An example of a confectionery cafe business plan. Recommendations for reducing the costs of production and circulation of the cafe “Uyut. Graphical representation of costs

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Opportunity Cost

Accounting and economic costs

Accounting costs Is the cost of resources used by the firm in the actual prices of their acquisition.

Accounting costs \u003d Explicit costs

Economic costs Is the cost of other benefits (goods and services) that could be obtained with the most profitable of the possible alternative directions for using these resources.

Opportunity (economic) costs \u003d 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 free competitive market, then the actual market price of the equilibrium paid for their acquisition is the price of the best alternative (if this were not the case, then the resource would go to another buyer).

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

Explicit and implicit costs

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

Explicit costs are determined by the sum of the costs of paying for external resources, i.e. resources not owned by this firm. For example, raw materials, materials, fuel, labor, etc. Implicit costs are determined by the cost of internal resources, i.e. resources owned by this 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 incurs implicit costs, since he could sell this property and put the proceeds in the bank at interest, or lease it to a third party and receive income.

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

Explicit costs Are opportunity costs, which take the form of cash payments to suppliers of factors of production and intermediate goods.

Explicit costs include:

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

Implicit costs Is the opportunity cost of using the firm's own resources, i.e. unpaid costs.

Implicit costs can be represented as:

cash payments that a firm could receive if it made better use of its assets
for the owner of the capital, the implicit costs are the profit that he could receive by investing his capital not in this, but in some other business (enterprise)

Recoverable and sunk costs

Sunk costs are considered broadly and narrowly.

IN broad sense the word sunk costs refer to those costs that the firm cannot recover even if it ceases to operate (for example, the costs of registering and companies and obtaining a license, preparing an advertising inscription or the name of the company on the wall of a building, making seals, etc.). Sunk costs are, as it were, the firm's payment for entering or leaving the market.

In the narrow sense of the word sunk costs Is the cost of those types of resources that have no alternative use. For example, the cost of specialized equipment made by order of 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 influence the firm's current decisions.

Fixed costs

In the short term, part of the resources remains unchanged, and part changes to increase or decrease the total output.

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

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

Fixed costs include:

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

Variable costs

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

Variable costs include:

fare
electricity costs
costs of raw materials and supplies

From the graph we see that the wavy line depicting variable costs rises up with the growth of production.

This means that with an increase in production, variable costs increase:

Total (gross) costs

Total (gross) costs - these are all the costs at a given point in time required for a particular product.

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

The total costs depend on the volume of production, and are determined by:

quantity;
the market price of the resources used.

The relationship between output and total costs can be represented as a cost function:

being inverse function to the production function.

Classification of total costs

The total costs are subdivided into:

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

cumulative variable costs (, total variabl cost) - total costs of the firm on variable factors of production.

In this way,

With zero output (when the firm is just starting production or has already ceased its activity) TVC \u003d 0, and, therefore, total costs coincide with total fixed costs.

Graphically, the ratio of total, fixed and variable costs can be depicted, similarly to how 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 law 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 the marginal return, or marginal product.

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

Figure: 2.3. Average and marginal production costs

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

Average total cost ATC \u003d TC / Q.

Marginal cost MC \u003d dTC / dQ.

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

In this way:

if MS\u003e ATS, then (ATS) "\u003e 0, and the curve of the average total costs of ATS increases;
if MC< AТС, то (АТС)" <0 , и кривая АТС убывает;
if MC \u003d ATC, then (ATC) "\u003d 0, ie 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.

Cost and Price: Four Models of Firm Development

Analysis of the profitability of individual enterprises in the short term allows us to distinguish four models of 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.

ATC \u003d P,

then the firm makes a "normal" profit, or zero economic profit.

This situation is shown graphically in Fig. 2.4.

Figure: 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 profitas shown in Figure 2.5.

Figure: 2.5. Positive economic profit

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

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

Figure: 2.6. The Firm at its Limit

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

AVC\u003e P,

it is advisable for the company to close its production, since in this case the losses will be less than with the continuation of production activities (more on this in the topic "Perfect competition").

The manual is given on the website in an abridged version. In this version, testing is not given, only selected tasks and 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 subject to copyright. Attempts to copy and use it without specifying 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 said that in the short run the firm can change not all the factors of production used, while in the long run all factors are variable.

It is these differences in the possibility of changing the volume of resources with a change in production volumes that forced economists to break all types of costs into two categories:

fixed costs;
variable costs.

Fixed costs (FC, fixed cost) are those costs that cannot be changed in the short term, 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 equipment maintenance, payments in repayment of previously received loans, as well as all kinds of administrative and other overhead costs. For example, it is impossible to build a new oil refinery within a month. Therefore, if next month the oil company plans to produce 5% more gasoline, then this is only possible at existing production facilities and with the available equipment. In this case, an increase in output by 5% will not lead to an increase in equipment maintenance costs and maintenance of production facilities. These costs will remain constant. Only the amounts of paid wages, as well as the costs of materials and electricity (variable costs) will change.

The fixed cost graph is a horizontal 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 of materials, energy, components, wages.

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

The variable cost graph looks like this:

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

The Standard Average Variable Cost Graph looks like a parabola.

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

TC \u003d VC + FC

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

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

AC \u003d 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 a marginal analysis of available alternatives.

Marginal cost (MC, marginal cost) is the increment in total costs for the release of an additional unit of production.

Since fixed costs do not affect the increment of total costs, then marginal costs are 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 the derivatives. When we are given individual points (discrete case), then we should use formulas with ratios of increments.

The marginal cost graph is also a parabola.

Let's draw a graph of marginal costs together with graphs of average variables and average total costs:

In the above graph, you can see that AC always exceed AVC, since AC \u003d AVC + AFC, but the distance between them decreases as Q increases (since AFC is a monotonically decreasing function).

The chart also shows that the MC chart crosses the AVC and AC charts at the points of their minimums. To substantiate, therefore, this is so, it is enough to recall the already familiar (from the section "Products") the relationship between the average and the limiting values: when the limiting value is below the average, then the average value decreases with increasing volume. When the cutoff is higher than the average, the average increases with increasing volume. Thus, when the limit crosses the average from bottom to top, the average reaches a minimum.

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

These graphs show the following patterns.

Approximate data:

The monthly income is 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 mini-confectionery business plan with calculations.

Service description

The organization is engaged in baking cakes, pancakes and muffins to order. We are considering a situation when a private entrepreneur independently prepares products for sale. He has no additional employees. There is only a desire of a good cook to become a real seller of sweets. We are considering 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 up and keep afloat for 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. The market was oversaturated. There has been no growth rate since 2000. Even small towns are oversaturated with confectionery.

The competition in the industry is very strong, and accordingly, 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 products to the customer. They do not have variety, or rather, variety, that is, only in large supermarkets they sell the same thing as in a small shop. In general, this is a very relative variety.

People want something special that would be done just for them. So, today, mastic cakes, products with photos, drawings, small toys, and 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 the person or people for whom this cake will be prepared. The same happens with the baking of small muffins, pancakes.

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

Of course, by looking at information on consumer demand, 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 to provide a large number of clients. The number of consumers will be much larger than the number of products manufactured. This will allow you to set a good price for handmade cakes.

Secondly, the segment of sweets and biscuits has the highest demand. At the same time, the competition there is enormous. 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 from making cakes.

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

This may include people of average and above average income levels. As a rule, family people order cakes for birthdays, anniversaries, name days. It is worth paying close attention to families with small children. Parents, as a rule, are very responsible when preparing a holiday for their child. A handmade cake with your favorite cartoon characters will certainly delight your kid.

Of course, it will not do without 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 shops and other catering establishments ... They can be eliminated by separating the customer niche. Not everyone is ready to go to a cafe to celebrate, many do it at home. And the cake will cost a little less, and the taste will be better.
Other private confectioners ... More and more such people appear today. You can fight them. It is necessary to prepare custom-made cakes so that people come again and again. And clients can bring new applicants. In this business, word of mouth is the main engine of advertising. Therefore, all that is required from the pastry chef 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 company. And he has every reason for that. Before organizing a business, you need to study in detail the sphere, the market situation, in the end, assess your own capabilities and take into account possible difficulties.

Not all factors can be controlled. There are those with whom you will have to accept or try to avoid them.

External factors include:

Capabilities:

The ability to use various resources (a large number of suppliers).
Low activity of competitors (meaning that other manufacturers are developing their own production, and not waging an intra-class struggle).
Complete management of your own expenses and income.
High demand for the product.
The novelty of the idea, its "goodness".
The ability to develop new products, recipes, varieties.
Population income growth.
Consumer love for exclusive items.
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 registration of the necessary documents).
The emergence of other individual entrepreneurs with the same idea.
The emergence of new requirements, standards for manufactured products.
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:

An entrepreneur's qualification that determines product quality.
High level of motivation.
High performance.
Using the most effective advertising methods.
Product exclusivity.
Working with reliable suppliers of products.
Use of high quality modern equipment.
Industry experience (pastry chef).
Working with a specific segment.
The profit will depend on the entrepreneur himself.
The cost, 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 worked out.

First of all, an entrepreneur must solve the following issues:

Develop an assortment ... It is best to make a portfolio with your work, a price list with a detailed composition, weight, menu, capabilities. This will not only make your business more presentable, but also give it respect and respectability from clients.
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's worth spending a little time but finding a great supplier with all the required certifications. You can drive through local grocery stores, compare prices.
Start looking for clients in advance ... This can be done at the stage of certification, search for premises.

Opportunity assessment

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

A private entrepreneur need not 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. Moreover, on such days the number of orders is much higher.

It will be possible to find a place of work in any area of \u200b\u200bthe city. The main thing here is to comply with all sanitary standards. The cost also needs to be looked at. It shouldn't be too big. You can take an ordinary room and bring it into a suitable form, in accordance with all the rules and regulations.

It is important to remember that the possibilities for one person are not limitless. If the demand is too high, you can hire another baker-pastry chef to work 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 never had his own business, then he can take advantage of the tax holidays, but more on that later. The following OKVED codes must be specified:

15.81 - Production of bread and flour confectionery products of short storage;
52.24.2 - Retail trade in 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 do you start? With the study of the law on tax holidays. It is very important to see if it is accepted in your city. Please be aware that you can only take advantage of the 0% tax rate 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 maintaining it.
We study all the requirements of the SES, obtain the appropriate permission ( 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 manufactured (in the appendix).
Required certificates of conformity of products to existing requirements.
The equipment must also have certificates (Russian!).
The development of technological maps of the prepared dishes must be coordinated (it concerns exactly the recipe).
A contract must be concluded with an organization conducting disinfection, disinsection and deratization.
No licenses to work not necessary.
It is imperative to develop a program for monitoring compliance with sanitary standards at the enterprise.

Marketing plan

Price policy:

When determining the cost, you need to understand that people are willing to pay good money for quality goods. The cost will be clearly higher than the market average. Who will believe that a delicious, high-quality and exclusive cake can cost 300 rubles? For people, on the contrary, cost will be a kind of quality indicator.

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 significantly increase costs.

Creating your own website ... It is not worth saving on this. You should trust a professional who will make a "tasty" site for good money. It is worthwhile to constantly fill it - add 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 a website - photos, reports, prices, compositions. You can attract new subscribers using advertising on the network.
contextual advertising ... You can use it to advertise your own site where contact information is located, or a group.
"Word of mouth" ... This method plays a huge role. It is impossible to manage it independently. But to influence - very much 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 pastry chef.
Carrying out promotions, discounts, bonuses ... This method will allow you to develop your own customer 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 assume that a pastry chef can cook from 1 to 6 cakes a day. Everything here, of course, will depend on the level of skill. The average weight of the cake is at least 2 kilograms. Thus, the average return will be approximately as follows:

Production plan

Space requirements are the same as for a mini-bakery:

No basements.
There must be a ventilation system.
The presence of cold and hot water, as well as sewerage is required.
Ceilings should be whitewashed and walls tiled.
There should be a toilet and a warehouse in production.

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

Equipment you will need:

bake;
mixer;
tables;
fridge.

The inventory will also include decorative fixtures, 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, the net profit will be equal to 89,800 rubles.

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

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

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

The following contributions are paid from income over RUB 300,000:

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

Thus, the annual income will be: 180,000 * 12 \u003d 2,160,000 rubles.

We do not include costs in our calculations. In a specific 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 payments to calculate the profitability: 3,480 rubles.

Profitability: 86,720 / 180,000 \u003d 48.18%.

Payback: 255,000 / 86,720 \u003d 2.94. Opening a confectionery will pay off in 3 months.

Risks

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

Increase in cost ... It will be connected with the rise in prices for raw materials and rent. You can protect yourself by concluding long-term agreements for the lease of premises and the supply of raw materials.
Increased competition. It is important to work with the customer base, to replenish it, to offer discounts, promotions, bonuses to your regular customers (for example, after purchasing 4 cakes - pankakes are a gift!). Don't forget about quality.
Changes in legislation ... It's impossible to protect yourself somehow. But it is worth remembering that experienced lawyers can always help.
Technological risks (equipment breakdown). Everything is much simpler here. It will not be difficult to buy new equipment if there is such a need.
Risk of delivery delays ... We do not forget about the formation of trade stocks, we are looking for a reliable supplier, we indicate untimely delivery in the contract and the subsequent "sanctions" for the supplier.

Important: Remember that you can draw up a business plan yourself just for your business. To do this, read the articles:

Last request: We are all human and we can make mistakes, overlook something, etc. Do not judge strictly if this business plan or others in the section seemed incomplete to you. If you have experience in this or that activity, or if you saw a defect and can supplement the article, please let us know in the comments! This is the only way we together can make business plans more complete, detailed and relevant. Thanks for attention!

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