Entrepreneurial Mind

Bake n Cake

Group Members:

Acuña, Michaella

Bacud, Mikaela Joyce

Basallote, Aezel

Cruz, Lawrence

Deogracias, Kristen

Dictado, Iwa Redgsen T.

Elias, Saimah

Palado, Jan Jaicell Magdalene

2025
 Executive Summary

Welcome to Bake n Cake! Every bite here is a celebration of passion,

creativity, and comforting indulgence. Bake n Cake is a pastry business founded on

the belief that desserts do more than satisfy sweet cravings. They bring people

together, create memories, and turn everyday moments into something special.

History of the Business

Bake n Cake was founded in 2023, born from the founders' love of baking and

the joy it brought to family and friends. What started with small weekend orders soon

turned into a full-fledged venture as word spread about our rich chocolate moist cakes,

blueberry cheesecakes, and melt-in-your-mouth cookies.

Recognizing a growing demand for quality, artisanal pastries in the local

market, Bake n Cake officially opened its first storefront in 2024. With a cozy

atmosphere, attention to detail, and an expanding menu, the shop quickly gained a

loyal following. Whether it’s birthdays, holidays, or just a midweek pick-me-up,

customers know they can rely on Bake n Cake to deliver not only delicious baked

goods but a moment of joy.

As the business grows, we remain committed to our core values: quality,

consistency, customer care, and continuous innovation. Today, Bake n Cake continues

to craft sweet moments that bring warmth, flavor, and connection to every customer

experience.

History of the Name

The name Bake n Cake was born from the idea of transforming pastries into

more than just sweet treats—they're meant to be joyful, everyday indulgences. The
group Sweet Serenity drew inspiration from Europe's vibrant cafe culture, where the

aroma of freshly baked goods fills the air and pastries are enjoyed as part of daily life.

Aiming to capture that same warmth and charm, she envisioned a pastry concept that

was approachable, delightful, and bursting with flavor—something that would stand

out from traditional pastry shops.

Mission

Our mission is to deliver Bake n Cake products that bring joy to people’s

hearts, whether they are local or from other places. We are committed to promoting

high-quality pastry that stay true to their traditional roots while introducing exciting

new flavors and creations. Our goal is to provide a delightful treat, making sure our

products remain fresh, fun, and accessible without compromising on quality and care

in every bite.

Vision

Our vision is to establish Bake n Cake as a renowned and trusted brand,

recognized for its delicious products and the innovative approach we bring to the

pastry experience. We aim to be a key player in the dessert industry, promoting both

the joy of indulgence and the value of quality ingredients. With the success of our

venture, we look forward to expanding our reach, potentially transforming pastry into

a leading business in the dessert market.

Objective:

Bake n Cake’s objective is to become the go-to pastry shop for students,

market-goers, and professionals looking for delicious, affordable, and comforting

baked goods. We aim to bring the warmth and joy of freshly baked cakes and pastries

to our customers by using high-quality ingredients and offering creative twists on

classic favorites. We strive to provide a warm and welcoming environment where

customers may relax, connect with others, and savor delicious sweets that turn

ordinary moments into unforgettable ones. The business products are perfect for quick

breaks, celebrations, and for simply satisfying a sweet craving, all while staying

budget-friendly. Bake n Cake ensures that every bite brings happiness, and every

visit leaves lasting moments.

Goals:

* Ensure customer satisfaction and loyalty.

* Sell at least 3,500 units per month to ensure sustainability and meet break-even

projections.

* Maintain a 50% profit margin or higher.

* Achieve consistent product sell-outs.

* Keep prices budget-friendly without compromising quality.

* Establish Bake n Cake as a well-known and trusted pastry shop on and beyond

Plaridel.

* Continuously improve based on customer feedback and market trends.

* Build a reputation for quality, cleanliness, and creativity.

 Marketing Plan

Bake n Cake is a pastry shop dedicated to serving freshly baked, high-quality

pastries that bring warmth and joy to every bite. Specializing in classic favorites like

ensaymada, pandesal, egg pie, and leche flan, we combine traditional flavors with

premium ingredients to create treats perfect for any occasion. With a strong focus on

quality, affordability, and customer satisfaction, Bake n Cake aims to become a go-to

destination for delicious pastries.

SWOT ANALYSIS

Strengths Weaknesses

· Superior Products: Made by hand methods · Perishability: Baked items' short shelf life

and freshly baked items with distinctive could result in waste.

flavors.
· Expensive operating costs include the

· Professional Bakers & Employees: Skilled cost of skilled labor, rent, and ingredients.

pastry chefs with amiable customer service.

· Limited Scalability: Making pastries by

· Strong Brand Identity: An established hand takes time and could be difficult to do in

specialty or reputation (e.g., vegan delicacies, large quantities.

French pastries).
· Seasonal Demand: Sales may vary, with

· Repeat business and word-of-mouth holidays seeing the most demand.

advertising comprise the loyal customer base.

Dependency on Foot Traffic: Sales may

· Beautifully arranged pastries that garner suffer from an unfavorable location

attention on social media are an example of

aesthetic appeal.

· A varied menu that accommodates a range

of dietary requirements (vegan, gluten-free,

and keto).

Opportunities Threats

· Online Ordering and Delivery: Using meal · Economic downturns may cause people

delivery applications and e-commerce to to spend less on things they don't need.

increase sales.
· Competition: Pastries are available at a

· Specialty & Custom Orders: Birthday, lot of bakeries, supermarkets, and coffee

wedding, and event catering. shops.

· Collaborations: Joining forces with nearby · Changes in costs for ingredients: rising

companies or coffee shops. prices for chocolate, butter, and flour.

· Providing organic, sugar-free, or high- · Food Safety Regulations: Adherence to

protein pastries are examples of health- possible recalls and health codes.

conscious trends.
· Shifting Customer Preferences: Low-carb

· Social media marketing includes viral diets and other trends may have an effect on

campaigns, influencer collaborations, and sales.

interesting content.
Product

* Ensaymada

- Size and Quantity: 3-4 inches in diameter and 1-2 inches in thickness;

available in per-piece and packs of 6 or 12 pieces.

- Appearance: Our Ensaymada has a golden brown color with a soft and fluffy

texture. It's topped with a generous sprinkle of grated cheese.

- Serving style: Our Ensaymada will be served in a paper liner or placed in a

box for takeaway.

* Ube Pandesal/Pandesal

- Size and Quantity: Small, about 2-3 inches long; sold per piece; 6-12 per bag

- Appearance: Purple color, soft and fluffy, with sugar on top.

- Serving style: Served in paper bags or small boxes, best eaten warm with

butter or fillings.

* Spanish Bread

- Size and Quantity: About 4 inches long; sold per piece or in boxes of 6-12

- Appearance: A golden, slightly crispy roll with a swirled interior, filled with

a buttery, caramelized sugar mixture and lightly dusted with sugar.

- Serving style: Served in paper bags or small box

* Egg Pie

- Size & Quantity: Available in whole 9-inch pies or by slice.

- Appearance: A rich, creamy yellow custard filling with a caramelized

golden-brown top, encased in a flaky, buttery crust.

 - Serving: Whole pies are packaged in cake boxes, while slices are placed in

individual pastry containers.

* Leche Flan

- Size & Quantity: Served in oval llanera (6-7 inches long), sold per piece.

- Appearance: A glossy, golden-brown caramel top with a smooth, dense, and

creamy custard.

- Serving: Delivered in traditional aluminum llaneras, perfect for home

enjoyment or gifting.

* Chocolate Moist Cake

- Size & Quantity: Available in 6-inch or 8-inch round sizes or per slice.

- Appearance: A rich, dark, and fudgy chocolate cake layered with glossy

chocolate ganache and decorated with chocolate shavings or sprinkles.

- Serving style: Comes in a classic cake box, while slices are placed in

individual pastry containers, with the option for customized messages or

additional toppings.

- Special Requests: Customers can send in design inspirations, and Bake n

Cake offers consultations to bring their cake vision to life. Lead time for

custom cakes is typically 3-7 days, depending on design complexity.

* Cookies

- Size & Quantity: Small, around 2-3 inches, sold per piece or in a pack of 6-

12.
 - Appearance: Crunchy or chewy, with yummy toppings.

- Serving style: In a bag, cute plastic perfect for snacking.

* Cupcakes

- Size & Quantity: Small, around 2-3 inches; sold per piece and 6-12 pieces in

a box.

- Appearance: Small individual cakes with frosting and decorations, perfect

for a quick dessert or snack.

- Serving style: In a box, and a small box, easy to grab and go.

* Donuts

- Size: Small, around 2-3 inches

- Quantity: Per piece and 6-12 pieces in a box.

- Appearance: fried dough treats, often topped with glaze, sprinkles, or other

tasty toppings

- Serving style: In a box or paper wrapper if sold individually.

* Croissants

- Size & Quantity: About 6 inches long, flaky and crescent-shaped; typically

sold individually or in packs of 3-6.

- Appearance: Golden brown, crispy outside, soft and buttery inside.

- Serving style: Wrapped in wax paper for takeout or in a box.

* Blueberry Cheesecake

- Size & Quantity: Available as a 6-inch or 8-inch whole cake or per slice.

- Appearance: A rich and creamy cheesecake with a buttery graham cracker

crust, topped with a generous layer of sweet blueberry compote. The glossy

blueberries add a vibrant touch, making it both visually appealing and

delicious.

- Serving Style: Whole cakes are packaged in cake boxes, while slices are

placed in individual pastry containers, perfect for takeaway or dine-in

enjoyment.

Price

Pricing Strategy

Setting up the right pricing strategy is essential for starting a business. Setting

the right prices to attract customers and keep the business going strong is important.

Aside from the quality of the product, the place, and the service, the owner must

consider how the financial matter will be handled. A good pricing strategy makes sure

pastries are affordable while still bringing in enough profit to grow the shop.

One approach is competitive pricing, where the shop sets its prices in line with

or slightly lower than nearby pastry shops. This makes sure customers feel they’re

getting a fair deal without sacrificing quality. By mirroring or slightly undercutting

competitors, businesses can attract customers who are primarily driven by price.

To keep customers coming back, loyalty discounts can also work. Punch cards

can make a big difference, especially to loyal customers, because the shop rewards

repeat purchases and encourages continued engagement with the pastry shop.
Completing a punch card also gives customers a feeling of accomplishment and

satisfaction. A “Buy 5 pastries, get 1 free” reward also encourages customers to buy

more to get another pastry for free, increasing sales.

Baking Equipment Price

Small/Commercial Oven: PHP 25,000 - PHP 100,000

Entry-level Stand Mixer: PHP 15,000 - PHP 30,000

Small proofing cabinet: PHP 15,000 - PHP 30,000

Large or walk-in fridge/freezer: PHP 80,000 - PHP 150,000

Countertop oven: PHP 10,000 - PHP 20,000

Total cost: PHP 145,000 - PHP 330,000

Preparation Equipment

Muffin trays, cake pans, cookie sheets: PHP 2,000 - PHP 10,000 (per set)

Rolling pin: PHP 300 - PHP 1,000

Dough scraper: PHP 100 - PHP 500

Mixing bowls (set): PHP 500 - PHP 2,000

Spatulas: PHP 100 - PHP 500

Whisks: PHP 200 - PHP 600

Total cost: PHP 3,200 - PHP 14,600

Small Equipment & Tools

Food processor or high-speed blender: PHP 3,000 - PHP 10,000

Oven and candy thermometers: PHP 200 - PHP 1,000 each

Pastry bags and piping tips: PHP 500 - PHP 2,000

Total cost: PHP 3,700 - PHP 13,000

Ingredient Cost

Ingredients Estimated Monthly Cost

Flour PHP 2,500 - PHP 3,500

Sugar PHP 1,000 - PHP 1,500

Butter PHP 2,500 - PHP 5,000

Eggs PHP 2,000 - PHP 3,500

Dairy (Milk, Cream, Cream Cheese, etc.) PHP 5,000 - PHP 10,000

Other Baking Ingredients PHP 1,500 - PHP 3,000

Specialty Ingredients PHP 4,000 - PHP 10,000

Total estimated monthly ingredients: PHP 18,500 - PHP 36,500

Product Pricing List

Ensaymada

Per Piece: PHP 55

 Pack of 6: PHP 330

Pack of 12: PHP 660

Ube Pandesal / Pandesal

Per Piece: PHP 18

Pack of 6: PHP 108

Pack of 12: PHP 216

Spanish Bread

Per Piece: PHP 30

Pack of 6: PHP 180

Pack of 12: PHP 360

Egg Pie

Per Slice: PHP 65

Leche Flan

Per Piece (Llanera): PHP 130

Chocolate Moist Cake

6-inch Cake: PHP 565

8-inch Cake: PHP 965

Per Slice: PHP 135

Cookies

Per Piece: PHP 40

Pack of 6: PHP 240

Pack of 12: PHP 480

Cupcakes

Per Piece: PHP 80

Pack of 6: PHP 480

Pack of 12: PHP 960

Donuts

Per Piece: PHP 45

Pack of 6: PHP 270

Pack of 12: PHP 540

Croissants

Per Piece: PHP 70

Pack of 3: PHP 210

Pack of 6: PHP 420

Blueberry Cheesecake

6-inch Cake: PHP 900

 8-inch Cake: PHP 1300

Per Slice: PHP 190

Place

Bake n Cake will soon open its doors at Cagayan Valley Road, Banga 1st,

Plaridel, Bulacan, Philippines. Situated across from the Plaridel Public Market, beside

Citystate Savings Bank, and near to Marcelo-Padilla Children's & Medical Hospital

and Mercury Drug. Bake n Cake’s location is perfect for market-goers, medical staff

seeking a quick meal, students, and those running daily errands. The business is

committed to providing high-quality baked goods while still being on the budget that

every Plarideleños will surely love and afford. This strategic placement ensures that

Bake n Cake will be a prominent and easily accessible sweet destination.

Figure 1: Store Location

 Figure 2: Store Exterior Figure 3: Store Interior

Estimated Monthly Operating Costs

Rent PHP 20,000 - 30,000

Utilities (Electricity, Water, Internet) PHP 7,000 - 16,000

Miscellaneous Expenses PHP 1,500 - 4,500

Insurance PHP 2,000 - 5,000

Total: PHP 30,500 - 55,500

Promotion

The Bake n Cake promotion strategy focuses on building a strong connection

with our target market, ensuring better product visibility and engagement. Our

approach includes collaborating with influencers to showcase our products and attract

a wider audience. Additionally, we will highlight our offerings through visually

appealing displays and promotional materials, such as posters placed in strategic

locations, to set clear expectations for potential customers. Lastly, we will strengthen

customer relationships by offering exclusive deals and special pricing, creating a

sense of value and loyalty among our clients.

Expenses Cost

Loyalty Cards (100 pcs) PHP 2,000

Influencer PHP 10,000

Social Media PHP 1,500

Other Events and Activities PHP 12,000

Posters (50 pcs) PHP 3,500

Total: PHP 29,000

Loyalty Card:

Poster:
Campaign Calendar
People

Overview:

Bake n Cake is a high-end bakery specializing in fresh, gourmet pastries,

cakes, and baked goods. Located in a prime location, we focus on offering a delightful

experience with top-quality ingredients and exceptional customer service. Our target

market includes local residents, tourists, professionals, and anyone with a passion for

delicious, artisan pastries. We aim to create a warm, welcoming environment where

our customers can indulge in a sweet escape from their daily routine.

Target Market & Customers:

Our primary target market consists of the following:

1. Local Residents – Families and individuals living in the surrounding neighborhood

who seek fresh and high-quality pastries for everyday indulgence, special occasions,

or as gifts.
2. Tourists – Visitors exploring the city who are looking for authentic, locally-made,

gourmet pastries and treats.

3. Professionals and Business Owners – Local professionals and office workers

looking for a quick but delightful breakfast, snack, or lunch.

4. Event Planners and Hostesses – Those organizing weddings, parties, and corporate

events who are in need of custom cakes, catering, and pastry trays.

5. Health-Conscious Consumers – A growing segment that seeks gluten-free, sugar-

free, and vegan pastry options.

Target Customers:

Our target customers are:

• Age: 16-45 years old

• Demographics: Middle to upper-middle-class individuals with disposable income,

including both men and women.

• Lifestyle: Professionals, families, and food enthusiasts who enjoy indulging in

gourmet treats and are willing to pay for highquality, artisan products.

• Values: Our customers value quality ingredients, locally sourced products, and a

personalized, friendly shopping experience.

Staff Structure and Job Descriptions:

1. Owner (1)
Job Description: The Owner is responsible for the overall direction of the pastry shop,

ensuring its long-term success and profitability. The Owner works closely with the

Manager to oversee daily operations, make key business decisions, and maintain the

vision and brand of the bakery

Key Responsibilities:

• Oversee business strategy, including marketing, sales, and growth plans.

• Handle financial management, including budgeting, pricing, and profits.

• Manage vendor relationships and negotiate contracts for ingredients and supplies.

• Ensure quality control, taste consistency, and customer satisfaction.

• Collaborate with the Manager on staffing and operational decisions.

• Innovate product offerings and keep the menu fresh and exciting.

• Develop promotional campaigns and seasonal product lines.

• Represent the bakery in community and industry events.

2. Manager (1)

Job Description: The Manager is responsible for overseeing the daily operations of the

bakery, ensuring everything runs efficiently, and that customer satisfaction is

maintained. They report directly to the Owner and ensure that staff adhere to the

bakery's standards.

Key Responsibilities:
• Oversee day-to-day bakery operations, including inventory management, scheduling,

and staff performance.

• Supervise and support staff, ensuring they provide excellent customer service.

• Ensure compliance with food safety, sanitation, and health regulations.

• Maintain inventory, order supplies, and track product quality.

• Handle customer complaints, concerns, and feedback.

• Develop and implement procedures to improve customer service and operational

efficiency.

• Work with the Owner on marketing efforts, promotions, and community outreach.

3. Supervisors (2)

Job Description: Supervisors are responsible for managing specific areas of the

bakery, either the front-of-house operations (sales staff) or back-of-house operations

(baking). They ensure that their teams maintain high standards and work in an

efficient, customer-friendly manner.

Key Responsibilities:

• Front-of-House Supervisor:

◦ Manage and lead the sales staff, ensuring excellent customer service.

◦ Assist with stock management and ensure shelves and displays are always stocked

with fresh items.

◦ Oversee cashier operations and manage transactions.

◦ Ensure that the bakery is clean and organized at all times.

◦ Help with training and onboarding of new sales staff.

• Back-of-House Supervisor (Baking):

◦ Supervise the kitchen staff, ensuring all baked goods are prepared to standard.

◦ Maintain cleanliness and organization in the kitchen.

◦ Manage preparation schedules and ensure timely baking for customer demand.

◦ Assist in developing new recipes and rotating seasonal offerings.

◦ Ensure all health and safety standards are followed in the kitchen.

4. Sales Staff (4)

Job Description: Sales staff are responsible for providing exceptional customer

service, assisting customers with their pastry selections, managing the checkout

process, and maintaining a clean, inviting shop environment.

Key Responsibilities:

• Greet customers warmly and assist them with product selection.

• Process transactions accurately using the POS system.

• Upsell specialty items, seasonal pastries, and catering services.

• Maintain the cleanliness and organization of the sales area.

• Prepare and pack orders for takeaway or special requests.

• Help with restocking and ensuring display cases are full with fresh products.

• Ensure the overall customer experience is positive and professional.

• Handle customer inquiries, concerns, and complaints in a friendly manner.

5. Bakers/Pastry Chefs (5)

Job Description: Bakers and Pastry Chefs are responsible for creating and preparing

all baked goods and pastries sold in the bakery. They ensure that products meet the

shop's quality standards and work creatively to introduce new and exciting items.

Key Responsibilities:

• Prepare and bake a variety of pastries, cakes, cookies, and other baked goods.

• Follow recipes and ensure product consistency.

• Maintain cleanliness and organization in the kitchen.

• Create custom orders for special events like weddings and birthdays.

• Innovate new product lines and introduce seasonal treats.

• Maintain and clean baking equipment.

• Ensure proper food storage and adhere to health and safety standards.

• Assist in managing inventory for baking supplies.

6. Support Staff (2)

Job Description: Support staff are responsible for ensuring that the bakery remains

clean, organized, and well-stocked. They assist with various tasks throughout the

bakery, including cleaning, inventory management, and dishwashing.

Key Responsibilities:

• Clean and maintain the bakery, including floors, countertops, and equipment.

• Assist in washing dishes, utensils, and kitchen tools.

• Restock supplies, including packaging materials and ingredients.

• Help with organizing the storage areas.

• Assist with food prep and handling during peak hours.

• Help with product packaging and labeling for deliveries or catering orders.

Total Staff Count:

• 1 Owner

• 1 Manager

• 2 Supervisors

• 4 Sales Staff

• 5 Bakers/Pastry Chefs

• 2 Support Staff

Total Staff: 15 employees

This structure allows for smooth operations and high-quality customer service, with a

focus on craftsmanship, cleanliness, and customer satisfaction. The division of roles

ensures that each team member has clear responsibilities and can contribute to the

success of the business.

Process

Bake n Cake’s operational process begins with the sourcing of premium

ingredients. High-quality flour, butter, sugar, chocolate, and fruits are sourced from

trusted suppliers, prioritizing freshness and seasonality. Upon arrival, ingredients are

inspected for quality and stored immediately and appropriately to maintain freshness.

Next, the baking process starts as the skilled baker, trained in both classic and

modern techniques, meticulously prepares doughs, fillings, and icings according to

precise recipes. Every step is carried out with accuracy, from creaming butter and

sugar to mixing delicate ingredients. Baking is done in top-grade ovens, and the

temperature and time are carefully monitored to ensure consistent results.

After baking, pastries are carefully decorated and presented. Glazes, icings,

and garnishes are applied with artistry, enhancing both the visual appeal and the

overall sensory experience. Quality control checks are performed at this stage by the

bakers and staff to ensure consistency and adherence to standards. Finished pastries

are displayed attractively in refrigerated glass cabinets to maintain freshness and a

mouth-watering appeal.

Customers can order pastries in-store or online through the shop's social media

pages. Online orders are processed through a dedicated delivery system and through

the dispatch assigned staff, while payments can be made through online banking or

cash on delivery. In-store orders are taken promptly and efficiently by trained staff.
Menus are displayed at the cashier area for customers to easily see it and place their

orders. Payments can also be made through online banking or in cash. All orders are

carefully prepared, packaged using attractive and protective containers, and labeled

with clear instructions for handling and storage. Delivery is delicately managed to

ensure pastries will arrive fresh and in perfect condition to the customers.

The shop itself maintains a welcoming atmosphere, featuring elegant décor, a

pleasant ambiance, and an aesthetic interior. Staff are trained to provide friendly and

efficient service, assisting customers with their orders and answering any questions.

The shop maintains a well-thought inventory management system that tracks

ingredient delivery and usage, minimizing waste and ensuring sufficient stock

levels. Regular equipment maintenance, including oven cleaning and calibration, is

scheduled to maintain excellent performance and hygiene. Strict adherence to food

safety regulations and hygiene protocols is implemented throughout the entire process.

Finally, Bake n Cake will actively seek customer feedback through surveys,

online reviews, and direct interaction. This feedback is to identify areas for

improvement ensuring that Bake n Cake consistently delivers exceptional pastries and

a memorable experience for every customer.

Physical Evidence

1. Environment

Bake n Cake provides a warm and inviting atmosphere for customers. Our bakery is

designed with a cozy ambiance, featuring rustic wooden interiors, pastel-colored walls,

and the delightful aroma of freshly baked goods. The display counters showcase our

cakes, cupcakes, and pastries, ensuring customers can see the quality and freshness of

our products. Comfortable seating areas allow customers to relax and enjoy their

treats with a cup of coffee or tea.

2. Tangible Cues

Tangible cues are essential in reinforcing the quality of our products and brand

identity. Bake n Cake uses premium packaging, including:

• Elegant cake boxes with our logo embossed in gold

• Branded cupcake holders with decorative designs

• Personalized pastry bags with a thank-you note

• High-quality, reusable cake toppers for custom orders These elements enhance the

customer’s experience and serve as a reminder of our premium bakery services.

3. Branding Materials
Bake n Cake maintains a strong brand presence through various branding materials,

including:

• Logo & Signage: A stylish and modern logo that represents our brand, displayed on

our storefront and packaging.

• Menu & Brochures: Printed and digital menus showcasing our offerings with vibrant

images and detailed descriptions.

• Staff Uniforms: Our team wears customized aprons and caps with the Bake n Cake

logo, reinforcing brand identity.

4. Business Permit
5. Customer Feedback

- Chocolate Dream Cake

Customer: Maria S.

Review: "The Chocolate Dream Cake was incredibly rich and moist! Every bite

melted in my mouth. Highly recommended!"

- Red Velvet Cupcakes

Customer: John D.

Review: "These cupcakes are perfection! The cream cheese frosting is just the right

balance of sweet and tangy. I’ll definitely be back for more!"

- Blueberry Cheesecake

Customer: Anna R.

Review: "Absolutely loved the Blueberry Cheesecake! The texture was so creamy,

and the fresh blueberries added a perfect touch."

 Financial Plan

I. CAPITAL

Source of Capital

Personal savings will be the main source of funding for this business. Our money has

been used to pay for working capital, marketing, inventory, equipment, and other

initial startup expenses totaling ₱500,000.

The business retains full control over financial planning and decision-making

by using personal savings instead of loans or investor capital. This strategy

demonstrates the owner's commitment and confidence in the success of the company,

reflecting a strong belief in the business concept and a willingness to assume the

financial risk independently.

II. COSTS

Fixed Costs

Expense Category Price

Rent or Lease ₱20,000 monthly

Equipment Purchases (one-time) ₱151,900

Business Permits and Licenses ₱10,000

Insurance (Property and Liability) ₱5,000

Salaries (14 employees) ₱140,000

Total: ₱326,900
Variable Costs

Utilities (Electricity, Water, Internet) ₱7,000

Miscellaneous Expenses ₱4,500

Transportation & Delivery ₱4,000

Cleaning Supplies ₱1,500

Baking Supplies Restock ₱2,000

Total: ₱19,000

Raw Materials

Material Unit Cost Monthly Quantity

Flour ₱7,000 120kg

Sugar ₱1,500 30kg

Butter ₱8,000 40kg

Eggs ₱6,000 700pcs

Dairy Products ₱10,000

Specialty Ingredients ₱10,000

Other Baking Supplies ₱3,000

Total: ₱45,500
Other Operating Expenses:

Marketing and Advertising Cost

Loyalty Cards (100 pcs) ₱2,000

Influencer ₱10,000

Social Media ₱1,500

Other Events and Activities ₱12,000

Posters (50 pcs) ₱3,500

Total: ₱29,000

Delivery Fees ₱1,500

Online Selling Platform Fees ₱1,000

Repairs and Maintenance ₱2,000

Total: ₱4,500

Overall: ₱33,500

III. BREAK-EVEN ANALYSIS

• Break-Even Point Formula

Break-Even Point (Units) = Fixed Costs / (Selling Price per Unit - Variable Cost per

Unit)

• Selling Price per Unit: 55 + 18 + 30 + 65 + 130 + 135 + 40 + 80 + 45 + 70 + 190 /

11 = ₱78.
• Variable Cost per Unit: ₱45,500 (Raw Materials) + ₱19,000 (e.g., utilities,

delivery, etc.) = ₱64,500. Now, assuming we’ll sell 3,500 units, our variable cost per

unit is ₱18.43.

•Calculate Break-Even:

Break-Even Point (Units):

= ₱175,000 / (₱78 - ₱18.43)

= ₱175,000 / ₱59.57

= 2,938 units

• Break-Even Units and Timeline

This means the business needs to sell approximately 2,938 units to break even.

If the business projects to sell around 3,500 units per month, the break-even point

would be reached within the first month.

Conclusion:

The business must sell approximately 2,938 products to recover its fixed and

variable costs. At an estimated sales rate of 3,500 units per month, we anticipate

reaching the break-even point within the first month of operation. This is a strong

indication of early financial viability and a promising return on the initial investment.

IV. INCOME PROJECTION

Product Unit Price (₱) Quantity Sold per Monthly

(Per Month Revenue

Piece/Slice) (₱)

Ensaymada 55 505 27,775

Ube Pandesal/ 18 412 7,416

 Pandesal

Spanish Bread 30 343 10,290

Egg Pie 65 343 22,295

Leche Flan 130 206 26,780

Chocolate Moist 135 292 39,420

Cake

Cookies 40 275 11,000

Cupcake 80 360 28,800

Donuts 45 275 12,375

Croissants 70 205 14,350

Blueberry 190 284 53,960

Cheesecake

Total: 3,500 units Total: ₱254,461

YEAR 1

* Total Monthly Revenue: ₱254,461

* Annual Revenue: ₱254,461 x 12 = ₱3,053,532

* Monthly COGS: ₱45,500

* Annual COGS: ₱45,500 × 12 = ₱546,000

* Gross Profit: ₱3,053,532 - ₱546,000 = ₱2,507,532

* Total Monthly Expenses: ₱194,000

* Annual Expenses: ₱194,000 x 12 = ₱2,328,000

* Operating Profit: ₱2,507,532 - ₱2,328,000 = ₱179,532

 Risks

Summary

Running Bake n Cake involves more than just creating delicious treats—it also

means being prepared for risks that can impact our operations, finances, reputation,

and overall business continuity. Through a detailed SWOT analysis and operational

review, we have identified key risk areas such as equipment breakdowns, supply

disruptions, changing customer demands, financial instability, and regulatory

challenges.

By recognizing these risks early, we can implement effective strategies to

reduce their impact. These include regular maintenance of equipment, diversifying

suppliers, monitoring cash flow, adapting to market trends, ensuring regulatory

compliance, and improving customer satisfaction. We also aim to stay proactive in

responding to external threats like natural disasters and inflation through planning,

community engagement, and insurance.

Ultimately, risk management is not about eliminating uncertainty, but about

building resilience. With consistent monitoring, preparedness, and a flexible approach,

Bake n Cake can confidently face challenges, maintain quality service, and continue

to grow in a competitive market.

Identifying Risks at Bake n Cake

To effectively identify risks in Bake n Cake, we’ll begin by conducting a

SWOT Analysis. This will help us evaluate both external and internal factors. From

these insights, we can spot common risk areas like supply issues, perishability of

products, or strong competitors.

 We need to review our daily operations and examine every stage of the

workflow from sourcing ingredients to baking, storage, sales, and delivery. This will

help us uncover operational vulnerabilities such as equipment failures, delays in

production, and inventory spoilage. We need to assess the condition and reliability of

essential tools like ovens, mixers, and refrigerators, and evaluate the consequences of

breakdowns, which can lead to our business production delays, income loss, and

unexpected repair costs. We also need to consider our supply chain and consider what

would happen if a delivery is late or if the prices of essentials like butter, eggs, or

flour suddenly increase.

Checking also our financial health is important. We need to analyze our

monthly cash flow and be alert to tight budgets, over-reliance on borrowed funds, or

limited cash reserves, especially during off-peak seasons. Poor cash flow or financial

instability is a serious risk that can jeopardize even the best-run businesses.

We need to stay alert to the external environment as well. Like being informed

about the growing demand for healthier pastry options and considering how changes

in regulation, such as updated food safety laws, could impact our business. Study our

competition, especially those offering aggressive pricing, trending products, or strong

social media presence. These insights will help us prepare for market shifts and guard

against becoming outdated or losing market share. Compliance and food safety are

also critical areas to monitor. Regularly audit our kitchen’s hygiene, storage

conditions, and documentation to ensure all health and safety regulations are followed.

Failing inspections can lead to our business fines, temporary closures, or damage to

our reputation.
 Lastly, we need to create and regularly update our risk checklist to ensure

we're not caught off guard by predictable but often overlooked risks. It also promotes

a proactive mindset across our team, encouraging early identification and mitigation

of issues before they escalate.

Identified Risks for Bake n Cake

1. OPERATIONAL RISKS

Equipment Breakdown

If the ovens, mixers, or refrigerators fail, Bake n Cake may be unable to

produce or store pastries, resulting in production delays and a loss of income.

Supply Chain Disruptions

If the ingredient suppliers are delayed or cannot deliver, the business may run

out of stock and miss sales.

Staff Turnover or Shortages

Skilled bakers and reliable staff are essential but can be hard to retain.

Perishable Inventory Spoilage

Baked goods go stale quickly, leading to waste and lost profit.

2. FINANCIAL RISK

Rising Costs of Raw Materials

Ingredients like butter, sugar, and flour might suddenly become more

expensive, reducing the business profit margins unless prices carefully.

Unexpected Expenses

Equipment breakdowns, store issues, and other unforeseen problems that

require emergency repairs or lead to fines can strain the budget especially if

Bake n Cake doesn't have savings set aside.

Cash Flow Problems

 Daily expenses such as rent, salaries, and supplies must be paid regularly;

however, if sales decline, the business may struggle to cover these costs.

Seasonal Demand Changes

Sales may drop in off-peak seasons without events or holidays.

3. MARKET RISKS

• Changing Customer Preferences

Today’s customers are hungry for more than just sweet treats, they crave

healthier, guilt-free options like keto, gluten-free, and organic pastries. If Bake

n Cake doesn’t evolve with these trends, it could quickly fall behind

competitors who serve what modern appetites demand.

• Strong Competition

New bakeries, cafes, or dessert shops can take customers away, especially if

they offer better prices, newer products, aggressive marketing, and an

aesthetic atmosphere.

• Low Foot Traffic

Location or lack of marketing can reduce customer visits.

4. REPUTATION RISK

• Negative Reviews

A few bad customer experiences (like late deliveries or poor product quality)

can harm Bake n Cake’s image and scare away future customers.

5. REGULATORY AND COMPLIANCE RISKS

• Health and Safety Violations

If Bake n Cake fails health inspections for reasons such as dirty kitchens and

improper food storage, the business could be fined, shut down temporarily, or

lose its business license.

6. EXTERNAL RISKS

• Natural Disasters

Floods, typhoons, or earthquakes can disrupt business operations, cause

property damage, or stop deliveries.

• Inflation

As inflation rises across the country, everything gets more expensive

(ingredients, rent, wages), and it becomes harder to maintain profitable prices

without losing customers.

Mitigation

Bakeries face several operational risks, but these can be mitigated with targeted

strategies.

1. Operational Risks

Equipment Breakdown

To avoid problems with equipment, Bake n Cake should regularly check and

maintain their machines, like ovens and fridges, and have backups ready just

in case. If something breaks, having a repair service on call can help fix it

fast.

Supply Chain Disruptions

For supply issues, they should buy ingredients from different suppliers and

keep extra stock to avoid running out. Using a system to track inventory and

having local backup suppliers can also help if deliveries are late. These steps

can keep things running smoothly.

Staff Turnover or Shortages

 To mitigate the risk of staff turnover or shortages, we will offer competitive

compensation, invest in employee training and career development, foster a

positive and supportive work environment, implement flexible scheduling, and

proactively recruit skilled bakers through partnerships with culinary schools

and local programs.

Perishable inventory spoilage

To minimize waste, it is important to undertake demand by analyzing past

sales trends and consider keeping inventory at controlled and low levels by

refreshing it with new batches produced throughout the day. Moreover,

employing the First In, First Out reinforcement.

2. Financial Risks

Rising Costs of Raw Materials

Bake n Cake should keep a close eye on ingredient prices and adjust their

product prices if costs go up, so we won’t lose profit.

Unexpected Expenses

To mitigate the risk of unexpected expenses, we will create an emergency

fund, schedule regular maintenance to prevent equipment breakdowns, obtain

appropriate insurance coverage, and implement a contingency budget to

handle unforeseen repairs or regulatory fines without disrupting operations.

Cash Flow Problems

To avoid cash flow problems, they should track their income and expenses

carefully, plan their budget, and save during busy seasons to cover slower ones.

These steps can help keep their finances stable even when challenges come up.

Seasonal Demand Changes

 To deal with seasonal demand changes, we will look at past sales to plan

ahead, adjust how much we bake and how many staff we need, create special

seasonal items to attract customers, and offer a variety of products to keep

sales steady all year.

3. Market Risks

Changing Customer Preferences

Bake n Cake should stay updated on what customers want, like healthier or

trendy options such as keto, gluten-free, or organic treats, and add these to the

menu to stay competitive.

Strong Competition

Run promotions, improve their store’s look and vibe, and use social media to

attract more customers. Keeping an eye on what competitors are doing and

finding ways to stand out like offering unique products or better service can

help them keep their customers and grow their business.

Low Foot Traffic

Local marketing, social media, and loyalty programs should all tie bakeries

into the community. Finding ways to engage their community by hosting

events, working alongside neighbouring businesses and working on their

online presence through Google listings and delivery apps can make a huge

difference in foot traffic. This proactive approach can keep the bakery

business running smoothly and protect profitability.

4. Reputation Risk

Negative Reviews

To protect its reputation, Bake n Cake should focus on giving great customer

service and consistent product quality. If a customer has a bad experience, the
 team should respond quickly, apologize, and try to fix the issue. Encouraging

happy customers to leave positive reviews online can also help balance out

any negative ones. This way, the bakery can build trust and keep a good image

in the community.

5. Regulatory and Compliance Risk

Health and Safety Violations

For any firm, respect for the rules is crucial. We have to operate following regulations

on food safety, proper employee compensation, and maintaining a safe workplace. We

risk being shut down, penalized, or having our reputation damaged if we don't. We

must regularly verify that we are adhering to all regulations, provide our staff with

enough training, and establish clear guidelines for everyone in order to avoid

issues. Additionally, we must keep abreast of any modifications to the regulations

and have a strategy in place in case of an accident or data breach. We can maintain

our safety and legality by taking these steps.

6. External Risk

Natural Disasters

To deal with natural disasters, we will prepare a safety plan to protect our staff

and customers, train our team on emergency procedures, and get insurance to

cover damage to our equipment or store. We will also keep some backup

supplies, like ingredients and packaging, in case deliveries are delayed. To

reduce the risk of supply problems, we will work with more than one supplier

and choose ones located in different areas. If a disaster does happen, we will

use social media and other channels to keep customers informed about

changes in hours or services.

Inflation
To deal with inflation, we will regularly review our costs and adjust prices

carefully to stay fair to customers while keeping the business profitable. We’ll

look for ways to reduce waste, buy ingredients in bulk, and improve efficiency

in our daily operations. We’ll also update our menu when needed, focusing on

high-margin items and seasonal specials to keep costs down while still

offering great value.