds to acquire assets and expand
its business, pay off its debts and liabilities and meet its day to day expenditure related with the
business.
1.9 What possible risk business could face?
The risk for the bakery business lies in various factors as the primary issue with the
business is the lifespan of its bakery products. The cakes produced by bakery are highly
perishable and hence can be fresh for a short time period. Hence this produces the risk of
planning the bakery inventory in the most careful way possible to exempt the risk of inventory
waste. The second risk of the business is of proper assessment of the costs that will be involved
while producing the cakes in the business. As a wrong assessment of the costs to be incurred
could lead to loss in the business in various ways such as delay in production, unavailability of
inventory and failure in delivering the products.
2 INCOME AND COSTS
Costs
For the purpose of starting out a new business, it is very essential to ascertain upon the
costs which the bakery business of Baked with Love would incur in the process of its working,
production and functioning. The type of costs that the business may incur in the functioning of
the business are:
 Fixed Costs: This is the type of cost which remains constant throughout the year in the
business. It does not vary with the changes that occur in the number of units produced in

the business or sold by the business (Stout, 2021). The business has to borne the fixed
cost even if there is no production taking place and the business may not be
manufacturing the units. The fixed cost does not normally change but if the number of
units vary by a highly noticeable amount, then the amount of fixed cost in the business
changes the amount. Some of the fixed costs that the bakery business of Baked with Love
will have to incur are salaries of its bakery employees, the rent for the shop, the public
indemnity insurance, advertisement and promotion.
 Variable Costs: This is the kind of cost which is variable to the business and hence
varies depending upon the number of units which are produced in the business. It changes
with the output produced in the business and as and when the number of units vary the
overall variable cost also varies (Kamm, 2022). A decrease in the number of units leads
to deduction in the overall variable cost. Some of the variable costs that the bakery
business of Baked with Love will have to incur are electricity, inventory, transportation
cost, telephone bills and some more.

3 Budgeted Profit Forecast for year ended 31st December 2021

4 Cash Budget

5 Cost Volume Profit Analysis
Break-even point (in units) = Fixed Cost / (Selling price per unit – Variable Cost per Unit)

Product 1: Cup Cakes
Fixed Cost = 28440
Contribution = 37.00
Break-even point = 28440/ (37.00) = 768 units
Product 2: Medium Cakes
Fixed Cost = 28440
Contribution = 20.30
Break-even point = 28440/ (20.30) = 1400.9 units
Product 3: Wedding Cakes
Fixed Cost = 28440
Contribution = 28.00
Break-even point = 28440/ (28.00) = 1015.7 units
Margin of Safety = (Current Sales – Break even sales)
= (18940 – 1079)
= 17861 units

CONCLUSION
From the above report, it can be concluded a business plan requires due intelligence and
efforts in setting up and should give proper assessment to the creation of the business plan. The
investment made in a business by a sole proprietor is a defining factor for the performance
capacity of the business and till what extent will it operate in the market. The business plan in the
above report concludes upon the types of costs that the bakery business will have to incur in the
future for generating revenue. The report also puts a conclusion for the break-even point for the
investment plan which assist the sole proprietor in deciding the minimum amount that is required
for generating profits in the business. Also the KPIs for the business plan of the bakery are also
evaluated to understand the key performance indicators of the business.

REFERENCES
Books and Journals:
Agoas, J.S., 2020. Cotton City Lisbon: growth strategy and business plan for the next five
years (Doctoral dissertation).
Ahmed, S., 2019. Feasibility study and business plan for a new men fairness cream in Pakistan
an entrepreneurship venture.
Escolà Soldevila, J., 2018. Mobile app: business plan (Master's thesis, Universitat Politècnica de
Catalunya).
Hang, P., 2022. Business Plan and Mobile App for a Fast Food Restaurant in Helsinki, Finland.
Kamm, C.S., 2022. FOOD BUSINESS-PLAN REVIEW APPLICATION-Facility Layout &
Equipment Specifications.
Khakhina, A. and Chataeva, A., 2021. Drawing up an effective business plan as a pledge of the
resultive strategy of the functioning of the enterprise.
Lüttmer, J., 2018. Business plan for an online booking pet related services marketplace:
Petsity (Doctoral dissertation).
Pérez Ortega, D.C., 2020. Business plan based on a new business idea: Gadget PC.
Reyes, A., and et.al., 2019. Business Plan Research Regarding Plastic Bottles.
Singh, H., Sontakke, S. and Nayak, S.K., 2020. Developing a detailed business plan (farm to fork
model) for livestock (fisheries) in a specific state (Jharkhand) of India.
Stout, M., 2021. Megan Stout Design: Design Firm Business Plan.
Torrellas Darvas, M., 2020. Business plan and implementation of a manufacturing, distribution
and retail business model (Master's thesis, Universitat Politècnica de Catalunya).
Yahaya, D.A., 2020. Individual Assignment: Business Plan Report Fundamentals of
Entrepreneurship (ENT300): Go-gurt Enterprise.