In start I prefer newspaper advertisement in the form of banner ads. Average cost of advertisement is estimated to be CAD 16500/year and 82500 per 5 years. However this cost is of capital nature and it would be deferred over a period of next 5 years.
Thus major startup cost of the business would be CAD 479353 (206248+106500+84105+82500). Remaining 20647 would be used for meeting variable expenses. Moreover, a significant portion of expected profitability would be reinvested in business in next 5 years in order to attain a sustainable business. Given the level of profitability, promotional expenditure would also be increased and firm would use a more sophisticated marketing mix.
How to operate
Our major product line would consist of bread, bagels, cakes, doughnuts, pastries, biscuits, buns, croissants, croutons, desserts, pies, pretzels, pizzas etc. However, a special segment for trifels would be established where highly delicious and world class trifels would be available. With the passage of time, this segment would be improved significantly by adding a range of trifel specialties. For this purpose highly qualified bakers and chefs from all over the world would be added to the work force.
A special data base for customer product preferences would be established. In order to reduce cost this would be done manually at the start of business. However, with business expansion specially designed CRM software would take place of the manual work.
And lastly in order to motivate employees a general increment of 20% in salaries on the basis of their work achievements would be given to them across the board. Special event bonuses and international training opportunities will also be provided to employees. With the passage of time and expansion in business, a special department for human resource management is also proposed to be established. However its development is subject to a specific number of sales centers across the country.
In the last I would like to say that given the growing desire for Canadian bakery industry and its increasing contribution to GDP of Canada, there are high prospects for potential growth of establishing a new business in this industry. There are also high opportunities of business expansion and startup cost is not very high as compared to other business ventures. Thus I highly recommend all my prospective investors to investigate all the key success factors associated with this business and join hands with me keeping in mind my skill, education and expertise.