Department of Management

Project Paper: Business Plan/Pitch

Course: MGT368

Section: 09

Date of Submission: 21st December 2019

Submitted to: Mohammad Asif Gazi (MAG)

Submitted by:
Name ID

Wahida Nasrin 1620364030

Anika Ibnat 1620250630

Mst. Sinthia Aktar 1621369030

Maisha Ahmed 1610324030

Table of Contents
1. Introduction ................................................................................................................................. 3
2. Evidence of a strong team, with relevant skills .......................................................................... 3
3. Evidence of a problem worth solving ......................................................................................... 3
4. Business Environment Analysis/ Evidence of market opportunity by research ......................... 4
5. Business Model ........................................................................................................................... 6
6. Description of ventures ............................................................................................................. 17
7. Production plan/Service delivery model ................................................................................... 19
8. Operational plan ........................................................................................................................ 20
9. Market plan (7 P’s) ................................................................................................................... 20
10. Organizational plan ................................................................................................................. 26
11. Assessment of risk ................................................................................................................. 26
12. Financial plan (Maximum 5 years with analysis yearly analysis) .......................................... 26
13. Reference ................................................................................................................................ 30

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1. Introduction
a. Name of the business: Cake Bakery Business.
b. Address: Sector 4, Uttara (9.08 mi) Dhaka, Bangladesh 1230. & 448/C Khilgaon
Chowdhury Para (1.54 mi) Dhaka, Bangladesh 1219.
c. Nature of the business: The products we are selling include cakes and pastries that come
with a various types and tastes. It is an online based bakery business, we are running this
business like other typical online businesses and we are taking orders over phone and
giving home deliveries.

2. Evidence of a strong team, with relevant skills

a. Personal reason to think about this business:

It’s Food o’clock’s owner love to bake, she is passionate about baking. She think baking makes
her feel good and it simply refreshes her from deep inside. She always dreamt of having her own
restaurant and this page is just a step towards the stair of her dream. On the other hand, the owner
of the page “Gray Hub” said, she really do have plans about the page and she want to come up
with a place where one can shop while having cakes and cupcakes and can meet up their sweet
cravings by also losing the calories by shopping. Which means she want to open a nice store which
comes up with a bakery and clothing section, both and this online bakery shop is the route to her
dream chain shop.
b. Skills that can contribute in this venture:
Owners of the pages have these following skills that can contribute in the venture:
 Owners have good baking skills.
 They have good communication skills for excellent customer service.
 They have the ability to cope under pressure. When there are lots of orders pending they
have to work under pressure so it’s important to cop up with that.
 They have good time management skill. Time management is very important to deliver the
products on time otherwise it will create a bad image for the business.
 They have very good creativity and presentation skill to decorate cakes, pastries according
to the taste and choice of the customer.
 They have proper numeracy knowledge of estimating and measuring quantities, weights,
baking times and temperature.

3. Evidence of a problem worth solving

To know the commercial viability of the product we collect data from secondary source. We
arranged a cupcake fest in “North South University” for both of our page’s promotional purpose
and market research purpose. We sold cupcakes in a very low promotional price, within 2 hours
we sold 100 cupcakes. We got a huge response from the students of “North South University”.
Our total sales was 3032 taka and cost was 1900 taka and 1132 taka was our revenue. After the
fest we decided to increase our products.

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As we all know bakery products demand is very high but in the market there is a deficit of good
quality, budget friendly bakery items. Hygienic condition and innovative designs of product are
also needed in the market. That’s why we offer our customer high quality, homemade bakery
products in affordable price with customization options.

4. Business Environment Analysis/ Evidence of market opportunity by research

I. PESTEL Analysis:
We use this tool to track the environment in which we are trying to operate our business. It
gives a bird’s eye view of the whole environment from many different angles.
 Political factors:
As we have started our business in a small scale and it’s a completely online based
business, there is no government influence on our business regarding tax policies.
We use some products as raw materials which are imported from foreign countries.
So, such products have some pricing issues such as, if government increases the
import taxes the price of the imported products also increase.
 Economic factors:
Bangladesh will be the third fastest growing economy in the world in terms of
achieving high Gross Domestic Product (GDP) in 2019 according to United
Nations report. Per capita GDP growth for Bangladesh is expected at 6.7% in 2019
and 6.6% in 2020 – Asian Development Bank (ADB) Report. So, the economic
condition of Bangladesh is favorable for conducting businesses. Moreover,
nowadays online businesses and online buying & selling becoming very popular
among people.
 Social factors:
Cakes are becoming more popular in Bangladeshi culture. People are now buying
cakes in every single occasions to celebrate. Such as, birthday, rag day, marriage
ceremonies etc. The way of celebration is also changed with time. Moreover, people
are becoming more health conscious. It opens up the opportunity for the home
cooks like us. We deliver pure homemade cakes by maintaining the quality of the
food.
 Technological factors:
Technology does not play a huge impact on an online based cake bakery business
however, technology helps to improve some aspects. Such as, it can allow us to
make our website and pages which will make our business well known to the public.
New cooking products could make the process more effective and increase
productivity.
 Legal factors:
Our cake bakery business is a small online based business. There is no labor cost
because we do not use any labor to operate our business right now. So, we do not
need to follow any labor law which makes our business less complicated. But we
maintain the safety standards.

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  Environmental factors:
It is easily understandable by the nature of the business that there is not much
environmental factors to concern about in this business. Regarding the question of
environmental issues, we can say that we do not use any chemicals in our cakes.
II. Porter's five forces:
 Competition in the industry:
 Who are the nearest competitors?
The nearest competitors are Cake World, Baker’s Cupcakes, Pastryarchy,
and Cookups. All of them are online based shop. Apart from Cookups, rest
of the online shops are only make bakery items mostly cakes. We consider
them as our competitors because our business nature matches with them.
All of them are online based and have no outlet in the market. Another
similarity is all of them are providing customized designs like us. Cake
World, Baker’s Cupcakes and Pastryarchy are very active and frequently
getting many orders. Cake World has 112,777 likes and 113,395 followers
on their Facebook page. Bakery’s Cupcakes has 8,778 people likes and
8,819 followers on their Facebook page. Pastryarchy has 3,818 likes and
3,864 followers on its Facebook page.
 How will your business operation be better than this?
Our business operation will be better than them because we are providing
lower prices than them. The taste of our cakes are really balanced and good.
We maintain the quality of our cakes. We use the high quality raw materials
to make the cakes.
 Are the sales of each of your major competitors growing, declining, or
steady?
After observing their Facebook pages, we can say that the sales each of our
major competitors are growing. All of them are getting good responses from
their customers.
 Potential of new entrants into the industry:
 How many new firms have entered this industry in the past three years?
There is no evidence about the exact number of new online based cake
bakery business in past three years. The Pastryarchy is created in 2018 and
within a very short period of time it gathers much popularity.
 Power of suppliers:
As we have started our business in a very small scale, there is no influence of
suppliers in our business. We collect all our raw materials from the local stores.
 Power of customers:
We haven’t targeted people basing on any specific age, gender, group or class.
Rather it’s for everyone who wants to have bakery items whatever the reason or
occasion be. Focusing on the current period of crisis of getting fresh and hygiene

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 maintained bakery items, we are offering the complete homemade quality ensured
bakery items free from any sort of harmful ingredient.
 Threat of substitute products:
Substitute products of cake can be other sweet items. Such as, different kinds of
pitha, mistry etc.
III. SWOT Analysis:
 Strength:
Our strength lies in the fact that we have a wide range of flavors in cakes that can
meet the needs of a wide range of customers. Our price is also less than others.
 Weakness: The Fact that we are doing an online based cake bakery business in our
Dhaka city with other cake bakeries might pose a challenge for us.
 Opportunity: The opportunities available to us are unlimited. We can increase our
flavors in cakes, we can add other bakery items with cakes etc. If we can generate
enough profit we can have our own outlet store.
 Threat: The threat that is likely going to confront us is the fact that we are competing
with already established bakery businesses.

5. Business Model
a. Business Model CANVAS

A business model describes the rationale of how an organization creates, delivers, and captures
value. It is a simply the most efficient tool to create & analyze business models. It not only helps
to create new business models easily but, also analyzes & updates the existing business model of
any sort of business and stand at the similar position for the two online bakery shops as well.

The nine building blocks for “Gray Hub” and “It’s Food o’clock” is built below highlighting about
how the pages are creating, delivering and capturing value in their respective market are elaborated
below:

i. Customer Segments

 We haven’t targeted people basing on any specific age, gender, group or class. Rather
it’s for everyone who wants to have bakery items whatever the reason or occasion be.
 Focusing on the current period of crisis of getting fresh and hygienic bakery items, we
are offering the complete homemade quality ensured bakery items free from any sort of
harmful ingredient.

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 ii. Value Proposition

 We are offering them homemade freshly baked bakery products safe from all sorts
of unhygienic ingredients prepared in clean homely environment.
 The thing that is done for our consumers through the business is that they get relaxed
about the quality and safety of the food they are consuming while enjoying a better
and unique range of bakery items compared to that of the established physical stores
out there with the facility of home delivery service and desired customization.
 Most important factor is that the consumers highly care about the matter as it is about
their health related issue.

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 iii. Channels

 Both businesses are online based so the way to reach the customers is through internet and
the main source is the social media platform which is at the present moment “facebook”
and “Instagram”. Both the pages are now mainly focusing on delivering quality and unique
designs and a good number of flavor variation of cakes, cupcakes and taste blast cups via
connecting more and new followers every day.
 The main interacting points at such initial stage are the reviews and recommendations
posted by the consumers, as word of mouth plays a very significant role over here. Posting
the baking works to stay engaged with the people the pages are already connected with is
another important task as it keeps the consumers out there updating about the available
services and unique bakery items the pages are offering.
 Being online based stores, the delivery of the products is another most important factor
that the pages cannot neglect and so, both the pages after almost a month of research has
managed to get connected with a delivery agent who is ensuring to deliver the ordered
products charging the lowest possible amount as “delivery charge” ensuring to deliver the
products safely to the consumers. Again, for the convenience of the consumers, the pages
also offer the “pick up point delivery” service through which consumer and the respective
page owner fixes a location convenient for both of them to handover the order bakery
items.

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 iv. Customer Relationships

 The relationship that the pages are trying to build up with their customers is of trust
and stability basing on which not only the present customers would come and make
their purchase for once or twice but, would become loyal to the pages being satisfied
by the quality served at such lower amount of cost price and get to the stage of being
a loyal customer and would further encourage other people to make purchase from
these two pages.
 Again, thinking about the budget problem of a segment of customers who are
students, the page has come up with a solution of offering “student budget friendly
cakes” (400gm for 400bdt) keeping the price lower than the bakery shops available
in the current market. And this service is simply playing a very significant role of
attracting student customers and building a good relationship basing on this particular
step.

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 v. Revenue Streams

 Quality and price are two most core factors that highly affects consumers’ decision of
buying and being loyal to a particular brand or company. If we talk basing on the current
situation of the market, those who offers bakery items at an affordable range, drastically
failing in ensuring the quality and hygienic baking environment. Again, those who are
ensuring the safety and hygienic environment, charging too high which is not affordable
for all classes of people. At such situation, these two pages came up with both the
facilities of budget friendly bakery items ensuring quality and hygienic bakery
environment offering a huge range of variation of flavors and types of bakery items and
these are the two cores and the strongest points those not only to attract consumers but,
also give them enough reason to stay loyal to the respective pages.
 Being in the most initial stage, both the pages collaborated and conducting the
promotional event, not only promoted their respective pages but, also managed to raise
the invested amount in the entire promotional event by launching their most unique
“taste blast cups” (yet not been introduced by any other bakery shop) and selling those
at the promotional price of 40bdt (sold for 65bdt each in the pages at regular times) but,
also earned profit from the promotional event and increased their followers in their
Facebook pages.

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 vi. Key Resources

 At this stage of the business, both the page owners are completely focusing on their
quality maintenance and trying their level best to come up with more innovative
bakery items to create a huge variation in their menu offerings like they did by giving
cupcakes a complete new and different look and adding “taste blast cups” in their
menu which is totally a new bakery product.
 The most important resources for a bakery shop besides the baking ingredients are the
baking utensils which includes different size and shapes of baking pan, non-stick
cupcake pans, piping nozzels and bags, spatula and oil brush, frosting scrappers,
rotating cake stand, packaging accessories and cake boards. In order to collect these
key resources, both the page owners preferred to go and buy these things from Chowk
and Kaptan bazaar, directly from the wholesalers to avail the least possible price.
 The baking ingredients are collected from Chaldaal.com for the most convenient
shopping that too at the least possible price without even stepping out of the house.
Both the shops are now planning to promote the source as their key resource partner
in their respective pages in order to avail some reward discounts while shopping to
minimize the production cost.
 Another important point to be noted for the production process is the baking process
which is either to be done using oven or should be done in the traditional method,
baking in gas stove. As it is the initial phase and cost cutting is a major factor that too
without affecting the quality and taste of the product, the page owners have chosen to
bake through the traditional method to cut off the electricity costs caused for using an
oven for baking process.

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 vii. Key Activities

 The first and foremost key activity for the pages are to maintain their quality, taste and
innovative bakery work and continuously showcasing those in their respective social
media platforms to keep the consumers engaged and attract new customers.
 As mentioned before, both the pages are online based and so, both the owners need to be
very much active when it comes to engage its audiences and consumers about all the
available and future coming goods and services.
 Both the pages need to be very much careful about their online activities as it is the basic
activity to attract, engage and grab consumers and get them reach the buying stage.
 “Word of mouth” is one of the most important key activity that plays a significant role in
attracting and maintaining customer relationship and to make them potentially loyal
customers. So, maintaining the “review and recommendation” part is equally important
as that of maintaining taste, quality and service of the pages.

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 viii. Key Partners

 The partner that leverage the business models of both the pages right now is the sources
from where they collect their baking ingredients and their delivery agent. As the business
is small and the prices of the items are also lower than that of the other bakery shops, so,
maintaining the delivery charge at a balancing rate is also a crucial thing to be
maintained.
 To reduce time consumption and also to keep the cost for raw materials at a minimum
rate, Chaldaal.com is another key resource partner in delivering all the necessary baking
ingredients at a lower price than that of the regular ones that too at the door step within
2-3 hours from ordering period.
 The suppliers of the packaging accessories are also an important key resource to be
mentioned as the good’s finished look after packaging is very much important to make
it look better and attractive from the outside keeping it intact from the outside pollution.

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 ix. Cost Structure

 The resulting cost structure is the process of baking till the finished product to be
maintained at the least possible price by cutting off all sorts of extra or unnecessary
costs and for this at the initial stages, the business owners have decided to cut off the
‘labor cost’ by handling the entire process from maintaining the social media
platforms to baking to packaging and handling the finished product to the delivery
agent solely without employing any employer for assistance.
 The key elements that drive the cost structure of the businesses are the fluctuating
price of sugar and egg which are very much important baking ingredient.
 To eliminate the electricity cost, the business owners have chosen the traditional
method of baking on gas stoves using stand instead of baking in oven is another cost
driven factor.

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 b. Pricing Model

The pricing model of both the pages are made keeping in mind the prices of the other bakery shops
whether physical or online. The prices are charged comparatively lower than almost all the
available bakery shops as business penetration price to grab a nice amount of share in the existing
bakery market. A simple demonstration of the prices of both the page’s products in comparison to
an already established bakery shop is highlighted below:

VERSUS

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 c. Social Goal

The current phase of Bangladesh’s food market is passing a situation where every day the Mobile
Court is raiding restaurants and bakery factories in order to inspect their work place and
environment to ensure whether it is up to the mark or not. But, unfortunately, nowadays the news
of such compensations is availing that the restaurants are being charged in huge amount of
compensation for not maintain their cooking of baking environment and using harmful and expired
ingredients in their baking and cooking process. For example, last month, the renowned restaurant,
“Atrium” was charged a huge amount of compensation for its unhealthy cooking environment.
Again, the renowned bakery shop, “Mr. Baker” was charged 5 lakhs taka as compensation in the
year 2016 for its unhealthy baking environment in the factory and for usage of harmful chemicals
in the baking process. So, at such circumstances, coming up with the initiative of serving
homemade, freshly baked bakery items ensuring the quality and taste both in an innovative way is
in itself a revolutionary act to not only attract customers but, can also be counted as a social goal
of serving quality bakery products that too within a reasonable price.

d. Sustainability
Discussing about the sustainability factor, it can be said that for both the pages, it is a crucial stage
to pass which will determine how much and to what extent both the businesses will grow and
sustain. The decision of not employing any baking assistant to cut off the labor cost is so far a wise
decision for both the business owners as it is helping to generate more revenue after the deduction
of all the incurred costs. The amount in which the business owners are receiving orders is quiet a
satisfactory one and the revenue income is also a handsome amount for further saving (for future
investment), using to buy raw materials for production process and so on. The sustainability factor
more depends on the future actions regarding the expansion of the businesses.

e. Eco-friendly

The entire business, starting from collection of raw ingredients to baking, frosting, packaging to
delivering the finished goods is nowhere harmful to the environment or it can also be said that the
entire process is eco-friendly. Because unlike any other production businesses, none of the
business owners use any sort of ingredient which is harmful or are doing any activity that pollutes
the environment. For example, for packaging, to ensure the quality of the bakery products, these
are initially packed in one time used cups, wrapped up by air tight wrappers and finally packed in
hard cardboard boxes. This entire packaging process is done to keep the bakery products intact
from outer pollution and all the packaging items are degradable in eco-friendly manner.

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 f. Ethical

Talking about the entire business process and tasks, each and every act is accomplished keeping
in mind all the ethical manners one should consider while doing business. The ethics that should
be considered by the respective business owners are highlighted below:

 To maintain quality of the product

 To deliver bakery items as promised to be delivered
 No harmful ingredient, for example, expired ingredient should be used in baking process
 Deliver products maintaining proper weight and size of the products clarifying everything
in detail to the consumers
 Should not commit anything that cannot be delivered
 Every customer should be treated nicely with utmost patience

These are the core ethical factors that are must to be maintained in order to run the business and
sustain in the respective market. Bakery business is meant to be a prosperous and successful one
if the consumers are convinced about the superior quality of the product and knows that the taste
of the served cakes are similar or better than those available in the market.

6. Description of ventures
A. Products:

As both of our pages mainly focus on freshly baked homemade items and strictly maintains related
hygiene issues. Our targeted customer are mainly Students, New job holders and Low Income
range peoples to spread sweet happiness with budget friendly baked items like,

 CAKES
 PASTRIES
 CUP CAKES
 MOUSSE CAKES
 CUSTOMIZED CAKES (Customer’s Choice)

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 B. Services:

It is an online based bakery business, we also run this business like other typical online business
system, we take orders and give home delivery just ours budget friendly, fresh and faster delivery
system added new value for our business. Customer location near to us we also offer them if they
want, they can directly pick their ordered item personally in this case they can save the delivery
charges. As we also provide customized cakes so one can tell us what they like in their cakes and
what don’t. Many of our customer order cakes for diabetes patient in this cake we adjust the sugar
level, offer them gluten free cake or ask their specific choices. Give customer better service now
we only follow:
 FRESH
 HOMEMADE
 FAST DELIVERY
 CUSTOMISING

C. Mission: Our mission statement:

It’s Food O’ Clock ‘’Find healthy, tasty homemade foods of your choice to satisfy your food
cravings”
Gray Hub “Your destination to homemade freshly baked cakes’’

Both of this pages offer you to grab your cakes, make a sweet sin, ditch calories we assure for that
you won’t regret!

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Successful venture:

We all know that the bakery products demand and its cost is very high, sometimes we purchase
low cost bakery items that doesn’t up to mark or suit our taste bud, here our pages come up with a
strategy that is budget friendly cakes and other bakery products. We offer our customer high
quality bakery products in affordable price. As we meet our segmented customer’s requirements,
we will be their first choice to buy cakes. So far, our strategy works and hope this will take us to
touch our goal soon.
Developing Work:

For a sustainable business you have to adapt changes and put this changes into your business to
make variation for your customer. Firstly, you have to know what your customer exactly wants,
their desires, likes, dislikes. So, we did a research on customer taste, wants and what change they
want after that we go for this online business. Still we work on it, day by day we create new
variation, work on to develop our existing strategy to create value for our customer based on their
reviews.
Future of Physical Store:

As it is a startup business and we are still doing our studies, haven’t that much capital in our hand
that we can open a physical store for our customer. This is very crucial period, so for now we are
just focus on raise our capital that in future we can come up with a physical store.
Gathering Experiences:

Whenever we launched a product in our list, we take customer responses. Just a month ago we
before we launched our new cupcake mousse, we arranged a cupcake fest in “North South
University” for both of our page’s promotional purpose. We sold our cupcakes in a very low
promotional price and we successfully sold them all. We got a huge response from the students of
“North South University”. After that finally we launched our cupcake mousse. It was a great
experienced, we have learned how to handle customer more efficiently, how to describe about our
product to them, what they like, what they want, what changes we should bring, what more item
we of their choices we should add in our menu that help us to do our better business.

7. Production plan/Service delivery model

A. Manufacturing process of cake:
 We have to add cake ingredients which consists of wheat flour, eggs, sugar, milk powder,
water, flavorings.
 Second step is to mix the cake batter. We have to mix the batter in a mixer for at least 10
minutes.
 Then we have to fill up the mold with batter.
 Carefully put the mold in a pre-heated oven and wait till the batter rises.

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  After baking, the cake must be thoroughly and carefully cooled so that it does not collapse
and lastly we have to decorate the cake.
B. Machinery and equipment:
To bake cake we need some important things like Measuring Cups, Spatula, Pastry Brush,
Whisk, Baking Pan, Hand Mixer/Stand Mixer, Parchment Paper, Oven, and Whipping
Machine.
C. Suppliers of raw materials:
Though our business is not big enough there are no big suppliers of “Its Food o’clock” and
“Grey Hub”. For now we collect our raw materials from the Chowk and Kaptan bazaar,
directly from the wholesalers to avail the least possible price. We sometimes buy raw
materials from super shops such as Shwapno.

8. Operational plan
A. Description of company’s operation
We always keep ready all the raw materials which are going to be used to prepare the cakes.
When we get any order on online through our pages we prepare the cake according to the
requirement. Then we deliver the cake or we ask them to receive the product based on the
situations.

B. Flow of orders for goods and/or services

Per week we are getting 6 to 7 different types of order from the two pages.
C. Technology utilization
Right now we have only Facebook pages through which we are taking orders. But very
soon we will develop our web page/ website and open an account on Instagram. Apart from
that we try to reinvest from our profit to buy new and updated equipment or machines to
make cakes.

9. Market plan (7 P’s)

a) Product
Both the online stores deal with all sorts of cakes and cupcakes. In order to maintain a uniqueness
in each of the variety, both the pages are not only providing unique and customized designs of
cakes but, at the same time have introduced “taste blast cups” which actually is a cake that comes
in a cup.

Now, at this point, this thing can be termed as the USP of both the pages as no other online or
physical bakery store has come up with the option of serving cupcakes in cups. Basing on the
similar types of product in the market, the product’s USP, Point of Parity and Point of Difference
are highlighted below:
 Unique Selling Proposition

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  Comes in disposable cup (the cupcakes and taste blast cups) which means no more messy
cream or frosting on hand
 Point of Parity
 Available in different flavors
 Customization availability
 Point of Difference

 Available in fusion flavor, such as, ChocoBerry which is fusion of chocolate and
strawberry flavors.
 Balanced sweetness which means not excessively sweet like the available one’s in the
market
b) Pricing

The price of the products of both the pages are made keeping in mind the prices of the other bakery
shops whether physical or online. The prices are charged comparatively lower than almost all the
available bakery shops as business penetration price to grab a nice amount of share in the existing
bakery market. A simple demonstration of the prices one of the page’s products the pictures
including the respective prices are presented below for proper understanding:

Gray Hub
 Product category- Cupcakes
Sold in bulk of 6 pieces in each box, namely Treasure Box as shown in the pictures:

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 Product category- Taste Blast Cups
Sold in bulk of 5 pieces in each box, namely Taste Blast Treasure Box as shown in the
picture:

 Product category- Cakes

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  Product category- Customized cake

c) Promotion

For effective promotion there are a number of marketing promotional tools that can be utilized in
promotion program. So do both the pages have, but, still it should be applied carefully according
to the current market circumstances, because every promotional tool is suitable to certain
circumstances. The marketing tools that the respect online pages are going to use are given below:

 Digital Marketing via Facebook, Instagram- because both the pages are online based and
at the current stage, operated through facebook page

 Event Marketing- for public exposure, direct marketing and direct communication with
custmers

 Review by famous food bloggers- because “Word of Mouth” matters especially when it’s
about food and as both the businesses are online based so food blogger’s review and
reference basically plays a very significant role in this stage

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  Discounts and sales promotions on different occasions- because it is the ultimate way to
reach to our customer’s good book by offering them discounts on the special occasions
when they actually want to have such dessert items in their menu.
d) Place

As mentioned earlier, both the businesses are completely online based so, at this stage no specific
place cannot be mentioned. Though online based, yet after a certain period of time, by investing a
certain amount as capital again, physical stores can be taken for expansion of business. Even in
this case, the place will be determined by observing the delivery spots from where maximum orders
are received and by creating poll in the respective facebook pages by asking to the customers that
which place would be more convenient for them to visit for purchase and thus on the basis of the
customer’s choice and business owner’s convenience, the place will be selected.

On the other hand, for event marketing, stalls can be given in premises like schools, colleges,
universities or shopping malls which would be announced in the respective pages as well as famous
facebook communities and groups to make people aware about the event.
e) Packaging

The packaging of bakery items is a complicated issue as the tendancy of cake’s frosting being
smashed due to displacement issues is really high. There is also an important issue of packing the
products in such a way that the food remains intact and hygeine remains well maintained. That’s
why, the cakes of both of the pages are packed in hard paper boxes and then put inside a fabric
bag. Where, on the other hand, the cupcakes and taste blast cups as mentioned before comes in a
disposable plastic cup. Firstly, these are wrapped up by a transparent foil paper and then put inside
cardboard box. A simple demo is given below:

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f) Positioning & Targeting People
 Segmentation

 Demographic: Everyone because all groups of people more

or less love to consume cakes and cupcakes

 Geographic: Primarily in Dhaka and after a certain period

will go for physical stores and then depending on market situation
will take necessary initiative to expand locally.

 Targeting

 Basically there’s no specific class or group of people that

could be targeted rather the target is everyone. Whoever likes cake
and cupcakes and can afford these are fallen under target customer.

 Positioning
 Lower calorie consumed cakes and cupcakes

 Cupcakes that actually comes in cups as indicated by the

name “cupcake”

 Mini version of cake in size of a cupcake, which means

whenever you are craving to have a tiered frosted cake, you don’t
need to buy an entire cake but, you can buy a simple taste blast cup
to satisfy your cake craving that too without even spending extra
money and intake of too many calorie of a whole cake.

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10. Organizational plan
A. Form of ownership (1. What is the form of ownership of the organization?)

Our business is a partnership business. We are the four partners of this business. We share
management and profits.

B. Identification of partners or principal shareholders (2. If a partnership, who are the

partners and what are the terms of agreement?)
Wahida Nasrin, Anika Ibnat, Mst. Sinthia Aktar and Maisha Ahmed we are the four partners
of this business. We don’t have any written agreement.
C. Roles and responsibilities of members organization
We all are involve in the planning process. We all generate ideas and share our ideas with each
other. Mst. Sinthia Aktar and Maisha Ahmed are involved in product design, product making,
accounting and sales. Wahida Nasrin, Anika Ibnat are involved in marketing, management and
organizing.

11. Assessment of risk

A. Weakness of the business:
 For online business it is very hard to Gain Popularity because there are other
competitors in the business.
 You have to be Creative in terms of decoration so that we can assure the best
product.
 Though most events are scheduled for weekends so you will need to be sure that
you have enough time available to deliver cakes.
B. New Technologies:
In terms of baking new technologies are not so important but as our business is online
based so we may need technological advancement to reach more customers. Now we
collect order through the Facebook page of our business. Later on we can launch an app
for taking orders.
C. Contingency plans:
We are looking forward for a physical store after next four years. We are also trying to
create new flavors in cakes according to the taste of our customers. As all of us who running
the business are students so it becomes very difficult for us to taking orders regularly. It is
also a barrier to generate profit. So, in future we will try to take orders regularly which will
help us to make profit. We can use that profit in our business in many different ways.

12. Financial plan (Maximum 5 years with analysis yearly analysis)

A. Assumptions: The financial plan depends on important assumptions.
 We assume access to equity capital and financing sufficient to maintain our
financial plan as shown in the table.

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  We assume there are no unforeseen changed.
General Assumptions

Year 1 Year 2 Year 3 Year 4 Year 5

Current interest 0% 0% 0% 0% 0%
rate
Long term 0% 0% 10% 10% 10%
interest rate
Tax rate 0% 0% 25% 25% 25%
Other 0 0 0 0 0

B. Pro-forma Income Statement (BDT)

2019 2020 2021 2022 2023
Total sell 143,400 tk 167,300 tk 191,200 tk 330,000 tk 550,000 tk
Cost of goods 83,400 97,300 111,200 166,800 278,000
sold
Gross profit 60,000 70,000 80,000 163,200 272,000
Operating 12,000 12,000 80,000 80,000 80,000
expenses
Earnings 48,000 58,000 20,000 83,200 192,000
before income
taxes
Tax 0 0 5,000 20,800 48,000
Net income 48,000 tk 58,000 tk 15,000 tk 62,400 tk 144,000 tk

C. Cash Flow Projection (BDT)

2019 2020 2021 2022 2023
Beginning cash 50,000 tk 98,000 tk 156,000 tk 176,000 tk 259,200 tk
Cash inflows
Sales 143,400 167,300 191,200 330,000 550,000
Total 143,400 167,300 191,200 330,000 550,000
Cash outflows
Materials 83,400 97,300 111,200 166,800 278,000
Wages 48,000 65,000 65,000
Others 12,000 12,000 12,000 15,000 15,000
Total 95,400 109,300 171,200 246,800 358,000
Cash flow 48,000 58,000 20,000 83,200 192,000
Closing balance 98,000 156,000 176,000 259,200 451,200

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 D. Pro-forma Balance Sheet (BDT)
2019 2020 2021 2022 2023
Assets
Cash 18,700 tk 18,700 tk 18,700 tk 18,700 tk 18,700 tk
Equipment 31,300 41,300 60,000 80,000 80,000
Total 50,000 60,000 78,700 98,700 98,700
Liabilities
Accounts payable 25,000 25,000 25,000 30,000 25,000
Owners’ equity
Capital 25,000 35,000 53,700 68,700 73,700
Total 50,000 60,000 78,700 98,700 98,700

E. Breakeven Analysis
Year 2019 2020 2021 2022 2023
FC 50,000 50,000 50,000 50,000 50,000
(Fixed Cost)
VC 95,400 109,300 121,200 246,800 358,000
(Variable Cost)
TC 145,4000 159,300 171,200 296,800 408,000
(Total Cost)

Breakeven Analysis
600000

500000
SALES, FC, VC, TC

400000

300000

200000

100000

0
0 300 units 350 units 400 units 600 units 800 units
UNITS SOLD

Sales FC VC TC

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 F. Growth Analysis
Year 2019 2020 2021 2022 2023

Total Sales 143,400 167,191 191,200 330,000 550,000

Growth
600,000

500,000

400,000
Sales

300,000

200,000

100,000

0
Year 2019 Year 2020 Year 2021 Year 2022 Year 2023
Year

Sales

G. Source of Fund
As this is a tiny bakery shop which is mainly online based. We are thinking about expansion
and move to a physical store in 2024. In that time we will need a huge amount of money.
We are doing business till now with “personal fund” but in 2024 we will need a big
investment. So, we will go for family and friends for more fund by offering them equity.
Here we will get benefits of easily obtain money and they have more patient than other
investor.
H. A specific investment ‘deal’ proposal for the investors
We are assuming that after 5 years this tiny bakery shops’ value will be 1,000,000 lakhs.
After 5 years we will need more 500,000 lakhs as investment. We are assuming that the
investor will ask for 6 times require rate of return, that time we offer them a certain number
of ownership which we calculated by below formula.

Venture capitalist ownership  Companys

Venture Capital Investment × Venture Capital Investment Multiple Desire
′ Projected Profits in Year 5 Multiple of Comparable Company ×Price Earnings

500,000×6
 1,000,000 ×10

 0.3

 30% equity.

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13. Reference
 Facebook.com. (2019). Gray Hub. [online] Available at:
https://www.facebook.com/CuppaCakeClub/?__tn__=%2CdK-R-
R&eid=ARC0rpB9LwAeQ1w8G2deO7B43lJ8A0-hKLWnzdE-Y7c4-
e2PEblII8K5hqmck83C-_31uPqKiMOrGCod&fref=mentions [Accessed 18 Dec. 2019].
 Facebook.com. (2019). It's Food O' Clock. [online] Available at:
https://www.facebook.com/FlavoursofHome8/ [Accessed 18 Dec. 2019].
 Profitableventure.com. (2019). Starting a Cupcake Business from Home With No Money
| ProfitableVenture. [online] Available at: https://www.profitableventure.com/starting-a-
cupcake-business/ [Accessed 18 Dec. 2019].
 Facebook.com. (2019). Baker's Cupcake. [online] Available at:
https://www.facebook.com/bakerscupcake/ [Accessed 18 Dec. 2019].
 Facebook.com. (2019). Pastryarchy. [online] Available at:
https://www.facebook.com/pastryarchy101/ [Accessed 18 Dec. 2019].
 Theriault, M. (2019). 7 Business Lessons from Gourmet Cupcakes | AllBusiness.com.
[online] AllBusiness.com. Available at: https://www.allbusiness.com/7-business-
lessons-gourmet-cupcakes-9916-1.html [Accessed 18 Dec. 2019].

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