Java Bakery Business Plan: Market Analysis and Financial Needs

This business plan outlines the strategy for Java Bakery, a startup bakery and coffee shop located in Sydney. The plan includes an executive summary, table of contents, and an introduction detailing the business overview, location, products and services, main goals and objectives, and the company's vision. The market research section provides a target market analysis, SWOT analysis, and PESTEL analysis. It also covers the marketing plan, competitor analysis, financial needs, and potential investors. The plan concludes with an action plan, conclusion, and a list of references. The focus is on providing organic and gluten-free bakery items to a health-conscious market, leveraging online channels and a strategic location in Bondi Beach to gain a competitive advantage. The financial section outlines the funding goals and the financial projections. The assignment demonstrates a detailed understanding of business planning and market analysis, offering a practical guide for launching and operating a bakery business.

Running head: BUSINESS PLAN
Business Plan
Name of the Student
Name of the University
Author note

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Executive Summary
The assignment has been helpful in understanding the business plan of Bakery in Sydney.
With the help of the different kinds of internal and external market analysis, the different
strengths, weaknesses, threats and opportunities have been identified which has been
assisting in making the entire research successful. In addition, the financial needs have been
identified that assisted in understanding the requirements of business activities suitably.

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Table of Contents
Introduction................................................................................................................................3
Overview of Business and Location......................................................................................3
Products and Services............................................................................................................3
Main Goal and Objectives..........................................................................................................3
Vision.........................................................................................................................................4
Market Research.........................................................................................................................4
Target Market Analysis..........................................................................................................4
SWOT Analysis.....................................................................................................................5
PESTEL Analysis...................................................................................................................7
Marketing Plan...........................................................................................................................8
Competitor Analysis...................................................................................................................9
Outlining Financial Needs........................................................................................................10
Possible Investors.....................................................................................................................11
Action Plan...............................................................................................................................12
Conclusion................................................................................................................................14
References................................................................................................................................15

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Introduction
Overview of Business and Location
Java Bakery is one of the start-up coffees as well as bakery retail related
establishment which will be located in Sydney. The main approach of the bakery is to satisfy
the different interests of the different regular customers with the broad variety of coffee as
well as other pastry related products. The entire organization plans in building strong position
in the market in the town which will be due to the mild kind of competitive environment. The
aim of the bakery is creating the strong customer base in Sydney with employees who have
expert knowledge who will be capable of providing the proper services to the different
customers.
Products and Services
The Java Bakery will be offering freshly prepared pastry as well as bakery products
which are gluten-free mainly for the health-conscious customers. There will be more than
eight batches of bakery as well as pastry products which are prepared during day hours for
assuring that fresh goods are being served to the different customers and it will be attracting
them in comparison to other competitors present in the respective field.
Main Goal and Objectives
The main goal of the bakery business named Java Bakery is funding goals as it is
essential for understanding whether there are efficient funds for securing the operation. The
new business should have enough money upfront for sustaining itself for the first 18-24
months in the respective industry. Moreover, the objectives of the bakery business of Java
Bakery are as follows:

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 To establish the working storefront for Java Bakery
 To develop the full menu by end of second quarter and generate sales of $1.9 million
by end of the first year of establishment of business (Zhao et al., 2017)
 To cultivate properly the monthly sales for reaching $167000 by end of the first
operational year (Wirtz & Lovelock, 2017)
Vision
The main vision of the Java Bakery is to provide the baked food items of the
exceptional quality to each and every household in Sydney, Australia. Moreover, the other
aim of the bakery is to become one of the leading manufacturers of distinctively organic
cookies and pastries which is of the world class quality and it will be attracting large group of
customers. It will be the pride of the different employers, employees and stakeholders
associated with the bakery.
Market Research
Target Market Analysis
The main target market consists of the three major groups which are as follows:
 Individual Buyers or the Group related to Walk-in- As Sydney is one of the popular
destinations, the prices will be less in comparison to the other bakery shops present in
the market as it will be providing them with the similar quality products at a cheaper
rate and it will be gaining strong base of customers within 1-2 years. The café will be
situated at Bondi Beach which is the iconic beach surf and one of the famous
destinations for tourists and it will be suitable in gaining the strong presence of
tourists and they will be famous (Trigeorgis & Reuer, 2017).

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 Birthday Parties Group- It is the second target group which will be targeted by the
Java Bakery as the respective group will be capable of ordering the bulk items before
with variety of flavours. It is not labour-intensive kind of order, as these parties will
be ordering the less costly option of cakes or other items and they would be preferring
the items that are standard in quality and price as per the standards of the industry.
Moreover, there can be different customized orders for cakes and for the same, they
can charge premium pricing options, which will be attracting customers as the prices
will be lesser than the other companies which are the major competitors (Terzic-Supic
et al., 2015).
In the target market, the main focus will be on the groups of birthday parties as they
will be ready to spend more per order and they will be making the larger portion of the
customers. However, there will be various priced cakes which will be suitable in managing
the effectiveness in the competitive business market.
SWOT Analysis
With the help of the SWOT Analysis, the strengths, weaknesses, opportunities along
with threats will be analyzed as it will be suitable in understanding their position in
comparison to other competitors. The SWOT analysis will be providing them with the proper
view on understanding their effectiveness and their weaknesses on which they need to work
for gaining competitiveness.
Strengths
First and foremost, Java Bakery is the only company which will be selling the organic
and gluten-free bakery items at Bondi Beach. Moreover, the company will be expert in
generating authenticity as well as expertise in baking procedures which will be providing
extension of the product lines towards gluten-free products (Pazouki, ozi & Ziari, 2017).

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Moreover, the bakery will be present through online channels such as through online
official website that will be helpful for gaining high level of market share. In the present
scenario, it can be seen that there are different problems faced by the office goers in going to
bakery and purchase. In such scenario, they can order the food online which will be suitable
in generating high level of shared and revenues in competitive environment of business
(Pappas, 2016).
In addition, the bakery will be suitable in providing the different customers with the
handcrafted gluten-free cakes and pastries which will be starting from scratch each day and it
will be suitable in generating high level of sales (Papke-Shields & Boyer-Wright, 2017).
Weaknesses
It will be operating in Australian economy which means that the limited market
presence can be one of the major disadvantages and due to the same, their profitability might
decline in the present scenario (Noe et al., 2017).
There is medium level of competition in the Bondi Beach locality that can be a threat
and it is the major weakness for the bakery while implementing their business activities.
Opportunities
The first and foremost opportunity which can be implemented by Java Bakery is to
expand beyond Australia, Sydney as there are different other parts wherein there are health
conscious customers who can become the most attractive group of customers for Java Bakery
(McDONALD, 2016).
The bakery needs to focus mainly on branding of the different gluten-free and organic
bakery items as it will be suitable in attracting more health-conscious customers and improve

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their effectiveness in a proper manner. The scope of expansion in menus related to pastries is
high which will be beneficial in improving the brand image in a suitable manner.
Threats
There can be change in the raw materials which can affect the business of Java
Bakery in a negative manner. There can be increase in prices of raw materials that can be
impacting their presence in Bondi Beach and other countries (Karadag, 2015).
Moreover, there are different unfavourable kind of regulations of government which
can affect the growth prospects of the firm and it will be impacting the business of Java
Bakery negatively (Končar & Leković, 2016). Additionally, there is stiff competition in the
international market that can be impacting the business of Java Bakery ineffectively.
PESTEL Analysis
Political Factors- There is high level of political stability which can be helpful for the
Java Bakery in generating high level of profitability in the market (Kalu, Nto & Nwadighoha,
2017). There is improvement in the governmental infrastructure that can be acting as the
opportunity in developing effectiveness in the market in an appropriate manner.
Economic Factors- There is decline in the rate of unemployment wherein Java
Bakery will be receiving an opportunity for employing the different individuals and it will be
suitable for the high growth (Höglund, 2018).
Social Factors- There is growing culture of the organic and gluten-free food items
that will be affecting the business of the company positively (Gürel & Tat, 2017). The
increase in the health consciousness among the different customers is the other aspect that
needs to be managed by the company in a proper manner which will be created as the
opportunity.

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Technological Factors- The rise in the mobile-related purchases is the other aspect
which needs to be included in the opportunity for Java Bakery and gain high level of
revenues (Gallus & Frey, 2016). However, the presence of the coffee machines and other
machines can become a threat for them as it will be reducing their sales.
Legal Factors- The different regulations related to safety of food is the opportunity
which will be increasing their effectiveness in the business in the respective field. However,
the increase in the regulations of the employment can create huge threat for the new business
of Java Bakery (Engert, Rauter & Baumgartner, 2016).
Environmental Factors- The sustainability of business practices is the first and
foremost aspect that needs to be managed by Java bakery as the Australian economy is highly
effective in case of the CSR related activities (DeSarbo, Blanchard & Atalay, 2017).
Moreover, there is high level of opportunity for the selling environmentally friendly products
that will be suitable for managing business effectively (Abdel-Basset, Mohamed &
Smarandache, 2018).
Marketing Plan
As Java Bakery is one of the new companies which will be opening their shop at
Bondi Beach, Sydney, it can be seen that for gaining competitiveness in the competitive
business market, the proper promotional strategies are required to be implemented by the
company for becoming popular and increase their profitability (Aghazadeh, 2015). The
organization can use the advertising strategy wherein they will be advertising their products
through the usage of television, internet along with print media.
The advertising is the core element that needs to be used by them as it will be helpful
for them in creating awareness among the public related to the gluten-free and organic bakery
items that will enhance their brand and this will be increasing their profitability in a suitable

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manner (Aguinis, Edwards & Bradley, 2017). It will be creating goodwill for the organization
and gains the loyalty among the customers after reaching the maturity stage as well in the
competitive market.
Competitor Analysis
There are various competitors present in the Australian economy for Java coffee,
however, there is not so strong level of competition. The major competitor includes Dukes
Coffee Roasters and Modern Baking Company. From the above, it can be seen that
competition in local area is sparse and it does not provide nearly level of quality of the
product and services provided to customers as Java Bakery (Bauman, McFadden & Jablonski,
2018). The different local customers in the market of Sydney are looking for products which
are of high quality in the relaxing kind of atmosphere. They demand the unique as well as
classy experience which will be beneficial for them in generating high sales and revenues in
the market in an appropriate manner. Java Bakery needs to provide the customers with the
different kinds of coffee and bakery products and win the hearts of customers (Bohari, Hin &
Fuad, 2017).
Dukes Coffee Roasters are considered to be the technologically savvy competitor
which specializes in making fresh coffee and other bakery related items. The different
products are conventionally made available to different customers through online and mail
orders. The website offering online stores allows the customers for browsing and purchasing
the different items as per their choice which satisfies their demand and increases the
percentage of sales in the competitive market as well.
On the other hand, Modern Baking Company introduces the different kinds of high-
quality whole-beans coffees as well as espresso beverages which satisfies the need of clients.
In addition to the sales through the company-operated retail stores, it can be seen that there

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are different distribution channels which are being used by them in managing the different
orders of the clients and serving them with best quality products in an appropriate manner.
From the competitor analysis, it can be identified that there are two competitors in
Sydney economy which can poses threat to Java Bakery and it can be solved with the help of
the different kinds of technologically advanced features for serving the coffee and other
products in the market and improve their presence in the market appropriately as well. Java
Bakery needs to possess the different machines and the organic food items specially for the
health-conscious customers that will be helping them in generating high level of sales and
improving their revenue percentage to a large extent as well.
Outlining Financial Needs
While establishing and starting a new bakery business named Java Bakery, there are
different financial necessities which are required to be identified as it will be effective for the
organization’s growth in the competitive environment (Camilleri, 2018). In the Australian
economy, there are few major competitors who are present and can be a huge threat for them.
In such scenario, there are different financial needs which needs to be managed by the Java
Bakery for becoming the most attractive bakery and café joints among the target customers.
The primary and major expenses for establishing Java Bakery is $10,000 and the cost
will be calculated on the basis of the different kinds of estimation of loan which is $5000 and
capital investment of the owner is $5000. Moreover, the business owners of the Java Bakery
will be investing about $5000 of the entire savings for covering the different other costs of
the start-up which is necessary and the entire amount is representing the investment of the
owners as well.
Financial Requirements
Particulars Amount or Expenses Incurred

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Consultants $0.00
Insurance $50,000
Mortgage $0.00
Research and Development related
Activities
$1200
Ingredients of Bakery such as Raw
Materials
$2000
Salary provided to staffs $1200
Advertisement Related Expenses $2000
Rent of the Shop $1500
Total Expenses for Start-up Business $57900
Start-up Assets
Requirement of the cash $500
Other Current Assets $0.00
Long-Term Assets $500
Total Assets Calculation $1000
Total Requirements $58900
From the financial statement of Java Bakery, it can be seen that there will be
requirement of $58900 which will be effective in managing the effectiveness of the new
bakery in the Sydney market wherein there are only two major competitors which can pose
major threat to Java bakery. The business needs financial aspects for meeting the daily
operations in a successful manner along with meeting the expenses as well as payments
which are necessary and will be suitable for generating high level of revenues and
profitability within the stipulated time frame of one year (Certo et al., 2016). The business
finance is required for all types of businesses for example- Bakery Business in which the
salary provided to staffs, rent and the other advertisement expenses are necessary and play a
vital role in generating high level of revenues within a short span of time.