2. Prechy Cakes “N” Pastries, owned by Ms. Ogugua Onyinyechi Racheal, produces
and sells variety of cakes, cupcakes, and pastries in the Aba of Abia State. Prechy
Cakes “N” Pastries has been growing 30% per month for the last one year to
become a favorite bakery in the area. Prechy Cakes “N” Pastries goal is to develop
a unique chain of 10 bakeries in Nigeria by 2020, with sales revenue doubling every
two years and net profit increasing by 15% annually. Prechy Cakes “N” Pastries
plans to invest in a new branch in 2017 that requires an additional budget of N5,
000,000. Prechy Cakes “N” Pastries will self-finance 20% from its retained earnings
and is looking for a 2-year loan to cover the remaining 80%. In our bid to help our
community we will donate 1% of our net profit to the less privileged
3. AND MISSION
Provide customers high quality
baked goods at a competitive
price, that will create a loyal
customer base.
To give customers the opportunity
to join us in nourishing the earth
through providing customers
freshly baked cupcakes.
To create neighborhood
atmosphere where patrons feel
relaxed and become instant
regulars
To become a unique,
sought-after chain of 10
bakeries in Nigeria by
2020,providing the widest
variety of cakes with
traditional recipes using
local ingredients.
4. Easy accessibility of pastries has
been a serious problem facing our
community for the past year, there
is need for a retail bakery in Aba,
that offers cakes cupcakes and
pastries, by estimations, 70% of
its residents finds it hard to get
baked goods without having to
preorder them. No one provides
specialty cakes for customers who
have diabetes and vegetarians.
5. Our Solutions
Eating baked goods made
easy by providing freshly
baked Cakes, where
customers do not need to
makes orders, but just walk in
and buy cakes
Every one wants to eat
healthy, in that view we offer
organic cakes for customers
who have diabetes and
customers who are
vegetarians
6. The market segmentation is divided into three psychological groups
The Celebrators: Celebrators are people that have reasons to celebrate! Birthdays,
anniversaries, graduation, Valentine's Day, and Christmas are just a few of the many
holidays or special occasions that families and loved ones choose to celebrate with
Prechy Cakes “N” Pastries. This market encompasses a variety of people including the
young, middle aged, and old, and both men and women.
Soccer Moms: Soccer Moms encompass not just moms, but all family members.
Prechy Cakes “N” Pastries serves as a place where families feel both welcome and
comfortable. Kids come to enjoy with after school milk and cookies while Mom treats
herself to a more elegant dessert. Or "Moms" can meet up with friends to enjoy a baked
good and enjoy relaxation in the midst of a busy day.
Walk – in Customers: We have walk-in customers who just want to enjoy a delicacy.
We also have clients celebrating special occasions like birthday, anniversary and
graduation.
7. REVENUE MODEL
We generate
revenue through
the production of
varieties of cakes,
cupcakes.
Examples of cakes
are cheese cake,
carrot cake, red
velvet cake,
chocolate cakes
etc.
We offer all paid
classes, where we
teach people how
to bake and
decorate cakes
and cupcakes.
Whether you have
an idea of how to
bake or not
Revenue will be
generated by
selling pastries
like, Pizzas,
Meat pie, Buns,
Sausage roll,
doughnuts,
small chops,
cookies
In our effort to give back
the community, we plan to
start up “BAKERS CLUB”
in secondary schools
where baking will be taught
for free, to build up our
future generation to
become entrepreneurs, in
return we expect to serve
them with our products
when needed thereby
generating revenue
8. FACTOR ME STRENGHT WEAKNESS COMPETITOR A COMPETITOR B IMPORTANCE
TO CUSTOMER
PRICE
VARIES AS PER
CUSTOMIZATION
OF THE CUSTOMER
AFFORDABLE EXPENSIVE MODERATE 4
SELECTION ORGANIC BEST IN THE MARKET NOT ORGANIC NOT ORGANIC 5
SERVICE
SINCE WE ARE A
STARTUP THE
SELECTION OF
PRODUCTS ARE
LIMITED AND IT IS A
WEAKNESS WHEN
COMPARED TO THE
COMPETITORS
WIDE SELECTION OF
PRODUCTS
WILD SELECTION OF
PRODUCTS
5
EXPERTISE
THE ONLY SERVICE
OFFERED IS A
COMPLIMENTARY
BAKING CLASS
N/A OFFERS VARIETY OF
CLASSES
4
COMPANY
REPUTATION
SINCE WE ARE A
STARTUP WE ARE
YET TO BE
REGISTERED IN THE
MINDS OF A LOT OF
CUSTOMERS
SHORT DURATION OF
THE BUSINESS
LEADS
TO A MODERATE
COMPANY
REPUTATION AND IS
A
WEAKNESS
THEY HAVE A
VERY GOOD
REPUTATION AS
THEY ARE AN
ESTABLISHED
SINCE 2010
THEY HAVE A VERY
GOOD REPUTATION AS
THEY ARE AN
ESTABLISHED SINCE
2009
5
COMPETTIVE ANALYSIS
9. In an era when food is becoming chemistry, Prechy
Cakes “N” Pastries will focus on raw, natural, and
organic and local ingredients to create its product.
Our cakes are homemade, Thus, our products taste
better and are better for you.
Each of our products contains extra detail to set it
apart from the competition. We ensure that our
products appeal to the eye as well as to the
stomach.
We provide cakes for vegans and people with
diabetes theses cakes are highly made from organic
raw materials, e.g organic flour organic sugar etc.
We will create an atmosphere where people can
take cake, pizza and coffee for breakfast or lunch
11. Branding
Advertising/Online
Marketing
ReferralsWord Of Mouth
Getting a customized
packaging for our
products to create a
niche.
We will incorporate the
use of online platforms to
reach more audience,
platforms such as, our
website which will be our
major channel, Facebook
page, instagram account.
We would post pictures of
our cakes in blogs.
We will also use
the traditional way
of marketing to
get our
customers, by
telling them what
we do.
We will provide
quality baked
cake for our
customers to
get referrals
from them.
incentives
We will offer incentives for loyal
customers, who patronize us daily.
Offer party packages with discount
prices to boost word-of-mouth
marketing.
12. Run a baking club in 6 schools by the end
of first year
To achieve 99% customer satisfaction
and develop repeat customer base
To achieve 70% market customers by the
end of 2018
To double sales revenue every two years
To Increase our net-profit by 10%
annually
Raise funds to support our goals through
interested investors
To organize a cake fair by year two
14. Prechy Cakes "N" Pastries]
12-Month Cash Flow
Period Beginning 8-1-15 9-1-15 10-1-15 11-1-15 12-1-15 1-1-16 2-1-16 3-1-16 4-1-16 5-1-16 6-1-16 7-1-16
Period Ending 8-31-15 9-30-15 10-31-15 11-30-15 12-31-15 1-31-16 2-29-16 3-31-16 4-30-16 5-31-16 6-30-16 7-31-16
Cash at Beginning of Period 15,700 25,300 41,900 49,000 59,600 74,300 101,900 135,100 94,100 143,100 205,600 270,950
Cash at End of Period 25,300 41,900 49,000 59,600 74,300 101,900 135,100 94,100 143,100 205,600 270,950 309,450
Operations Aug'15 Sep'15 Oct'15 Nov'15 Dec'15 Jan'16 Feb'16 Mar'16 Apr'16 May'16 Jun'16 Jul'16
Cash receipts from (5,000)
Customers 57,800 75,140 45,100 58,600 76,000 83,600 98,800 101,800 129,300 155,000 170,500 120,000
Other operations
Cash paid for
Inventory purchases (17,000) (22,540) (13,500) (17,000) (22,800) (25,000) (29,600) (30,300) (38,800) (46,500) (51,150) (36,000)
General operating and admin expenses (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000) (11,000)
Wage expenses (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000)
Interest 0 0 0 0 0 0 0 0 0 0 0 0
Income taxes 0 0 0 0 0 0 0 0 0 0 0 0
Net Cash Flow from Operations 24,800 36,600 15,600 25,600 37,200 42,600 53,200 55,500 74,500 92,500 103,350 68,000
Investing Activities
Cash receipts from
Sale of property and equipment 2,800 0 6,500 0 0 0
Collection of principal on loans
Sale of investment securities
Cash paid for
Purchase of property and equipment (8,000) (5,000) 0 0 (7,500) 0 (75,500) (4,000) (7,500) (15,500) (5,500)
Salaries (5,000) (10,000) (10,000) (10,000) (10,000) (10,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000)
Operational activities (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (6,000) (6,500) (7,500) (7,500) (9,000)
Net Cash Flow from Investing Activities (15,200) (20,000) (8,500) (15,000) (22,500) (15,000) (20,000) (96,500) (25,500) (30,000) (38,000) (29,500)
Financing Activities
Cash receipts from
Issuance of stock
Borrowing
Cash paid for
Repurchase of stock (treasury stock) 0
Repayment of loans 0
Dividends 0
Net Cash Flow from Financing Activities 0 0 0 0 0 0 0 0 0 0 0 0
Net Cash Flow 9,600 16,600 7,100 10,600 14,700 27,600 33,200 (41,000) 49,000 62,500 65,350 38,500
Cash flow projection for the past year
15. Capital raise and use of proceeds
We are asking for N4,000,000 for expansion of our business to increase our operations and
reach other clients.
COSTS Estimated
Fixed Costs
Advertising for Opening 150,000
Basic Website 50,000
Brand Development 150,000
Building Down Payment 500,000
Building Improvements/Remodeling 100,000
Business Cards/Stationery 5,000
Business Entity 15,000
Business Licenses/Permits -
Computer Hardware/Software 50,000
Decorating 80,000
Franchise Start Up Fees -
Internet Setup Deposit -
Lease Security Deposit -
Legal/Professional Fees -
Machines & Equipment 1,500,000
Office Furniture/Fixtures 250,000
Operating Cash (Working Capital) 340,000
Point of Sale Hardware/Software -
Prepaid Insurance -
Public Utilities Deposits 40,000
Reserve for Contingencies -
Security System Installation 50,000
Setup, installation and consulting fees 50,000
Signage 20,000
Starting Inventory 250,000
Telephone 25,000
Tools & Supplies 150,000
Travel 25,000
Truck & Vehicle 1,000,000
Other 1 (specify) -
Other 2 (specify) -
Total Fixed Costs 4,800,000
16. Prechy
Cakes
"N"
Pastrie
s
2017 Budget
INCOME Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Sales
Cakes 500000 525000 550000 575000 550000 525000 525000 550000 575000 600000 650000 650000 6775000
CupCakes 150000 100000 100000 125000 125000 150000 150000 175000 200000 250000 300000 300000 2125000
Pastries 750000 750000 750000 750000 800000 750000 750000 875000 1250000 1450000 1500000 2000000 12375000
Total Sales 1400000 1375000 1400000 1450000 1475000 1425000 1425000 1600000 2025000 2300000 2450000 2950000 21275000
Cost of Goods Sold (from details section)
COGS - Cakes 150000 155000 150000 155000 150000 155000 155000 150000 155000 160000 170000 170000 1,875,000
COGS - CupCakes 45000 30000 30000 37500 37500 45000 45000 52500 60000 75000 90000 90000 637,500
COGS - Pastries 300000 300000 300000 300000 320000 300000 300000 350000 500000 580000 600000 800000 4,950,000
Total Cost of Goods Sold 495000 485000 480000 492500 507500 500000 500000 552500 715000 815000 860000 1060000 7462500
Gross Profit 905000 890000 920000 957500 967500 925000 925000 1047500 1310000 1485000 1590000 1890000 13812500
Non-Operating Income
Interest Income -
Rental Income -
Other -
Total Non-Operating Income - - - - - - - - - - - - -
Total INCOME 9.1E+05 8.9E+05 9.2E+05 9.6E+05 9.7E+05 9.3E+05 9.3E+05 1.0E+06 1.3E+06 1.5E+06 1.6E+06 1.9E+06 13,812,500
EXPENSES Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Operating Expenses
Accounting and Legal (20,000) (20,000)
Advertising (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (120,000)
Depreciation (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (180,000)
Dues and Subscriptions (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (120,000)
Insurance (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (360,000)
Interest Expense - - - - - - - - - - - - -
Maintenance and Repairs (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (1,200,000)
Office Supplies (130,900) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (1,780,900)
Payroll Expenses (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (300,000)
Postage - -
Rent (45,000) (45,000) (45,000) (45,000) (45,000) (45,000) (45,000) (45,000) (45,000) (45,000) (45,000) (45,000) (540,000)
Research and Development (100,000) - - - (100,000) - - - (100,000) - - - (300,000)
Salaries and Wages (250,000) (250,000) (250,000) (250,000) (250,000) (250,000) (250,000) (250,000) (250,000) (250,000) (250,000) (250,000) (3,000,000)
Taxes and Licenses (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) (360,000)
Telephone (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (120,000)
Travel (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) (480,000)
Utilities (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) (900,000)
Web Hosting and Domains (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (60,000)
Other - - - - - - - - - - - - -
Total Operating Expenses -895900 -795000 -795000 -795000 -895000 -795000 -795000 -795000 -895000 -795000 -795000 -795000 (9,840,900)
Non-Recurring Expenses
Furniture, Equipment and Software -450000 (450,000)
Gifts Given -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 (600,000)
Other 0 0 0 0 0 0 0 0 0 0 0 0 -
Total Non-Recurring Expenses -500000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 -50000 (1,050,000)
Total EXPENSES -1395900 -845000 -845000 -845000 -945000 -845000 -845000 -845000 -945000 -845000 -845000 -845000 (10,890,900)
Net Income Before Taxes 0 0 0 0 0 0 0 0 0 0 0 0 -
Income Tax Expense 0
NET INCOME 0 0 0 0 0 2,921,600