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How To Identify A Good Business Idea: Independent Activity 1.3

The document discusses the capital requirements, target market, demand, experience, legality, and alignment with interests for a proposed small pastry business. Specifically: 1) The estimated initial capital is 910 PHP which will cover costs of donuts, cupcakes, cookies, and other expenses. 2) The target market enjoys simple baked goods for breakfast and snacks, creating opportunities for entrepreneurs. Demand is high as customers rely on nearby small bakeries during the pandemic. 3) The business will meet demand by increasing production quantities. Quality ingredients and customer satisfaction will build loyalty. 4) The group has junior high cooking experience and business course knowledge to run this business successfully. 5

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Jezelle Ann Ogacho
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250 views3 pages

How To Identify A Good Business Idea: Independent Activity 1.3

The document discusses the capital requirements, target market, demand, experience, legality, and alignment with interests for a proposed small pastry business. Specifically: 1) The estimated initial capital is 910 PHP which will cover costs of donuts, cupcakes, cookies, and other expenses. 2) The target market enjoys simple baked goods for breakfast and snacks, creating opportunities for entrepreneurs. Demand is high as customers rely on nearby small bakeries during the pandemic. 3) The business will meet demand by increasing production quantities. Quality ingredients and customer satisfaction will build loyalty. 4) The group has junior high cooking experience and business course knowledge to run this business successfully. 5

Uploaded by

Jezelle Ann Ogacho
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

INDEPENDENT ACTIVITY 1.

HOW TO IDENTIFY A GOOD BUSINESS IDEA

How much capital is Determining the capital needed in putting a business requires a realistic financial
needed to put up the
business? planning which may include the cost of expenses such as the cost of the goods,
utilities expense, labor salary and the cost of rent of the business shelter.

Considering the groups’ desired business to put up which is pastry, the group
specifically wants to sell the following product:

1. Donuts
2. Cookies
3. Cupcakes

The group's desired business requires a minimal capital since it is only a small
business. The estimated initial capitalization in putting up the group's business is
shown below including the summarized expenses.
__________________________________

Products Costing:
__________________________________

Expenses
Donuts ---------------------------- Php 250.00
Cupcakes ------------------------ Php 300.00
Cookies ------------------------- Php 250.00
Other miscellaneous
expenses----------------------- Php 110.00

__________________________________
Total expenses------------------- Php 910.00
Howeve big is the The target market has been observed to enjoy simple fares for their morning
demand for the meals and are most likely to have a penchant for breads. Like rice, these baked
product/service goods are a staple fare in the local dining table, and typically consumed for
breakfast and or as a snack. This fondness for baked treats opened opportunities
for entrepreneurs to build business, innovate, and explore the endless possibilities
in baking. They further pointed out that baked products are sure sellers because
everyone practically eats bread, and it is almost always the choice as a
convenient, on-the-go food especially this time of pandemic. Sweet breads, such
as muffins, quick breads, biscuits, and rolls, go perfectly with a hot cup of coffee,
also some customers prefer it with smoothies, juice and or soda.

How is the
demand met?
Most of the customers are relying on small bakery stores that are near the
neighborhood due to the threat of pandemic to everyone's health. It has been
observed that small bakery stores are experiencing an increase in sales and in
demand as well. Hence, The group will take this as an opportunity to explore the
possibilities in baking.

Since it has been observed that the demand for such products is high, the group
will increase the quantity of bread production to meet the demand of customers.
Moreover the company will ensure that the produced products satisfy the needs
and expectations of the customers by baking it with love and care. We will be
baking a quality-based ingredients product to gain the customers interest as well
as their loyalty.
Do you have Yes. We have experience in pastry baking. Our experience in the Cookery subject
background and in Junior High School helps us on how to produce our chosen product. Same goes
experience needed to to our current Business related subjects in assessing our business itself. We were
run this particular able to recognize the strengths and weaknesses of our chosen business, on how
business? to effectively market our products on our target market, in analyzing the demand of
the product, especially in projecting the selling price, the quantity of the product
and the expected return of investment.

Will the business be The business will only be legal and not against any existing or foreseeable
legal, not going regulations. We will consider the government business operation laws and
against any existing regulation to ensure that the business is running on a right track, prioritizing the
foreseeable welfare of customers and the environment in producing our products.
government
regulation?

Is the business in
Yes. Considering that the group is pursuing an Accounting course, majoring in
line
marketing, we could say that our business is in line with our interest and expertise
with your interest
accordingly. In fact, this experience could develop our business management
and
skills that could be used for our future career.
expertis
e?

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