BUSINESS IDEA FOR ESTABLISHING A BAKERY

 

BUSINESS IDEA FOR ESTABLISHING A BAKERY

Introduction

Bread and Confectionary products are a well-paid business. These, especially maandazi and bread, are quite nutritive and easily preserved and shelve life can be prolonged. These are products commonly stocked almost by all provision stores. Bread is one common product on people’s dining tables to a size able proportion of the urban and semi-urban communities and therefore enjoys a ready market. This is a project to produce bread, cakes, buns, maandazi, doughnuts etc. This proposal will confine itself to the production of bread, but the same equipment is used to produce all the other products except maandazi which may require some additional machines and cooking oil

Production Capacity, Technology and Process

For bread :- Wheat flour mixed with salt, sugar, yeast, cooking fat, water and other ingredients that may be necessary and kept for fermentation. The fermented dough is divided into desired weights and sizes and molded appropriately, and left to rest for panning. This is later put into greased metal pans and kept in a proofer at 38 degrees and with 88% relative humidity. The pans are finally placed in an oven and baked at varying temperatures between 205 –230 degrees Celsius

Investment Scale, Capital Requirements and equipment

The investment scale depends on the project set objectives.

Production and Operating Costs

Direct Materials, Supplies and Costs in US$

1) Production costs assumed 312 days per year with daily capacity of producing 2,500 loaves of bread.

2) Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.

3) Direct costs include materials, supplies and other costs that directly go into production of the product.

4) Total monthly days assumed are 26-days.

5) The valuation currency used is United States Dollars.

Market Analysis

Bread is a household item therefore has a ready market throughout the year. The market traverses the country. This sector has registered a big number of Investors which includes; 

Source of Supply of Raw Materials:

Wheat Flour and other Ingredients can be purchased locally from the processing Firms.

Government Incentives

It’s better to follow rules and regulations lay down by the government