Business Plan Summary

Running head: Financials and Human Resources Planning

Financials and Human Resources Planning

Van Boubeka and Kenneth Williams and Damascus Johnson

University of Phoenix

2/08/2021

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Running Head

Financial and Human Resources Planning

In The Mix is a family owned bakery located in San Diego, CA. Our business total startup

cost is $318,750. We have three investors taking a small percentage which would total to 20% of

the company. We felt each investor will bring something different to the table to, eventually

expand the business. They are three bank loans, we took out totaling to 16,500. This we help

startup cost, equipment, advertising, and anything else needed. There are two other loans from

financial institutions that totals to $8,000, which will help in the business. The building we

purchase was for $150,000 in a central location. The construction and remodeling total to $75,000.

The building needed a major upgrade. Total Capital Equipment came to $55,000. Since we have

two building one is purchase and the other one is a least, which we are leasing at 1,250 a month.

Utility, legal fee, prepaid insurances, salaries came to 20,000. Advertising and promotional

expense came to $19,500.

For our business strategies, we decided to go with Premium Pricing. There is currently a

large market for bakeries. There are plenty of bakeries in San Diego, where are business is at. We

value are products and serve the customers the highest quality. Are marketing strategies is used for

customs cupcakes, wedding cakes, and our products are package with perfection, to go along with

other baked products. There are some things you cannot be cheap on and bakery goods is one of

those. “If you’re losing unprofitable customers, it’s sad, but you’re in business to stay in

business,” says Dennis Stanton, owner of Swedish Bakery, Chicago, IL. “Our head counts have

declined significantly over the past 10 years, but our sales per customer have continuously

increased.” Nobody likes to lose customers, but unprofitable customers are simply not good for

business. With premium priced products, you will often generate higher profits with fewer

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customers, according to How to accurately price bakery products | Bakemag.com | September 03,

2015 08:39. Premium products come with a premium price and our customers will not be

disappointed.

Forecasting

“Sales forecasting is a process where businesses estimate their future sales based on

historical sales data, economic trends, or market analysis. Sales forecasting is important because it

allows your business to make informed decisions and predict performance, which is important for

potential investors.” (Webstaurauntstore, 2018). It is not possible to completely predict future sales

and be correct with the numbers you wanted to reach. Forecasting your sales is an opportunity to

improve areas within the business operations. By doing this step we can predict our cash flow,

control the cost it takes to operate the business and monitor the prices of our items. When a

company correctly projects their future sales, it could benefit by reducing product waste from

overestimating. At the same time, you would avoid any potential lost sales if you underestimated

your goals. It is a positive thing to know who your customers are and where they purchase their

bakery from. Where is the location that they live to make the drive to make their rounds? The

crucial task to do as you forecast the future sales is to research the market because having only one

competitor can mean that the demand is very limited and being unique will have the business

thrive. We will approach this with by looking at different angles and look at more than one system

to analyze and set time every month to adjust the forecast accordingly.

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References

(2018). Forecasting Sales and Break-Even Analysis. Retrieved from

https://www.webstaurantstore.com/article/311/forecasting-sales.html

Sims, B. (2015). Bake. How accurately price bakery products. Retrieved From How to accurately

price bakery products | Bakemag.com | September 03, 2015 08:39.

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