6 .

Financial Plan

Nanati Bakery expects to raise $110,000 of its own capital, and to borrow $100,000 guaranteed by the SBA as a ten-
year loan. This provides the bulk of the current financing required.

FSB is a start-up company. Financing will come from the partners' capital. The following chart and table illustrate
the company's projected initial start-up costs.
Capital: 300,000
Start-Up Expenses:
- Legal: $3,000
- Rental: $24,000/year
- Equipments: $40,000
- Decoration: $20,000
- Advertisement: $1,000
- Raw Materials: $5,000
- Security Camera: $2,000
- Utility: $500
- Other: $3,000

=>Total= $98,500

 Determine the amount of money needed with your project including investment costs (building and
civil works),
 pre operating costs, and running costs/working capital, and
 maintenance and support fees in order to determine the overall project cost).

6.1 Project Cost

The total investment cost of the project including working capital is estimated at Birr 300,000.00 (three hundred
thousand Ethiopian Birr only). The details of the costs are listed in the below table.
 Item Unit Quantity Unit Total
rate
A- House Rent month 1 25,000.00 150,000.00
Total A 150,000.00
B- Reading Materials
Fiction pcs 500 50.00 25,000.00
Academic pcs 200 80.00 16,000.00
General Knowledge pcs 300 40.00 12,000.00
Language pcs 100 60.00 6,000.00
News papers pcs 240 10.00 2,400.00
Magazines pcs 200 15.00 3,000.00
E-books set 1 30,000.00 30,000.00
Total B 94,400.00
C- Furniture
Chairs pcs 40 800.00 32,000.00
Tables pcs 10 1,500.00 15,000.00
Shelves pcs 1 10,000.00 10,000.00
Book Shelves pcs 10 8,000.00 80,000.00
Utensils set 1 50,000.00 50,000.00
Total C 187,000.00
D- Labor
Manager Person 1 36,000.00 36,000.00
Cashier Person 2 15,000.00 30,000.00
Attendants Person 6 7,200.00 43,200.00
Coffee Guy Person 2 7,800.00 15,600.00
Total D 124,800.00

Total 556,200.00
Contingency 20% 111,240.00
Grand Total 667,440.00

1.1 Estimates of Sales, Production, and Profitability

(Make financial forecasts - estimates of capacity utilization rate, revenue, operating and administrative costs, projected profit and
loss statement, cash flow statement, including depreciation and amortization schedule).
 1.2 Sources of Finance

The source of the finance 30% of the total investment costs are covered by owner and the rest 70% of the costs
are covered via long term loan from Ethiotelecom credit association with interest rate of 8.5% and monthly account
payable installment from salary for maximum of 10 years or 120months.

Equivalent
Loan period 10 years
total cost of loan 300,000
total payback payment 446,348.40
yearly proportion Cost 44,634.84

1 Financial Analysis

(Describe what the return on investment would be for your project. Depending on the criteria used within your project, your financial
analysis may use ROI, IRR, NPV, Payback period and including sensitivity analysis).

2 Benefits and Impact Analysis

(Present in detail the benefits and impacts of your project).

3 Implementation and Monitoring Plan

Controls:

For excellence and success Dream Bakers need to:

1. Monitor cash flow statement.

2. Establish its reputation.

3. Continuously update its products and capabilities.

The following areas will be monitored very closely by Dream Bakers management;

1. Revenue: monthly and annual.

2. Expenses: monthly and annual.

 3. Client feedback

4. Improvement in product/business.

Implementation:

To achieve our desired goals and control budget all the strategies will be kept in mind for implementation.
(Develop implementation action plan for your project including key activities, the milestones, deliverables/expected results, and
success measures or the key performance indicators (KPIs) that will be used to measure the success of your project. This includes
the way the project is organized and managed to deliver the desired result).

4 Procurement Plan

All raw materials procured on need basis with 2 weeks look ahead period
Productions start only 24 hours prior to delivery date
Inventory review every Sunday to ensure sufficient stocking and avoid wastage
due to negligence
All prepared foods that that reach 75% of shelf life are backed up inventory and
sold at 30% discount
If production is complete for cancelled orders, customer is charged
Backed up inventory due to cancelled orders are reused for flash promotions
(Identifying products/services to sources from external suppliers/vendors along the time dimension)

5 Quality Plan.

Food Quality
Food production follows written procedures
Bakers are trained to strictly follow all processes
Food Safety & Cleanness
We follow all government regulations for food safety related to production and
Handling.
Cleaning operations daily and sites inspected weekly
All delivery vehicles inspected daily before loading
Equipment Maintenance
Baking equipment are leased, and monthly scheduled maintenance is part of
lease contract
Service Quality
Store front cleaned and maintained daily
Furniture/Fixtures checked every Monday

(Provide quality targets, assurances and control measures)

6 Risk Management Plan

(Highlight potential risks and actions taken to mitigate them - plan for managing risks and changes within the project system
including what need to be monitored and controlled on an ongoing basis towards the successful delivery of your project).
7 Marketing Plan

3.0 Product

MGOP Bakery Supplies offers the primary ingredients and supplies in baking, such as:

- Flour

- Shortening

- Margarine

- Sugar

- Baking Powder

- Milk Powder

- Yeast

- Bread Improver

- Baking Cups

- Food Coloring

- Food Flavoring

- Plastic bags and many more.

3.1 Price

Prices of the products would be ensured to be affordable to the public. Discounted price will be offered to

volume purchases and promotional items shall be given to customers or rebates.

 3.2 Place

The store is located at the local Public Market of Digos City, Davao del Sur. This will enable customers’ easy

access to the location of the store as it will be at the heart of the City.

3.3 Promotion

- The products available in the store will be organized neatly and orderly giving the

store a nice setting for customers to easily shop.

- There will be printed flyers given out to people walking by; also advertisements on

radio and television will be aired for broader reach to potential customers; ads in

social network sites will also be posted.

3.4 Customers

Customers of MGOP Bakery Supplies include bakeshops, pastry shops, catering services, school and

office canteens, and also, walk in customers.

3.5 Competition

Competition includes the supermarkets and grocery stores. To catch up to the competitions, the MGOP Bakery

Supplies offers high quality goods, good customer service and delivery service to the valued customers.

(Describe in detail everything that will need to be done to market your project product and the training program that will be needed
to help beneficiaries on how to use the output of your project).

8 Manpower Recruitment and Training Plan

President/Manager
• Responsibilities:
– Oversees daily production
– Work Schedules
– Assigning Employee Tasks
 – Traveling
– Ensures product quality
– Purchases raw materials
– Keeps facility running, and clean
– Accounting Duties
Head Baker
• Responsibilities:
– Working long hours
– Ability to follow recipes
– Ability to produce quality product
– Ability to use ovens and mixers
– Dishwashing and janitorial skills
Assistant Baker/Waitress
• Responsibilities:
– Assist in baking
– Operate Cash register and serve customers
– Dishwashing, and basic janitorial skills
Additional Training
All staff members will take the one day Safe Food Handling Course
Other food safety programs offered by SIAST will be taken

2.2 Personnel Plan

a) Manager (1)

b) Cashier (1)

c) Sales Clerk (1)

d) Utility (5)

e) Accountant (1)

Table 1.0. Personnel Plan

Personnel Plan 2014 2015 2016

Manager 1 156, 000.00 Php 171, 600.00 Php 188, 760.00
Cashier 2 130, 000.00 143, 000.00 157, 300.00
Sales Clerk 1 104, 000.00 114, 400.00 125, 840.00
Utility 5 390, 000.00 429, 000.00 471, 900.00
Accountant 1 130, 000.00 143, 000.00 157, 300.00
Total Employees 9 910, 000.00 1, 001, 000.00 1, 101, 100
Hiring of Employees

Applicants were accepted for the vacant positions of: Cashier; Sales Clerk; Utility; and Accountant. Those

with the good qualifications were examined and subsequently interviewed for hiring.

NB:If sales exceeded from the net income projection, employees will receive 10% annual salary increase.
(Identify staffing/manpower requirements for the respective units or functions and plan for the recruitment as well as
training areas - including objective, target group, content, cost, duration, resource person, venue, etc)
\h.

9 Communication Plan

Creative designed banners at different spots in Zenebe work.

Promotion through local radio.
Word of mouth.

(Describe the information needed to inform the stakeholders including the plan you use to reach out to the stakeholders
concerning your project).

10 Acceptance Plan

Key success factors:

Providing high quality products with customer service.

Competitive pricing.
Ongoing employee/bakers education.

(List the criteria or the performance baseline to be met to gain customer acceptance for your project)

11 Appendices
(Place any information or diagrams that will not fit in the sections above and then reference them back to the section
it
refers to. This includes projects on revenue, operating and administrative costs, projected profit and loss statement,
cash flow statement, including depreciation and amortization schedule).