Big Time Bakery

Brooke Griffitts and Holly Hahn

Six Business Activities

1. Generating Ideas: Our service is a bakery, where we specialize in pastries. We came about the idea because there aren't very many bakeries in the area, and we both enjoy pastries. We researched the market for competition by searching for bakeries and pastry shops in Springfield, Illinois. Overall there weren't that many of either type of business, but there were less pastry shops; which is what we specialize in.

2. Raising Capital: We estimate that it will cost $180,000 to start up the business. Of this money $80,000 will be of our own money. (We are each bringing $40,000 to the table.) Before buying the property for the business, we continued to make, sell, and deliver the cupcakes out of our own homes. After saving for a year, we were able to make $32,000. We raised $5,000 from friends, $35,000 from investors, and the remaining $28,000 we will get from the bank as loan.

3. Employee & Training: The pastry makers have to have a degree in Culinary Arts, the dishwashers don't need any experience, and the maintenance workers need to be knowledgeable of cleaner and chemicals. We will recruit employees, by speaking to students at local culinary colleges. We will hire them by giving them a 90 day probation period, where we decide whether or not they are a good fit for the business. Training for the employees will be continued as they work for us, and we will have classes on techniques one night every other week.

4. Buying Goods & Services: The ingredients that we will need will be purchased from local farmers, and the kitchen appliances will be purchased from Sears. Sugar, flour, etc. will be purchased from the Webstaurant Store.

5. Marketing Goods & Services: Types of marketing that will be used will be ads in the phone book and newspapers. The cost for these two type of marketing would be roughly $13,000 annually.

6. Maintaining Business Records: We will keep our records by using Quickbook, and a hired accountant, which will cost about $5,000 annually.

Sole Proprietorship/Partnership/Corporation

The business model that we will be using is a partnership because we have two people starting the business. The advantages are that it's easy to start, all owners are responsible for key business decisions and functions, and we can share the investments and profits. A disadvantage is that we would both be liable for the debts if the business fails.

Business Goals

Five Goals for First Year of Business:

  1. Make $100,000 in profit
  2. Have 180 customers a day
  3. Have a 90% satisfaction rate
  4. Start cupcake delivery
  5. Create a website where customers can order online

Mission Statement

We are committed to using the finest ingredients in our recipes. No food leaves our kitchen that we ourselves would not eat.

Our mission statement recording

Organizational Chart