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CUPCAKE BAKESOLUTELY BUSINESS PLAN

Mega Wangsa

Bakrie University, Indonesia

megawangs[email protected]m

KEYWORDS

Cupcakes, Natural

Colors, Business

Plan, Jakarta,

Special Days

ARTICLE INFO

Accepted:

April, 26

2022

Revised:

May, 7

2022

Approved:

May, 12

2022

ABSTRACT

Bakesolutely Cupcake business plan is the author's new plan in the

food sector that offers various types of Cupcakes that are processed

using natural colors and flavors. In general, colors are divided into two

types, natural colors, and synthetic colors. Several factors support the

use of synthetic colors, some are using it to reduce production costs.

Like a cupcake in general, Bakesolutely Cupcakes can be part of

various kinds of celebrations. This business plan was chosen to see the

many opportunities that can be taken where every time around us,

there is always a special day, support for a healthy lifestyle, and

supported by the hobby of the writer. This research uses a qualitative

method with an ethnographic approach and a case study. Netnography

is a research method that is carried out online to collect digital artifacts

in the form of available records regarding a matter. Based on the

results from various perspectives that have been designed,

Bakesolutely's cupcake business plan is feasible to run.

INTRODUCTION

Every day we are surrounded by people who celebrate special moments (Biermann

& Rau, 2020). Such as birthday celebrations, calendar celebrations of major holidays to

commemorate something, graduations, job promotions, new business openings, weddings,

births, and many more (Lee & Goldblatt, 2020). In this case, it is not far from the existence

of the food that is presented, as part of the celebration symbol, one of which is sweet cakes

that can be served in the form of Cupcakes.

In the process of making cakes/cupcakes, generally, there are food additives to

support the visuals of the cupcakes so that they attract the attention of consumers, especially

in terms of color (Kumar et al., 2021).

According to Purba (2009), food additives are compounds that are intentionally

added to food and beverages, not the main ingredient. One of the food additives can be in

the form of dyes (Thakur, Sharma, & Verma, 2020).

According to the Regulation of the Minister of Health of the Republic of Indonesia

in 20212, it is stated that dyes as one of the food additives can be in the form of natural and

synthetic dyes.

Unfortunately, there are still a lot of beautiful cakes with bright colors and

increasing taste that is processed using food coloring instead of natural ingredients, so it is

possible to have a risk in the future if consumed in excess, continuously, then accumulates

in the body which can damage the function of body organs such as the liver. and the kidneys

must work hard to process these substances. If the liver and kidneys do not manage to process

them to be excreted, these substances can be the origin of cancer (Boussios, Pentheroudakis,

Katsanos, & Pavlidis, 2012).

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e-ISSN: 2797-6068 and p-ISSN: 2777-0915

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According to dietitian Julia Zumpano of the Cleveland Clinic, foods with artificial

coloring have risks to health such as hives, asthma, tumor growth, and behavioral changes

such as irritability, and depression.

The author chose to build a Cupcake business based on his hobbies and interests in

the world of cakes (Nguyen, 2020). Starting from curiosity and trying to make Cupcakes to

be eaten at home, brought as snacks to where the author works until someone wants to order

(Rousseau, 2013). The author also enjoys the process of decorating the cupcake, it can be

decorated in such a way that it has meaning and the theme behind the cupcakes that are

served (Wu, Samper, Morales, & Fitzsimons, 2017). In addition, the author also enjoys and

learns about a healthier lifestyle.

This research aims to provide the right and organized business process, find out the

right strategy/steps to face the competition, and help customers find Cupcakes with natural

dyes when they want to buy either for their consumption or as gifts to give to relatives and

make it easier for customers to get Cupcakes. with natural dyes with the desired theme.

RESEARCH METHOD

This research uses a qualitative method with a ethnographic approach and a case study

(Reid & Duffy, 2018). Netnography is a research method that is carried out online to collect

digital artifacts in the form of available records regarding a matter (Addeo, Paoli, Esposito,

& Bolcato, 2019). A case study is an approach that looks at the case from the phenomenon

that occurs, how the case process occurs, what influences the case, and why the case becomes

interesting to be material for further study (Khadaffi et al., 2017).

RESULTS AND DISCUSSION

A. Data Analysis

1. Market Analysis

The data used is divided into 2 types, namely primary data and secondary data.

Primary data is obtained from the author's direct observation of the competitors' environment

and interviews with the target market. Both to get a picture of the real conditions (Buhalis &

Sinarta, 2019). Secondary data is obtained from literature studies of books, journals, and

statistical data from BPS, newspapers, magazines, and the internet field (Harahap, 2020).

Secondary data is used as a support in processing primary data. To find out the strengths,

and weaknesses, take opportunities, and minimize the weaknesses that exist in Bakesolutely,

the author uses a SWOT analysis.

a. Strength

- The product itself is processed from basic ingredients so it has a fairly good price

advantage.

- Provides many variants.

- Provides an attractive Cupcake appearance.

- Cupcake flavors that have been accepted by family and friends make the flavors

offered will also suit new consumers.

- There is a special offer for the purchase of a certain amount.

- Can serve orders according to the theme.

- Can serve delivery orders with minimum and reasonable costs.

- The owner can be and understand all the work of the employees. If at any time

there is a problem, the owner can quickly solve the problem.

- Parking is available for consumers who want to see or pick up cakes in person.

- The location of the raw material provider is not far.

- Having a product with its characteristics. Generally, certain hands produce certain

works, which are commonly referred to as characteristics.

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- Having its driver to answer consumer desires, reason only shipping costs.

b. Weaknesses

- Bulk orders are made several days in advance.

- Have no place to eat on the spot.

- Do not have complete documents to build a business.

c. Opportunities

- We are surrounded by consumers who have precious moments to celebrate.

- Not many Cupcake shops use and mention the use of natural ingredients.

- Having a physical store so that can increase awathe reness of passers-by.

- The existence of the organizer is a supporter to expand the connection.

- Win price competition from similar competitors.

- New stores have a chance to get 100% new customers who try first.

- The availability of storage space in the vehicle can overcome the problem of cake

cream which softens during hot weather.

d. Threat (Threat)

- Challenges in terms of creativity.

- Similar competitors.

- Not every day people consume cupcakes.

Filling out the questionnaire with the target market is done to find out what

consumers want. The total sample of respondents is 47 people with criteria according to the

target market.

1. The majority of respondents had bought cupcakes.

Figure 1 Diagram of the Number of Questionnaire Respondents

2. Respondents know the existence of the store from seeing the store directly, social

media Instagram and friend recommendations.

3. Respondents buy Cupcakes for consumption and birthday events. There are still few

who answered for certain celebrations.

4. The majority of respondents 80% 9 out of 47 people chose to buy boxes of 6 or 12

instead of buying units because the price was getting cheaper.

5. 46 respondents out of 47 agreed with the idea of making Cupcakes as souvenirs in a

celebration.

6. All respondents chose to agree with the promotion in the form of discounts, 30% of all

respondents also agreed with the alternative promotion.

2. AnalysisOperational

Each employee will report directly to the owner

Owner

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Baker

processing

materials

Bake part of

the roast

Baker

decoration

and

packaging

Cashier and

order taker

Driver

Figure 2 Operational Structure

3. Legal Analysis and Management Team

Starting from individual and home-based businesses. So it takes time to take care of

some business legalities.

4. Business Model Canvas

The framework that discusses the business model is presented in a visual form in the

form of a canvas.

Figure 3 Business Model Canvas

a. Key Partners

As a business process driver, Bakesolutely cooperates with appropriate suppliers and

partners.

b. Key Activities

The main activity offered is selling cupcake menus that use natural dyes. Can be

purchased directly at the store / via online / custom order.

c. Key Resources

The main resources are the field of ingredients, baking ,and decoration, followed by

other supporting resources.

d. Value Preposition

In accordance with the business plan, Bakesolutely provides products that can make

people happy.

e. Customer Relationship

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To create good relationships with customers, Bakesolutely provides good and friendly

service.

f. Channels

Media used to convey information / communicate via online and offline.

g. Customer Segments

Bakesolutely's defined customers are specific enough to make it easier to capture the

target market.

h. Cost Structure

The costs in the business plan are the costs needed to keep the business running.

i. Revenue Streams

Revenue is obtained when a cupcake sales transaction occurs.

5. Risk Analysis

One of the major risks is the competition in the industry itself. The author uses the

analysis of the Five-Force model to help companies identify what steps need to be taken in

maintaining the company.

a. Bargaining power of suppliers

- For the raw material for making cupcakes. Bakesolutely buys directly from the main

distributor, so in terms of raw material prices, you will get a relatively low price.

- Because the ingredients will be reprocessed later, there is no need to worry about the

similarity of raw materials to other cake shops.

b. Bargaining power of customers

Consumers have an important role in the survival of a company. The existence of

bargaining from buyers is caused by:

- There are other competitors who offer similar products

- There is competition that offers products at very low prices

Bakesolutely is able to minimize these offers by:

- Providing products with a distinctive taste that other cake shops cannot provide.

- Using dyes from natural ingredients so it is safer for consumption.

- The price offered is in accordance with the quality of the basic ingredients for making

cupcakes, so in terms of taste it will also support.

c. Threat from new entrants (Potential entry of new competitors)

New entrants can come anytime and anywhere and can easily make observations again

to see the advantages of the ongoing business. Therefore Bakesolutely must have the

right strategy such as:

- Improve services by providing delivery services.

- Doing training, especially Baker in the decorative section so that they are more proficient

in decorating.

- Keep publishing different key advantages.

- Always looking for new themes.

- The taste that is right for consumers can bind consumers to buy the cakes that

Bakesolutely offers again.

- Running promotions to attract consumers.

d. Threat of substitute goods (Potential development of substitude products)

The arrival of substitute goods and materials is unavoidable because many people are

competing to create new business products. Changes in materials can cause changes in

quality and taste.

Therefore, Bakesolutely can anticipate by having many sources to get the goods and

materials used.

e. The level of competition within an industry (Rivalry among competing firms)

Competition in similar industries is also a barrier when developing new businesses.

However, to overcome this, Bakesolutely can make appropriate strategies such as:

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- Promoting from friends to friends, family and playing in the digital world.

- Cooperate with a special organization that takes care of a celebration.

- Provide good results as desired by consumers.

- Providing delivery services to make it easier for consumers to get the Cupcakes

they ordered. Judging from the results of filling out the questionnaire, delivery

service is one of the factors that can hinder sales.

6. Analysis of financing projections

Cupcake Bakesolutely's business financing is obtained from personal and

family capital, it does not rule out the possibility of investment from outside parties.

B. Business Plan

1. Product ideas offered

Product

a. Regular Cupcakes:

Table 1. Regular Cupcakes

Flavor

Natural

Dyes

Stuffing

Buttercream

Natural

Dyes

Toppings

Vanilla

Powder

n/a

Vanilla

Milk

Powder

Grated

cheese

Vanilla

Powder

n/a

Vanilla

Chocolate

Powder

Chocolate

Powder

n/a

Vanilla

Powder

Grated

cheese

Chocolate

Powder

n/a

Vanilla

Chocolate

Powder

Chocolate

Pandan

Powder

n/a

Vanilla

Powder

Peanut

Mocha

Coffee

powder

n/a

Vanilla

Powder

Peanut

b. Premium Cupcakes

Table 2 Premium Cupcakes

Flavor

Natural

Dyes

Stuffing

Buttercream

Natural

Dyes

Toppings

green tea

Green Tea

Powder

Green Tea

Cream

Vanilla

Green Tea

Powder

Grated

cheese

Red

Velvet

Beetroot

Powder

Cream

cheese

Vanilla

Powder

Sprinkle

Rum

Chocolate

Powder

Chocolate

Cream

Vanilla

Chocolate

Powder

Chocolate

Baileys

Bamboo

Charcoal

Coffee

Cream

Vanilla

Chocolate

Powder

Peanut

Vanilla

Strawberry

Powder

Strawberr

y Jam

Vanilla

Strawberr

y Powder

Strawberr

Vanilla

Powder

Peanut

butter

Vanilla

Carrot

Powder

Peanut

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Price

a. Regular Cupcakes:

- Unit price IDR 18.000

- Box of 6 @Rp 16,500 = Rp 99,000

- Box of 12 @Rp 15,000 = Rp 180,000

b. Premium Cupcakes:

- Unit Price IDR @23,000

- Box of 6 @21,500 = Rp 129.000

- Box of 12 @ 20,000 = Rp 240,000

c. Pre-order custom cupcakes:

Additional fee of IDR 5,000 per cupcake

Additional cost of IDR 5,000 if packaged individually into special packaging

2. Marketing strategy

Based on data regarding Bakesolutely's target market, it can be calculated how many

target markets can be achieved based on the population of DKI Jakata province by age group

and gender in 2019.

Data from the World Bank (World Bank) obtained the latest research on groups of

Indonesian people, especially in terms of their economic level.

a. Upscale 1.2% (Target Market Bakesolutely)

b. Middle Class 20.5%. (Target Market Bakesolutely)

c. Towards Middle Class 44%.

d. Poor Class 10.7%

e. Vulnerable 23.6%.

If we assume that by using the 2019 BPS numbers in the data table and combining

it with World Bank data for the upper class SES A and middle class SES B according

to the Bakesolutely target market, the total target market processing based on age and

percentage is 405,083 people.

Table 3 Calculation of the estimated total target market

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Promotion

Marketing & Sales

Several ways that can be run to market Bakesolutely as a new business are divided into

2 ways, namely online and offline:

Online

1. Through the website, with the aim that new customers who have just found out about

Bakesolutely's existence can find out what products are offered. In accordance with the

target market which is quite active in using the internet as a source to find information.

The strength of the keywords on the website can lead the Bakesolutely website to be seen

according to the keywords that customers are looking for. For example, writing the

following sentence in the search column for "Cupcake Jakarta", "Birthday gift ideas",

"Custom Cake Jakarta", and others.

2. Through social media Facebook and Instagram. Have an interesting account gallery to

follow. Run paid ads to help Bakesolutely spread ads. Collaborating with influencers who

can represent Bakesolutely as one of the recommendations for where to buy Cupcake.

3. Media placement on digital platforms that match the target market.

4. Collaborating with websites that offer attractive promos where many people are looking

for discounted prices.

5. Present in the online motorcycle taxi application to make it easier for customers to buy

Cupcakes.

Offline

1. Collaborate with the event planner community such as birthday event planners, social

gatherings, new product launches, institutional event celebrations, and others. This can be

a bridge as a recommendation to get new customers.

2. Media placement in shops related to parties, such as party supply stores, party clothes

shops, and others.

3. Providing support for certain events with reciprocity Bakesolutely can put a logo around

the event environment to increase Awareness.

4. Create an attractive purchase accumulation reward program.

5. Participate in events such as bazzar / booth.

Process

Business operation strategy

People

Bakesolutely, organizational structure

1. Owner concurrently finance & purchasing

- Owner

As the owner who is directly involved with the company's operations, participates in

daily activities, plays a role in determining strategy and planning. Financial control

and purchases of goods and materials needed.

2. Baker material processing section

- Play a role in preparing the dough until it is ready to bake.

- Ensure the dosage of ingredients is complete and processed according to the steps.

- Update the condition of the stock of materials to the owner, including checking the

expiration date.

- Can help estimate the amount of material needed on an order with a certain request

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3. Bake part of the roast

- Play a role in the fire protection process.

- Make sure the grill is in good condition.

- Update to the owner if the roasting process has problems.

- Responsible for Cupcake maturity level.

- Ensure the roasting process at the specified time.

4. Decorative part baker

- Play a role in decorating the Cupcake

- Continuing the Cupcake filling process after the Cupcake has cooled.

- Processing buttercream and fondant until ready to be applied.

- Help estimate the number of decorations required on an order with a particular request.

5. The packaging department is also looking after the shop

- Pack the cupcakes into packaging when they are finished decorating.

- Packaging Cupcakes according to the orders that consumers want to buy.

- Ensure sufficient packaging stock for a certain period.

- Help estimate the number of packaging required on an order with a specific request.

6. The cashier and the recipient of the order

- Receive transactions from consumers.

- Record financial transactions along with daily financial reports.

- Recording and receiving orders via online and offline

7. Courier

- Helping the Cupcake delivery process until it reaches the consumer.

- Responsible for the vehicle used.

Capacity planning

The number of employees is 6 people outside the owner consisting of:

- 1 Owner concurrently finance & purchasing

- 1 Baker material processing section

- 1 Baker part roast

- 2 Baker decorative part and also packaging

- 1 Cashier and order taker

- 2 Couriers

Working days = 7 days

Working hours = 8 hours

Amount that can be served

Cupcakes that can be produced per 2 hours = 72 Cupcakes

Shop opening hours Monday to Sunday = 10.00 – 17.00

Recruitment Process

Publication of the employee search process at this time can be said to be quite efficient with

several media that we can use.

- Publication via friends / family / people we know.

- Publication viaa website that specifically provides information job vacancy.

- Publication via social media ownedBakesolutely.

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Emplyee training and development

The time after the employee search process is complete is to provide training or an

overview of activities at the work location and their relationship with other employees. To

ensure that employees are ready to serve consumers, a role play will be carried out.

Financial Plan

a. Pay Structure

Wages and benefits are factors that act as employee motivation to work optimally.

a. Basic salary

In determining the basic salary wages can be determined from a salary survey in accordance

with job benchmarks and job evaluations(Sudiardhita, Mukhtar, Hartono, Sariwulan, &

Nikensari, 2018). The greater the responsibility to eat will get a higher salary.

b. Holiday allowance

Given once per year equal to one time base salary.

b. Place & Physical Evidence

Locations with an active community environment can support the sales process. The

road can be traversed by motorized vehicles both from motorbikes to cars. A clean environment

also supports it so it looks more beautiful and attractive.

4. Strategies for dealing with risks

In dealing with risks, Bakesolutely uses a strategy based on the Five-Force model

analysis. Where risks can be minimized so that they do not interfere with the running of the

business.

5. Capital Requirements and Financial Projections

Initial Investment

To start this cupcake business there are some basic equipment needed. Initial investment

as follows

Table 4 Initial Investment

Start-up Requirements

Start-up Expenses

Equipment

7,120,000

Total Expenses

7,120,000

Start-up Assets

Vehicle

10,000,000

Building & Decoration

35,000,000

Total Asset

45,000,000

Total Requirements

52.120,000

The initial investment required is IDR 52,120,000 in the form of equipment, vehicles,

buildings and records, which are described as follows:

Table 5 Machinery and Equipment Investment

Machinery and Equipment

Information

Unit

Price

Total

Mixer

2,000,000

4,000,000

Oven

850,000

1,700,000

Scales

60,000

180,000

Big bowl

25,000

150,000

Medium bowl

15,000

90,000

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Small bowl

7,500

180,000

Baking tray

100,000

600,000

Big Spatulas

20,000

40,000

Small Spatulas

15,000

180,000

7,120,000

Table 6 Vehicle Asset Investment

Vehicle Assets

Information

Unit

Price

Total

Motorcycle

5,000,000

10,000,000

Table 7 Building and Decoration Assets

Building and Decoration Assets

Information

Unit

Price

Total

Renovation

35,000,000

Sources of funding

Table 8 Funding Sources

Start-up Funding

Start-up Expense to Fund

7,120,000

Start-up Asset to Fund

45,000,000

Total Funding Required

52.120,000

assets

Vehicle

10,000,000

Building & Decoration

35,000,000

Total Asset

45,000,000

Liabilities & Equity

Liabilities

Total Liabilities

equity

Planned Investment

Owner / Investor

52.120,000

Additional Investment Requirements

52.120,000

Loss at Start-up (Expenses)

7,120,000

Total Equity

45,000,000

Total Liqbilities & Equity

45,000,000

Table 9 Material Needs per Day

Supplies per day

Information

Unit

Price

Total

Regular Cupcakes

144

8,583

1,236,000

Premium Cupcakes

144

11,583

1,668,000

Cupcakes

288

100

28,800

Standard unit box (20%)

2,500

144,000

Box of 6 (40%)

5,000

96,000

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Box of 12 (40%)

7,500

72,000

Small paper bags

1,500

86,400

Medium paper bag

2,500

48,000

Big paper bag

5,000

48,000

3,427,200

Table 10 Production Capital 1 pan of 12 Standard Cupcakes

Production capital 1 tray contains 12 standard cupcakes

Information

Unit

Price

Total

Butter

200

10,000

Egg

1,000

2,000

Flour

500

5,000

Sugar

100

2,000

Flavor / Color

2,000

24,000

Cupcake Topping

2,500

30,000

Buttercream

2,500

30,000

103,000

Capital 1 Cupcake

8,583

Table 11 Production Capital 1 pan contains 12 Premium Cupcakes

Production capital 1 tray contains 12 Premium Cupcakes

Information

Unit

Price

Total

Butter

200

10,000

Egg

1,000

2,000

Flour

500

5,000

Sugar

100

2,000

Flavor / Color

2,000

24,000

Cupcake Filling (50%)

5,000

30,000

Cupcake Topping

3,000

36,000

Buttercream

2,500

30,000

139,000

Capital 1 Cupcake

11,583

Table 12 Cost of Electricity, Water, Gas and Gasoline

Utilities 30 days

Electricity

1,000,000

Water

300,000

Gas

200,000

Gasoline IDR 200,000 per motorbike

400,000

Total

1,900,000

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Table 13 30 Day Salary Calculation

30 days salary

Baker material processing section

3,000,000

Bake part of the roast

3,000,000

Decorative part baker

3,750,000

7,500,000

Packaging & shop keeping

3,000,000

Cashier

3,000,000

Courier

2,750,000

5,500,000

25,000,000

Sales in one day can be generated 288 Cupcakes with a total income of IDR 5,385,600

Table 14 Sales per Day

The total of cupcakes that Bakesolutely can serve is divided into several target markets

in terms of selling out cupcakes, as follows:

- 30% ring 1 around the offline store area, the surrounding community includes schools,

kindergartens, elementary schools, churches, other activities.

- 25% of the North Jakarta area which still has the affordability to come directly to buy,

can also place an online order/delivery service.

- 20% of other parts of Jakarta who place orders using delivery services.

- 25% relationship with the right partner in terms of event organizers.

Financial Projections

In this calculation, COGS costs are assumed to be a 10% increase due to inflation, and

a 5% increase in sales.

Table 15 Financial Projections

2021

2022

2023

Sales

1,965,744,000

2,064,031,200

2,167,232,760

COGS

1,250,928,000

1,376,020,800

1,513,622,880

Gross Margin

714,816,000

688,010,400

653,609,880

Expenses

Marketing Promotion 30%

214,444,800

206,403,120

196,082,964

Utilities

22,800,000

Salary

300,000,000

THR

25,000,000

Total Operating Expenses

562,244,800

554,203,120

543,882,964

EBITDA

152,571,200

133,807,280

109,726,916

Tax 15% (pph 21)

22,885,680

20,071,092

16,459,037

Net Income

129,685,520

113,736,188

93,267,879

EBITDA stands for Earning Before Interest, Taxes, Depreciation, and Amortization.

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BEP (Break Even Points)

A condition in which the company's sales are sufficient to cover business expenses

(Kisman & Krisandi, 2019). Usually compares the amount of revenue or the number of units

that must be sold to be able to cover the fixed costs and related variable costs in generating a

sale. The break-even point is the point at which a business neither suffers a loss nor makes a

profit.

The amount of fixed costs is obtained from the cost of utilities plus salary. Meanwhile,

the variable cost per unit is obtained from production capital.

Table 16 BEP in units

Types of products

Fixed cost

Selling

price

Variable

Cost Per

Unit

Contribution

Margin Per

Unit

BEP (Units)

Regular Cupcakes

13,450,000

18,000

8,583

9.417

1,428

Premium Cupcakes

13,450,000

23,000

11,583

11,417

1.178

Total

2,606

Bakesolutely has BEP in units totaling 2,606 units.

Business Feasibility Analysis

Business feasibility analysis is calculated using the Pay Back Period, NPV, and IRR

parameters. The cash flow projections used are as follows:

Table 17 Cash Flow

Cash Flow

Present

2021

2022

2023

Initial capital

52.120,000

EBITDA

152,571,200

133,807,280

109,726,916

a. Payback Period

Based on the calculation, the payback period occurs in the first year of 2021.

(EBITDA > Initial Capital. Using this parameter, Bakesolutely's cupcake business plan is

feasible to run. The capital will return in the 4th month.

52.120.000 / 152.571.200

0.34

Year

4.10

Month

b. Net Present Value

Using the assumption of 10% Social Opportunity Cost and Capital, then:

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Table 18 Calculation of Net Present Value

Year

SOCC

1+SOCC

2021

52.120,000

152,571,200

10%

1.1

2022

52.120,000

133,807,280

10%

1.1

2023

52.120,000

109,726,916

10%

1.1

NPV =

(152,571,200/1,1) + (133,807,280/(1,1)2)+ (109,726,916/(1,1)3) - 52.120,000

(152,571,200/1,1) + (133,807,280/(1,21)+ (109,726,916/(1,331) - 52.120,000

279,605,076

By calculating using the NPV parameter which has a positive NPV result or > 0, then

the Bakesolutely cupcake business is feasible to run.

c . IRR

Using percentages of 18% and 30% to get positive values and negative.

Table 19 Calculation of IRR

Discounted Cash Flow

Year

Net Cash Flow

18%

30%

- 52.120,000

- 52.120,000.0

2021

152,571,200

129,297,627

117,362,461.5

2022

133,807,280

96,098,305

79,175,905.3

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2023

109,726,916

66,783,189

49,943.976

Total

240,059,121

194,362,343

If it is determined that the SOCC is 20%

IRR = 18% + ( x (30%-18%)

240.059.121

(240.059.121−194.362.343)

= (0.18 + 5.25) x 12% = 0.65 = 65%

That is, IRR (65%) > SOCC 20%

Table 20 Summary of Feasibility Analysis

Parameter

The calculation results

Conclusion

Payback period

First year

Worthy

NPV

Positive

Worthy

IRR

> SOCC

Worthy

Pre-Operation Activities and Implementation Schedule

To have a good process, an implementation schedule is needed to control the course of

preparation.

Table 21 Preparatory Activities and Implementation Schedule

Activity

Implementation Schedule

month 1

month 2

month 3

1. Observation

2. Making a Business Plan

3. Renovation

4. Purchase of goods and materials

5. Employee recruitment

6. Employee training

7. Promotion

8. Operation and opening

Source: Processed by the author

CONCLUSION

With proper business process planning and organization, Bakesolutely's cupcake sales

process can run smoothly.

1. The right strategies and steps contained in one of the marketing and offering strategies

can be a reference in designing strategies and in taking the right steps to face the

competition.

2. One of Bakesolutely's goals is to help customers find cupcakes with natural dyes when

they want to buy either for their own consumption or as gifts to give to relatives. Special

orders are also available to get the desired theme.

3. The nature of the Cupcake business whose products are flexible for any moment is very

suitable to be developed, supported by Cupcakes that support a better lifestyle and have

added value.

4. In terms of financial analysis, Bakesolutely's cupcake business plan has a good rate of

return with a payback period of 4 months and 10 days, a positive NPV and an IRR of

65%.

Based on the results from various perspectives that have been designed, Bakesolutely's

cupcake business plan is feasible to run.

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