sample business plan for a small bakery

Sample Bakery Business Plan For Inspiration

Writing a business plan is a crucial step in starting a bakery. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring bakers, having access to a sample bakery business plan can be especially helpful in providing direction and gaining insight into how to draft their own bakery business plan.

Download our Ultimate Bakery Business Plan Template

Having a thorough business plan in place is critical for any successful bakery venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A bakery business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The bakery business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your bakery as Growthink’s Ultimate Bakery Business Plan Template , but it can help you write a bakery business plan of your own.  

Example #1 – Home Sweet Home Baked Goods

Table of contents, executive summary.

• Company Overview

Industry Analysis

Customer analysis.

• Competitive Analysis

Marketing Plan

Operations plan, management team, financial plan.

Home Sweet Home Baked Goods is a home-based bakery in Bend, Oregon that has been operating successfully for the last 3 years. Founded by talented baker Jill Davis and her husband Sam, Home Sweet Home Baked Goods specializes in creating custom cakes, cupcakes, pies, and other desserts from scratch. Now that their business has grown and they have expanded their customer base, Jill and Sam are looking for funding to open a brick-and-mortar storefront location in Bend.

The new location will be a modern bakery with an inviting atmosphere and welcoming staff. Through the use of high-quality ingredients, innovative recipes, experienced baking staff, and updated bakery equipment, Home Sweet Home Baked Goods is poised to become the premier bakery in Bend. The new store will create jobs for local residents while bringing delicious baked goods to the community.

Home Sweet Home Baked Goods’ mission is to use locally sourced ingredients whenever possible to create unique baked goods of uncompromising quality at an affordable price. With its commitment to excellence and creative approach to baking, the company will provide customers with a unique experience with each visit.

In order to achieve these goals within their budget constraints, Home Sweet Home Baked Goods has put together a comprehensive plan utilizing proven marketing techniques, operational efficiencies, and cost management strategies. By leveraging technology such as social media marketing platforms like Facebook and Instagram as well as partnerships with local businesses, Home Sweet Home Baked Goods has created a strategy for success that will allow them to not only meet but exceed customer expectations.

As part of this plan, we are seeking funding from investors or lenders who share our vision for creating an exceptional bakery experience in Bend. With your help, we can continue our growth while developing long-term relationships with our customers through quality products and outstanding service — all while supporting small business owners in our community.  

Company Description

Home Sweet Home Baked Goods is a home-based bakery in Bend, Oregon that has been operating successfully for the last 3 years. Founded by passionate baker Jill Davis and her husband Sam, Home Sweet Home Baked Goods specializes in creating custom cakes, cupcakes, pies, and other desserts from scratch. The company’s focus on quality ingredients, innovative recipes, experienced baking staff, and updated equipment sets them apart from its competitors.

Home Sweet Home Baked Goods strives to provide customers with an exceptional experience each time they visit the store by using locally sourced ingredients whenever possible. This commitment to excellence has allowed them to expand their customer base across the region, leading them to seek funding for a brick-and-mortar storefront bakery location in Bend that will bring even more delicious baked goods and job opportunities to local residents.  

The Bend, Oregon home-based bakery industry is a booming sector that has seen significant growth in the last three years. According to figures released by the Oregon Department of Agriculture, retail bakeries generated over $200 million in sales in 2019 alone, up 8.3% from 2018. The number of establishments operating within the state has also increased, with seven new businesses opening their doors in 2019.

The majority of these bakeries specialize in cakes and cupcakes, though some offer other items such as pies and donuts. The market for specialty items is particularly competitive, with many bakeries offering custom designs that cater to specific dietary needs or themes. This demand has encouraged a larger variety of offerings from existing businesses and attracted more upstart shops to enter the market.

Bend’s bakery scene is driven by its large base of tourists and university students who often seek out unique treats while visiting the city. As a result, many local bakeries have developed memorable branding campaigns that target these customers and feature unique flavors or design styles that set them apart from competitors. These efforts have been rewarded with higher rates of customer loyalty, allowing these businesses to enjoy continued success despite an increasingly crowded marketplace.

Despite its popularity as a destination for bakers and dessert lovers alike, Bend also faces certain challenges that may affect business operations going forward. High rent prices are one such issue; with real estate costs on the rise, it can be difficult for small local businesses to secure an affordable space without sacrificing quality or service standards. Additionally, Bend’s seasonal climate – boasting cold winters and dry summers – makes it difficult for certain items such as ice cream or frozen yogurt to remain popular year-round options for consumers.

Overall, however, Bend remains an excellent location for home-based bakers seeking to expand their operations into a storefront setting due to its vibrant culture and lively atmosphere. With proper planning and execution, Home Sweet Home Baked Goods can position itself as a leader in this growing industry while helping bring more culinary creativity and innovation to the area’s residents and visitors alike.  

Home Sweet Home Baked Goods has an ideal target market that includes both local customers and visitors to Bend, Oregon. The company is particularly passionate about providing locally sourced ingredients in its baked goods, making it a natural draw for people who live in the Bend area.

The local demographic consists primarily of working professionals, families with children, retirees, and university students. These customers are looking for high-quality desserts that cater to their individual dietary needs while also remaining reasonably priced. Home Sweet Home Baked Goods’ emphasis on using local ingredients appeals to this demographic as it shows their commitment to supporting the local economy and providing fresher products.

The company also seeks to attract tourists with its innovative recipes and memorable design themes. Tourists often seek out interesting treats while visiting cities such as Bend due to their limited time frames; baked goods created with original recipes can be a great way to provide these customers with an enjoyable experience that they won’t find anywhere else. Furthermore, its custom designs help create an even more unique experience for each customer – whether a visitor or local resident – by allowing them to customize their order based on specific dietary restrictions or preferences.

Psychographically, Home Sweet Home Baked Goods targets individuals who are looking for quality desserts made from fresh ingredients but don’t want to sacrifice taste or convenience. The company is committed to creating innovative recipes that appeal to customers of all ages and encourages its customers to interact with staff members for advice or suggestions when ordering customized items – this gives them an added sense of security when selecting special orders knowing that they are getting exactly what they need from the bakery’s staff of experienced bakers. Moreover, Home Sweet Home Baked Goods’ commitment to using locally sourced ingredients resonates strongly with individuals who value sustainability and ethical production processes; this connection can become even stronger if the company decides to partner with local farms or purveyors when sourcing their ingredients in the near future.

Overall, Home Sweet Home Baked Goods is aimed at professional adults and families looking for delicious yet affordable treats made from quality ingredients as well as visitors interested in finding original recipes while discovering Bend’s culinary scene. By providing customer service excellence paired with locally sourced ingredients whenever possible, the company seeks not only to build a loyal customer base but also to contribute positively towards the overall development of Bend’s culinary industry.  

Competitor Analysis

Home Sweet Home Baked Goods will be entering a very competitive market in Bend, Oregon. The local bakery market is saturated with many established businesses that have been around for several years, offering a variety of products and services. Therefore, the company must assess the competition and identify its strengths and weaknesses in order to create effective differentiation strategies that will allow it to stand out from the crowd.

One of the main competitors in the region is The Baker’s Dozen Bakery, which has been operating since 2000. The business offers a wide range of baked goods such as cookies, cakes, muffins, brownies, doughnuts and more; their prices are slightly higher than those of Home Sweet Home Baked Goods but customers are willing to pay for their quality products. Furthermore, The Baker’s Dozen Bakery has built a strong reputation by catering events in the area as well as providing custom orders for special occasions. In addition to this, they also offer delivery services throughout Bend; while this may not be a major advantage over Home Sweet Home Baked Goods now due to the pandemic-related restrictions on food service industry operations in most areas, it could potentially become an important asset when things return to normal.

Another competitor is Sweeter Things Bakery & Cafe which has been running since 2013. This business specializes in customized cakes made with fresh ingredients; these expensive desserts appeal to customers looking for something extra special for weddings or birthdays whereas The Baker’s Dozen Bakery focuses more on traditional baked goods such as cupcakes and cookies. Sweeter Things Bakery & Cafe also offers delivery services throughout Bend just like The Baker’s Dozen Bakery – again, this could be an important factor once restrictions are lifted.

Finally, there is Kate’s Cupcakery which opened up in 2016 and focuses solely on cupcakes. While this business does offer unique flavors and custom designs that appeal to customers looking for something different from traditional cupcakes (i.e., gluten-free or vegan baked goods), its menu is limited compared to those offered by both The Baker’s Dozen Bakery and Sweeter Things Bakery & Cafe which provides wider varieties of baked goods plus other pastries like pies or tarts. Additionally, Kate’s Cupcakery does not offer delivery services so customers would have to visit the store if they want one of their cupcakes – this could pose a potential disadvantage if other competitors start providing delivery services once restrictions are lifted due to the pandemic situation.

Overall, while all three businesses have great potential they do not necessarily provide what Home Sweet Home Baked Goods plans on delivering: locally sourced ingredients used whenever possible combined with innovative recipes and custom designs catering specifically towards individual needs – all at reasonable prices that appeal both local residents and visitors alike. By leveraging these aspects that differentiate them from other competitors in the area, Home Sweet Home Baked Goods should be able to position itself as a leader in Bend’s bakery industry while still maintaining a competitive edge.

In order to do so, Home Sweet Home Baked Goods must focus on creating an engaging and unique atmosphere that will draw customers in. This can be done by utilizing modern design approaches and incorporating eco-friendly materials when possible as well as providing custom flavors that cannot be found elsewhere in the city. Offering discounts for orders placed online or through their app could also help to attract more customers while simultaneously cutting operational costs. Additionally, they must ensure that their products are of high quality; offering samples and feedback forms at the store are great ways to get customer opinions on what they like or dislike about a particular product – this information can then be used to make necessary improvements as needed or create new recipes. With the right combination of these elements, Home Sweet Home Baked Goods should be able to stand out from all other competitors in Bend and establish itself as the go-to bakery for all locals and visitors alike.

Home Sweet Home Baked Goods is a home-based bakery that offers locally sourced ingredients and innovative recipes. Our goal is to provide our customers with freshly made, high-quality pastries at reasonable prices. We offer custom flavors and designs for special occasions like weddings or birthdays as well as more traditional items such as cupcakes, cookies, pies, and tarts.

To drive foot traffic to our storefront location in Bend:

• Products : We will focus on creating unique flavors (gluten-free/vegan options) along with custom designs catering specifically to individual needs.
• Price : We will offer competitive prices that appeal both to local residents and visitors alike.
• Promotion : We will use digital marketing methods such as a website, social media platforms, and app ads to reach a wider audience. Additionally, we will create promotional offers like discounts (e.g., 10% off orders placed online or through our app) and free samples at the store.
• Place : To ensure quick delivery times, we will focus on developing relationships with local suppliers so that we can get ingredients quickly and efficiently whenever possible. This way customers can be sure that their orders are always freshly made when they arrive.

Home Sweet Home Baked Goods is a home-based bakery that offers locally sourced ingredients and innovative recipes to customers at reasonable prices. We specialize in custom flavors and designs for special occasions such as weddings or birthdays, as well as more traditional items such as cupcakes, cookies, pies, and tarts. As we expand to a storefront location in Bend, our goal is to create an engaging atmosphere that will draw customers in while providing quality products that can’t be found elsewhere.  

Daily Operations:

We will begin each day by prepping the ingredients and baking batches of our products. This includes sifting flour and pre-measuring all other ingredients so that our pastries are made with the utmost care and precision. In addition, we will also make sure to check the expiration date on all ingredients used to ensure freshness. Once this is done, we will start the baking process using various techniques such as panning dough into sheet pans or molds or piping batters onto parchment paper for cupcakes. After baking has been completed, we will package up the products for sale or delivery depending on customer orders. Finally, we will clean up any messes from the kitchen area before closing for the day.  

Milestones to Achieve:

The following milestones will be necessary to ensure the success of Home Sweet Home Baked Goods.

• Develop Relationships with Local Suppliers – We will create relationships with local suppliers to get fresh ingredients as quickly and efficiently as possible.
• Create a Website and Social Media Platforms – We will need to build a website that advertises our products, informs customers about delivery options, and provides contact information for orders. Additionally, we will develop social media accounts on popular platforms like Instagram and Facebook in order to reach a wider audience and engage customers through content marketing strategies.
• Offer Promotional Offers – We will need to create promotional offers such as discounts or free samples at the store in order to draw more customers into the shop.
• Develop Innovative Recipes – We will need to come up with new flavors, designs, and recipes in order to keep customers coming back for more.
• Increase Visibility – We will need to use strategies such as app ads and digital marketing campaigns in order to increase the visibility of our business and reach more potential customers.

By achieving these milestones, we will be able to create a successful storefront location that provides quality products and an enjoyable atmosphere. Our goal is to become a fixture in the Bend community by creating a safe space where people can come together over delicious baked goods.  

The management team at Home Sweet Home Baked Goods is comprised of Jill Davis and her husband Sam. Jill and Sam have been a dynamic duo since they first met in college, and their enthusiasm for baking has helped them to build an empire out of their passion.

Jill is the co-founder and head baker at Home Sweet Home Baked Goods. She is a talented pastry chef with a keen eye for detail, ensuring that every product they produce meets their high standards. She has spent years perfecting her craft, creating innovative recipes with locally sourced ingredients to meet the needs of their customers. Her creativity and skill in the kitchen have earned her renown among local bakers, and she often receives requests from customers to create custom flavors or designs for special occasions such as weddings or birthdays.

Sam serves as co-founder and CEO of Home Sweet Home Baked Goods. He brings his wealth of business knowledge, acting as a strategic partner to Jill by overseeing operations, developing marketing strategies, and securing connections with suppliers. Sam’s dedication to customer service ensures that every customer gets the best possible experience when ordering from Home Sweet Home Baked Goods. His commitment to excellence has enabled them to consistently provide quality products at reasonable prices.

Together, Jill and Sam have turned a hobby into a successful business that specializes in fresh baked goods made with love for each customer who comes through its doors or orders online. Their passion for baking has enabled them to grow from a small home-based bakery into an established storefront location where they can continue providing exceptional products while getting to know their community better than ever before.  

Home Sweet Home Baked Goods is dedicated to providing quality baked goods and an enjoyable atmosphere for their customers. To ensure the success of their storefront, they need to create a comprehensive financial plan that outlines their projected growth and profitability.

In summary, Home Sweet Home Baked Goods’ financial plan is based on the following assumptions:

• Initial Start-Up Capital – We will need to raise initial start-up capital of $30,000 in order to cover expenses such as rent, equipment, and inventory for our storefront location.
• Profitability – We anticipate a 10% increase in sales every month, resulting in a steady growth of profitability.
• Cost of Goods Sold – We estimate our cost of goods sold to be 35% which is lower than the industry average due to our commitment to quality ingredients and competitive prices.
• Working Capital – Our working capital requirement will need to be adequate enough to cover at least three months of inventory, wages for staff, and other operating expenses.
• Financing – We plan to raise funds from a combination of personal savings, investors, and bank loans in order to meet our initial start-up capital requirements.
• Expansion – We anticipate the need for additional space or equipment within 12 months of opening.
• Taxes – We plan to pay estimated taxes quarterly throughout the year in order to remain compliant with federal regulations.

These assumptions will form the basis of our financial plan for Home Sweet Home Baked Goods and will help us to determine how we should allocate funds in order to reach our desired business goals. With this financial plan, we hope to transition Home Sweet Home Baked Goods into a successful storefront business.  

Sample Menu

1. Fresh Bread:

• White Sandwich Loaf
• Whole Wheat Loaf
• Raisin Walnut Bread
• Italian Herb & Cheese Loaf
• Cinnamon Swirl Bread

2. Cookies:

• Chocolate Chip Cookies
• Peanut Butter Cookies
• Vanilla Layer Cake with Strawberry Filling and Cream Cheese Frosting
• Carrot Cake with Cream Cheese Frosting
• Red Velvet Cupcakes with Cream Cheese Frosting

4. Pies and Tarts:

• Apple Pie with Crumb Topping
• Lemon Meringue Tart

5. Specialty Desserts:

6. Coffee Drinks & Teas:

• Cold Brew Coffee

7. Smoothies & Shakes:

• Strawberry Banana Smoothie
• Mango Pineapple Shake

Financial Statements

Balance sheet.

[insert financial statement]

Income Statement

Cash flow statement, how to finish your bakery business plan in 1 day.

Don’t you wish there was a faster, easier way to finish your bakery business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

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

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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Bakery Business Plan

Many entrepreneurs have started converting their hobbies into their businesses. One such trending hobby business is the bakery business.

The bakery industry is one of the businesses that is flourishing more than ever in the modern world. To say that practically every street in a metropolis has at least one bakery or café would not be an exaggeration.

Therefore, starting a bakery business can be a desirable and profitable venture in the F&B industry, especially with the development of cutting-edge equipment that enables the production of a wide range of bread.

→ Download Now: Free Bakery Business Plan

Not every bakery business starts with a formal and organized plan, but if it does, the road to success will have fewer hardships. If you want to lead towards your destination with minimum interruptions, then your business plan will get what you wish for.

How To Write A Bakery Business Plan?

Before you start writing your business plan for your new Bakery shop, spend as much time as you can reading a sample bakery business plan template.

But do you know how to write an effective bakery business plan , that will help you with funding and other problems? If not, then worry not here is a bakery business plan example for you, which can guide you in your business plan expedition.

Bakery Business Plan Outline

It is the standard bakery business plan format, and it includes all the key components that your plan has to have.

Business Overview

Products & services, customer focus, operations plan, keys to success.

• EBITDA, Net Income
• About B4Bakers
• B4Bakers’ History
• Store Design
• Industry Statistics & Trends
• Customer Segments
• Joe’s Supermarket
• Old Time Bakery
• Freddy’s Deli
• Competitive Pricing
• Competitive Advantage
• The B4Bakers Brand
• Direct Mail
• Public Relations
• Advertising
• Ongoing Customer Communications
• Pre-Opening Events
• Pricing Strategy
• Administrative Functions
• Kitchen Functions
• Store/Retail Functions
• Hiring Plan
• Revenue and Cost Drivers
• Capital Requirements and Use of Funds
• Key Assumptions
• Income Statement (5 Year projections)
• Balance Sheet (5 Year projections)
• Cash Flow Statement (5-Year Projections)

Once you’ve begun using Upmetrics , you may transfer this sample business plan into your own and make the necessary changes. Without further ado let’s start with the bakery business plan.

Executive Summary

This section’s objective is to provide a summary of the topics that will be covered in your business plan and to persuade readers (or investors) to read more.

Outline the goals, concept, and target market for your bakery as well as how its distinctiveness will assure its success.

For instance, you can describe any unique qualities of your staff that can help in the expansion of your bakeries, such as outstanding customer service or attention to detail when making pastries for visitors.

The financial highlights of how you intend to spend any cash from possible investors will also be there in your presentation. You might spend money on the layout of your bakery, getting your first batch of supplies, or paying overhead costs.

Even though this part is crucial, keep it brief. Aim for 500 words or less to pique the reader’s interest and encourage them to read the rest of your business plan. For ideas, you may download our home bakery business plan pdf.

Management Team

Financial highlights.

Are you looking for the exact sample? Then look no more and download our small bakery business plan sample pdf.

Company Overview

Include information on your past accomplishments and distinctive qualifications, as well as the legal makeup of your bakery, its founding, location, and current company stage.

Explain everything that makes you a challenging competitor in this industry , such as current agreements with retailers, a head baker with reputable restaurant experience, or unique access to recipes that have won awards.

You should also include a general description of the type of bakery you now operate or want to operate in this area.

• Customary bakery (selling bread, biscuits, etc.)
• Industrial bakery
• Bakery with a focus on pies and cakes
• A bakery that sells customized wedding cakes
• Bakery and café serving sandwiches and snacks
• Donut store
• Food truck delivering baked goods from a pastry store
• Family bakery

Decide your head chef, store design, & menu, and disclose it in your bakery business plan under this section.

Industry Analysis

This section evaluates the market for bakeries and how your bakery fits into it. Use a successful technique to overcome any obstacles you uncover.

Remember that your market is not the entire market for baked goods as well. It is your specialization inside that market.

For instance, although the US baking sector generates more than $30 billion in revenue annually, your bakery will likely only account for a small portion of that sum based on your location, area of concentration, etc.

Decide on the precise goods and clients you intend to pursue and concentrate your study there.

Customer Analysis

The target market for your bakery, or the clients you will serve, is described in this area of your business plan.

Do you intend to target upcoming brides? Birthday celebrations for kids? Affluent households that often host private events with 500 or more guests?

Or do you mostly deal with walk-in clients? Even if you don’t run a business, you might still supply food to the neighborhood delis, supermarkets, and bodegas.

Undoubtedly, a bakery’s sales benefit from having a larger number of distribution outlets.

A bakery can increase the number of customers by supplying bread, bagels, cakes, pastries, and other products to restaurants.

Whatever target markets you cater to, make sure your business strategy outlines them in detail.

• Specify each person’s demographics.
• Are they both affluent men and women, for instance?
• Do they attend a university?
• Are they nearby eateries?
• To understand their demands and provide better service, you must identify your target clients.

Include information on the demographic and psychographic characteristics of your target market along with specifics on how your bakery will cater to their demands.

Competitive Analysis

The direct and indirect rivals included in this area of your bakery business plan are described.

Other businesses that provide the same service to the same target market are considered direct competitors, with identical baked goods.

Those who meet different demands for the same target market or the same need for a different target market are your indirect competitors.

Identify each of your direct competitors in your strategy, give a brief description of them, and discuss how your bakery differs from theirs.

Finally, describe how you will stand out from the competition and your key competitive advantages .

The most prosperous bakery entrepreneurs identify items that no other nearby bakeries sell, such as a treat that is unique to your bakery and draws consumers in.

Additionally, based on the psychographics and demographics, you might succeed as the sole local bakery offering nut-free cakes or creating baked products that are vegan and gluten-free using organic and local ingredients.

Competitive pricing , location, management, relationships, consider everything and include them all in your bakery business plan.

Marketing Plan

The four P’s of product, price, place, and promotion are the foundation of your bakery marketing plan, which details how you will enter your target market.

Your bakery marketing strategy should outline the four Ps as well as how you’ll keep current clients by using loyalty programs or other strategies.

Additionally, you should describe the layout and display of your store in this portion of your business plan, especially if you are a new retail bakery.

The storefront for your bakery needs to be created in a way that draws walk-in clients. Your advertising plan, sampling, public relations, and pricing strategy are all part of this section.

The operations plan outlines the steps you’ll take to make your idea a reality.

It entails, among other things, the routine short-term procedures needed to, for example, manage your storage space, package your baked goods, perform sales transactions, choose and work with vendors, and transport the finished goods to your clients.

Sourcing, storing, bookkeeping, hiring, and training, are all the part of operations plan.

Your operations plan must also cover the long-term procedures involved in expanding your business, such as launching new lines of merchandise or retail stores and hitting certain sales milestones.

Also, accomplishing other significant business objectives like expanding your team, opening new offices, etc.

Financial Plan

You will concentrate on your bakery’s financial estimates in the final section of your business plan.

You’ll list the probable expenses for supplies, machinery, technology, bills, and wages needed to keep your bakery operating.

Costs could, for instance, include ingredients for pastries, such as flour, sugar, butter, and cream. Additionally, they could include tools for baking such as cake pans, stand mixers, rolling pins, and measuring cups.

Your financial analysis will also contain several other papers, including an income statement, a balance sheet, and a cash flow statement .

You will project how long it will take to turn a profit after detailing all of the costs associated with your bakery design, inventory , and other operating expenses.

To show investors how you may genuinely use their backing to build your business, make your numbers realistic.

A bakery business plan is the finest strategy to launch or expand your enterprise because it clarifies your company’s idea and pinpoints your target clientele.

Download our complete business plan for bakery pdf and start writing the business plan with Upmetrics .

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Bakery Business Plans

Did you know each of these plans was created in LivePlan? Learn More

Delicatessen and Bakery Business Plan

The Bronx Deli and Bakery will bring a slice of New York to Willow Creek, offering sandwiches, baked goods, and top-notch coffee.

Dessert Bakery Business Plan

Rutabaga Sweets is a hospitality company dedicated to providing high-quality desserts in a comfortable atmosphere for clients who seek a fun "gourmet" experience outside restaurants.

Specialty Baker Business Plan

Morningstar Bakery is specializing in wheat-free and gluten-free breads, pastries, and baked goods.

Bakery Business Plan

Jolly's Java and Bakery is a start-up coffee shop and bakery located in southwest Washington.

Do you have a knack for baking? Special bread or dessert recipes that your friends and family are always chatting excitedly about? Ever wanted to open your own bakery but just don’t know where to start? Check out these sample bakery business plans and get inspired to start building your own bakery today.

If you’re looking to develop a more modern business plan, we recommend you try LivePlan . It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan.

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Bakery Business Plan Template and Guide

Take the first step in your business journey with this free bakery business plan template..

What You’ll Get with This Free Bakery Business Plan Template:

• A business plan template for a bakery that can be edited in Word or Pages
• Tips, tricks, and instructions to help you create a winning business plan for your bakery
• 8 customizable sections, including an executive summary, market analysis, and operations plan

What is a Bakery Business Plan?

From the smell of freshly baked bread to the sound of people enjoying their first coffee of the day, there’s nothing more exciting than running a bustling bakery business. Of course, before you can start thinking about day-to-day operations, you’ve got to start with a solid plan – and that’s where a bakery business plan comes in.

A bakery business plan is a document full of information that describes the critical parts of your bakery business. It starts with high-level information about your bakery and vision, and then dives into more detailed sections, such as your ideal customers, what goods and services you’ll offer, and your marketing plan. It’s usually 15–20 pages in length, including graphics, charts, and other visuals that help communicate your vision and simplify information and data.

Although writing a business plan for your bakery can be daunting, doing so offers you and your bakery business many benefits.

Why Do You Need a Bakery Business Plan?

A bakery business plan has a number of key benefits:

• A well-written business plan for a bakery can help entrepreneurs and existing business owners alike have a clear vision and roadmap for their bakery. It also helps you get back on track if you stray from the goals you outlined.
• It can also help you attract investors and secure funding because potential investors will see your plan is thorough, organized, and well-researched.
• The information in a business plan helps future you make informed decisions when you’re not sure what to do with a certain part of your bakery business.
• Researching for your business plan will help you understand your market and competitor bakeries better so you will be more prepared when tackling future challenges.
• As your bakery grows, you will have a foundation to build on top of when you need an updated business plan.

Now that you know why having a bakery business plan is so important, you can learn about how to write one using this guide and by downloading the business plan template for a bakery.

How Do You Write a Business Plan for a Bakery Business?

Writing a business plan for your bakery can be complex, but instead of starting from scratch (like you would with a batch of homemade croissants), our business plan template for bakeries can help you turn your dreams into reality in just a few quick and easy steps.

Keep in mind that you should write your business plan with a professional, objective tone, and with clear, concise, and simple language. This way, any reader, including potential investors, can easily understand the information in your business plan and will be more likely to provide you with funding.

Following a traditional business plan outline will also help orient your readers and ensure you include all the essential information that a successful business plan needs, ultimately setting yourself up for success.

Bakery Business Plan Sample Outline

A traditional bakery business plan sample has the seven sections, all outlined below. Read on to learn more about what each section is. And, download the free bakery business plan template if you want to follow along and start jotting down your ideas.

1. Executive Summary for a Bakery Business

Start your plan with an executive summary for your bakery. This will give a broad overview of the other sections of your business plan (the sections below). It gives readers the highlights of your vision, target market, goals, operations, strategies, menu, and financial information. And it will tell readers how your plan will succeed.

This overview is the first impression of your bakery, so make your business stand out by talking about how your bakery is different from competitor bakeries – whether that’s with your locally sourced menu items, your innovative marketing strategies, or other value props.

2. Company Overview

The company overview is a more detailed rundown of your bakery idea after what you mentioned in the executive summary. Now that you have the interest of the reader, you’ll want to back up your plan with details and your history.

In the company overview, you can talk about what makes your bakery special, what goods you’ll offer, and what kind of service you’ll be using and why. You can also summarize your company’s history with specific details, like why you opened your bakery and the milestones you’ve hit.

3. Market Analysis

The market analysis section is where you talk about where your bakery is or will be located and why. What’s special about that location and how does that help your bakery business? What sets you apart from other bakeries in the area?

Also, talk about your target market – who are your ideal customers and do you have any research to support this being your target market? Include how you’ll reach your ideal customers and how you’ll stand out against competitor bakeries. Completing a competitive analysis of other bakeries will also help you be more creative throughout the business plan and show investors you have the research needed to help your bakery succeed.

4. Business Offerings and Menu

This section is where you describe what baked goods you’ll offer in your bakery. Go into as much detail as you want, right down to the specific types of pastries or bread you’ll be making. Focus on the parts that contribute to your value prop, such as special ingredients you’re using (e.g., nut-free, gluten-free), where the ingredients are coming from (e.g., locally sourced), and why these will appeal to your target market (e.g., market research shows a high demand for gluten-free pastries that other bakeries in the area aren’t supplying successfully).

To provide investors with a clear picture of your offerings, include a sample menu for foods, drinks, and other merchandise (if you have any), as well as the pricing strategy behind it all. Don’t forget to consider how your customers will be consuming your products when creating your menu – will they be taking food to go (so you need to ensure the goods will travel well) or eating inside the bakery (so you might offer different foods at different times of day)? 

5. Operations Plan

In this section, you’ll talk about the logistics of your bakery business – what will you need to run your business every day? This section includes the following information:

• Staffing: What types of staff you’ll need on your team and how you’ll recruit them.
• Training for your staff: Cashiers and bakers will need different types of training.
• Technology: The software you’ll need to manage the bakery (from managing inventory to processing online orders to accepting different payment types). 
• Equipment: The tools and appliances you’ll need (e.g., mixers, an oven, a display case)

6. Marketing and PR Plan

Here you’ll explain the marketing channel you’ll be using and strategies for each. Some channels to consider include public relations, online advertising, social media, referral, SEO, and community partnerships. 

Be thoughtful about your marketing tactics by always keeping your target market in mind. If a certain channel or tactic won’t resonate with or reach your ideal customers, then think of what you can do that is more likely to draw them to your bakery.

Also, as you explain your marketing strategies, include your budget and expected return on investment. This exercise will help you ensure you invest in only the most effective marketing tactics.

7. Financial Analysis and Projections

The financial analysis and projections is the last major section of your bakery business plan. Here you’ll talk about the different financial aspects of your bakery business, such as how you’ll support the bakery’s startup costs with loans and existing investments, and how much more funding you’ll need. 

You’ll also talk about the costs and projected revenue for your business – you can do this clearly and effectively with a projected profit and loss statement. You can also include other financial information, like a break-even analysis, to provide investors with the clearest picture possible of your bakery’s finances. This way they’ll know exactly how you plan to spend their potential funding.

With all these sections, your bakery business plan will be thorough enough to answer any questions investors might have before offering you funding. But, to make your business plan stand out, follow the tips below.

Tips for Writing a Bakery Business Plan

Because a business plan needs to be professional and detailed, it can be easy to get lost in the weeds and make your plan too technical, verbose, or unclear. Here are some tips to help you while writing to make sure your business plan is easy to read and engaging.

• Collaborate with your team (or your friends and family if you don’t have a team yet). They can help you come up with unique ideas and provide you with feedback on areas you can improve (e.g., where you can explain more or add a visual to help clarify an idea).
• Mention your value prop(s) throughout the business plan to keep your competitive advantages over other bakeries top of mind for readers.
• Use passionate language and captivating details to add your voice to the business plan. But make sure you don’t clutter your writing with buzzwords or industry jargon that readers might not understand.

With these tips and the free bakery business plan template, you’re ready to start your business plan or update your existing one to be more impressive. All the sections will help show investors why your business will be successful and worth investing in. Plus, your business plan will act as your roadmap and keep you on track as your business comes to life.

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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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• Executive summary: The executive summary gives the reader a clear and concise overview of your business idea
• Company: This section lays out the structure of your business, including its location, management team and legal status
• Products and services: Here, you'll give an overview of the services or products offered by the company
• Market analysis: The market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry and local market (customer profile, hot trends, regulation, competition, etc.)
• Strategy: This section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way
• Operations: This step lays out the company's operational organisation, including the recruitment plan
• Financial plan: The financial plan includes a table of sources & uses (initial funding plan), and complete financial statements (P&L, balance sheet and cash flow statements).
• Appendices: This part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).

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Bakery business plan template extract

Executive summary, business overview.

Au Pain D'Antan will be a bakery located in Hérouville St Clair and led by Samuel C. and Victoria D.

Au Pain D'Antan will offer different types of bread and sandwiches in addition to quality pastries. We will also make custom orders for special occasions (such as weddings, baptisms, birthdays, and corporate events) for our customers.

Our bakery will be located at 25 avenue de Bruxelles in Hérouville St Clair, a commuter town on the outskirts of the city of Caen.

Partners Samuel C. and Victoria D. have the qualifications and experience necessary to set up the business.

Samuel C. graduated with a Professional Baker's Certificate and has 10 years of experience in the bakery industry.

Victoria D. holds a Master's degree in pastry making and has 11 years of experience in the field.

The two partners met through a professional online network 2 years ago and thought carefully about their professional collaboration and business idea before getting started.

Au Pain d'Antan is a limited company, to which Victoria D. will be the CEO and Samuel C. will assume the role of Chairman of the Board of Directors.

Samuel C. owns 40% of the company, while Victoria owns 60%.

French Market

Bread is a diet staple for many within France - so it is certainly not about to go out of fashion.

In fact, a 2016 survey by Qualiquanti reveals that 92% of the French population have bread in their home at all times, while 52% of respondents feel they simply can't do without it.

Bakeries reign as the preferred place of purchase for bread, with French people making 52% of their bread purchases there.

With an estimated average price of €0.92, the baguette is affordable and remains one of the most popular food items purchased by the French.

There's no doubting the demand for bread in France. But with 35,000 artisan bakeries (about one bakery for every 2,000 inhabitants) and 6 billion baguettes being baked in France each year, the supply is meeting the demand.  

The bakery offer is evolving: with bread purchases counting for 45.2% of bakery sales, the range of baked goods being sold is expanding. 

The bakery is no longer just a place to buy bread, as it is fast becoming a go-to place for lunch. Bakers are also developing their bakery products to improve their turnover. 

According to Fiducial, a traditional bakery makes an average annual turnover of around €386,000, with the average customer spending €4.20 per visit.

However, the turnover depends strongly on the size of the business. According to the Observatoire de la Boulangerie, a bakery with an average staff of 9 employees, including 2 apprentices, sees a turnover between €300,000 and €450,000 (excl. tax) per year.

However, according to boulangerie.org, the average turnover for a bakery with an average workforce of 3 to 2 employees is around €273,000 (excl. tax).

In terms of how the sales are distributed between different types of products, in addition to the bread sales mentioned above, pastries, sandwiches, and savoury products now make up almost 50% of sales. 

64% of bakeries in France are located in urban areas. On average, these bakeries are run by couples around the age of 47. With a wave of retirements expected within the next ten years or so, the market will renew itself, as these businesses will be taken over by new owners.

Local Market

In 2019, Hérouville St Clair had 23,319 inhabitants and 9 bakeries - bringing it under the national average of one bakery per 2,000 inhabitants. 

The biggest age group in the city is 20 - 24 year olds. Hérouville-St-Clair's young population can be explained in particular by the presence of students from the University of Caen.

Its proximity to the city of Caen also provides an opportunity for businesses to target professionals travelling to the Caen agglomeration, and also in the opposite direction. 

The town of Hérouville-St-Clair is a commuter town, popular amongst families and young professionals, so a bakery would well serve the needs of those living there.

Competition

There are a total of 9 bakeries in the city of Hérouville St Clair. However, we believe that the competition will be mainly with bakeries in the immediate vicinity of the Avenue de Bruxelles, of which there are three.

We expect a high level of competition with the bakeries in the neighborhood, as our offerings are similar. However, we believe that our prime location and the quality of our products should enable us to build a loyal customer base in the local market.

We will also compete indirectly with other businesses selling bread and sandwiches.

Financial Highlights

Au Pain D'Antan should be profitable in its first year of operation.

We expect to achieve sales of €268,781 and EBITDA of €35,837 (and 13.33% of margin) in Year 1.

We believe that we will then be able to grow our business thanks to word of mouth and the actions set out in our marketing plan.

On the basis of the current plan, we should achieve sales of €275,661 in year 2 (with 2.56% of growth) and €283,50 1in year 3 (with 2.84% of growth).

We anticipate to generate EBITDA of €48,202 (and 17.00% of margin) in year 3. The improvement in EBITDA margin between year 1 and year 3 is due to a better absorption of fixed costs following the increase in sales.

We expect a positive cash flow throughout the entire plan.

The cash flow generated by the business will be sufficient to cover our loan repayments while providing leeway for us to renew our equipment and deal with any contingencies.

Our initial financing requirement amounts to €115,000. The partners plan to contribute €40,000 (35% of the total), and we would like to obtain a loan of €75,000.

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