Bakery Business Proposal

Thank you very much for the meeting yesterday. I am extremely excited to start my own bakery business on Main Boulevard, Tigard and looking forward to your company to financially assist me to set up this business. I have prepared this proposal for you, with all the details. I would like your company to have a look at the entire opportunity and share your assistance to support my business idea

Let me know if you have any reservations or queries.

Regards,

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Elaine Morris

XYZ Bakery Business Proposal

Business Summary

I would like to open up a bakery on the Main Boulevard in Tigard, next to the Arabic Restaurant. It will be a ‘counter service’ bakery and the customers will be able to walk in, place their orders and pick up the baked items. My aim is to share happiness and smiles through sweet indulgences. I am a certified chef from the ACF. I love baking and it’s my passion since I was a little girl. Most of the recipes are my own and some of them have been passed down through generations. XYZ will be a wholesale bakery providing a huge variety of cakes, bread, and pastries. The ingredients used will be the finest and top quality. As ABC is a top Venture capital firm and you support talented entrepreneurs, I would like you to provide me the necessary finances to start up my business.

Products

I plan to sell the following products:

Cakes

  • Cupcakes
  • Muffins
  • Novelty cakes

Pastries

  • Croissants
  • Pies
  • Cookies

Bread

  • Whole-wheat
  • Buns and Rolls
  • Flatbread

Business Summary

Hours of operation:

Monday -Sunday: 9am -5pm

Location:

Main Boulevard

Items sold:

Baked goods

Workers:

3 workers will be hired

Problem Statement

People living alongside the Main Boulevard get their baked goods from the bakery section of the XMART hypermarket, which lacks variety and freshness. Moreover, most common products are usually out-of-stock because of the high demand.

Objective

Our main objective is to set up a bakery for the ease and convenience of our community people. Also,

  • To provide freshly baked comfort food.
  • Create such an outlet that provides our consumers with a wide variety of baked goods.
  • Gain profitability within the first couple of years and start strategizing about expanding the business.

Location

The main Boulevard is a very lively and happening place at lunch hours and in the morning. There are a few offices, and universities within a walking distance. Renting a shop in such a location is a bit costly. Shop number 6 is a 3,500 square feet shop and currently, there is a working kitchen in the shop, but a little remodeling needs to be done. There are usually a lot of activities being held at this place, attracting hundreds of people. The most wanted and demanded thing at a place, with such a footfall, is food.

Production

All the items will be baked and prepared in the shop’s kitchen, on-site. There will be a main Head Chef for preparing the pastries, bread and cakes and an assistant for helping. The assistant will also be responsible for the inventory and purchasing supplies.

Market Analysis

Bakery items have been the nutrition products for people for quite a long time. This is because of the convenience factor and product availability. Bread has been a staple morning breakfast of many national and international cuisines and shares the majority of market share in the industry of bakery items.

Competitive Analysis

Currently, there is an XMART in the area where people buy their baked goods from. All the other bakeries are far from the Main Boulevard so XYZ will be the only bakery providing solely freshly goods within the radius of 10 miles.

Marketing

I plan to advertise in all mediums, print, Internet, Social Media, and Radio. I will print advertisements in all newspapers and magazines. Also, I will place ad banners on the internet to make people aware of our brand. Also,

  1. Website: Create a website about the XYZ bakery. Mention all the products that are being sold and all the running promotions.
  2. Social media pages: Create social media pages and advertise the products.
  3. Newspaper: Print ads in all the local community newspapers.

Start-up Cost 

We would like ABC to initially grant us a loan of $50,000. Estimated start-up expense details are provided below:

 

                      Names Cost
Legal paperwork $1,000
Marketing $1,000
Shop Renovation $2,000
Shop rent (1-year advance) $5,000
Insurance $5,000
Bakery facilities $10,000
Equipment $10,000
Inventory $40,000
Cash $5,000
Miscellaneous $1,000
Total $80,000

 

Legal paperwork includes getting approval from the concerned authorities, obtaining licenses and permits. Equipment includes furniture, shelves, electronic devices, CCTV cameras, etc.

Running Cost

Expenses for each month will be the following:

 Names Cost/month Cost /year
Employee Salaries $500 $6,000
Utility Bills $500 $6,000
Miscellaneous $500 $6,000
Total $1,500 $18,000

 

Loan Requirement

In order to set up this bakery and sustain it, I’ll be needing a sum of approximately $100,000. I am financially capable to put in half of the amount and seek your esteemed firm to lend me $50,000, for a period of five years.

Sales Forecasts

This bakery will surely attract a large number of consumers because of its authenticity and specification. I am very optimistic and certain that we will break even within the first couple of years and start generating profit by the end of the third year. Below is the sales forecast for the first fiscal year, based on information collected in the field.

 

Items Forecast Sales
Bread $35,000
Cakes $35,000
Pastries $25,000
Drinks $5,000

 

First 6 months: $50,000

First fiscal year: $110,000

Second fiscal year: $280,000

Financial history

My credit reports and credit scores show that I have a 700+ score and this should give you enough confidence in me and my entrepreneurial skills.  I appreciate it if you can accommodate my financial support request with a minimum interest rate and a reasonable monthly installment.

Future plan

  • I want to make XYZ an online store so people would be able to order items online and get them delivered at their doorstep.
  • I would like to open more branches of the XYZ bakery store all over the USA.

Approval

I would like to seek your approval to proceed with the necessary arrangements. After your approval, I will initiate the process and we must work on the Terms and Conditions for the future.

Contact Us

You can contact me with any of the following ways:

Phone: 333-1145511
E-mail: xyz@gmail.com

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