Financial and economic feasibility study of opening a pastry shop located in Madrid, Chueca neighborhood called "La Alejandrina Patisserie"

Abstract

According the Asociación Nacional de Startups (Asociación Española Startups, 2018) in Spain the percentage of people initiating an entrepreneurship project increased around 20% in 2018 compared with the previous year. In addition to this, the likes of the new workers' generation and the lack of good job posit ions around the country, cou ld forecast the growth of this numbers to be exponential. However, it is known that to begin a startup it's no easy at all, even according to Forbes numbers, 80% of the startups fail in t heir seed or init ial phases. The present project pretends to make different analysis of the environment, market, technica l and legal factors to start a business, to then proceed with an evaluation th rough different financia! and strategic methods and outputs, combined with financia! and economic theory if the idea of opening a pastry shop called "La Alejandrina Patisserie" is economic viable. The first one is focused on a market and strategy analysis, included the elaboration of a Business Model and a Business Plan. In the second phase, it was made a technical analysis of the project, in other words it was developed the t echnical featu res about the products that are going to be sold, the equipment, space, supplies, employees and how the production line it's going to work. The third phase, consisted in a very specific marketing plan, where it was defined the channels in which the advertisement it's going to be made and how it's going to be done. As fourth point, it was developed a study of the legal conditions and requirements of opening a business related to food, permit and licenses. Finally, as f ifth and last point, and maybe one ofthe most important steps, it was made a financia! and economic analysis with the purpose of verifying if this business project its viable for opening. Here it was found a positive NPV, an IRR of 14% anda Payback period or 2,5 years making possible to say that opening the store would be viable for the investors.