you live in a big city and when i say big i mean one hour commutes home big you work in an office
of a big business you're just one of those employees that make sure everything runs smoothly
you're a bookkeeper you deal with numbers and finance all day long you hate your job
it doesn't challenge you and it's very repetitive you wake up you go to work you're stuck in traffic
you get home you watch netflix for the whole evening then you sleep and then you start over
and over and over again every single day is the same right now you're in the middle of
the city the traffic has stopped and you don't even care why it's a daily routine
you know you'll be there for a while so you turn on the radio nothing interesting same old news
every time you're stuck in traffic you get some time to reflect on yourself and you remember what
it used to be like when you were just a kid you reflect on the fond memories life was a lot easier
and happier you recall your father used to own a bakery shop where you'd help him make and sell
bread you used to live in a very small town it had nothing to do with the place you live in right now
you actually loved baking bread you love the smell of fresh bread and you enjoyed
the process you're asking yourself what went wrong and why you haven't pursued that path
i mean you are making good money but it's just not fulfilling to work for someone else
that night you decide you want to open a bakery but not just any ordinary bakery
you want to take it to the next level you want to be the leading producer
seller and provider of bread and cakes in your city that's a pretty big ambition
there are many competitors many restaurants and many problems you'll encounter but you want to
break the routine and start an adventure this is the beginning of your entrepreneurial journey
and this is an interactive video that will challenge your entrepreneurial decision making
it's simple you follow along with the story and when certain decisions are to be made you'll be
asked a question and you'll be provided a couple of options you'll get some time to think about
it and then i'll tell you which one is correct and why this will be very educational and you
can't cheat so no looking through the comments to find your answer keep your score and enjoy
so you're just starting your bakery and you're laying down your business plan you have about
fifteen thousand dollars in savings which is enough to start a small bakery in a small town
but this is a big city and you want yours to be placed in an area of interest where the location
will work in your favor you estimate that you'll need about twenty thousand dollars just to rent
the place get the documentation and purchase basic equipment for baking your first products
you also need an additional five thousand dollars for initial marketing
and ten thousand dollars to personalize your sitting or dining space
you want it to look good so you also hire a designer with taste to give it that comfy
coffee shop vibe that you're looking for that'll be another three point five thousand dollars other
costs amount to another five thousand dollars like your first employee and more bureaucracy
so the estimated amount you need to get started is forty three thousand five hundred dollars you only
have about 34.5 percent of that so you need a loan from a bank but there are more costs if you want
to invest in a bigger business and get more done so you need to talk to the bank before you can do
that you need a business plan this will include your vision all costs and obviously your strategy
now in order to grow you have two options option a you could start just as an ordinary bakery cafe
you get your goods cooked at night and you'll sell them in the morning
for breakfast and during the day so you will mainly sell treats cakes and coffee to locals
this keeps your necessary capital at 43.5 thousand dollars you already have fifteen
thousand dollars so you'd get a loan for twenty eight point three thousand dollars b
you could ask for more money and start selling bread to restaurants and other coffee shops
this would drastically increase profits and provide predictable revenue
but on the downside it requires another twenty thousand dollars for the machines
vehicles employees and certifications this would bring your necessary capital to sixty three point
five thousand dollars again you already have fifteen thousand dollars so you only need a
forty eight point three thousand dollar loan so which one will you choose start
as an ordinary small bakery cafe which is safer or sell massively right away with a higher risk
done good the correct answer is b you should get a 48.3 000 loan assuming that you know what
you're doing the market is very unpredictable but when you get some deals with restaurants
and other shops in your city you basically get a guarantee that someone will purchase your products
for example you might make a contract with a restaurant to provide them with
fresh bread every morning for ten thousand dollars a month this would
make it easy to make a profit on all your costs and since you're in a big city you
could find a bunch of potential clients that would boost your revenue buy a lot
now you have your basic plan laid out but there's one important thing missing what type of products
will you serve you live in a young city a modern community with a lot of trendy shops and areas
that are popular all over social media being trendy and interesting is important and that's
why you're going to hire a designer to help you out with style but what about the actual food
that you'll sell in the cafe part of your bakery you've got two options again option a sell all
main bakery products muffins brownies all widely known cakes and bread or option b sell hyper
specific products with basic selling points like gluten free or flour based so what will you choose
before you answer consider that you live in a big city with a lot of people tourists and competition
what have you chosen the correct answer is b let me explain why if you have a lot of competition
this means that all the main bakery products are already being sold by other bakeries
you can't succeed selling the same things because you'd have no competitive edge
also if you become very specific and interesting you'll get the attention of tourists which will
come to your cafe to try something new and that might be anything from making
chocolate only products for breakfast to only cooking gluten-free products
a couple of months go by and you decide to quit your job you got your loan you got your location
and the bakery is almost ready the designer is working on the last couple of details
however you still need to hire some people to help you with your delivery service and cafe part you
need to hire three people one of them will help you bake your products the second will take care
of delivering bread and products to restaurants and shops on time every morning and the last one
will serve the cafe you on the other hand are going to do a little bit of everything you post
the job opportunity everywhere on the internet you even attach some flyers around town you want to
get as much choices as possible so you interview almost everyone independently of their experience
a friend of yours will help you with the delivery you trust him and you'll give him this job then
you also find the baker who's going to work at night for the products to be ready in the morning
now you need someone young to be the face of your bakery cafe and you narrow it down
to two choices two beautiful young ladies same age but different characteristics hey
the first one has already worked as a maid in a hotel and has worked summer jobs in cafes before
this means that she has some experience so you won't need to train her she's looking for a
full-time job so you'll get some good experience for your money she doesn't have social media b the
second young woman has no experience whatsoever she's never had a job but she is very ambitious
she runs a youtube channel on cooking and she wants to become a chef one day right now she's
looking for a job to sustain all her expenses she also has a mediocre social media presence now
before you choose you must consider that this is a big trendy city it is fast-paced the coffee shop
might be challenging to manage at times even if it is small this is a very important role as the
person that you choose will have a strong impact on your image your brand and how likely people are
to return to your cafe bakery which will make up about half of your profits take your time
done good the right choice is b again the reason is simple even if she doesn't have any experience
she can easily learn how to manage a small bakery however you can't learn attitude and aspiration
so the first lady might not be the best choice if you're looking for progress
also the second person has a social media presence which is very important especially
since the city is trendy and full of tourists all the time this will help you with marketing
this is your last decision for this video you're almost ready to get started you got the staff
the place is ready and you have about six thousand dollars left for your marketing campaign
in a big city like yours that's not a lot of money so you're trying to choose between a disrupting
mall type of campaign or a social media campaign the first one is basically handing out flyers
and free samples of your products in a mall this will cost you a lot of money but a lot of people
will know that you exist the second option is an instagram advertising campaign where you'll
tell people that are in your city to come and try out your baked products so the options are
option a handing out free samples and flyers in a mall and option b social media marketing
campaign
well the thing is there isn't a very specific answer to this one
both will work in different ways with the first strategy you'll be known by the locals while
the second one will mostly reach tourists and people that are passing by in the long
run option b might be better because people will probably share pictures and their experience in
your restaurant on instagram where they found you which will generate a lot of credibility with time
but there are a lot of marketing strategies that you could apply to make the bakery cafe a success
if you have any other ideas i'd love to hear them also let us know how many answers you
got right and if you like this format and also if you'd like us to make another one now you
need to watch this video why take the risk job security versus entrepreneurship this will give
you a deeper perspective on entrepreneurship and why you should pursue it while keeping it real
since it isn't easy then this one the entrepreneurial journey of richard branson
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if you're interested with that said have a great day you guys and i'll see you all in the next one