Question
Rachel wants to run a bakery shop with her friends. She has decided to rent a shop at a prime location. However her friends have
Rachel wants to run a bakery shop with her friends. She has decided to rent a shop at a prime location. However her friends have some doubts and concerns. they are worried about the expenses and if business is going to be profitable or not. Rachel decided to clear their minds by preparing a plan. she wants to include the following items:
MANAGING OPERATIONS AND INFORMATION
IT Resources: What kind of IT resources will such business require?
What computer hardware and software will workers need? Will such business need a network and an Internet connection? What type of network?
Customer Services: How can the use information technology helps to keep track of customers and potential customers?
Cost of Doing Business
What are the costs of doing business? Equipment, supplies, salaries, rent, utilities, and insurance are just some of these expenses. What it might cost to do business for one year.
Expenses
Expected Monthly Cost
Expected Yearly Cost
Rent
Salaries and Wages
Supplies: Technological, Equipment, and Furniture (computers, software, copy machine, desks, chairs, etc.), other
Advertising and Other Promotions
Utilities: Heat, Electricity, etc.
Telephone and Internet
Insurance
Other (specify)
Other (specify)
Expected Revenue
How much should the business charge for its product? How many estimated products can be sold in a year (or how many estimated number of customers such business can attract)?
Income Statement and Balance Sheet
12-Month Income Statement (Profit & Loss Statement)
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
YEARLY
Revenue (Sales)
Category 1
Category 2
Total Revenue (Sales)
Cost of Goods Sold
Category 1
Category 2
Total Cost of Goods Sold
Gross Profit
Expenses
Rent Expense
Salary/Wage Expenses
Supplies Expense
Advertising Expense
Utilities Expense
Telephone/Internet Expense
Insurance Expense
Interest from Loans (if applicable)
Other Expenses (specify)
Total Expenses
Net Profit
Balance Sheet
Assets
Current Assets
Cash in Bank
Cash Value of Inventory
Prepaid Expenses (insurance)
Total Current Assets
Fixed Assets
Machinery & Equipment
Furniture & Fixtures
Real Estate / Buildings
Total Fixed Assets
Total Assets
Liabilities & Net Worth
Current Liabilities
Accounts Payable
Taxes Payable
Notes Payable (due within 12 months)
Total Current Liabilities
Long-Term Liabilities
Bank Loans Payable (greater than 12 months)
Less: Short-Term Portion
Total Long-Term Liabilities
Total Liabilities
Owners' Equity (Net Worth)
Total Liabilities & Net Worth
Floor Plan: What does it look like when a customer walk through the door?
Raw Materials and Supplies: What types of raw materials and supplies are needed for such business? How goods can be produced? What equipment needed? Hours of operations?
Quality Assurance: Steps to ensure and maintain the quality of the product. Who can be responsible for maintaining the quality of the product or service?
Please help Rachel for her plan.
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