ENTERPRISES (PRPPRIETARY) LIMITED

BAKERY BUSINESS PROPOSAL

MCDC
5/7/2014

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ORIGIN OF, AND BACKGROUND TO, PROJECT SUBMISSION

BAKERY

This is the company that deals with baking of flour mixtures.

This is a newly found company of five members. It was found and formed this year
January and it is registered with the company registrar office.

The company founders/ members have all been exposed to federation (motshelo) in
order to raise funds for the members to maintain the living. So as company
members we decided to expand and start a business. According to our market
research there is high demand of bakery products on daily basis e.g. Loaf, Cake,
Fat cakes, rock bun, ring bun etc,

SOCIAL PROLEMATIC SITUATION

Lack of employment and lack of strategies or ways of generating income to

maintain the living causes individuals to get involved in negative roles of
recreation like abusing of alcohol and drugs, commercial sex and fights which
destroys the capability and dignity of the community.

ECONOMIC PROBLEMATIC SITUATIONS

Community level of development is running behind since we are not having plenty
of business which is owned by community members. Women of the community as
expected to be running families are not having access a very serious weakness that
we find most population of women in poverty.

As community we have not benefited from any financial institution to start

business and make recreational facilities unless for poverty eradication program
and newly arrival Gender Affairs program.
We wish to be empowered economically so as to pioneer our own businesses to
sustain the living and eradicate the poverty amongst women. Also as for big
companies to assist with funds to empower people to start their own business.

For our nation our company will supported both in rural areas and urban places and
this gives us a great opportunity to do well in the market and also we are targeting
to export our goods to developing stores.
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 PROJECTS DESCRIPTION AND PRODUCTION
PROCESS

Tool/ Equipment Process Out Put

Pot, water and Warm some water.

stove. Warm water.
Measuring cylinder Measure the ingredients. Measurable
and a bob scale. ingredients for
solution.

Mixing bowl. Mix up all the ingredients in the same

bowel. Solution.
Warm water and Add some water in the mixed solution. solution
ingredients

Steer the solution to make it dough. Dough.

Mixing bowl.
Open space. Wait for some minutes while dough is
getting ready. Dough.
Baking trays. Insert the dough in some trays. Molded dough
and loaf shapes
Take the trays into the baking oven. Well-cooked
Baking oven. bread ready for
package,
Wait for some minutes while baking
process is ongoing.
Remove the trays from the baking oven. Bread.
Then remove ready bread from the trays.
Wait for some minutes while bread is still
Open space with cooling.
fresh moving air.
Packaging plastics. Package bread in plastics and insert in Packaged and
crates for sales and delivery. packed bread.

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 SUMMARY OF INPUTS

BUDGET
DESCRIPTION QUANTIT COST PER TOTAL
Y UNIT

Deck oven three deck (60 loaf) 1 20,300.00 20,300.00

Bread pan BO5 36 440.00 15,840.00
Bread pal Lid 12 210.00 2, 520.00
Proover double door 28 trays 1 13, 900.00 13,900.00
Micro steel scale W/P15KGS 1 2,100.00 2,100.00
Verification bobs 2 50.00 100.00
Table S/back steel 1700mm 1 2,700.00 2,700.00
Sink double 150/150ltr 1700mm 1 6,100.00 6,100.00
Grease trap steel 1 2,750.00 2,750.00
Bread slicer table model senior 1 18,800.00 18,800.00
Bread Crate 10 loaf 10 100.00 1,000.00
Fryer spaza global (basket incl)12lt 1 5,250.00 5,250.00
Disposable mop caps 1x100 1 60.00 60.00
Dough mixer 50kgs 220v 1 17,000.00 17,000.00
Rent 3 1500.00 4500.00
Backup generator 1 360.00 360.00
Fly trap 1 200.00 200.00
White 2PC overall size 44 5 95.00 475.00
Oven gloves leather 400mm 5 95.00 475.00
Computer 1 5 470.00 5 470.00
Bread flour 1 2 000.00
2 000.00
Contingency 1
2 500.00 2 500.00
Measuring cup 1
93.00 93.00
Measuring jug 1
Rolling pan 2 120.00 240.00
Shelving unit 1 745.00 1 490.00
Cut bag sealer 2 2 960.00 2 960.00
Vinyl tape 12 380.00 760.00
1 25.00 60.00

SUB TOTAL 229 875.00

197 827.50

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Stock list

DESCRIPTION QUANTITY COST PER UNIT TOTAL

50 Kg bokomo brown 10 315.95 3159.50
flour
50 kg bokomo cake 10 341.95 3419.50
flour
50kg bokomo white 10 330.95 3309.50
flour
500g anchor instant 10 25.95 259.50
yeast
500g royal baking 10 29.95 299.50
powder
20 Lt excella cooking 5 319.95 1599.70
oil
25kg premix king bread 1 356.15 356.15
25kg premix sweet and 1 498.50 498.50
soft 20%
25kg premix super soft 1 500.65 500.65
15kg raising 1 443.75 443.75
25kg white king sugar 1 287.85 287.85
12.5 kg plastic king 1 341.60 341.60
25 kg muffin mix 1 715.40 715.40
20kg country life baking 1 630.00 630.00
powder
25 kg MRG white 1 457.80 457.80
margarine
25 MRS j yellow 1 457.80 457.80
margarine
5 210 1176.00
Overall 2pc white
Cake board sq 330 per 1 224.00 224.00
10
Cake box 18x18x5 per 1 612.85 612.85
50
Bread bags plain 1 374.95 374.95
25x45x10mm
Glove leather weld 14 5 34.82 174.10
inch

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Work shoes(promax) 5 165.18 825.90
Subtotal 20 124.50
GRAND TOTAL 249 999.50

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APPLICANT’S CONTRIBUTION

As the company founders we have already contributed towards this success of this
project, as we have contributed funds to register the company, as well as transport
fares as we commute around looking for quotations and advices from other people.

List of things we contributed funds on

 Transport
 licensing
 quotations
 bank account
 making copies of ID, business certificates
 copies of business plans
 communications

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 FINANCIAL PROJECTIONS
PRODUCTION FORECAST

(Taking into account your estimated monthly working capital, the skills and or
competency level of your employees, your production schedules, and machinery
capacity what will be a reasonable number of goods/ services you expect to
produce on a monthly basis?)

Good/ Services Weekly Production Total

1 2 3 4
loaf 3360 3360 3360 3360 13 440
muffins 900 900 900 900 3600
Fat cakes 900 900 900 900 3600
cakes 20 20 20 20 80
scones 900 900 900 900 3600
Ring bun 600 600 600 600 2400
Long bun 600 600 600 600 2400
Rock bun 400 400 400 400 1600

Total 21280

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 SALES FORECAST

(Taking into account your estimated monthly production, customers’ purchasing

power, and existing competition how much do you expect to generate from sales
on a monthly basis?)

Good/ Services Weekly Production Quantity Unit Price Amount

1 2 3 4 (Pula) (Pula)
loaf 3360 3360 3360 3360 13 440 7.00 94 080
muffin 900 900 900 900 3600 6.50 23,400.00
Fat cake 900 900 900 900 3600 1.00 3,600.00
Cake 20 20 20 20 80 15.00 1,200.00
scones 900 900 900 900 3600 4.50 16,200.00
Ring bun 600 600 600 600 2400 4.00 9,600.00
Long bun 600 600 600 600 2400 4.00 9,600.00
Rock bun 400 400 400 400 1600 5.00 8,000.00

Total Sales Revenue 99,600.00

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 ANNUAL SALES Year 1
Goods/ Quarterly Sales Quantity Unit Price Amount
Service (Pula) (Pula)
Mon1-3 Mon4-6 Mon7-9 Mon10-12

Loaf 3000 3000 3000 3000 12,000 7.00 84,000.00

Muffin 2700 2700 2700 2700 10,800 6.50 70,200.00
Fat cake 2700 2700 2700 2700 10,800 1.00 10,800
cake 60 60 60 60 240 15.00 3,600.00
scone 2700 2700 2700 2700 10,800 4.50 48,600.00
Ring bun 1800 1800 1800 1800 7,200 4.00 28,800.00
Long bun 1800 1800 1800 1800 7,200 4.00 28,800.00
Rock bun 1200 1200 1200 1200 4,800 5.00 24,000.00

Total Sales Revenue 270,000.00

ANNUAL SALES Year 2

Goods/ Quarterly Sales Quantity Unit Price Amount

Service (Pula) (Pula)
Mon1-3 Mon4-6 Mon7-9 Mon10-12

Loaf 3000 3000 3000 3000 12,000 7.00 84,000.00

Muffin 2700 2700 2700 2700 10,800 6.50 70,200.00
Fat cake 2700 2700 2700 2700 10,800 1.00 10,800
cake 60 60 60 60 240 15.00 3,600.00
scone 2700 2700 2700 2700 10,800 4.50 48,600.00
Ring bun 1800 1800 1800 1800 7,200 4.00 28,800.00
Long bun 1800 1800 1800 1800 7,200 4.00 28,800.00
Rock bun 1200 1200 1200 1200 4,800 5.00 24,000.00

Total Sales Revenue 270,000.00

ANNUAL SALES Year 3

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Goods/ Quarterly Sales Quantity Unit Price Amount
Service (Pula) (Pula)
Mon1-3 Mon4-6 Mon7-9 Mon10-12

Loaf 3000 3000 3000 3000 12,000 7.00 84,000.00

Muffin 2700 2700 2700 2700 10,800 6.50 70,200.00
Fat cake 2700 2700 2700 2700 10,800 1.00 10,800
cake 60 60 60 60 240 15.00 3,600.00
scone 2700 2700 2700 2700 10,800 4.50 48,600.00
Ring bun 1800 1800 1800 1800 7,200 4.00 28,800.00
Long bun 1800 1800 1800 1800 7,200 4.00 28,800.00
Rock bun 1200 1200 1200 1200 4,800 5.00 24,000.00

Total Sales Revenue 270,000.00

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 BUSINESS MEMBERSHIP / SHAREHOLDING TABLE

NAME IN FULL DATE OF OMANG NO POSITION PERCENTAGE GENDER

BIRTH OF SHARES
Chair person 20%
Treasure 20%
Vice Chairperson 20%
Marketing secretary 20%
Secretary 20%

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FUNCTIONAL RESPONSIBILITY

NAME FUNCTIONAL AREA REQUIRED COMPETENCIES

 Organizes and leads the meeting Managerial/chairperson

 Oversees all company executive proceedings
 Represent the company outside

 Performs all duties of the chairperson in his/ her Managerial/vice chairperson

absence

 Records the minutes of the meeting Managerial/secretary

 Arranges the meetings
 Keeps all the company documents except
financial documents

 Spear heads the marketing strategies Managerial/marketing secretary

 Assess the market prices and establish the
company’s pricing strategy
 Establish the market of the company

 Keeps and manages finances and financial Managerial /treasurer

records
 Lead the budgetary proceedings

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MARKETING AND MARKET RESEARCH

Market Size: According to our production forecast our company will afford to
produce 78240 products annually that will be sold at prices ranging between
1.00and P7.00.

Competitors: Currently in our intended area of operation there are no bakery

operating in our intended area of operation so people buy flour products at the
mall.

Marketing Strategy:
 Our Company has adopted the use of quality raw materials
 Our company employees are skilled and experienced in baking.

Distribution Channel: Our products will reach the market through deliveries and
sometimes it will depend on customer’s wishes

Supply Channel: We have seven (7) local suppliers of raw materials

Pricing Strategy: The prices will be reasonable and determined by the costs of
raw materials. They will be ranging between P1.00 to P20.00.

Promotions/ advertising: The company products will be advertised through

electronic media (radio and television), Fliers, bill boards and business cards.

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PROPOSED APPROACH TO MONITORING

The key indicators of project include the rate of production on monthly and annual
basis, the financial statement on weekly, monthly and annual basis, also the survey
will be done to indicate the customer satisfaction and also to measure the quality of
products on its customers.

External evaluators such as human’s affairs department, consumer fairs and plate
and local enterprises. Authority will be invited to give their professional progress
evaluations.

The chairperson will provide final synthesized report. The marketing secretary will
give the market share research report and companies innovation strategy and price
position report; the treasure will give the financial report including the debts and
credit status.

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 SWOT ANALYSIS
STRENGTH:

 The founders of the company have general knowledge in financial

management and business wise.
 All directors know the good customer service.
 Company founders are able to work overtime to meet customer requirement.
 All company founders can work under minimum supervision.

WEAKNESS:

 Lack of startup capital since the members are currently unemployed

Laziness
Failure to keep time and records
Absentism
OPPORTUNITIES:

 Tendering in government institutions and to provide loaves e.g. schools,

hospitals, and also in private companies.
 Peak seasoning- these are times when people demand such goods in higher
numbers, e.g. holidays.

THREATS:

 Unfair competition from tender suppliers.

 Power cuts that can disturb the production
 Theft of goods in the workshop by dishonest customers.

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