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SALAMA BREAD PARLOUR
P.O BOX
BUSINESS LOGO & SLOGAN
PRESENTED BY:
INDEX NO:
PRESENTED TO :
YEAR OF PRESENTATION: JUNE / JULY 2012.
BROWN BREAD
MILK BREAD
SLICED BREAD
SPICE FRUIT BREAD
TABLE OF CONTENT IN ROMANS
CONTENT page.
COVER PAGE…………………………………………………………………………….. (i)
TABLE OF CONTENT…………………………………………………………………….. (ii)
TABLE OF CONTENT II…………………………………………………………………... (iii)
DEDICATION……………………………………………………………………………… (iv)
DECLARATION…………………………………………………………………………… (v)
ACKNOWLEDGEMENT…………………………………………………………………... (vi)
EXECUTIVE SUMMARY………………………………………………………………….. (vii)
CHAPTER ONE
1.0 BUSINESS DESCRIPTION ………………………………………………………………1
1.1 BUSINESS NAME………………………………………………………………………...2
1.2 BUSINESS LOCATION ……………………………………………………………...3
1.3 FORM OF OWNERSHIP …………………………………………………………………4
1.4. TYPE OF BUSINESS …………………………………………………………………........4
1.5 PRODUCTS & SERVICE ……………………………………………………………........5
1.6 JUSTIFICATION OF OPPORTUNITY……………………………………………………6
1.7 INDUSTRY ………………………………………………………………………………....6
1.8 BUSINESS GOALS AND OBJECTIVES;………………………………………………..7
1.9 ENTERY AND GROWTH STRATEGIES;…………………………………………………7
CHAPTER TWO
2.0 MARKETING PLAN………………………………………………………………………9
2.1 INTRODUCTION………………………………………………………………………….9
2.2 CUSTOMERS……………………………………………………………………………....9
2.3 MARKET SHARE………………………………………………………………………...10
2.4 COMPETITION…………………………………………………………………………...11
2.5 METHODS OF PROMOTION AND ADVERTISEMENTS TO ATTRACT AND
MAINTAIN CUSTOMERS……………………………………………………………………..12
2.6 PRICING POLICY………………………………………………………………………...14
2.7 SALES TACTICS…………………………………………………………………………14
2.8 DISTRIBUTION POLICY………………………………………………………………..15
CHAPTER THREE:
3.0 ORGANISATION AND MANAGEMENT PLAN……………………………………..16
3.1 BUSINESS MANAGERS………………………………………………………………...16
3.2 OTHER PERSONEL……………………………………………………………………...16
(ii)
3.3 RECRUITMENT, TRAINING AND PROMOTIONS…………………………………..17
3.4 INCENTIVES……………………………………………………………………………...17
3.5 LEGAL REQUIREMENTS……………………………………………………………….17
3.6 EXTERNAL SUPPORT…………………………………………………………………...18
3.7 GENERAL ORGANISATION…………………………………………………………...19
CHAPTER FOUR
4.0 OPERATION AND PRODUCTION PLAN…………………………………………...20
4.1 PRODUCTION FACILITIES AND CAPACITIES……………………………………20
4.2 PRODUCTION STRATEGY…………………………………………………………….22
4.3 PRODUCTION PROCESS……………………………………………………………….26
4.4 PLAN LAYOUT…………………………………………………………………………..27
4.5 REGULATIONS AFFECTING PRODUCTION / OPERATION……………………….27
CHAPTER FIVE
5.0 FINANCIAL PLAN
5.1 BOOKS OF ACCOUNT
5.2 PRE- OPERATIONAL COST
5.3 E STIMATION OF WORKING CAPITAL
5.4 ESTIM ATION OF FIXED ASSEERT.
5.5 CASH FLOW PROJECTIONS
5.6 PRORFOMA INCOME STATEMENT
5.7 PROFORMA BALANCE SHEET
5.8 BREAK EVEN ANALYSIS
5.9 PROFITABILITY RATIOS.
5.10 DESIRED FINANCING
5.11 PROPOSED CAPITALIZATION
5.12 PROPOSED LOAN
5.13 LOAN PAYMENT SCHEDULE.
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(iii)

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DEDICATION
I dedicate this business plan to my parents , brothers and sisters without forgetting my dear
Morris for their moral support and encouragement lastly I highly encourage the effort of my
supervisor Mr. …………………………..energy to make sure that I have done his work
successfully.
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(iv)
DECLARATION
I declared that this is my original work and has not been presented in any institution of
learning or research for a ward of craft or any other award
NAME:
SIGNATURE:
DATE
SUPERVISOR’S NAME.
SIGNATURE
DATE
(v)
ACKNOWLEDGEMENT
With sincerity my gratitude goes to God for giving me the strength through the writing of
this book secondly to my parents for giving me n the finance and education may the
Almighty Bless Them: thirdly to all my friends for their piece of advice. I also extend my
gratitude to Mr……………. for assisting and guiding during the writing of this project.
Finally tribute to all my classmates in particular.
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(vi)
EXECUTIVE SUMMARY
CHAPTER ONE
This will enroll the business description; the name of the business, type of ownership will be sole
proprietorship and business goals.
CHAPTER TWO
this will include marketing plan of the business , the customers to be targeted and the
services to be offered , competition to encounter and the different way to overpower them,
pricing policies and soles tactics.
CHAPTER THREE
this will include organization and management plan i.e. the different personnel to be
involved in the management of the business for effective running of business
CHAPTER FOUR
This will where the operation plan is included i.e. production strategies to be used in effective
competition with other business ,the processes and plan layout of the business how it will be
i.e. Sketch the business.
CHAPTER FIVE
This is financing plan shows the cash inflow and outflow. Also shows the balance sheets, gross
margins and the break even analysis of the business
1.
1.0 BUSINESS NAME
The name of the business will be “SALAMA BREAD PARLOUR”. The name Salama is
associated with something peaceful and it is meant to attract customers. The owner has
researched thoroughly about the idea that the environment within the business location is the best
for the business.
BUSINESS LOGO:
BROWN BREAD
MILK BREAD
SLICED BREAD
SPICE FRUIT BREAD
2.
CHAPTER ONE
1.1.BUSINESS SLOGAN
“WELCOME ALL AND FEEL THE DIFFERENCE”
This means that all people are welcome and they feel difference from other bread parlours within
the location.
1.2.BUSINESS LOCATION AND ADDRESS:
The business will be located at Matiri Market in a building known as Zebra Plaza within the
market. The business is approximately 29km from Chuka Town.
Address of the business:
SALAMA BREAD PARLOUR
P.O. BOX 28,
CHUKA.
TELEPHONE: 0729 741 211
EMAIL: salamabre@yahoo.com
The owner has decided to locate the business at Matiri Market because the family lives there,
population is very high and have the knowledge of the place.
There is also availability of raw materials, infrastructure and also security. The economic
activity of the people in the area is pastoralist. The common language within the region is
Kimeru and staple food is maize, millet, green grams and peas.
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3.
MAP OF THE BUSINESS LOCATION
1.3. FORM OF OWNERSHIP
The business will be sole proprietorship because the owner will be the manager and will be the
coordinator of it. The reason for choosing this type of business is that the owner will enjoy the
profit alone because of being the manager. The management and maintenances is also easy. The
owner will become his/her own boss. There is also quick decision making.
1.4.TYPE OF BUSINESS
The type of business is manufacturing since it is involved in baking breads to make them ready
for human consumption. The scope of trading will be locally and regional based, whereby the
breads will be sold to the nearby villages and location. The diversification level of product, the
owner can start production of cakes ingredients.
4.
1.5. PRODUCTS AND SERVICES.
The business will be offering quality and quantity products.
The business will be baking different types of the breads .The products offered includes:
(a) Sliced bread
(b) Brown bread
(c) Milk bread
(d) Spice/fruit bread
(a) Sliced bread
This is prepared by use of sugar, blue band, wheat flour, eggs.
This is done by mixing sugar, blue band, wheat flour and eggs thoroughly stir until they mix
completely in one direction to avoid air entering inside.
Cover the dough for short period then uncover the bread and place it in a display ready for sale.
(b) Brown bread.
This is done by mixing sugar, flour, blue band, baking powder,
The procedure is the same as for sliced bread.
(c) Milk bread
They are produced by mixing one egg, wheat flour, milk and water.
(d) Sliced bread
Done by mixing sugar, flour, blue band and water.
The procedure is the same.
The customer will obtain benefits from products whereby the business will offer products at
cheap price to the customers. The business will also offer high quality breads so as to attract
customers. The product will also readily available and delivered to all customers around. Trading
secrets will be to cater for the well being of the customers available within the area.
The future plan of the business is to operate at the different regions around in order to
accomplish the target of starting other new branches throughout the country.
SERVICES
The business will offer services of transporting the cakes to the interior retailers in the area and
also customers who have large orders in their destinations. There will be low cost of
transportation since the breads will be transported to their destination. Creation of employment
will be available to the customers has the business expands.
Customers will be saved from expenses of buying the materials for preparing breads therefore
the business will offer them with all of breads.
5.
1.6.JUSTIFICATION OF OPPORTUNITIES
The decision of starting this business is because the owner grew here and realized the market in
the area is doing well. It is contributed by market. Where the research shows bread production is
not offered in a wide range whereas people are in need of them.
Competition is stiff but the owner aims at producing quality breads and at affordable prices. The
market demand also contributed because the customers are potential of the products in the area
since the population is well distributed and they are in need of breads.
VIABILITY OF OPPORTUNITY
Highly maximized opportunity will be considered in the business to satisfy the customers in
asking questions. This will enable the business to venture into the new market and thus expand
with time.
Raw materials of the product will be readily available because most of the Ingredients are natural
and are easily gotten from an outer market .Thus will need both skilled and unskilled labourers
who will be assisting in the business.
CONTRIBUTION OF BUSINESS TO THE LOCAL COMMUNITY.
The production of the products need the utilization of raw materials from different areas and this
will lead to well distribution .The ready and quality products will be available to the community
around. Employment opportunity will also be contributed because business will require labour
for the production and distribution of the services thus enabling people in the community to
venture in the business.
1.7.INDUSTRY.
The industry to be venture into the manufacturing of food industry.
The business is expensive to start because it will require some machines.
Characteristics of the industry
(i)It requires high capital to start because it will require some machine.
(ii) The level of technology is modern since the electronic machines have fully emerged to
replace manual ones.
(iii) Due to modern technology, it requires trained personals i.e. of capital is used to purchase
machines and material.
Size of the firm
The industry will be a medium firm and it shall accommodate average number of employees.
6.
Seasonal factors
Seasonal factors that the industry is going through are things like dynamic technology. It s also
growing through ordering of raw materials and the owner are giving services. Industry is also
experiencing factors like inadequate capital to raise the business to high standards.
1.8.BUSINESS GOALS AND OBJECTIVES
The overall goals will be to equip the business with the necessary apparatus like ovens and
within one year to a large market share which will be dominating for quality breads. The
business will have short and long terms goals.
Short term goals (between 1-2yrs)
(1) The owner will rent a room for operating the business equipped with all baking
equipment and apparatus
(2) Purchases one or move oven after four months.
(3) The owner will be distributing breads to Matiri market shops.
(4) In the 2nd year the owner hopes to have gained ¾ of the customers who will have great
preferences for the breads.
(5) Within the two years the owner will have double the workers salary in order to motivate
them to put in work.
Long term goals (3-5 years)
(1) In the third year the owner will add three more employees to help in distributing breads in
different regions.
(2) The owner will expand the market to various major ones like shops and big supermarkets.
(3) The owner will purchase a van in the 4th year to aid in the distribution of breads.
(4) The owner will rent a bigger room to accommodate expansion of activities due to more in
the market share.
The advertisement will be done through billboards posters to create awareness of the
business and there will be also promotion.
1.9.ENTRY AND GROWTH STRATEGIES:
(i) Entry strategies
The business start at pre –start upstage. The stage will invoice planning on how the business will
be, it’s set up and how activities will be implemented.
The owner will consider the competition available by making sure that the product are of
quality and affordable to beat the competitors and try to research on the competitors weakness so
as to come up with strategies to strengthen the business.
7.
The distribution channels to be used are bicycle, van and door to door selling.
The advertisement will be done through billboards posters to create awareness of the business.
(ii) Growth strategies
It will involve the activities the owner will do to ensure success of the business. It includes.
(i) Advertising the business and promotion. This will be through posters and radio
to create preference of breads.
(ii) Increasing coverage by expanding distribution in neighboring towns and
markets.
(iii) Employing more employees and training them on how to deal with customers
and also help in marketing the business and breads during the third year