Business plan confectionery "Glaze"

* The calculations use the average data for the World 1 903 000 ₽

Starting investments

800 000 ₽

Revenue

175 000 ₽

Net profit

12 months

Payback period

To open your pastry shop for 100 square meters. meters with a guest room with 20 seats will need 1.9 million rubles. The institution will be able to bring about 800 thousand rubles a month, of which net profit will be 175 thousand rubles

1. Summary of the project "Confectionery"

The essence of the project is the opening of its own confectionery in a city with a population of more than 500 thousand people. The purpose of this business plan is to justify the effectiveness and profitability of the project for investment. The confectionery will be located in a rented area of ​​100 square meters. meters, where there will be a confectionery shop and a hall for 20 visitors. Integrated project indicators are given in Table. one.

The starting capital of the confectionery project is 1 903 000 rubles. As a source of funds will be used their own savings. The estimated term of the business plan is 3 years. The expected turnover of the confectionery will be 800 thousand rubles, net profit - 175 thousand rubles. Return on sales will be 21%. It is supposed to recoup investments for 12 months of work.

Table 1. Integrated performance indicators

Confectionery indicatorsValue

Discount rate (r-year), %

five

Discount rate (r-month), %

0.407

Payback period (PP), months

12

Discount payback period (DPP), months

12

Net present value (NPV), rub.

2 183 048

Return on Investment (ARR), %

15.36

Internal rate of return (IRR), %

10.63

Profitability Index (PI)

1.15

2. Description of the confectionery industry and company

Confectionery - the concept is quite broad and multicomponent. According to Russian GOST, confectionery products are divided into the following groups: chocolate, cocoa, flour confectionery, and sugar confectionery. The main feature of the modern market for confectionery products is the transition from the “privilege” of confectionery products to their mass consumption. More and more often, pastries become fast food rather than a rare expensive treat or gift. Due to this factor and the fact that confectionery products have short shelf life and are highly dependent on freshness, the confectionery business has been and remains promising for small businesses. Until recently, the confectionery market has seen steady growth. According to Alto-Group, since 2011, production volumes have increased in all major segments (see Figure 1).

Figure 1. Confectionery production volumes in Russia 2011-2014 (tons)

Source: alto-group.ru

According to the results of 2015, experts noted a decrease in production volumes. In general, according to the Center for the Confectionery Market, the fall in the market amounted to about 1%. In particular, according to the calculations of INFOLine specialists, made on the basis of Rosstat data, the production of the largest group in the structure of the production of confectionery products - chocolate, cocoa and sugar confectionery - showed a decrease of 2.5% compared to last year. The reasons for this situation were the weakening of the national currency, a decrease in household incomes and a decrease in its purchasing power, and as a result, a decrease in the consumption of sweets. At the same time, the import of all confectionery products into the country was halved over the year, while consumer prices rose by an average of 24% (data from the Center for Information and Information Technologies). Chocolate (38%) and caramel (33-35%) rose especially strongly. Due to rising prices for cocoa raw materials, manufacturers began to prefer cheaper recipes, increasing the production of products with fillings and chocolate icing, refusing directly from the chocolate itself. Compared to chocolate, the crisis-resistant direction turned out to be cheaper flour confectionery products.

The aim of this confectionery project is to organize its own production and sale of confectionery in a city with a population of more than 500 thousand people and profit. A pastry shop with a cafe-shop for 20 visitors will be placed in a room with a total area of ​​100 square meters. The concept of the project will include the production of confectionery products according to their own recipes and their sale to consumers in finished form and on order. Since the cafe-shop will be located directly during production, the consumer will always have the right to count on the purchase of fresh produce. The assortment of the confectionery will consist of flour cakes and pastries with a total assortment of more than 110 types. In connection with the most unfavorable market conditions, emphasis will be placed on inexpensive products and original recipes.

The target audience of the confectionery will be the residents of the city, mainly living and working in its central part. The target audience can be described as citizens with an average income level. Most of Central Asia is made up of people aged 24-45, that is, the most solvent part of the population. Due to the fact that the confectionery will have small production capacities and turnovers, it is planned to carry out activities within the framework of individual entrepreneurs with a simplified taxation system (“income minus expenses”). The staff of the confectionery will be 6 people. The total investment cost for the opening of the confectionery will be 1 903 000 rubles. Of these, investments in working capital - 300, 000 rubles. Details of the project investment costs are given in Table. 2 business plans.

Table 2. Total investment costs of the project

No.

NAME

AMOUNT, rub .

The property

one

Repair and design of the room

365, 000

2

Front works

65, 000

Equipment

2

Workshop and guest room equipment

1, 043, 000

Intangible assets

four

Registration and registration

10, 000

five

Advertising (opening campaign)

40, 000

6

Other

20, 000

Current assets

7

Current assets

300, 000

Total:

1 903 000

3. Description of goods and services of the confectionery

The basis of the assortment of the confectionery will consist of flour confectionery products - cakes (more than 100 types) and cakes (more than 10 types). Our products are high-calorie, but at the same time quickly digestible products with high nutritional value, having excellent taste, unusual appearance and mouth-watering aroma. The mass of cakes will vary from 40 to 120 gr., Cakes - from 500 to 2000 gr. In Tab. Figure 3 presents the assortment of the confectionery and variable production costs. The assortment is indicative and can be changed depending on demand, inclusion of new types of products, etc. The additional assortment of the confectionery will include soft drinks: coffee, tea, milkshakes and more.

Table 3. Assortment of confectionery

No.

PRODUCT

DESCRIPTION

COSTS UNITS, rub.

TRADING VALUE, %

UNIT COST, rub.

Confectionery

Biscuit cakes

one

Michelangelo Cake

Sponge cake with jelly and berries

181

93

349

2

Cake “Mr. Nut”

Sponge cake with walnuts

121, 4

113

259

3

Cake "Carrot Fortress"

Sponge cake with carrots, cottage cheese, cinnamon and nuts

148.1

169

399

four

German Adventure Cake

Sponge cake with chocolate icing, banana and butter cream

348.6

473

1 999

five

Chocolate Small Cake

Sponge cake with chocolate

222.4

165

589

6

Chocolate King Cake

Sponge cake with chocolate and cherry

333.6

435

1, 799

Sand cakes

7

Cake "Sweet-eat"

Shortcake with candied fruits and nuts

263.7

74

459

eight

Cake "Termite"

Shortcake with condensed milk

157.3

71

269

9

Miracle Glaze Cake

Sand cake with icing

182.3

74

329

Puff cakes

ten

Puff cake "Mephistopheles"

Cream puff cake with a surprise inside

444.6

98

879

eleven

Napoleon cake"

Classic puff cake “Napoleon” with custard

349.4

97

679

Biscuit cakes

12

Biscuit cakes

Assorted biscuit cakes

24

70

41

13

Custard cakes

Assorted cakes

15, 5

60

25

14

Shortcakes

Shortcakes in assortment

nineteen

80

34

15

Puff pastries

Puff pastries in assortment

34

50

51

sixteen

Basket cakes

Assorted cakes

27

50

41

The drinks

17

Milkshake

Assorted milkshake

25

260

90

18

Coffee

Assorted coffee

ten

700

80

nineteen

Tea

Tea in assortment

7

610

50

20

The juice

Assorted juice

sixteen

400

80

The main raw materials in the confectionery industry will be flour, eggs, sugar and butter. Milk and dairy products, fruits, berries, nuts and more will also be used. In the calculations of this business plan, the average prices for raw materials in Russia for December 2016 were used.

4. Sales and marketing of the confectionery

The key sales channel for the confectionery at the initial stage of the project will be its own cafe-confectionery at the workshop, in the future it is planned to deliver products to the grocery stores of the city. The sales plan (see Table 4 of the business plan) is designed for three years of the project. The achievement of planned volumes is planned for 4 months of work.

Table 4. Sales plan for 2017-2019

YEAR 2017 2018 2019

Expression

In kind

In monetary terms, rub.

In kind

In monetary terms, rub.

In kind

In monetary terms, rub.

Type of product

Cakes

680 kg

581, 000

884 kg

756, 000

1105 kg

945, 000

Cakes

500 kg

192 000

700 kg

270, 000

870 kg

335, 000

The drinks

30, 000

44, 000

60, 000

Total:

803, 000

1, 070, 000

1, 340, 000

As marketing tools to attract the target audience it is planned to use:

  • distribution of leaflets and business cards;

  • paid posting on social networks (popular city publics and groups);

  • conducting promotions with the distribution of finished products.

Since feedback from the client is important for the efficient operation of the confectionery, it will be advisable to maintain social networks where photos of the confectionery will be laid out, where visitors can leave feedback on different types of products. It is also possible to hold contests with a drawing of confectionery or certificates for their purchase. To maintain customer loyalty, it is planned to create branded discount cards. To attract the attention of the audience at the start of work on the opening day of the confectionery, an advertising campaign will be held with a free tasting of confectionery. For advertising purposes before opening the institution will be spent 40 thousand rubles.

5. Production plan for the confectionery workshop

A confectionery workshop with a cafe-shop will be located in the central part of the city, in a room with a total area of ​​100 square meters. Of these, 55 square meters. meters will be a pastry shop, 40 square meters. meters will occupy the guest room, designed for the simultaneous reception of 20 visitors. To place the confectionery, the premises previously used as a cafe will be used, and therefore there is no need to summarize the main communications. Nevertheless, it will be necessary to repair the guest room and the facade of the building to create the corporate identity of the confectionery. The total cost of repairs will amount to 430 thousand rubles.

The technological process for the preparation of confectionery products will depend on the specific recipe. In general, it can be divided into 5 main stages: preparation of the product for kneading dough, kneading dough, semi-finished baking, cream preparation, product design. To equip the confectionery workshop, it will be necessary to purchase equipment worth 611, 000 rubles. Taking into account the equipment for preparing drinks, cash registers, display cases and furniture for the guest room, 1, 043, 000 thousand rubles will be needed. (see Table 5 of the business plan).

Table 5. The list of equipment

No.

Name

price, rub.

Cost, rub.

Confectionery shop equipment

one

Whipping machine

111, 000

111, 000

2

Cream Cooking Pot

91, 000

91, 000

3

Dough mixer

52, 000

52, 000

four

Confectionery forms

50, 000

50, 000

five

Convection oven

42, 500

42, 500

6

Mixer

37, 500

37, 500

7

Electric stove

32, 000

32, 000

eight

Proofer

30, 000

30, 000

9

Wiping Machine

28, 000

28, 000

ten

Fridge

28, 000

28, 000

eleven

Flour sifter

26, 000

26, 000

12

Freezer

22, 000

22, 000

13

Libra

3, 000

12, 000

14

Washing bath

5, 000

10, 000

15

Production inventory

10, 000

10, 000

sixteen

Rack

5, 000

10, 000

17

Exhaust hood

9, 000

9, 000

18

Production table

4, 000

8, 000

nineteen

Ovoscope

2, 000

2, 000

Refrigeration equipment for the sales area

20

Confectionery showcase

42, 000

84, 000

21

Confectionery cabinet

47, 500

47, 500

22

Juice cooler

36, 000

36, 000

23

Bar refrigerator

23, 000

23, 000

Other equipment

24

Furniture for visitors

90, 000

90, 000

25

Coffee machine

42, 000

42, 000

26

Cash equipment / cashless terminal

36, 000

36, 000

27

Bar counter

16, 000

16, 000

28

Inventory

15, 000

15, 000

29th

Milkshake mixer

12 500

12 500

thirty

Other

30, 000

30, 000

Total:

1, 043, 000

On average, 680 kg of cakes and 500 kg of cakes are planned to be produced per month. The volume of production will be affected by the seasonality factor. So, the greatest load of the workshop is expected on the eve of the New Year holidays, as well as in February - March.

6. The organizational plan of the confectionery

Responsibilities for the management of the confectionery and work on cooperation with suppliers will be undertaken by the individual entrepreneur. The organizational structure will include confectioners, sellers, accountants and support staff. In Tab. 6 presents the staffing and payroll. The main requirements for confectioners will be: the availability of professional education, knowledge of recipes and production technology, the principle of operation of confectionery equipment, methods of product design.

Table 6. Staffing and payroll

No.

Position

Salary, RUB

Number of people

PHOT, RUB

Production personnel

one

Confectioner

30, 000

3

120, 000

Sales staff

2

Seller

20, 000

2

40, 000

Support staff

3

Cleaning lady

15, 000

one

15, 000

Total:

145, 000

Social Security contributions:

43, 800

Total deductions:

188, 800

7. The financial plan of the confectionery

Investments in the project of the confectionery “Glaze” will amount to 1 903 000 rubles. Details of the cost items are set forth in Table 2 and in Table. 5 business plans. All the main financial indicators in the main period of activity, including cash flow, revenue, net profit, fixed and variable costs, are given in Appendix 1. The variable part will include the cost of raw materials, and the constant (see Table 7) - rent, utilities, business expenses, accounting, depreciation, management expenses, annuity loan payment (for a period of 36 months). Depreciation charges were calculated on a straight-line basis over a useful life of 5 years.

Table 7. Fixed costs of the confectionery

No.

NAME

Amount in months, rub.

one

Rent

40, 000

2

Depreciation deductions

17, 400

3

Selling expenses

10, 000

four

Bookkeeping

9, 000

five

Utilities

6, 000

6

Management expenses

3, 000

Total:

85, 400

8. Evaluation of the effectiveness of the confectionery

The effectiveness of the project can be judged on the basis of the analysis of the financial plan, cash flows, as well as simple and integrated indicators of the project (Table 1 business). The change in the value of money over time is taken into account using the cash flow discounting method. The discount rate is 5%. The expected turnover of the confectionery is 800 thousand rubles, net profit is 175 thousand rubles, return on sales is 21%.

Simple (PP) and discounted payback periods of the project are 12 months. Net present value (NPV) - 2 183 048 rubles, which is a positive value and exceeds the size of starting investments. The internal rate of return (IRR) is 10.63%. The investment attractiveness of the project is also evidenced by the profitability index (PI), which is 1.15 and exceeds 1.

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9. Risks and guarantees of the business idea of ​​the confectionery

Both at the preparation stage and in the main period of the confectionery’s work, the activity is associated with certain risks. Their assessment, as well as measures to prevent them are given in Table. eight.

Table 8. Possible risks and ways to prevent them or their consequences

Risk factor

Probability of occurrence

Severity of consequences

activity

Equipment failure

low

average

Acquisition of equipment from a trusted supplier, availability of guarantees, compliance with operating rules, hiring qualified personnel

Shortage of qualified personnel

average

high

Search for staff at the stage of business planning, the presence of the “backbone” of the team, the offer of more favorable conditions for employees than competitors

Tightening repairs, increasing estimates

average

below the average

Careful approach to the choice of a construction company, conclusion of an agreement with fixed deadlines for the commissioning of an object, a fixed estimate

“Squeezing out” by competitors (dumping, marketing wars, copying the company menu)

average

average

Advertising, maintaining a high level of service, customer focus, receiving feedback from customers, the availability of a financial airbag for the initial period of work, the use of all competitive advantages, the presence of a loyalty program

Unplanned rent increase

low

average

The registration of all rental conditions in the contract, the clarity of the wording, if necessary, the drawing up of a lease with the participation of a lawyer, conclusion of a long-term contract at a fixed rate

Emergency, natural disaster

extremely low

high

Installation of security and fire alarms, compliance with fire safety standards

Mikhail Semynin

(c) www.clogicsecure.com - a portal to business plans and guidelines for starting a small business 08/18/2019


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