Cruz Bakery is a bakery business incorporated in Texas. The
company expect to leverage on the quality of its pastry products and services. Although
the industry is very competitive the location has no competition. The demand is
huge and our products are competitively priced to meet middleclass patronage.
The Company
Cruz Bakery incorporated in Texas is owned by husband and
Wife, Brad and Lady Cruz. Brad a former executive chef with 14 years cognate
experience.
Lady Cruz has a degree in accounting and worked as a
marketing and management position for 10 years. The company staff requirement
are two pastry makers, a driver and four part-time workers.
Products and Services
The products are bakery and coffee products. We will
serve espresso products sourced from quality imports. Bakery products will be
made on-site fresh and in batches.
The Market
The bakery and coffee market is huge in the United States
of America. With a huge local and
tourist base rapidly growing 10% each year.
Financial Considerations
The startup requirement is estimated at $250,000 from
borrowing and owners capitalization. Cruz bakery will raise $100,000 of its own
capital and borrow $150,000. Expected sales is estimated at $400,000 annually
with an increase of $200,000 the subsequent year.
We expect to break-even in six months of operation. Within
the first year profit is estimated at $15,000 which will double the second
year. We expect a steady cash flow and collect cash and debit card
transactions.
1.1 Mission
The bakery offers quality pastry products and coffee. Our
mission is to provide quality products at competitive prices for middleclass. The
expected market base are tourists and local residents.
Keys to Success
With our highly qualified management and staff the
company is duly positioned for success. We strive to provide quality products,
to notch services at competitive prices.
Company Summary
The company Cruz bakery is owned and managed by husband
and wife Mr. and Lady Cruz. Their combined experience in management, sales,
bakery, administration and sales will guarantee success of the business.
They will fund the enterprise their personal savings and
seek additional funds for first year operations. The company requires a 6 year loan
from financial sources. The company will operate in a moderately competitive environment
and leverage on the experience and expertise of founders.
2.1 Company Ownership
The company is owned by Brad and Lady Cruz and
incorporated in Texas.
2.2 Start-up Summary
The startup is funded by financers and the business owners.
Startup requirements are legal, expensed equipment and premises renovation.
Startup expenses are current assets, long term assets and
cash requirements. The total fund requirements include additional cash,
non-cash assets and startup cash requirements.
Liability and Capital
The liabilities are long term liabilities, current
borrowing and outstanding bills. The total liability includes owner’s startup
funds. The startup total liabilities is expected at 210,000.
Products
The products we offer are bakery and custom made coffee. The
bakery will produce freshly baked products in batches for proper quality
assurance. The coffee is imported from top growers to maintain quality.
Market Analysis Summary
The market is targeted at tourists and local residents. The
market segmentation is targeted at middle and upper class patrons. The customer
base are local residents and tourists.
Market Analysis
The market for baked product and coffee is huge in the
US. Cruz bakery will produce quality bakery products, espresso and coffee. The
competition is moderate and slightly challenging.
Sales Strategy
The bakery expects sales of $400,000 first year and $200,000
subsequent year. Sales forecast are the pastry item sales and espresso drinks.
Management Summary
The co-owners have combined extensive experience in
baking, accounting, sales and marketing. They have working in similar
establishments for many years. Personnel are driver, bakers, product
development and sales support team.
Personnel Plan
The personnel plan involves managers, pastry bakers and
barista. A year wages for pastry bakers is estimated at $50,000. The managers
will earn $100,000 per year while barista $80,000 per year.
Financial Plan
Cruz Bakery is expected to raise $100, 000 from co-owners
and $150,000 from borrowing. The expected loan tenor is 6 to 10 years for adequate
time to fulfil the loan conditions.
Break-Even Analysis
The breakeven is predicated on operational expenses and
total unit sales. They are analyzed based on fixed costs, per-unit revenue and
per unit cost.
Projected Profit and Loss
The projected profit and loss gross margin and expenses. The
expenses are payroll taxes, depreciation, utilities and sales/marketing
expenses. There is also the tax incurred, EBITDA, interest expense.
Projected Cash Flow
The projected cash flow is the cash from operations and
cash received.
Balance Sheet
The pro forma balance sheet is the current assets and cash
at hand. Current assets is estimated based on long term assets, accumulated depreciation.
Liabilities are account payable, current liabilities and current borrowing.
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