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
Operations Plan
The operations plan for Baked Bee Bakery is relatively simple as its overhead and cost is small. The functional roles for its employees are as follows:
Operation Functions:
- Janette and Mary will be opening and operating the bakery the 6 days a week it will be open. They will oversee the part-time employees, manage inventory and scheduling, as well as all of the administrative functions.
- 2 – 3 part-time employees per shift 6 days a week to assist with customer service and baking.
Milestones:
Baked Bee Bakery aims to open in the next 6 months. The following are the milestones needed in order to obtain this goal.
3/15/202X – Finalize lease agreement with retail strip center space
4/1/202X – Begin construction of bakery leased space
6/1/202X – Social media and advertising campaign begins
7/1/202X – Final walk-thru of construction and build-out of leased premises
7/15/202X – Ordering and pre-stocking of inventory and first phase of custom orders
8/1/202X – Grand Opening of Baked Bee Bakery
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Writing an operational plan for a bakery business
Table of Contents
Determine your objectives
Decide on a location, list your supplies and equipment , outline your structure , discuss your finances , accounting tools , determine a timeline , simplify your bakery finances with countingup.
If you plan to start a small bakery, it’s important to think about how you’ll turn your business idea into an operational success. An operational plan for a bakery business will help you determine what you need to make it run smoothly.
An operational plan details the physical requirement of running your business. It describes how you’ll organise your business day-to-day, achieve your tasks, and earn a profit. But if you’re not sure how to write one, we can help.
This article covers how to write an operational plan for a bakery business, including:
- Objectives
- Location
- Supplies
- Finances
- Timeline
The first section to add to your operational plan is the bakery’s objectives . This part is essential to determining what to focus on and work towards with your business. List some short-term, medium-term, and long-term objectives.
To make your objectives strong and manageable, use the SMART method, meaning they’ll be specific, measurable, achievable, relevant, and time-based.
With your bakery business, short term objectives might be to source and prepare a bakery shop and design a strong website. Then, you could create a medium-term objective to sell more bakery products and develop an online shop with shipping. Long term goals could be to expand your shop to new locations or offer baking lessons or catering.
Next, you’ll need to outline the logistics of your business. What location will you use for your business? Provide an address if you already have one, and if not, outline where you’ll open your shop and why. If you plan to start a bakery from home, outline where and how you’ll sell your goods.
In this section, also list the operating hours of your business. Which days and what times will your shop be open to customers? You can also outline your baking hours or time spent managing your operations and finances after shop hours.
Also, consider how the shop will run. Will you offer seating for customers, or will it be only takeaway? Will you also offer drinks or just baked goods? Will you supply your baked goods to other cafes or restaurants?
Another essential part of your operational plan for a bakery business is outlining what you’ll physically need to run your small bakery. For example, aside from a shop with a kitchen, you’ll likely need bakery equipment like:
- An industrial oven
- An industrial refrigerator
- An industrial stand mixer
- Baking supplies and equipment (mixing bowls, measuring cups, whisks, spatulas, pans, baking trays etc.)
- Proofing cabinets
- Break slicers
- Bakery cases
- Plates and display trays
- Takeaway packaging
Aside from sourcing the right equipment, consider what supplier you’ll use for necessary baking ingredients. These ingredients may vary depending on your recipes and the bakery goods you sell.
But generally, you’ll likely need a food supplier for:
- Sugar
- Butter
- Flour
- Yeast
- Bicarbonate soda
- Bicarbonate powder
- Spices
As you outline what you’ll need, consider how you’ll manage this supply chain and organise your inventory . It’s crucial to stay on top of what you have and what you need to continue to make baked goods and meet your customer demand.
You might want to keep backups of dried goods that won’t go bad, like flour and sugar. This way, if there’s a shortage, it may not negatively impact your business.
Another thing to include in your operational plan for a bakery business is how you’ll structure your business and organise the daily workload. In this section, think about which baked goods you’ll sell and how much you’ll charge for them. Also, outline how you’ll accept payment from customers and manage your shop and baking needs.
Next, outline what it’ll cost to produce your baked goods and run your business overall. Consider each part of your operations and much money it’ll need.
First, think about startup costs, essential expenses to getting your business running. These costs could include necessary equipment, registration fees, marketing, and website building.
Then, you might outline the rent, electricity, water, and wifi charges of running your shop. Also, calculate the cost of your ingredient orders and how often you’ll need to restock.
Once you know the money you’ll need, consider how you’ll get it. So, you might include your plan to secure funding through an investor or lender.
On top of this, you’ll need to consider your financial accounting methods. It’s crucial to maintain accurate business records, which you can do by opening a business current account and using modern accounting software, like Countingup.
Countingup combines a business account with accounting software, making it easier to manage your finances in one place. You can save time with automatic features like automatic expense categorisation and cash flow insights. These tools help you track your spending and the cash coming in and out of your business over time. .
Consider the timeline of your business operations to give you structure and purpose each day. For example, you might outline the typical day at your small bakery, including when you get into the shop, bake your goods, and open and close the shop.
Discuss how you’ll juggle your tasks and organise your calendar to manage your time well . When will you spend time organising your bookkeeping or ordering from suppliers? With the right business management tools, like Google Workspace , you can organise your contacts, projects, and calendar altogether.
In summary, setting up your bakery’s operational plan will help you structure your business for success. Just be sure to outline the who, what, where, and how much so you have the essential detail to make it happen.
Countingup is the business current account and accounting software in one app. It automates time-consuming bookkeeping admin for thousands of self-employed people across the UK.
Save yourself hours of accounting admin so you can focus on growing your business.
Start your three-month free trial today.
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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
Executive summary.
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.
Company Overview
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
Industry Analysis
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.
Customer Analysis
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.
Competitive Analysis
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.
Marketing Plan
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.
Operations Plan
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.
Management Team
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.
Financial Plan
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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With Growthink’s Ultimate Bakery Business Plan Template you can finish your plan in just 8 hours or less!
Click here to finish your bakery business plan today.
OR, Let Us Develop Your Plan For You
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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 PDF template here . This is a business plan template you can use in PDF format.
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.
Other Helpful Business Plan Articles & Templates
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
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.
SEO Marketing
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 is the Content Marketing Specialist at TouchBistro, where she writes about the latest food and restaurant industry trends. In her spare time, Debra enjoys baking and eating together with family and friends. Her favorite creations include chocolate cake with Italian meringue buttercream, mile-high lemon meringue pie, and fresh naan with tahini sauce.
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- Business Plans Handbook
- Business Plans - Volume 05
- Bread Bakery Business Plan Business Plan
Bread Bakery BUSINESS PLAN
BREADCRAFTER
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.
EXECUTIVE SUMMARY
The company.
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).
COMPETITION
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.
Twin's Bakery
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.
Fred's Markets
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.
Daley's Supermarkets
Very similar to Fred's
Taylor'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.
OPERATING COSTS
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.
Advertising
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
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
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.
Miscellaneous
Breadcrafter has budgeted $120 per month to cover miscellaneous expenses.
Proposed Baking Materials Requirements
Proposed Equipment Requirements
Miscellaneous Requirements
Bread Cost/Profit Analysis
Beverage Cost/Profit Analysis
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Bakery Business Plan: How to Write a Bakery Business Plan
If you are considering starting a bakery business or expanding your bakery store then a writing bakery business plan is a great place to start. Opening a bakery business is no easy feat. It takes more than an extraordinary baking talent to run a successful restaurant or bakery business and work with seasonality in business .
From having a great bakery website to creating the perfect bakery marketing strategy to understanding your sell through rate , a lot of things go into launching a bakery business. A bakery business plan accounts for all bakery operations and streamlines your business process flow .
Key Takeaway - Having a bakery business plan helps you create a blueprint for your business. You can document your bakery ideas, identify the next steps to execute these ideas, and make sure you are on track to accomplish your ideas with a business plan.
So, how do you write a business plan for a bakery business? In this guide, we’ll review each section of a bakery business plan and some action plans for a bakery business.
How to Write a Bakery Business Plan
A well-written business plan will help you stay organized and hit the ground running when you start your business. With a bakery business plan, you can analyze every detail of your business idea and work towards achieving it.
Writing a business plan offers a lot of benefits for your business. Even if you already started your bakery business, it’s not too late to write your business plan. This will help in your business expansion efforts.
It is important to be as detailed as possible. Your bakery business plan will serve as a manual for your bakery business, make sure it is clear and easy to understand. Before you get started, you have to consider the type of bakery business you want, your ideal niche market, and if you need to secure funding from the best banks and investors.
Asking vital questions is crucial to creating a solid plan. You can even check other bakery business plan samples online for ideas. Let’s look at how to write a business plan for your bakery business.
8 Sections of a Bakery Business Plan
What sections should a bakery business plan have? When writing a business plan for a bakery or food business, include these sections:
- Executive Summary
The executive summary is an overview of your plan. Although the executive summary is the last thing you’ll write for your bakery business plan, it is the first thing you’ll present to potential investors.
Your executive summary describes your bakery’s mission statement, concept, why your bakery is unique, and how you plan to make it a success. You should also include your expected growth projection.
An executive summary should be about a page in length. It should answer the following questions:
- What does your bakery do? Will you sell baked goods online ? Will you have a baking subscription box ?
- What is your brand concept?
- Who are your target customers?
- Why will your audience love your brand?
- How is your bakery different from other bakeries?
- How do you plan to promote your bakery?
- What bakery technology will you use?
- How much money do you need to get started?
- What are your current and projected financial profits?
- Who are your partners?
- What are your overall goals and objectives?
- Where will your bakery be located?
Once, you have these questions answered, you can create a powerful executive summary.
Tips for Writing a Bakery Executive Summary
- Begin with a strong open statement: The first paragraph should introduce the executive summary and explain your bakery idea.
- Be clear and concise: Use clear and concise language to make it easy for investors to read your summary. Do quality checks and revise your written summary.
- Describe your core strengths: Include details about your core strengths and what makes your business and products unique.
- Prepare your summary for different audiences: If you plan to present your business plan to investors, it is important to tailor your executive summary to fit the audience.
- Avoid superlatives or uncheckable claims: Stay realistic with your summary. Avoid claims such as the best wedding cake in the world. Provide numbers and figures for each claim in your executive summary.
- Company Overview and Description
This section should provide an in-depth description of your company including history, ownership structure, and management team. It should outline your vision and mission statement as well as your unique selling proposition.
The company description is the first thing you’ll write when creating a business plan for the bakery. It is in this section that you’ll dive deeper into the bakery ideas you will summarize in the executive summary.
You can talk about your team, including key members and their salaries. It is also a good idea to list your short- and long-term goals. Make sure these goals are measurable. You can highlight some eCommerce metrics and key performance indicators, as well as the timeline for achieving the goals.
When writing your company description, answer the following questions:
- What type of bakery will you open? Cakes? Pastries? Gluten-free baked goods? Online bakery?
- What theme or bakery design will your bakery have?
- What is your unique selling proposition ?
- What are your goals?
- Do you have a special recipe?
- What is your legal structure?
- What is your business structure?
Tips for Writing a Company Overview
- Start with your elevator pitch: Your company overview should begin with an elevator pitch. Include a few sentences about your business and what you do. Keep it short and simple.
- Stick to the basics: Try not to write too many details in this section. While it is important to answer overview questions, make sure you stick to the basics.
- Write with a structure: Your reader should be able to take a glance at your overview and understand the structure of your business plan. You can create sections for relevant aspects of your company overview.
- Show passion and interest: It is important to show passion for your business in your writing. Your excitement will keep the reader interested and engaged as they go through your business plan.
- Market Analysis
Your market analysis will describe your potential niche market , how big it is, and if there’s a market opportunity for your business. You can highlight trends affecting your industry, the buying habits of your target market, and how you will fit into the existing market.
You must demonstrate your knowledge of the food and beverage industry in your market analysis. You should include details about the competitive landscape. Additionally, identify your strengths, weaknesses, opportunities, and threats.
When writing your market analysis, consider the following:
- Demographics. Who are your customers? Can they afford your products?
- Trends. Any seasonal trends? Are your target customers willing to spend on specialty baked goods? Will the type of wholesale restaurant supplies and ingredients you use matter to them?
- Competitors. How can you stay ahead of the competition? What strategies are your competitors using to stay ahead? Can you be a contender in the market? What are my competitors’ strengths and weaknesses?
- Regulations. What regulations will apply to your bakery business? How will you comply with these regulations?
- Pricing. What will be your pricing structure? Will you offer wholesale vs retail price?
Tips for Writing a Market Analysis
- Conduct in-depth research: You can use the internet to get raw data about your market. For instance, demographic data can be gotten from the U.S Census Bureau’s website. You can also do short in-person surveys in your intended location.
- See through the eyes of your target customer: Looking at your product from the perspective of your target market will help you see if you have an opportunity or not. What problems need to be solved? What will your bakery offer as a solution to these problems?
- Use visual assets: Market analysis is about numbers, metrics, and statistics. You can use graphs and charts to illustrate these numbers.
- Business Offerings
This section will list your products and services. Whether your bakery will focus on freshly baked pastries or sweet cakes, you can go into detail about your offerings here.
You can also describe if you plan to be a wholesale distributorship to restaurants or offer ghost kitchen services. Make sure to explain why you want to sell these products and services. It will be a great idea to mention how these offerings will drive foot traffic to your brick and mortar bakery store.
When writing your business offerings, answer the following questions:
- Will you offer custom-made products or specialty items?
- Do you make new recipes? Will you patent these recipes?
- Are your offerings new to the area you plan to sell in?
- Where will you buy your restaurant supplies from? Who will be your wholesale restaurant food distributors ?
- How do your offerings compare to others in the market?
Tips for Writing your Business Offerings
- Describe the products: Answer questions about who can use the product, what ingredients will be in the product, and why your target market will buy the product.
- Do a product comparison: Compare your offerings with what your competitors offer. You can use visual aids or tables to show differences and what will make your offerings unique.
- Explain the ordering process: It is important to explain your ordering process. Will you receive online orders? How will your customers buy the product? What are your delivery options? Your order management depends on your offerings and can have several stages. Make sure to explain each stage.
- Management and Organization
Your operations plan explains your team's organizational structure and what bakery technology you’ll need to run your business. Give details about your eCommerce team structure and incorporation.
This section should include details about your management team. You can use an organizational chart to show the different roles and responsibilities of each team member.
- Operations and Logistics
This section outlines how your bakery will create, sell, and deliver products. You want to address the following in this section:
- How will you get suppliers? Explain where you’ll buy wholesale produce, ingredients, and restaurant equipment. There are several options, from dropshipping wholesale suppliers and food wholesale distributor s to local farmers and large-scale distribution warehouses.
- What is your production plan? Describe your production process. Will you dropship your products? How will you handle a busy season?
- Where will your team work from? Describe your facilities and if your physical retail store will be different from the bakery.
- Which equipment will you need? List the tools and equipment you need to get started. You should also explain the operational tools and bakery technology you will use to manage your bakery. Include business tools like your restaurant POS system , order management tools, inventory management systems, and wholesale distribution as well as wholesale distribution management software .
- How will you handle shipping and order fulfillment? Explain if you’ll be handling shipping and order fulfillment in-house or via a third-party fulfillment provider.
- Marketing Plan
Every business needs a solid marketing plan. In this section explain how your bakery will attract new customers and PR strategies to enter the market. It is important to build a strong brand presence and this section will highlight how you plan to do it.
Your market analysis will help you identify your target market and what appeals to them. When writing your marketing plan, explain these points.
Answer these questions when writing your marketing plan:
- Which marketing channels will you use to reach your target customers?
- What is your market entry strategy?
- Will you run promotions and paid advertising campaigns?
- What are your marketing goals?
- Will you promote certain products over others?
- Will you have a bakery website?
- How will you grow your online presence?
- How will you measure your goals?
- Financial Analysis and Projections
This is the final section of your bakery business plan. This section will focus on the financial projections and eCommerce accounting processes for your business. Describe the estimated costs for ingredients, bakery equipment, bakery technology, and bills.
For instance, you can include the cost of wholesale dairy , wholesale coffee beans , wholesale meat , cake pans, and even measuring cups. Your income statement, balance sheet, and cash flow statement should also be included.
It is important to keep the numbers real. Your financial plan will help you figure out how much you need to launch or expand your business.
Frequently Asked Questions About Bakery Business Plan
Writing a bakery business plan is an important step in getting investors, staying organized, and expanding your business. Let’s answer a few common questions about writing a bakery business plan.
What are Bakery Items?
Bakery items include bread, cookies, cakes, pies, pastries, muffins, and other baked goods.
How do you Manage a Small Bakery?
Here are some tips on how to run a small bakery business:
- Write your bakery business plan
- Pay attention to high demand goods to sell
- Invest in new bakery technology
- Display freshly baked goods all the time
- Advertise and promote your business
- Launch loyalty programs and giveaways
- Update your menu regularly
What are the Main Types of Bakeries?
A bakery can either be retail or wholesale. Retail bakeries sell direct to consumer s and wholesale bakeries sell to restaurant businesses, grocery stores, and cafes.
Get Ready to Launch
Writing a bakery business plan is the first step to running a successful bakery business. Remember, your bakery business plan is a manual that will help you keep track of your business goals.
You can always refer back to it and update it as the business grows. Creating a business plan is also a crucial step to getting investors impressed with your business ideas. So, make it count!
The World's Leading Business Plan Template Directory
Bakery Business Plan Template [Updated 2023]
Bakery business plan.
If you want to start a bakery or expand your current bakery, you need a business plan.
The following sample bakery business plan gives you the key elements to include in a winning business plan. It can be used to create a business plan for a dessert bakery, bread bakery, cake bakery, and other businesses that sell baked goods.
You can download the bakery business plan template (including a full, customizable financial model) to your computer here.
Bakery Business Plan Sample
Below are links to each of the key sections of a business plan template for a bakery to help you write your bakery business plan:
- Executive Summary – In the Executive Summary, you will provide a high-level overview of your business plan including a brief description of your company, your products or services, your target market, and your business goals.
- Company Overview – The Company Overview section will include your bakery business concept, company history, bakery location, mission statement, and ownership structure.
- Industry Analysis – In the Industry Analysis, provide an in-depth look at the bakery industry including trends, competition, and growth potential.
- Customer Analysis – The Customer Analysis is where you will describe your ideal customers including their demographics and buying behaviors.
- Competitive Analysis – In the Competitive Analysis, you will compare your business to your closest competitors and provide an analysis of their strengths and weaknesses.
- Marketing Plan – In the Marketing Plan, you will flush out your marketing strategy for reaching your target market. This should include your marketing mix, your sales and distribution strategy, and your pricing strategy.
- Operations Plan – Your Operations Plan will include a description of your bakery, your bakery equipment, your production process, and your talented baker.
- Management Team – The Management Team section will include descriptions of your co-founders and key management members.
- Financial Plan – A comprehensive Financial Plan will include realistic financial projections and financial statements including an income statement, balance sheet, and cash flow statement.
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Bakery Business Plan Outline
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How to Write a Bakery Business Plan: Your Recipe for Success
- by Alexandra Sheehan
- Starting Up
- Dec 5, 2021
- 11 minute read
The rise of the gig economy , the COVID-19 pandemic, and advances in technology have all contributed to more people working from home and even pursuing their own home business ideas . Entrepreneurs across the globe continue to find ways to leverage their unique skills to set up an income stream. One of those skills is baking.
If you consider yourself a talented baker with entrepreneurial dreams, a bakery is an excellent food business idea you can do from home or from another brick-and-mortar space. But before you launch into how to start a food business with your baking prowess, it’s important to write a bakery business plan.
Below, we’ll take you through your bakery business plan , section by section, using this business plan guide as a base. Follow along by downloading our business plan template and modifying it to fit your needs.
Table of contents
The importance of your bakery business plan
How to write a bakery business plan, launch your bakery business with shopify.
Not every business starts out with a formal plan, but those that do have an easier road to success. There are a few key benefits to writing a bakery business plan:
It objectively evaluates your business ideas . Researching and documenting your ideas can help you take a step back and see if there’s really an opportunity there.
It builds a blueprint for moving forward. Writing a business plan can identify the next steps you need to execute your idea. You can keep referring back to your business plan to make sure you’re on track for your original vision.
It figures out what you need. Listing exactly what you need to start your bakery business can give you clarity on what you need to do to make it a reality.
It helps you get capital. You won’t be able to secure funding for your business , whether from investors, lenders, banks, or even through crowdfunding , without a business plan for your bakery.
Executive summary
The executive summary section of your bakery business plan is a summary of the document and its contents. Remember, this is meant to highlight what’s to come in your business plan, not serve as a summary of your business idea.
The executive summary should be about a page in length and answer the following questions:
- What is your brand?
- What does your bakery do?
- What does your bakery want to do?
- What is the following text about?
- Why should your audience care?
- What highlights should readers be excited about?
- What do you sell and how is it different from your competitors?
- Who are your customers?
- What is your marketing strategy?
- What is your current and projected financial state?
- How much money do you need to get started?
- Who is involved in the bakery?
Company description
This part of your bakery business plan should drill down further into your business idea. Here, you’ll want to identify your bakery’s business structure — sole proprietorship, limited liability corporation (LLC) , general partnership, etc.—and business model.
You’ll also use this section to talk about the baked goods industry and about your specific niche —things like keto-friendly, gluten-free, cakes; catering; frozen desserts; savory items, etc. Cape Whoopies , for example, sells gourmet whoopie pies made in Maine. Its bakery business plan would make note of that in the company description section.
The company description should also outline your vision and mission statement and your value proposition . Your vision and mission statement encompass what you hope to do with your bakery, and your value proposition sums up why people would want to buy from you. Pastreez shares its mission and vision statements on its About page:
Learn more: The Secret Recipe to Scale a DTC French Bakery
Use this section to talk about your team, including key personnel and their salaries. La Monarca , for example, would identify its two founders as well as any board members or employees.
Finally, list your short- and long-term business goals. Your business goals should be quantifiable and measurable, eliminating objectivity. You’ll also want to put an estimated timeline for your business goals and when you hope to accomplish them.
Market analysis
The market analysis section of your bakery business plan quantifies how big your potential market is and validates there’s enough demand for your business.
You may include the following in your marketing analysis:
- SWOT analysis . Identifies your strengths, weaknesses, opportunities, and threats.
- Competitive analysis . Outlines the competitive landscape and where your bakery fits in.
Management and organization
Here, you’ll talk about the business structure of your bakery and whether you’ve elected to incorporate as a sole proprietorship, limited liability corporation (LLC), corporation, or something else. Keep in mind that you don’t have to use your official incorporated name as your public-facing name forever—you can always file for a DBA (doing business as) or just drop the “Inc.” or “LLC” at the end of your name. Balkan Bites , for example, is technically an LLC called “Balkan Bites LLC.”
Additionally, if you have a management team, you’ll identify them here as well. It helps to visualize the team with an organizational chart to show how roles and responsibilities are structured and contribute to your bakery’s bottom line.
Products and services
Here, you’ll list which products and services you’ll sell through your bakery. You’ll likely sell something like cakes, cookies, chocolates, pies, or even baking kits, and potentially branded merchandise products. You’ll also want to consider other non-bakery items: do you want to sell coffee as well, for example?
Dough Dealer doesn’t actually do any baking, so it doesn’t sell any baked goods. Instead, it sells kits with baking supplies, as well as merchandise, online. You can do the same thing fairly easily with a print-on-demand company .
Customer segmentation
The customer segmentation section of your bakery business plan should talk about the different groups of shoppers you intend to target with your bakery. Include the following information about each of your segments:
- How old they are
- Where they live
- Where they work and what they do
- Education level
- What technology they use
- Their values, beliefs, and opinions
- Common behavior patterns
- How they shop
Here’s what that might look like: Levain serves a few distinct geographic markets in Puerto Rico, including San Juan, Aguadilla, Mayagüez, and Rincón. Each of these regions represents a specific customer segment for the bakery, and they may have different shared characteristics. So Levain adjusts its promotional and marketing strategy according to its audience.
Marketing plan
Your marketing plan is a high level overview of how you plan to promote your bakery. The marketing plan should outline which channels you plan to use for marketing and advertising, as well as any budgets you might have. At a minimum, this section of your bakery business plan should define the following:
- Price : How much your products cost and why.
- Product : What you’re selling and how you differentiate it in the market.
- Promotion : How you’ll get your products in front of your ideal customer.
- Place : Where you’ll sell your products, including online and in person.
SunDays is using email marketing to promote its bakery business and build buzz pre-launch. The brand allows people to subscribe so they can be alerted when the online store launches. This approach is also an excellent tactic for email list-building .
Here are some more resources to help put together the marketing section of your bakery business plan:
- How to Build a Marketing Plan That Actually Works
- 7 Inspiring Marketing Plan Examples (and How You Can Implement Them)
- Driving Growth: 11 Best Marketing Strategies Any Small Business Can Execute
Logistics and operations plan
Your logistics and operations plan outlines exactly how you’ll create and sell products and fulfill orders. Be sure to address each of the following:
- Suppliers . Identify where you’ll purchase the raw ingredients you need to make your baked goods and where they’re produced. Will you purchase anything pre-made or make everything from scratch?
- Production . Outline whether you’ll make, wholesale, or even dropship your products. Write how long it takes to receive raw ingredients and how long it takes to produce your baked goods. You’ll also want to think about a contingency plan: How will you handle a busy season or an unexpected spike in demand?
- Facilities . Where will you and any team members work? Do you plan to have a physical retail space as well as the bakery? If yes, where? Will they coexist or exist in different locations?
- Equipment . List which tools and technology you require to get you up and running. Think things like ovens, mixers, refrigerators, etc., as well as business tools like a POS system or card reader. You’ll even list things like lightbulbs, counters, and anything else you need to purchase to open your bakery.
- Shipping and fulfillment . Will you be handling all the fulfillment tasks in-house or will you use a third-party fulfillment partner? Will you have a space for in-person shopping or pickup?
- Inventory . How much raw ingredients will you keep on hand, and where will it be stored? How much finished product can you keep on hand, and where? How will you ship products to partners if required, and how will you approach inventory management ?
Wildgrain , for example, operates on a subscription-based business model. The brand outlines how it works on its website, and this information would also be suitable for the logistics and operations section of its bakery business plan.
Florets offers a subscription plan as well as in-person pickup at its Auckland-based bakery location or at a weekly farmers market.
The Protein Bakery also has a few methods for fulfillment. Customers can visit its New York City–based retail shop or order online, and other businesses can also purchase its products wholesale.
Learn more: How to Start Natural Protein Baked Goods Business Online on Shopify
Financial plan
The financial plan shows you’ve done your math homework and crunched the numbers to figure out how much money you need to launch, how much you need to operate, and whether you can turn a profit.
The financial plan typically includes the following financial statements :
- Income statement
- Balance sheet
- Cash flow statement
We’ve put together a spreadsheet template that includes everything you need to create the above financial statements, including some sample numbers. Just edit it as needed.
Starting your new venture with a bakery business plan is a surefire way to set yourself up for success from the get go. Your bakery business plan will keep you and your team accountable and aligned with your vision and goals.
When you’re ready to launch, build your website on Shopify. With Shopify, you can seamlessly integrate your retail and ecommerce tech stack to maintain complete control of your growing business.
Ready to create your first business? Start your free trial of Shopify—no credit card required.
Bakery business plan faq, how do i start my own bakery business plan, how much money can you make owning a bakery, what equipment is needed for a bakery.
- Food processor
- Dough proofer
- Dough sheeter
- Bread slicer
- Refrigerator and/or freezer
- Baker’s rack
- Baking pan and dishes
- Bowls, measuring cups, spoons, spatulas, etc.
- Pastry bags
- Work counters
- Dry storage
Is a bakery business profitable?
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Bakery Business Plan Template · 1. Executive Summary · 2. Company Overview · 3. Industry Analysis · 4. Customer Analysis · 5. Competitive Analysis · 6. Marketing Plan
Writing an operational plan for a bakery business · Determine your objectives · Decide on a location · List your supplies and equipment · Outline
Hiring and training staff · Setting up a point-of-sale · Creating a website and social media presence · Marketing the bakery · Decorating the front-of-house.
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
1. Executive Summary · 2. Company Overview · 3. Market Analysis · 4. Business Offerings and Menu · 5. Operations Plan · 6. Marketing and PR Plan · 7. Financial
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
The business model (small retail bakery) relies on decentralized ... 1 – Standard French bread types Operations Plan 6 Design of goods and services The
8 Sections of a Bakery Business Plan · What type of bakery will you open? Cakes? Pastries? · What theme or bakery design will your bakery have? · Who are your
Operations Plan – Your Operations Plan will include a description of your bakery, your bakery equipment, your production process, and your
Logistics and operations plan · Suppliers. Identify where you'll purchase the raw ingredients you need to make your baked goods and where they're