Business Plan

January 2021

ARC’S BAKERY
AND
CAFÉ SHOP
Proponents:
Angelo Gaba
Reymund Guillen
Rizelle Gallo
Clarissa Galdones
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 Table of Contents

Executive summary
- Key to success…………………. 3
- Organizational structure
Introduction………………………………………….. 4
About the Company…………………………………...5
Market…………………………………………………6
Marketing……………………………………………...6
Product………………………………………………...7
Productions……………………………………………7
Risks…………………………………………………..8
Finances……………………………………………….8

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I. EXECUTIVE SUMMARY

KEY TO SUCCESS

- Create a unique, innovative, entertaining menu that will differentiate us from the rest of the

competition.

- Sell the products that are of the highest quality, as well as keeping the customers happy with all

of our product categories from food to store merchandising.

- Provide 100% satisfaction to our customers and maintaining the level of excellent services

among other customers, and

- Promote good values of company culture and business philosophy.

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 Organizational chart

The business will be operated and maintain by (4) administrative officers, Headed by the General

Manager, Marketing Manager, Financial Manager, and Production Manager. The proponents will hire head

baker, bakers, cashier, barista and delivery boy.

Reymund Guillen
General Manager

Angelo S. Gaba Rizelle Z. Gallo Clarissa G. Garino

Production Manager Financial Manager Marketing Manager

Delivery Boy Head Baker Barista Cashier 1 Cashier 2

Jessa Servilla

Baker 1

Baker 2

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Introduction:

ARC’s Bakery and Café shop is a start-up coffee and bakery retail establishment located nearly at

District 2, Soliven, Isabela. This shop is expected to provide broad variety of coffee and unique pastry products

that will catch the interests of a regular loyal customer. Moreover, the said shop does not only for pastry

products but also providing a café services with twists since it is nearly from the Soliven TODA where tricycle

drivers are expected to go for coffee. This shop aims to provide satisfaction in every customer and to the entire

community. Moreover, the community will have the

happiness for giving them such opportunity to

experience a unique pastry product that they never

been encountered. The shop will, therefore, include

services that will give an opportunity to the entire

community.

There are also several small businesses on

this area such as sari-sari store, sidewalk vendors,

grocery shops, computer shops, etc. that need pastry

products as their selling products. ARC’s bakery and

Café shop is expected to supply these businesses.

ARC’s Bakery and Café shop main products

are the Banana muffin and Coffee. Banana is the

main ingredient of the pastry products adopted since

Soliven is known to have its supply of different Banana and therefore capable in supplying the said business.

Besides of giving an opportunity to the community, ARC’s Bakery and Café shop will also provide online

business introducing their main product. Café shop is also another business extension of this shop and perfect

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partner to the pastry products. The deliciousness of their bread and coffee aren’t only healthy for you, they’re

also healthy for mother earth.

II. THE COMPANY

ARC’S BAKERY AND CAFÉ SHOP

ARC’s Bakery and Café shop will be created to serve the entire community by exploiting the need for a

good bread bakery and aromatic coffee. It will offer a variety of high-quality bread products with the main

ingredients of banana adopted from the main product of Benito Soliven, San Mariano. The company will see to

it that the products they will offer will be markable to the people of soliven and other consumers outside the

area due to its baked fresh in its storefront bakery.

The company’s will immediate goals are to achieve start up by the month when pandemic end up. It will

start to capitalize with the business partners, Reymund Guillen, Angelo Gaba, Rizelle and Clarissa, as bakers

and at the same time a service crews in the said shop. The company is expecting a high gross in its first year.

Even it is still encountering the pandemic or epidemic it still has customers to buy and love the products and to

be popular from its high quality. Since Filipino loves bread it is an advantage of the company to be more

popular by their pastry products especially to its main product, the banana muffins. Providing the suitable taste

of the community will also an advantage of the company to be more popular to the customers making sure to be

the most remarkable bakery shop in the entire San Mariano and outside this area.

ARC’s Bakery and Café shop created by the 4 professional teachers namely Angelo Gaba, Reymund C.

Guillen, Rizelle Gallo, and Clarissa Galdones. They inspired to have a partnership because they want to apply
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their learnings in baking and to help the community in providing their needs everyday help them to save money

because of its low-price products. ARC was based on the first letter of their name. the word arc has been

defining as high quality/Big, strong and saving just like the Noah’s Arc where became the Big, strong and it

saves a family from the most unexpected time. The company have also the same philosophy that not only the

bread can feed the people from hungriness but also by means of faith, love, and hope.

Services will also be possible to offer by the company to help the community. They will employ others

as stewards in the shop.

III. MARKET

The ARC’S BAKERY AND CAFÉ SHOP in Soliven, San Mariano will experience rapid growth. The

good climate in San Mariano stimulate consumption of different varieties of cakes and hot beverages

throughout the year.

The ARC’S BAKERY AND CAFÉ wants to establish a large regular customer base and will therefore

concentrate its business and marketing on local residents, which will be the dominant target market. This will

establish a healthy, consistent revenue base to ensure stability of the business.

Banana muffin cakes will be capable of meeting the needs of consumers requesting specific

medifications to satisfy particular health and diet needs, including banana fruits, natural sweetened, heart of a

banana and vegan. The location of Arc’s Bakery will be an additional aspect of the company, allowing it to be

accessible to a large market

IV. MARKETING

Banana muffin cakes are the key to Arc’s Bakery and Café shop and product quality is essential for the

success of the business. In order to ensure product quality, this bakery will emphasize cleanliness and

sanitation, use quality ingredients, and will always be sure all banana muffin cakes are properly baked.
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Innovations are also an important factor in the growth and success of the company. This bakery will start by

offering a variety of options from simple flavors like banana fruit and heart of a banana. Different kinds of

frosting and numerous decorations styles for all types of occasions. However, to grow a business it is important

for arc’s bakery to innovate their product. To do so, the baking will continually work to develop and test new

recipes for new flavors of muffin cakes and Icing. Doing so will allow the company to have more variety to

offer and possibly attract new customers. Arc’s Bakery and café shop will not only grow as a business, but also

increase sales.

V. PRODUCTS

The Arc’s Bakery and Café shop will offer Banana muffin and coffee as the main product. The

shop will surely stand out due to its uniqueness and outstanding quality products. The baker will create

delicious muffins and other bread products with the use of high-quality ingredients in a very minimal price.

The main ingredient for the muffin which is banana will be purchase from the different dealers of

the municipality. The shop will not only sell different breads but also coffee for a perfect combination. When

the business is already established, the manager and other staffs will continue to innovate and develop new

products that customers will surely patrionize.

VI. PRODUCTION

Production of saleable breads and cakes will begin on January 1 st, 2021. Raw ingredients will be

ordered from the dealer and also, they will be supplied by the community. Ingredients will be stored in a dry

storage area to ensure the freshness.

The baker will be expected to bake everyday with the use of oven. The shop will offer hot breads

by 7:00 AM until 10:00 AM.

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 The shop will open at 8:00 am and close at 6 pm, Monday to Sunday. Employees will work at the

counter and assist store maintenance while the baker is baking. There is also a coffee machine that will

encourage customers.

VII. RISKS

The major risk to any ARC's Bakery and Cafe shop area retail operation is the seasonality of the

customer base. ARC's Bakery and Cafe shop will address this problem by opening at the height of the lucrative

summer season. This will give the company a good 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 for Stores

will bring in cash during the slow fall season. Unless strong demand shows a need, labor will be eliminated in

the slower seasons and advertising will be minimal. Depending on available cash after Christmas or any

occasions, ARC's Bakery and Cafe shop will contemplate adding other product to serve local shoppers and

employees.

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VIII. FINANCE

ARC's Bakery and Cafe shop have a budget of 2,000,000 in cash for the start-up period. This budget will be

utilize for a year.

ARC'S BAKERY AND CAFE SHOP

Projected Income Statement

For the year ending on the 1st day of January 2022:

REVENUES:

Gross Sales: 5000,000.00

Less Cost of Goods Sold: (2,000,000.00)

Gross Profit: 3000,000.00

EXPENSES:

Site Modification & Construction P 97,000.00

Equipment P 70,000.00
Materials P 20,000.00
Advertisement P 20,000.00
General Supplies P 50,000.00
Utilities P 20,000.00
Taxes & License P 20,000.00
Repair & Maintenance P 40,000.00
Insurance P 15,000.00
Salaries & Benefits P 1,200,000.00
Research & Development P 20,000.00
Bookkeeping P 15,000.00
Bank Fees P 20,000.00
Interest P 5,000.00
Legal & Professional Services P 40,000.00

TOTAL EXPENSES: P 1,652,000.00

NET INCOME (Before Tax): P 348,000.00

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Income Statement Analysis

This is a projected income statement for the first year of operation of ARC's Bakery and Cafe shop. The

projected worth of products to be sold for the year is 2 million pesos. The business only has 2 million pesos as

capital. How could this be possible? In order to reach 2 million worth of products, the bakery and café shop will

sell 167 thousand worth of products per month.

The estimated total sale for the year is 5 Million pesos. This is 2 million plus more or less 20% mark-up.

This goal will be realized if the business will have an average of 20k sales per day or (+,-) 170 thousand pesos

per month excluding holidays for the entire year. This projection is set high to motivate the enterprise to reach a

higher monthly quota. All expenses are also projected and solved based on estimates. There are some expenses

listed on the projection that are to be used as contingencies like miscellaneous expenses, entertainment, repair

and maintenance etc. these expenses are set but may not be used and can be reallocated to some other expenses

if necessary.

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