Business Plan: Roseville Secondary School Open HouseProduct: Homemade Baked
GoodsTarget Market: Students, teachers, and parents attending the open house.Production
Costs:
Fixed Costs:
Equipment: Oven, mixing bowls, measuring cups, baking pans, and utensils (one-time
investment)
Supplies: Baking ingredients (flour, sugar, eggs, milk, etc.), packaging materials (boxes,
bags, labels)
Business licenses and permits
Rent for a workspace (if necessary)
Variable Costs:
Cost of ingredients per item
Packaging costs
Labor costs (if hiring additional help)
Pricing Strategy:
Cost-plus pricing: Determine the total cost per unit (fixed and variable costs divided by
the number of units).
Value-based pricing: Consider the perceived value of the product to customers and set a
price accordingly.
Competitive pricing: Research prices of similar products in the market and adjust
accordingly.
Example:
Total cost per cupcake: $0.50 (including fixed and variable costs)
Desired profit margin: 50%
Selling price: $0.50 / (1 - 0.50) = $1.00
Profit Calculation:
Total revenue: Selling price * number of units sold
Total costs: Fixed costs + (variable costs * number of units sold)
Profit: Total revenue - total costs
School's share: 20% of total profit
Example:
Number of units sold: 100 cupcakes
Total revenue: $1.00 * 100 = $100
Total costs: $50 (fixed costs) + ($0.50 * 100) = $100
Profit: $100 - $100 = $0 (no profit)
Note: This is a simplified example. Actual profit margins and costs may vary depending on
factors such as production efficiency, demand, and negotiation skills. It's important to conduct
thorough market research and financial analysis to ensure profitability.
Additional considerations:
Variety of products: Offer a variety of baked goods, such as cookies, brownies, and
muffins, to attract a wider customer base.
Presentation: Create visually appealing displays to showcase the products.
Quality: Ensure high-quality ingredients and baking techniques to produce delicious
treats.
Marketing: Promote the business through flyers, social media, and word-of-mouth.
Customer service: Provide excellent customer service to encourage repeat business and
positive reviews.
By following these guidelines and carefully managing costs, you can create a successful student-
run business and contribute to the success of the Roseville Secondary School open house.
