Www bplans com bakery business plan

Business Venture Preparation

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Business Venture Preparation

University of Phoenix Material

Part One: Business Venture Preparation

The business our team chose is:

Bakery

Our justification for choosing this business is:

A bakery is a viable business opportunity. There is a strong urge for fresh, baked food in the community. Few bakeries however, exist to satisfy the need. The team therefore, decided to introduce a bakery to fill the gap. In addition, the team has a wealth of experience in baking. The experience will be an added advantage in offering quality products to the consumers.

· List each team member’s name and the role that they will be playing on the Business Start-up Team.

· Team member roles should accurately define the expertise each member contributes to the development of the business venture. Team members can possess more than one expertise.

Team Member

Team Member

Team Member

Team Member

Team Member

Team Member

Team Member

Role

Research

Results

Target

Market

Industry

Research

350 word summay

Competitor Data

Summary of Discussion

Role

Reflect and

Observe

Reflect and Observe

Reflect and Observe

Reflect and Observe

Reflect and

Observe

Reflect and Observe

Role

Disscusion of full-time commit-ment or part-time involve-ment

Disscusion of full-time commit-ment or part-time involve-ment

Disscusion of full-time commit-ment or part-time involve-ment

Disscusion of full-time commit-ment or part-time involve-ment

Disscusion of full-time commit-ment or part-time involve-ment

Disscusion of full-time commit-ment or part-time involve-ment

Role

Disscussion of buy in from family members for entering into business venture

Disscussion of buy in from family members for entering into business venture

Disscussion of buy in from family members for entering into business venture

Disscussion of buy in from family members for entering into business venture

Disscussion of buy in from family members for entering into business venture

Disscussion of buy in from family members for entering into business venture

Respond to the following questions regarding team member commitment to the business venture:

1) Discuss and document if the business venture will be a full-time commitment or will start-up team members commit to part-time involvement.

The team will commit to run the business on a full-time basis. A full-time business gets adequate attention. Additionally, the business gets off the ground rapidly. The investors are also ready to co-operate with a full-time business (Meszaros, 2018). Additionally, the team also have the funds to operate full-time. Furthermore, it is not possible to run a bakery on a part-time basis because baked food are perishable. Therefore, the bakery shop must be open most of the time to make a sale. According to Entrepreneur (2018), operating full-time is the best option if the need for a product or service has not been met, if the competition is not stiff, and if there is ready customers supply who are eager for the product or service (para. 5). The bakery business fulfills the highlighted conditions. It is recommended that money should be set aside for more than six months before a full-time business is launched.

2) Discuss and document how the team members will get buy-in from family members to enter into this business venture.

Family members are the greatest supporters of business ideas. The close relationship between the entrepreneur and family members including the belief that the family members have toward the entrepreneur is an indication that the family members will definitely support the entrepreneur (Gibbons, Hisrich & DaSilva, 2015). The team members should however, have a suitable business plan to convince family members to support the business. Communicate clearly about the business idea; who will run the business; the knowledge, skills, abilities, and experience of the team members in relation to the business; the anticipated profit; when the business will break-even; among other business plan elements (Mariotti & Glackin, 2015). In addition, team members should explain that the funds will be refunded as soon as the business makes profit. Some family members may require a share of the business and may help in getting the buy-in to start the business. The team should however, be cautious when selecting the family members to filter out the ones who would require a large share of the business.

Part Two: Market Research

Complete the following template based on the team’s marketing research results for your business venture:

Marketing Element

Research Results

Consumer Need for

Product or Service

The strong urge for fresh, baked food in the community, consumers need baked food to either take as snacks, breakfast, or whenever they have a drink.

Target Market

Economy of Chosen

Location/City/Region

The location we have chosen is Nashville, TN. Nashville is a community that is growing at a rapid rate and is based on a solid foundation—economic diversity. “Nashville is a leader in finance, insurance, health care, music and entertainment, publishing, transportation technology, higher education, biotechnology, plastics, tourism and conventions.” (City-Data, 2018).

Consumer Demographics

With wide economic diversity in Nashville comes a large pool of consumers. Our targeted consumers will not be limited. Families of all kinds will be welcome. There will be weekday specials targeting stay-at-home parents with children, and blue/white collar workers for breakfast and lunches.

Industry Research

Barrier to Entry

Not having sufficient distribution channels and lack of brand recognition

Current Market Saturation

Medium saturation, with 4,859 businesses in the industry (IBIS World, 2017)

Suppliers

Pastry Chef Central Inc. and WebstaurantStore Food Service Equipment and Supply Company

Legal Business

Structure

to be used and

justification

for selection

A Limited Liability Company (LLC) – with six individuals, this seemed the best option and therefore no one person is responsible for all affairs and assets of each are exempt from liability.

Government

Regulations to be

Considered-Local,

State, and Federal

Food safety laws, licenses and permits, inspections, sales tax collection (if necessary)

Types of Insurance to

Consider

Bakery insurance includes– liability (general and product), property (building and contents), equipment breakdown, food spoilage, loss of income. Also commercial vehicle; workers compensation; unemployment; disability; and medical insurance are needed.

Competitor Data

Pricing Model

Tiered or volume pricing (HomeStyle Bakery, 2017)

Business Model

Bakery model/Manufacturing

Business Model Key

Customers

A large regular customer base; therefore, concentration of business is on marketing to local residents, which will be the dominant target market (Bplans, 2018)

Suppliers

Local wholefood markets, Honeyville, Brisen (HomeStyle Bakery, 2017)

Business Size (Annual

Revenue $ )

Small business, with annual revenue of $491,000 (Cameron, 2017)

Business Location

2709 Murfreesboro Pike, Nashville, Tennessee 37013

Part 3: Reflection and Observations

Answer the following questions:

Our marketing template was comprised of the opinions and oppositions within the team. We decided to base our business on Murfreesboro Pike, in Nashville Tn., with Nashville becoming a major consumer location; thus, the reasoning behind the location choice. Our demographics are pretty much everyone in the immediate area as a whole, with the current market in the area, we face medium saturation.

The idea of working as an LLC, we as a group, thought this was the best way to conduct our business. With several of us investing in the business, this gives all of us a chance to brainstorm ideas to grow the business rather than every person working as day to day operations managers of the business. All food and safety laws will be enforced to pass inspection. We will be purchasing bakery insurance to ensure we have no lawsuits or mishaps within the business.

1) What roadblocks did the team face when obtaining required information?

Explaining the reason for conducting the research. Determining what information would be helpful to use for other team members to complete their sections so that everything will bridge together smoothly with a nice flow.

2) What lessons were learned during the week’s Learning Team assignment, which can be applied during the specific phase of business start-up?

The importance of team work. Also, that tasks are completed quickly when the work involves a team because each member is delegated a section to complete which are later compiled. Team work also improves understanding as one is able to approach a member to elaborate on any vague area. In conclusion, each member has unique skills and abilities which, in turn, enhances creativity and decision making which are also essential for a business start-up. For example, one member may manage the finance section while the other handles marketing section depending on the skills and abilities.

3) What is the team’s overall observations of this week’s assignment relative to the type of information needed to develop a comprehensive business plan?

A business plan has several sections. Although the business plan can be written individually, it is likely that the person will be not be able to explain all the sections in detail. Developing the plan as a team ensured that rich, detailed, and diverse information was gathered. Overall, each one benefitted by getting a snapshot of the information required to develop a business plan that is comprehensive through team work.

4) How does this week’s Learning Team assignment support the Learning Objectives?

The team assignment supports the objectives of defining a business plan, its purposes, who the readers of a business plan are, the business plan parts, and how to develop and format it.

Summary of the Business Venture Preparation Template

The team committed to running a bakery full-time. The research conducted and analyzed allowed the team to reach this decision. The data shows that there is a need for freshly baked goods in the local community and specifically within the city and surrounding areas. The demand for freshly baked goods and related products has not been met; therefore, this added to the decision to commit to running the bakery full-time (Meszaros, 2018). The target market is in an area that is a leader in economic diversity, and the community is rapidly growing (City-Data, 2018). Furthermore, due to the multiplicity of the community in which the bakery will be established, there is an unlimited amount of potential consumers for marketing purposes. The bakery will be in Nashville, Tennessee and located in a central urban location and the team opted to have family members buy-in to secure the initial capital to begin the business. The team created a business plan that convinced the selected family members to provide the required funds needed to assist in starting the company. The company is set up as a Limited Liability Company, but the investors (i.e., family members) will not be offered a share in the business. Instead, the incentive for investors is a return on their investment. If a share in the company is requested then it will be reviewed and presented to the founding members of the bakery and decided on at that time. However, the need for funds will impact the decision of whether or not to move forward with the request.

To conclude, the main barrier that the business faces is not having enough distribution channels and initial lack of brand recognition, with the market saturated at a medium level for this industry (IBIS World, 2017). Furthermore, federal, state, and local laws and their organizations will be considered in regulating the business. Also, the business competitor for the bakery has a large consumer base with annual revenue of $491,000.

References

Bplans. (2018). Bakery business plan. Retrieved from https://www.bplans.com/bakery_business_plan/executive_summary_fc.php

Cameron, A. (2017). What is considered a small business?. Retrieved from https://smallbusiness.patriotsoftware.com/what-is-considered-small-business-classification-size/

City-Data. (2018). Nashville: Economy. Retrieved from http://www.city-data.com/us-cities/The-South/Nashville-Economy.html

Entrepreneur. (2018). Starting a part time vs. full time business. Retrieved from https://www.entrepreneur.com/article/217742

Gibbons, G., Hisrich, R., & DaSilva, C. (2015). Entrepreneurial finance: A global perspective. Los Angeles, California: Sage.

HomeStyle Bakery. (2017). HomeStyle Bakery. Retrieved from http://www.homestylebakery.com/

IBIS World. (2017). Bakery cafes - US market research Report. Retrieved from https://www.ibisworld.com/industry-trends/specialized-market-research-reports/consumer-goods-services/food-service-drinking-places/bakery-cafes.html

Mariotti, S., & Glackin, C. (2015). Entrepreneurship & small business management University of phoenix, eBook collection.

Meszaros, G. (2018). Should you start a business full time or part time. Retrieved from https://www.successharbor.com/start-a-business-full-time-or- part-time-02252015/part-tim