Bakery business plan: is it worth opening your own production + marketing and production business plans + detailed project financial plan + 2 main risk factors.
When the question arises: “what business is better to invest in.
Today we will consider such an investment area as your own bakery.
A ready-made business plan for a bakery will give you a visual understanding of what it is.
Why is a bakery a profitable business?
General consumer products are always in demand. As they say, bread is the head of everything.
Reasons to invest in the bakery business:
- The production part does not require highly qualified personnel.All knowledge is presented by employees within 2-4 days of practice.
- Quick installation and setup of equipment for the bakery.To establish the production process, 25-30 calendar days are enough.Installation companies will help you set up the equipment and train the staff even more.
- Constant demand for bakery products.The rise in prices for the maintenance of large enterprises makes large plants unprofitable.They are being replaced by small and medium-sized businesses that can fill the niche to the fullest ikomanocomkonoktecomanokok
- A small number of sales outlets to study and adjust the demand for products, and also easily allows you to change the range of the bakery depending on the indicators by quarter.
- Direct deliveries of raw materials without extra charges.
- Bread is a financially significant product.In the event of a shortage of raw materials or other problems, it will be possible to rely on assistance from the State Department.
- High rates of trade, due to the short terms of the sale of bread, will allow the fieldRetail sales give you a steady stream of cash.
- According to the legislation of the Russian Federation, for an LLC, the amount of cash in the cash desk of an enterprise should not be 2,000,000 rubles.Given the constant turnover and payment for raw materials, the bakery business provides for complete and exemption from unnecessary financial transactions for withdrawing cash from the current account.
Bakery business plan in detail
Average profit per year: 180,000
Profitability level of the bakery business plan: 620%
Payback period: 5-6 months.
Where to begin? From the analysis of points of sale and functions of food products, which will have the maximum demand.
Development tactics in terms of a bakery should pursue the following goals:
- Improving production through the sale of additional equipment and personnel.
- Affordable prices without significant damage to the bakery.
- Taking into account the wishes of ordinary consumers regarding the variety of bakery products.
- Increase in sales.
- Search for additional sources of investment for the bakery.
- Employee training and customer feedback.
- Advertising campaign.
- Development of the competitiveness of production by adjusting the price indicators and the quality of the products.
For your bakery business plan to be successful, all of the above conditions must be met.
Today, the price of the product has become an important important condition. The tactics of conquering the market must follow trends in order to increase profitability indicators.
1. Marketing tactics.
Any business starts with a location, then production will develop.
A marketing analysis of a bakery business plan should:
- Find out which products are in high demand among buyers.How much does quality affect a product?
- Determine the average sales volumes of different varieties of the product at your points of sale.
- Consider the sales volumes of competitors that are in your area.
- Determine the criteria for ordering products.
- Find out the strengths of your competitors.
- Worsening demand for bakery products throughout the quarter.
Information about buyers will make it possible to occupy your segment of the product sales market, and data on other firms will make it possible to adjust the product to the most competitive indicators.
General knowledge of the market to improve the position of the bakery in supply and supply
What methods to apply:
- Identification of the pain points of the business and the strengths of the bakery.
- Market segmentation.
- Positioning of manufacturers and product lines.
- Methods of statistical calculations.
Research should be limited to the territorial factor. The analysis of nearby areas of the product sales market is considered optimal.
In the course of the analysis, it is necessary to find out which aspects buyers give more importance to.
The data graph should contain (%):
- taste qualities;
- external indicators of the product;
- the benefits of the product;
- availability of packaging.
The information will highlight the main areas that should be given special attention for kikimanikikiml
It is also necessary to take into account the place where customers prefer to buy bakery products. Fulfillment of contracts with points of sale.
Practice has shown that the priorities are such areas as advertising and pricing policy.
It will positively affect the business and expand the range of bakery products.
2. Production calculations for the business plan of the bakery.
Work planning cannot be imagined without a production component.
Although the methods of making bakery products are not a secret, there is a very detailed one
The quality of raw materials will affect both the product itself and its demand.
The main stages of the technological process of the bakery:
- Sift the main component – premium flour.
- Throw all the ingredients into the dough kneading machine.
- Keep the mixture.
- Cut into portions.
- Add special components to improve product quality and send to the seaming machine.
- Build a product.
- Give the test a break.
- Bake items.
- Distribute into trays.
Depending on the type of baked goods that the bakery produces, the production plan may vary slightly. All components must be of the best quality.
a) Accounting for bakery equipment in a business plan
* The table above shows the average cost of equipment by country.
The information in the table is presented in foreign currency for convenience. Inflation rate is changing as dollar prices will give more accurate data constantly over the premise
Installation and configuration are usually free. Some supplier companies provide training courses where your employees will learn how to manage. The cost of classes, as a rule, is symbolic.
b) Bakery space
The data in the table shows the average size with a margin of 10 – 20 cm2. The preferred width and length of the workshop is 7 m × 10 m. The height is within 3-4 m.
In addition to the production line, you are faced with the problem of storing raw materials and finished products. Dough components must also be kept separate from flour.
Total + 3 rooms.
Additional storage areas of the bakery:
- Flour store.A small bakery business plan should include a stock of materials for at least 7 days.For the consumption of these needs, a room with a total area of more than 22 m2 and a height of 3.5 m is required.
- Storage of bakery products in a bakery..Minimum 10 m2.
- Storage of the elements of the mixture (spices, cereals, dry yeast, and so on).An area of 7 – 8 m2 will fully accommodate a week’s supply of materials for production.
In addition to size, attention should also be paid to the requirements of the SES. Without their approval, further business development may stall for 1-2 months.
SES requirements for the production areas of the bakery:
- it is forbidden to equip a bakery in basements or places with high dampness.
- The floor must have a layer that does not allow water to pass through.
- The walls are clad in ceramics or painted.
- Availability of hot / cold water + sewerage.
- Utility rooms for employees and raw materials.
- Correct ventilation.
c) Documents for the production part of the bakery
You will be pointed out the shortcomings and given 1 month to correct.
Terms are floating, it all depends on the number of problematic issues that arose during the verification process.
What documents are needed:
- An act authorizing the conduct of activities from the SES;
- Fire inspection permit;
- Admission to activities from the environmental commission.
Terms of receipt – from 2 weeks to 2 months.
If all checks have been passed successfully, the bakery plan can be maximized from business to business.
3. Financial plan for the bakery.
An essential component of your business plan.
Where the costs will go, how to bring production to a high level of profit, where to find raw materials at the lowest price – all these calculations should make your bakery a highly profitable business.
a) Organizational costs
It is better to focus on improving the performance of the equipment, which can lead to additional benefits.
Optimal bakery production plan:
- Work in 3 shifts with a rotating schedule for employees.
- Shift 1 is an 8-hour work day.
- In 1 working day allows 2 shifts according to the plan.
- The floating schedule allows you to use the equipment 30 calendar days per month.
- Baking average – 6,000
- The mass of 1 unit of production (bread) is 400 grams.
Thus, the annual plan for the manufacture of goods will exceed 120 tons.
The calculations do not take into account the production of other bakery products, such as buns, rolls and more.
b) Major items of expenditure
Owning a bakery is a costly business. Payment for the work of employees, the purchase of equipment, certificates for trade – not all of them are
The complete set was discussed above and, in terms of its cost of equipment, reached 72,000 standard units.
If we take into account additional elements, such as knives and special clothes, the final sum is 73 – 000 summed $.
In addition to technical equipment, 3 more documents will be required:
- Quality certificate.
- Hygienic certificate for the goods.
- Permission of production activity for business.
– Product analysis will not take more than 3 calendar days.
The price for this package of documents is about $80. Please note that you will need to update the permit at least once a quarter.
Another cost item in a bakery business plan is raw materials.
The cost of flour, yeast, seasonings and other baking ingredients should be calculated on the basis of
More details can be seen in the table below:
|RAW COST CALCULATION|
|TOTAL cost of raw materials per 1 ton of finished products||$287.8|
|Type of raw material||Consumption of raw materials per 1 ton of products, kg||Cost of 1 kg of raw materials, USD||The cost of raw materials per 1 ton of products, rub|
|Pressed yeast||31 year||0.8||24.8|
The average cost of raw materials per 1 ton reaches 220 – 270 $. The indicators are better with a margin of 2 – 3.
The remuneration of the employees of the enterprise depends on the quality of work and the calculations included in the bilapnes.
To ensure the production process of the bakery in 2 shifts and on a 30-day schedule 27
The amount of salary should not be lower than the subsistence level established by the state.
Fig.1 – Monthly labor costs.
Overnight deductions include taxation. The bakery will have to deduct 38% to the Pension Fund and to pay the single social tax.
This will be: 0.38 * 3620 = $1375.6 per month
Equipment that works around the clock, sooner or later will become faulty. Amortization of the fund takes into account factors and allows you to prepare the ground in advance for the solution of the problem.
Calculated as 9% for 1 year of the total cost of purchased equipment.
This would be: 0.75% * $72,000 = $540
The tax is provided for by the legislation of the Russian Federation for all enterprises of pre-industrial enterprises.
Currently, this fee is 2.1% per year of the cost of equipment.
This will be: (2.1% / 12) * 72,000/100% = $126 for 1 month
The certificate of quality that you received at the beginning of work should be updated quarterly. This expense item should also be taken into account in the financial part of the bakery business plan.
This will be: 180/3 = $60 each month
In addition to the agreed expenses, one should take into account transport and other small expenses for the maintenance of the bakery, which must be allocated in advance in the financial plan of the enterprise.
Below you can see a list of all monthly expenses:
Putting everything together, we get a tidy sum of $ 36,000. This is how much you will have to pay per month for the maintenance of the bakery.
If the level of sales falls, business income will decrease.
c) Calculation of sales revenue and total profit
To calculate the volume of bread in the country – $ 0.22.
Working according to the standard schedule, the bakery has more than 5,500 units monthly (vamnebekebekebeke).
Revenue will be: 5,500 * 2 * 30 * $0.22 = 66,000
Given the diversity of the range of goods, production costs will increase, but so will income.
To calculate net fat, you will need to carry out calculations for 4 articles:
- Gross profit of the bakery.The indicator is the difference between revenue and cost of goods.
- All organizations are required to pay 1% of the fund for the wages of your business to the country’s treasury.
- Taxable income that is reduced by deducting fees from the bakery’s gross profit.
- General tax on income in the amount of 25% of the amount of funds received.
As a result, residual profit will be obtained, which will help improve the quality of equipment and technological processes, especially at its start.
Many private bakeries prefer to transfer residual funds to bank accounts in badnke vodnke 2 All possible capital growth options are needed.
d) Efficiency Study
How quickly the business will pay off is the main question of every entrepreneur before starting the implementation of the program. The calculations carried out earlier were for calculating this particular indicator.
In addition to the main indicator of business growth, there are 4 secondary ones. They should be taken into account in the bakery plan for adjusting and correcting problematic lines.
Additional profitability categories:
- Product profitability.Indicates the ratio of net financial return to one currency unit.Thus, the financial plan of the bakery plan will show information on the qualityFormula: Profitability \u003d Net profit / Cost of goodsIn our case: 17,000/36,168.67 = 0.47
- Capital productivity.expressed in relation to the quantity to the price per 1 currency unit of the product.The value gives an idea of the amount of profit from each ruble spent in your business plan.Formula: Return on assets \u003d Revenue from the sale of goods / Total price of fundsIn our case: 66,000 / (72,000 + 100) = 0.915For each dollar invested, we will receive $0.915 of profit.
- Capital intensity.Inverse rate of return on assets.Indicates how much funds from funds must be invested to receive 1 currency unit.Formula: Capital intensity \u003d Total price of funds / Revenue from the sale of goodsIn our case: (72,000 + 100) / 66,000 = 1.09
- Spending for 1 currency unit of the product.Display in the business plan of the bakery the amount of money spent to receive $ 1 per product.Formula: Cost per unit = Cost of goods / Revenue from the sale of goodsIn our case: 36168.67 / 66,000 = 0.548
Additional components of financial support help you evaluate the correctness of decisions and suggest potential options for the development of the business as a whole.
To see a visual result, use an iterative formula that displays the difference in funds spent and received over 30 calendar days.
|PAYBACK BUSINESS PLAN BAKERY|
|Interest charged by the banking system for taking out a loan||0.02|
|Months of operation of the enterprise||Net income USD||Expenses||Business income, USD|
|0||0||72 100||-72 100|
|one||17000||73 442||-56 442|
|2||34 000||74 911||-40 911|
|3||51000||76 409||-25 409|
|four||68 000||77 937||-9 937|
|5||85000||79 496||5 504|
|6||102 000||81 086||20 914|
According to the table above, we will be able to evaluate the profitability and payback of the bakery plan.
If you did not take money on credit, but invested yourself to get rid of extra credits and costcostekimanikimanocostcostekim
Fig 2. – Payback business plan for a bakery.
According to the schedule, the first predominance of profit over costs occurs at the end of the 5th month. This means that our bakery will get back the money invested in a short time.
Can use an alternative rental bakery.
You will reduce costs by 2–3 times due to the availability of equipment and ready-made premises, respectively.
4. We take into account the environmental component and risk factors in the business plan of the bakery.
The use of environmental services is part of the organization of the bakery.
In the commission report, you should indicate the main advantages of your business compared to large analogues – this will simplify the process of obtaining a certificate and your time.
What information is created on Earth:
- Electricity consumption for stable operation of equipment and lighting of production areas.
- The use of fuel for the transportation of finished goods to points of sale.
- Utilization of secondary raw materials and other industrial waste.
? Rational creation allows to reduce the emission of harmful substances into the atmosphere by 50-70% allows
There are always risk factors to consider.
The bakery business should contain a separate financial section, which will provide for the allocation of 2-3% of monthly profits to secure problems in the future.
Risk Factors of a Bakery Business Plan:
- Rising prices for raw materials..
- High competition.No one can forbid building another bakery 50 meters away from you. The struggle for points of sale will begin..
The expansion of the bakery and the opening of new outlets will strengthen the position in the market and make vaness
Not always the concept of “bakery” is limited to the production of bread.
An excellent example is the Bulki institution:
Whatever area of investment you choose, having a business plan is the most important component.
Planning items and expenses will prevent unpleasant surprises.
We hope that the bakery business plan reviewed will help you in opening a personal business that will bring a stable income for many years.