BUSINESS PLAN FOR HULU BAKERY IN MENKORER,

DEBREMARKOS TOWN PERSONAL LIMITED CAMPANY

DEBREMARKOS UNIVERSITY
SCHOOL OF MEDICINE AN HEALTH SCIENCE COOLEGE
DEPERTMENT OF MEDICAL LABORATORY SCIENCES
Submitted to –gubaye
Febrewary .2012 E.c

GROUP MEMBUR ID NUMBER

1. ADDIS ABATE………………………………………………………HSR/1499/09
2. DEGNET MELESSE…………………………………………………HSR/1507/09
3. KIDIST GETNET……………………………………………………..HSR/1510/09
4. MESERET MOLLA…………………………………………………...HSR/1519/09
5. YIBELU TILAHUN……………………………………………………HSR/1525/09

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Contents
1. Executive Summary.................................................................................................................................4

2. Introduction.............................................................................................................................................5

2.1. The business.....................................................................................................................................5

2.2 Products and Services........................................................................................................................5

2.3 The Market........................................................................................................................................5

2.4. Economic and Social Benefit..........................................................................................................5

2.5 Financial Considerations....................................................................................................................6

3. BUSSINESS PROFIL............................................................................................................................6

3.1 Objectives..........................................................................................................................................6

3.2. Business Mission..............................................................................................................................6

3.3. Business vision................................................................................................................................7

3.4. Keys to Success...............................................................................................................................7

3.5. business ownership..........................................................................................................................7

3.6. Business History...............................................................................................................................8

4. SITUATION ANALYSIS.......................................................................................................................8

4.1 . SWOT Analysis...............................................................................................................................8

5. Production plan....................................................................................................................................9

6. Market plane and Analysis......................................................................................................................9

6.1. Market Segmentation......................................................................................................................10

6.2. Target market segmentation............................................................................................................11

6.3. Competition and Buying Patterns...................................................................................................11

6.4. Strategy and Implementation.........................................................................................................11

7. Human resources Business and its Management plan............................................................................11

7.1. Personnel Plan..............................................................................................................................12

8. Financial analysis..................................................................................................................................13

8.1 Financial Plan..................................................................................................................................13

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 8.2 Sale forecast.....................................................................................................................................15

APPENDIX...............................................................................................................................................16

Table 1 The partnership owners and their roles...........................................................................................5

Table 2: Fixed investment cost estimation.................................................................................................11
Table 3 tool and equipment.......................................................................................................................12

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1.Introductory page

Name of the company; hulu bekery

Address: Debre Markos, around menkorer

Name of entrepreneurs : members of the staff

Tel. 0948937977 or 0919992437

mail: [email protected]

Website: www.hulu bakery.com

Types of business: bakery

Amount of finance: 383,000

Sources of finance ; partners and loans

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hulu Bakery Business Plan

1. Executive summary

We are hulu an innovative retail bakery in Debre markos aims to offer high quality bakery
products at a competitive price to meet the demand of the middle- to higher-income households,
school, café and restaurant, and others. We will sell freshly baked breads and desserts made from
the highest grade of ingredients, filling the Debre markos area’s need for a classic bakery what
will make our business stand out in the baked goods industry is our drive to let the customers be
inspired through their own designed creations. In our store, located conveniently on the bypass,
we will have specified stations with our fun and easy-to-use design tablets for the customers to
fashion their own cakes or cupcakes, which then our bakers will create for them.

hulu values having great customer service, keeping up-to-date with technology to remain as
competitive and customer friendly as possible, and contributing to the local community through
non-profit organizations, like clinic, education, through donating our two day-old baked goods
among other things.
Our target market will be the higher end of middle class workers and above, however effort will
be made to give lower incomes opportunities to buy our products, such as through our day-old
bread section. Our prices will tend to be fair than those of our local competitors.
hulu will be a general liability partnership between 7 students of management, who will also act
as operators. All partners will share equal ownership and income sharing of the company.
.

We will require 383,000 for start-up cost, and from which 80,000 will be placed fully on bank
long term loan, but we predict that the debt will be paid after two years. In the beginning we
will only need 3 minimum-wage workers with 2 professionals aside from the all of us

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 participating in the business to run the bakery but more may be added as finances allow it and
demand requires it.

2. Introduction

hulu will be run as a partnership between 7 friends. This Business plan is prepared for the
purpose of providing an understanding of bakery business. A brief analysis on baking is thus
conducted to identify the current market trend and to share the shortage and unsatisfied market
in Debre markos. hulu is a start-up bakery producer and retail establishment located in Amhara
region debre markos town. hulu expects to catch the interest of a regular loyal customer base
with its broad variety of bread products. The company plans to build a strong market position in
the town, aims to offer its products at a competitive price to meet the demand of the middle-to
higher-income local market and government and private organizations.

2.1. The business

hulu is a limited liability partnership engaged in the bakery business. It is equally owned by 7
partners. The partnership intends to hire two professional full-time bread bakers to handle
customer service and day to day operations.

2.2 Products and Services

hulu offers a broad range of bread products, all from high quality wheat floors. It will provide
food to all of its customers by providing each customer bread products made to suit the
customer. The bakery provides freshly prepared bakery products at all times during business
operations. It also plans to produce its own floor from locally and imported wheat in the future.

2.3 The Market

Bakery business in Ethiopia recently experienced rapid growth as the living standard and way
of the people is changed

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2.4. Economics and Social Benefit

The business has the following socio economic benefits:

 Create job opportunities

 Balance regional development
 Formation of capital
 It increases the government revenue in the form of taxes
 To provide a sustainable firm steady income for the business owner

2.5 Financial Considerations

hulu expects to raise Br 300,000 totally in its own capital, and it anticipates sales of about
Br.496,000 in the first year, Br.505,920 in the second year, Br.526,257 in the third year, Br.
557,726 in the fourth, and Br. 602,344 in the fifth year of the plan. hulu should break even by
the first of its operation as it steadily increases its sales. The businesses profit and loss
statement indicates that the business is profitable through its business life.net income for five
period are expected to be approximately Br.-3,690 in year 1, Br. 8,966 by year 2, and Br.
22,344 by year 3 ,Br 15,810 by year 4and Br. 21,120 in the fifth year of its operation. The
company does not anticipate any cash flow problem.

3. BUSSINESS PROFIL

3.1 Objectives

The overall objective of the business is to offer its products at a competitive price to meet the
demand of the middle-to higher-income local market and government and private organizations
and also lower income residents.

 Provides quality of product to the customers

 Attract the customer or expand with in short period of time

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3.2. Business Mission

hulu aims to offer high quality bakery products at a competitive price to meet the demand of the
lower- to higher-income households, school, café and restaurant.

3.3. Business vision

In the future we intend to adapt through marketing and technology to sustain our modern edge to
be as customer-friendly as possible and provide the best products in our field. We also plan to
continue to invest in our community through partnerships with other businesses and nonprofit
organizations and after five years we would hope to set up similar operation in another area

3.4. Keys to Success

Keys to success for hulu will include:

 Providing the highest quality product with personal customer service.

 Competitive pricing.
 Ongoing employee education and recognition programs.
 Give back to the community.

3.5. business ownership  

Table 1 The partnership owners and their roles

Add Deg Mes Yibe biho kidst kenu

is net eret lu negn bsh
Man cash Aud Gua Rec bake oper
age er itor rd epti r ator
men on

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 t and
role selle
r

3.6. Business History

hulu is a start-up business. Financing will come from the partners and loans. The following
table illustrate partnership projected initial start-up costs.  Our start-up costs come to birr
383,000 which mostly equipment, store furnishings and construction, and starting
inventory expenses associated with opening our first store.

4. SITUATION ANALYSIS

4.1. SWOT Analysis

Strengths
 Bakery would be clean and tidy
 Highly quality food offering
 Choice of different menu items not available any where
 Great retail space that is new clean and located in perfect area
 Sustainable competitive edge of adaptability to all occasions
 consumer market needs

Weaknesses
 First time business venture
 Lack of brand relation as bakery start up business
 Lack of experience in the bakery

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  Start up costs are only estimates
 Funding a small business could be difficult
Opportunities
 There are low number competitors at the areas.
 Diversifying our operation by opening other operation area
 Suitability of the areas for trading such materials
 Join the trend of modern cupcake design
Threats

 Will there be increasing of tax.

 Competitors from local restaurants may respond by reducing their price to increase sale
 The high increment of rent of house
 Partnerships may not become available
 Financial problems could threaten our first year’s success

5. Production plan

hulu offers a broad range of bread products, all from high quality wheat floors. It will provides
all of its customers by providing each customer bread products made to suit the customer. The
bakery provides freshly prepared bakery products at all times during business operations.

6. Market plane and Analysis

hulu will be a bakery that sells quality bread and other pastries. We want to target the higher
income of the middle class, maintain the quality of our products but also keep the prices
reasonable. We will strive to make our food something that our customers enjoy, but supply an
even greater experience by incorporating technology.
hulu focus is on meeting the demand of a regular local resident customer base, as well as a
significant level of government and private organizations that includes school, hotels, café and
restaurants and others.

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Target Market: Our target customers mainly consist of the higher income consumers, and the
top of the middle class. We expect our customers to be of the working class, people with steady
jobs, and possibly families
Product: Our product is a high-quality, organic dessert that is extremely adaptable to both
special events, and to the special dietary needs of our customers.
Pricing: Our prices will be slightly fair than those of our local competitors, mainly for the reason
that we strive for quality in our products. This goes hand in hand with the market that we plan to
target that of the upper middle class, and our higher income consumers.
Place (Distribution): Our primary way of distributing our products would be through our store.
Hopefully in the future we will be able to offer catering services, but during start up we will
work out of our own facilities. Customers will be able to walk in and buy our baked goods, as
well as set and/or send orders by telephone, or through a direct in-store appointment.
Promotion: We hope to contact our customers through advertising in leaflet, FM, radio and in
the beginning use advertisements in the newspaper to introduce our new business. We hope that
our idea to sell bread for half price will promote our products, although we want to be known as
a bakery that sells our fresh baked bread and pastries. We also expect that our valued community
involvement will also work as a promotion by improving the public view of our business and
advertising to the individuals involved with the organizations we work with.

6.1. Market Segmentation

Is the process of analyzing and classifying customers in a given market to create smaller, more
precise target market
hulu focuses on the middle, upper and lower-income markets. These market segments consume
the majority of bread products. The market would be segmented based on the quantity purchased
both for households and organizations.

Households

hulu wants to establish a large regular customer base. This will establish a healthy, consistent
revenue base to ensure stability of the business. It expects low amount of purchase for a large
amount of households per individual.

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 Public and private organizations

The company expects high amount of purchase from organizations like café, hotels and
restaurants. It will have its own strategy to satisfy the demand of these large purchasers.

6.2. Target market segmentation

The dominant target market for hulu is a regular stream of local residents and public and private
organizations. Personal and expedient customer service at a competitive price is key to
maintaining the local market share of this target market.

6.3. Competition and Buying Patterns

Competition in the local area is somewhat sparse and does not provide nearly the level of product
quality and customer service as hulu. But some of the competitors have strength and weakness,
hulu will be competitive using their weakness.

6.4. Strategy and Implementation

hulu will succeed by offering consumers high quality bakery products with personal service at
a competitive price. The owner’s strategy is to profitably and efficiently utilize present and
future bakery production technology.

7. Human resources Business and its Management plan

addis is the manager and assistance manager of the partnership responsible for the operations
and management of the company.  Since the business in the world of limited resources, decision
making how to use these resources in their best possible way is an essential matter.
The business will follow efficient management procedures. The business will be run the day to
day operation by consisting of, skilled, semi-skilled and unskilled workers to be employed by the
business with attractive monthly salary.

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Therefore, the management of the business will be competent enough. More specifically, the
duties and responsibilities of the bakery manager will be:
 To prepare rules and regulations that are practical for business administration
 To check consistently if staffs are functionally employed
 To prepare the monthly and annual budget, and present to the partners for approval
 To organize strategies and means to promote sales
 To be responsible to purchase and sign check when delegated by partners
 To check the date of sales report
 To check if tax and liabilities are paid on time
 To check if the business is profitable, output quality is maintained and prices are within a
competitive range
 To check bank loans and other payments are effected on time

One aim of a manager should be to ensure that all staff understand the nature of the business and
are active in working towards its success.
If it is accepted that most people wish to have the following aspects in their job, the manager can
arrange work to meet these needs:
 a reasonable wage
 security of employment
 respect for their skills and knowledge
 good relationships with other staff

7.1. Personnel Plan

As the personnel plan shows, hulu expects to make significant investments in sales, sales
support, and product development.

8. Financial analysis

Sales Strategy

Nature and Limitation of Business:

This financial projection is based on sales volume at the levels described in the sales
forecast section and presents, to the best of management's knowledge, the company's expected
assets, liabilities, capital, and revenues and expenses. The projection reflects management's

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 judgment of the expected conditions and its expected course of action given the hypothetical
assumptions.

8.1 Financial Plan

There are different major types of bakeries: in-store supermarket and small retail. With most
revenue coming from in-store bakeries, our business would draw off these sales. We would
specifically target upper middle class to high-class citizens who are willing to pay a little more
for a higher quality product with more specialization and service than that of major
supermarkets. A loan from the bank will be needed to receive capital for start up costs. The
requested long term loan amount 80,000.
Table 2: Fixed investment cost estimation

No Description unit quantity Unit price Total cost

1 Baking machine no 1 30,000 30000
2 Cash register machine no 1 15,000 15000
3 Floor mixing machine no 1 12,000 12000
4 Breading houses no 1 15,000 15000
5 Sub total base cost 72,000 72000
6 Contigency(4.16) 3,000 3000
7 Total 75,000 75000

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 Table 3 tool and equipment

No Description quantity Unit cost Total cost

1 Display cause 3 180 540
2 Mixer 3 1000 3000
3 Proofer 1 200 200
4 Item ovens 2 2500 5000
5 Signs 1 2200 2200
6 Dishwasher 1 2600 2600
7 Cookware 1 200 200
8 Cash register 1 300 300
9 Tables/roomdector 1 4000 4000
10 Table 2 2500 5000
Sub total 24,300
Contingency 700 700
Total 25,000

No.
zst
Tab
le 1
2
3
4
 
 
 

8.2 Sale forcast

Our Sales Forecast shows modest estimates for the first year of operations beginning in
febrewary of 2012 E.C.  After establishing hulu 'the' place for sweets and celebrations, we
project aggressive sales increases for the following years.

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APPENDIX

Refferences

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