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Bakery Business Plan: How to write it [Complete Guide]
- January 3, 2023
- Food & Beverage
Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your bakery, you will need to prepare a solid business plan.
In this article we go through, step-by-step, all the different sections you need in the business plan for your bakery. Use this template to create a complete, clear and solid business plan that get you funded.
1. Executive Summary
The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.
If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.
Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.
Why do you need a business plan for a bakery?
The purpose of a business plan is to secure funding through one of the following channels:
- Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
- Obtain private investments from investment funds, angel investors, etc.
- Obtain a public or a private grant
How to write your bakery’s executive summary?
Provide a precise and high-level summary of every section that you have included in your bakery business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately. Ensure that the executive summary doesn’t exceed 2 pages in total.
The executive summary usually consists of the five major sub-sections that include:
- Business Overview : give a brief introduction to your bakery and quickly describe your brand, its offerings, the pricing list of products and what sets you apart from your competitors
- Market Overview : the market analysis segment will contain an overview of the expected bakery market size and growth in your area, as well as an analysis of your competitors and target audience
- Management & People : introduce your bakery’s management and employee structure. Provide a brief (no more than a couple of sentences each) of the knowledge and experience of the team. Also, speak here about your hiring plans and the reporting lines
- Financial Plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? Include here a chart depicting your key financials such as revenue, gross profits, and net profit
- Funding Ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?
Bakery Financial Model
All you need to get funded
All you need to get funded: startup costs, profits, breakeven, charts, valuation
Rated 4.8/5 from 5,900+ downloads
2. Bakery Business Overview
In this section of your bakery business plan, you will provide an overview (slightly more detailed) of your business. If there is something unique about your baked products, mention that in this segment.
Some of the most important questions that you must try to answer in this section include:
- Why are you opening a bakery?
- Where will your bakery be located and why did you choose that location?
- What type of baked products will you sell (low-calorie, vegan, gluten-free, etc.)?
- Why do you want to offer those product lines?
- How will you price your food offerings?
- Will your operating hours be the same as your competitors?
- Who is your target audience?
- What will be the legal structure of your company?
Let’s look at different subsections that you must include:
a) History of the Project
Any business must have two components:
- Passion & experience of the business owner
- Rationale behind the business
Passion & Experience
It is not necessary to have any prior experience with a bakery. As long as you are passionate about it and you know your market, you are good to go.
However, if you have any experience, make sure that you are mentioning that. For example, you may have been a head pastry chef and a creative cake decorator in a popular bakery for 6 years and now you want to launch your own bakery.
No matter what, ensure that you demonstrate not just passion but also some industry knowledge that you must garner through thorough research.
Every business has a rationale behind its existence. What’s yours? Are you going to solve some problems that exist in the current bakery business scene?
For instance, the target market may have a very high percentage of pastry-loving obese people. You may be the first one to introduce low-calorie pastries, cakes, and other baked items.
Similarly, if the area has a high vegan density, you may want to introduce a line of vegan products that no other bakery in the area is offering.
You must also ensure that the market is conducive for the business to exist. For instance, if you are a master cake maker who makes ultra-realistic cakes that cost a lot and try to sell them in a low-income neighborhood, your cakes will probably not sell.
Therefore, it is important to understand the market before starting a business to prevent extreme losses, and eventually closure.
b) Business Model
This is where you will talk about the business model and the type of bakery you want to open. Some points that you need to briefly describe here are:
- Will you buy a new bakery, or will you buy an old one and remodel it?
- Will you open a specialty bakery, a counter service bakery, or some other bakery type?
- What equipment, technologies, inventory, and tools will you need to operate your bakery?
- Where will you source your ingredients from?
There are various types of bakeries that you consider:
- Bakery Café : It is a sit-down bakery. It is a retail bakery with a dedicated dining area. There will be front-of-house and back-of-house spaces and people will often order food and other drinks apart from your baked items like muffins, cupcakes, cookies, etc. People can also order tea, coffee, sandwiches, etc.
- Counter Service Bakery : These bakeries do not have any dining area. People will order food and take them away. You can sell other food items like drinks, burgers, sandwiches, etc. apart from your usual baked goods.
- Specialty Bakery : These bakeries focus on a very specific set of products. For example, wedding cakes, gluten-free baked products, etc.
- Retail or Wholesale Bakery : The difference between a retail and a wholesale bakery is that in the retail model, you will sell to your direct customers (B2C). In the wholesale model, you will be selling to other businesses like cafes, restaurants, specialty shops, etc.
Irrespective of the type of bakery you want to open, make sure that there is adequate demand for the products you want to sell. For instance, if you are trying to sell a vegan line of baked products to customers who want non-veg-based baked products, you will not succeed. There must be enough vegans in your target market.
c) Products & Services
In this sub-section of your bakery business plan, you will provide a list of your products and services. For instance, if you intend to open a specialty bakery such as wedding cakes, you must provide a menu listing all that you have to offer.
Similarly, if you want to sell bread, cookies, and pastries only, make sure that your sample menu lists them. If there are too many items that you intend to sell, make sure that the sample menu you are providing includes the major attractions. You don’t need to list all the items.
d) Pricing Strategy
This is where you will explain your pricing strategy. Of course, your prices can vary significantly from your competitors. However, if there is a significant price variation, you must explain such differences.
For instance, you may be selling custom-designed birthday and wedding cakes instead of generic designs. That may be the reason for higher costs. Similarly, the quality of the ingredients you use for baking can also account for the price differences.
Irrespective of the case, include a pricing chart for your menu items. No need to include the price of every product or product bundle you intend to sell. Instead of listing the price for every product individually, you can just provide a pricing range.
For example, you can do something like this:
- Multi-decker cakes with custom fondant-crafted figurines: $350 to $1,000
- Gluten-free cookies: $3 to $6
Offering a pricing chart is important because your pricing strategy will also allow investors to tie your pricing strategy with your financial projections later on.
e) Legal Structure
Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?
3. Bakery Market Overview
A complete understanding of the market where you want to operate is important for the success of your business.
For example, there may be a large number of cafes in the area with regular and high demand for baked goods like pastries and cookies. Thus, opening a wholesale bakery to serve the B2B demand instead may make sense here.
Therefore, you must cover here 3 important areas in the market overview or market analysis section of the business plan of your bakery:
- Market trends : how big is the bakery industry in your area? What is its growth rate (or decline rate) and what are the factors contributing to its growth or decline?
- Competition overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
- Customer analysis: who is your target audience? What type of bakery setup do they prefer? How frequently do they buy baked goods? What is their average spending at bakeries?
a) Bakery Industry Status Quo
How big is the bakery industry in the us.
According to the American Bakers Association, the US bakery market represents $154 billion and employs over 800,000 people..! The commercial segment is by far the largest (91% industry size) vs. retail bakeries that only represent 9% of the total US bakery market.
In terms of products, here is the breakdown of the most common bakery products as a percentage of total bakery sales in the US:
How big is the bakery industry in your area?
Once you grab the exact data for the US market and add it to your business plan, you can then divert your attention to the area where you want to operate. It might not be possible to find region or area-specific studies, and hence, you must estimate the size. For more information, read our article on how to estimate TAM, SAM and SOM for your startup.
Let’s now see how to estimate the market size of the bakery industry size for your business plan. We know that:
- The total US market size for retail bakeries is $15 billion (10% of the total $154 billion)
- The total number of retail bakeries is around 23,000
Therefore, the average annual revenue for each retail bakery is around $650,000 (that’s an average of $1,800 in sales per day).
So, if there are 20 already bakeries in the area where you will operate, we can reasonably assume the market size of the bakery industry in your area is around $13 million.
How fast is the bakery industry growing in the area?
Now, you must show the expected growth rate of the bakery industry in your area. This information may not be available via online research papers. However, assessing the growth rate will not be difficult.
You can approach each bakery separately and ask for their year of establishment. You will get a clear picture of the overall growth rate.
For instance, if there were 18 bakeries in 2018 and 20 bakeries in 2022, the average annual growth rate is 5.1%.
b) Bakery Competition Overview
Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their bakery product offerings, marketing strategies, etc., will allow you to provide a better service.
If your competitors are offering nearly the same products & services, then what is their market share and how do they market their products & services to attract new customers?
It is always a good idea to do some research (if necessary, physically visit your competitors without revealing your business intentions) and create a comparative table summarizing their product & service offerings, marketing strategies, target audience, etc.
Here is a sample table that you can use:
The competition analysis table you will add to your bakery business plan will depend on what information you need and want to include based on your business model.
Bakery SWOT Analysis
Try to provide a SWOT analysis. It must be crisp and highly focused. SWOT stands for Strength, Weakness, Opportunities, and Threats.
Here is a sample that you can use as a reference:
- Strengths : Baking & Pastry Arts degree from Culinary Institute of America; 6 years of cake and pastry baking & decoration experience in a renowned bakery chain
- Weaknesses : Startup cost, zero reputation
- Opportunities : Increasing demand for healthy baked food because of increasing health consciousness in the target market
- Threats : Big brands like Dewey’s Bakery, Insomnia Cookies, Bare Snacks, etc., are flooding the market
A clear understanding of your strengths and weakness along with opportunities and threats in the real market can help you to design your marketing strategy. It also helps potential investors to assess the risk and reward profile of your business.
c) Bakery Customer Analysis
This is the sub-section where you will provide a detailed analysis of your target audience. Some important points that you must include in your customer analysis include:
- Age and gender distribution (you can get local demographic data from census.gov )
- Per capita expenditure on baked food items
- Frequency of bakery visits
- Average monthly income and disposable income
- Average bill size per visit
- Type of bakery preferred
- The expected price range for baked items
- Preference for healthy snacks and willingness to pay for high-quality products
- Any seasonal preferences they have
You can add as many data points as required to validate your business decision. The idea here is to display your deep understanding of the target audience and their needs, preferences, and expectations. This knowledge can help you to tailor your products & services to attract new customers.
4. Sales & Marketing
This is the segment where you outline your customer acquisition strategy. Try to answer the following questions:
- What is your USP?
- What are the different marketing strategies you will use?
- How do you intend to track the success of your marketing strategy?
- What is your CAC or customer acquisition cost?
- What is your marketing budget?
- What introductory promos and offers do you intend to provide for attracting new customers?
Let’s expand a bit on a few questions below:
What marketing channels do bakeries use?
A few marketing channels that bakeries typically use are:
- Online listing & reviews (e.g. Google Business)
- Bakery directory listing
- Signage and billboards
- Print media (newspapers, etc.)
- Loyalty programs
- Coupons & gift cards
- Social media interactions and social media ads
It is not necessary to use all channels. You can start by focusing on a few of them. You can include other marketing strategies later.
Also, you must have a fair and nearly accurate estimate of your marketing budget. Failure to display a well-planned and adequate cash flow for advertising and marketing can lead to investors losing confidence. That’s because investors are fully aware that if adequate funds are not allocated for marketing, the business will be derailed before becoming a success.
What is your unique selling proposition (USP)?
In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.
A few examples of USPs are:
- Low Calorie : Craving for sweets while burning fat? We have the perfect pastries!
- Vegan : Dairy-free vegan cheesecakes that melt in your mouth
- Doorstep delivery : We will reach your door to satiate your cravings
Your USP will depend on your business model, competitor analysis, and target audience. Whatever your USP be, it should appeal to your potential customers and attract them. Plus, The USP you offer should be convincing enough for investors and lenders.
5. Management & People
You must address two things here:
- The management team and their experience/track record
- The organizational structure: different team members and who reports to whom?
Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your bakery business.
Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.
It is also important that you explain how their experiences and qualifications help you in implementing the bakery you are proposing. If they have specialized training, and experience (such as a degree in baking and pastry arts degree, 6 years of baking experience in a renowned bakery chain, etc.), add that information.
b) Organization Structure
Even if you haven’t already hired production bakers, pastry chefs, kitchen helpers, marketing & accounts personnel, etc., you must provide a flowchart of the organizational structure defining the hierarchy of reporting.
6. Financial Plan
The financial plan is perhaps, with the executive summary, the most important section of any business plan for a bakery.
Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your bakery is an attractive investment.
There should be 2 sections to your financial plan section:
- The startup costs of your project (if you plan to start a new bakery, purchase new equipment, renovate your store, etc.)
- The 5-year financial projections
a) Startup Costs
Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a bakery, startup costs are all the expenses you incur before you open your bakery and start making sales. These expenses typically are:
- The lease deposit for the space (if you rent) or the cost to purchase the real estate
- The renovation / refurbishment of the building / space
- Equipment & furniture for the bakery
Of course, the startup costs depend on many factors like the bakery shop size, its location, the number of staff, quality of the equipment, etc.
As an example, it costs on average $109,250 to $310,050 to open a 1,500 sq. ft. bakery in the US .
Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a bakery, read our article here .
b) Financial Projections
In addition to startup costs, you will now need to build a solid 5-year financial model for your bakery.
Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in the business plan of your bakery.
As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.
Your financial projections should answer at least the following questions:
- How much revenue do you expect to generate over the next 5 years?
- When do you expect to break even?
- How much cash will you burn until you get there?
- What’s the impact of a change in pricing (say 15%) on your margins?
- What is your average customer acquisition cost?
You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:
- The number of customers over time ;
- Your expected revenue ;
- Operating costs to run the business ;
- Any other cash flow items (e.g. capex, debt repayment, etc.).
When projecting your revenue, make sure to sensitize pricing and the number of customers as a small change in these assumptions will have a big impact on your revenues.
7. Funding Ask
This is the last section of your bakery business plan. Now that we have explained what your bakery business model is, what you sell and to whom, what’s your marketing strategy, etc., this section must now answer the following questions:
- How much funding do you need?
- What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
- How long will this funding last?
- Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)
If you raise debt:
- What percentage of the total funding the loan represents?
- What is the corresponding Debt Service Coverage Ratio ?
If you raise equity
- What percentage ownership are you selling as part of this funding round?
- What is the corresponding valuation of your business?
Use of Funds
Any bakery business plan should include a clear use of funds section. This is where you explain how the money will be spent.
Will you spend most of the loan / investment in paying your employees’ salaries? Or will it cover mostly the cost for the lease deposit and the renovation?
Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our Bakery financial model template , you won’t have any issues answering these questions.
For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.
Bakery Business Plan Template
Written by Dave Lavinsky
Bakery Business Plan
If you want to start a bakery business or expand your current one, you need a business plan.
Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their bakery businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a bakery business plan step-by-step so you can create your bakery’s business plan today.
Download our Bakery Business Plan Template here >
How To Write a Business Plan For a Bakery
The executive summary is the introduction to your business plan, although it is often written last. It helps investors and lenders quickly decide whether they are interested and should read more, so the first page must get right to the point. Include a concise description of your bakery (or bakery concept if you are a startup), a short analysis of the market, proof that customers are willing to pay for products, and an explanation of the unique qualifications that ensure your bakery will be a success.
This section of your bakery business plan provides a comprehensive look at the company’s history. Include details on your bakery’s legal structure, founding, location, and current business stage, as well as your past accomplishments and unique qualifications. Clearly explain anything that makes you a strong competitor in this market, such as existing contracts with retailers, a head baker with impressive restaurant credentials, or exclusive access to award-winning recipes.
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In this section you should also give an overview of the type of bakery you operate or will operate in the future.
For example, do you or will you operate a:
- Traditional bakery (selling breads, biscuits etc.)
- Commercial bakery
- Bakery specializing in wedding cakes
- Wholesale bakery
- Doughnut shop
- Pastry shop
- Bakery Cafe
- Food truck bakery
- Home Bakery
This section assesses that bakery industry and how your bakery fits into the existing landscape. Address any challenges that you unearth with a solid strategy for success. Also keep in mind that your market is not the entire baked goods market. Rather, it is your niche of that market.
For example, while the baking industry in the United States generates more than $30 billion per year in revenues, your bakery will only comprise a fraction of that amount depending upon your geography, focus, etc. So, zero in on the specific products and customers you plan to target and focus your analysis on those elements.
This section of your plan details your bakery’s target audience, that is the customers you will serve. Note that in many cases, a bakery might target multiple market segments. Do you plan to target brides to be? Children’s birthday parties? Upscale families who regularly hold private events for 100 or more guests?
Or do you primarily serve walk-in customers. This segment usually comprises neighborhood resident who know about your bakery, and who tend to visit regularly.
Even if you’re not a commercial bakery, you might serve local delis, grocery stores and bodegas. Clearly, it helps a bakery’s sales if it has a greater number of distribution points. The same is true in the case of restaurants. A bakery can supply breads, bagels, cakes, pastries and other products to restaurants and hence create a larger customer base.
Whatever target markets you serve, clearly define them in your business plan. Detail the demographics of each. For example, are they wealthy males and females? Are they college students? Are they local restaurants? Whatever the target customers, you need to identify and detail them so you’ll know their needs and can better serve them.
Likewise, discuss the psychographics of your target customers. Are they price conscious? Is quality the most important issues they will use to judge your bakery? Do they insist on reliability and premium service?
In addition to documenting the demographic and psychographic variables that define your target market, detail how your bakery will meet their unique needs.
This section of your bakery business plan details your direct and indirect competitors. Direct competitors are other companies who fulfill the same need for the same target market, most likely others selling similar baked goods. Your indirect competitors are those who fulfill a different need for the same target market, or those who fulfill the same need for a different target market. An example of an indirect competitor could be a nearby coffee shop.
In your plan, name and describe your direct competitors individually, and explain what sets your bakery apart from them. Create a more general category for your indirect competitors and discuss them as a whole.
Finally, detail your areas of competitive advantage and what will make you distinct. Most successful bakery owners identify products that no other local bakeries offer, such as a treat that is exclusive to your bakery and that drive customers to frequent your store. Also, based on the demographics and psychographics discussed above, you may be successful being the only local bakery selling nut-free cakes, or making vegan and gluten-free baked goods with local and organic ingredients.
Your bakery marketing plan explains how you will penetrate your target market, based on the four P’s: Product, Price, Place, and Promotion.
The Product section explains all the products and services your bakery will provide. Price refers to the price points at which you will sell each item, along with your reasoning for choosing those prices. Place explains all your distribution methods, such as your retail stores, your company website, and third-party retailers. Promotion defines the ways you will entice customers to purchase your baked goods, such as free samples and web advertising.
In addition to describing the four Ps your bakery marketing strategy, you should explain how you will retain existing customers through loyalty programs or other methods. Also, in this section of your plan, particularly if you are startup retail bakery, you should detail the design and display of your location.
Clearly, your bakery’s storefront should be designed in a way that attracts walk-in customers. Consult an interior designer to get insight on how to create a warm and inviting ambience in your bakery.
The operations plan explains the processes by which you will turn your vision into a reality. It includes the everyday short-term processes involved in physically baking your products, managing your retail space, packaging your baked goods, conducting sales transactions, choosing and working with vendors, and delivering the finished products to your customers among others.
Your operations plan must also include the long-term processes involved in growing your company, such as introducing new products or retail stores, achieving specific sales milestones, and hitting other important business-oriented goals such as hiring new employees, launching new locations, etc.
This section provides biographies of the key members of your company’s management team, with an emphasis on strong business skills. Focus on educational background, previous experience with successful start-ups, and other elements that demonstrate your and/or your team’s ability to build a company. A strong advisory board can help make up for weaknesses provided you clearly articulate how your advisors will directly impact the company’s growth.
The financial plan is often the most difficult part of the business plan to write, yet it is the section that potential investors and lenders spend the most time analyzing.
Provide a list of all revenue streams, including their relative importance and timeline for implementation, as well as the amount and expected sources of outside funding. Include a summary of past (if applicable) and projected Income Statements, Balance Sheets, and Cash Flow Statements. The assumptions made in these documents must be reasonable and verifiable based on an analysis of similar companies.
Make sure you don’t miss anything when putting together your financial projections or you could lose credibility in the eyes of readers of your plan. For example, make sure you adequately enter costs which most bakeries incur such as space (owned or rented), equipment (planetary mixers, cylinders, gas stove, cooling fridge, deep fridge, storage utensils, etc.), electricity and water, staff, furniture and décor, licenses, insurance and legal fees.
The appendix includes your full financial projections, as well as any other documentation that supports the claims made in the business plan. For example, it might include a list of key existing customers or letters from potential partners. Likewise, if you’re a startup bakery, including sketches of the proposed store design should appear in your appendix.
Putting together a business plan for your bakery business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the bakery business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful bakery business.
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Bakery Business Plan FAQs
What is the easiest way to complete my bakery business plan.
Growthink's Ultimate Bakery Business Plan Template allows you to quickly and easily complete your Bakery Business Plan.
Where Can I Download a Bakery Business Plan PDF?
You can download our bakery business plan template PDF here.
Our bakery business plan PDF is a free resource to help you get started on your own business plan. This is a business plan template you can use in PDF format for a bakery, home bakery, wholesale bakery or any other type of bakery.
What Is a Bakery Business Plan?
A business plan provides a snapshot of your bakery as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
Why Do You Need a Business Plan?
If you’re looking to start a bakery or grow your existing bakery you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your bakery in order to improve your chances of success. Your bakery business plan is a living document that should be updated annually as your business grows and changes.
What Are the Sources of Funding for a Bakery?
Bakeries are usually funded through small business loans, personal savings, credit card financing and/or angel investors. This is true for a home bakery business plan too. This is true for a wholesale bakery business plan, a home bakery business plan and a commercial bakery.
Other Helpful Business Plan Articles & Templates
Bakery Business Plan Template
Business Plan Outline
- Bakery Business Plan Home
- 1. Executive Summary
- 2. Company Overview
- 3. Industry Analysis
- 4. Customer Analysis
- 5. Competitive Analysis
- 6. Marketing Plan
- 7. Operations Plan
- 8. Management Team
- 9. Financial Plan
Bakery Business Plan
You’ve come to the right place to create your bakery’s business plan.
We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their bakeries.
A bakery business plan is a plan to start and/or grow your bakery. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan, and details your financial projections.
How To Write a Bakery Business Plan & Sample
The following information will provide a description of what to include in your bakery business plan along with links to an example for that section:
- Executive Summary – The Executive Summary section provides a high-level overview of your plan. It should include your company’s mission statement, as well as information on the products or services you offer, your target market, and your business goals and objectives.
- Company Overview – The Company Overview section provides an in-depth look at your company, including information on your company’s history, ownership structure, bakery location, and management team.
- Industry Analysis – Also called the Market Analysis, in this section, you will provide an overview of the industry in which your bakery will operate. You will discuss trends affecting the industry, as well as your target market’s needs and buying habits.
- Customer Analysis – In this section, you will describe your target market and explain how you intend to reach them. You will also provide information on your customers’ needs and buying habits.
- Competitive Analysis – This section will provide an overview of your competition, including their strengths and weaknesses. It will also discuss your competitive advantage and how you intend to differentiate your bakery from the competition.
- Marketing Plan – In the Marketing Plan section, you will detail your marketing strategy, including your advertising and promotion plans. You will also discuss your pricing strategy and how you intend to position your bakery in the market.
- Operations Plan – In the Operations Plan, you will provide an overview of your store’s operations, including your store layout, staff, and inventory management. It also includes information on your warehousing and distribution arrangements and a list of long-term milestones or business goals.
- Management Team – In this section, you will provide information on yourself as the talented baker, your team, your experience, and your roles in the company.
- Financial Plan – In this section of your bakery financial plan, you will include your financial statements: income statement, balance sheet, and cash flow statement. It also includes information on how much funding you require and the use of these funds.
Next Section: Executive Summary >
Bakery Business Plan FAQs
How can i complete my bakery business plan quickly & easily.
Learn more about writing a successful plan by using this bakery business plan template .
Where Can I Download a Bakery Business Plan Template?
Get a downloadable bakery business plan template here .
What Are the Main Types of Bakeries?
A bakery can be retail or wholesale. A retail bakery sells baked goods directly to customers, while a wholesale bakery typically sells products to other businesses, like restaurants, grocery stores, specialty shops, and cafes.
How Do You Get Funding for Your Bakery?
Bakeries are most commonly funded with personal savings and bank loans. Credit card financing and angel investors are also popular forms of funding for bakeries.
Learn More: Seeking Funding from Angel Investors vs Venture Capitalists
What Are the Main Sources of Revenues and Expenses for a Bakery?
The primary source of revenue for bakeries is its baked good sales. This includes deliveries and online orders. Sometimes bakeries also earn from bulk orders from wholesalers or special occasions.
The key expenses for bakeries are rent, wages and salaries, ingredients and packaging.
What are the Steps To Open a Bakery Business?
Opening a bakery business can be an exciting endeavor. Having a clear roadmap of the steps to open a business will help you stay focused on your goals and get started faster.
1. Develop A Bakery Business Plan - The first step in opening a business is to create a detailed bakery business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your bakery business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your bakery business is in compliance with local laws.
3. Register Your Bakery Business - Once you have chosen a legal structure, the next step is to register your bakery business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to open your bakery business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Bakery Equipment & Supplies - In order to start your bakery business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your bakery business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful bakery business:
- How to Open a Bakery Business
- Business Plans Handbook
- Business Plans - Volume 05
- Bread Bakery Business Plan Business Plan
Bread Bakery BUSINESS PLAN
8900 Green Lake Road Port Hanover, Michigan, 49333
This business plan is a tightly constructed, succinct consideration of all factors relevant to launching this bakery. From rent charges to competition and seasonal changes to costs per loaf, this plan hasn't left anything out...all without being overly verbose. This exemplary plan is very focused and complete, which will help the business stay on course.
Awareness of high quality baked goods is on the rise. Good bread is a rare combination of nutrition, convenience, and luxury. Today's consumer has less time to create wholesome, handmade bread, but increasingly appreciates the nutritional and sensory benefits it provides. Good bread provides fiber and carbohydrates in a convenient, low fat form that is portable and delicious. Good bread never goes out of style.
Breadcrafter will produce and sell high quality, handmade breads to the residents and tourists of Port Hanover and Freeman County. The Company will focus on European Style; naturally leavened breads and baguettes made with high quality ingredients. Breads will be baked and sold at a storefront facility using a 4 deck, steam injected bread oven. Labor saving devices will allow the proprietor to run the entire operation with the help of two part time, seasonal employees.
Breadcrafter's main competition includes a health food store, three pastry shops and three supermarkets in the Port Hanover area. Its advantage lies in the high quality of its products due to specialization and artisan manufacturing. The main marketing focus will be an eye catching sign, the scent of fresh bread wafting out of the storefront, and periodic printed advertisements. The company will sample its products liberally.
After establishing the operation, the company will explore the possibility of making takeout sandwiches. Delivering wholesale bread and baked goods to area restaurants and specialtyretailers will also be considered.
The company is being founded by Kevin Richards, an artisan baker currently baking breads and pastries for Toothsome Foods Company in Port Hanover, Michigan. Kevin has spent the last two years building the TFC program from the ground up. His wife Renee Richars is also a bread baker, having baked for one year at the Grainery Food Co-op, Breadcrafter's chief competitor. Together they bring a wealth of practical experience and a realistic market sense to the company.
Breadcrafter is currently seeking $70,000 in loans to get the business underway. Major costs include equipment purchases, shop rent, ingredient purchases, site modifications, and marketing, which total $61,000. Projected sales for the first three months, based on market and competition studies, will total $41,087. Total operating expenses and cost of sales will leave an average profit of $4,740 per month.
Opening day is scheduled for July 1st, 1996. While Breadcrafter has the potential for high growth, the first three years will be spent establishing company financial stability and increasing market share.
Breadcrafter will be created to serve the Port Hanover community by exploiting the need for a good bread bakery. It will offer a variety of high quality, European and American style artisan breads, baked fresh in its storefront bakery.
The company's immediate goals are to achieve start up by July 1st, 1996, in time to capitalize on the lucrative summer tourist season. It will start with the proprietor, Kevin Richards, as baker and manager with the help of two part time employees. The company should gross over $100,000 in its first year. Long term goals include the addition of a takeout sandwich store to the storefront and wholesale bread sales within one year.
Kevin Richards, the proprietor and baker, is the creator of Breadcrafter. For four years, he has been employed at Toothsome Foods Company, a specialty foods manufacturer in Port Hanover, Michigan. His experience as a Production Supervisor and as a Research & Development Cook bring a sense of production realities and technical savvy to the company. As the driving force behind TFC's current Handmade Bread program, Kevin has two years practical experience with sourdough breads. He holds a BA in English Literature from the University of Michigan.
Renee Richards, Kevin's wife, also has bread baking experience. She baked bread at the Grainery Food Co-op in Port Hanover, Michigan for one year, and she contributes a keen sense of the bread market. She also contributes retail sales experience accrued through several retail jobs around Port Hanover.
The company is in the process of securing $70,000 in start up financing.
Breadcrafter's breads will stand out from the competition due to their uniqueness and outstanding quality. Most of the breads are European in style, including Sourdough, Miche (a traditional French whole wheat bread), and Sourdough Rye. These breads are made by the sourdough method which uses no added yeast. This method imparts a rich flavor, which can be tangy or mild, as well as a toothsome inner crumb and a crackly crust. By using this method, a skilled baker can create truly delicious breads without added fats or sugars, making many of Breadcrafter's products 100% fat free. Sourdough breads also have an extended shelf life, remaining fresh for days without the use of preservatives. Breadcrafter will also offer specialty breads, which will be made in the sourdough way with the addition of such luxurious ingredients as Parmagian cheese with fresh ground pepper and dried Michigan cherries with roasted pecans. Spent Grain Bread, made with barley leftover from beer brewing, is another unique product that Breadcrafter will offer. Two varieties of French style baguettes will be offered fresh daily, a high demand product that is available nowhere else in the area. Breadcrafter will also produce White and Wheat Sandwich Breads with soft crust and a tender crumb for traditional American Style sandwiches. As the needs of the customer change, so will the lineup of Breadcrafter's products. The bakery equipment is chosen with versatility in mind.
After establishing the business, Breadcrafter will research the possibility of producing sandwiches to increase revenues. This investment would require approximately $1500.00 for the purchase of equipment and ingredients. The company will also pursue wholesale contracts. Toothsome Foods Company has indicated interest in a contract to produce two Christmas products on a per loaf basis, Cherry Chocolate Fruitcake and Midwest Christmas Stollen. These products can help generate revenues in the slower Autumn months. The proprietor will also consider producing some of Toothsome Foods' current lineup of Handmade Breads on a wholesale basis.
A self serve beverage cooler filled with soft drinks will also help increase revenues, as will the sale of fresh brewed coffee.
Production of sellable breads is projected to begin on July 1st 1996. Raw ingredients will be ordered for twice a month delivery from North Farm Co-op and Sysco Inc., at which time a two week production schedule will be drawn up by Kevin Richards, the proprietor/baker. Ingredients will be stored in a dry storage area and in a walk in cooler (already on the proposed premises). Rent of the facility will be $1,050 per month with utility costs running approximately $725/month.
Scheduling will begin with three large bakes per week (MWF) and two small bakes (T,TH). Due to the extended shelf life of sourdough breads, product can be sold for two days before staling. Each bake day the baker will bake breads in a deck oven. The oven provides intense, even heat and a controllable amount of steam injection, allowing tremendous control of crust crispness. Everything from soft white sandwich breads to thick crusted, dense savory breads to sweet baked goods can be perfectly baked in this oven. While breads are baking, the baker will begin mixing the long fermenting doughs to be baked off the next day. Labor saving equipment including a dough divider and a bread moulder makes this possible. Hot breads will begin coming out of theoven by 7:00 AM, and all baking will be finished by 10:00 AM.
The storefront will open at 9:00 AM and close at 6:00 PM Monday through Friday. Saturday hours will be 9:00 AM to 4:00 PM for sales only. Part time employees will work the counter and assist with store maintenance during peak hours while the baker is baking. A beverage cooler and coffee machine will encourage convenience sales at the register.
Breadcrafter will economize on bookkeeping costs by handling its payroll duties in house. Year end bookkeeping will be handled by a professional accountant.
The specialty bread market is about to experience enormous growth. Throughout the country small bakeries are appearing at an increasing rate. Chain stores, such as Great Harvest Bread Company, are experiencing tremendous growth by capitalizing on the wholesome appeal of fresh baked loaves. According to the Bread Baker's Guild of America, a trade organization, membership increased 40% between 1994 and 1995. As people become more aware of its healthy nutritional profile, good bread becomes even more attractive.
There is currently only one source for artisan breads in Port Hanover, Toothsome Foods Company, where the proprietor learned to bake. Market tests performed in the summer of 1995 by Toothsome Foods Company showed strong demand for the product, no price resistance and the need for a more frequent and visible presence. As a pilot program with no promotion in the summer of 1995, Toothsome Foods Company was able to sell all available loaves (20 30 per bake, two bakes per week) all summer long. Even without the benefit of window signage or a consistent delivery schedule, Kevin Richards and TFC have developed a loyal following of regular buyers that continues to grow.
The Millwright Bakery in Maple, MI., a similar operation to Breadcrafter, currently bakes 200- 700 loaves a day for wholesale in the Connor City Area. This bakery has been open since November 1995 and has not yet experienced a summer tourist influx. It has stopped taking on new accounts for fear of exceeding its production capacity during that season. Millwright finds the Port Hanover area very attractive, but delivery from Maple is impractical. This summer season will bring Millwright a large influx of cash, and they will almost certainly consider establishing a bakery in Port Hanover if none yet exists.
Breadcrafter will set up its storefront bakery in the Green Lake Shopping Center. The center is conveniently located on one of the busiest arteries to and from Port Hanover. It has plenty of parking and is easily accessible from the road. The shopping center currently contains a successful, higher end grocery store, a successful liquor convenience store, and a donut bakery that also sells country clutter handicrafts. The shopping center is currently a destination for people seeking gourmet foods. These people will appreciate Breadcrafter's products. There is very little market overlap between Breadcrafter and the donut shop, and the two could exist in synergy. Pricing of artisan type breads around Port Hanover currently ranges from $2.50 per loaf (GraineryWhole Wheat) to $5.95 per loaf (Toothsome Foods Pesto Bread). Breadcrafter's products will range in price from $2.25 (Sourdough Baguette) to $4.95 (Pepper Parmesan Loaf).
Grainery food co-op.
Breadcrafter's primary competitor. The Grainery currently has a customer base that regularly buys whole grain breads. These customers are interested in healthy foods, and they will appreciate the attractive nutritional profile of our products. Due to undercapitalization, the Grainery will have trouble responding to the quality advantage our equipment and methods provides. Many potential customers are reluctant to patronize the Grainery, perceiving its patrons and employees as "too liberal". True or not, these customers may feel more comfortable at Breadcrafter. Renee Richards, the proprietor's wife, was formerly a Grainery bread baker. She knows their business well.
Helmut's Pastry Shop
An established bakery specializing in pastries and doughnuts. They have a capable facility. Due to heavy investment in pastry equipment and relatively small bread sales, they are unlikely to react strongly to our presence.
Very similar to Helmut's.
The Coffee Mug
Specializing in donuts, pastries, and country clutter handicrafts. They sell some lower quality breads. Major risk is their location, right next door to Breadcrafter's prospective site. This risk could also be an asset, bringing bakery customers in search of better bread to Breadcrafter.
Large supermarket with in store bakery. Fred's offers nonscratch, relatively low quality breads and pastries at very low prices. Their largest advantage, other than price, is the convenience of one stop shopping. There is some possibility of future wholesale distribution of our products.
Very similar to Fred's
Similar to Fred's and Daley's, but smaller. Higher possibility of future wholesale distribution.
Toothsome Foods Company
Downtown specialty foods retailer. Current employer of Breadcrafter's proprietor. TFC has a small, undercapitalized bread program Due to the absence of the baker, they are unlikely to compete. Proprietor will offer to buy some of the bakery equipment. Future wholesale distribution of contract products is a strong possibility.
Breadcrafter's production capacity will be an advantage over the specialty stores. Product specialization will be an advantage over the pastry shops and supermarkets. Breadcrafter's product quality will be an advantage over all local competitors.
Breadcrafter will sell its products to new and repeat customers from its storefront in the Green Lake Shopping Center, located on the busy stretch of M-17 between Port Hanover and Crescent Heights, Michigan. A large, tasteful, storefront sign will catch the attention of passing motorists. The smell of bread as it comes from the oven will bring customers in from the parking lot. Breadcrafter will offer a sample of fresh baked bread to anyone who comes into the store.
Breadcrafter's products will be truly unique in the marketplace. The look, feel and taste of its breads, when compared with the competition, will underscore their quality and value. Many of the products, such as Pepper Parmesan Bread and Sourdough Baguettes, will not be available anywhere else. Breadcrafter will also actively encourage customer satisfaction. Our product line will react to the needs and desires of the customer, thereby encouraging repeat and word of mouth sales. As a small hands on facility Breadcrafter will have the freedom to react quickly and accurately to changes in the market. Due to its uniqueness and convenient location, Breadcrafter will become a destination for food lovers.
Printed advertisements, which will run opening week, will highlight bread as an everyday product, to be purchased fresh on a weekly or daily basis. More printed advertisements will run Labor Day weekend and during the Christmas season. Costs for these advertisements will be approximately $200 each.
The major risk to any Port Hanover area retail operation is the seasonality of the customer base. Breadcrafter will address this problem by opening at the height of the lucrative summer season. This will give the company a good supply of working capital to help with the startup period. The company will market itself primarily to the year round population. Contract products prepared for Toothsome Foods Company will bring in cash during the slow fall season. Unless strong demand shows a need, labor will be eliminated in the slower seasons and advertising will be minimal. Depending on available cash after Christmas, Breadcrafter will contemplate adding a sandwich bar to serve local shoppers and employees.
Breadcrafter will budget $9,800 in cash reserves as a cushion to help weather the startup period.
(Personal Income Statement removed for privacy.)
Start Up Costs
The compnay is in the process of securing financing for startup. The proprietor currently has $20,000 from private sources and is seeking $50,000 in additional bank loans.
Two part time employees will be hired to start working on opening day. They will be retained until Labor Day weekend unless strong sales show a further need for them. In the fall, winter and spring, the proprietor and his wife will be the only staff required. Employees will be paid $5.50 per hour, and will work a combined total of 30 hours per week. Wage expenditures will be $707.00 a month with additional payroll taxes running $71.00, for a total expenditure of$778.00.
The Green Lake storefront currently under consideration rents for $1050 a month.
Heat and Electric bills for Jordan Galleria, a downtown storefront of approximately the same dimensions required by Breadcrafter, pays $225.00 at the height of the winter heat season. Taking into account walk in and reach in cooler use, a figure of $350.00 is a reasonable estimated monthly average.
The bread oven will be run four hours per day on busy bake days. Conversations with other bakery owners have indicated that a 4 deck oven consumes $4 of gas per hour, for a total of $343.00 per month at maximum capacity.
A total figure of $725.00 per month is a reasonable estimated monthly average.
Breadcrafter will run an advertisement in the Port Hanover News Review during opening week. Another advertisement will run Labor Day weekend. Total advertisement expenditures will run $200 per month. The News Review is known to do spotlight stories on new Port Hanover businesses and Breadcrafter will take advantage of this publicity.
Advertising expenditures will be kept to a minimum in the fall, winter and spring. The company will rely on community service functions, liberal sampling, and word of mouth to reach new customers.
Repair and Maintenance
The estimated maintenance cost for the first month is $500.00. From there it gradually diminishes to $200 a month for the remainder of the year. After the first of the year maintenance estimates are reduced to $100 a month.
A Business Owner's Policy, covering contents, liability, and some loss of income, will cost $400 $500 a year for Breadcrafter, as quoted by Sam Williams of Port Hanover Insurance. Worker's Comp will run $2.25 for every $100 paid. Breadcrafter has budgeted $50 a month in general insurance and $20 a month in Worker's Comp. Health Insurance premiums for the proprietor and his family will run $250 per month.
Taxes and Licenses
The company has budgeted $150 a month on miscellaneous taxes and licenses.
General supplies will consist mainly of bread bags which cost $.05 each for paper and $.03 each for plastic. Bag material, which affects the quality of the crust in storage, will be chosen by the customer. These prices have been included in the cost of sale of each loaf. Cleaning and maintenance supplies will total no more than $50 per month. Breadcrafter has budgeted $125 per month as a conservative figure.
Professional fees after startup will be kept to a minimum. The proprietor will perform all the necessary filing and bookkeeping chores required except year end tax filing and calculation of depreciation. The company has budgeted $325 in January and
$325 in March to cover these needs.
Breadcrafter has budgeted $120 per month to cover miscellaneous expenses.
Proposed Baking Materials Requirements
Proposed Equipment Requirements
Bread Cost/Profit Analysis
Beverage Cost/Profit Analysis
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Jolly's Java and Bakery
Ownership & structure.
JJB is incorporated in the state of Washington. It is equally owned and managed by its two partners.
The company intends to hire two full-time managers, one pastry chef and 3 part-time baristas to handle customer service and day to day operations.
Mr. Austin Patterson has extensive experience in sales, marketing, and management, and was vice president of marketing with both Jansonne & Jansonne and Burper Foods. Mr. David Fields brings experience in the area of finance and administration, including a stint as a chief financial officer with both Flaxfield Roasters and the national coffee store chain, BuzzCups.
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How to Create a Bakery Business Plan: Guide and Template
By Debra Weinryb
Are you a talented baker looking to start or grow your business? A bakery business plan is a great place to start. A good business plan will help you outline all the steps necessary to make your bakery successful – like hiring a talented management team, building an effective marketing plan, and securing the technology you need to boost sales, like a bakery POS .
After you’ve decided on the type of bakery you want to open – whether that’s a bakery cafe, food truck, specialty bakery, or another type – it’s time to get into all the fine details.
Your business plan is a crucial part of starting your new restaurant because it will help you structure your ideas and goals, what types of products you will sell, what your marketing strategy will be, how your business will operate, and so much more.
To help you get started, we’ve covered the key elements of how to write a bakery business plan in a section-by-section format. We’ll explain everything from how to describe your bakery offerings and menu items, to tips on how to make financial projections to attract potential investors. Follow along by downloading our bakery business plan template and customize it to fit your needs.
In this article, we will cover:
- Why you need a bakery business plan
- How to write a bakery business plan
- 7 bakery business plan sample sections
Bring your bakery concept to life with this customizable bakery business plan template.
Why You Need a Bakery Business Plan
There are many benefits to writing a bakery business plan. First, it helps you better evaluate your business ideas and goals through research and documentation. Second, a bakery plan helps you build a structure for identifying next steps to bring your vision to life. You can always refer to your business plan to stay on track to achieve the goals you’ve set out.
Writing a business plan for a bakery will also help you figure out what you need to grow your company. You’ll gain a clear understanding of the equipment, supplies, and capital you will need to make your dreams a reality. By making a strong and well-thought-out plan, you’ll be more likely to secure funding from banks, potential investors, and lenders.
Look at any bakery business plan sample, and you will see how much information can be conveyed to your reader in an easy-to-understand manner. You might be surprised by all the components you overlooked! Now’s the time to think about improving your bakery.
How to Write a Business Plan for a Bakery
Writing a business plan for a bakery is no easy feat. You have to think about all the various aspects of your business – like how often you need to order ingredients, how you will market your business to reach new customers, and the amount of staff you will need to hire. Essentially, you’re putting together a manual for your bakery’s success, and it needs to convince investors and new business partners to support your business.
To help you get started, we put together a free bakery business plan template . Acting as a roadmap, our template provides step-by-step instructions for how to think through all of the key elements of a bakery business – including a market analysis, operations plan, marketing and PR plan, financial analysis and projections, and more. You can use the tips in each section to learn how to write a bakery business plan.
Bakery Business Plan Sample Sections
To help you fill in your own business plan, here we’ll cover what you need to include in each section.
1. Executive Summary
Your executive summary is the most important part of your business plan, even though it’s usually written last. The goal of this section is to give an overview of what will be discussed in your business plan and to entice readers (or investors) to learn more.
You will describe your bakery’s mission statement, proposed concept, your target market, and explain how the uniqueness of your bakery will ensure your success. For example, you can explain any special traits of your team that will help your bakery grow, like exceptional customer service or attention to detail when preparing pastries for guests.
Additionally, you will offer financial highlights of how you plan to use funding from potential investors. Perhaps you will spend money on the design of your bakery, purchasing initial inventory, or covering overhead expenses. You can also include a chart to show how potential funding will help increase your bakery’s revenue over time.
While this section is important, remember to keep it to the point. Aim for around 600 words to entice the reader to keep reading the rest of your business plan. You can also check out a bakery business plan sample for inspiration.
2. Company Overview
Your company overview section presents a summary of your bakery’s history and why you opened it in the first place. For example, you can write about how your bakery is different from your competitors – such as your team’s impressive credentials, or how you’re the only business in your area selling gluten-free and vegan baked goods.
You should also include important details like your bakery’s legal structure, founding team members, location, and milestones to date. Milestones are goals that you met, like opening your first bakery location, launching a website, or hiring your first head baker.
Lastly, mention the type of bakery you plan to run. Your service type will be important as you write your bakery plan, helping define the space and equipment you need, and how you’ll interact with guests. For example, if you run a bakery cafe, you’ll need a sit-down area, as well as a front-of-house and back-of-house area. If you operate a food truck bakery, you’ll need to buy or rent a truck so your bakery will be able to move around.
3. Market Analysis
This section focuses on the customers that you plan to serve. For example, do you plan to bake cakes and pastries for weddings? What about school events, birthday parties, or private events? Maybe you’re a neighborhood bakery that relies on foot traffic from your regular customers?
If you rely on grocery stores, farmer’s markets, or restaurants to sell your baked goods, you can mention that too. Supplying products like breads, biscottis, brownies, bagels, or other baked pastries to restaurants will also help you grow your customer base faster.
After you’ve defined your target market, you can go into more detail by describing your customer personas:
- Is your target market working professionals or students?
- Are they thrifty or willing to spend on a specialty drink?
- Does the quality of ingredients matter to them?
- What about the customer service they receive?
Once you’ve outlined your target market’s unique requirements, make sure you write how you will meet each of their needs.
4. Business Offerings and Menu
The Business Offerings and Menu section focuses on what type of baked goods you will offer customers. Whether you offer fresh bread, cookies, or cakes, discuss every detail about what you plan to sell. Make sure to provide an explanation for why you sell these products, and how your delicious goods will drive foot traffic to your bakery.
Remember to always write in layman’s terms so even if someone is unfamiliar with your bakery, they can still get excited about your products. To do so, avoid industry jargon, buzzwords, or technical knowledge that might not be common knowledge to investors.
Here are a few questions you can answer when writing out your business offerings:
- Will you be reinventing recipes, or creating brand new products?
- Will you include specialty items like nut-free or custom-made products?
- Where will you source and buy your ingredients and equipment from?
- How do your baked goods compare to others currently on the market?
5. Operations Plan
This section is where you expand on your business goals, including what the management team will look like and what technology you’ll need.
For your team, you should provide details like whether you will be hiring full-time or part-time staff, what their roles will be, and at what hours your bakery will be open. For technology, you can list restaurant equipment that will help you get your job done well every day. For example, you might need mixers for blending batter, a stone deck oven for making bread, and a refrigerator for storing eggs, milk, and other important items.
You can also list operational milestones that you want to achieve over the coming months to ensure your bakery operates successfully. For example, you can mention when you want to finalize your lease agreement, begin construction for a bakery redesign, or mark the date of your bakery’s grand opening.
6. Marketing and PR Plan
You’ll need a solid marketing and PR strategy to enter your target market and attract new customers. In this section, you will explain the steps you plan to take to reach potential guests.
Aside from coming up with a catchy bakery name, there are many ways you can draw in an audience.
Social media platforms can be used to develop unique and fun posts about daily bakery specials, or tease the latest products that are “coming soon.”
Asking customers to leave a review and spread the word is an effective way to market your bakery. If your baked goods speak for themselves, you will likely benefit from this marketing strategy.
Making sure you’re found on Google is imperative for a bakery. You’ll definitely want people to find your storefront, and not your competitors. By working on a search engine optimization (SEO) strategy, you can be found when people type into Google terms like “local bakery” or “bakery near me.” Keeping your website up-to-date, accessible, and user friendly can also increase engagement.
7. Financial Analysis and Projections
For the last section of your bakery business plan, you will focus on the financial projections for your business. You’ll outline the potential costs for ingredients, equipment, technology, bills, and salaries that will keep your bakery running. For example, costs might include pastry products, like flour, sugar, butter, and cream. They may also include baking materials like cake pans, stand mixers, rolling pins, and measuring cups.
You’ll also include several documents in your financial analysis, such as an income statement, balance sheet, and a cash flow statement. After listing all of the costs of your bakery design, inventory, and other working expenses, you will then project the time it will take to achieve a profit. Remember to keep your numbers realistic, so you can let investors know how you could actually use their support to grow your business.
A bakery business plan is the best way to start or grow your business – it helps finetune your business concept and identify your target market. If you look at any bakery business plan sample, you will see many important sections that help guide a bakery to achieve success.
Once you have finished writing your bakery plan, you can refer back to it on a regular basis to make sure you are keeping up with the goals you set. Remember, that you’ll need to update your document if your market should change. For example, if customers start demanding more gluten-free products, you can update your plan on how your bakery will meet this requirement.
While writing a bakery business plan can feel tedious at times, remember to think of it as a fun and creative project. There are so many ways to open or expand your bakery business! If you need inspiration, use our bakery business plan template that can be customized to meet your specific business needs.
Debra was a Content Marketing Specialist at TouchBistro, writing about the latest food and restaurant industry trends. In her spare time, Debra enjoys baking and eating together with family and friends.
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Bakery Business Plan Outline - Everything You Need to Know
Creating a bakery business plan outline allows a potential business owner to analyze each area of the company from the smallest to the largest details. 3 min read
Creating a bakery business plan outline allows a potential business owner to analyze each area of the company from the smallest to the largest details.
Information for Writing a Bakery Business Plan
An executive summary ranges from one to four pages depending on the what's involved with the individual business. The goal is to pique the reader's interest, which could lead to face-to-face meetings with potential investors.
Detailing what the focus of the business is, why it will be successful, and its potential growth serves as an introduction to investors. What you write should reflect your most current business model.
In the business plan , include information such as the bakery's location, the space needed to operate the business, the anticipated cost of building space, an estimate of equipment costs, company goals, and potential profits.
Tips to consider include:
- The first paragraph should "hook" the reader, which means enticing them to continue reading.
- Use clear and concise language without going overboard and degrading the content level and detail. Use bullet points, when applicable, to make reading easier and faster.
- Discuss the core strengths of your business, such as a strong management team, an exceptional product line, or a service not provided in your area.
- Know your target audience. Use language that speaks to individuals based on their profession and educational background. In other words, make it easily understandable.
- Change, tweak, and update the executive summary as needed to keep it interesting and on target.
- Stay realistic with statements and offer tangible facts. Avoid empty claims that can't be proven.
- Be authentic in the summary and let your passion for the business show in what you present.
Company Overview and Description
Write an overview of your business. In it, explain your reason(s) for wanting to open a bakery. Outline the finer details of your plan and any ideas you have for future development. Your overview should answer these questions:
- What is your business niche?
- Is there a specific theme for the bakery?
- Who is the audience the bakery is targeted on?
- Are there any special promotions or recipes?
- What differentiator will you use for strategy?
- What is the legal structure of the business?
- What are the short and long-term goals for the business?
When researching market analysis information for your area, consider the demographics, such as the age group and income level of your target audience. It's also important to learn about any trends, such as seasonal developments that could affect your business and how much people generally spend on eating out in your area.
Also, research your competitors and learn from things they've done to be successful. Determine how you can use this information to take your business one step further on the road to success. Finally, learn about the codes and regulations that apply to your business and how you'll implement them to be in compliance.
In this section, describe your product(s) and how they'll be supplied to your customers. Be detailed. Include why you've chosen to sell these items and how these particular products can help your business.
Details on bakery items should include any specialty items, whether it's a new product that can be patented, if the items are culturally specific, plans to develop new recipes in the future, events or situations that could cause the business to decline, and information on where you'll be buying ingredients and equipment.
How your business will be organized and managed is an integral part of the business plan. This section will lay out the structure for the management of the business. It will also include any information about other partners involved with the business.
A management plan is a visual tool to prove your qualifications to potential investors. Questions to address include:
- Are there other partners?
- What percentage of the business will yo own?
- How many employees are there?
- Will you be baking or working behind the scenes?
- Will you retain an accountant or financial advisor?
- Are others involved in day-to-day decision making?
Marketing and Public Relations Strategies
Develop an advertising strategy, including public relation events, to target your market. Consider social media, flyers, and newspaper adverts to promote your business.
Detail the operational costs and estimate a timeframe for turning a profit. Most importantly, be realistic.
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