1. The Lovato Bakery Café
Business Plan

2. GENERAL MANAGER

3. "LOVATO BAKERY CAFÉ"
INTRODUCTION
OWNER AND PARTNERS
Main Founder: Nurul Azura binti Ahmad (General Manager)
Partners:
Nurul Syazwin binti Zakaria (Administration Manager)
Nor Siti Aisyah Binti Shoeb (Marketing Manager)
Nur Shamira Binti Abdul Manaf (Operation Manager)
Mardhiah Binti Muhamad Sham (Financial Manager)

4. INTRODUCTION
INTRODUCTION
INTRODUCTION
Nature of Business: Food Business
Form of Business: Partnership
Main Activity: Produce and Selling Cheese Tart
Flavor: Strawberry, Blueberry, Orange, Kiwi, Chocolate
Date of Establish : 20th March 2013
Business Address: LOVATO BAKERY CAFÉ No.4, Ground
Floor, Lorong Kolam Air Lama 1, 68000 Ampang, Selangor
Darul Ehsan
Contact Number: 03-5553433
E-mail: lovatobakerycafe@yahoo.com
Facebook: http://www.facebook.com/lovatobakerycafe

5. HISTORY
ABOUT THE COMPANY
At the beginning, we run a virtual business and we decided to
open a franchise because we got a good response from our
existing customers. At the time, we run the business by
ourself and we also hire 1 worker under Marketing Manager
and 9 workers under Operating Manager.
Our franchise provide:
Air conditioner
Electricity
Free Wi-Fi

6. LOCATION
No.4, Ground Floor, Lorong Kolam Air Lama 1, 68000
Ampang, Selangor Darul Ehsan

7. ADMINISTRATIVE PLAN

8. INTRODUCTION
Lovato bakery café is a company selling only pastry good
which specialize in tarts. The reason we name our
company “Lovato bakery café” is because we operate in
a small shop located near office, residence and we sell
“mini” pastries. Everything we sell is linked to the word
“mini”.

9. Vision
To produce quality deserts to a consistently high standard.
Mission
1) We provide the best possible service to our customers that
meets or exceed their expectation.
2) We continually strive to meet higher standards inour
operations for the benefit of our staff and customers.
3) We also maintain a friendly, fair, and creative work
environment, which respects diversity, new ideas, and hard work.
Objective
1) To offer our customer the fresh desserts.
2) Achieve 99% customer satisfaction and develop repeat
3) customer base.
4) Create stable customers.
5) Increase dessert production to meet the required demand.

10. Schedule and Task Responsibilities
General Manager
The general manager’s responsibilities involve
supervision, public relations, marketing,
profitability and sales, service,
reporting,
capital requirements, and other
duties as
assigned by the board of
directors. The general
manager will maintain a
positive attitude that
promotes team
work within the cooperative and
a favorable image
of the cooperative.
Marketing Manager
Defined as the activities that are carried out
systematically to encourage and increase sale
of products/services as long as the activities
are in line with religious and ethical practices.
It is also maintaining customer, monitoring and
analyzing market trends and studying

11. Financial Manager
Financial managers control a organization's
assets, including its investments and cash, to
maximize their efficient use.
Operation Manager
The responsibilities of an operations Manager
involves the process of planning, designing, and
operating production systems and subsystems.
Administrative Manager
The administration of any business forms an
important base from which the business
routines are maintained and controlled.

12. ADMIN BUDGET
Fixed assets
Expenses
(RM)
Monthly
Expenses
(RM)
Other Expenses
(RM)
Furniture and
Fittings
4 000
-
-
Salaries
-
8 050
-
Rental
-
3 000
-
Rental Deposit
-
-
9 000
Utilities Deposit
-
-
1 000
Petrol
-
-
300
Business
registration and
license
-
-
Total
4 000
3 000
11 050
13 300

13. MARKETING PLANNING

14. Lovato Bakery Cafe twist is its
authenticity. By offering light and
sweet tastes of cheese tart with
different and variety flavor that is
prepared from premium ingredients
that contain real cheese benefits, it
is guaranteed to satisfy the most
discerning taste buds.

15. PRODUCT DESCRIPTION
Our company provide product such as dessert that is
mainly made up with cheese tart. This cheese tart
was combined with fruit topping to ensure that it
have its own specialty. This type of product are
already exists. So we make up a new ideas from the
existing product in the industry and came out with
our own product line and branding (LOVATO BAKERY
CAFE). Mainly, we follow up the hot trend and
lifestyles of peoples. Nowadays, most people want
something new and we are ready to improve and
develop more products to ensure that we manage to
fulfill our customer’s needs.

16. Product Features
• We offer varieties of flavor for cheese tart and
varieties of toppings. We also provide 5 type of
foods.
• TOPPING
• Chocolate
• Blueberries
• Strawberry
• Orange
• Kiwi

17. Targeted Market
• In Cheras there is 587,550 peoples living here
covering an area 59.31 km2. Gender of male is 82,582
peoples and female is 80,968 peoples.
• We have selected these two places because it has
high population of residency and they are places
where people are ready to spent money and shopped.
We have specifically chosen these strategic locations
for our product to be promoted and sell.

18. Geographic Segmentation
• Due to this segment, our company set up this
business on place with high populations which are the
centre of AMPANG cities where many people around
nation gather for many purpose. People who live in the
cities are more aware and educated about tastes,
therefore this place is strategic to do the business
along with the company vision. We target to getter
customer from Ampang around 20,036 peoples.

19. Demographic Segmentation
•
Age and Life-Cycle Stage
Our products are suitable for all age of
consumer which include from kids until
the elderly.
We target customer from
age 13-60 years old.
And also child
among 6-12 years old

20. Gender Segmentation
•
Since our products are favourite and healthy
food, we provide to all gender. Because our product is
suitable for all gender. Its provide suitable design
and taste of food for men and female. We had survey
that around Ampang we have 20,036 customers.
Gender
Population
Man
10008
Female
10028

21. Income Segmentation
•
Since our company located in town, so range of
income is more from middle-income group to highincome group. Price of our product is not so
expensive. So customer from lower-income group also
can purchase our product.

22. Psychographic Segmentation
•
Our products are basically for consumers which
consume healthy lifestyle and educated social
life. Those who love cheeses, fruits and sweets
and have high awareness toward health will be our
main target.

23. Market Size
• Market size refers to the total potential purchase of
the market. This includes purchase a competitor’s
product within the same market in order to identifies
their quality and price of their products.
BI Costumers
SALES/ANNUALLY (RM)
L.
1
Teenagers
600,000
2
Children
150,000
3
Adult and Older
350,000
TOTAL
1100,000

25. COMPETITION
• After viewing the market, we find that we have three
competitor. The competitor is Nabe Bakery Café, Meor
Bakery and Just Lildaisy Bakery.
• Nabe Bakery Café :
This cafe in Ampang was bustling, filled with mostly
Korean patrons. We found out that Nabe Bakery Cafe
is manned by a Korean husband and wife team, and that
they use mainly ingredients imported from South Korea
for their cakes and breads. This company also offered
international food and trended now. But this company is
not satisfied our Asian customer which like to taste
something more unique but simple like cheese tart.

26. •
Meor Bakery :
Meor Bakery has a unique position within the
baked goods industry. They offered all type of
bread, muffin. Their company prefer order for the
ceremony. But their company did not have enough
qualities in making tasty cheese tart.
•Just Lildaisy :
This bakery good in making cake and bread. Their
more refer for event like party. This bakery not
provide cheese tart for the customer.

27. Market Share
market share before Lovato entering the market
BIL.
COMPANY
MARKET
SALES/ANNUALLY
SHARE
(RM)
1
Nabe Bakery Cafe
36%
396,000
2
Meor Bakery
32%
352,000
3
Just Lildaisy
32%
352,000
TOTAL
100%
1100,000

29. Market share after enter the market :

31. Sales Forecast
Sales Forecast For LOVATO BAKERY CAFE Year 2013
Month
Sales collection
January
RM90,000
February
RM85,000
March
RM92,000
April
RM91,000
May
RM87,000
June
RM95,000
July
RM89,000
August
RM95,000
September
RM95,000
October
RM93,000
November
RM90,000
December
RM98,000
Total
RM1100,000

32. Marketing Strategies

33. Product
• LOVATO attributes are its ability to meet or exceed customer
expectations consistently, its speed in responding to customers
demand, and its anticipation of new customers. LOVATO want to
create some product that can create value to the customers and
give them satisfaction. LOVATO want make cheesetart that will
be named in the town. LOVATO trademark is “cheesetart best in
the town ever”

34. Packaging
• Some design and packaging that so attractive for
customer. Suitable for teatime, celebration, gift and
etc.
• Ours packaging is compatibility with the product,
processing and storage conditions
• product protection from chemical, physical and
biological sources of deterioration
• suitability for the intended final use of the product
(microwavable)
• ability to withstand the stresses of distribution
(won't degrade or break)

36. Labelling
• Nutrition labelling refers to the standardized presentation of
the nutrient content of a food. Found on food labels under the
heading, "Nutrition Information", nutrition labeling includes
serving size in household units and nutrients per serving. Usually
energy (calories) protein, fat and carbohydrates are listed.

37. Product Labelling

38. Quality
• Ours product is very qualified because of the
ingredients, mixing, attractiveness and tastes. We
had make cheese tart with quality and nutrition
ingredient. And we mixing it with favorite flavors. We
also make it look attractive and make it tastes that
everyone will love it.

39. Pricing
• LOVATO provide high quality speciality cheese tart
product that customized to its customer needs. The
value of product is reflected in its premium price
PRICE = COST PER UNIT + MARK-UP
=RM0.80 + ( 25% × RM0.80)
=RM0.80 + RM0.20
=RM1.00

40. DISTRIBUTION STRATEGY
• DIRECT TO CUSTOMER
LOVATO provide personal selling to the customers. Where
customer can directly deals with LOVATO to make purchasing.
Customer can make order via email, online and direct to counter
at LOVATO BAKERY CAFÉ, No. 4, Ground Floor, Lorong Kolam
Air Lama 1, 68000 Ampang. Customer also can make online order
in LOVATO facebook inbox, or emailing to
lovatobakery@yahoo.com
• LOVATO
CUSTOMERS

41. Promotion

42. Signboard

43. MARKETING BUDGET FOR LOVATO BAKERY CAFÉ YEAR 2013
ITEMS
TOTAL UNIT
PRICE PER TOTAL
UNIT (RM)
BROCHURES
3,000
COST
1.00
RM1.00
×
3,000 units
= RM 3,000
SIGNBOARD
2
300
(RM300 x 2)
= RM 600
BUSINESS CARD
2,500
0.20
RM 0.20 ×
2,500 units
= RM 500
ADVERTISEMENT
(MEDIA
MASSA-
NEWSPAPER)
130
RM 200 × 12
months
= RM 2400
(5CM × 5CM = RM
200)
TOTAL COST
RM6500

44. OPERATION MANAGEMENT

45. INTRODUCTION
• Objective of operation department is to provide
better quality of product, punctual to due date and
will make the customers satisfied towards our
product
• Main focus in operation management is to provide
diverse of healthy flavour in mini cheese tarts that
we produced and supply in high quality to fulfil our
customer needs and wants.

46. Process of Flow Chart
Measure flour, egg, butter, sugar, cream cheese, vanilla essence, etc.
Mix and blend ingredients
Ensure that the dough is of the right quality
The dough is formed into required shape
◦
The crust are baked at 90-110◦C for 20-25 minutes
Crust are taken out from the oven to cool
Crust of poor quality are separated/rejected

47. Crust are filled with fruits and cream cheese that has been prepared
earlier
◦
Tarts are baked at 90◦C for another 15 minutes
Tarts are taken out and packed into packages
The packages are inspected before being placed into boxes
The boxes are placed in the store before being distributed to the market

48. Material Requirement
List of materials required
INGREDIENT
Flour
Eggs
Caster Sugar
Icing Sugar
Vanilla Extract
Cream Cheese
Cocoa Powder
Butter
AMOUNT REQUIRED FOR 60
TARTS
290 gm
2 units
50 gm
50 gm
2 ml
250 gm
177 ml
170 gm
Bill of materials per unit
INGREDIENT
Flour
Eggs
Caster Sugar
Icing Sugar
Vanilla Extract
Cream Cheese
Cocoa Powder
Butter
AMOUNT REQUIRED/TARTS
5 gm
0.03 of an egg
0.83 gm
0.83 gm
0.03 ml
4.2 gm
2.95 ml
2.83 gm

49. Quantity of raw materials required
INGREDIENT
Flour
Eggs
Caster Sugar
Icing Sugar
Vanilla Extract
Cream Cheese
Cocoa Powder
Butter
AMOUNT REQUIRED/month
5 gm x 50,000 = 250,000 gm
0.03 of an egg x 50,000 = 1,500 gm
0.83 gm x 50,000 = 41,500 gm
0.83 gm x 50,000 = 41,500 gm
0.03 ml x 50,000 = 1,500 ml
4.2 gm x 50,000 = 210,000 gm
2.95 ml x 50,000 = 147,500 ml
2.83 gm x 50,000 = 141,500 gm

50. Manpower
Requirement Planning
Remuneration
EPF
Socso
per Month
(13%)
(2%)
Permanent
RM 900
RM 117
RM 18
6
Permanent
RM 900
RM 117
RM 18
1
Permanent
RM 950
RM 124
RM 19
Position
No.
Job Status
Bakery Clerks
2
Food
Preparation
Worker
Supervisor
Total
RM 1,530
(RM 765 x 2)
RM 4,590
(765 x 6)
RM 807

51. Operations Layout Plan

52. Location

53. Operation Budget
Particular
Machine
requirement
Working capital
Fixed
Assets
RM 3,596
Raw materials
Carriage inward
and Duty
Salaries, EPF
and SOCSO
Operation
overhead
Pre-operation
and other
expenditure
Other
expenditure
Deposit (rent,
utilities, etc)
Business
Registration and
Licences
Insurance and
Road tax for
motor vehicle
Other preoperations
expenditure
Total
Monthly
Expenditure
Others
Total
RM 3,596
RM 545.40
RM 7,734
RM 7,734
RM 9,479.40
RM 9,479.40
RM1,200
RM 3,596
RM 545.40
RM 1,200
RM 19,058.80
RM 22,654.80

54. FINANCIAL PLAN

55. Introduction of financial plan
• A financial plan incorporation all financial data
derived from the operation budgets in example the
marketing, production or operation and
administration.
• Based on this financial data, projections are then
prepared via several pro forma statements, namely
cash flow, income (profit and loss) statement and
balance sheet.
• The importance of financial plan is
– To determine the size of investment
– To ensure that the initial capital is sufficient
– To identify and propose the relevant sources of
finance.

56. The process of developing a
financial plan







Step 1 : Gather all financial input
Step 2 : Prepare the project implementation
Step 3 : Prepare the sources of finance schedule
Step 4 : Prepare the pro forma cash flow statement
Step 5 : Prepare the pro forma income statement
Step 6 : Prepare the pro forma balance sheet
Step 7 : Perform financial analysis based on the above
pro forma statements

57. •
•
Project implementation cost
The table shows that project implementation cost for the production of
cheese tart. The fixed cost assets own by our company are equipment, office
furniture, and machine.
Total working capitals that cover administrative, marketing and operational
budget are RM 37,460. Cost for pre-operations and other expenditure are RM
5276.
Requirements
Cost
F
ixed Assets
Land & Building
Office Equipm ent
Signboard
Machine
W orking Capital
1
months
Adm inis trative
Marketing
Operations
Pre-Operations & Other Expenditure
Contingencies
5%
TOTAL
30,000
600
3,596
22,275
6,935
8,280
25,679
4,868
102,234

58. Source of Financing
The table show the source of finance for LOVATO BAKERY CAFÉ. The source of finance
come from a loan, hire-purchase and own contribution by each members of the company.
Requirements
Cost
Loan
Fixed Assets
HirePurchase
Own Contribution
Cash
Land & Building
Office Equipment
30,000
30,000
Signboard
600
600
Machine
3,596
3,596
Working
1
months
Capital
Administrative
Marketing
Operations
Pre-Operations & Other
Expenditure
Contingencies
5%
22,275
6,935
8,280
25,679
20,403
22,275
6,935
8,280
5,276
4,868
50
4,818
TOTAL
102,234
20,454
81,780
Existing F.
Assets

59. Cash flow pro-Forma

60. MONTH
CASH INFLOW
Capital (Cash)
Loan
Cash Sales
Collection of Accounts
Receivable
TOTAL CASH INFLOW
PreOperations
2
3
4
5
6
7
8
9
10
11
TOTAL YR
1
12
81,780
20,454
YEAR 2
YEAR 3
1,210,000
1,265,000
90,000
91,000
87,000
95,000
89,000
95,000
95,000
93,000
90,000
98,000
90,000
85,000
92,000
91,000
87,000
95,000
89,000
95,000
95,000
93,000
90,000
98,000
1,202,234
1,210,000
1,265,000
16,500
3,000
300
16,500
3,000
300
16,500
3,000
300
16,500
3,000
300
16,500
3,000
300
16,500
3,000
300
16,500
3,000
300
16,500
3,000
300
16,500
3,000
300
16,500
3,000
300
16,500
3,000
300
198,000
36,000
3,600
217,800
39,600
3,960
250,470
45,540
4,554
2,475
2,475
2,475
2,475
2,475
2,475
2,475
2,475
2,475
2,475
2,475
29,700
32,670
37,571
5,900
900
135
5,900
900
135
5,900
900
135
5,900
900
135
5,900
900
135
5,900
900
135
5,900
900
135
5,900
900
135
5,900
900
135
5,900
900
135
5,900
900
135
5,900
900
135
70,800
10,800
1,620
77,880
11,880
1,782
89,562
13,662
2,049
546
Operations Expenditure
Cash Purchase
Payment of Account Payable
Carriage Inward & Duty
Salaries, EPF & SOCSO
92,000
2,475
Marketing Expenditure
Promotion
Salary
EPF&SOCSO
85,000
81,780
20,454
1,100,000
16,500
3,000
300
102,234
CASH OUTFLOW
Administrative Expenditure
Salary
Rental
Petrol
Vehicle Budget
SOCSO &EPF
Other Expenditure
Pre-Operations
Deposit (rent, utilities, etc.)
Business Registration &
Licences
Insurance & Road Tax for
Motor Vehicle
Other Pre-Operations
Expenditure
Fixed Assets
Purchase of Fixed Assets Land & Building
Purchase of Fixed Assets Others
Hire-Purchase Down
Payment
Hire-Purchase Repayment:
Principal
Interest
Loan Repayment:
Principal
Interest
Tax Payable
TOTAL CASH OUTFLOW
CASH SURPLUS (DEFICIT)
BEGINNING CASH
BALANCE
1
546
546
546
546
546
546
546
546
546
546
6,006
6,552
7,207
7,734
7,734
7,734
7,734
7,734
7,734
7,734
7,734
7,734
7,734
7,734
92,808
102,089
117,402
13,479
14,827
17,051
4,091
818
0
513,949
696,051
4,091
614
0
589,773
675,227
687,911
1,383,962
7,734
13,479
11,200
11,200
1,000
1,000
34,196
34,196
341
85
46,396
55,838
341
85
341
85
341
85
341
85
341
85
341
85
341
85
341
85
341
85
341
85
50,850
39,150
37,916
47,084
37,916
54,084
37,916
53,084
37,916
49,084
37,916
57,084
37,916
51,084
37,916
57,084
37,916
57,084
37,916
55,084
37,916
52,084
341
85
0
37,916
60,084
55,838
94,988
142,072
196,156
249,240
298,324
355,408
406,491
463,575
520,659
575,743
627,827
4,091
1,023
0
514,323
687,911

61. Profit and Loss ProForma
Year 1
Sales
Year 2
Year 3
1,100,000
1,210,000
1,265,000
20,000
20,000
Less: Cost of Sales
Opening Stock of Finished Goods
Production Cost
99,549
110,045
125,676
Less: Ending Stock of Finished Goods
20,000
20,000
40,000
0
0
0
79,549
110,045
105,676
1,020,451
1,099,955
1,159,324
Administrative Expenditure
267,300
294,030
338,135
Marketing Expenditure
83,220
91,542
105,273
Other Expenditure
13,479
14,827
17,051
Business Registration & Licences
1,000
Gross Profit
Less: Expenditure
Insurance & Road Tax for Motor Vehicle
Other Pre-Operations Expenditure
Interest on Hire-Purchase
Interest on Loan
1,023
818
614
Depreciation of Fixed Assets
6,120
6,120
6,120
Total Expenditure
372,142
407,337
467,193
Net Profit Before Tax
648,309
692,617
692,131
Tax
0
0
0
Net Profit After Tax
648,309
692,617
692,131
Accumulated Net Profit
648,309
1,340,926
2,033,057

62. Balance Sheet Pro-Forma
Year 1
Year 2
Year 3
Land & Building
Office Equipment
24,000
18,000
12,000
Signboard
480
360
240
Machine
2,877
2,158
1,438
Other Assets
Deposit
11,200
11,200
11,200
38,557
31,718
24,878
530
20,000
500
20,000
480
40,000
687,911
708,441
1,383,962
1,404,462
2,059,189
2,099,669
758,198
1,447,379
2,135,747
81,780
648,309
730,089
81,780
1,340,926
1,422,706
81,780
2,033,057
2,114,837
16,363
12,272
8,181
16,363
12,272
8,181
546
746,998
1,201
1,436,179
1,529
2,124,547
ASSETS
Non-Current Assets (Book Value)
Current Assets
Stock of Raw Materials
Stock of Finished Goods
Accounts Receivable
Cash Balance
TOTAL ASSETS
Owners' Equity
Capital
Accumulated Profit
Long-Term Liabilities
Loan Balance
Hire-Purchase Balance
Current Liabilities
Accounts Payable
TOTAL EQUITY & LIABILITIES

63. Questions/Comments ?