BUSINESS PLAN FOR…BAKERY

1)  CERTIFICATE NR…. 1040

2) BATCH NR: A A

3) BUSINESS SECTOR..FOOD & BEVERAGES

4) BUSINESS SUBSECTOR…BAKERY BAKERY

5) Name of Entrepreneur
i) Surname…. UMAR

ii) Other names MUNEER

6) BVN…….. 22222957746

7) Phone numbers…… 7037483152

8) Personal e-mail…… [email protected]

9) Gender…. MALE

10) State of Origin… BAUCHI

11) State of business Location….. BAUCHI

12) Training Institution.: A.I Development Services Ltd

13) Age Range:- 32

14) State of Residence BAUCHI

15) Start-Up/Existing START UP

16) Loan Tenure… 36 31

17) Loan Total 2,428,000

18) EQUIPMENT (NOT LESS THAN 70% TOTAL LOAN) 1,760,000

19) WORKING CAPITAL(NOT MORE THAN 30% TOTAL LOAN) 668,000

20) Years of Operation.. 0

21) Training Type..Entrepreneurship

22) Geopolitical Zone..North East

23) Business Ownership Type..Sole Proprietorship

24) Business e-mail… [email protected]

25) Business Phone number… 7037483152

26) Business Name… MUNEER BAKERY

1.0 GENERAL INFORMATION
1.1 NAME OF BUSINESS :
MUNEER BAKERY

1.2 BUSINESS DESCRIPTION:………….. is essentially engaged in buying and and producttion of food and beverages.These are meant for local
markets,restaurants, hotels and individuals.

1.3 PROFILE OF ENTREPRENEUR(S): The entrepreneur has been involved in bakery products production such as this one.He has acquired
relevant knowledge and skills through this NPOWER EXIT Entrepreneurship training conducted by A.I Development Services Ltd.

1.4 SUMMARY OF LOAN REQUIRED

S/NR ITEM AMOUNT REMARKS
1 EQUIPMENT 1,760,000

2 WORKING CAPITAL 668,000

LOAN TOTAL 2,428,000

3 GRACE PERIOD 3
4 REPAYMENT PERIOD 33
5 LOAN TENOR 36
Principal Repyt/Mth 73,576
Interest rate 5% 121,400.00
Interest /Mth 36 3,372.22
Bank charges 4% 97,120.00
Ending cash balance 12,098,556.79
5.0 FINANCIAL PLAN
5.1 Project Cost Plan
S/NR DESCRIPTION QTY RATE AMOUNT EQUITY
BANK LOAN
1.0 ASSETS
1.1 Land/Building 1 350,000 350,000
1.2 Water tanks 2 50,000 100,000
1.3 Oven 2 150,000 300,000
1.4 0
1.5 0
Total Assets 750,000 750,000

2.0 Pre-Operational Expenses

2.1 Trade Reg. 1 5000 5,000.00
2.2 Rents of Premises 1 75,000 75,000.00
2.3 Renovation of premises 1 50,000 50,000.00
2.4 Npower Exit Training 1 15,000 15,000.00
2.5 CAC Reg. 1 15,000 15,000.00
2.6 0.00
2.7 0.00
Total Pre operational expenses 160,000
3.0 EQUIPMENT
3.1 Generator 1 200,000.00 200,000.00
3.2 Electric Oven 1 150,000.00 150,000.00
3.3 Big Mixer 1 200,000.00 200,000.00
3.4 Tricycle 1 250,000.00 250,000.00
3.5 Flour 40 24,000.00 960,000.00
3.6 0.00
3.70 0.00
Total Equipment 1,760,000 1,760,000 72%

4.0 WORKING CAPITAL Qty Rate Amount

4.1 Sugar 10 25000.00 250,000.00
4.2 Yeast 150 1000.00 150,000.00
4.3 Salt 4 4000.00 16,000.00
4.4 Flavours 30 1000.00 30,000.00
4.5 Polythene 20 600.00 12,000.00
4.6 Labour 1 150000.00 150,000.00
4.7 Overhead 1 60000.00 60,000.00
4.8 0.00
4.9 0.00
Total Working Capital 668,000.00 668,000 28%

5.0 TOTAL START-UP/EXPANSION COST 2,820,000

6.0 TOTAL EQUITY (ITEMS 1 & 2) 910,000
7.0 TOTAL LOAN REQUIRDS(Items 3+4) 2,428,000
3.0 PRODUCTION PLAN:This section is for those going into production
processes
3.1 Production Processes:
The production processe involves the following stages:- a) Purchase of working materials b) purchase of
equipment c) construction of sheds d) production e) Packaging and sales

3.2 Fixed Assets (Building and Machinery)

S/Nr Description Cost
1 Land/Building 1 NR 350,000 350,000.00
2 Water tanks 2 NR 50,000 100,000.00
2 Oven 2 NR 150,000 300,000.00

Total 750,000.00

3.3 Pre-Operational Cost

S/NR ITEM QTY RATE AMOUNT REMARKS

1 Trade Reg. 1 5000 5,000.00
2 Rents of Premises 1 75,000 75,000.00
3 Land prepration 1 50,000 50,000.00
4 Npower Exit training expenses 1 15,000 15,000.00
5 CAC Reg. 1 15,000 15,000.00
Total 160,000.00
UNIT COST FOR 3MONTHS 21.33
3.4. Maintenance Procdure: Regular vaccination

3.5 Raw Materials Required for Initial and Subsequent Production Cycles
S/NR ITEM QTY UNIT RATE AMOUNT
1 Sugar 5 Nr 25,000.00 125,000.00
2 Yeast 5 Nr 1,000.00 5,000.00
3 Salt 2 Nr 4,000.00 8,000.00
4 Flavours 12 Nr 1,000.00 12,000.00
5 Polythene 20 Nr 600.00 12,000.00
6 Labour 1 lot 150,000.00 150,000.00
7 Overhead 1 lot 60,000.00 60,000.00
Total 372,000.00

UNIT COST FOR 3MONTHS 20.00

3.6 Sources Of Raw Materials
S/NR ITEM Location QTY Remarks
1 Equipment
2 Working materials

3.7 Direct and Indirect Labour

S/NR ITEM Location QTY Remarks

1 Mgt 1
2 Direct 2
3 Indirect 1

3.8 Cost of Labour per Operational Cycle in Months

S/NR ITEM No Time Rate Amount

1 Magt 1 3 15,000 45,000
Direct
2 Labour 2 3 10,000 60,000
Indirect
3 labour 1 1 10,000 10,000

total 115,000
UNIT COST FOR 3MONTHS 15.33
3.9 Availabilty of Labour

S/NR ITEM Seasonal All Year Remark

1 Mgt X
2 Direct
Labour X
3 Indirect
labour X

3.10 Worker Motivation

S/NR Item MOTIVATION 1 MOTIVATION 2 MOTIVATION 3

1 Mgt Prompt Salaries Bonuses Equity
2 Direct Labour Prompt Salaries Bonuses
3 Indirect labour Prompt Salaries Bonuses
3.11 Expected Overheads per Operational Cycle( in Months)
S/NR Item Time Qty Unit Rate Amount
1 Electricity 3 10 kwh 250 7,500.00
2 Water 3 140 ltres 25 10,500.00
3 Transport 2 1 item 7000 14,000.00
4 Fuel 3 10 ltres 165 4,950.00
5 ICT 3 1 item 1000 3,000.00
Total 39,950.00
UNIT COST FOR 3MONTHS 5.33

6 NR. OF MEDIUM SIZE LOVES OF BREAD 4500

7 NR. OF SMALL SIZE LOVES OF BREAD 3000
TOTAL PRODUCTION PER MONTH 7500

8 UNIT COST OF PRODUCING INR LARGE SIZE LOAF OF BREAD 262

9 UNIT COST OF PRODUCING INR MEDIUM SIZE LOAF OF BREAD 162

TOTAL
4.0 MARKETING PLAN
4.1 MARKETING AREA AND TARGET CUSTOMERS
S/NR Products Area Target Customer Expectd Mkt Share
1
MEDIUM Restaurant/ Individuals 1%
2 SMALL Farmers 1%
3

4.2 Demand Pattern for Products

S/NR Products Area Low Medium High Remarks

BAUCHI
1 MEDIUM X
2 SMALL BAUCHI X

4.3 Products,Production Costs and Proposed Selling Price

S/NR Products Unit Prod Cost Overhead +Profit Selling Price Remarks(Optional)
1 MEDIUM BREAD 261.99 20.00% 314.39
2 SMALL BREAD 161.99 15.00% 186.29
3

4.4 Expected Production Output Per Cycle of 3 months @ 5% steady increase

S/NR Products M1-M3 % INCRE. M4-M6 % INCRE. M7-M9 % INCRE.
1 MEDIUM 4500 0% 4725 5% 4961 5%
2 SMALL 3000 3150 3308 5%
1a Sales for MEDIUM 1,414,764.00 1,485,502.20 1,559,777.31
2a Sales for SMALL 558,877.00 586,820.85 616,161.89
M10-M12 % INCRE. M13-M15 % INCRE. M16-M18 % INCRE.
1 MEDIUM 5209 5% 5470 5% 5743 5%
2 SMALL 3473 3647 3829
1a Sales for MEDIUM 1,637,766.18 1,719,654.48 1,805,637.21
2a Sales for SMALL 646,969.99 679,318.49 713,284.41
M19-M21 M22-M24
1 MEDIUM 6030 5% 6332 5% 5%
2 SMALL 4020 4221 5%
1a Sales for MEDIUM 1,895,919.07 1,990,715.02
2a Sales for SMALL 748,948.63 786,396.06
% INCRE. % INCRE. % INCRE.
1 MEDIUM 0 5% 0 5% 0 5%
2 SMALL 0 0 0
1a Sales for MEDIUM
2a Sales for SMALL
4.5 Sales & Promotional Strategies
S/NR Strategy MEDIUM SMALL Remarks
1 Radio
X
Adverts
2 TV
Adverts
3 Social
X
Media
Outdoor
4 displays
5 Fliers
6 Door to
door sales
7 Discounts
Free X X
8 Delivery X
2.0 ORGANISATIONAL AND MANAGEMENT PLAN
2.1 Organisational Structure Models
S/NR Model 1 Model 2 Model 3 Remarks(
1 OWNER OWNER OWNER Model 3 is the most
2 MANAGER OWNER-MGR OWNER-MGR- suitable for this
WORKER business
3 WORKERS WORKERS
WORKERS

2.2 Strengths,Weaknesses,Opportunities and Threats

(SWOT ANALYSIS)
S/NR Items Descriptions Remarks
1 Strengths Adequate capital & customer base
2 Weaknesses Highly competitive market
3 Opportunities Daily demand
4 Threats Irratic sources of materials
5 Risks

2.3 Risks and Mitigations

S/NR Risks Mitigations Remarks
1 Theft and banditry Provision of secured Factory
2 Irratic source of feedAlternative sources of Raw Materials
3 Low Purchasing Expanding market horizon
4 power
Competition Provision of high quality and healthy Products
5 Pricing Affordable and competative prices
5.2 Monthly Sales and Cost Plan

S/Nr ITEMS MTH I MTH 2 MTH 3 MTH 4 MTH 5 MTH 6 MTH 7 MTH 8 MTH 9 MTH 10 MTH 11 MTH 12
1.0 Sales
1.1 MEDIUM BREAD 0.00 0.00 1,414,764.00 0.00 0.00 1,485,502.20 0.00 0.00 1,559,777.31 0.00 0.00 1,637,766.18
1.2 SMALL BREAD 186,292.33 186,292.33 186,292.33 195,606.95 195,606.95 195,606.95 205,387.30 205,387.30 205,387.30 215,656.66 215,656.66 215,656.66
1.3
1.4
Total Sales 186,292.33 186,292.33 1,601,056.33 195,606.95 195,606.95 1,681,109.15 205,387.30 205,387.30 1,765,164.61 215,656.66 215,656.66 1,853,422.84
2.0 EXPENSES
2.1 Staff Salaries 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33
2.2 Operational Cost 1,006,000.00 46,000.00 46,000.00 1,006,000.00 46,000.00 46,000.00 1,006,000.00 46,000.00 46,000.00 1,006,000.00 46,000.00 46,000.00
2.3 Loan Repayment 0.00 0.00 0.00 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76
2.4 Depreciation 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.5 Loan Interest 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22
2.6 Bank Charges 97,120.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Expenses 1,144,825.56 87,705.56 87,705.56 1,121,281.31 161,281.31 161,281.31 1,121,281.31 161,281.31 161,281.31 1,121,281.31 161,281.31 161,281.31
3.0 Gross Profit(1-2) -958,533.22 98,586.78 1,513,350.78 -925,674.36 34,325.64 1,519,827.84 -915,894.02 44,105.98 1,603,883.29 -905,624.65 54,375.35 1,692,141.52
4.0 PIT/CIT 2% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5.0 Net Profit -958,533.22 98,586.78 1,513,350.78 -925,674.36 34,325.64 1,519,827.84 -915,894.02 44,105.98 1,603,883.29 -905,624.65 54,375.35 1,692,141.52

S/Nr ITEMS MTH 13 MTH 14 MTH 15 MTH 16 MTH 17 MTH 18 MTH 19 MTH 20 MTH 21 MTH 22 MTH 23 MTH 24
1.0 Sales
1.1 MEDIUM BREAD 0.00 0.00 1,719,654.48 0.00 0.00 1,805,637.21 0.00 0.00 1,895,919.07 0.00 0.00 1,990,715.02
1.2 SMALL BREAD 226,439.50 226,439.50 226,439.50 237,761.47 237,761.47 237,761.47 249,649.54 249,649.54 249,649.54 262,132.02 262,132.02 262,132.02
1.3
1.4
Total Sales 226,439.50 226,439.50 1,946,093.98 237,761.47 237,761.47 2,043,398.68 249,649.54 249,649.54 2,145,568.61 262,132.02 262,132.02 2,252,847.04
2.0 EXPENSES
2.1 Staff Salaries 38,333.33 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00
2.2 Operational Cost 1,006,000.00 46,000.00 46,000.00 1,006,000.00 46,000.00 46,000.00 1,006,000.00 46,000.00 46,000.00 1,006,000.00 46,000.00 46,000.00
2.3 Loan Repayment 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76
2.4 Depreciation 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.5 Loan Interest 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22
2.6 Bank Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Expenses 1,121,281.31 172,947.98 172,947.98 1,132,947.98 172,947.98 172,947.98 1,132,947.98 172,947.98 172,947.98 1,132,947.98 172,947.98 172,947.98
3.0 Gross Profit(1-2) -894,841.82 53,491.52 1,773,146.00 -895,186.51 64,813.49 1,870,450.70 -883,298.44 76,701.56 1,972,620.63 -870,815.96 89,184.04 2,079,899.06
4.0 PIT/CIT 2% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5.0 Net Profit -894,841.82 53,491.52 1,773,146.00 -895,186.51 64,813.49 1,870,450.70 -883,298.44 76,701.56 1,972,620.63 -870,815.96 89,184.04 2,079,899.06
5.3 Projected Monthly Cash Flow Statements
S/Nr ITEMS MTH 1 MTH 2 MTH 3 MTH 4 MTH 5 MTH 6 MTH 7 MTH 8 MTH 9 MTH 10 MTH 11 MTH 12
1.0 Beginning Cash Bal. 0.00 2,379,466.78 3,892,817.56 5,332,592.58 4,406,918.21 4,441,243.85 5,961,071.69 5,045,177.67 5,089,283.66 6,693,166.95 5,787,542.30 5,841,917.65
2.0 Cash Receipts
2.1 Sales 186,292.33 1,601,056.33 1,601,056.33 195,606.95 195,606.95 1,681,109.15 205,387.30 205,387.30 1,765,164.61 215,656.66 215,656.66 1,853,422.84
2.2 Equity 910,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.3 Expected Loan 2,428,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Receipts 3,524,292.33 3,980,523.11 5,493,873.89 5,528,199.53 4,602,525.16 6,122,353.00 6,166,458.98 5,250,564.97 6,854,448.26 6,908,823.61 6,003,198.96 7,695,340.49
3.0 EXPENSES
3.1 Staff Salaries 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33
3.2 Operational Cost 1,006,000.00 46,000.00 46,000.00 1,006,000.00 46,000.00 46,000.00 1,006,000.00 46,000.00 46,000.00 1,006,000.00 46,000.00 46,000.00
3.3 Loan Repayment 0.00 0.00 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76
3.4 Loan Interest 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22
3.5 Bank Charges 97,120.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.6 Other Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Expenses 1,144,825.56 87,705.56 161,281.31 1,121,281.31 161,281.31 161,281.31 1,121,281.31 161,281.31 161,281.31 1,121,281.31 161,281.31 161,281.31
4.0
Cash surplus/Deficit 2,379,466.78 3,892,817.56 5,332,592.58 4,406,918.21 4,441,243.85 5,961,071.69 5,045,177.67 5,089,283.66 6,693,166.95 5,787,542.30 5,841,917.65 7,534,059.17
4.0 Ending Cash Bal 2,379,466.78 3,892,817.56 5,332,592.58 4,406,918.21 4,441,243.85 5,961,071.69 5,045,177.67 5,089,283.66 6,693,166.95 5,787,542.30 5,841,917.65 7,534,059.17

S/Nr ITEMS MTH 13 MTH 14 MTH 15 MTH 16 MTH 17 MTH 18 MTH 19 MTH 20 MTH 21 MTH 22 MTH 23 MTH 24
1.0Beginning Cash Bal. 7,534,059.17 6,639,217.36 6,704,375.54 8,489,188.20 7,605,668.36 7,682,148.52 9,564,265.88 8,692,634.11 8,781,002.35 10,765,289.64 9,906,140.35 10,006,991.06
2.0Cash Receipts
2.1Sales 226,439.50 226,439.50 1,946,093.98 237,761.47 237,761.47 2,043,398.68 249,649.54 249,649.54 2,145,568.61 262,132.02 262,132.02 2,252,847.04
2.2Equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.3Expected Loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Receipts 7,760,498.67 6,865,656.85 8,650,469.52 8,726,949.67 7,843,429.83 9,725,547.20 9,813,915.43 8,942,283.66 10,926,570.96 11,027,421.67 10,168,272.37 12,259,838.10
3.0 EXPENSES
3.1 Staff Salaries 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33 38,333.33
3.2 Operational Cost 1,006,000.00 46,000.00 46,000.00 1,006,000.00 46,000.00 46,000.00 1,006,000.00 46,000.00 46,000.00 1,006,000.00 46,000.00 46,000.00
3.3 Loan Repayment 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76 73,575.76
3.4 Loan Interest 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22 3,372.22
3.5 Bank Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.6 Other Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Expenses 1,121,281.31 161,281.31 161,281.31 1,121,281.31 161,281.31 161,281.31 1,121,281.31 161,281.31 161,281.31 1,121,281.31 161,281.31 161,281.31
4.0
Cash surplus/Deficit 6,639,217.36 6,704,375.54 8,489,188.20 7,605,668.36 7,682,148.52 9,564,265.88 8,692,634.11 8,781,002.35 10,765,289.64 9,906,140.35 10,006,991.06 12,098,556.79
4.0 Ending Cash Bal 6,639,217.36 6,704,375.54 8,489,188.20 7,605,668.36 7,682,148.52 9,564,265.88 8,692,634.11 8,781,002.35 10,765,289.64 9,906,140.35 10,006,991.06 12,098,556.79