Business Plan of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

1.Abstract of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

This paper discusses the new business that is Gumball Knedle in Beograd, Serbia. Gumball Knedle aims to provide a vast selection of sweet & savory original pastries each and every day, the company provide a convenient, accessible nourishing, pastries each and every day to the taste buds of the customers. The company believes on finest quality ingredients and customer satisfaction is the main concern. Moreover, business include the B2C and B2B business dimensions to reach the sales and marketing plans.

The marketing strategies include both digital and electronic advertisements which are aimed at attracting customers who don’t use social media and those who spend their time on social media. In this manner, both types of target audience will be attracted and customers will be able to obtain products from the store and website.

In the report there is a focus on the new business that Gumball Knedle has the strong baking team and there are plans related to operational planning, cost efficiency, and flexibility in development of strategy etc. the company wants to grow through the social media platforms for the purpose of advertising and promotion. Gumball Knedle is a limited liability company (LLC) company in which members will be the owners of the company and there will be there are CEO and top executives in the company. Gumball Knedle has an initial amount of $ 78,148 to initiate the business a therefore the company needs total source of funds $60,000 as the startup expenses

Table of Contents

1. Abstract 3

1.1. Mission Statement 4

1.2. Objectives. 4

1.3. Keys to Success. 4

2. Company Summary. 5

2.1. Company Ownership. 5

2.2. Startup Summary. 6

Table 1. 6

3. Products and Services. 8

4. Market Analysis Summary. 9

4.1. Target Segmentation. 9

4.2. Target Market Segmentation Strategy. 9

4.3. Industry Analysis. 10

5. Web Plan Summary. 10

5.1. Website Marketing Strategy. 11

6. Strategy and Implementation Summary. 11

6.1. SWOT Analysis. 12

6.1.1. Strengths. 12

6.1.2. Weakness. 12

6.1.3. Opportunities. 13

6.1.4. Threats. 13

6.2. Competitive Advantage. 14

6.2.1. Competitive Edge. 15

6.2.2. Exit Strategy. 15

6.3. Marketing Strategy. 16

6.4. Sales Strategy. 17

6.4.1. Sales Forecast 18

6.5 Milestones. 18

7. Management Summary. 19

7.1. Personnel Plan. 19

8. Financial Plan. 20

8.1 Projected Profit and Loss. 20

8.2 Projected Cash Flow.. 22

8.2.1 Cash Flow by Month. 22

8.2.2. Cash Flow by Year 28

8.3 Projected Balance Sheet 30

References. 32

1.1.Mission Statement of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

The mission of Gumball Knedle is as following:

Gumball Knedle aims to provide a vast selection of sweet & savory original pastries each and every day. Gumball Knedle nature the idea that our offerings are generally enjoyed by families and friends, making Eastern Europe part of life’s celebration and traditions.

1.2.Objectives of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

The objective of Gumball Knedle is to provide a convenient, accessible nourishing, pastries each and every day to the taste buds of the customers. There are quality baked products to sharpen our manufacturing and marketing of the company. Gumball Knedle believes on the finest quality ingredients and there is the best dedication of customer service to the customers. Gumball Knedle has the strong baking team and there are endless thoughts to produce sweet & savory original pastries with the collaboration of their recipes. Employee recognition programs and employee education is concerned by the bakery (Bamberger, Biron, & Meshoulam, 2014).

1.3.Keys to Success of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

Gumball Knedle (Serbian Sweet dumplings) and pastry industry focus on dessert specialists through constantly eating, testing and researching on the products.

v  Customer satisfaction is the main concern of Gumball Knedle.

v  A large amount of free time is spent in bakeries to provide assistance, create own and other desserts in the city.

v  B2C and B2B business dimensions

v  There are plans to reach sales and marketing through operational planning, cost efficiency, and flexibility in the development of strategy

v  Utilization of advantages from the social media platforms for the purpose of advertising and promotion of the sweet and savory original pastries

2. Company Summary of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

Gumball Knedle is a small pastry business in a Beograd, Serbia. Gumball Knedle will be selling the products to friends and family. Gumball Knedle plans focuses on the huge choice of sweet and flavorful unique baked goods, it creates sweet and appetizing unique Knedle with the coordinated efforts. Gumball Knedle makes Knedle ("dumpling"). It is a dish made of boiled potato-dough filled with some kind of fruit: plums, strawberries, raspberries or cherries. Knedle dish is delicious and irresistible; Serbian potato plum dumplings are highly in demand in Beograd, Serbia and customers love to buy it. The aim of the company is to sell quality products at reasonable prices for the customers. Gumball Knedle (Serbian Sweet dumplings) focuses on the customer fulfillment testing and inquiring about on the items. There is a focus on extra time to help different treats. A B2C and B2B business measurement is concerned to promote the business (Aileron, 2011). Moreover, the system is given value by noticing operational planning, cost effectiveness, and adaptability etc.                                                                                          The business location is

Gumball Knedle

Beograd, Serbia

2.1. Company Ownership of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

There is the CEO and top executives in the company. Gumball Knedle is a limited liability company (LLC) company in which members will be the owners of the company. Limited Liability Company, Gumball Knedle focuses on LLC because it has little maintenance requirements and also little mandatory governance. The team has the enthusiasm to get success. The management of the Gumball Knedle has a clear vision wand the major focus on the company is to maintain or achieve the customer satisfaction level through providing content taste in sweet & savory original pastries (Leach & Melicher, 2016).

2.2. Startup Summary of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

In the first operational year, the expense list for Gumball Knedle is much more when compared to the other years. However, there is the focus on investors like Dragan Terzic, Nemanja Milunovic and other investors in order to get the money. However, there is also focus on the operational or installation costs, purchase, and construction, remodeling and other. The total buildings/real estate is also mentioned in the list. Advertising and promotion costs, personnel salaries, purchases and rental amounts, utilities, supplies, machinery, etc. are also mentioned (Murray, 2016).

Table 1 of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

Gumball Knedle has an initial amount of $ 78,148 to initiate the business a therefore the company needs total source of funds $60,000 as the startup expenses.

Startup Expenses
Gumball Knedle
Sources of Capital
Owners' Investment (name and percent ownership)
Dragan Terzic	50	$         20,000
Nemanja Milunovic	50	20,000
Other investor		-
Other investor		-
Total Investment		$         40,000
Bank Loans
Bank 1		$         20,000
Bank 2		-
Bank 3		-
Bank 4		-
Total Bank Loans		$         20,000
Other Loans
Source 1		$                  -
Source 2		-
Total Other Loans		$                  -
Startup Expenses
Buildings/Real Estate
Purchase		$         15,000
Construction
Remodeling		5,000
Other		-
Total Buildings/Real Estate		$         20,000
Leasehold Improvements
Truck Improvements		$           1,000
Total Leasehold Improvements		$           1,000
Capital Equipment List
Furniture		$              500
Equipment		3,000
Fixtures		1,000
Machinery		800
Other		-
Total Capital Equipment		$           5,300
Location and Admin Expenses
Rent & Related Costs		$              800
Utility deposits (Truck Commissary)		1,200
Legal and accounting fees(Health permit)		1,000
Prepaid insurance		700
Pre-opening salaries		2,000
Other(gas)		300
Total Location and Admin Expenses		$           6,000
Opening Inventory
Category 1		$              100
Category 2		100
Category 3		100
Category 4		100
Category 5		100
Total Inventory		$              500
Advertising and Promotional Expenses
Advertising		$              700
Signage		300
Printing		300
Travel/entertainment		-
Other/additional categories		500
Total Advertising/Promotional Expenses		$           1,800
Summary Statement
Sources of Capital
Owners' and other investments		$         40,000
Bank loans		20,000
Other loans		-
Total Source of Funds		$         60,000
Startup Expenses
Buildings/real estate		$         20,000
Leasehold improvements		1,000
Capital equipment		5,300
Location/administration expenses		6,000
Opening inventory		500
Advertising/promotional expenses		1,800
Total Startup Expenses		$         34,600

3. Products and Services of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

Gumball Knedle will be producing a number of products in the market and selling them to the customers. Some of the main products include breads, rolls, pies, soft cakes, simple cakes, and retail bakery products. These are the products which will be sold to customers and other than these products, there are some services as well which will be provided to customers. Some of the services are concerned with discounts provided to loyal and new customers. The market segment is divided among these products and each of these products controls a specific percentage of the market. For instance, 32 percent of market will be controlled by breads, 19 percent will be controlled by rolls, 15 percent will be controlled by cakes, 10 percent will be controlled by retail bakery products, 8 percent will be controlled by soft cakes, and 2 percent will be controlled by pies.

With these products and services, customers in the market will be attracted and these are also the products which will be sold to customers. With time, variations will be introduced in these products and services but in the primitive stages of the business, these products will be launched. And in order to increase awareness about these products, most of the focus will be on advertising the products through social media campaigns such as Instagram Page, Facebook Ads, and Website Selling.

4. Market Analysis Summary of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

There are three dimensions of marketing on which the organization will be focusing and these dimensions include business to business, personal, and online sales. In accordance with these dimensions, people who visit shopping malls and other shops on a regular basis are the primary target audience. The target audience also includes those people who are connected with social media and also have a presence on either Facebook or Instagram. The last segment of target audience is businesses or communities which sell bakery items.

In recent times, the use of both mobile phones and social media platforms has increased significantly. In different parts of the world, numerous people are connected with each other through Facebook and Instagram and during their use, they are subjected to various types of advertisements as well. In this manner, they are attracted and targeted by organizations and products are sold. The same type of marketing strategy will be a component of overall marketing strategy and it will help in attracting customers. Therefore, it can be said that the use of social media for targeting these audiences will prove to be both effective and successful since it promises the benefits and attraction of customers (Wang, Hsiao, Yang, & Hajli, 2016).

4.1. Target Segmentation of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

            In general, the target audience for Gumball Knedle includes both children and adults. There are no limitations on who can purchase the products because the products are delicious bakery items which are healthy for every single person. Other than just these people, individuals who use social media platforms will also be targeted and they are also a part of the target audience. The last part of the target audience is composed of agencies and businesses which need to deal with bakery items such as pies and cakes, and sell them to customers.

4.2. Target Market Segmentation Strategy of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

            As explained above, there are no limitations to who can purchase the products of Gumball Knedle. For instance, both children and adults can buy and consume the products. In addition to it, different strategies are created which are aimed at attracting both of these target segments. Meanwhile, online marketing strategies are aimed at attracting customers who use both Facebook and Instagram on a regular basis (Michel Wedel, 2012).

4.3. Industry Analysis of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

Considering the fact that Gumball Knedle operates in the bakery industry which is concerned with producing and selling food based on flour in an oven, understanding how it operates is not difficult at all. In fact, any organization or business that is successful in producing delicious products and acquiring the attention of customers, it can be effective in producing sales. The only important thing to note is that the firm or bakery should ensure to meet the preferences of customers. In this case, Gumball Knedle is matching customer preferences and it will raise awareness through social media marketing and digital marketing. Both of these strategies will attract customers and will help in increasing the sales of products.

            In order to run a business successfully, it is important to perform the industry analysis and in this case, it has been determined that targeted customers are keen to consume bakery products and they can also be attracted through social media and digital marketing. Thus, the industry is promising for the business.

5. Web Plan Summary of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

Actually, it wouldn’t be wrong to say that knowing about the internet is significant for every business that targets customers through social media platforms and sells products through an e-commerce website. Without the knowledge about these aspects of internet, it wouldn’t be possible for the organization to target the audience and sell products in an effective manner. In the web-plan, there are two important parts which include Gumball Knedle’s website and its social media platforms. Both of these are powered by the internet and play an important role in attracting customers and selling products.

            The website will be based on the name of the organization and it will have different features for selling products. For instance, visitors of the website would be capable of making an account and ordering the products online. In addition to it, they would also be capable of paying for the products through their debit cards and PayPal. Both of these options will be available and customers will have the choice of paying through either of these options. They will be able to use these features upon making an account. An important thing that will be ensured within the website will be to make it attractive. The design of the website will complement the logo of the firm and it will be ensured that the website is user-friendly so that customers can easily perform the required tasks without having to face any issue (Weinstein, 2013).

            Meanwhile, pages will be developed on both Facebook and Instagram which will be featuring the products of Gumball Knedle. There will be pictures of products such as breads and pies on both of the pages. On these pages, customer will be able to review the products and give their opinions or experiences about these products. Other than just being pages where customers will be able to know about the experiences of others, these pages will also direct customers how to purchase the products. Lastly, in order to evaluate the performance of these online platforms, their analytics will be analyzed on a regular basis. It will help in determining whether these online platforms are effective in attracting customers and promoting sales or not (Rossi, 2011).

5.1. Website Marketing Strategy of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

Marketing strategies are considered vital in not only raising awareness about the products and organization but also in attracting them to the firm and increasing the sales of products. That is the reason why most of the organizations have separate departments for marketing which only control how customers are to be targeted and how they can be attracted to the firm in an effective and quick manner. In order to ensure that Gumball Knedle is running properly in the market, marketing strategies have to be created and in this section, how customers will be attracted through its online presence is summarized (Snedeker, 2018).

The marketing department will be responsible for creating the website marketing strategy and it will utilize the firm’s online presence for attracting customers and selling products. An important component of this strategy is promotions and discounts offered to customers. Following are the examples of promotions which will be utilized for selling products:

v  35% will be off for first-timers on all products.

v  10% will be off on products if customers purchase over ten products.

These are some of the promotions that will be offered to customers and other than offering discounts to first-timers, there will be occasional discounts as well which will be set on some specific days. These types of promotions and discounts will be set on products available online and in-store. For instance, promotions will be set on events such as Thanksgiving and Halloween. It will play an important role in attracting customers. The marketing department will also be responsible for evaluating the performance of these strategies and how effective these strategies are in attracting customers and improving the sales of products. If strategies are not successful and don’t indicate any progress then changes will be made to these strategies by the marketing department.

            These are the marketing strategies that will be utilized in order to attract the target audience. In addition to it, if changes are necessary in these strategies then the senior manager will be consulted and changes will be made (Baker, 2014).

6. Strategy and Implementation Summary of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

In this section, different strategies will be analyzed in this section and external aspects of the organization will also be analyzed.

6.1. SWOT Analysis of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

It can be said that each and every organization faces several issues as they continue to operate in the market. Other than just issues, they also experience some opportunities which they can utilize to grow in the market and increase their sales. Similar to how risks can be associated with anything, opportunities can also be related to different aspects and elements which can be taken by the firms to expand effectively. There are some strengths which are possessed by organizations as well. For instance, there are some firms which have a strong customer base while there are some firms which have unique products that cannot be produced by other organizations. These are the strengths of firms which offer them a competitive advantage within the market and among their competitors. In addition to strengths, there are some weaknesses which are possessed by organizations in the market as well. For instance, a firm might not be able to keep up with the changing preferences of customers and this will be a weakness of the firm.

            In order to determine these strengths, threats, weaknesses, and opportunities, SWOT analysis is performed (Phadermrod, Crowder, & Wills, 2016).

6.1.1. Strengths of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

            One of the major strengths possessed by Gumball Knedle is its ease of access to targeted customers. What makes it easy to attract customers is the number of ways which can be utilized by the organization. For instance, the organization can attract customers not only by the traditional means of advertisement but also through online platforms. The second strength possessed by the firm is that there are significant growth opportunities as with the utilization of right opportunities can enable the firm to grow not only in size but also in sales.

The third strength is that the place chose for store is quite attractive and tourists from around the world visit the place. Obviously, tourists are keen to try and experience new products. Products can be sold to them and a foreign base of customers can also be established by the firm. The fourth strength of the firm is that products are unique and delicious and unique in both taste and quality. Due to it, other competitors cannot produce the same products. The fifth strength is that the bakery market is expected to expand on an annual basis and this provides the firm with the opportunity to grow as well.

6.1.2. Weakness of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

            There are only a few weaknesses possessed by Gumball Knedle. For instance, the first weakness is that it is quite difficult to predict when sales will meet the expected standards and when requirements will be fulfilled. When predictions are ineffective, it becomes difficult to modify the strategies in such a manner that customers are attracted to the firm. The second weakness possessed by the organization is that the marketing department doesn’t possess the required personnel and due to it, strategies are not ensured to be as efficient as expected. For instance, in order to make strategies in an effective manner, talented personnel is necessary and without the experts, it becomes difficult for the marketing department to make successful strategies.

            The last weakness possessed by Gumball Knedle is that foreign customers wouldn’t be able to purchase the products because the delivery service is limited to only the area in which the organization is operating. Additionally, the product lifecycle of bakery items is quite low due to which products cannot be transported to places which are far away from the production unit. Therefore, customers living in foreign nations cannot be targeted by the firm and the nature of the products also limits the opportunities of the firm to expand.

6.1.3. Opportunities of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

            One of the most beneficial aspects about running a bakery and producing related products is that the firm is capable of acquiring numerous opportunities which can be utilized be it to expand in the market. The very first opportunity that can be taken by the company is to introduce a new line of products without having to face significant issues. For instance, the organization can choose to either introduce a new variant of the existing product or develop a completely new product which can be effective in attracting customers.

            Another significant opportunity available to the organization is that raw materials for producing the products can be purchased easily. The firm doesn’t have to face significant issues or risks in acquiring the materials which are considered important for the development of products. Moreover, they are quite cheap which means that whenever the firm wants, it can increase the supply of products to meet the increasing demands of customers.

6.1.4. Threats of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

There are some threats which are faced by Gumball Knedle as well. For instance, although the chances are less, it is possible that competitors might produce same types of products and sell them at a cheaper cost. Due to it, the sales of the organization will be at risk. If customers begin to get a substitute of the products at a comparatively low price then it will adversely influence the customer base of the organization as customers will begin to purchase the substitutes. This is one of the main threats which are being faced by the firm. 

 Another threat which is faced by the firm is concerned with the low barrier to the entrance of new competitors. The only barrier is formed by the existing preferences of customers and regulations placed on the firms by the government. If these regulations are met and products are developed according to the preferences of customers, new entrants will also be capable of achieving success and they will be able to compete with Gumball Knedle. It means that the organization always has to be aware of the market conditions and whether there are new competitors in the market or not. Otherwise, the firm will not know when a competitor begins to adversely influence its customer base and sell its own products.

6.2. Competitive Advantage of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

Following are the competitive advantages of Gumball Knedle:

v  Unique Products

v  Values and Cost Effectiveness

v  Effective Strategies

v  Ease of Access to Customers

v  Broad Target Audience

Unique Products of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry:

            The products developed by the organization are unique and that is one of the competitive advantages possessed by it. Considering the fact that its products cannot be duplicated, or at least have a less probability, the organization can continue to make and sell these products without facing the threat of competitors producing the same products and selling them at a lower price. The products have their own flavor and aroma which are not exhibited by other types of products and that plays an important role in building the preference of customers.

Values and Cost-Effectiveness of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry:

            Another competitive advantage which is possessed by Gumball Knedle is its strong customer base which is attracted by its values and cost-effectiveness. For instance, if the organization will care for its customers then customers will develop an image about the firm. This image will be maintained as long as the organization continues to care about its customers and makes them happy through different strategies and plans. Customers are also attracted to the firm because of its cost-effective products. In spite of the fact that its products are unique and delicious, they are still affordable in comparison with other products.

Effective Strategies of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry:

            What will make Gumball Knedle effective in the market is its strategies which play an important role in attracting customers. For instance, in order to attract customers, traditional digital media is not selected for promoting the business. Digital mediums have also been chosen which are effective in attracting a diversity of customers. For instance, digital media attracts those customers who don’t utilize social media while the platforms of social media attract those customers who don’t watch television but use either Facebook or Instagram.

Ease of Access to Customers of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry:

            Another advantage which is possessed by the organization is that it can access customers easily. As explained above, there are two ways through which consumers can be attracted. The first way is to attract them through digital media which the other way is to gain their attention and raise awareness about products through the use of electronic media.

Broad Target Audience of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry:

Another advantage of the organization is that there are no limitations on customers who can purchase the products. For instance, both children and adults can purchase the bakery items because they are healthy and don’t possess the elements which can adversely influence the health of customers. Not many competitors produce the products which can be consumed on a daily basis but the bakery items created by Gumball Knedle include the materials which are not harmful to health regardless of the fact that they are consumed by customers regularly.

6.2.1. Competitive Edge of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

A competitive edge possessed by Gumball Knedle is the evidence that products created by it are not harmful to health and they are comparatively cheaper than other products. In the market, competitors don’t really offer cheap products and bakery items such as pies and cakes. However, these products created by the firm will be comparatively cheap and it will play an important role in attracting customers.

6.2.2. Exit Strategy of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

It can be said that the exit strategy is concerned with producing new line of products for meeting the preferences of customers when the current objective of attracting customers and establishing a loyal customer base is fulfilled. This strategy will be effective only when this objective is achieved and this strategy will not be implemented until the sales have met the expected standards. This is the requirement of exit strategy and it requires the firm to ensure that the current objectives have been acquired before it can work on the exit strategy.

            Normally, when customers become satisfied with a product, they feel the need to purchase a product which is different from the previous one. In order to fulfill this need, they begin to seek out other products. The situation will be faced by Gumball Knedle as well and that is why the exit strategy has been developed. It will ensure that the organization doesn’t stop growing even when customers are satisfied with the current line of products.

6.3. Marketing Strategy of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

            In order to make the business successful, there are several marketing strategies which are implemented to ensure that the optimal number of customers are attracted to the organization. Some of the key strategies are as follow:

v  Digital Advertisement

v  Electronic Advertisement

v  Promotions on Products

Digital Advertisement of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry:

            In order to attract customers who don’t spend their time using Facebook and Instagram, advertisement through television has been developed. For instance, customers will be capable of viewing the advertisements on televisions about the products and this will enable the firm to attract even those customers who are not accustomed to the internet. Additionally, in order to gain the attention of customers, creative advertisements will be made (Kerin & Hartley, 2015).

Electronic Advertisement of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

            Electronic media includes two platforms of social media which include Facebook and Instagram. Both of these platforms are considered quite famous among people and it has also been determined teenagers and children spend a significant amount of time using these platforms. Advertisements on these platforms are quite common and this strategy will be utilized to attract customers who are familiar with these platforms. Other than just advertising on these platforms, pages will also be created on these platforms where customers can not only view the products but also know how they can purchase those products.

            In addition to it, customers will be capable of posting their comments on the page about their experiences and whether they were satisfied by the services they obtained or not. This will play an important role in attracting more customers and increasing the sales of Gumball Knedle.

Promotions on Products of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry:

            Another important marketing strategy that will be utilized to attract customers and create awareness among them is concerned with setting promotions on products. There will be different types of promotions which will be placed on bakery items. For instance, first-timers will be able to experience a discount of 35 percent on each and every product they purchase. Similarly, after exceeding a certain amount of products, there will be a discount of 10 percent on the overall cost of products. Similarly, there will be discounts on products with respect to events as well. For instance, there will be discounts and promotions on products if it is Halloween or Christmas.

6.4. Sales Strategy of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

            In general, the sales strategy is concerned with converting visitors into loyal customers and in order to do that, following offers are provided to customers:

v  First-timers can enjoy a discount of 35% on each and every product whether they purchase the product from the bakery or from the website. In this manner, customers can purchase the required products without having to visit the bakery because the same promotions will be applied to products available on the website as well.

v  If customers purchase products up to a specific amount, they will be able to experience a discount of 10% on the overall cost of products. This way, whenever they purchase up to that amount or exceed it, they will be able to pay comparatively less for the products.

6.4.1. Sales Forecast of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

            The sales of products will not be high from the start because customers will not have significant awareness about the products. However, with the passage of time, sales will increase and on a monthly basis, it will increase as follow:

            At the beginning of 2020, the sales will only reach $40,000. It will stay the same until March and by the end of April, sales will reach $50,000. This increment will be observed because awareness about the products will be increased and there will be a continuous increase of $10,000 by every month until July when the sales will reach $80,000. Up to November, sales will stay the same and with the introduction of a new variant, the sales will increase to $85,000 by the end of December.

6.5 Milestones of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

Milestones	Due Date	Who’s Responsible	Details
Permits and Licenses	15th December, 2019	Owner	Applying for the required permits
Setting the Management Team	5th January, 2020	Owner	Setting the management team
Implementing Strategies	15th January, 2020	Owner	Ensuring the implementation of marketing strategies

 7. Management Summary

7.1. Personnel Plan of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

For the pastry company, Gumball Knedle there is the need to focus on the day to day functions; the teams of the bakery include the project director, project manager, co-owner, change manager, project administrator, project budget and finance officer and the project coordinator. The organizational chart of the bakery is mentioned below. The project director will be responsible for the overall success of the Gumball Knedle, he also approves and authorizes the work activities. The project director should have effective skills, leadership skills, effective communication, and management and scheduling, etc. (Grant, Hackney, & Edgar, 2010).

Moreover, the project manager needs to have effective information on different phases so that there could be proper controlling of the project based on cost, quality, time, scope, etc. the project budget and finance officer should perform all the duties related to the finance or money. Their project coordinator will manage the timely delivery of the process, as well as the performance of individuals. The project administration includes the external and internal project meetings and also provides possible assistance in the production process (Ahammad, 2017).

8.Financial Plan of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

Gumball Knedle has an initial amount of $ 78,148 to initiate the business a, therefore, the company needs a total source of funds $60,000 as the startup expenses.  Gumball Knedle is much more when compared to the other years. However, there is a focus on investors like Dragan Terzic, Nemanja Milunovic and other investors in order to get the money.

8.1 Projected Profit and Loss of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

FORCASTED INCOME STATEMENT
	year 1	year 2	year 3	year 4
Total net Revenue (Sales)	$400,000.00	$432,000.00	$466,560.00	$503,884.80
Costs of sales	$45,000.00	$48,600.00	$52,488.00	$56,687.04
Gross profit	$355,000.00	$383,400.00	$414,072.00	$447,197.76
Gross profit margin	89%	89%	89%	89%
Variable expenses
Salaries/ wages	$4,560.00	$4,788.000	$5,027.400	$5,278.770
Advertising	$3,523.00	$3,699.150	$3,884.108	$4,078.313
Legal/ accounting	$7,235.00	$7,596.750	$7,976.588	$8,375.417
Miscellaneous	$33,654.00	$35,336.700	$37,103.535	$38,958.712
Motor Vehicle		$0.000	$0.000	$0.000
Office supplies	$14,456.00	$15,178.800	$15,937.740	$16,734.627
Payroll expenses		$0.000	$0.000	$0.000
Utilities	$22,563.00	$23,691.150	$24,875.708	$26,119.493
Total variable Expenses	$85,991.00	$90,290.550	$94,805.078	$99,545.33
Fixed expenses
Rent	$44,564.00	$46,346.56	$48,200.42	$50,128.44
Depreciation	$3,358.00	$3,492.32	$3,632.01	$3,777.29
Insurance	$7,523.00	$7,823.92	$8,136.88	$8,462.35
License/ permits	$6,256.00	$6,506.24	$6,766.49	$7,037.15
Loan repayments		$0.00	$0.00	$0.00
Miscellaneous	$5,521.00	$5,741.84	$5,971.51	$6,210.37
Total fixed expenses		$0.00	$0.00	$0.00
Utilities	$67,222.00	$69,910.88	$72,707.32	$75,615.61
		$0.00	$0.00	$0.00
Total Expenses	$153,213.00	$159,341.52	$165,715.18	$172,343.79
Net profit (loss) before taxes	$201,787.00	$209,858.48	$218,252.82	$226,982.93
Taxes	$14,000.00	$14,560.00	$15,142.40	$15,748.10
Net profit (loss) after taxes	$187,787.00	$195,298.48	$203,110.42	$211,234.84

 Estimated that sales grow with rate of 8%

8.2 Projected Cash Flow

8.2.1 Cash Flow by Month of Gumball Knedle (Serbian Sweet Dumplings) and Pastry Industry

CASH FLOW	January	February	March	April	May	June	July	August	September	October	November	December
OPENING BALANCE		157168	341107.77	555270.3349	803505.9914	1090108.027	1419861.077	1798094.599	2230742.003	2724406.013	3286430.92	3924982.43
Cash Inflow
Sales	358897	394786.7	434265.37	477691.907	525461.0977	578007.2075	635807.9282	699388.721	769327.5931	846260.3525	930886.3877	1023975.026
Other income	88787	97665.7	107432.27	118175.497	129993.0467	142992.3514	157291.5865	173020.7452	190322.8197	209355.1016	230290.6118	253319.673
Debtor receipts	856	941.6	1035.76	1139.336	1253.2696	1378.59656	1516.456216	1668.101838	1834.912021	2018.403223	2220.243546	2442.2679
Asset sales	77127	84839.7	93323.67	102656.037	112921.6407	124213.8048	136635.1852	150298.7038	165328.5741	181861.4316	200047.5747	220052.3322
Total Cash Inflow	525667	578233.7	636057.07	699662.777	769629.0547	846591.9602	931251.1562	1024376.272	1126813.899	1239495.289	1363444.818	1499789.3
Cash outflow
Stock (purchases)	22789	24384.23	26091.1261	27917.50493	29871.73027	31962.75139	34200.14399	36594.15407	39155.74485	41896.64699	44829.41228	47967.47114
Utilities (electricity, gas, water)	7462	7984.34	8543.2438	9141.270866	9781.159827	10465.84101	11198.44989	11982.34138	12821.10527	13718.58264	14678.88343	15706.40527
Telephone	6656	7121.92	7620.4544	8153.886208	8724.658243	9335.38432	9988.861222	10688.08151	11436.24721	12236.78452	13093.35943	14009.89459
Superannuation	99234	106180.38	113613.0066	121565.9171	130075.5313	139180.8184	148923.4757	159348.119	170502.4874	182437.6615	195208.2978
Repairs & maintenance	45547	48735.29	52146.7603	55797.03352	59702.82587	63882.02368	68353.76534	73138.52891	78258.22593	83736.30175	89597.84287	95869.69187
Rent & rates	7781	8325.67	8908.4669	9532.059583	10199.30375	10913.25502	11677.18287	12494.58567	13369.20667	14305.05113	15306.40471	16377.85304
Printing & Stationary	8894	9516.58	10182.7406	10895.53244	11658.21971	12474.29509	13347.49575	14281.82045	15281.54788	16351.25624	17495.84417	18720.55326
Credit card fees	22251	23808.57	25475.1699	27258.43179	29166.52202	31208.17856	33392.75106	35730.24363	38231.36069	40907.55594	43771.08485	46835.06079
Fees (solicitor)	87756	93898.92	100471.8444	107504.8735	115030.2147	123082.3297	131698.0928	140916.9592	150781.1464	161335.8266	172629.3345	184713.3879
Income tax	2535	2712.45	2902.3215	3105.484005	3322.867885	3555.468637	3804.351442	4070.656043	4355.601966	4660.494103	4986.728691	5335.799699
Insurance	4435	4745.45	5077.6315	5433.065705	5813.380304	6220.316926	6655.73911	7121.640848	7620.155708	8153.566607	8724.31627	9335.018408
Interest paid	5685	6082.95	6508.7565	6964.369455	7451.875317	7973.506589	8531.65205	9128.867694	9767.888432	10451.64062	11183.25547	11966.08335
Lease/loan payments	9956	10652.92	11398.6244	12196.52811	13050.28508	13963.80503	14941.27138	15987.16038	17106.26161	18303.69992	19584.95891	20955.90604
Licensing	3241	3467.87	3710.6209	3970.364363	4248.289868	4545.670159	4863.86707	5204.337765	5568.641409	5958.446307	6375.537549	6821.825177
Membership & affiliation	5623	6016.61	6437.7727	6888.416789	7370.605964	7886.548382	8438.606768	9029.309242	9661.360889	10337.65615	11061.29208	11835.58253
Misc.	8888	9510.16	10175.8712	10888.18218	11650.35494	12465.87978	13338.49137	14272.18576	15271.23877	16340.22548	17484.04126	18707.92415
Motor vehicle expenditure	2323	2485.61	2659.6027	2845.774889	3044.979131	3258.12767	3486.196607	3730.23037	3991.346496	4270.74075	4569.692603	4889.571085
Bank fees & charges	9744	10426.08	11155.9056	11936.81899	12772.39632	13666.46406	14623.11655	15646.73471	16742.00614	17913.94657	19167.92283	20509.67742
Advertising & marketing	125	133.75	143.1125	153.130375	163.8495013	175.3189663	187.591294	200.7226846	214.7732725	229.8074016	245.8939197	263.106494
Accountant fees	7574	8104.18	8671.4726	9278.475682	9927.96898	10622.92681	11366.53168	12162.1889	13013.54213	13924.49007	14899.20438	15942.14869
Total outgoing	368499	394293.93	421894.5051	451427.1205	483027.0189	516838.9102	553017.6339	591728.8683	633149.8891	677470.3813	724893.308	566762.9609
Monthly cash balance	157168	183939.77	214162.565	248235.657	286602.036	329753.05	378233.522	432647.404	493664.01	562024.908	638551.51	933026.339
CLOSING BALANCE	157168	341107.77	555270.335	803505.991	1090108.03	1419861.08	1798094.6	2230742	2724406.01	3286430.92	3924982.43	4858008.77

 Assume that cash outflow grow with the rate of 7%

Gumball Knedle
Fiscal Year Begins		Jan-20
							12-month Sales Forecast
	Jan-20	Feb-20	Mar-20	Apr-20	May-20	Jun-20	Jul-20	Aug-20	Sep-20	Oct-20	Nov-20	Dec-20	Annual Totals
Plum units sold	350	400	450	500	500	600	650	600	550	600	550	600	6350
Sale price @ unit	3.50	3.50	3.50	3.50		3.50	3.50	3.75	3.75	3.75	3.75	3.75
Cat 1 TOTAL	1,225	1,400	1,575	1,750	0	2,100	2,275	2,250	2,063	2,250	2,063	2,250	21,200
Peach units sold	450	500	550	550	600	650	650	600	650	700	650	700	7250
Sale price @ unit	3.60	3.60	3.60	3.60	3.60	3.60	3.60	3.80	3.80	3.80	3.80	3.80
Cat 2 TOTAL	1,620	1,800	1,980	1,980	2,160	2,340	2,340	2,280	2,470	2,660	2,470	2,660	26,760
Nutela units sold	450	500	550	550	600	650	650	600	650	700	650	700	7250
Sale price @ unit	4.00	4.00	4.00	4.00	4.00	4.00	4.00	4.20	4.20	4.20	4.20	4.20
Cat 3 TOTAL	1,800	2,000	2,200	2,200	2,400	2,600	2,600	2,520	2,730	2,940	2,730	2,940	29,660
Rafaelo units sold	450	500	550	550	600	650	650	600	650	700	650	700	7250
Sale price @ unit	4.00	4.00	4.00	4.00	4.00	4.00	4.00	4.20	4.20	4.20	4.20	4.20
Cat 4 TOTAL	1,800	2,000	2,200	2,200	2,400	2,600	2,600	2,520	2,730	2,940	2,730	2,940	29,660
Raspberry units sold	450	500	550	550	600	650	650	600	650	700	650	700	7250
Sale price @ unit	4.00	4.00	4.00	4.00	4.00	4.00	4.00	4.20	4.20	4.20	4.20	4.20
Cat 5 TOTAL	1,800	2,000	2,200	2,200	2,400	2,600	2,600	2,520	2,730	2,940	2,730	2,940	29,660
Prosciutto units sold	400	450	500	550	600	650	700	700	750	700	750	700	7450
Sale price @ unit	3.80	3.80	3.80	3.80	3.80	3.80	3.90	3.90	3.90	3.90	3.90	3.90
Cat 6 TOTAL	1,520	1,710	1,900	2,090	2,280	2,470	2,730	2,730	2,925	2,730	2,925	2,730	28,740
Spinach units sold	200	300	400	450	500	550	600	600	650	700	650	700	6300
Sale price @ unit	3.40	3.40	3.40	3.40	3.40	3.40	3.55	3.55	3.55	3.55	3.55	3.55
Cat 7 TOTAL	680	1,020	1,360	1,530	1,700	1,870	2,130	2,130	2,308	2,485	2,308	2,485	22,005
Monthly Sales	2,750.00	3,150.00	3,550.00	3,700.00	4,000.00	4,400.00	4,550.00	4,300.00	4,550.00	4,800.00	4,550.00	4,800.00	49,100.00
Monthly totals: All Categories	10,445	11,930	13,415	13,950	13,340	16,580	17,275	16,950	17,955	18,945	17,955	18,945	187685