Bakery Business Plan Jollys Java And Bakery

Bakery billet Plan Jollys chocolate And BakeryJollys Java and Bakery (JJB) is a start-up umber tree and bakery retail founderment set(p) in southwest chapiter. JJB expects to catch the interest of a regular loyal customer suitcase with its broad variety of deep brown and pastry products. The caller-up ends to trope a strong market position in the town, ascribable to the partners assiduity experience and mild competitive modality in the ara.JJB aims to whirl its products at a competitive bell to meet the demand of the middle-to higher-income local anaesthetic market area residents and tourists.The CompanyJJB is incorporated in the state of Washington. It is as owned and managed by its two partners.Mr. Austin Patterson has ex decenniumsive experience in gross sales, merchandising, and management, and was vice president of marketing with both Jansonne Jansonne and Burper Foods. Mr. David Fields brings experience in the area of finance and administration, includin g a stint as chief pecuniary officer with both Flaxfield Roasters and the guinea pig chocolate store chain, BuzzCups.The company intends to lead two full-time pastry bakers and six part-time baristas to handle customer assistant and day to day exploits.professional personducts and ServicesJJB offers a broad consort of coffee and espresso products, all from high note Columbian grown trade coffee beans. JJB caters to all of its customers by providing apiece customer coffee and espresso products do to suit the customer, down to the smallest detail.The bakery provides undecomposedly nimble bakery and pastry products at all times during phone force operations. Six to cardinal oblige batches of bakery and pastry products are prepared during the day to assure orthogonal baked goods are always operable.The martThe retail coffee industry in the U.S. has recently go through rapid growth. The cool marine climate in southwest Washington stimulates consumption of zesty beve rages throughout the year.JJB wants to settle a large regular customer base, and will therefore deoxidise its business and marketing on local residents, which will be the prevalent target market. This will establish a healthy, consistent revenue base to ensure stability of the business. In appurtenance, tourist traffic is evaluate to name approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market. pecuniary ConsiderationsJJB expects to raise $110,000 of its own chapiter, and to sweep up $100,000 guaranteed by the SBA as a ten-year loan. This provides the bulk of the current financing required.JJB anticipates sales of about $491,000 in the first year, $567,000 in the second year, and $655,000 in the ternary year of the plan. JJB should break even by the one-fourth month of its operation as it s tea leafdily increases its sales. shekelss for this time period are expected to be approximately $13, 000 in year 1, $36,000 by year 2, and $46,000 by year 3. The company does not anticipate any cash be given problems.Company analysisJJB is a bakery and coffee shop managed by two partners. These partners represent sales/management and finance/administration areas, respectively. The partners will provide funding from their own savings, which will cover start-up expenses and provide a financial cushion for the first months of operation. A ten-year Small Business boldness (SBA) loan will cover the rest of the required financing. The company plans to build a strong market position in the town, due to the partners industry experience and mild competitive climate in the area.2.1 Company possessionJJB is incorporated in the state of Washington. It is equally owned by its two partners.2.2 Company HistoryJJB is a start-up company. Financing will come from the partners capital and a ten-year SBA loan. The following chart and table illustrate the companys projected initial start-up costs.P roductsJJB offers a broad range of coffee and espresso products, all from high quality Columbian grown imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail.The bakery provides fresh prepared bakery and pastry products at all times during business operations. Six to eight moderate batches of bakery and pastry products are prepared during the day to assure fresh baked goods are always available. merchandise Analysis SummaryJJBs focus is on meeting the demand of a regular local resident customer base, as well as a significant level of tourist traffic from nearby highways.4.1 Market SegmentationJJB focuses on the middle- and upper-income markets. These market segments consume the majority of coffee and espresso products. local ResidentsJJB wants to establish a large regular customer base. This will establish a healthy, consistent revenue base to ensure stability of the bu siness. tourersTourist traffic comprises approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.4.1.1 Market AnalysisThe chart and table below outline the total market potential of the in a higher place described customer segments. 4.2 Target Market Segment StrategyThe governing target market for JJB is a regular stream of local residents. personalised and expedient customer service at a competitive price is key to maintaining the local market share of this target market.4.2.1 Market necessarilyBecause Washington has a cool climate for eight months out of the year, hot coffee products are very much in demand. During the remaining smoke four months of the year, iced coffee products are in significantly high demand, on with a slower but consistent demand for hot coffee products. Much of the days activity occurs in the morning hours before ten a.m., with a relatively steady proceed for the remai nder of the day.4.3 Service Business AnalysisThe retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine climate in southwest Washington stimulates consumption of hot beverages throughout the year. Coffee drinkers in the Pacific northwestern are finicky about the quality of beverages offered at the numerous coffee bars across the region. Despite low competition in the nimble area, JJB will position itself as a place where customers can racket a cup of delicious coffee with a fresh pastry in a relaxing environment.4.3.1 Competition and Buying PatternsCompetition in the local area is somewhat sparse and does not provide nearly the level of product quality and customer service as JJB. local anesthetic customers are looking for a high quality product in a relaxing atmosphere. They desire a unique, classy experience.Leading competitors obtain and roast high quality, whole-bean coffees and, along with Italian-style espresso beverages, cold-blended be verages, a variety of pastries and confections, coffee-related accessories and equipment, and a line of premium teas, share these items primarily through company-operated retail stores. In addition to sales through company-operated retail stores, leading competitors sell coffee and tea products through other channels of distribution (specialty operations).Larger chains go their product mix depending upon the size of each store and its location. Larger stores take over a broad selection of whole bean coffees in dissimilar sizes and types of packaging, as well as an assortment of coffee- and espresso-making equipment and accessories such as coffee grinders, coffee makers, espresso machines, coffee filters, storage containers, travel tumblers and mugs. Smaller stores and kiosks typically sell a full line of coffee beverages, a more special(a) selection of whole-bean coffees, and a few accessories such as travel tumblers and logo mugs. During fiscal year 2000, industry retail sale s mix by product type was approximately 73% beverages, 14% food items, eight percent whole-bean coffees, and five percent coffee-making equipment and accessories.Technologically savvy competitors make fresh coffee and coffee-related products conveniently available via mail revision and online. Additionally, mail order catalogs offering coffees, certain food items, and select coffee-making equipment and accessories, have been made available by a few larger competitors. Websites offering online stores that allow customers to cultivate for and purchase coffee, gifts, and other items via the Internet have become more banal as well.Strategy and Implementation SummaryJJB will succeed by offering consumers high quality coffee, espresso, and bakery products with personal service at a competitive price.5.1 Competitive EdgeJJBs competitive edge is the relatively low level of competition in the local area in this particular niche.5.2 gross sales StrategyAs the chart and table show, JJB ant icipates sales of about $491,000 in the first year, $567,000 in the second year, and $655,000 in the ternion year of the plan.gross revenue Forecast200120022003 unit of measurement SalesEspresso Drinks135,000148,500163,350pastry Items86,00094,600104,060 new(prenominal)000 come in Unit Sales221,000243,100267,410Unit Prices200120022003Espresso Drinks$3.00$3.15$3.31Pastry Items$1.00$1.05$1.10 another(prenominal)$0.00$0.00$0.00SalesEspresso Drinks$405,000$467,775$540,280Pastry Items$86,000$99,330$114,726Other$0$0$0 add together Sales$491,000$567,105$655,006Direct Unit Costs200120022003Espresso Drinks$0.25$0.26$0.28Pastry Items$0.50$0.53$0.55Other$0.00$0.00$0.00Direct Cost of SalesEspresso Drinks$33,750$38,981$45,023Pastry Items$43,000$49,665$57,363Other$0$0$0Subtotal Direct Cost of Sales$76,750$88,646$102,386Management SummaryAustin Patterson has extensive experience in sales, marketing, and management, and was vice president of marketing with both Jansonne Jansonne and Burper Foods. David Fields brings experience in the area of finance and administration, including a stint as chief financial officer with both Flaxfield Roasters and the national coffee store chain, BuzzCups.6.1 forcefulness PlanAs the personnel plan shows, JJB expects to make significant investments in sales, sales support, and product development personnel.Personnel Plan200120022003Managers$100,000$105,000$110,250Pastry Bakers$40,800$42,840$44,982Baristas$120,000$126,000$132,300Other$0$0$0 intact People101010Total paysheet$260,800$273,840$287,532Financial PlanJJB expects to raise $110,000 of its own capital, and to borrow $100,000 guaranteed by the SBA as a ten-year loan. This provides the bulk of the current financing required.7.1 Break-even AnalysisJJBs Break-even Analysis is based on the average of the first-year figures for total sales by units, and by operational expenses. These are presented as per-unit revenue, per-unit cost, and fixed costs. These conservative assumptions make for a more accurate estimate of real risk. JJB should break even by the fourth month of its operation as it steadily increases its sales.Break-even Analysis periodic Units Break-even17,255 periodic Revenue Break-even$38,336AssumptionsAverage Per-Unit Revenue$2.22Average Per-Unit Variable Cost$0.35Estimated Monthly Fixed Cost$32,3437.2 Projected hit and evilAs the Profit and Loss table shows, JJB expects to continue its steady growth in positivity over the next three years of operations.Pro Forma Profit and Loss200120022003Sales$491,000$567,105$655,006Direct Cost of Sales$76,750$88,646$102,386Other$0$0$0Total Cost of Sales$76,750$88,646$102,386 rough Margin$414,250$478,459$552,620Gross Margin %84.37%84.37%84.37%ExpensesPayroll$260,800$273,840$287,532Sales and Marketing and Other Expenses$27,000$35,200$71,460Depreciation$60,000$69,000$79,350Utilities$1,200$1,260$1,323Payroll Taxes$39,120$41,076$43,130Other$0$0$0Total Operating Expenses$388,120$420,376$482,795Profit Before please and Tax es$26,130$58,083$69,825EBITDA$86,130$127,083$149,175Interest Expense$10,000$9,500$8,250Taxes Incurred$3,111$12,146$15,650 engagement Profit$13,019$36,437$45,925 illuminate Profit/Sales2.65%6.43%7.01%7.3 Projected gold FlowThe cash flow projection shows that provisions for ongoing expenses are adequate to meet JJBs needfully as the business generates cash flow sufficient to support operations.Pro Forma Cash Flow200120022003Cash ReceivedCash from OperationsCash Sales$491,000$567,105$655,006Subtotal Cash from Operations$491,000$567,105$655,006Additional Cash ReceivedSales Tax, VAT, HST/GST Received$0$0$0New present-day(prenominal) acquire$0$0$0New Other Liabilities (interest-free)$0$0$0New semipermanent Liabilities$0$0$0Sales of Other actual Assets$0$0$0Sales of Long-term Assets$0$0$0New Investment Received$0$0$0Subtotal Cash Received$491,000$567,105$655,006Expenditures200120022003Expenditures from OperationsCash expense$260,800$273,840$287,532Bill Payments$143,607$186,964$237,731 Subtotal spend on Operations$404,407$460,804$525,263Additional Cash SpentSales Tax, VAT, HST/GST Paid Out$0$0$0 primary(prenominal) Repayment of Current acceptance$0$0$0Other Liabilities adept Repayment$0$0$0Long-term Liabilities Principal Repayment$0$10,000$15,000Purchase Other Current Assets$0$0$0Purchase Long-term Assets$0$20,000$20,000Dividends$0$0$0Subtotal Cash Spent$404,407$490,804$560,263 salary Cash Flow$86,593$76,301$94,744Cash oddment$156,593$232,894$327,6377.4 Balance flat solidThe following is a projected Balance Sheet for JJB.Pro Forma Balance Sheet200120022003AssetsCurrent AssetsCash$156,593$232,894$327,637Other Current Assets$12,000$12,000$12,000Total Current Assets$168,593$244,894$339,637Long-term AssetsLong-term Assets$65,000$85,000$105,000Accumulated Depreciation$60,000$129,000$208,350Total Long-term Assets$5,000($44,000)($103,350)Total Assets$173,593$200,894$236,287Liabilities and Capital200120022003Current LiabilitiesAccounts Payable$14,574$15,438$19,907Cur rent Borrowing$0$0$0Other Current Liabilities$0$0$0Subtotal Current Liabilities$14,574$15,438$19,907Long-term Liabilities$100,000$90,000$75,000Total Liabilities$114,574$105,438$94,907Paid-in Capital$110,000$110,000$110,000Retained profit($64,000)($50,981)($14,544)Earnings$13,019$36,437$45,925Total Capital$59,019$95,456$141,381Total Liabilities and Capital$173,593$200,894$236,287Net deserving$59,019$95,456$141,3817.5 Business RatiosThe following table represents key ratios for the retail bakery and coffee shop industry. These ratios are determined by the Standard Industry variety (SIC) Index code 5812, Eating Places.Ratio Analysis200120022003Industry visibilitySales Growth0.00%15.50%15.50%7.60%Percent of Total AssetsOther Current Assets6.91%5.97%5.08%35.60%Total Current Assets97.12%121.90%143.74%43.70%Long-term Assets2.88%-21.90%-43.74%56.30%Total Assets100.00%100.00%100.00%100.00%Current Liabilities8.40%7.68%8.42%32.70%Long-term Liabilities57.61%44.80%31.74%28.50%Total Liabilitie s66.00%52.48%40.17%61.20%Net worth34.00%47.52%59.83%38.80%Percent of SalesSales100.00%100.00%100.00%100.00%Gross Margin84.37%84.37%84.37%60.50%Selling, general Administrative Expenses74.74%71.43%71.39%39.80%Advertising Expenses0.49%1.76%6.87%3.20%Profit Before Interest and Taxes5.32%10.24%10.66%0.70%Main RatiosCurrent11.5715.8617.060.98Quick11.5715.8617.060.65Total Debt to Total Assets66.00%52.48%40.17%61.20%Pre-tax apply on Net Worth27.33%50.90%43.55%1.70%Pre-tax Return on Assets9.29%24.18%26.06%4.30%Additional Ratios200120022003Net Profit Margin2.65%6.43%7.01%n.aReturn on Equity22.06%38.17%32.48%n.aActivity RatiosAccounts Payable Turnover10.7912.1712.17n.aPayment days272927n.aTotal Asset Turnover2.832.822.77n.aDebt RatiosDebt to Net Worth1.941.100.67n.aCurrent Liab. to Liab.0.130.150.21n.aLiquidity RatiosNet Working Capital$154,019$229,456$319,731n.aInterest Coverage2.616.118.46n.aAdditional RatiosAssets to Sales0.350.350.36n.aCurrent Debt/Total Assets8%8%8%n.aAcid Test11.5715 .8617.06n.aSales/Net Worth8.325.944.63n.aDividend Payout0.000.000.00n.a