My Business The Café Parlour CONTENTSPAGEPage2- The BusinessIdea- Why It Will BeSuccessful- CompetitorsPage3- How Will IFinance It- LocationPage4- CostingPage5 – 9- FinancePage10 – 11- SWOT AnalysisPage12- Skills AnalysisPage13- CareerDevelopment Plan BusinessIdeaMybusiness is going to be a small café that sells a vast range of sweet, bakedgoods with a few savoury food items for sale as well (for those who don’t enjoysweet things). It will be selling freshly baked favourites such as brownies,cupcakes, cookies and so on. On thesavoury side, there will be range from the basics like bread to uniquelydesigned pizza and puff pastries. My business will also be able to makedeliveries based on how far the location is. I believe that this business couldpotentially be very successful as there are not many new bakeries in the area Ihope to put the business. Also, the prices of our products are reasonable price(not too high or low); affordable for everyone.
On the other hand, ordering inlarge quantities or for big events will cause the customer to be charged athigher price so the business can collect more profit from it.Why will it be successful?1. There are noother bakeries along Victoria Road in Surbiton therefore making it stand out.Also, it has a larger range of food items than the little bakery sections inSainsbury’s.2.
The food can be ordered for any occasion whichcreates a wider range of ages that will come and buy food from the shop. Forexample, weddings, parties, baby showers…etc.3. They type of things I would be selling are verypopular and still new which can attract a lot of people especially youngerpeople as they will know more of these popular food items.4. My business willalso have cooking books and magazines on sale related to the world of bakingwhich will increase profits and customers. Especially customers who enjoybaking and didn’t really want to buy food.
CompetitorsTheremay be a few competitors along Victoria Road such as coffee chops likeStarbucks and Nescafe that also sell food along with their coffee. It may beharder to compete with them as they have been around much longer and are worldknown coffee shops. Also many people prefer to go to places that they are usedto and are well known which may cause a bit of trouble getting attentiontowards my business. However, my business fully focuses on sweet and savouryfoods which differs from the coffee shops. If I was able to create a spacewhere customers can sit and enjoy the food they bought, then maybe I could beatmy competitors. The biggest competition will be Greggs as they are very popularwith great food for low prices. Due to Greggs being a huge franchise inEngland, it has dominated over many bakeries making it very hard to beat. Theyspecialise in savoury products such as pasties, sausage rolls and sandwichesand sweet items including doughnuts and vanilla slices which is slightlysimilar to my business.
To try to beat or reach Greggs level, I would need tocreate unique products and have the best promotion for my business and a goodrelationship between me and my customers.Eventhough all these bakeries and supermarket may have an established spot in themarket place, they will not have new, unique tastes in their food becauseeveryone has been eating their same pastries which could end in the customersgetting bored of the usual taste. By using this to my advantage, I couldattract all their customers by giving them new tastes and flavours.How will you finance it?Hopefully,I would get a loan from the bank to either pay for the rent of the building, orfor the stock of the ingredients. Mysecond option would be to gather up enough money from friends, family andsavings to pay for the things I need within the shop.
Mythird option is to find investors or a partner that is willing to join me and payfor the business whilst getting profit from it.Location (within 10 miles)SurbitonPlaza II, 39 Victoria Road, SURBITON, Surrey KT6 4JL https://propertylink.estatesgazette.com/property-details/5520747-surbiton-plaza-ii-39-victoria-road-surbiton-surrey-kt6-4jl Ibelieve that this is a very good location for my bakery as it is on a very busystreet and along the road of a train station, where many people go to. It isalso very open and easy to see and is part of a newly built building. Thedesign of the building on top is very classy which suits the theme of thebakery as well. Another reason why this location is a great choice is that, itis right next to a wedding dress shop.
This will help to build up the businessas brides may be looking for snacks like cake and cupcakes for their weddingfor which they can get from the bakery next door. Where this shop is locatedhas many school children that walk along the road to and from school and manyadults that got to work as well. It could attract any adult or children as theyare going or coming back from school or work.
This location also providesparking spaces directly in front of it as well making it easily accessible forpeople with cars.Costinghttps://www.workspace.co.uk/community/homework/entrepreneurs/starting-a-bakeryForstarting a business, I will need to gather enough money to pay for theequipment, possible renovations and decorating and rent deposit.
There are alsolicenses and legal requirements to look over which will cost a bit of money.First of all, the equipment will possibly cost the most as cooking equipmentprices are slowly rising and because this is a baking business, it will needspecialist equipment. For now the budget will be based around £5000 foreverything in the kitchen (including utensils). The reason I need to pay for licenses andlegal requirements is because I will need a lawyer to check over the contractwith the landlord to make sure that everything is done properly and thatnothing goes wrong within the process. For renovations and decorating, it alldepends on how well done the shop is when I rent it out.
If there still needsto be a few minor changes then the cost should come up to about £2000. The rentdeposit could cost £500 – £2500 but I don’t have a specific value because thelocation I am hoping to rent only reveals the rent after a meeting with them.- RentThe cost of the building is not availableas it is required that you talk to the owner first then they decide the rent.(ROA)- StockCost for ingredient and packagingThings to furnish the shop withKitchen appliances- Staff WagesTowards the start of the business I don’tthink that I will need to worry about staff as it will be mainly me and somefamily doing the work around the bakery. However, as the business will start toprogress, I would consider hiring around 2-3 employees as it will be a smallcafé after all.
Hopefully, I will be able to employ trained staff to reduce theamount of time spent on training but if employing un-trained staff is the onlyavailable option I would hire them.- Government Supporthttp://www.telegraph.co.
uk/sponsored/business/national-business-awards/10875206/government-help-small-business.htmlThe government mainly provides help in the form ofmoney. They are able to support the business financially and give loans tosmall business to help them gain steady ground. I probably wouldn’t go downthis route because getting money from the government and paying it back maycause a few difficulties further down the line for the business. If I were toget a loan, to pay it back with interest included could cause huge financialissues, if the business doesn’t succeed as much as I hoped it would within thefirst year or so. However, if my business is as successful as I hope it wouldbe, then the small loan from the government may not be as much of a struggle topay off.- Government Cuts ? lessmoney FinanceCrowd-fundinghttps://www.crowdfunder.
co.uk/aranbakery/- DonationsAnother possiblyincome of money could be through crowd-funding. By choosing a specific amountof money I wish to achieve and creating an attractive and convincing page, Imay be able to reach the amount of money I would need for either the rent orfor the basic ingredients and kitchen items (stock). This amount of money thatI would need for the bakery could be achieved within 2 months if I can attractmany people to the crowd funding account through the use of many social mediasites (for example, Instagram, Facebook, Twitter, etc.).
To convince morepeople into putting their money towards the business, I would offer:For a £10donation ? their name will go on our benefactors list in the bakery.For a £20 donation ? a loaf of bread with name on benefactors list inbakery.For a £30 donation ? 1 free cup of coffee with name on benefactors list inbakery.For a £50 donation ? 12 cupcakes and a tote bag with name on benefactorslist in bakery.
For a £150 +donation ? a small gift basket anda coupon (10% off first order over £15) in return. The gift basket wouldcontain a small amount of cookies, brownies, a loaf bread, jam and a cookingmagazine along with our business card. Crowd-fundingwould also help the growth of popularity in my business as people will bespreading information about it to help gain money. The negative side to thisoption is that all the gifts the business is offering to give to each personwho donates could end up spending a lot more money on these things thanactually gaining money. – Venture CapitalBy investing insmall businesses, I could hopefully raise enough money from each business Iinvest in to fund my own business.
On the other hand, thiscan be very risky as the business I invest may not be successful and the moneyI invested would go to waste. Another issue may be that I want more controlover whatever small business I invested in but they don’t give me that controlthat I requested.Family and Friends – InvestorsAskingfriends and family to give money towards the business is another way I amconsidering getting money from.
This maybe a faster and easier way of money but it can also cause some complications.As it is family giving the money, there can be arguments as to what ishappening in the business. It could cause a downfall in the business if theystart to demand their money back immediately due to un-resolved issues. On thepositive side, this way if much faster than waiting for a bank to approve theloan and it is easier to negotiate and interest rate (if needed) with a friendor family member. Some of the people don’t want to get paid back, they wouldrather be a part of the business which is negotiable as I would want to havetotal control over the business.Owner’s FundsTo support my business and get it standing on itsfeet, I will use my own money that I saved up from many previous jobs sincehaving the idea of this business. Based on the common pay rate of £7.50 anhour, in a year’s work I would acquire around £400.
Over 3 years, I wouldapproximately have around £1200. From my own research, I found that the usualtenancy deposit is around £744 (£800). Fortunately, I will be able to pay offthe deposit with my own money and have extra left over for at least 1 mainkitchen appliance for the business.- Selling AssetsIfI wanted, I could sell items that I don’t need and items that the businessdoesn’t need (at that moment) to attain extra money if needed. This is mostlikely going to be an option that I would avoid because it would not have thebiggest effect if I needed lots of cash, quickly. This would be a disadvantageto the business as waiting for the items to sell may take months which maydelay the business in buying things (for example, ingredients or paying theelectricity bill) they need.Bank- Loans Tesco Anissue with applying for a loan here is that you have to have a current job andsupply them with information of our regular monthly income.
In my situation, Idon’t have a job so I wouldn’t be able to supply them with that informationwhich would possibly result in me not getting the loan. Another issue is thatthe monthly payments are fixed, but the business may not be very successfulevery month so there could be issues within the payment.Santander Anotheroption is to get a loan from an actual bank, Santander. This may be better asit has a higher APR which cause the monthly payment to drop a bit more.Compared to a Tesco loan, it does cost a little bit more to pay off each monthand the total amount to repay is also a bit larger. Another issue with gettinga loan from Santander is that I would have to be 21 years old and over toobtain a loan and I would need to already be earning over £6,000 of a regulargross annual income which I may not be getting.
This loan has a maximum of fiveyears compared to Tesco which has a maximum of 10 years; so if I wanted to addon some years to pay off my loan I wouldn’t be able to do it. In conclusion, Iwouldn’t go with Santander as it is very limiting and would cause risk in mybusiness if I wanted to extend my loan due to difficulties. If I did go withthis bank, I would be at risk of being in a lot of debt because in theirconditions they mentioned that they may withdraw their rate at any time whichcould cause payment issues especially if I had planned my monthly payments withthe amount of income I get from my business. Sainsbury’s Outof all the banks I have researched, Sainsbury’s is the one with the largestrange of money that you can borrow from them. A similarity between Tesco and Sainsbury’sthat Santander bank doesn’t have, is the advantage of having a point’s cardspecifically for their supermarket. This gives them a huge advantage as it cangive many people who have this card a chance to qualify for a lower rate. Choosingthis bank would be more advantageous to my business and to my current situationbecause of how low the monthly payments are and the few limitations they have. – OverdraftsBy using an overdraft, I can withdraw funds from mybank account in excess of my balance.
This will be helpful in time were thebusiness may be struggling with money in the area of monthly rent pay or loanpay. Overdrafts would most likely be my very last option. SWOT Analysis Strengths Weakness – Due to its location, I can place my prices at a slightly higher rate. – I am good with social media which can help build up the businesses online community. – The business is based in a very popular area where people are constantly going through. – The unique and quality tastes of the food that is produced and sold. – There are products on sale other than food. – Quick response and good customer care.
– Allows people to order food, instead of leaving the house all the time. Specifically elderly people. – I have good presentation skills that will help push the business forward when I want to branch out and find investors. – I have good branding skills. This will be helpful when creating social accounts and a unique logo for the business which will be the main thing that people see. – I have good IT skills which will be useful when sorting out information collected from orders and online payments.
– – The business has weak popularity. – Unreliable cash flow during the early stages of the business. – Smaller amount of staff which can be stressful if a lot of items are being sold within the week.
– Staff who may need training in specific areas. – There is a lack of business experience and skills. This could cause a fall-back in the business. – There could be a larger variety of food that is being sold. – Due to it being a new business, the unreliable cash flow could cause a shortage in ingredients or a back-track in loan repayments. This could then lead to debt. – Few pieces of modern technology which could slow down the process of ordering. This could also stop customers from using their cards which is very common now.
– There is no website for public to access, therefore leaving no area for customers to go online and place orders, which will have a large effect on money income. – High cost for the rent of the building. Opportunities Threats – Pay has slowly been rising so there may be an opportunity to raise the price of my products. – There is a large increase in the use of social media where the business will be mainly promoted. – More fairs and events are occurring on the street that my business is located on which will give us the opportunity to gain more customers and build up the business by one on one talks with customers and people who pass by. – More people are eating out rather than cooking their own meals at home which means they will spend more money on already make food.
– Take advantage of the Kingston market and set up a stand where the business sells products to people in a different area other than Surbiton. – Other businesses similar to mine have been there longer and are more popular across the whole of UK. – When the business becomes successful, people will see that it is growing and may copy the business.
– Competitors sell similar items to our business. This would cause customers to compare the foods that we sell to other bigger, local businesses. – A competitor opening a new shop within the same location. It would take all the attention off my newly open business, giving them more customers. – Other popular bakeries have ads on television and one music apps that promote ads.
– Paying for a promoted ad could cause a difficulty in payments. Skill Area Description of Specific Skill Evidence of Skill Rating your Ability (No ability 1 – 5 Expert) How I’m doing Communication I would need to communicate with banks in order to obtain money I would need for the business. I have good communication skills but need to improve my business language. 2 I’m doing well but want to increase my confidence and reduce nerves. Business and Management I need to be able to handle the business by being efficient in work. I would also need to be able to manage a team successfully and use that to build up the business. I have no experience in business but I am currently learning how to handle a business.
I have some experience in the field of management as I have worked in many teams and lead some. 2 I want to improve this skill to the point of where I am an expert in it. Finance/Accounting The business will be dealing with a lot of money transactions online and in-store. So skills in the management of money is highly needed in the business.
I don’t have much experience with dealing with large amounts of money so that may be a hindrance to the business. 1 I will improve in this but also get some professional help with it. Technical Knowledge (IT) To be able to handle and sort information obtained from the business. The ability to use Excel, Microsoft Word, PowerPoint and Access. I have quite a lot of experience with technology as I am studying it and have a certificate to show the level of where I am.
4 I am doing very well in this but still need to improve in some areas. Marketing The ability to successfully promote the business and sell the products. Advertising is also a major part of marketing. I don’t have any skills in this area or any knowledge of how to use it within a business. 1 I need to gain some skills in this area. Baking Since my business is a café, I would have to have to ability to make the food that is to be sold.
I have done quite a lot of baking at home but would be more confident if I could take some baking classes. 3 I know little in this area but would like to gain some more professional knowledge on this. Website Designing To be able to create a functioning, high-quality website. I would need to know how to make additional pages (for example, order pages, product page, etc.) I have made quite a lot of websites before and know my way around it. 3 I haven’t made a website in a while so it would be good to get a tutorial around making a website. Organisation To be organised with every piece of work giving to reduce stress and missing information. I am not very organised.
1 I’m not very organised but plan to improve in this area. Negotiation To negotiate prices with customers making large orders, prices with landlords and banks. I need to develop negotiation skills. 1 I need to gain skills in this area.
Using Kitchen Appliances I need to be able to know how to use each appliance in the kitchen correctly in order to produce quality food. I have used the basic kitchen appliance but need to learn about the more complex ones. 3 I don’t have the more complex kitchen appliances so I can’t further my knowledge in it. Career Development Plan Skill Area Description of Specific Skill What I plan to do to develop the skill How you plan to do it When do you plan to start and/or complete Marketing Marketing Take a course (maybe online/at a conference) By Attending Finance/Accounting Sorting out all the money coming in and going out Do some research online/take an online course By Attending/Researching Business and Management Managing a team Online courses By Attending Organisation Organising work Research Online By Researching Baking Baking more complex food items.
Take classes By Attending As soon as possible because it is the main priority of my business.
