How to prepare a business plan for a bakery



So, you have decided to finally leave your job as an employee and start your own bakery. Starting your own bakery is such an exciting move!


You get to decide what type of baked goods you are going to make and make it like you want to make it. As a bakery owner, you get to choose who you take on as a client and whether or not you will own a bakery out of your home or have a traditional bakery store-front shop.



There is a lot of planning, strategy and money that has to go into getting a bakery open, which can cause you to really get overwhelmed quite quickly. And if you do not have a plan, then you may even give up.


Below is a guide to writing a great, detailed business plan for a bakery so you get started on the right foot and ready to take on the baked goods world in no time.


  1. Executive Summary

  2. Company Overview and Description

  3. Market Analysis

  4. Business Offering

  5. Management

  6. Marketing

  7. Financial Projections


1. Executive summary


The executive summary is the last thing you are going to write, but it will be the first thing you see in the business plan itself. It will contain a summary of the rest of the business plan which obviously will not be known until you write it out first.


The executive summary will be a short part that hits on everything and talks about what you will see in the business plan without going to far into detail. It is a simple overview.


You want this summary to tell the reader everything they really need to know about your bakery without going too far into detail so they do not delve into each appropriate section.



2. Company Overview and Description


This description is important and in "technical terms" it is going to be referred too as the company overview of your plan itself.


In this overview, there will be descriptive details about how you have started your bakery or how you plan to start it up in the near future.


For example, if you started your bakery out of your home only doing baked goods when they were ordered by someone, and then the demand became larger and orders were coming in every day then you will need to find a new way to produce them on a larger scale. Meaning you will need to open a new bakery.


On the flip side, say your mother or father started up a bakery and handed it down to you to become the new owner, then you will need to write a detailed history of how that happened.


Once you have the history of your bakery written down, you will need to write down any partnerships you have formed and how that happened in this same section.

3. Market analysis for your area


The next step that you need to take before opening up shop is to find out whether or not the goods and services you are offering are needed or wanted.


This will tell you if you can justify the need for your business to open in the first place and will help you determine if you will be able to take off and make a profit for your business.


  • You can do a market analysis by taking your products to a local farmer's market and seeing how well your products sell among the locals.

  • Conduct a survey among a large group of people and find out the demand for the types of products you offer. Go to as large a demographic as you can find and talk to as many potential customers as you can.


This will give you a rough estimate as to how many customers you can reach and whether or not people are likely to come to your business.


4. Do the research and write out your Business Offering

The next thing you need to do is write your business offering which tells people what you will be selling in your bakery.


As a bakery owner, you will obviously be producing a lot of baked goods but you need to go into much further detail and discuss if you will be baking pies, cookies, cakes, cake pops, candy, bread, breakfast pastries, ethnic treats, vegan products, gluten-free products, etc.


If you are going to be offering very specific things such as birthday cakes or wedding cakes then this will need to be mentioned in this section of the business plan.


You also need to explain why you are going to offer what you are baking.


For example. If you are planning on doing breakfast pastries or fresh baked breads and cinnamon rolls every morning. Then you need to explain that you are going to do that because there are very few or no breakfast places to go in your area that has fresh baked goods every day. And you want to give people an alternative to a drive-thru or frozen breakfast.

5. Management


You will now need to talk about what expertise you have.


What gives you the right to own and operate your own bakery?


If you have any partners in your new business venture, you will need to have them and their qualifications in your business plan as well.


If you are great at baking amazing goods but you have no idea how to do inventory or how to manage your finances. Then you need to explain how you will get around this hurdle.


Will you be hiring an accountant, or get a partner in on your business who will be responsible for this part of the business instead of the baking?


If you are planning to look for an investor to get your business started?

Or going to a bank and getting a line of credit to open up shop?


Make sure that is in this section of the business planner.


You should also include your attorney that will be working for your business and making sure all of your papers and licenses are in order.


You will also need to include anyone else on your team who is going to be working with you on a day to day basis to make decisions for the business.


6. Plan to market your business


Marketing is perhaps one of the most important parts of your business.


You cannot have a successful business unless you do some great marketing strategies that get people to notice your business and come to shop there. You need to write down what your marketing plan will be to get customers into your bakery.


Your marketing plan needs to include:


All of the products you offer in your bakery


This section of the business plan will be more of an outline with your products listed down. What you are going to sell. What your pricing strategy is. It is important to look around at other bakeries in your area to see what their pricing is so you can be as competitive as you can be.


Where you are located


Next, write out what your bakery location is so that people know where to find you, and any delivery services that you are going to offer so people can know whether you will deliver to their event, business, party, etc.


How you will promote your business.

  • What are you going to do to reach out to the public and make them excited to choose you?

  • What are your daily specials going to be?

  • Will you offer any type of afternoon discounts that did not sell in the morning so that you can get rid of products so they do not get stale before the next day?

  • Make sure that you include whether you will be using social media to advertise your business and if so, what streams of social media will you be using?


This is an incredibly important section of your business plan as it will help to keep you accountable and keep you on track to scale up and grow your business.

It helps you stay organized amidst the chaos of daily business so you can continue marketing and get the word out without having to figure it out on the fly.

Expansion


This section will also include the growth plans that you have for the future. If you are planning on opening one location and then expanding to another one in the next few years, then you need to have this written down.


Talk about how many employees you are starting out with or whether you are going to be the sole owner and operator in the beginning, and how many employees you plan to add on as your business starts to take off.


7. Financial projections


This is close to the last section of the business plan but an important section nonetheless.


This section will be a detailed expectation of how much revenue you plan on your business bringing in within a certain time frame.


For example, you will write out whether you plan on making a large profit or breaking even within the first six months, or the first fiscal or calendar year after opening up your bakery.


To do this, you need to first write down all of your expenses.


  • Write out the costs of all the ingredients and supplies you need.

  • The tools you need to do the job correctly.

  • If you are renting a storefront. Add in the rent cost.

  • Salaries for yourself or any other employee working for you.

  • Every other cost that comes with the daily operation of a bakery.


You then need to write out your revenue. The revenue will include:

- How many sales you make on daily products.

- Any special orders.

- Catering profits, wedding cakes, etc


Add up your projected revenue and subtract it from the costs, the resulting amount should be your projected profits at the end of the determined time period.



When you are writing a business plan for your new bakery, it is important not to include any type of commitment or statement from people in your inner circle. Like your friends or family that said they would buy from you as a way to justify opening your bakery, as you cannot trust everyone when it comes to business.


It is also important to have an expert help you to write it and look over it before you put the plan into action. For example, find an established bakery and talk to them about their plan to get a feeling for what they did and use that as a template for yourself. Then have a lawyer look over everything before you proceed!