BUSINESS PLAN

Rafeeah’s Delicious Doughnut

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Name:Rafeeah EdwardsVenue:Bergvliet

Primary School

Table of ContentsExecutive Summary...............................................................................................................................3

Objectives......................................................................................................................................3

Mission..............................................................................................................................................3

Goals for my Business........................................................................................................................3

The Business..........................................................................................................................................5

Business Concept...............................................................................................................................5

Target Market....................................................................................................................................5

Needs Analysis...................................................................................................................................5

Survey Questions...............................................................................................................................6

Financial Plan........................................................................................................................................7

Start-up costs.....................................................................................................................................7

Cost for 100 doughnuts.................................................................................................................7

Other Expenses..................................................................................................................................7

Selling Price of doughnuts.................................................................................................................7

Projected Expenses and Profit...........................................................................................................7

Record of Receipts and Payments.....................................................................................................8

Profit and Loss Statement.................................................................................................................8

Production Plan.....................................................................................................................................9

My Product........................................................................................................................................9

Production.........................................................................................................................................9

Method..............................................................................................................................................9

Marketing Plan...................................................................................................................................10

My Businesses Market.....................................................................................................................10

Advertising and Promotion......10

Product price and sales...........10

Executive Summary The owner of the business is Rafeeah Edwards. Delicious Doughnuts is a specialty doughnut business that provides divine doughnuts to customers. Doughnuts will be made above the average size and customers will be able to choose their own toppings from a nice variety of options.

The main market of my business would be learners at the school, their parents, teachers, neighbours, and people at my father’s work, family, friends and parties. The business will also have a pre-order service for things like birthday parties and cake sales.

Delicious Doughnuts anticipates the initial investment of R250 to start off with. The initial target is to sell 100 doughnuts per week which will allow it to show a healthy profit of R240 per week.

ObjectivesDelicious Doughnuts has established a few objectives it wishes to achieve in the next year:

1. Sell 100 doughnuts on the entrepreneurs day2. Make a profit of more than R2003. Grow the business to 200 doughnuts per week

MissionThe mission statement of the business is twofold:

Product Mission - Provide customers the finest quality, large and cheap doughnuts.

Economic Mission – Operate and grow at a profitable rate through good business decisions.

Goals for my BusinessI would like to learn these skills:

How to be creative and make different types doughnuts.

How to advertise. How to sell and convince people into buying my

product. How to design cool doughnuts.

Profit

I want to be able to make R800 profit per month after I have made about R7000.By next year I would like to have made approximately R33000.

Dates by which I want to achieve these goals

I want to achieve these goals by mid-October 2014; I will work hard on making the right amount of profit. Once the business earns a reputation I will start an order and deliver service.

Owners of the Business

The owners of the business will be I working from my home and selling it in different places. I will use my different resources and skills and make the doughnuts using help form other people.

What I will put into the Business

I will put R1000 into the business which will cover all ingredients, equipment needed to make everything and also marketing expenses. The investment will also cover delivery costs and the other monies required to start up business.

My Responsibilities

My responsibilities are to buy all materials, do the planning, look after financial responsibilities (e.g. making sure the business makes profit) and ensure that there are no wastages and unnecessary spending in order to keep the business running. I will advertise my business via posters, word of mouth, and later a very small advert in the community newspaper.

The Goal of the Business

The long term intention of the business is to create a wide variety of doughnuts and develop it into a novelty business that targets parties and larger events.

The BusinessBusiness ConceptDelicious Doughnuts is a speciality doughnut and beverage business which includes doughnuts which will be fresh and of a large size and value for money and allows people to create their toppings for their doughnut that they order, The business also allows orders to be taken for parties etc. especially for weekends and offers a free delivery service in a 5km radius.

Target MarketDelicious Doughnuts will focus on three main markets:

1. All learners especially the lower grades from Grade 1 to 4 which makes up about 300 to 400 learners. Learners enjoy sweet things and always like to create their own unique flavours when it comes to luxuries (e.g. Ice Cream)

2. Teachers and parents that will visit the school on entrepreneur’s day.

3. People at my dad’s work and neighbours

Needs AnalysisA sample of people from the grades were interviewed to see if they would be interested to purchase such products during breaks and before and after school and place orders for parties and weekends if they enjoy it. A few neighbours were also interviewed and the response was very positive.

The following is a sample of the survey that was used to interview approximately 63 learners. They were from various grades and included boys and girls whereas the girls made up 70% of the sample of 63.

Neighbours were also approached and the response as positive provided that is tastes nice and the price is good.

This shows that the business idea is good and that smarties and strawberry icing is not a good topping to use.

Survey QuestionsPlease tick the appropriate boxes:

Questions Yes No

1 Would you buy large cupcakes?

2 Are you interested in choosing your own toppings for the doughnuts?

3 Would you be interested in the following topping?

4 How much are you willing to pay for these doughnuts?

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The results of the survey shown in the following table:

Questions Yes No

1 Would you buy large doughnuts? 54 9

2 Are you interested in choosing your own topping for the doughnuts?

56 7

3 Would you be interested in the following toppings? 63 0

Smarties 44 19

Whispers 60 3

Chocolate Mouse 63 0

Strawberry Icing 25 38

Vanilla Icing 50 13

Chocolate Icing 63 0

Positioning in the Industry

The main competitors are the fellow entrepreneurs at school, Woolworths, Spar, Checkers and other bakeries.

This business idea is good because these shops do not offer the option to customize your own doughnuts with a selection of your own toppings. They also sell their doughnuts in quantities of 6 or 8 and it is also very small. I will be selling doughnuts individually and the price will be cheaper and the doughnuts will be larger.

Suppliers of Product Ingredients

The products use standard ingredients such as flour, milk, sugar, eggs etc. and I will be sourced from Cash ‘n Carry such as Makro that allows you to buy in bulk at a good price.

Financial PlanStart-up costsThe following appliances are required to make the doughnuts and I will be using my parent’s appliances.

Stove Mixer Mixing bowls Measuring jug Metal spoon Piping bag Muffin trays

I will using R250 as the capital to start the business this money will come from my savings.

Cost for 100 doughnuts 16 eggs – R20 400g castor sugar – R4 1 litre oil – R11 720g cake flour – R5 Baking powder(200g) – R15 1 bottle vanilla essence – R5 Icing sugar – R10 Topping – R50 Mini doughnut holders – R30 Electricity& Transport – R50

Other ExpensesThe main costs are the electricity and transport costs which I have to pay my parents. This is estimated to be R50 in total for transport and electricity. Printing costs for the flyers are R20 for 10 flyers and I also need gloves for serving cost of R10.

Selling Price of doughnutsThe doughnuts will be at a price of R4.00 for basic topping and R5.00 for a decadent topping.

Projected Expenses and ProfitSales of 100 doughnuts = R500

Costs for doughnuts=R200

Other Expenses:

Advertising space = R5

Premises Hire = R5

Flyer = R20

Gloves = R10

=R50

=R250

My aim is to sell 100 doughnuts initially.

Record of Receipts and PaymentsThe Makro receipts will be kept for the cost of ingredients.

My parents will provide an invoice for the transport and electricity costs.

Profit and Loss StatementProfit = selling price – cost price

=R500 – R250

Therefore:

Profit = R250

Selling price per doughnut sold = R5

Cost price per doughnut sold = R2

Profit = R5 – R2

=R3

This means that the business will run at a R3 profit per doughnut.

Production PlanThe unit costs = the costs of producing 100 doughnuts/no. of doughnuts

=R200/100 = R2.00 per doughnut

My Product My product is a selection of colourful, delicious doughnuts in chocolate, vanilla and strawberry icing in special mini doughnut holders. Additional toppings are added using a special squeezer as required by the customer.

ProductionRaw materials/ingredients

4 large eggs 3 quarter cups castor sugar 1 tsp. vanilla essence 1 ½ cups cake flour 4 tsp. baking powder 1 cup fish oil

Method 1. Cream eggs and sugar until light for about 5 minutes.2. Add 1 teaspoon of essence, fish oil and then beat.3. In a separate bowl sift the cake flour and baking powder.4. Fold the dry ingredients into the mixture.5. Add ½ cup of milk.6. Bake at 180

Marketing PlanMy Businesses MarketThe main market of my business would be learners at school, their parents, teachers, the people at my father’s work, family and friends and birthday parties. I will also have a pre-order service for things like birthday parties, cake sales and other events.

Please see flyer on the last page

Advertising and PromotionI will use pamphlets to hand out on the day and arrange for advertising on the school notice boards. This has been included in the expenses of business’s promote my product further; I will provide people with free tasting samples because people usually buy thins once they tasted it.

Product price and salesI will sell the doughnuts at a price of R5.00 each and I want to able to sell 100 doughnuts a week.