Bakery Bread Shop Business Plan Example

Executive Summary

There is a growing understanding of high quality baked goods. A uncommon mix of quality, convenience, and luxury is premium bread. Today’s customers expend less time baking nutritious artisan bread, but the nutrient and sensory advantages are increasingly valued. It is quick, low fat, easy to transport and offers high quality bread. fibre and carbohydrates deliciously. Good bread is never out of date. Galaz Bread Baker Company will produce high-quality handmade bread and sell it to residents and tourists in Oman. The company will focus on Oman’s style; The baguettes and raw yeast bread are produced from high-quality ingredients. Bread would be cooked using a four-stage oven via steam injection and distributed in supermarkets. The labour-saving equipment will allow the owner to perform the entire operation with two seasonal part-time employees. Galaz Bread Baker Company’s main competitors are a health food store in Oman, three pastries and three supermarkets. Its advantage is the high-quality products obtained through specialisation and manual production. The main marketing goals Flashy signs, the scent of new bread coming from the supermarket and commercials printed daily would be flashy. The firm would assess the product generously.

The organisation would discuss the prospect of producing takeaway bread and sandwiches after developing the service. The delivery of bread and baked products to local restaurants and specialist stores would also be regarded. The business was established by Ghusun Al Yahmadi and Amjad Al Balushi, renowned artisan bakers, who are currently baking bread and cakes for similar companies in Oman. Over the past two years, Ghusun Al Yahmadi and another associate, Khalid Al Siyabi, have created a special baking software from scratch. The fourth and fifth partners will also be seasonal workers and consultants: Ahmed Al Harasy, a baker specialising in various bread samples after baking for a year with his main competitors. Zakariya Al Mukhaini is the fifth partner with the significant managerial capability to run multiple food establishments in Oman’s Sultanate. He will head the company’s operations as both active and passive partner. Together, they offer comprehensive practical knowledge and a realistic view of the business. Currently, Galaz Bread Baker is applying for 19,975 start-up OMR loans. The key expenditures include the purchasing of supplies, leasing of warehouses, purchase of components, reconstruction of the site, and promotion for 23,484.94 OMR. The estimated revenues for the first three months would hit 15,818.45 OMR, according to industry and rivalry analysis. OMR 1,824.90. gross monthly benefit is produced by combined operational and sales costs. The first three years will be devoted to developing the financial health of the business and growing its market share, considering Gakaz Bread Baker’s tremendous growth potential.

Company Summary

By exploiting the need for the premium bakery, Galaz Bread Baker can service the Omani population. It will have a choice of Omani style quality bread that is freshly made in the bakery.

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Product

This bakery is freshly built with a computer for making Omani bread and adding a perfect mouthfeel with some additives. The product can be easily prepared, without preservatives and at the same price and quality as the product on the international market (0.350 Bz). The brand will consist of weights developed by Omani women with 100% fitness and Omani features. Please notice that one of the key meals in Oman is this dish.

Mission Statement

The near-term aim of the business is to obtain a timely start in order to take advantage of the lucrative tourism season. Long-term proposals require the addition, over the year, of a takeaway lunch shop and bread wholesale.

Company Ownership

It will begin with five baker owners with the aid of a part-time employee and two as operational managers. In the first year of operations, the firm plans to purchase more than 38,489.90 OMR. The creators of Gakaz Bread Baker are five owners, and they have served as specialists and chefs in food companies as bakers for the past four years. The experience of purchasing managers and R&D managers provides the organisation with an appreciation of the realities of output and technological skills. At least four collaborators have two years of experience making bread dough as the guiding force behind the present Gakaz Bread Baker artisan baking scheme. The group is working to get initial funding..

Start-up Expenses

By default, to meet the goal audience, the organisation calculated all expenses involved with development and distribution. In addition, the payments expected for start-up and other company expenditures were reviewed.

According to the projected start-up costs of the company, the overall financing of the start-up is adequate to operate the business and continue to generate a profit after a year. As for the return, it is impossible to equate our organisation with other forms of the industry since that will build a different market named “machine-based restaurant.” Restaurants & coffees, on the other side, maybe the closest business to that. In pricing, though, we will set the percentage of the benefit to draw clients at a very minimal cost. According to the profit expectation, for first six months, the company won’t get any additional profit, just trying to mitigate the income with the expenses, but gradually with the increase of demand and sold bread after 6th month would be generated monthly. By the end of the first year, we would generate enough amounts that are going to be sufficient to cover regular business expenses and cover about half of the required amount for expanding. 

Location and Facilities

Since the business will be founded in Oman and the goods sold are not new in this region, it is necessary to undertake a target market analysis. The position of our product should be obtained to guarantee that one of the most crucial variables helping to create this project is obtained. Availability of buying power is the first factor; the item must be in an area full of target buyers, such as workplaces, industrial facilities, company buildings and shopping centres. Therefore, we have chosen Muscat Grand Mall’s starting point to include a large number of companies and customers, while it is difficult for competitors to enter the market. Also, Muscat Grand Mall administration is known to support Omani start-ups. Mainly in a matter of competitive power factor, our idea to have an Omani Bread Maker Machine has not implemented by anyone. Yet, we might have high competitive leverage at the start. Nonetheless, in the long term, we expect to face very high completion from others. Therefore, we set a plan to develop a mobile phone app specified for our product through its customers can choose their meal & the time they want to take their meal. Moreover, an additional feature we are planning to implement is Artificial intelligence, which will ask the users some questions that will improve suggested meals and provide advice On the user’s healthiest diets, depending on his medical records. In general, it would move to discourage rivals from emerging by introducing innovative tactics before other competitors and defiantly growing our consumer satisfaction.

The Market

Market Segmentation & Target Market

The aim would be to invest in only one computer within the first three years. It should be in a position full of customers who have little time to rest in the restaurant or have little time to wait before the busy restaurants serve them their lunch. The position can also be of critical significance for at least two-thirds of the day. The city often has pricey restaurants, as this serves to limit the number of rivals. Thus, because of its offices and an active commercial centre, we chose to launch at Muscat Grand Mall.

Strategy for Reaching Target Market

Since the business will be founded in Oman and the goods sold are not new in this region, it is necessary to undertake a target market analysis. Our product’s location should be obtained to ensure that one of the most significant factors that help in the establishment of this project is Retrieved. Availability of buying power is the first factor; the item must be in an area full of target buyers, such as workplaces, industrial facilities, company buildings and shopping centres. Retail centres. Therefore, we have chosen Muscat Grand Mall’s starting point to include a large number of companies and customers, while it is difficult for competitors to enter the market.

Business Vendors

Also, Muscat Grand Mall administration is known to support Omani start-ups. Mainly in the matter of competitive power factor, our idea to have an Omani Bread Maker Machine has not implemented by anyone. Yet, we might have high competitive leverage at the start. Nonetheless, in the long term, we expect to face very high completion from others. Therefore, we set a plan to develop a mobile phone app specified for our product through its customers can choose their meal & the time they want to take their meal. Moreover, an additional feature we are planning to implement is Artificial intelligence, which will ask the users some questions that will improve suggested meals and provide advice On the user’s healthiest diets, depending on his medical records. In general, it would step defiantly by applying modern tactics before any rivals and growing our consumer satisfaction. To prevent competitors from appearing.

Competition

These clients are involved in nutritious meals, and they would enjoy our products’ enticing nutritional profile. Due to under capitalisation, the rival would have difficulty adapting to the efficiency benefit of our equipment and processes. Many prospective consumers are hesitant to patronise the competitor, seeing it as “too liberal” for its employers and workers. True or not, at Gakaz Bread Bakers ltd., these clients may feel more relaxed.

Marketing Strategies

Galaz Bread Bakers Ltd will market its goods from its storefront to new and regular buyers, situated on busy roads with a big, tasteful storefront sign that will draw the eyes of passing motorists. When it emerges from the oven, the scent of bread can draw in shoppers from the parking lot. Galaz Bread Bakers Ltd will be giving anybody who walks into the shop a taste of freshly baked bread.

Pricing Strategy

The significant risk to any Oman area retail operation is the seasonality of the customer base. Galaz Bread Bakers ltd will address this problem by opening at the height of the lucrative season. This will give the company an adequate supply of working capital to help with the start-up period. The company will market itself primarily to the year-round population. Contract products prepared will bring in cash during the slow fall season. Unless strong demand shows a need, labour will be eliminated in the slower seasons, and advertising will be minimal.

Promoting Strategy

Printed advertisements, which will run an opening week, will highlight bread as an everyday product, to be purchased fresh on a weekly or daily basis. More printed advertisements will run Labor Day weekend and during the Christmas season. Costs for these advertisements will be approximately $200 each.

Sales Strategy

Galaz Bread Bakers products will be truly unique in the marketplace. When compared with the competition, the look, feel, and taste of its bread will underscore their quality and value. Many of the products will not be available anywhere else. Galaz Bread Bakers Ltd will also actively encourage customer satisfaction. Our product line will react to the customer’s needs and desires, thereby enabling repeat and word of mouth sales. As a small hands-on facility, Gakaz Bread Bakers Ltd will have the freedom to react quickly and accurately to changes in the market. Due to its uniqueness and convenient location, Gakaz Bread Bakers will become a destination for food lovers.

Management Summary: Staff

The business was established by Ghusun Al Yahmadi and Amjad Al Balushi, renowned artisan bakers, who are currently baking bread and cakes for similar companies in Oman. Over the past two years, Ghusun Al Yahmadi and another associate, Khalid Al Siyabi, have created a special baking software from scratch. The fourth partner will also be seasonal workers and consultant Ahmed Al Harasy, a baker specialising in bread after baking for three years with his main competitors. Zakariya Al Mukhaini is the fifth partner with the significant managerial capability to run various food establishments in the Sultanate of Oman. He will head the company’s operations as both active and passive partner. Together, they have considerable practical insight and realistic understanding of the business to ensure that the enterprise is an ongoing concern.

Financial Plan/Projections

By default, to meet the goal audience, the organisation calculated all expenses involved with development and distribution. In addition, the payments expected for start-up and other company expenditures were reviewed.

According to the projected start-up costs of the venture, the overall financing of the start-up is adequate to operate the company and begin to make a profit after a year. As for the return, it is impossible to equate our organisation to another form of industry since it will build a different market named “machine-based restaurant.” Restaurants & coffees, on the other side, may be the closest to businesses.However, in pricing, we would set the percentage of the profit at a very minimum rate to attract customers. According to the profit expectation, for first six months, the company won’t get any additional profit, just trying to mitigate the income with the expenses, but gradually with the increase of demand and sold bread after 6th month a small amount of profit would be generated monthly. The initial cost is made up of equipment @ OMR 17709.95, materials@ OMR 1732.50, rent (2 months)@ OMR808.50, site modification@ OMR1924.99, signage@ OMR385.00, consultations@OMR385.00, supplies@ OMR231.00 and cash reserves @OMR 3772.99. The total start-up cost is OMR 30,000. By the end of the first year, we would generate enough amount that will be sufficient to cover regular business expenses and cover about half of the required amount for expanding. 

Sources of Finance

The agency is in the process of obtaining finance for a start-up. The proprietors currently have OMR 7699.98 from private sources and are seeking OMR 5389.99in additional bank loans.

Where is the Money to be?

Galaz Bread Bakers ltd will budget OMR 3772.99 in cash reserves as a cushion to help weather the start-up period. Depending on available cash after Christmas, Gakaz Bread Bakers ltd will contemplate adding a sandwich bar to serve local shoppers and employees.

Business Model

GAKAZ Bakery Business Model

Competitor Analysis

The market analysis revealed that there are currently three suppliers of confectionery products for the area that intends to introduce its products—the supplier’s Le Petit Paris Bakery, Cake Gallery Mawelah and Muscat Bakery.

Potential retailer and consumer respondents’ satisfaction levels with supplier products and services 

The potential retailers and consumers indicated high satisfaction with Muscat Bakery and Le Petit Paris Bakery products and customer service. Consumers who manage to get bread from Cake Gallery Mawelah also expressed high satisfaction with Cake Gallery Mawelah bread and customer service.

Potential retailer and consumer respondents’ dissatisfaction levels with supplier products and services 

All the retailer and consumer respondents demonstrated high levels of dissatisfaction with Le Petit Paris Bakery and customer services due to is French-oriented tastes. Retailers and consumers mentioned that they buy Muscat Bakery products because they do not have another alternative since it is only Muscat Bakery that distributes Oman ordinary bread. Dissatisfaction with Cake Gallery Mawelah products and customer service is the sole reason that all the retailers at Turn off stock only due to too many products. Consumers find it difficult to make a quick decision while shopping.

Threat of Substitute Product

Both the potential retailer respondents and likely consumer respondents agreed that several products could substitute confectionary products in their localities and homes. Such products include Irish potatoes, sweet potatoes, cassava and home-made doughnuts and banana fritters. However, the respondents pointed out that despite substitute products, confectionery products, and ordinary bread have their place. People continue to use confectionery products due to several reasons. The reasons that the potential retailer and consumer respondents presented are presented below:

Irish potatoes and sweet potatoes are mostly grown for sale since the households produce the Irish and sweet potatoes themselves, they like to eat

• something different (go for confectionaries for a change) 
• Confectionaries are mostly used by those who are in transit or away from home for
• For example, business people mostly take confectionaries as snacks and also as lunch. 
• Confectionaries are fast foods for busy people like the employed, those doing business, students, etc. Children love confectionaries than the substitutes
• Substitutes are sometimes expensive than candies especially when they are out of Season

The evidence shows that even though Oman’s area produces many sweet potatoes which are direct substitutes for confectionaries and apart from the availability of other substitute products like cassava and home-made doughnuts and banana flitters, there is still potential market for confectionery products in areas surrounding Oman towns.

Threat of New Entrants

In the baking industry, the threat to new entrants is relatively low because of the number of resources required to start a business and develop a distribution network. The challenge of new entrants to Breadtalkare is strong in the bakery industry with reasonably low barriers to entry. The initial capital outlay is far smaller in the bakery industry than in other industries and there are not many research and development needs to conduct this market. In comparison, it is much better to intimacy the things of each other (Charlie, 2010).

• Capital Requirements

The initial cost is made up of equipment @ OMR 17709.95, materials@ OMR 1732.50, rent (2 months)@ OMR808.50, site modification@ OMR1924.99, signage@ OMR385.00, consultations@OMR385.00, supplies@ OMR231.00 and cash reserves @OMR 3772.99. The total startup cost is OMR 30,000. So by the end of the first year, we would generate enough amount that.  

• Government Policies

Oman tax-free. We do not pursue exponential growth or franchising. We organically set the cost structure, the resources available within and within our reach.

Honest employers are entitled to tax exemption. All our employees live in the area. We also have a training program to hire veterans and prisoners to prevent homelessness in Oman.

• Access to Distribution Channels

Word of mouth and social will do this by informing the Public of your developments and services. Consider the most effective mediums to reach your audience.

Bargaining Power of Suppliers

Suppliers generally have relatively low bargaining power in the bakery because there are already a large number of existent suppliers in this industry. The fact that raw materials like flour and wheat do not differ mainly in quality across suppliers; further restrains suppliers’ bargaining power.

Bargaining Power of Buyers

In the bakery, buyers enjoy enormous bargaining power as switching cost is low, so they won’t mind changing their tastes and preferences if the price of bread shot up.

Conclusion

We can infer that the project would not be viable for a duration spanning from one year to one and a half, by contrasting the project with the intensity of demand. In external funding, the initiative can be spread when the willingness to spend is deemed a lucrative and comparatively inexpensive assignment. Via marketing and in accordance with the market price, the project will preserve buying power. Via the suggested evaluation, with three factors, one neutral and one negative, the conclusion was positive. This illustrates that, notably in financial terms, the project has some challenges, but the project also promises sustained progress and profitability. After this report, we recommend that the remaining procedures of the project should be continued, but there should be the required material caution.

References;

• Barringer, R. B. (2015), Preparing Effective Business Plan, an Entrepreneurial Approach, Second Edition, Oklahoma State University Barrow,
• Colin and Barrow, Paul and Brown, Robert (2009). The Business Plan Workbook, The Definitive Guide to Researching, Writing up and Presenting a Winning Plan, Kogan Page Bércziné Dr. Juhos, Júlia (1996), Piackutatás a Gyakorlatban, Co-Nex Harvard
• Business School Press, Pocket Mentor 2007, Creating a Business Plan, Harvard Business School Publishing  Corporation
• Kotler Philip and Keller Kevin Lane. Marketing Management, 14th E., Prentice Hall, New Jersey, USA, 2012
• Kotler Philip and Armstrong Gary, Principles of marketing, Ninth Edition, Prentice Hall
• International, Inc, New Jercey, USA,2001 Porter E. Michael, Competitive strategy, Techniques for analyzing industries and competitors, The Free Press, new York, USA, 1980

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