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Business Plan for Pretty Little Cakes Bakery
Bakers of quirky, fun cupcakes with unusual flavours, our favourite being Raspberry Fudge!
Company Summary
Pretty Little Cakes is a bakery that is located in Somerset West on a street front shop. The company’s quirky and fun corporate image will play a leading role in attracting new customers.
The bakery is owned by two sisters, who are equal partners in the company. The start up costs will be financed by themselves, as they have invested a sum of R150 000 in the business. The company plans to build a strong market position in the town, due to the partners’ industry experience and relative low competition in the area.
Company Ownership
Pretty Little Cakes is a Partnership, with the two owners have an equal share of the company.
Start-up Summary
Pretty Little Cakes is a start-up company and they have each invested in the company to fund the start-up costs. These will include:
Advertising and Promotion costs
Kitchen equipment
Interior decorating for the shop
Ingredients for the products to be baked
Kitchen utensils
Custom made Crockery
Insurance
Bakery accessories, i.e. paper bags, cartons, etc.
Products
Pretty Little Cakes Bakery offers a wide variety of unusual flavoured cupcakes, including: Rainbow Cupcake, Gingerbread flavour, Banana Rum, Rose Petal, Raspberry Fudge and old time favourites like Red Velvet, Vanilla and Strawberry.
The bakery will provide a fresh batch of cupcakes at all times during business hours and will also bake to order for orders larger than 12 cupcakes.
Market Analysis Summary
Our focus is on meeting the demand of our regular customer base, walk in customers and tourists.
Market Segmentation
Pretty Little Cakes focuses on the middle- and upper-income markets. These market segments consume the majority of the cake industry.
Our target market consists of the following groups:
The Parties Group
This group orders in advance and will be targeted by word of mouth marketing and by advertising extensively.
The Individual Buyer or “Walk-in” Group
We will focus on window display to attract passersby.
Local Residents
Pretty Little Cakes wants to establish a large regular customer base. This will establish a healthy, consistent revenue base to ensure stability of the business.
Target Market Segment Strategy
The main target market for PLC is the returning customer that lives in the neighbourhood. We will focus on offer a personal customer service to enhance customer satisfaction, and will aim to supply the best products on offer at a competitive price. We believe that this is key to maintaining the local market share of this target market.
Service Business Analysis
The retail bakery industry in Cape Town has recently experienced rapid growth. Customers have become accustomed to the supply of unusual speciality cakes of a high standard, and Pretty Little Cakes will position itself to cater for this fastidious market.
Pretty Little Cakes bakery competes in the Food Services Industry. In addition to competing with
other specialized cakes bakeries, it competes with coffee shops and deli’s in the area.
Competition and Buying Patterns
Competition in Somerset West is fairly low and does not provide the same quality and good service that Pretty Little Cakes does. The local customers are looking for a high quality product in a relaxing atmosphere, where they can meet friends and refer family to.
Currently there is one other bakery in Somerset West that provides cupcakes:
Serendipity Cupcakes – they also have daily freshly baked cupcakes, but they offer more traditional flavours. Their biggest strength is that they also supply other baked goods such as tea time snacks.
Strategy and Implementation Summary
Pretty Little Cakes will succeed by offering customers high quality cupcakes, with a quirky and fun approach. We will supply visually attractive cupcakes which have unusual flavours.
Competitive Edge
Our competitive edge is our unique flavours of cupcakes. We will invent new flavours and recipes regularly to keep our product offering fun and interesting and to motivate our customers to return to our bakery.
Sales Strategy
Our strategy focuses on building a customer base by providing good customer experience and with extensive advertising in the neighbourhood.
Sales Forecast
Please insert a Sales forecast graph here, indicating the projected sales for 12 months.
Management Summary
Laura Fields has extensive experience in baking and has been supplying a large customer base from her home for the last 4 years. She will be assisted in Managing the bakery as a retail entity by her sister and partner, Samantha Taylor. Samantha has been the national buyer for the Wholesale Baking Company since 2004, and recently joined her sister at Pretty Little Cakes after investing in it.
Personnel Plan
Once the bakery becomes established and the cash flow is steady, we would like to hire an assistant baker.
Financial Plan
Please refer to our Financial Plan page for more information on what the Financial Plan entails.
Break-even Analysis
Please click here to download the Break-even point calulator.
Projected Cash Flow
Click here to download a Cash Flow template.
Projected Income Statement (Profit and Loss)
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Projected Balance Sheet
Click here to download a Balance Sheet template.
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