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In the process of producing goods and services, living and past labor is expended. At the same time, each company strives to obtain the greatest possible profit from its activities. To do this, each company has two ways: try to sell its goods at the highest possible price or try to reduce its production costs, i.e. production costs.

Depending on the time spent on changing the amount of resources used in production, short-term and long-term periods in the company’s activities are distinguished.

Short-term is a time interval during which it is impossible to change the dimensions manufacturing enterprise, owned by the company, i.e. the amount of fixed costs incurred by this firm. Over a short-term time interval, changes in production volumes can result solely from changes in the volume of variable costs. It can influence the progress and effectiveness of production only by changing the intensity of use of its capacities.

During this period, the company can quickly change its variable factors - the amount of labor, raw materials, auxiliary materials, fuel.

In the short term, the amount of some production factors remains unchanged, the number of others changes. Costs in this period are divided into fixed and variable.

This is due to the fact that the provision of fixed costs is determined by fixed costs.

Fixed costs. Fixed costs get their name due to their nature of immutability and independence from changes in production volume.

However, they are classified as ongoing costs, since their burden falls on the company every day if it continues to rent or own production facilities, necessary for her to continue production activities. In the case where these current costs take the form of periodic payments, they are classified as explicit monetary fixed costs. If they reflect the opportunity costs associated with owning certain production facilities acquired by the firm, they are implicit costs. On the graph, fixed costs are depicted by a horizontal line parallel to the x-axis (Fig. 1).

Rice. 1. Fixed costs

Fixed costs include: 1) labor costs for management personnel; 2) rent payments; 3) insurance premiums; 4) deductions for depreciation of buildings and equipment.

Variable costs

In addition to fixed costs, firms also incur variable costs (Fig. 2.). Variable costs can change quickly within an enterprise of a given size as output changes. Raw materials, energy, hourly payment labor - examples variable costs most companies. It depends on the specific situation which costs are fixed and which are variable.

Figure 2. Variable costs

Approximate data:

• Monthly income – 180,000 rubles.
• Net profit – 86,720 rubles.
• Initial costs – 255,000 rubles.
• Payback – from 3 months.

In this article we will compile detailed business plan mini-confectionery with calculations.

Description of service

The organization bakes cakes, pancakes and muffins to order. We are considering a situation where self employed independently prepares products for sale. He does not have any additional employees. There is only the desire of a good cook to become a real seller of sweets. We are considering renting the premises, but you can also use your own premises if available.

Market analysis

Realities today suggest that it is almost impossible for a simple confectionery shop to open and stay afloat. This is due to the very high competition of the industry.

Having examined the analytical data, we can conclude that the industry is not developing today. There was a glut of goods in the market. There has been no growth rate since 2000. Even small towns are oversaturated with confectionery products.

Competition in the industry is very high, and accordingly, the requirements for products are high. How can a private entrepreneur with a small production volume attract buyers? First of all, the exclusivity of the products offered. Why are people willing to buy such a product? Because large stores offer the same products to the customer. They don’t have variety, or rather, they do have variety, only in large supermarkets they sell the same thing as in a small retail store. In general, this is a very relative diversity.

People want something special that is made just for them. So, today cakes made from mastic, products with photos, drawings, small toys, and figurines are very popular. How does the whole process work? The person tells the seller about the required weight and the event itself. Attention is also paid to the specific features of the life of the person or people for whom this cake will be prepared. The same thing happens with baking small muffins and pancakes.

An important advantage is that, in fact, production directly depends on the number of clients. That is, you can purchase the required amount of products in advance.

Of course, studying consumer demand information, you can see that cakes and pastries account for only 8%. But is it really that bad?

Firstly, our entrepreneur does not cook in such large quantities to provide a large number of clients. The number of consumers will be much greater than the number of products produced. This will allow you to set a good price for cakes. self made.

Secondly, the candy and biscuit segment is experiencing the highest demand. At the same time, there is huge competition there. Large confectionery factories occupy most of the market. It is more than difficult to compete with them. And the profit from sales will be less than when making cakes.

So, who will become the main consumer of sweets from a private entrepreneur?

This may include people of average and above average income. As a rule, family people order cakes for birthdays, anniversaries, and name days. It is worth paying close attention to families with small children. Parents, as a rule, take a very responsible approach to preparing a holiday for their child. A handmade cake with your favorite cartoon characters will certainly delight your child.

Of course, it won't be possible without competition. There are three main competitors:

1. Large shops and supermarkets . But a private entrepreneur will win against their background due to exclusivity, individual approach, quality and novelty of the ideas used.
2. Coffee shops and other establishments Catering . They can be eliminated by separating the buyer niche. Not everyone is ready to go celebrate the occasion in a cafe; many do it at home. And the cake will cost a little less, but the taste will be better.
3. Other private confectionery entrepreneurs . There are more and more such people today. You can fight them. It is necessary to prepare custom-made cakes so that people come again and again. And clients can bring new people. In this business it is " word of mouth"is the main engine of advertising. Therefore, all that is required of the pastry chef is to do his job with love.

SWOT analysis

A person who knows how to cook delicious cakes is often afraid to open own enterprise. And he has every reason to do so. Before starting a business, you need to study the area in detail, the market situation, and, ultimately, assess your own capabilities and take into account possible difficulties.

Not all factors can be controlled. There are also those that you will have to come to terms with or try to avoid.

TO external factors relate:

1. Possibilities:

• Possibility of using various resources (large number of suppliers).
• Low activity of competitors (meaning that other manufacturers are developing own production, rather than waging intra-class struggle).
• Complete management of your own expenses and income.
• High demand for the product.
• The novelty of the idea, its “delicacy”.
• Possibility of developing new products, recipes, varieties.
• Growing income of the population.
• Consumer love for exclusive things.
• A large number of restrictions, the need for certification.
• Constant demand for manufactured products (within the industry).

1. Threats:

• It is quite difficult to enter the market (this is due to the preparation of the necessary documents).
• The appearance of others individual entrepreneurs with the same idea.
• The emergence of new requirements and standards for manufactured products.
• Tightening of work in this industry due to the emergence of new laws, SanPinov.
• High sensitivity of business to external conditions.

There are also factors that the entrepreneur himself can regulate. They are also called internal. These include:

1. Strengths:

• Entrepreneur qualifications that determine product quality.
• High level of motivation.
• High performance.
• Using the most effective ways advertising.
• Product exclusivity.
• Working with reliable product suppliers.
• Use of high-quality modern equipment.
• Experience in the industry (pastry chef).
• Working with a specific segment.
• Profit will depend on the entrepreneur himself.
• Costs in case of failure will be minimal.

1. Weak sides:

• The need for initial investment.
• There is no clear strategy.
• Inexperience as an entrepreneur.
• Product sales channels have not been developed.

First of all, an entrepreneur must resolve the following issues:

1. Develop an assortment . It is best to create a portfolio of your work, a price list with detailed composition, weight, menu, and capabilities. This will not only make your business more presentable, but will also give it respect and respectability from clients.
2. Focus on technology . It is very important to comply with all standards and not break the law. At this stage, it is necessary to study the existing legislation. You can use the services of a technologist.
3. Find product suppliers . This, firstly, will help reduce costs, and secondly, will ensure the quality of the raw materials used. It's worth spending a little time finding a great supplier with all the necessary certifications. You can visit local grocery stores and compare prices.
4. Start looking for clients early . This can be done at the stage of certification and search for premises.

Opportunity assessment

What can you say about the possibilities? The entrepreneur himself can work at any time of the day or night. Everything will depend on the number of orders. The operating mode can be called irregular.

A private entrepreneur does not have to worry about the seasonality of work. There are many more consumers than he could bake cakes.

Based on the experience of many “private confectioners,” they also work on weekends. Moreover, on such days the number of orders is noticeably higher.

You can find a job in any area of ​​the city. The main thing here is to comply with all sanitary standards. You also need to take a closer look at the cost. It shouldn't be too big. You can take an ordinary room and bring it into suitable look, in accordance with all rules and regulations.

It is important to remember that the possibilities of one person are not limitless. If the demand is too great, you can hire another pastry baker and create masterpieces together.

In the future, you can think about developing your own packaging.

Organizational and legal aspects

1. Since there will be only one entrepreneur, it is better to choose. In addition, if he has never had his own business, then he will be able to take advantage of tax holidays, but more on that later. The following OKVED codes must be specified:

• 15.81 – Production of bread and flour confectionery products for non-durable storage;
• 52.24.2 – Retail confectionery products.

1. We choose a taxation system (UTII is also possible, but tax holidays do not apply to it). Our organization produces goods, which means it can qualify for tax holidays. Where should I start? From studying the law on tax holidays. It is very important to see if it is accepted in your city. Remember that you can only take advantage of the 0% tax rate for 2 tax periods. We will make the calculations in this business plan based on the 0% rate.
2. use not necessary. You can limit yourself to BSO. This will save purchasing costs cash register and its maintenance.
3. We study all the requirements of the SES, obtain the appropriate permission ( not necessary, but the check will still happen someday, so it’s better to prepare in advance). Remember that the SEZ must indicate the range of products produced (in the appendix).
4. Certificates of product compliance with existing requirements are required.
5. The equipment must also have certificates (Russian!).
6. Development technological maps of the dishes being prepared must be agreed upon (applies specifically to the recipe).
7. An agreement must be concluded with the organization carrying out disinfection, disinfestation and deratization.
8. No work licenses no need.
9. It is imperative to develop a compliance monitoring program sanitary standards at the enterprise.

Marketing plan

Price policy:

When determining the cost, you need to understand that people are willing to pay good money for quality goods. The cost will be clearly higher than the market average. Would anyone believe that it is tasty, high quality and exclusive cake maybe it costs 300 rubles? For people, cost, on the contrary, will be a kind of indicator of quality.

When developing a promotion strategy, you need to understand that you do not need to use all types of advertising. This will not be effective and will significantly increase costs.

1. Creating your own website . It's not worth saving on this. You should trust a professional who will make a “delicious” website for good money. It’s worth constantly updating it – adding photos and reviews from your clients. Of course, it is also important to promote your website so that it has as many visitors as possible.
2. Opening a group on a popular network . Working with the community will be in many ways similar to working with a website - photos, reports, prices, compositions. You can attract new subscribers using online advertising.
3. contextual advertising . Using it, you can advertise your own website, where contact information is located, or a group.
4. "Word of mouth" . This method plays a huge role. It is impossible to manage it on your own. But to influence – very much so. You just need to love your job, do it with love! The more satisfied customers, the more new ones. Their number is growing exponentially, based on the professionalism of the confectioner.
5. Carrying out promotions, discounts, bonuses . This method will allow you to develop your own client base. Together with the previous method, these will be real engines of promotion. With time, contextual advertising may simply not be needed.

Calculation of projected income

We will assume that a pastry chef can prepare from 1 to 6 cakes per day. Everything here, of course, will depend on the level of skill. The average weight of the cake is at least 2 kilograms. Thus, the average return will be approximately as follows:

Production plan

The requirements for the premises are the same as for a mini-bakery:

• No basements.
• There must be a ventilation system.
• It is necessary to have cold and hot water, as well as sewerage.
• The ceilings should be whitewashed and the walls covered with tiles.
• There must be a toilet and a warehouse at the production site.

Repairs must be made to comply SES requirements and fire inspection.

Equipment you will need:

• bake;
• mixer;
• tables;
• fridge.

The inventory will also include decorative devices and cutlery.

Organizational plan

Financial plan

Don’t forget that we chose the simplified tax system and are entitled to tax holidays. That is, the net profit will be equal to 89,800 rubles.

As for the insurance premiums of the entrepreneur. For amounts below 300,000 rubles (depending on the selected type of simplified tax system, the income base is also assigned) payments will be:

• V Pension Fund– 19,356.48 rubles;
• in the Federal Compulsory Medical Insurance Fund – 3,796.85 rubles;
• No contributions are paid to the TFOMS in 2016.

Total, total amount of contributions: 23,153.33 rubles.

For income over 300,000 rubles, the following contributions are paid:

• there are no payments in the FFOMS;
• in the Pension Fund - 1% of the amount of income, minus these 300,000 rubles.

Thus, the annual income will be: 180,000*12= 2,160,000 rubles.

We do not take expenses into account in our calculations. In a particular case, everything will depend on the chosen taxation system.

So, insurance payments will be: 23,153.33 + (2,160,000 – 300,000)*0.01= 41,753.33 rubles. We remind you that this insurance payments not in a month, but for the whole year.

To calculate profitability, let’s take the average monthly value of payments: 3,480 rubles.

Profitability: 86,720/180,000 = 48.18%.

Payback: 255,000/86,720 = 2.94. Opening a confectionery shop will pay for itself in 3 months.

Risks

The prospects turned out to be rosy. But it is important to think about possible risks. The most significant risks include:

1. Cost growth . It will be associated with rising prices for raw materials and rent. You can protect yourself by concluding long-term contracts for the rental of premises and the supply of raw materials.
2. Increased competition. It's important to work with client base, replenish it, offer your regular customers discounts, promotions, bonuses (for example, after purchasing 4 cakes, pancakes are a gift!). Let's not forget about quality.
3. Changes in legislation . There is no way to protect yourself. But it is worth remembering that experienced lawyers can always help.
4. Technological risks (equipment breakdown). Everything is much simpler here. Buying new equipment will not be difficult if there is such a need.
5. Risk of delivery delays . We do not forget about the formation of trade stocks, we are looking for a reliable supplier, we indicate late delivery in the contract and the subsequent “sanctions” for the supplier.

Important: Remember that you can independently create a business plan specifically for your business. To do this, read the articles:

One last request: We are all human and can make mistakes, leave something out, etc. Do not judge strictly if this business plan or others in the section seem incomplete to you. If you have experience in this or that activity or you see a flaw and can add to the article, please let me know in the comments! This is the only way we can jointly make business plans more complete, detailed and up-to-date. Thank you for your attention!

Analysis of production and distribution costs of the Uyut cafe

Now let’s apply one of the methods for calculating and analyzing costs presented above for the Uyut food enterprise.

Cost analysis begins with a comparison of actual data with planned data. The deviation will be called the size of change and is calculated by the formula:

The ratio of the size of the reduction or increase in the level of costs to the base level, expressed as a percentage, is called the rate of change in the level of costs:

Amount of relative cost savings (overruns):

Table 2.1 - Assessment of the implementation of the production and distribution cost plan for the Uyut cafe

The absolute cost overrun for the restaurant amounted to 714 thousand rubles. (3059 - 2345). However, the turnover plan was exceeded by 33.4%, and the amount of costs increased by 30.5%, which led to a decrease in the level of costs. The size of the cost reduction was 1.2% of turnover (50.9 - 52.1). This indicates the efficiency of using current costs.

The rate of cost reduction compared to the plan was 2.3% (1.2: 52.1 x 100). The relative savings in production costs amounted to 72.1 thousand rubles. (6008.8 x (-1.2) : 100)

Information on the composition of costs is presented in Table 3

Table 2.2-Information on the composition of costs of the Uyut cafe, thousand rubles.

For almost all cost items, with the exception of repair costs, packaging costs and other expenses, there is an absolute cost overrun. However, it is positive that compared to the plan, transportation costs decreased by 0.2% of turnover, electricity costs for production needs - by 1.8, storage costs, interest on loans, packaging costs - by 0.2% to turnover.

There is a high rate of growth in labor costs.

In general, the Uyut cafe can successfully continue to operate, focusing on the usual profit.

Recommendations for reducing production and distribution costs of the Uyut cafe

It is quite obvious that every company should strive to reduce production costs and production costs. With stable prices and other equal conditions cost reduction leads to an increase in profit per unit of production.

The cost of production reflects the level of use of consumed production factors, which in turn is determined by technical and organizational (engineering and technology, organization of production, labor and management), social and natural factors (conditions), or, as they are commonly called collectively, technical and economic factors.

An analysis of the catering enterprise showed that the Uyut cafe is experiencing absolute cost overruns. Although there is an increase in trade turnover, perhaps costs should be reduced.

A company can take the following measures to reduce costs:

• · try to find a less expensive supplier transport services;
• · reduce staff;
• · increase sales prices to increase turnover and reduce costs.

Cost price- the initial cost of the costs incurred by the enterprise for the production of a unit of product.

Price- the monetary equivalent of all types of costs including some types of variable costs.

Price- the market equivalent of the generally accepted cost of the product offered.

Production costs- these are expenses, monetary expenditures that need to be made to create. For (the company) they act as payment for purchased goods.

Private and public costs

Costs can be viewed from different perspectives. If they are examined from the point of view of an individual firm (individual producer), we are talking about private costs. If costs are analyzed from the point of view of society as a whole, then, as a consequence, the need arises to take into account social costs.

Let us clarify the concept of external effects. In market conditions, a special purchase and sale relationship arises between the seller and the buyer. At the same time, relationships arise that are not mediated by the commodity form, but have a direct impact on people’s well-being (positive and negative external effects). An example of positive external effects is expenses for R&D or training of specialists; an example of a negative external effect is compensation for damage from environmental pollution.

Social and private costs coincide only if there are no external effects, or if their total effect is equal to zero.

Social costs = Private costs + Externalities

Fixed Variables and Total Costs

Fixed costs- this is a type of cost that an enterprise incurs within one. Determined by the enterprise independently. All these costs will be typical for all product production cycles.

Variable costs These are the types of costs that are transferred to ready product in full.

General costs- those costs incurred by the enterprise during one stage of production.

General = Constants + Variables

Opportunity Cost

Accounting and economic costs

Accounting costs- this is the cost of the resources used by the company in the actual prices of their acquisition.

Accounting costs = Explicit costs

Economic costs- this is the cost of other benefits (goods and services) that could be obtained with the most profitable possible alternative use of these resources.

Opportunity (economic) costs = Explicit costs + Implicit costs

These two types of costs (accounting and economic) may or may not coincide with each other.

If resources are purchased freely competitive market, then the actual equilibrium market price paid for their acquisition is the price of the best alternative (if this were not so, the resource would go to another buyer).

If resource prices are not equal to equilibrium due to market imperfections or government intervention, then actual prices may not reflect the cost of the best rejected alternative and may be higher or lower than opportunity costs.

Explicit and implicit costs

From the division of costs into alternative and accounting costs follows the classification of costs into explicit and implicit.

Explicit costs are determined by the amount of expenses for paying for external resources, i.e. resources not owned by the firm. For example, raw materials, materials, fuel, work force etc. Implicit costs are determined by the cost of internal resources, i.e. resources owned by the firm.

An example of an implicit cost for an entrepreneur would be the salary that he could receive as an employee. For the owner of capital property (machinery, equipment, buildings, etc.), previously incurred expenses for its acquisition cannot be attributed to the explicit costs of the present period. However, the owner incurs implicit costs, since he could sell this property and put the proceeds in the bank at interest, or rent it out to a third party and receive income.

Implicit costs, which are part of economic costs, should always be taken into account when making current decisions.

Explicit costs is an opportunity cost that takes the form cash payments suppliers of production factors and intermediate goods.

Explicit costs include:

• workers' wages
• cash costs for the purchase and rental of machines, equipment, buildings, structures
• payment of transportation costs
• communal payments
• payment to suppliers of material resources
• payment for services of banks, insurance companies

Implicit costs- these are the opportunity costs of using resources owned by the company itself, i.e. unpaid expenses.

Implicit costs can be represented as:

• cash payments that a company could receive if it uses its assets more profitably
• for the owner of capital, implicit costs are the profit that he could have received by investing his capital not in this, but in some other business (enterprise)

Returnable and sunk costs

Sunk costs are considered in a broad and narrow sense.

IN in a broad sense words, sunk costs include those expenses that the company cannot return even if it ceases its activities (for example, the costs of registering a company and obtaining a license, preparing an advertising sign or company name on the wall of a building, making seals, etc.). Sunk costs are like a company's payment for entering or leaving the market.

In the narrow sense of the word sunk costs are the costs of those types of resources that have no alternative use. For example, the costs of specialized equipment manufactured to order from the company. Since the equipment has no alternative use, its opportunity cost is zero.

Sunk costs are not included in opportunity costs and do not influence the firm's current decisions.

Fixed costs

In the short run, some of the resources remain unchanged, and some change to increase or decrease total output.

In accordance with this, short-term economic costs are divided into fixed and variable costs. IN long term this division makes no sense, since all costs can change (that is, they are variable).

Fixed costs- These are costs that do not depend in the short term on how much the firm produces. They represent the costs of its constant factors of production.

Fixed costs include:

• payment of interest on bank loans;
• depreciation deductions;
• payment of interest on bonds;
• salary of management personnel;
• rent;
• insurance payments;

Variable costs

Variable costs- These are costs that depend on the volume of production of the company. They represent the costs of the firm's variable factors of production.

Variable costs include:

• fare
• electricity costs
• raw materials costs

From the graph we see that the wavy line depicting variable costs rises with increasing production volume.

This means that as production increases, variable costs increase:

General (gross) costs

General (gross) costs- these are all the costs for this moment time required for a particular product.

Total costs (total cost) represent the firm's total expenses for paying for all factors of production.

Total costs depend on the volume of output and are determined by:

• quantity;
• market price of the resources used.

The relationship between the volume of output and the volume of total costs can be represented as a cost function:

which is the inverse function of the production function.

Classification of total costs

Total costs are divided into:

total fixed costs(!!TFC??, total fixed cost) - the company’s total costs for all fixed factors of production.

total variable costs(, total variabl cost) - the company’s total expenses on variable factors of production.

Thus,

At zero output (when the firm is just starting production or has already ceased operations), TVC = 0, and, therefore, total costs coincide with total fixed costs.

Graphically, the relationship between total, fixed and variable costs can be depicted, similar to how it is shown in the figure.

Graphical representation of costs

The U-shape of the short-term ATC, AVC and MC curves is an economic pattern and reflects law of diminishing returns, according to which the additional use of a variable resource with a constant amount of a constant resource leads, starting from a certain point in time, to a reduction in marginal returns, or marginal product.

As has already been proven above, marginal product and marginal costs are inversely related, and, therefore, this law of decreasing marginal product can be interpreted as a law of increasing marginal cost. In other words, this means that starting at some point in time, additional use of a variable resource leads to an increase in marginal and average variable costs, as shown in Fig. 2.3.

Rice. 2.3. Average and marginal costs of production

The marginal cost curve MC always intersects the lines of average (ATC) and average variable costs (AVC) at their minimum points, just as average product curve AP always intersects the marginal product curve MP at its maximum point. Let's prove it.

Average total costs ATC=TC/Q.

Marginal cost MS=dTC/dQ.

Let us take the derivative of average total costs with respect to Q and obtain

Thus:

• if MC > ATC, then (ATS)" > 0, and the average total cost curve of ATC increases;
• if MS< AТС, то (АТС)" <0 , и кривая АТС убывает;
• if MC = ATC, then (ATS)"=0, i.e. the function is at the extremum point, in this case at the minimum point.

In a similar way, you can prove the relationship between average variable costs (AVC) and marginal costs (MC) on the graph.

Costs and price: four models of firm development

Analysis of the profitability of individual enterprises in the short term allows us to distinguish four models of development of an individual company, depending on the ratio of the market price and its average costs:

1. If the firm’s average total costs are equal to the market price, i.e.

ATS=P,

then the firm earns “normal” profits, or zero economic profit.

Graphically this situation is depicted in Fig. 2.4.

Rice. 2.4. Normal profit

2. If favorable market conditions and high demand increase the market price so that

ATC< P

then the company receives positive economic profit, as shown in Figure 2.5.

Rice. 2.5. Positive economic profit

3. If the market price corresponds to the minimum average variable cost of the firm,

then the enterprise is located at the limit of expediency continuation of production. Graphically, a similar situation is shown in Figure 2.6.

Rice. 2.6. A firm at its limit

4. And finally, if market conditions are such that the price does not cover even the minimum level of average variable costs,

AVC>P,

It is advisable for the company to close its production, since in this case the losses will be less than if the production activity continues (more on this in the topic “Perfect competition”).