Small business is normally owned privately with a sole proprietorships, partners and corporations. It is common in many countries and depends on an economic system in the operation. A business is an organization that is involved in trading goods and services. In order to open up a business one has to be sure and ready to come up with a business plan. A business that is owned by several individuals should come up with good ideas that can enable the business to grow up. Here am going to venture a business plan and operate on how to open up a bakery and to conduct it (Acemoglu, 2012).

There are always doubts that bakeries are big. A bakery grows at a rate of 5 percent according to the research. For a bakery to figure out that it can always provide you with good information on how to have a plan. You should start with a market study that profiles the target of customer’s current sales in the market area for the product category and the pricing features. After the determination of research on sales look at the cost structure and make suggestions on where to place the business. Here are some of the suggestions that are made when you come up with a plan (Gupta, 2000).

· Will you need vehicles for transportation

· How spacious would you need for the building

· What is the cost of the building

· Is the business in a suitable place

· What are the specific equipments needed

Once you have the costs you can determine the sales and commodity costs without forgetting the distribution. Consider the number of people that you need for production, sales and their salary (Acemoglu, 2012). The current company that was appropriate to our venture was Marry brown bakery. The bakery was based on the Malaysian cakes and breads. It was a corporation growing market today. It has got 265 outlets it also serves the customers with bread, cookies, cakes and biscuits. The recipe for this bakery was also a top secret. They started the business with a small amount and they had targeted the customers by giving advertisements that would attract them (McCabe, 2003). They also colored their advertisements and published the price rate of some of the products. They gave channels opportunity to advertise their products. The business was extended to a big bakery where customers were delighted with the products.

Price rates for advertisement should be given for customers to know the rate of the products. You should use the publicity traded business researched for a week. Compare the capitalization and the reports of the daily business (Gupta, 2000). Analyze the cash that is made and how it flows and also discuss the alternative options that may have considered. You should not always worry about your lack of business.

Online resources can help you in formulating the bakery business plan. You can also try to come up with the name of the business and never try to underestimate it. Go back and compare the estimates to your actual and you will get a real sense on how to move the business forward. A bakery can be quite fruitful when combined with the sound skills of the business plan. Everything nice such as spices, sugar, and anything sweet makes up a bakery. These were all about the conceptual venture of a small business (McCabe, 2003).

References

Acemoglu, D., & Robinson, J. A. (2012). Why nations fail: The origins of power, prosperity, and poverty. London [etc.: Profile Books ; [etc..

Gupta, U. (2000). Done deals: Venture capitalists tell their stories. Boston: Harvard Business School Press.

McCabe, G. B., & Kennedy, J. R. (2003). Planning the modern public library building. Westport: Libraries Unlimited

Venture Budgeting and Forecasting Paper

Carolyn Holden

FIN/375 Financial Management in Small Business

Lydia Sneed

Saturday, June 29, 2014

Estimating The revenue and expense is good for every venture, it’s give an idea of an additional cash outlay in future, so that the strategic planning can be run in a very proper manner, identifying the important and major expenses will leads to pre-planning and provisions for the future expenses,

Planning for the estimated revenue can be done estimating the total no. of customers, estimated average sale per customer, estimated no. of sales per customer per year,

Further the expenses can be planned in a manner so that current operating expenses and long term expenses can be classified, and list all the expenses which will required to be incurred during the normal course of business,

The performance of any venture is depends upon the revenue generated by minimizing the total cost, total cost includes cost of goods sold, labour, sales & marketing, rent, maintenance, insurance etc.

By classifying and ascertaining the costs, a venture can perform well in future, and the growth of venture is depends upon the decision and planning done by the top management,

Pre-planned revenue and expenses helps a venture to get secure against any expected future loss by comparing the revenue of that period with the expenses incurred,

It will save a firm from loss phase and helps a venture to run a business in long run,

Wherever possible estimate the odds of the scenarios, consider developing best and worst case scenarios, review your assumptions,

(http://www.dummies.com/how-to/content/estimate-revenue-and-expenses-for-your-strategic-p.html)

2

Development Budget: The projection of prices to expand a real estate project.

Conceals the preparation, construction and acquisition period, until the project is rented or sold up.

Pre-opening budget

Real estate businesses are associated with several types of costs, they must be developed and constructed, they must be operated when they occupied once, they must be renovated and modernized,

The facilities of real estate sector is vary greatly, construction of buildings in the town reduces the problem of living, change in the estimations and actuals are due to differences in the actual expenses in comparison with pre-opening budget,

The development and construction of buildings represents a commitment of capital by owner who expects the return on this investment,

To maximise the profit and return on investment, the facilities must be operated in a good manner,

A building constructed with appropriate quality and good budget control will have predictable cost for maintenance, renovation and operation,