EXECUTIVE SUMMARY.
N.J Bakery will be located in Zana Town opposite Gerado Super market. Sweet items will be produced and with delicious taste, It is expected to catch the interest of the loyal customers who used to line up waiting for bakery products in other bakeries is in Zana as it will be based with variety of the bakery products. NJ bakery plans to build strong market positioning in the town due to industry experience and mild competition in the area.
NJ bakery aims to offer quality products at a competitive price to meet the demands of the middle to higher income earners in the local market, area residents, general dealers, caterers, and students.
NJ bakery incorporated in Zana is Equally owned by two partners: Miss Najjengo Joselyn who has extensive experience in sales, Banking and management and Miss Luyiga Joyce who has experience in selling, Buying and stock control. NJ bakery will hire three full time workers to handle customers and day to day operations. The bakery will offer a broad range of bakery products like Loaves of bread, Rolls of bread (bans) and delicious cakes. It will cater for all its customers by providing bakery products at the right time to suit customer demand, freshly donates/supplies more products at all times during business operation hours (8 am to 5 pm).
NJ bakery expects to rise 1,500,000 million shillings as start up capital and will be given some money by friend worth Shs1592000. NJ bakery anticipates the sales of about Shs3,400,00 in the first and steadily increases will be incurred as the business continues in operation.
NJ bakery will establish a large customer base and will therefore concrete the business market on general dealers and residents near Zana. It will establish a healthy, consistent revenue base to ensure the stability of the business.
CHAPTER TWO
2.O MISSION:
To offer high quality bread, Cakes at competitive price to the customers both middle and high income earners.
2.2 VISION:
“ To be the centre of quality, sweet and healthy bakery products with quick product delivery.”
2.3 OBJECTIVES:
- To ensure proper selling of bakery products by 10% in 2 years.
- To maintain net profit margin of 15-20% in an operation every year.
- To meet customers’ demand on time.
2.4 GOALS:
- To increase sales of our products in 20% every month.
- To employ and train over 10 workers.
- To attach government attention towards industrial development in Wakiso district
2.5 STRATEGY:
- Products and Pricing strategy:
NJ bakery shall ensure that our products are of high quality and the pricing strategy of products shall be affordable for everyone.
- Distribution strategy:
NJ products shall be distributed directly to general dealers, caterers and retail shps so that private students are able to access them.
CHAPTER THREE
3.0 BUSINESS IDEA.
N.J Bakery is based on producing bakery products like bread rolls, Loaves of bread and cakes. It will produce loaves of bread, delicious buns, and sweet cakes to their customers.
Customers will be students, general dealers and private house holders.
Customers will get products from retailer shops, and others from factory especially those who are near the bakery. We will deliver to general dealers and caterers. For students will get our products from retail shops and also private house holders.business will satisfy their customers with fresh products,timely services,just in time delivery.
3:1SWOT ANALYSIS.
- Strength:
- Just in time delivery of products.
- NJ bakery located at a good place.
- Long time period in the field.
- Have enough startup capital.
- Weakness:
- Limited money to advertise our products.
- Limited products produced.
- Poor management skills.
- Opportunities:
- Few bakeries within the area.
- Always updated with the latest products.
- Products are on high demand with the area.
- New schools Opening up in the area.
- Threats:
- Hot loaf bakery has many customers.
- Have variety of bakery products.
- Hot loaf has a good reputation within the area.
CHAPTER FOUR
4:0 MARKETING PLAN
4:1 Market Research
| Product/ Service | Customers | Need/Preferences of customers | Competitors |
| Loaves of bread, Bread rolls | Caterers | They need our cakes, bread, fresh bread and easily delivered to them. They often buy during morning and evening hours. | Hot loaf bakery have limited at a high price. |
| General dealers | They need loaves of bread in large numbers, Fresh bread and delivered in time. | High price of products and do not deliver to customers | |
| Students, Private house hold. | They often buy products especially from caterers and general dealers. | Located far from the people since the business is not in the centre. |
NB
NJ bakery carried out a research using on interviewing Method and was able to find ou what customers want and the weakness of their competitors.
4:2 PRODUCT PLAN
Product source or range of products.
| Loaves | Roll bans
| Cakes
| |
| Quality | Wheat loaves: Always have fresh bread. | Wheat rolls: Always available and fresh | Wheat cakes: Fresh and available
|
| Color | White | Brown | Brown/ Chocolate |
| Size | Normal size of bread with hot loaf bread | Same size with hot loaf | Large in size |
| Packaging | Delivered to the general dealer in wrapped paper bags. | Delivered to general dealer in wrapped paper bag | To customers in paper bags.
|
| Spare Part | N/A | N/A | N/A |
| Report | N/A | N/A | N/A |
NJ Bakery offers different products to their customers in all sizes they need, fresh and available at any time they need them.
4:3 MARKETING PLAN PRICE.
| Product or service Loaves ROHS Cakes | |||
| Costs | 4000 | 2000 | 1000 |
| How much are customers willing to pay | 5000 | 3000 | 2000 |
| Competitors’ price | 7000 | 5000 | 4000 |
| Price | 6000 | 4000 | 3000 |
| Reasons for selling at this price. | Attract customers to buy more products | Allow customers to access the products | Attract new customers. |
| Discount will be given to the following. | No discount | No discount | No discount |
| Reason for giving customers discount | N/A | N/A | N/A |
| Credit will be given to the following customers. | General dealers and Caterers | General dealers and Caterers | General dealers and Caterers |
| Reasons for credits. | General dealers and Caterers buy regurally in large amounts. Attract the buy more. | General dealers and Caterers buy in large numbers and every day. | General dealers buying in bulk. |
4.4 PROMOTION PLAN.
| Types of delivery | Details | Costs |
| Sign post | The sign post will read “NJ Bakery” and our customer will know about our bakery. | Shs 200,000 |
| Stickers | We will pace stickers on our door and cars with products we offer with prices. | 50,000 |
| Types of sales promotion: I. Free delivery II. Demonstrate
| NJ will deliver products to general dealers and Caterers. We shall demonstrate some of our products to our customers. |
NJ bakery will use sign posts and stickers to promote their products and also delivering products to customers to ease their transport.
4:5 PLACE:
NJ Bakery is planning to rent a building along the main street. It will be located apposite Gerado super market.
Our bakery will be located along the main street because of:
- Convenience to our customers coming to buy.
- Enough space for customers i.e. parking
Method of distribution
Direct distribution: N.J bakery will directly distribute bakery products to the customers. This will not cost so much because we well also sell to those who buy at the bakery at the same time.
4:6 INDIVIDUAL ANALYSIS.
This in actual sense tries to show how NJ bakery will operate under different circumstances.
How the business will be positioned, Competition that we will have, customers that will be targeted. Keeping other factors constant, now days birth day parties, wedding parties have made NJ bakery a booming business not only in Zana but also in different parts of the country.
- Customers:
NJ bakery will serve caterers, individual customers and general stores. individual customers will buy from retailers and General stores and caterers will buy directly from the bakery. They will buy at affordable price since they are buying in large numbers.
- Competitors:
NJ bakery competitors include:
Hot loaf bakery, Denovo bakery who produce only two products which include loves of bread and rolls of bans at a high price which is not favorable to the customers.
They do not deliver products to their customer which NJ bakery does for the customers.
CHAPTER FIVE
5:0 FORM OF BUSINESS
5:1 SOLE PROPRIETORSHIP
This is the form of business owned by one person (Owner).
NJ bakery will use sole proprietorship as a form of business, it is simple to start and involves low costs which makes it worth the risk that may be involve compared to other business forms.
5:2 THE OWNER OF THE BUSINESS:
NAME: MRS. NAJJENGO JOSELYNE.
5:3 DESCRIPTION OF SKILLS:
- Business management skills
- Has good selling skills
- Good communication skills
5.4 RELEVANT EXPERIENCE:
Has five years of experience in the bakery business.
CHAPTER SIX
6:0 STAFF
- Bakery will employee three (3) employees who will work and manage the business.
Miss Najengo Joselyn, Mrs Luyiga Joyce and full time employee,
| TASKS | REQUIRED SKILL | PERFORMED BY | MONTHLY PAY |
| Responsible for selling, Managing the business | Experience Selling and management skills | Mrs. Najjengo Joslyn | Shs400,000 |
| Banking, Stock control | Accounting Skills | Mrs. Luyiga Joyce | Shs400,000 |
| Delivering bread to shops and working as the general helper. | NO skills or experience, | 1 full time employee | Shs150,000 |
| Total number of staff | 3 Full time employee |
CHAPTER SEVEN
7:0 LEGAL RESPONSIBILITIES AND INSURANCE
7:1 TAXES.
NJ Bakery will pay government taxes while operating the business for example: Sales taxes, Value Added Tax which will be paid while buying products and services, Other taxes to be paid like employees’ income tax and these will be paid by employees and customers.
7:2 WORKING HOURS:
NJ bakery employees will work from 8am to 5pm in the evening. That implies they will be working for 8 hour a day.
7:3 HOLIDAYS:
NJ Bakery will work throughout the week and each employee will be given a day off to do her personal activities.
7:4 OCCUPATIONAL HEALTH AND SAFETY:
NJ Bakery will give gloves, gum boots to the employees during working hours to avoid damages (accidents) and also promote hygiene. First Aid will be given in case of any accident.
7:5 SICK AND MATERNITY LEAVES:
NJ bakery will give leaves to the employees for 3-4 days sick leave and maternity leave for 3 months.
7:6 INSURANCE
NJ bakery will insure its employees against accidents and medical expenses will be paying shs200,000 per year.
7:7 LICENSES:
NJ bakery has an operating license which was given by Wakiso District council to allow it operate and costed 100,000 for the license.
CHAPTER EIGHT
8:0 COSTING OF PRODUCTS AND SERVICES.
Costs involves money spent to make and sell products or services.
NJ Bakery will have direct and indirect cost.
Direct material costs per item
| Raw materials | Buying cost | Quantity per item | Costs(Shs) per item |
| Flour Yeast Milk Baking Powder Icing sugar | 1000 kg 2100kg 1500 liter 3000 kg 4000 kg | 20kg 20 kg 10 liters 5kg 4 kg | 20,000 40,000 15000 150,000 16000 |
| Total Cost | 106,000 |
Direct labor cost.
| Direct labor | Indirect labor | |||||
| Employee | Total/Work Hour per month | Total monthly pay | Hours in production per month | Pay for time for production | Hours not in production | Pay for time not in production |
| Mrs Najjengo Joselyn Selling, Managing, Baking | 240 | 400,000 | 240 | 400,000 | ||
| Miss Luyiga Joyce Baking and stock taking | 240 | 400,000 | 240 | 400,000 | ||
| Delivery Person | 240 | 150,000 | 240 | 150,000 | ||
| Total | 240 | 480 | 550000 | |||
Direct labor
costs = Total pay time in production/Total hours in production per month
= 400,000/240
= 1667 Labor cost
Direct Labor cost/hours
| Bread baking Cakes and rolls | 2 hrs 4 hrs |
| Total | 6 hrs |
Direct labor cost = Total hours X Indirect labor costs
= 6×1667
= 10002 costs
Indirect costs form
Indirect costs per month
| Rent Electricity and Water Insurance Salt water sugar and cooking oil Miscellaneous Transport Depreciation Indirect labor cost | 100,000 200,000 200,000 100,000 100,000 200,000 40,000 550,000 |
| Total costs | 1,490,000 |
Indirect cost = Total costs per month/ Total hours production per month
= 1,490,000/240
= 6208.3Shs
Total Cost per item
| Direct material Cost | 106000 |
| Direct Labor Costs | 1667 |
| Indirect costs | 6208.3 |
| Total Costs | 11387.5 |
CHAPTER NINE.
9:0 FINANCIAL PLANNING
Sales and cost plan 2018
| Details | JAN | FEB | MAR | APR | MAR | JUN | JUL | AUG | SEP | OCT | NOV | DEC | TOTAL |
| Sales | 145,000 | 168000 | 203000 | 256000 | 239000 | 2550000 | 374000 | 323000 | 374000 | 400000 | 382000 | 400000 | 34,000,000 |
| Direct Labor Costs | 550,000 | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 |
| Direct material cost | 106,000 | 120,000 | 110,000 | 100,000 | 200,000 | 140,000 | 200,000 | 150,000 | 170,000 | 400,000 | 100,000 | 280,000 | |
| Gross Profit | 361,000 | ||||||||||||
| Indirect | 1,490,000 | ||||||||||||
| Net Profit | 1,129,000 |
9:1 CASH FLOW
| JAN | FEB | MAR | APR | MAR | JUN | |
| Cash at the start of the month | 3,092,000 | |||||
| Cash in sales | 145,000 | 165,000 | 203,000 | 256,000 | 239,000 | 255,000 |
| Any other cash | ||||||
| Total cash in | 3,237,000 | |||||
| Direct material costs | ||||||
| Direct labour costs | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 |
| Indirect costs | 550,000 | 550,000 | 550,000 | 550,000 | 550,000 | 550,000 |
| Planned investment Equipment | 7,100,00 | |||||
| Loan payment | ||||||
| Other cash | 200,000 | |||||
| Cash at the end | 5,097,000 |
CHAPTER TEN
10.0 Required startup capital
Investments
| Convision Promises | 600,000 |
| Equipment | |
| Oven | 500,000 |
| Fixtures | 200,000 |
| Tools for banking | 100,000 |
| Total costs | 1400,000 |
10:2 Working Capital
| Stock of raw material or final goods | 212,000 |
| Promotion | 500,000 |
| Wages | 180,000 |
| Rent | 200,000 |
| Insurance | 400,000 |
| Other costs (Water and Electricity) | 200,000 |
| 16,920,000 | |
| Total cost | 3,092,000 |
CHAPTER ELEVEN
11:0 TYPES AND SOURCES OF CAPITAL.
Sources of startup capital
| Required startup capital | 3,092,000 |
| Owners Equity | 1,500,000 |
| The other source | |
| Mr.Arafat (Friend) | 1,592,000 |
| 3,092,000 |
APPENDIX: i
CURRICULUM VITAE
BIOGRAPHY:
Name : NAJJENGO JOSELYNE
Address: Zzana, Wakiso
Telephone: +256 755 920552.
Email: najjengojoselyn@gmail.com
Nationality: Ugandan
Gender: Female
Date of birth: 11th November 1995
EDUCATION BACKGROUND
2015- 2018: Bachelor of procurement and logistics management.
Kyambogo University, Kampala, Uganda.
2012-2013: Uganda Advanced Certificate Education .
St.Noa girls School.
2009-2014: Uganda Certificate Education
St.Noa girls School
RESPONSIBILITIES HELD.
DURATION RESPONSIBILITY PLACE
2 Years Business Manager NJ Bakery
LANGUAGES: English, Luganda and Swahili
SKILLS AND ABILITIES
Good communication
Sales skills
Managerial skills
REFERENCES
Dr.Olweny Mark,
Assistant manager.
Ntake Bakery
