BUSINESS PLAN PROJECT

REQUIREMENT FOR HEED 203

PREPARED BY VIVIAN A. OJUKWU

Ph.DHE STUDENT

2017-89079
 Ingredients:
LIFE-SAVING BREAD LOAF
 Whole wheat flour,
 Acha flour,
 Bananas,
 Avocado pear,
 Yeast,
 Iodized salt
MFD : 22nd May, 2018
BB : 28th May, 2018
Refrigerate for a better
keeping quality.

 2 serves
 Eat with a protein dish
 No preservatives
 No refined sugar
 Rich in fiber, Micro nutrients &calorie
 Home-based
A PRODUCT OF MIRIAN’S BAKERY ART Net wt : 460g
Contact No.: 09154859254
 Hello, wise consumer!
The product you are looking at is a healthier
alternative to commercial bread. It is an
advocacy for green consumption, that is,
responsible production and consumption
(SDG #12). Eating product of this kind
stimulates your use of spending power as a
wise consumer to create a cleaner and
greener environment. Through research and
development, the bread recipe in use is
addressing the need for using local and
sustainable or green ingredients and
appropriate procedure in providing good
quality and safe bread

Vivian is an independent researcher and holds

a bachelor degree in Food Science and
Technology (Nigeria), master’s degree in
Nutrition & Dietetics (Nigeria) and PhD Home
Economics (Philippines).
THE BUSINESS CONCEPT

Mirian Bakery Art (MBA) would be a start- up business retail/wholesale bread establishment that would be located in Ibadan,
Nigeria.

THE BISINESS MODEL

MBA is expected to catch the interest of a regular loyal customer base with its relatively bread varieties. The company plans to build
a strong market position in the town, due to the desired healthier alternative by some Nigerians to the commercial low quality
bread.

THE BUSINESS GOALS

To provide healthier and safe bread varieties from ingredients’ purchase to preparation, cooking, marketing/delivery and storage.

THE BUSINESS VISION

Setting the pace in using wholesome & green ingredients with appropriate procedure & standards to guarantee good quality bread
varieties on everyone’s table.

THE BUSINESS MISSION

1. The MBA will serve as a laboratory for courses offered by departments of Food & Nutrition or allied disciplines at all levels of
education in Nigeria.
2. The MBA will serve as a setting for integrating lessons involving disciplines such as health education, consumerism/consumer
studies e.t.c.
3. The MBA will serve as a venue for practicum for students from secondary and tertiary institutions taking courses in food &
nutrition sub-disciplines or allied disciplines.

THE BUSINESS OBJECTIVES AND PERFORMANCE TARGET

MBA aimed to offer its products at a moderate price to meet the demand of low-to higher-income local market area residents and
people on transit/visitors.

The company intended to hire for a start, 3 full time bread bakers and 3 part time bakers to handle customer service and day to day
operations.

THE BUSINESS OFFERING AND JUSTIFICATION

Green Consumption has recently experienced rapid growth globally. Provision of healthier alternative to the commercial bread
anywhere in Nigeria will stimulate “use of spending power to create a cleaner, greener environment (MacEachem, 2008).

EXECUTIVE SUMMARY

MBA will be managed by Vivian and the intended nuclear family. The family will represent management and will out-source the
finance/sales areas respectively. The family will provide funding from their own savings, which will cover start-up expenses and
provide a financial cushion for the first months of operations. A two-year small business credit loan that will cover the rest of the
required financing will be sourced.

The company plans to build a strong market position in the town, given consideration to the founder’s academic training and
professional experience, and insignificant competitive climate in the area.

FINANCIAL CONSIDERATIONS

MBA expects to raise #2M of its own capital, and to borrow #1M guaranteed by micro finance bank as a 2 year loan. This would
provide additional or extra financing required.
MBA is anticipating sales of about ₦2M in the 1st year, ₦2.5M in the 2nd year and ₦3M in the 3rd year of the plan. MBA should break
even by the 4th month of its operation as it steadily increases its sales. Profit for this time period are expected to be approximately
₦1M in year 1, ₦1.5M by year 2 and ₦2M by year 3. The company does not anticipate any cash flow problems.

THE BUSINESS PROPONENTS, ORGANIZERS WITH THEIR CAPABILITIES AND CONTRIBUTIONS

MBA will be owned and managed by VIVIAN and her intended nuclear family.

Vivian’ expertise both in academic training and professional practice will come to bare in overseeing the daily operations of the
bakery which includes menu planning, budgeting, ingredients’ purchase, bread production, marketing/delivery, storage and food
safety guidelines compliance at all stages of operations.

Hiring of part-time or full time workers will be strictly based on proof of outstanding academic training and cognate professional
experience,

THE TARGET CUSTOMER AND THE MAIN VALUE PROPOSITION TO THE CUSTOMER

MBA wants to establish a medium regular customer base market, and will therefore concentrate its business and marketing on local
residents which will be dominant target markets. This will establish a healthy, consistent revenue base to ensure stability of the
business. In addition, visitors’ traffic is expected to comprise approximately 25% of the revenues.

MBA will offer varieties of home-based made bread using local ingredients and appropriate production techniques for wholesale
delivery and a sizable retail portion to suit the customers.

The bakery will provide healthy and safe freshly prepared bread to suit the customers down to the smallest detail. Six to eight
moderate batches of varieties of bread would be prepared during the day to ensure fresh baked breads are always available.

ENVIRONMENTAL AND REGULATORY COMPLIANCE

Legal and regulatory policy making as it relates to small businesses and entrepreneurship in a wide range of settings including
corporate governance, employment law, consumer law, securities regulation and business ethics. ( www.rand.org/centres/icj)
Small businesses respond differently to regulation than do their larger counterparts, which placed them at a competitive
disadvantage in the market place, thereby undermining the effect of competition policies and antitrust laws. To reduce the incidence
of such problems, policy makers and other key stakeholders have sometimes exempted small firms from local, state or federal
regulations or subjected them to differential enforcement requirements. The tort system can affect small businesses differently as
well, although the precise nature of that effect is less clear (Lloyd Dixon, Susan M. Gates, Kanika Kapur, Setha A. Seabury and eric
Talley, 2006).

Although, many environmental laws regulating business were shaped with an eye toward regulating large companies, there are
several reasons to expect firm size to be an important consideration in formulating and evaluating environmental policy ( Lloyed
Dixon et. Al., 2006).

However, in Nigeria as it were, there are no published or known environmental and regulatory compliances for small business and
entrepreneurship at the time being.

REFERENCES

MacEachem, D. (2008). Big green purse : use your spending power to create a cleaner, greener world. New York, Avery. (7x 336 L68
1997)

Lloyd Dixon, Susan M. Gates, Kanika Kapur, Seta A. Seabury and Eric Talley, 2006. The Impact of Regulation and Litigation on Small
Business and Entrepreneurship. RAND Publication. WR-317-ACJ.

The Kauffman Centre for the Study of Regulation and Small Business. Retrieved from ( www.rand.org/centre/icj)
 Mirian's bakery Art
Income Statement
For the twelve months ended December 31, 2016

Production In loaves 60 1320 15,840

1 batch makes 10 loaves
6 batches / day makes 60 loaves
Cost per loaf = ₦300 Per day Per month Per year
22 days/mo 12 months

Revenue Sales (₦ 300 x 60 loaves) ₦18,000.00 ₦396,000.00 ₦4,752,000.00

Cost of Production

Salt ₦30.00 ₦660.00 ₦7,920.00

Whole wheat flour ₦2,000.00 ₦44,000.00 ₦528,000.00

Yeast ₦100.00 ₦2,200.00 ₦26,400.00

Banana ₦600.00 ₦13,200.00 ₦156,400.00

Acha flour ₦1000.00 ₦22,000.00 ₦264,000.00

Packaging ₦100.00 ₦3,000.00 ₦36,000.00

Light ₦1,000.00 ₦22,000.00 ₦264,000.00

Transportation ₦1,500 ₦33,000.00 ₦396,000.00

Labor (5 persons x ₦ 818) ₦4,090.00 ₦89,980.00 ₦1,079,760.00

 Sub-total ₦10,420 ₦229,240.00 ₦2,750,880.00

Gross Margin ₦7,580 ₦166,760 ₦2,001,120.00

% of mark-up 72% 72% 72%

Operating Expenses

Marketing ( Internet ) 1000 per month ₦33.33 ₦1,000.00 ₦12,000.00

Transportation - -

related to delivery ₦500.00 ₦11,000.00 ₦132,000.00

Materials ₦5.00 ₦150.00 ₦1,800.00

Rent 3000/month ₦100.00 ₦3,000.00 ₦36,000.00

water ₦50.00 ₦1,500.00 ₦18,000.00

Phone charges ₦10.00 ₦300.00 ₦3,600.00

Total operating Expenses ₦698.33 ₦15,363.26.00 ₦184,359.12.00

EBITDA / Net Income before taxes ₦6,881.67 ₦151,396.74 ₦1,816,760.88

Depreciation

Net Income before Income Tax ₦9,721.67 ₦213,876.74 ₦2,566,520.88

70% 70% 70%

Notes:
Tax applicable if Sole Proprietorship under personal taxation
Tax applicable if Corporation set at 30%