Individual Business Plan - home bakery

1,800 words plus accompanying spreadsheet
The business plan must contain the following key elements:
1. A summary of the business idea, ananalysis of the risks that the business will face and the source(s) of initial funding for the business.
2. An outline and discussion of the key fixed and variable costs.
3. A budgeted profit forecast for the first year of operation.
4. A budgeted cash flow for the first year of operation.
5. Calculation of the breakeven point and margin of safety.
6. Key performance indicators(KPIs) to monitor progress towards business goals.
7. Recommendations based on the results of analysis above.

criteria:

1. Clear and succinct summary of the business idea.
2. Outlinean discussion of the main fixed and variable costs.
3. A clearly presented and reasoned profit forecast and cashflow.
4. A clearly presented breakeven point and margin of safety calculation.
5. Clearly presented Key performance measures.
6. Clearly presented recommendations.
7. Presentation including spelling and grammar; clarity and layout the report.

Presentation (6):
set answer out in the format of a business plan incorporating: a title page and contents page; a clear signposting introduction that identifies the order in which the questions above are to be answered; the use of sub-headings; a conclusion; and a reference list (a bibliography is not required). Note you may use appendices judiciously and these (and the reference list) need not be counted in your word count.
The word count is 1 800.

Summary of the business idea (1):
Your objective here is to ensure that the reader is clear as to: what industry the business plan sits in and the nature of the business idea/start up. You can also identify the nature of the competition and the key success factors needed in the industry. The style should be succinct and crisp.

Outline and discussion of fixed and variable costs (2):
You should firstly identify and then quantify the main costs that your business idea will incur. You should try to ensure these are as accurate and realistic as possible, e.g., by referring to cost sources etc. If you are making assumptions regarding the costs, these will need to be clearly stated. You should divide this section into fixed and variable costs. The section should conclude with a discussion on the costs identified: which ones are the highest? How volatile are they, etc.

Profit and cash forecast (3 and 4):
These should be clearly outlined in tabular format. You might find it easier to construct both tables in excel and then cut and paste them into your report. You must annotate the forecast to indicate any assumptions made including the source(s) of finance for your business.

Breakeven Point and Margin of Safety (5):
Both calculations should be clearly set out with annotations to show the origin of the component items. This section should conclude with some considered comments on each calculation. Is the breakeven point high or low? What risks are faced by the business as a result of the calculations? Is the margin of safety high or low etc.?
Key Performance Indicators (6):
Performance indicators should be specific to the business. You should explain why you have chosen each KPI and how it could be measured.

Business Idea:
What type of business? Home sandwich production soled from owned van to the businesses which are located on the industrial estate - 6 big companies with 1600 potential clients
Where will it be based? at home
Who will be your customers? workers from the local industrial estate companies
Will you have any competitors? local shops
What other risks will the business face? -

Products:
3 types of sandwich products

1. Veggie Sandwich ( bread, butter, salad, cheese and tomato)
2. Meat Sandwich ( bread, butter, ham, bacon)
2. Spicy Sandwich ( bread, butter, ham, tomato, jalapenos peppers)

In the attachment please see the example of the Cashflow forecast in the excel format - this file should be used in the final work.