Bakery the Building Should Be

Bakery The building should be at least 1500 sq. ft. To allow for a small retail area and considerable space for mixing/baking various products, allowing for growth into a wholesale as well as a retail business. A substantial amount of equipment is necessary for a bakery, with average costs of equipment for a minimal operation around $10,000. An estimated $15,000 worth of equipment will be necessary for this venture. On the Rise Bakery will open at five a.m.

every morning, Monday through Saturday, closing at 7:30 P.M.; Sunday hours will be 9 a.m. To 5 p.m. A prime location would be most advantageous for this business, leading to fixed costs of $3,750/month for rent (2500 * 1.5). f. g. Competition will include not only other bakeries, but also coffee shops and other establishments were consumers can purchase a quick edible treat. Supermarkets will also provide some competition over certain goods. h.

Basic prices for most goods should be in the $1-$3/unit range, with slightly cheaper per pound prices in order to encourage bulk order yet keep small snack and treats easily affordable. This pricing structure will also encourage impulse sales, which can be a major part of success in this type of business. A great deal of marketing expense will be incurred early in the business's operation, building a base of returning customers early on.

Signage, newspaper, radio, and television advertising as well as the creation of a website should all occur within a week of the store's opening, meaning January's expenses in this area will equal at least $5,000. This can drop to an average rate of around $1,500 per month for the rest of the year, with website maintenance and more infrequent television and radio spots. j.

The target market for this business will be other business professionals, with a special emphasis on attracting more upscale customers for fancier items yet with affordability maintained to encourage all area employees to stop in for a cup of coffee or a snack. k. For the first period of the business's existence, it will be owner operated. Should the venture prove profitable enough, a manager will be hired allowing the owner to pursue expansion or simply to enjoy more free time. l.

This business will require both retail staff and bakers; though these positions can cross over to some degree, during hours of peak operation this will not be feasible. Counter help will be paid $9/hr, and bakers will be paid $12. Three eight hour baking shifts with a one hour lunch six days a week -- one 3:00 A.M. To 12:00 P.M., one 5am to 3pm, and one 11am to 7pm -- will cost $1,728; two eight-hour shifts on Sunday will be another $192.

Counter staff will only be necessary while the store is actually open, and two people will need to be on at all times; the store is open 95 hrs per week so 190 counter staff hours are needed; this adds $1,520 to weekly labor costs, bringing the total to $3,440. Times 4.33, monthly labor costs are $14,895.20. m. As currently envisioned at startup, the company should be able handle two customers every minute, with an expected average purchase of $5. At full capacity, then, the.