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DQ 1
I plan to open a small specialty cupcake bakery in an area with little apparent competition. My market research suggests that I can reach a sales level of $650,000 the first year. My products sell at an average of $3.75 per piece which is competitive in my market.The above assumptions imply an output of about 48 dozen per day. What are the operational possibilities of reaching this sales level? Why or why not?
A bakery consultant has suggested that with my lack of experience and limited equipment, producing that many cupcakes will be unlikely for at least 2 years.
What would you recommend I do to the operating assumptions in my business plan?