5 Updated.docx

5-MANAGEMENT 5-1 MANAGEMENT TEAM 5-2 LEGAL STRUCTURE

5-1 MANAGEMENT TEAM The size of your staff will depend on your bakery's size and type. For example, a retail bakery will need to hire and train front-of-house staff to take orders and work the cash register. Most of your bakery staff will work in the back-of-house, though, preparing and baking your food. Your bakery should have at least one or two employees that have formal training or bakery experience to oversee the actual baking process. Additionally, you may also want to hire some unskilled workers for washing dishes, mixing ingredients, packaging products, and doing other tasks that don't require previous experience or expertise.

ORGANIZARIONAL STRUCTURE & OWNERSHIP Ambala Bakery is a partnership business with the ownership distribution of 30%-70% between two owners. The day to day operations are managed by 3 managers who are assigned different tasks to look after. Under managers 6 to 7 sales men works who look after the customers dealing and inventory management. The managers also look after the Labours which counted for 15-20 are work in the cooking and cleaning department of the bakery. Bakery have 6 employees including 2 managers and 10 labour that have formal training or bakery experience to oversee the actual baking process. Additionally, we have 5 unskilled workers for washing dishes, mixing ingredients, packaging products, and doing other tasks that don't require previous experience or expertise.

POSITION, RESPONSIBILITY & SKILLS The owners have the responsibility to look after the daily finances of the bakery including the cash counter, suppliers dealing and buying raw material. The 3 managers have different task to look after, the inventory manager keep the shelves and display of the bakery up to date and keep check if the customer needs and required anything specific. He does his task with the assistance of the sales team working under him. The production manager look after that the daily production target is met according to the demand. The administrative manager looks after the cleaning department and raw material management. The labour has different specialties like some are best in making cookies and cakes, other are working in making pizzas and sandwiches and some are best to work in making sweets. For example, a labour working in making sweets

has over 8 years of experience in making sweets and same goes for the one who is making cakes and pizza.

EMPLOYEE AGREEMENT The employee agreement is different for the level of management in the bakery. Managers and sales man are working on a monthly pay roll and the sales man are giving extra 10% commission on monthly sales as well. The labour payroll work in a totally different way. The skilled labour is hired on advance payroll and unskilled labor is paid daily at the end of the day. Skilled labour is giving an advance payment as security for the time they will work for the bakery and after that the contract or commitment can be renewed for the next term.

5-2 LEGAL STRUCTURE There are legal restrictions about which you must be informed and by which you must abide. Because you are making and selling food to the general public, you must conscientiously obey food safety laws and set up your business in line with laws specific to your state. In addition to complying with food safety laws specific to your state, you may be required by your state laws to acquire special permits and licenses before you can start and run a bakery. The necessity for some specific types of licenses will depend upon whether you're a full service bakery making your own baked goods or whether you simply resell baked goods that you buy wholesale. When it comes to startup and operational complexity Partnerships require a signed agreement to define roles and percentages of profits. Legal structures shape your journey as a business, and choosing the best structure for your company requires time and consideration. There are many types of business entities, each with its own pros and cons. Your choice can greatly affect the way you run your business, impacting everything from liability and taxes to control over the company. The key is to figure out which structure gives your business the most advantages to help you achieve your organizational and personal financial goals. Two or more partners can register themselves as a firm under Partnership Act 1932. This entity is owned by two or more individuals. There are two types: general partnerships, where all is shared equally; and limited partnerships, where only one partner has control of its operation, while the other person or persons simply contribute to and receive only part of the profit. This entity is ideal for anyone who wants to go into business with a family member, friend or business partner, like running a restaurant or agency together. “A partnership allows the partners to share profits and losses and make decisions together within the business structure. Remember that you will be held liable for the decisions made, as well as those actions made by your business partner."

Application forms can be acquired from the Registration Section of Registrar of Firms of District Government. Partnership deed shall be made on judicial papers worth Rs.1,000 on behalf of the firm, which shall be signed by all partners and witnesses accordingly, mentioning their complete particulars therein. A Challan form of Rs.100 submitted in National Bank of Pakistan shall be attached with the application form. Your bakery may be subject to regular inspections by health officials. You must have excellent sanitary practices and maintain a bakery providing food which is safe to eat. Hazard Analysis & Critical Control Points is a management system you can implement which will analyze the safety of the food you're selling to the public. It allows you to monitor processes from raw materials to the finished product.

Factors to consider For new businesses it's not always easy to decide which legal structure to choose. You need to consider your startup's financial needs, risk and ability to grow. It can be difficult to switch your legal structure after you've registered your business, so choosing correctly at the start is crucial.

Flexibility You'll want to ask yourself where your company is headed, and if your structure allows for it. Turn to your business plan to align your goals with the proper structure. Your entity should support the possibility for growth and change, not hold it back from its potential.

Complexity When it comes to startup and operational complexity partnerships require a signed agreement to define roles and percentages of profits.

Liability Partnerships share the liability between the partners as defined by their partnership agreement.

Taxes Individuals in a partnership also claim their share of the profits as personal income. Your accountant may suggest quarterly or biannual advance payments to minimize the end effect on your return.

Capital investment If you need to obtain outside funding sources, like investor or venture capital and bank loans, you may be better off establishing a corporation, which has an easier time obtaining outside funding than does a sole proprietorship. Corporations can sell shares of stock, securing additional funding for growth, while partners can only obtain funds through their personal accounts, using their personal credit or taking on partners.