Location. The location of my business will be:
The location of my business will be: 25 Navigation street, Orion Birmingham
Advantages of this location:
Disadvantages of this location:
Map 1 below shows how close my location is to the centre of the city of Birmingham.
Map 2 below shows how close my location is to the nearest TESCO store from which I will buy all supplies and ingredients needed to make my cakes.
Break Even Break even point is the point on the graph, which shows the number of units (in my case cakes) which have to be made, in order to avoid making a loss. For this purpose, I have picked one cake and created a table with my fixed, variable and total costs involved in making this cake. There’s also a Break Even graph, given below.
Fixed Costs:
Variable Costs:
Break-Even= Fixed Costs/ (Selling Price- Variable Cost per cake) Break-Even= 14609.94/ (55-13.43)= 351.45 à 352 cakes
HRM Plan for “Victorio Cakes”
Introduction
Initially, I’m not going to employ any workers in my business and I will do everything on my own, so the main labour resource for my business, at least in short term, will be me. I will be carrying out various functions described in my job specification which I have created, shown below:
Job Description
Title: Owner, Cake maker and Top Manager Reporting to: myself Role: To produce cakes, provide administrative and management to “Victorio Cakes” Hours: 8 hours per week Monday-Friday, 12 months per year Salary: £8832 per year Job Duties:
Person specification
Age: 18 Educational level: A-level Previous experience: 3 months of working experience in the reception department in “Corinthia Nevskij Palace” hotel and 2 years of working experience in the marketing department at JSC “Electronmash” which produces electric equipment. Special skills: art and design qualifications Personality: Physical aspects: Location and travel: located at Birmingham, live in the same building where I will be making cakes.
How I will be remunerated and at what level Pay: £8832 per year
- Undertake a cake decorating course - Obtain hygiene certificates - Work out the tasks and create the list of duties and responsibilities for myself - I will not be initially entitled to a holiday leave, as I will work without holidays during the process of development of the business
My responsibilities will be:
Basically, in my case I will be the one who will be responsible for my own work. I will expect myself to achieve certain qualifications, skills, relevant experience and undertake a cake decorating course to make sure I maintain high quality standards of the cakes that I will make. From the physical aspects, I will also have to comply with certain hygienic standards. I will be paying myself a wage of £8832 over the first three years, in order to minimise the costs for my business. I don’t really need bonuses or incentive schemes for myself, because it will be my own business and the targets I set will be my main incentives. However, as a long term opportunity, if I employ someone, I will design a special motivational scheme for this employee, which might also include paying a bonus if my employee helps me to overcome the target, produce and sell more cakes than it was expected. In this case, my employee will receive 5% of the total profit, if the business achieves set profit and sales targets. Because I will be an employee and owner at the same time, I will work only at one location, in Birmingham in my own house, without having to move or travel anywhere else or without providing home delivery service, as I expect my customers to come and see me personally and discuss whether they like the cake and make any special requests if they would like to add anything to it. I will provide myself a sickness leave, but no payment for it. All expenses and allowances will be registered on my firm only. I will provide myself with two time breaks, one 30 minutes break for lunch and 10 minutes break in the morning. If we talk about employing a worker, he might have a chance of becoming a top-manager in my company as a long-term career prospective.
My working equipment will include such things as: (full list of equipment is enclosed with the financial plan)
- Oven, fridge, dishwasher and kitchen sink - Forks, knifes, spoons and other supplies - Cake cutters and muffin makers - Cake/muffin tins of different shapes (round, square, oval and heart)
I will have the following welfare facilities:
- Kitchen room with all washing facilities - Toilet - Guest room, where the customers will be asked to sit and discuss the order - Lightning and heating will be provided - Such protective clothing as: Special white cooking clothes (cooking robe), gloves, clean shoes (wearing different shoes at the work place) and a cooking hat will be worn to maintain hygiene and increase the quality of the cakes
How I’m going to employ new workers
- Via adverts on the internet and such websites as: FindJob and Facebook - Via adverts in the magazines and newspapers - On the walls underground and on the streets - By the word of mouth or by asking my friends - Other media sources
Marketing Plan
The purpose of this marketing plan is to explain the market into which my products, will be introduced, and outline the main marketing objectives for my business, explaining how I’m going to achieve them. Marketing plan is the document which explains four main stages:
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