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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.