Feasibility Report

Powerful Essays
Feasibility Report

Submitted by:

Course:
Instructor:
Institution:
Department:

Date:

Feasibility Report
Revenue Sources
The company will sell custom-made cakes, cupcakes and coffee. The revenues from the business will come from the sale of decorated cakes and cupcakes, as well as coffee for customers who visit the shop. The business will raise revenue from service: cake decoration and creation of the centerpieces of many of the most remarkable occasions of the lives of clients. Service revenue will come from different customized cake designs, decoration and bake creations. The business will use many different designs as discussed by Graham (2007) and Wilson (2011). The major revenue source during the initial year will be service revenue, including drink, cakes, and cupcakes sales. The business includes walk-in service. It will have two ordering delivery channels; phone orders and via online ordering. In addition, parking bays will be provided at a fee. The projected revenue from parking bays will be $75000 per year. The revenue from the sale of cupcakes, cakes and drinks is projected to be $100000 yearly. The revenue from custom-making service will be $50000 annually. Therefore, the total projected revenue will be $225000.
Cost Drivers
The business will consider the costs in order to stay in business (Marron, 2014); (Kidder, 2012 ).
a) Upfront Costs
Since the business is new, there will be several starting costs before official opening. Upfront costs consist of the purchase of furniture and fittings (table, chairs, coffee machines, installation of EFTPOS (electronic funds transfer at point of sale) and computers, cutlery, and front decoration (Ilasco and Seto, 2012 ); (Spencer, 2010). Advertising expenses will consist of the advertising campaign in the initial year. The advertising drive will be geared towards increasing sales to cater for the other costs (Marquis, Demand Media, 2014). Materials for shop



References: Aaron Marquis, Demand Media , 2014. The Average Profit Margin for a Cake Bakery. [Online] Available at: http://smallbusiness.chron.com/average-profit-margin-cake-bakery-14214.html Department of Health, V. A., 2014. Starting a food business. [Online] Available at: http://www.health.vic.gov.au/foodsafety/bus/foodbus.htm Graham, J., 2007. The Crabapple Bakery Cupcake Cookbook. Print ed. London: Penguin Group (USA) Incorporated. J. Leach, Ronald Melicher, 2014 . Entrepreneurial Finance. 5 ed. Stamford: Cengage Learning. Kidder, D., 2012 . The Startup Playbook: Secrets of the Fastest-Growing Startups from Their Founding Entrepreneurs. Illustrated ed. San Francisco : Chronicle Books. Marron, D., 2014. Cupcake Economics. [Online] Available at: http://dmarron.com/2009/11/28/cupcake-economics/ Meg Mateo Ilasco, Catherine Seto, 2012 . Mom, Inc.: The Essential Guide to Running a Successful Business Close to Home. Illustrated ed. San Francisco: Chronicle Books. Melbourne, C. o., 2014. Rates and valuations. [Online] Available at: https://www.melbourne.vic.gov.au/buildingandplanning/ratesandvaluations/Pages/RatesandValuations.aspx Paul Hamer, Graham Currie, William Young , 2011. Parking Price Policies – A review of the Melbourne congestion levy. Australasian Transport Research Forum 2011 Proceedings , 1(1), pp. 1-16. Spencer, P., 2010 . Start a Cupcake Business Today. London: InformationTree Press. StartupBizHub, 2014. Starting a Cake Business. [Online] Available at: http://www.startupbizhub.com/starting-a-cake-business.htm Utilities, S., 2014. Compare Electricity Rates in Victoria. [Online] Available at: http://www.smartutilities.com.au/electricity-comparison-victoria/ Wilson, D., 2011 . Baker 's Field Guide to Cupcakes. Unabridged, reprint ed. New York City: Houghton Mifflin Harcourt.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Feasibility Report

    • 1713 Words
    • 7 Pages

    Feasibility report Web based Chinese tutoring Sigurður Samik Davidsen Hrafn Jóhannesson Liang Sun Index Introduction......................................................................................................................... 2 Problem ............................................................................................................................... 4 Objectives ................................................................................................…

    • 1713 Words
    • 7 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Feasibility Report

    • 899 Words
    • 4 Pages

    Builder Pros MEMORANDUM To: John Keesler, Owner From: Deborah Fletcher Date: Monday, February 4, 2013 Subject: Tow Behind Concrete Mixer SUMMARY This feasibility report is to determine whether Builder Pros will benefit by purchasing a new tow behind concrete mixer. Builder Pros is a subcontracted construction company. On average, Builder Pros pours six concrete slabs per month. By purchasing a tow behind concrete mixer, Builder Pros can reduce man hours by 16 hours per job…

    • 899 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Feasibility Report

    • 1975 Words
    • 8 Pages

    FEASIBILITY REPORT ON FRESH FOOD- MANGO PRESENTED TO: Sir Mashooq Pasha 6/14/2013 Benazir Bhutto Shaheed University Jawwad farooq & Anmol latif (BBA)-1 1. OVERVIEW OF MANGO SECTOR Mango is an important fruit of Sindh, grown in middle and upper districts of the province. Commonly grown varieties of mangoes in Sindh are Sindhri, Saroli, Dasehri, Almas, Langra, Chaunsa, Anwar Ratol, Sunera, Bengal Pali, Laal Badshah, Neelam and Desi. About 80-85% of the mango production of Sindh…

    • 1975 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    feasibility report

    • 15195 Words
    • 61 Pages

    BoS in Commerce (OU) B.Com (Computers) DEPARTMENT OF COMMERCE, OSMANIA UNIVERSITY, HYDERABAD. STRUCTURE OF B.COM (COMPUTERS) DEGREE COURSE (w.e.f. ACADEMIC YEAR 2009-’10) FIRST YEAR Code TITLE OF THE PAPER PPW 101 102 103 FINANCIAL ACCOUNTING BUSINESS ECONOMICS BUSINESS ORGANISATION & MANAGEMENT 104 FUNDAMENTALS OF INFORMATION TECHNOLOGY 105 FUNDAMENTALS OF “C” SECOND YEAR Code TITLE OF THE PAPER 201 202 203 204 205 ADVANCED ACCOUNTING BUSINESS STATISTICS…

    • 15195 Words
    • 61 Pages
    Powerful Essays
  • Good Essays

    Guide lines to make Feasibility report Feasibility Study This Feasibility Study Template will help you to conduct feasibility studies in your organization. It takes you through the process of completing a Feasibility Study by defining the business problem / opportunity, the alternative solutions available and the recommended solution for implementation. You can use this Feasibility Study sample to assess the feasibility of any type of solution, within any type of business environment.…

    • 1446 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Feasibility Report Template

    • 2608 Words
    • 11 Pages

    t template FEASIBILITY STUDY REPORT Title: Author: Reviewers: Version History: |VERSION |DATE |AUTHOR |REASON FOR CHANGE | | | | | | | | | |…

    • 2608 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Pre-Feasibility Study (Fast Food Restaurant) Small and Medium Enterprises Development Authority Ministry of Industries & Production Government of Pakistan www.smeda.org.pk HEAD OFFICE 4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road, Lahore Tel: (92 42) 111 111 456, Fax: (92 42) 36304926-7 helpdesk@smeda.org.pk REGIONAL OFFICE Punjab REGIONAL OFFICE Sindh REGIONAL OFFICE Khyber Pakhtunkhwa REGIONAL OFFICE Balochistan 3rd Floor, Building No. 3, Aiwan-e-Iqbal…

    • 4855 Words
    • 20 Pages
    Powerful Essays
  • Powerful Essays

    Feasibility Report on Internationalisation of an Australian Company Executive Summary The following feasibility report on JT Toy’s interest to manufacture overseas has thoroughly explored the positive and negative aspects of local production in comparison to moving its operations to China. Manufacturing methods, such as a wholly owned subsidiary; owning and controlling a factory in China, a strategic alliance and licensing agreements have been analysed in detail.…

    • 2080 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Market Feasibility Report

    • 2787 Words
    • 12 Pages

    What’s the Market Feasibility Process for Hotel Waterpark Resorts? A Guide for Owners & Developers By Bill Haralson & Jeff Coy Within the past five years, a new concept has developed --- the waterpark resort, a pairing of lodging facilities with an indoor waterpark. The concept was conceived in the Wisconsin Dells, when the Polynesian Resort added indoor water features in an attempt to improve that property’s occupancy rates. The project was an immediate success and other properties quickly…

    • 2787 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Project Feasibility Report

    • 1734 Words
    • 7 Pages

    PROJECT SCOPE STATEMENT: To complete the Never Stop Learning project, our team will supply a new website that will allow consumers to be directly connected to the business. Not only will the website meet the needs of our client, Ms. Charlet, but our group will also need to be efficient for each project task to be finished on time. We will use a content management system called Drupal to design the new website to perform regular maintenance and administrative tasks to push content to the website…

    • 1734 Words
    • 7 Pages
    Powerful Essays