ANTONY’S BAKERY

PHONE NUMBER: 0757903651

EMAIL: [email protected]

PRESENTED BY: ANTONY KAGIA

ADM NUMBER: 41047

SUPERVISOR: MR. KEVIN KIPCHUMBA

COURSE: BAKING TECHNOLOGY

INSTITUTION: EAST AFRICA INSTITUTE OF CERTIFIED STUDIES

DEPARTMENT: CATERING

SUBMITTED TO: KENYA NATIONAL EXAMINATION COUNCIL

FOR THE PARTIAL FULFILLMENT FOR THE
AWARD OF CERTIFICATE IN SECRETARIAL
STUDIES

EXAM SERIES: JULY 2022

Declaration
I declare that this is my original work and has never been presented to any institution for this
award of certificate.

Name:

Sign:

Date:

This business plan has been submitted to east Africa institute of certified studies.

Supervisor;

Name:

Sign:

Date:

ii
Acknowledgement
First and foremost I thank God for giving me the opportunity to undertake this course. I also
wish to express sincere gratitude tomy lectures.

Lastly I wish to acknowledge my family and my friends for moral and financial support.

iii
Dedication
With gratitude and respect this business plan is dedicated to my family. I am grateful for their
support and love during my training at East African institute of certified studies.

iv
Summary
Antony’s bakery will be located in Thika town in Kiambu County. Thika town is a well
populated area with its population mainly occupied largely by college students who mostly like
spending their time in town. In thika also there are many kinds of banks, hospitals and other
government facilities. Antony’s bakery will sell different types of cakes and refreshment drinks.
Bread will also be produced in the bakery to meet our customer’s desire. There are no many
competitions for the business except for the supermarket’s bakery. Thika is a suitable location
for Antony’s bakery.

Objectives
My objectives are to ensure that my customers are able to be satisfied by the products that I will.
provide them with.

v
Mission
My mission is to encourage the people of Thika town to come together and enjoy their time
together while enjoying our services. These opportunities allow people to appreciate each other
and bring unity among them. Also I would like the people to appreciate the art of bakery as in
many places I have visited like Eldoret and Nakuru town. It is also my mission to ensure that
Antony’s bakery will expand to other regions in the country and outside the country.

vi
Executive summary
1. Business Description

Antony’s bakery will be located in Kenya, Kiambu County at ThikaMakongeni. Makongeni is a

small town which is growing fast with its population. The bakery will provide its customers with
good and affordable productsand also provide good services. The bakery will be selling
refreshments, snacks and confectionery products like bread, cakes, buns, scones, cookies etc.

2. Marketing plan

Many of my customers will be students mainly whom have settled in the area. There are many
institutions in the town that have caused the population to grow well.

There are also churches in the area. The people in the market are also my targets for the business
to grow.

My pricing will be low because the biggest percentages of my customers are low-incomers and
students who like cheap but quality products. The students also like offers. I will be selling in the
bakery and also online.

3. Organization and management plan

The management comprises of the Manager, chief chef, chefs and cooks. The management and
organization plan states the roles and responsibilities of every employee in my organization set
up not leaving out their salary levels.

4. Production and operation plan

The chapter entails all the materials that shall be necessary to be acquired in order to be
facilitate the efficiency in the operations.
5. Financial plan
It provides a detailed statements and gives information on how finances of the business
shall e utilized.

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Table of Contents
Declaration ................................................................................................................................................. ii
Acknowledgement ......................................................................................................................................iii
Dedication...................................................................................................................................................iv
Summary ..................................................................................................................................................... v
Objectives ................................................................................................................................................... v
Mission .......................................................................................................................................................vi
Executive summary .................................................................................................................................... vii
CHAPTER ONE ............................................................................................................................................. 1
1.0 BUSINESS DESCRIPTION ........................................................................................................................ 1
1.1 Business name .................................................................................................................................. 1
1.2 Business location............................................................................................................................... 1
1.3 Form of ownership ............................................................................................................................ 1
1.4 Type of business................................................................................................................................ 1
1.5 Products and services ....................................................................................................................... 1
1.6 Justification of the opportunity ......................................................................................................... 2
1.7 Industry ............................................................................................................................................. 2
1.8 Business goals ................................................................................................................................... 2
1.8.1 Short term goals ......................................................................................................................... 2
1.8.2 Long term goals .......................................................................................................................... 2
1.9 Entry and growth strategy ................................................................................................................ 3
1.9.1 Entry strategy ............................................................................................................................. 3
1.9.2 Growth strategy ......................................................................................................................... 3
CHAPTER TWO ............................................................................................................................................ 4
2.0 Marketing plan ...................................................................................................................................... 4
2.1 Potential Customers .......................................................................................................................... 4
2.2 Market Size ....................................................................................................................................... 4
2.3 Competition ...................................................................................................................................... 5
2.4 Promotion Strategy ........................................................................................................................... 5
2.5 Pricing Strategy ................................................................................................................................. 5
2.7. Distribution Strategy ........................................................................................................................ 6
CHAPTER THREE .......................................................................................................................................... 7

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ORGANIZATION AND MANAGEMENT PLAN ................................................................................................ 7
3.1 Organization Structure ...................................................................................................................... 7
3.2 Management Team ........................................................................................................................... 8
3.2.1 Duties and responsibilities ......................................................................................................... 8
3.3 Other Personnel ................................................................................................................................ 8
3.4 Recruitment, training and promotion ............................................................................................... 8
3.4.1Recruitment ................................................................................................................................ 8
3.4.2 Training ...................................................................................................................................... 8
3.4.3 Promotion .................................................................................................................................. 9
3.5 Remuneration and Incentives ........................................................................................................... 9
3.5.1 Remuneration ............................................................................................................................ 9
3.5.2 Incentives ................................................................................................................................... 9
3.6 Licenses, Permit and By Laws ............................................................................................................ 9
3.6.1 Licenses ...................................................................................................................................... 9
3.6.2 Permit ...................................................................................................................................... 10
3.6.3 By laws ..................................................................................................................................... 10
3.7 Support Services ............................................................................................................................. 10
3.7.1Banking Services ....................................................................................................................... 10
3.7.2 Insurance Services .................................................................................................................... 10
3.7.3 Consulting Services .................................................................................................................. 10
3.7.4 Legal Services ........................................................................................................................... 10
CHAPTER FOUR ......................................................................................................................................... 11
4.0 PRODUCTION AND OPERATION PLAN ................................................................................................. 11
4.1 ProductionFacilities and Capacity ................................................................................................... 11
4.1.1 Layout ...................................................................................................................................... 12
4.2 Production Strategy ........................................................................................................................ 13
4.3 Elements Affecting Production Operation ...................................................................................... 14
4.3.1 Health regulations .................................................................................................................... 14
4.3.2 Safety ....................................................................................................................................... 14
CHAPTER FIVE ........................................................................................................................................... 15
5.0 FINANCIAL PLAN ................................................................................................................................. 15
5.1 Preoperational Cost ........................................................................................................................ 15

ix
5.2 ProformaBalance Sheet .................................................................................................................. 16
5.3 Working Capital............................................................................................................................... 16
5.4 Cash Flow Projection ....................................................................................................................... 17
TRADING PROFIT AND LOSS ACCOUNT ................................................................................................. 18

x
CHAPTER ONE

1.0 BUSINESS DESCRIPTION

1.1 Business name

The name of the business will be Antony’s bakery which will be named after me Antony kagia.
The business slogan will be “come hungry, leave happy”.

1.2 Business location

Antony’s bakery will be located in Kiambucounty, ThikaMakongeni Estate opposite Madaraka
Market Gate B. the business website will be antony’sbakery.co.ke.

1.3 Form of ownership

The business will be a sole proprietorship business. This is because it will be to put my focus on
the business. The making of decisions concerning the business will be fast. I will be sharing my
profits and loss alone.

1.4 Type of business

The business will be a start up business and the activities will be retailing for I will buy the
ingredients and bake to a fine product.

1.5 Products and services

I will be offering confectionery and baked products like cakes, bread, scones, and buns. I will
also provide transport to customer who will be placing orders through the business website. My
customers will receive a fair price upon purchasing.

1
1.6 Justification of the opportunity
I choose this business because in Thika there is no much competition. The town is filled with
students from colleges who like consuming tasty foods like cakes. I also am perfecting my skills.
The climate is mostly sunny in Thika making the people become interested in refreshments.

1.7 Industry
My industry will be a food industry which will have at least four competitors whose growth is
going well and currently stable.

The competitors buy their ingredients from firms without involving many brokers in-between.
This gives them an advantage for low cost of stock.

The industry requires not very large capital to start. The technology required is not that
expensive and also not much labor is required for around 8 workers the industry will run
smoothly.

1.8 Business goals

1.8.1 Short term goals
My goals will be first to satisfy my customers needs and wants my providing the best baked
products in town.

Becoming a good leader is also one of my goals for this will alsomake my employees respect me
and my customers. Maximizing my profits and increasing my sales by offering bonus/offers to
my products like buy three get one free.

1.8.2 Long term goals

I would like to expand the business by opening new branches in different places. In future I
would like to open up or introduce baking competitors for the young bakers who would win
prizes on the best performers, which by doing this will increase the sales maximizing the profits.

2
1.9 Entry and growth strategy
1.9.1 Entry strategy
I will use my knowledge of the estate for it is my home and birthplace which gives me an
advantage for being known by the residents.

My pricing will be fare for my customers and me. My competitors lack the ability of leadership
which I have learned from their workers who have opened up to me and I have learnt to be a
good leader to my employees if I want to achieve well. They also do not provide delivery for
their customers which I will. I will also involve offers to customers who buy more and those who
are devoted customers.

1.9.2 Growth strategy

I will open up new branches to reach my furthest customers.

Increase my employees’ salary depending on their hard work which will improve their devotion
to work.

I will also be searching for the best young bakers to give them a chance in my bakery.

3
CHAPTER TWO

2.0 Marketing plan

2.1 Potential Customers
Many of my customers will be students mainly whom have settled in the area. There are many
institutions in the town that have caused the population to grow well.

There are also churches in the area. The people in the market are also my targets for the business
to grow.

My pricing will be low because the biggest percentages of my customers are low-incomers and
students who like cheap but quality products. The students also like offers. I will be selling in the
bakery and also online.

2.2 Market Size

Before penetration in the market

Sales Kshs 30,000 40,000 30,000 100,000

Market share 30% 40% 30% 100%

After penetration

Sales (Ksh) 30,000 40,000 30,000 30,000 130,000

Market share 23% 31% 23% 23% 100%

4
2.3 Competition
Most of my competitors are doing well with their business showing that capital is available.

Due to increase in capital the competitors are thriving.

DUE to their cost most people\customers cannot afford their products.

They do not offer refreshments in their services.

2.4 Promotion Strategy

My approach to creating awareness of my products is to first give a taste of my product before
purchasing for them to choose well on their preferable taste.

I will also produce printed posters to be placed around the estates and town and also advertise the
product in social media platforms i.e.YouTube, face book, etc.

The printed posters may cost around Ksh 20,000 while the media may be cheaper because I will
be using the business website.

After one month if the business will not be growing then I will have to change my means of
advertisement.

2.5 Pricing Strategy

Clients targeted will be around 50 per day

Market price for cakes will be Ksh1200 per kg

Ingredients will cost around Ksh800

20 cakes sold per day

Average selling price= 3000/-

No product sold= 20/-

A.S.P= 30000\100

=Ksh 300

5
For starting I will first use direct selling method in order to have a clear connection with my
customers to ensure they receive the best product and services offered to them.

2.7. Distribution Strategy

Direct selling is my strategy for this will reduce in the cost for I will not have to pay other
individuals to handle marketing sales or other needs.

Transport means used will be roads.

Negative effects of this strategy is that it is difficult to sale large quantities of your products

To reach a larger consumer base I will have to implement other means of distribution.

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CHAPTER THREE

ORGANIZATION AND MANAGEMENT PLAN

3.1 Organization Structure

MANAGER

CHIEF CHEF

COOKS

WAITERS

DISTRIBUTORS

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3.2 Management Team
Manager, chiefchef, chefs and cooks.

3.2.1 Duties and responsibilities

Manager will be me

Chef will have to be graduated

2years experience will be required.

3.3 Other Personnel

Title number Qualification duties
Accountant 1 B.Com CPA K Budgeting ,payment
of salary
Cooks 4 Certificate In Bakery Helping the chef
Waiter 4 Certificate In Service Serving our customers
Distributors 3 KCSE result Delivering our goods

3.4 Recruitment, training and promotion

3.4.1Recruitment
I will poach for the chief chef.

The cooks and waiters I will advertise.

The distributors I will also advertise.

3.4.2 Training
Induction training will be offered to new employee.

Internships will be offered as well for students.

This is to help them sharpen their skills in the bakery.

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3.4.3 Promotion
Will be given to those who show an effort in their work and also experience obtained.

3.5 Remuneration and Incentives

3.5.1 Remuneration
The firm policy will be increase in salaries to employees who shows devotion in their work.

Title Number Monthly Pay Allowances

Cooks 4 20,000 each 6,000
Waiters 4 15,000 each 5,000
Distributors 3 10,000 each 4,000
Accountant 1 18,000 each 5,000
63,000

3.5.2 Incentives
Sales exceeding 20,000 a day the chef will receive 1,000.

Cooks and waiters will receive a bonus of 600 each for sales exceeding 20,000 a day.

3.6 Licenses, Permit and By Laws

3.6.1 Licenses
I will visit Huduma Centre to apply for license.

It will cost me around Ksh50,000-80,000.

This will help to assure my customersthat I am equipped and allowed by the government to
conduct my business.

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3.6.2 Permit
I will visit the city council to get my permit that will cost around Ksh 1,000.

3.6.3 By laws
For the business to be successful I will need to follow all the bylaws put by the government like
having licenses and permit for the business. This will help to avoid bribes i.e. expenses reduced.

3.7 Support Services

3.7.1Banking Services
I will choose Kenya commercial bank as my banking service through Makongeni branch.

The bank will provide services like checking and savings account, loans, mortgage services,
wealth management and providing credit and debit cards.

3.7.2 Insurance Services

African merchant assurance will buy insurance company.

I will insure against fire accident, public liability damage to bakery’s equipment and employee
injuries and illnesses due to their work.

It will cost around 4000 a month or 48500 annually.

3.7.3 Consulting Services

I will get my consultancy service from more experienced bakers.

They will be able to advice on price of product, capital requirements and construction strategy.

3.7.4 Legal Services

The business requires a name of a company registration

 City council business permit

 Food/health related permit
 Fire safety certificate
 Protect my business with insurance
 The legal firm will be baker Mckenzie

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CHAPTER FOUR

4.0 PRODUCTION AND OPERATION PLAN

4.1 ProductionFacilities and Capacity

The machines we will be using their spare parts are locally available thus reducing funds that
could have been used to travel distant places.

Equipment No Cost Total

Oven 5 26,000 130,000

Proofer 4 12,000 48,000

Refrigerator 5 24,000 120,000

Mixer 6 28,000 168,000

Shelves 8 2,500 20,000

Showcase 10 3,000 30,000

Furniture 12 4,000 48,000

564,000

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4.1.1 Layout

Entrance Bathrooms

1 Cash register Display area

2

3
Oven area

Counter space with overhead storage Mixer area

1. Shelving
2. Rack area
3. Cooler

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4.2 Production Strategy
TYPE OF FREQUENCY SOURCE QUALITY COST TOTAL
RAW
MATERIAL
Flour Daily Flour mill shop 20 sacks 4000 80000
Yeast Daily Flour mill shop 10 sachets 130 1300
Milk Daily Muranga dairy 100litres 50 5000
Salt Daily Wholesaler 5packets 100 500
Sugar Daily Wholesaler 3sacks 5000 15000
Water Daily THWASCO 200litres 50 10000
Cooking oil Daily BIDCO 80litres 100 8000
Food cooler Daily Flourmillshop 10sachets 120 1200
Eggs Daily Ben poultry 10crates 250 2500
farm
123500

In time we will we will be able to upgrade our systems to modern ones this requiring
experienced personnel where I will add few employees to help the old ones with the new
equipments.

Rent 40000

Power 10000

Security 40000

Water 5000

Total 95000

The production cost per month is 3245500

Mixing fermentation dividing, proofing, baking, cooling, slicing, packaging and delivering will
be our stages in producing products.

External factors that can affect production are

Political

 Economic e.g. inflation.

 Social like change in taste.
 Technological e.g. using automation in the firm.

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This will be managed by creating a good relationship with the customer to help us understand
how to better our customer needs.

4.3 Elements Affecting Production Operation

4.3.1 Health regulations
In terms of health my firm will have an experienced doctor on speed dial incase of an emergency
is serbus but also a pack of first aid kits will be available at all times.

Health

In terms of health my firm will have an experienced doctor on speed dial in case of emergency
and also a pack of first aid kits will be available at all times.

4.3.2 Safety
All workers will be required to have proper dressing code according to the place of work which
the firm will provide.

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CHAPTER FIVE

5.0 FINANCIAL PLAN

5.1 Preoperational Cost
Elements affecting production operation

ITEM COST
Licenses/Permit 1,000
Rent 40,000
Advertisement 20,000
Installation 15,000
Equipments 10,000
Total 86,000

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5.2 ProformaBalance Sheet
Antony’s Bakery

Balance sheet as 13thJan 2022

Fixed assets Ksh Ksh

Machinery 90,000
Furniture 48,000
Current assets
Stock 125,000
Debtors 10,000
Cash at bank 500,000 635,000
773,000
Capital 535,000
Short term liabilities 138,000

Long term
Creditors 100,000
773,000

5.3 Working Capital

Current assets – short term liabilities

635,000 – 138,000 = 497,000

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 5.4 Cash Flow Projection

Cash inflows Jan Feb March Apr May June Jul Aug Sep Oct Nov Dec TOTAL

Opening 633,000 635,000 645,000 652,000 657,000 668,000 672,000 679,000 686,000 693000 700,000 710,000 8,030,000
cash
Cash sales 500,000 515,000 526,000 532,000 539,000 547,000 551,000 558,000 566,000 571,000 577,000 583,000 6,565,000

Other 10,000 20,000 30,000 40,000 50,000 60,000 70,000 78,000 86,000 90,000 95,000 100,000 729,000
inflows
Total cash 510,000 535,000 556,000 572,000 589,000 607,000 621,000 636,000 652,000 661,000 672,000 683,000 7,294,000
inflows

Cash
outflows
Loan
Salaries 90,000 90,000 90,000 115,000 115,000 115,000 115,000 135,000 135,000 135,000 135,000 135,000 1,405,000
Rent 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 480,000
Licenses 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Total cash 140,000 140,000 140,000 156,000 156,000 156,000 156,000 176,000 176,000 176,000 176,000 176,000 1,924,000
outflow

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TRADING PROFIT AND LOSS ACCOUNT
FOR THIS YEAR ENDED 13TH JANUARY 2022

Sales 500,000

Less cost of sales

Closing stock 125,000

625,000

Less expense

License 1,000

Rent 40,000

Installation 15,000

Advertisement 20,000

Equipments 10,000

Power 10,000

Water 5,000

Security 40,000

141,000

NET PROFIT 484,000

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