An example of a business plan for a candy store. Recommendations for reducing the costs of production and circulation of the cafe "Uyut. Graphical representation of costs

Send your good work in the knowledge base is simple. Use the form below

Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

opportunity cost

Accounting and economic costs

Accounting costs is the cost of the resources used by the firm at their actual acquisition prices.

Accounting costs = Explicit costs

economic costs- this is the cost of other goods (goods and services) that could be obtained with the most profitable of the possible alternative uses of these resources.

Opportunity (economic) costs = Explicit costs + Implicit costs

These two types of costs (accounting and economic) may or may not coincide with each other.

If resources are bought on the free competitive market, then the actual equilibrium market price paid for their acquisition is the price of the best alternative (if this were not the case, the resource would go to another buyer).

If resource prices are not equal to equilibrium due to market imperfections or government intervention, then actual prices may not reflect the cost of the best of the rejected alternatives and may be higher or lower than the opportunity cost.

Explicit and implicit costs

From the division of costs into alternative and accounting costs, the classification of costs into explicit and implicit follows.

Explicit costs are determined by the amount of costs for paying for external resources, i.e. resources not owned by the firm. For example, raw materials, materials, fuel, work force etc. Implicit costs are determined by the cost of internal resources, i.e. resources owned by the firm.

An example of an implicit cost for an entrepreneur would be the salary that he could receive while working for hire. For the owner of capital property (machinery, equipment, buildings, etc.), the previously incurred expenses for its acquisition cannot be attributed to the explicit costs of the current period. However, the owner bears implicit costs, since he could sell this property and deposit the proceeds in the bank at interest, or rent it to a third party and receive income.

Implicit costs, which are part of economic costs, should always be taken into account when making current decisions.

Explicit costs Opportunity costs take the form of cash payments to suppliers of factors of production and intermediate products.

Explicit costs include:

workers' wages
cash costs for the purchase and rental of machines, equipment, buildings, structures
payment of transport costs
communal payments
payment of suppliers of material resources
payment for services of banks, insurance companies

Implicit costs is the opportunity cost of using resources owned by the firm itself, i.e. unpaid expenses.

Implicit costs can be represented as:

cash payments that could be received by the firm with a more profitable use of its assets
for the owner of capital, implicit costs are the profit that he could receive by investing his capital not in this, but in some other business (enterprise)

Refundable and sunk costs

Sunk costs are considered in a broad and narrow sense.

AT broad sense words, sunk costs include those costs that the company will not be able to recover even if it ceases to operate (for example, the cost of registering a company and obtaining a license, preparing an advertising inscription or company name on the wall of a building, making seals, etc.). Sunk costs are, as it were, a firm's payment for entering the market or leaving the market.

In the narrow sense of the word sunk costs are the costs of those types of resources that have no alternative use. For example, the cost of specialized equipment, custom-made by the company. Since the equipment has no alternative use, its opportunity cost is zero.

Sunk costs are not included in opportunity costs and do not affect the current decisions of the firm.

fixed costs

In the short run, some resources remain unchanged, while others change to increase or decrease total output.

In accordance with this, the economic costs of the short run are divided into fixed and variable costs. In the long run, this division loses its meaning, since all costs can change (i.e., they are variable).

fixed costs are costs that do not depend in the short run on how much the firm produces. They represent the costs of its fixed factors of production.

Fixed costs include:

payment of interest on bank loans;
depreciation deductions;
payment of interest on bonds;
management staff salary;
rent;
insurance payments;

variable costs

variable costs These are costs that depend on the volume of production of the firm. They represent the costs of the firm's variable factors of production.

Variable costs include:

fare
electricity costs
raw material costs

From the graph we see that the wavy line depicting variable costs rises with an increase in production volume.

This means that as production increases, variable costs increase:

General (gross) costs

General (gross) costs is all the costs at a given point in time required for a particular product.

Total cost (, total cost) is the total cost of the firm to pay for all factors of production.

Total costs depend on the volume of products produced, and are determined by:

quantity;
the market price of the resources used.

The relationship between the volume of output and the volume of total costs can be represented as a function of costs:

being inverse function to the production function.

Classification of total costs

The total costs are divided into:

total fixed costs(!!ТFC??, total fixed cost) is the firm's total costs for all fixed factors of production.

total variable costs(, total variabl cost) is the firm's total costs for variable factors of production.

In this way,

At zero output (when the firm is just starting production or has already ceased operations) TVC = 0, and, therefore, total costs coincide with total fixed costs.

Graphically, the ratio of total, fixed and variable costs can be depicted, just as it is shown in the figure.

Graphical representation of costs

The U-shape of the short-term ATC, AVC and MC curves is an economic pattern and reflects law of diminishing returns, according to which the additional use of a variable resource with a constant amount of a constant resource leads, starting from a certain point in time, to a reduction in marginal returns, or marginal product.

As has already been shown above, marginal product and marginal cost are inversely related, and therefore this law Decreasing marginal product can be interpreted as the law of increasing marginal cost. In other words, this means that starting from some point in time, additional use of a variable resource leads to an increase in marginal and average variable costs, as shown in Fig. 2.3.

Rice. 2.3. Average and marginal cost of production

The marginal cost curve MC always crosses the lines of average (ATC) and average variable (AVC) costs at their minimum points, just as average product curve AR always crosses the marginal product MP curve at its maximum point. Let's prove it.

Average total cost ATC=TC/Q.

marginal cost MS=dTC/dQ.

Take the derivative of the average total cost with respect to Q and get

In this way:

if MC > ATC, then (ATC) "> 0, and the average total cost curve of ATC increases;
if MS< AТС, то (АТС)" <0 , и кривая АТС убывает;
if MC \u003d ATC, then (ATC)" \u003d 0, i.e. the function is at the extremum point, in this case at the minimum point.

Similarly, you can prove the ratio of average variables (AVC) and marginal (MC) costs on the graph.

Costs and price: four models of firm development

An analysis of the profitability of individual enterprises in the short term allows us to distinguish four models for the development of an individual firm, depending on the ratio of the market price and its average costs:

1. If the average total costs of the firm are equal to the market price, i.e.

ATS=R,

the firm earns a "normal" profit, or zero economic profit.

Graphically, this situation is shown in Fig. 2.4.

Rice. 2.4. Normal profit

2. If favorable market conditions and high demand increase the market price so that

ATC< P

then the firm gets positive economic profit, as shown in figure 2.5.

Rice. 2.5. Positive economic profit

3. If the market price corresponds to the minimum average variable costs of the firm,

then the enterprise is located at the limit of expediency continuation of production. Graphically, a similar situation is shown in Figure 2.6.

Rice. 2.6. A firm in a marginal position

4. And finally, if the market conditions are such that the price does not cover even the minimum level of average variable costs,

AVC>P

it is advisable for the firm to close its production, since in this case the losses will be less than if the production activity continues (more on this in the topic "Perfect competition").

The manual is presented on the website in an abbreviated version. In this version, tests are not given, only selected tasks and high-quality tasks are given, theoretical materials are cut by 30% -50%. I use the full version of the manual in the classroom with my students. The content contained in this manual is copyrighted. Attempts to copy and use it without indicating links to the author will be prosecuted in accordance with the legislation of the Russian Federation and the policy of search engines (see the provisions on the copyright policy of Yandex and Google).

10.11 Types of costs

When we considered the periods of production of a firm, we talked about the fact that in the short run the firm may not change all the factors of production used, while in the long run all factors are variable.

It is these differences in the ability to change the volume of resources with a change in the volume of production that led economists to break down all types of costs into two categories:

fixed costs;
variable costs.

fixed costs(FC, fixed cost) - these are those costs that cannot be changed in the short run, and therefore they remain the same with small changes in the volume of production of goods or services. Fixed costs include, for example, rent for premises, costs associated with the maintenance of equipment, repayment of previously received loans, as well as various administrative and other overhead costs. For example, it is impossible to build a new oil refinery within a month. Therefore, if an oil company plans to produce 5% more gasoline next month, then this is possible only at existing production facilities and with existing equipment. In this case, a 5% increase in output will not lead to an increase in the cost of equipment maintenance and maintenance of production facilities. These costs will remain constant. Only the amounts of wages paid, as well as the costs of materials and electricity (variable costs) will change.

The fixed cost schedule is a horizontal straight line.

Average fixed costs (AFC, average fixed cost) are fixed costs per unit of output.

variable costs(VC, variable cost) are those costs that can be changed in the short term, and therefore they grow (decrease) with any increase (decrease) in production volumes. This category includes costs for materials, energy, components, wages.

Variable costs show such dynamics from the volume of production: up to a certain point they increase at a killing pace, then they begin to increase at an increasing pace.

The variable cost schedule looks like this:

Average variable cost (AVC) is the variable cost per unit of output.

The standard Average Variable Cost Chart looks like a parabola.

The sum of fixed costs and variable costs is total cost (TC, total cost)

TC=VC+FC

Average total cost (AC, average cost) is the total cost per unit of output.

Also, average total costs are equal to the sum of average fixed and average variables.

AC = AFC + AVC

AC graph looks like a parabola

A special place in economic analysis is occupied by marginal costs. Marginal cost is important because economic decisions usually involve marginal analysis of available alternatives.

Marginal cost (MC) is the incremental cost of producing an additional unit of output.

Since fixed costs do not affect the increment in total costs, marginal cost is also an increment in variable costs when an additional unit of output is produced.

As we have already said, formulas with a derivative in economic problems are used when smooth functions are given, from which it is possible to calculate derivatives. When we are given separate points (discrete case), then we should use formulas with ratios of increments.

The marginal cost graph is also a parabola.

Let's plot the marginal cost graph together with the graphs of average variables and average total costs:

In the above graph, you can see that AC always exceeds AVC because AC = AVC + AFC, but the distance between them gets smaller as Q increases (because AFC is a monotonically decreasing function).

You can also see on the chart that the MC chart crosses the AVC and AC charts at their lows. To substantiate why this is so, it suffices to recall the relationship between average and marginal values already familiar to us (from the “Products” section): when the marginal value is below the average, then the average value decreases with an increase in volume. When the limit value is higher than the average value, the average value increases as the volume increases. Thus, when the limit value crosses the mean value from the bottom up, the mean value reaches a minimum.

Now let's try to correlate the graphs of the general, average, and limit values:

These graphs show the following patterns.

Approximate data:

Monthly income - 180,000 rubles.
Net profit - 86,720 rubles.
Initial costs - 255,000 rubles.
Payback - from 3 months.

This business plan, like all others in the section, contains calculations of average prices, which may differ in your case. Therefore, we recommend that you make calculations for your business individually.

In this article, we will draw up a detailed business plan for a mini-confectionery with calculations.

Service description

The organization is engaged in baking cakes, pancakes and muffins to order. We are considering a situation where a private entrepreneur independently prepares products for sale. He has no additional employees. There is only the desire of a good cook to become a real seller of sweets. We consider renting the premises, but you can also use your own premises, if available.

Market analysis

The realities of today suggest that it is almost impossible to open and stay afloat with a simple confectionery. This is due to the very high competition in the industry.

Having considered the analytical data, we can conclude that the industry is not developing today. There was a glut in the market. There has been no growth since 2000. Even small towns are oversaturated with confectionery.

The competition in the industry is very strong, respectively, and the requirements for products are high. How can a private entrepreneur with a small production volume attract buyers? First of all, the exclusivity of the products offered. Why are people willing to buy such a product? Because large stores offer the same goods to the customer. They do not have variety, more precisely, there is variety, only in large supermarkets they sell the same thing as in a small trading shop. In general, this is a very relative variety.

People want something special that would be made just for them. So, today mastic cakes, products with photos, drawings, small toys, figurines are very popular. How is the whole process going? The person tells the seller about the required weight, the event itself. Attention is also paid to the specific features of the life of a person or people for whom this cake will be prepared. The same thing happens with baking small muffins, pancakes.

An important advantage is that, in fact, production directly depends on the number of customers. That is, you can pre-purchase the required number of products.

Of course, looking at consumer demand data, you can see that cakes and pastries account for only 8%. But is it really that bad?

Firstly, our entrepreneur does not cook in such large volumes in order to provide a large number of customers. The number of consumers will be much greater than the number of manufactured products. This will allow you to set a good price for handmade cakes.

Secondly, in the segment of sweets and biscuits there is the highest demand. At the same time, there is huge competition. Most of the market is occupied by large confectionery factories. It is more than difficult to compete with them. And the profit from sales will be less than when making cakes.

So, who will become the main consumer of sweets of a private entrepreneur?

This may include people of average and above average income levels. As a rule, family people order cakes for birthdays, anniversaries, name days. Close attention should be paid to families with small children. Parents, as a rule, take a very responsible approach to preparing a holiday for their child. A handmade cake with favorite cartoon characters will certainly please the baby.

Of course, there will be no competition. There are three main competitors:

Large shops and supermarkets . But a private entrepreneur will win against their background due to exclusivity, individual approach, quality and novelty of the ideas used.
Coffee houses and other catering establishments . They can be eliminated by separating the niche of buyers. Not everyone is ready to go celebrate the celebration in a cafe, many do it at home. Yes, and the cake will cost a little cheaper, and the taste will be better.
Other private entrepreneurs-confectioners . There are more and more such people today. You can fight them. It is necessary to prepare custom cakes so that people come again and again. Yes, and customers can bring new applicants. In this business, it is word of mouth that is the main engine of advertising. Therefore, all that is required from the confectioner is to do his job with love.

SWOT analysis

A person who knows how to cook delicious cakes is often afraid to open his own business. And he has every reason to. Before organizing a business, you need to study the sphere, the market situation in detail, and, finally, evaluate your own capabilities and take into account possible difficulties.

Not all factors can be controlled. There are those that you have to put up with or try to avoid them.

External factors include:

Capabilities:

Possibility of using various resources (a large number of suppliers).
Low activity of competitors (meaning that other manufacturers develop their own production, and do not wage intra-class struggle).
Full control of your own expenses and income.
High demand for the product.
The novelty of the idea, its "tasty".
Ability to develop new products, recipes, varieties.
Income growth.
Consumer love for exclusive things.
A large number of restrictions, the need for certification.
Constant demand for manufactured products (within the industry).

Threats:

It is quite difficult to enter the market (this is due to the execution of the necessary documents).
The emergence of other individual entrepreneurs with the same idea.
The emergence of new requirements, standards for manufactured products.
The tightening of work in this industry, associated with the emergence of new laws, SanPins.
High sensitivity of business to external conditions.

There are also factors that the entrepreneur himself can regulate. They are also called internal. These include:

Strengths:

Qualification of the entrepreneur, which determines the quality of products.
High level of motivation.
High performance.
Using the most effective advertising methods.
Product exclusivity.
Working with reliable product suppliers.
Use of high quality modern equipment.
Experience in the industry (pastry chef).
Working with a specific segment.
Profit will depend on the entrepreneur himself.
Costs, in case of failure, will be minimal.

Weak sides:

The need for initial investment.
There is no clear strategy.
Inexperience as an entrepreneur.
Sales channels have not been developed.

First of all, the entrepreneur must solve the following questions:

Develop an assortment . It is best to create a portfolio with your work, a price list with detailed composition, weight, menu, and features. This will not only make your business more presentable, but will also give it respect and respectability from customers.
Pay attention to technology . It is very important to comply with all standards, not to break the law. At this stage, it is necessary to study the existing legislation. You can use the services of a technologist.
Find product suppliers . This, firstly, will help reduce costs, and secondly, it will ensure the quality of the raw materials used. It is worth spending a little time but finding a great supplier with all the required certifications. You can go to local grocery stores and compare prices.
Start looking for clients early . This can be done at the stage of certification, search for premises.

Opportunity Assessment

What can be said about the possibilities? The entrepreneur himself can work at any time of the day or night. Everything will depend on the number of orders. The mode of operation can be called irregular.

A private entrepreneur does not have to worry about the seasonality of work. There are many more consumers than he could bake cakes.

Based on the experience of many "private confectioners", they also work on weekends. And on such days, the number of orders is noticeably higher.

You can find a job anywhere in the city. The main thing here is to comply with all sanitary standards. You also need to look at the cost. It shouldn't be too big. You can take an ordinary room and bring it into a suitable form, in accordance with all norms and rules.

It is important to remember that the possibilities of one person are not unlimited. If the demand is too high, you can hire another pastry baker and create masterpieces together.

In the future, you can think about developing your own packaging.

Organizational and legal aspects

Since the entrepreneur will be alone, it is better to choose. In addition, if he has never had his own business, then he will be able to take advantage of tax holidays, but more on that later. You must specify the following OKVED codes:

15.81 - Production of bread and flour confectionery products of non-durable storage;
52.24.2 - Retail sale of confectionery.

We choose the taxation system (UTII is also possible, but tax holidays do not apply to it). Our organization is engaged in the production of goods, which means that it can qualify for tax holidays. Where to start? From the study of the law on tax holidays. It is very important to see if it is accepted in your city. Remember that you can use the 0% tax rate only for 2 tax periods. We will make the calculation in this business plan based on the 0% rate.
use not necessary. You can limit yourself to BSO. This will save the cost of purchasing a cash register and its maintenance.
We study all the requirements of the SES, obtain the appropriate permit ( not necessary, but there will still be a check someday, so it's better to prepare in advance). Remember that the FEZ must indicate the range of products (in the application).
Certificates of conformity of production to the available requirements are necessary.
The equipment must also have certificates (Russian ones!).
The development of technological maps of manufactured dishes must be agreed upon (it concerns the recipe).
An agreement must be concluded with an organization that conducts disinfection, disinfestation and deratization.
No work licenses no need.
It is imperative to develop a program for monitoring compliance with sanitary standards at the enterprise.

Marketing plan

Price policy:

Determining the cost, you need to understand that people are willing to pay good money for quality goods. The cost will be clearly above the market average. Would anyone believe that a delicious, high-quality and exclusive cake can cost 300 rubles? For people, the cost, on the contrary, will be a certain indicator of quality.

When developing a promotion strategy, you need to understand that you do not need to use all types of advertising. This will not be effective, and it will also significantly increase costs.

Create your own website . It's not worth saving. It is worth trusting a professional who will make a “delicious” site for good money. It is worth doing its constant filling - adding photos and reviews of your customers. Of course, it is also important to promote your site so that it has as many visitors as possible.
Opening a group on a popular network . Working with the community will in many ways be similar to working with the site - photos, reports, prices, compositions. You can attract new subscribers with the help of advertising within the network.
contextual advertising . With it, you can advertise your own site, where the contact information is located, or a group.
"Word of mouth" . This method plays a huge role. It is impossible to manage it on its own. But to influence - very even. You just need to love your job, do it with love! The more satisfied customers, the more new ones. Their number is growing exponentially, based on the professionalism of the confectioner.
Promotions, discounts, bonuses . This method will allow you to develop your own client base. Together with the previous method, these will be real promotion engines. Over time, contextual advertising may simply not be needed.

Calculation of projected income

We will proceed from the fact that a pastry chef can cook from 1 to 6 cakes per day. Everything here, of course, will depend on the level of skill. The average weight of the cake is at least 2 kilograms. So the average return will be something like this:

Production plan

The requirements for the premises are the same as for the mini-bakery:

No basements.
There must be a ventilation system.
It is obligatory to have cold and hot water, as well as sewerage.
Ceilings should be whitewashed and walls tiled.
There must be a toilet and a warehouse in production.

Repairs must be made to comply with the requirements of the SES and the fire inspection.

From the equipment you will need:

bake;
mixer;
tables;
fridge.

The inventory will also include decor accessories, cutlery.

organizational plan

Financial plan

Do not forget that we have chosen the simplified tax system and we are entitled to tax holidays. That is, net profit will be equal to 89,800 rubles.

As for the insurance premiums of the entrepreneur. For an amount below 300,000 rubles (depending on the type of simplified tax system chosen, the income base is also assigned) payments will be:

to the Pension Fund - 19,356.48 rubles;
in FFOMS - 3,796.85 rubles;
in TFOMS in 2016, contributions are not paid.

In total, the total amount of contributions: 23,153.33 rubles.

From incomes over 300,000 rubles, the following contributions are paid:

there are no payments in the FFOMS;
in the PF - 1% of the amount of income, minus these 300,000 rubles.

Thus, the annual income will be: 180,000 * 12 = 2,160,000 rubles.

We do not include costs in our calculations. In a particular case, everything will depend on the chosen taxation system.

So, insurance payments will be: 23,153.33 + (2,160,000 - 300,000) * 0.01 \u003d 41,753.33 rubles. We remind you that this insurance payments not in a month but for the whole year.

Let's take the average monthly value of payments to calculate the profitability: 3,480 rubles.

Profitability: 86,720/180,000 = 48.18%.

Payback: 255,000/86,720 = 2.94. Opening a candy store will pay off in 3 months.

Risks

The prospects are bright. But it is important to think about the possible risks. The most significant risks include:

Cost growth . It will be associated with rising prices for raw materials and rent. You can protect yourself by concluding long-term contracts for the lease of premises and the supply of raw materials.
The growth of competition. It is important to work with the client base, replenish it, offer discounts, promotions, bonuses to your regular customers (for example, after buying 4 cakes, pancakes are a gift!). Let's not forget about quality.
Legislative change . There is no way to protect yourself. But it is worth remembering that experienced lawyers can always help.
Technological risks (equipment failure). Everything is much simpler here. It will not be difficult to buy new equipment if there is such a need.
Risk of delayed deliveries . We do not forget about the formation of trade stocks, we are looking for a reliable supplier, we indicate the late delivery in the contract and the subsequent "sanctions" for the supplier.

Important: Remember that you can write a business plan for your business on your own. To do this, read the articles:

Last request: We are all human and we can make mistakes, ignore something, etc. Do not judge strictly if this business plan or others in the section seem incomplete to you. If you have experience in this or that activity or you see a defect and can supplement the article, please let us know in the comments! Only in this way can we jointly make business plans more complete, detailed and relevant. Thank you for your attention!

It might be useful to read: