business plan on pastry

Bakery Business Plan Template

Written by Dave Lavinsky

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

Where Can I Get a Bakery Business Plan PDF?

You can download our free bakery business plan template PDF here . This is a sample bakery business plan template you can use in PDF format.

How to Start a Pastry Business

So, you want to start a pastry business? Whether you’re a whiz in the kitchen or you just have a passion for all things sweet, starting your own pastry business can be a delicious way to make a living. 

Before you can get started, there are a few things you need to know. Here’s a step-by-step guide to starting your own pastry business.

Download the Ultimate Bakery Business Plan Template

Ten Steps to Launching a New Pastry Business

1. choose your type of pastry business.

The first step in launching a pastry business is to identify the type of pastry business you want to launch. You might choose from the following types among others:

• A bakery café, where you’ll serve pastries and other food items in addition to selling them to customers to take home.
• A cake shop, which specializes in custom cakes for special occasions like weddings, birthdays, and anniversaries.
• A mobile pastry business, where you sell your wares out of a cart or truck at farmers markets, fairs, and other events.
• An online pastry business, where you sell your pastries through an e-commerce website or delivery service.

2. Name Your Pastry Business

Give your pastry business an identity so people will think of it as a well-known and respected brand. You can take the name of your pastry business from your industry, focus on a geographical location, or use your own name among other options.

The main goal for naming your pastry business is to make it sound appealing and trustworthy so customers will want to visit your store and purchase pastries.

3. Determine Your Pastry Business Model

There are several possible types of business models for a pastry business including:

• A home-based business, where you prepare and sell your pastries from your own kitchen.
• A brick-and-mortar shop, where you have a physical location for customers to visit.
• A mobile business, where you sell your pastries from a cart or truck.
• An online business, where you sell your pastries through an e-commerce website or delivery service.

No matter which model you choose, ensure that it aligns with your business goals and the pastries you offer.  

4. Choose a Legal Form for Your Business

By incorporating your pastry business, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.

The business structure you choose for your pastry business will determine the taxes you pay and which state or federal tax forms you need to file.

Read our article comparing the most common pastry business structures .

5. Write a Pastry Business Plan

All pastry business owners should develop a business plan. 

A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team.

Read our article about how to write a pastry business plan .

6. Apply for the Necessary Permits and Licenses

You may need to obtain required licenses and permits before launching your pastry business.

For example, if you plan to sell your pastries out of a brick-and-mortar location, you’ll need to obtain a business license from your city or county. If you’re making and selling your pastries from home, you might need a permit from your state or local health department.

Read our article about obtaining the proper pastry business licenses .

7. Determine Your Budget & Apply for Funding as Needed

In developing your pastry business plan, you will figure out how much funding you need to start and grow your business.

If you have funds to invest in your pastry business, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your pastry business include traditional bank loans, SBA loans, credit cards, angel investors, and family and friends.

Read our article about the costs of starting a pastry business to help you determine if funding is needed. 

8. Get the Technology & Software Needed to Run Your Business Efficiently

When you start your pastry business, it’s essential to have the right technology in place to maximize efficiency. You need a computer with Internet access, and accounting software for tracking expenses and revenues. 

You may also want to invest in an e-commerce platform so you can sell your pastries online. And if you plan to do any baking or cooking in your home kitchen, you’ll need the appropriate appliances and equipment.

9. Market Your Pastry Business to Potential Customers

Before you start selling your products , you have to let the world know you exist. The first step is to create a website so people can learn more about your products and how they benefit them.

After you launch your website, start promoting it through social media channels like Facebook, LinkedIn and Twitter. Also consider networking with other people in the pastry industry through social media and blogs so they can help share your business. 

You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Pastry businesses should consider the following promotional strategies for which you should start getting prepared:

• Develop a strong branding strategy
• Create marketing materials like business cards, flyers and brochures
• Engage in local event marketing
• Participate in trade shows related to the pastry industry

Read our article about how to market your pastry business for more tips.

10. Get New Customers & Grow Your Business

When you promote your products , you’ll start to get interest from potential customers . 

Make sure you’re ready to serve these customers . Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your pastry business.

Read our article about how to effectively grow your pastry business to learn more.

Starting a Pastry Business FAQs

Why start a pastry business.

A pastry business can be an enriching experience, both financially and emotionally. If you're passionate about baking and enjoy creating new recipes, a pastry business can be a great way to channel that creativity. And if you love working with people and making them happy, a pastry business can be a great way to do that too.

What is Needed to Start a Successful Pastry Business?

To start a successful pastry business, you need to have a passion for baking, creative recipes, the right technology and equipment, an efficient business plan, the proper licenses and permits, and the ability to market your products effectively.

How Can I Start a Pastry Business From Home?

You can start a pastry business from home by getting the necessary permits and licenses, investing in the right technology and equipment, and marketing your products effectively.

How Can I Start a Pastry Business Online?

You can start a pastry business online by creating a website, promoting your business through social media, and participating in trade shows and other events.

What are Some Tips for Starting a Pastry Business?

Some tips for starting a pastry business include having a passion for baking, being creative, investing in the right technology and equipment, having an efficient business plan, and marketing your products effectively.

Where Can I Find a Simple Checklist for Starting a Pastry Business?

A simple checklist to use when starting a pastry business is as follows:

• Choose Your Type of Pastry : This should be based on what you are best at and how much experience you have. Remember to always keep your interests, skills, and experience in mind.
• Name Your Pastry Business: This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
• Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
• Determine Your Pastry Business Model: Determine how your business will make money. For example, will you sell products, services, or a combination of both?
• Write a Pastry Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow .
• Apply for the Necessary Permits and Licenses: In most locations you will be required to apply for a business license and/or permits before you can begin operations.
• Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. Then, if needed, apply for a small business loan or other funding options.
• Get the Technology & Software Needed to Run Your Business Efficiently: You need the right tools to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
• Market Your Pastry Business to Potential Customers : A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the products they truly need. 
• Get Customers & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your products . 

 Start a Pastry Business

A pastry business can be a great way to pursue your passion for baking and creativity. However, you will need to have the right technology and equipment, an efficient business plan, the proper licenses and permits, and the ability to market your products effectively. With these things in place, you can launch and grow a successful pastry business.

BUSINESS STRATEGIES

How to create a bakery business plan

• Annabelle Amery
• Oct 29, 2023
• 12 min read

When launching your bakery business , the first step is to whip up a detailed and well-crafted business plan. Think of it as the secret recipe for your bakery's success. This document isn't just a list of ingredients; it's your roadmap to achieving your goals, whether you're baking artisanal bread, delightful pastries or delectable cakes. Your bakery business plan will help you navigate the sweet and savory challenges of the industry, ensuring your path to success is as delightful as your treats.

So if you're looking to start a business in the baking industry, keep reading for instructions on how build a strong business plan.

Ready to get baking? Use Wix to build a business website and learn how to make a bakery website .

Why create a bakery business plan? Key benefits to consider

Crafting a bakery business plan is important for several reasons. First, it forces you to conduct thorough market research and analysis, helping you gain insights into your target market's preferences, trends and competition. This information is vital for designing a product lineup that resonates with customers and stands out in the crowded baking market.

A well-structured business plan aids in clarifying your bakery's unique value proposition as well. By clearly defining what sets the bakery apart from its competitors, you can effectively communicate your brand's identity and build a strong customer base.

Beyond all this, your business plan lays out a detailed operational plan, outlining your bakery's workflow, supply chain management, staffing requirements and equipment needs. This level of detail is crucial to ensure smooth day-to-day operations and efficient resource allocation.

Finally, a bakery business plan is a vital tool for raising money for your business whether from investors, lenders or stakeholders. It demonstrates your commitment, understanding of the industry and your business's potential for profitability. It can help potential investors gauge your bakery's revenue-generating capacity and projected returns on investment.

How to create a bakery business plan in 6 steps

So how do you go about crafting your plan? In the upcoming sections, we'll guide you through six essential ingredients of a bakery business plan.

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

An executive summary is a concise and compelling overview of your bakery business plan, designed to capture the reader's attention and provide a snapshot of the entire plan. This section should be written last (after you've crafted the rest of the plan), to ensure that it accurately reflects the key points and highlights of your bakery business venture.

When writing an executive summary for a bakery business plan, aim to include the following elements:

Briefly describe the core concept of your bakery business. Highlight what sets it apart from competitors and emphasize your unique value proposition.

Summarize the market research you've conducted to identify your target audience, market trends and growth opportunities.

Provide a high-level overview of your financial projections, including revenue estimates, startup costs and potential profitability.

Outline the short-term and long-term goals you aim to achieve with your bakery business.

Introduce key members of your team and highlight their relevant expertise for this type of business .

Mention any funding requirements you have and how the funds will be utilized to support the bakery's growth.

Conclude with a compelling statement that encourages readers to explore the rest of the business plan.

Example of an executive summary for a bakery

"Sweet Delights Bakery is a specialty bakery poised to revolutionize the local dessert scene with its artisanal approach and innovative flavors. Our commitment to using organic and locally-sourced ingredients sets us apart in a market craving healthier alternatives. With a target demographic of health-conscious consumers and a focus on catering to dietary preferences, we anticipate tapping into an underserved niche.

Our projected revenue for the first year is $300,000, with startup costs totaling $100,000. By year three, we aim to achieve profitability and expand our reach to neighboring towns. With a team that brings together culinary expertise and marketing prowess, we are well-equipped to execute our vision.

We seek $75,000 in funding to secure a prime location, procure high-quality equipment and launch an impactful marketing campaign. Sweet Delights Bakery is poised to become a local favorite and a go-to destination for unique and guilt-free indulgences."

02. Business and domain names

Naming a business is critical for brand recognition and online presence. A business name generator can help spark ideas and ensure your restaurant business name aligns with your bakery's identity.

For instance, if your bakery focuses on gluten-free treats, a name like "PureBites Bakery" reflects your commitment to wholesome ingredients. Once you decide on a company name, ensure that a corresponding domain name is available. Your domain name should be memorable, easy to spell and closely related to your bakery's name. Avoid complex names that can confuse potential customers.

Once you’ve landed on a business name, you’ll want to learn how to register a business .

03. Market analysis and research

Including a comprehensive market analysis in your business plan is crucial for understanding the competitive landscape and shaping your business strategy. Conduct market research to identify your target audience's preferences, behaviors and spending habits. Analyze your competitors' strengths and weaknesses to find opportunities for differentiation.

By understanding market trends and consumer needs, you can tailor your bakery's offerings and marketing messages effectively. Use this analysis to develop a unique value proposition that resonates with your target customers, ultimately setting your bakery apart in a crowded market.

04. Operations plan

The operations plan is a pivotal section of your bakery business plan, outlining the practical aspects of running your business effectively. This includes selecting an appropriate location, detailing the layout and design of your premises, identifying the necessary equipment for baking (alongside packaging and display) and specifying your staffing needs.

For instance, in the operations plan, you would detail how your bakery's layout promotes efficient workflow and customer engagement. You'd also discuss equipment like ovens, mixers, refrigerators and display cases that are essential for your bakery's operations. Staffing needs would include roles like bakers, decorators, cashiers and customer service representatives.

05. Marketing and advertising plan

The marketing and advertising plan outlines how you'll promote your bakery business to your target audience. Consider a mix of strategies such as using social media platforms, such as Instagram or Facebook, to showcase your visually appealing baked goods and engage with customers.

Additionally, you can build local partnerships by collaborating with local cafes or businesses for cross-promotions. This can include hosting tastings or events to introduce your products to the local community.

Consider making a website where customers can browse your offerings and place orders. A website builder like Wix can help you get online fast. From there, you can market and sell your goods as well as build an email list for newsletters and promotions to keep customers informed about new products.

Need some help building up your brand? Check out these bakery logo ideas and Wix’s free logo maker , as well as our guide on how to make a bakery logo .

06. Financial plan

The financial plan is a crucial part of any bakery business plan as it outlines the financial aspects of your venture. It includes cost to start an LLC if relevant, other startup costs, projected revenue, expenses and profitability timelines. Clearly define your funding needs, whether through personal investment, loans or investors.

The financial plan should encompass a break-even analysis, highlighting the point at which your bakery covers its expenses and starts generating profits. It's essential to provide realistic financial projections based on market research and industry benchmarks.

Bakery business plan example: SweetBite Bakery

Part 1: executive summary.

SweetBite Bakery is a gourmet dessert destination set to captivate dessert enthusiasts with its delectable creations. Our commitment to crafting unique and artistic desserts using premium ingredients positions us as a standout in the bakery industry. With a focus on custom-designed cakes and intricate pastries, we aim to elevate the dessert experience for our customers.

We anticipate generating $500,000 in revenue in our first year, with a startup investment of $150,000. Our team of skilled pastry chefs and experienced business professionals are well-prepared to execute our vision. We're seeking $100,000 in funding to secure a prime downtown location, invest in state-of-the-art baking equipment and launch an immersive marketing campaign.

Part 2: company and domain names

Company name: SweetBite Bakery

Domain name: www.sweetbitebakery.com

Part 3: marketing analysis and research

Through comprehensive market research, we've identified a niche for exquisite custom desserts in our target area. The bakery landscape lacks specialized gourmet options, providing us a significant opportunity for differentiation. Consumer preferences for unique, visually appealing treats and the growing trend of personalized celebrations further support our concept.

Part 4: operations plan

Location: We'll secure a charming storefront in the heart of the city, attracting foot traffic and enhancing visibility.

Premises: The bakery's interior will exude a cozy yet sophisticated ambiance, reflecting our premium offerings.

Equipment: Our bakery will be equipped with top-tier ovens, mixers and presentation displays to ensure the highest quality.

Staffing: We'll hire skilled pastry chefs, decorators and front-of-house staff to provide exceptional customer service.

Part 5: marketing and advertising plan

Social media: Engage customers through Instagram by showcasing our artistic creations and behind-the-scenes processes.

Local partnerships: Collaborate with local event planners and venues for special occasions and catering opportunities.

Tastings and events: Host weekly dessert tastings to introduce our offerings and build a loyal customer base.

Online presence: Launch an interactive website where customers can explore our menu order customized treats and stay updated on our latest creations.

Email marketing: Build an email subscriber list to share exclusive promotions, seasonal specials and upcoming events.

Part 6: financial plan

Startup investment: $150,000 (from personal savings and a small business loan)

Projected first-year revenue: $500,000

Projected first-year expenses: $350,000

Profitability timeline: By the end of the second year

Bakery business plan example: Wholesome Harvest Bakery

Wholesome Harvest Bakery is a health-conscious bakery determined to revolutionize baked goods by focusing on natural, nutritious ingredients. Our dedication to producing wholesome treats and accommodating various dietary preferences positions us as a pioneer in the health-oriented bakery market.

In our first year, we anticipate generating $350,000 in revenue, with startup costs totaling $100,000. Our diverse team of nutritionists and bakers are poised to execute our mission. We're seeking $75,000 in funding to secure a local storefront and invest in equipment that aligns with our health-focused approach.

Company name: Wholesome Harvest Bakery

Domain name: www.wholesomeharvestbakery.com

Our market analysis reveals a growing demand for healthier bakery options due to increased health awareness. With a focus on gluten-free, vegan and sugar-free offerings, we aim to cater to health-conscious consumers seeking guilt-free indulgence.

Location: We'll secure a location near fitness centers and health food stores to target our niche market.

Premises: Our bakery interior will reflect a fresh and natural ambiance, showcasing our commitment to health.

Equipment: We'll invest in specialty ovens and equipment that align with our ingredient-focused approach.

Staffing: Our team will comprise of nutrition experts, experienced bakers and customer service professionals.

Social media: Utilize Instagram and Pinterest to share health tips, recipe insights and showcase our nutrient-rich treats.

Local partnerships: Collaborate with gyms, wellness centers and yoga studios to cross-promote healthy living.

Tastings and events: Host workshops on healthy baking and nutrition, attracting a community of health enthusiasts.

Online presence: Develop a user-friendly website with detailed nutritional information, allowing customers to order online.

Email marketing: Regularly send out newsletters with recipes, health tips and exclusive discounts to our subscribers.

Startup investment: $100,000 (personal savings and a small business loan)

Projected first-year revenue: $350,000

Projected first-year expenses: $250,000

Profitability timeline: By the end of the first year

How profitable is owning a bakery?

Yes, owning a bakery business can be profitable, but it is important to note that it is not a get-rich-quick scheme. Bakeries have thin profit margins, so it is important to carefully manage costs in order to be successful. However, there are a number of things that bakery owners can do to increase their profitability, such as:

Offering high-quality baked goods and coffee

Providing excellent customer service

Marketing their bakery effectively

Offering catering services

Selling merchandise, such as aprons, cookbooks, and gift baskets

Controlling costs by using fresh, seasonal ingredients and making products in-house

It is also important to choose a good location for your bakery. A high-traffic area with good visibility is ideal. Additionally, it is important to consider the competition in the area. If there are already a number of successful bakeries in your area, you may need to offer something unique to differentiate yourself from the competition. If you are willing to put in the hard work and dedication, owning a bakery business can be a rewarding and profitable experience. Here are some tips for increasing the profitability of your bakery business:

Focus on high-margin items. Some items, such as cakes and cupcakes, have higher profit margins than others, such as bread and pastries. Focus on offering a mix of high-margin and low-margin items to keep your customers happy and your profits up.

Reduce costs. There are a number of ways to reduce costs in your bakery business, such as using energy-efficient equipment, buying in bulk, and making products in-house.

Increase sales. There are a number of ways to increase sales in your bakery business, such as offering catering services, selling merchandise, and offering loyalty programs.

Market your business effectively. Make sure people know about your bakery by marketing your business online and offline.

By following these tips, you can increase the profitability of your bakery business and achieve your financial goals.

What are the disadvantages of owning a bakery?

Owning a bakery can be a rewarding experience, but it's important to be aware of the disadvantages before starting a bakery business. Some of the disadvantages of owning a bakery include:

Long hours and hard work. Bakers often work long hours, especially during busy times, such as holidays and weekends. Baking is also physically demanding work, and bakers often have to stand for long periods of time.

Thin profit margins. The profit margins for bakeries are thin, so it's important to carefully manage costs in order to be profitable.

Competitive landscape. The bakery industry is a competitive one, so it's important to differentiate your bakery from the competition.

Perishable products. Bakery products are perishable, so it's important to manage inventory carefully to avoid waste.

Food safety concerns. Bakeries must adhere to strict food safety regulations to protect customers from food poisoning.

Reliance on suppliers. Bakeries rely on suppliers for ingredients and supplies. If a supplier has a problem, it can disrupt your business operations.

Seasonality. Bakery sales can vary depending on the season. For example, sales may be higher during the holidays and lower during the summer months.

Customer expectations. Customers expect fresh, high-quality baked goods. It's important to meet these expectations in order to keep customers coming back.

Employee turnover. The bakery industry has a high employee turnover rate. This can make it difficult to find and retain qualified staff.

Despite the disadvantages, owning a bakery can be a rewarding experience. Bakeries play an important role in the community, and many bakers enjoy the satisfaction of creating delicious and beautiful baked goods that people love.

What mistakes do startup bakeries make?

Some of the most common mistakes that startup bakeries make include:

Underestimating the costs. Starting a bakery can be expensive. It's important to carefully estimate all of the costs involved before starting your business. This will help you to avoid financial problems down the road.

Overestimating demand. It's important to be realistic about the demand for your baked goods. Don't overproduce baked goods or you will end up wasting money.

Not marketing their business effectively. Make sure to market your bakery business effectively in order to attract customers. Don't be afraid to invest in marketing strategies and advertising.

Not offering a diverse product mix. Offer a diverse product mix to appeal to a wide range of customers. Don't just focus on one type of baked good.

Not having a good business plan. A business plan is essential for any business, but it's especially important for startups. A business plan will help you to define your business goals, strategies and financial projections.

Bakery business plan FAQ

What is the most profitable bakery item.

The most profitable bakery item varies depending on the region and the type of bakery. However, some of the most profitable bakery items include:

Coffee and tea

What is the failure rate of bakeries?

Can i start a bakery with no money, are bakeries hard to start, want to create another type of business plan.

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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.  

Bakery Business Plan Example – 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, bakery business plan example pdf.

Download our bakery business plan pdf here. This is a free bakery business plan example to help you get started on your own bakery plan.

How to Finish Your Bakery Business Plan in 1 Day!

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Bakery Business Plan PDF Example

• February 28, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful bakery. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your therapy bakery’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a bakery business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the food&beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your bakery concept into reality. Let’s dive in!

Our bakery business plan is designed to encompass all crucial elements required for a thorough strategic approach. It details the bakery’s operations, marketing strategy , market environment, competitors, management team, and financial projections, ensuring a holistic view of the business’s path to success.

• Executive Summary : Offers an overview of your bakery’s business idea, market research , management team, and financial plans.
• Bakery & Location: Describes your bakery’s layout, features, and why its location is perfect for customers.
• Operations: Outlines daily bakery operations, including baking schedules, staffing, and ingredient sourcing.
• Key Stats: Provides figures on the size and growth of the bakery market.
• Key Trends: Points out new trends in the bakery industry, such as the rise in health-conscious and specialty products.
• Key Competitors : Discusses major nearby bakeries and how your bakery offers something different.
• SWOT: Analyzes strengths, weaknesses, opportunities, and threats related to your bakery.
• Marketing Plan : Outlines methods for promoting your bakery and keeping customers coming back.
• Timeline : Lists important goals and milestones from the beginning through the first year.
• Management: Shares info on who runs the bakery and their responsibilities.
• Financial Plan: Forecasts the bakery’s financial outlook over 5 years, including income, profit margins, and main expenses.

Bakery Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your bakery’s business plan, offering a concise overview of your bakery and its offerings. It should detail your market positioning, the range of baked goods and confectionery items you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your bakery will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your bakery’s unique selling points that differentiate it from these competitors. These could include special dietary options like gluten-free or vegan products, artisanal or locally sourced ingredients, or a particular specialty in certain types of baked goods.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the bakery’s success. This could involve their culinary expertise, business management experience, or community relations. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your bakery’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a Bakery, the Business Overview section can be concisely divided into 2 main slides:

Bakery & Location

Briefly describe the bakery’s physical environment, emphasizing its design, warmth, and the inviting atmosphere that welcomes customers. Mention the bakery’s location, highlighting its accessibility and the convenience it offers to customers, such as proximity to community centers, schools, or ease of parking.

Explain why this location is advantageous in attracting your target clientele, which might include local residents, businesses looking for catering options, or foot traffic from nearby shopping areas.

Detail the range of baked goods and products offered, from bread and pastries to custom cakes and specialty items. Outline your operational strategy, including sourcing of ingredients, baking schedules to ensure freshness, and any unique services such as custom orders or catering.

Discuss your pricing strategy , ensuring it reflects the quality of ingredients and craftsmanship involved and matches the market you’re targeting. Highlight any special offerings, loyalty programs, or community events that provide added value to your customers, encouraging repeat visits and customer loyalty.

Make sure to cover here _ Bakery & Location _ Operations

Market Overview

Industry size & growth.

In the Market Overview of your bakery business plan, begin by assessing the size of the bakery industry and its potential for growth. This evaluation is essential for grasping the market’s extent and pinpointing opportunities for expansion.

Analyze factors such as the increasing demand for baked goods, both traditional and innovative, and how consumer preferences are shaping the industry.

Key market trends

Continue by discussing recent market trends that are influencing consumer behavior and preferences in the bakery sector. This might include a growing interest in artisanal and craft baked products, the surge in popularity of gluten-free and vegan options, and the integration of international flavors and ingredients into traditional bakery products.

Highlight the demand for high-quality, fresh, and specialty baked goods that cater to diverse dietary needs and cultural tastes, as well as the trend towards more health-conscious and sustainable baking practices.

Key competitors

Next, examine the competitive landscape, which encompasses a variety of bakeries from luxury patisseries to affordable local bakeries, as well as the rise of home baking and online bakery businesses.

Focus on what sets your bakery apart, whether it’s through unparalleled customer service, a distinctive selection of baked goods, or expertise in a particular baking style or dietary niche.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for the bakery , highlighting Strengths (such as artisanal baking skills and a unique range of products), Weaknesses (including potentially high ingredient costs or stiff competition), Opportunities (for example, a growing interest in specialty and health-conscious baked goods), and Threats (such as fluctuations in raw material prices or changes in consumer spending due to economic conditions).

Marketing Plan

Next, formulate a marketing plan that details strategies for attracting and retaining customers through targeted advertising, seasonal promotions, a compelling social media presence, and engagement with the local community. Consider loyalty programs, baking workshops, and collaborations with local businesses as part of your promotional activities.

Finally, establish a detailed timeline that marks key milestones for the bakery’s launch, marketing initiatives, customer base development, and potential expansion goals. This timeline should guide the business towards achieving its objectives with precision and clarity, ensuring systematic progress in a competitive market.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the bakery’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the bakery towards its financial and operational goals.

For your bakery business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your bakery’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your bakery business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Privacy Overview

• Inspiration
• Ingredients

Starting Your Own Pastry Business: Practical Strategies for Success

Start your pastry business journey confidently with practical strategies. learn about unique selling propositions, market research, business planning, kitchen setup, ingredient sourcing, branding, marketing, customer service, finance monitoring, and adapting to industry changes..

Learn From Pastry's Best

Jump to section, develop a unique selling proposition (usp), conduct market research, create a business plan, set up your kitchen, source quality ingredients, develop a strong brand identity, implement effective marketing strategies, provide excellent customer service, monitor finances closely, stay flexible and adapt to changes, stay up to date with pastry trends.

Got the baking part down? Now let's turn that passion into a thriving business. While amazing pastries are essential, building a lasting venture requires savvy strategies. Here are practical tips that might surprise you.

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Differentiate your pastry business by offering something unique that sets you apart from competitors. This could be a signature pastry item, a focus on locally-sourced ingredients, or a specialized niche such as gluten-free or vegan options.

Find Your Focus: Don't try to be everything to everyone! Specializing in a specific pastry type (like French macarons) or catering to a niche (like vintage cakes) gives you an edge. Learn from Mankoo Sisters experience.

Understand your target market and their preferences by conducting market research. Identify your ideal customers, their buying habits, and the demand for pastry products in your area.

Who's Your Ideal Customer? Busy professionals, families looking for special occasion treats, event planners? Knowing your target market informs everything from pricing to marketing.

Outline your business goals, target market, marketing strategies, financial projections, and operational plans in a comprehensive business plan. This will serve as a roadmap for your pastry business and help secure funding if needed. For a sample bakery business plan for inspiration, check out this article: Unlocking Success: Sample Bakery Business Plan.

Home vs Storefront: Each has pros and cons. Home-based is often lower startup cost, but check your local regulations about food businesses and zoning restrictions.

Licensing and Permits: Don't skip this step! Health inspections and operating licenses are likely required, even for small businesses.

Insurance Matters: Protect your investment with liability insurance and consider product insurance in case of mishaps.

Ensure your kitchen is equipped with the necessary tools and equipment for pastry production, including ovens, mixers, refrigeration, and storage facilities. Consider the layout and organization of your kitchen to optimize efficiency.

Use high-quality, fresh ingredients to produce delicious pastries that keep customers coming back for more. Establish relationships with reliable suppliers and prioritize ingredient quality in your purchasing decisions.

Create a memorable brand identity that reflects the values and personality of your pastry business. This includes your business name, logo, packaging, and overall aesthetic. Consistency is key in building brand recognition and loyalty.

Brand Vibe: Will your aesthetic be rustic-chic, playful and bright, or sophisticated? Consistency in your visual presentation helps you stand out.

Utilize a mix of online and offline marketing tactics to promote your pastry business and attract customers. This may include social media marketing, website development, email newsletters, local advertising, and participation in events or farmers' markets.

Visuals are EVERYTHING: Invest in high-quality photos or learn basic food photography yourself. Social media is your storefront!

The Local Advantage: Partner with complementary businesses like coffee shops or event spaces. Offer samples or create a special collaboration menu item.

"Behind the Scenes" Magic: People love seeing the process! Share snippets of your baking on social media to build connection and anticipation.

Focus on delivering exceptional customer service to build positive relationships with your customers and encourage repeat business. Be responsive to feedback, address customer concerns promptly, and go above and beyond to exceed expectations.

Keep track of your expenses, revenues, and cash flow to ensure the financial health of your pastry business. Implement budgeting and accounting practices, and regularly review your financial performance to identify areas for improvement.

It's Not Just Ingredients: Accurately track ALL costs – ingredients, packaging, your time, overhead like utilities, even marketing expenses. Don't undersell yourself!

Value Proposition: Customers pay for more than just the final product. Emphasize quality ingredients, unique recipes, and your expertise to justify your pricing.

Tiered Offerings: Could you have a few signature items at a premium price, alongside more budget-friendly options? This widens your customer base.

The pastry industry is dynamic and constantly evolving, so be prepared to adapt to changing market trends, customer preferences, and industry regulations. Stay informed, stay flexible, and be willing to pivot your strategies as needed to stay competitive.

Insider Tip: Don't fear starting small! A limited menu mastered is better than a scattered offering. Perfect your recipes, build a following, and scale thoughtfully.

You've Got This!

Starting your own pastry business requires careful planning, dedication, and a willingness to take risks. By following these practical strategies and staying focused on delivering quality products and exceptional service, you can build a successful and thriving pastry business that delights customers and fulfills your entrepreneurial dreams.

Enroll new pastry skills, unleash your creativity, boost sales, enhance career opportunities, transition into an instructor role yourself, or simply discover a fresh passion. Learn with Cédric Grolet , Pierre Hermé , Ramon Moratò , Frank Haasnoot and more.

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How To Write A Bakery Business Plan?

• Updated on May 11, 2023

Are you on the edge of starting your own bakery shop ? Owning a bakery can be hard. However, before you start baking and selling delicious goodies, you need to create a bakery business plan. A business plan is a complete document that outlines your bakery’s goals, strategies, and financial projections. In this blog, we will help you on how to write a baking business plan.

Table of Content

Bakery business plan.

• The Sections of a Bakery Business Plan

How to Promote a Home Baking Business?

Sample bakery business plans, what is the long-term potential of the bakery business.

• What is the Benchmark Profit Margin in a Bakery Business?

Before we dive into the steps on how to write a business plan , let us first define what a bakery business is. A bakery is a food service establishment specializing in producing and selling baked goods such as bread, pastries, cakes, and cookies. Bakeries can vary in size. They can be either small home-based businesses or larger commercial operations.

A bakery is a food service establishment , but it is not just any restaurant or food establishment. Bakeries specialize in baked goods and desserts, which makes them a unique business. Unlike restaurants that may have a broad menu, bakeries typically focus on specific items like pastries, bread, cakes, and cookies.

What should include a Bakery Business Plan?

Summary of patisserie business plan.

The summary is the last section of your baking business plan and it’s the most important part of the baking business plan. Patisserie business plan gives readers an overview of your bakery business, including your mission statement, target market, products or services, and financial projections. The executive summary should be compelling enough to entice the reader to continue reading your business plan.

Business Description of Patisserie Business Plan

In the business description section, you should describe your bakery business in as detail as possible. This includes the type of bakery you want to open (e.g., bread shop, patisserie), the location, the target market, and the unique selling proposition of your bakery.

Market Analysis of Bakery Business Plan

In the market analysis section , you should conduct thorough research on your target market, industry trends, and competitors. You need to understand your customers’ needs, preferences, and buying habits to produce the right product and develop marketing strategies that customers like. Because of these reasons making a market analysis for your baking business plan is crucial.

– This image is created from Business Plan Excel Template by Someka –

Products and Services of Patisserie Business Plan

In the products and services section, you should describe the baked goods and desserts you plan to offer, including their ingredients, flavors, and pricing. You can also discuss any special promotions, seasonal products, or custom orders you plan to offer.

Marketing of Bakery Business Plan

In the marketing, you should describe how you plan to promote your bakery business and make customers come to your place. Baking business plans one of the most important parts is the marketing of the baking business plan . This includes advertising, social media marketing, word-of-mouth referrals, and customer loyalty programs. What’s included in the business plan for the bakery business

What should a business plan include?

A baking business plan should include the following sections:

• Business Introduction
• Organization

Making your plan clear, concise, and well-organized is essential. A proper business plan will not only help you secure financing but will also serve as a guide for your bakery business’s success .

Starting a home baking business is an excellent way to turn your passion for baking into a profitable home baking business . However, promoting your home baking business can be challenging. That’s why you will need a home bakery business plan .

Additionally , Someka’s home baking business plan can help you from starch with your home baking business. Home bakery business would be closer to the baking business plan. The only difference about the home baking business plan would be the costs and placement. Also, you need time planning how to promote a home baking business .

The best way to promote a home baking business is through digital media. You can search for how to promote a home baking business and you will see social media first.

There are so many people searching for how to promote a home baking business. You should look for digital media and spend some marketing budget on them. In this way, you can promote your home baking business.

You can find so many different options for sample business plans . Someka’s free business plan option is the best. Also, we update the business plan for bakeries. In summary, you can download our sample baking business plan for free and try it! In this way, you can gather information about sample business plans and start writing your own business plan .

The baking business is sustainable long-term work to do since we all eat bakery products . So, there was always demand for it and there will be.

That’s why opening a bread shop in a nice location, will be a profitable business.

– This image is the NPV & IRR Calculation sheet from Bakery Financial Model Excel Template by Someka –

Where Can I Download a Bakery Business Plan Template?

Firstly, you can download a a ready to use template for your bread shop feasibility.

How to start a bakery business?

You can start a bakery shop by creating a bakery business plan. Writing a bakery business plan may seem daunting, but it’s essential to have a roadmap to follow to ensure the success of your business.

What is the benchmark profit margin in a bakery business?

Finally, the Net Profit Benchmark allows business leaders to evaluate if their costs and productivity are under control, just as other performance metrics. Thus, a reliable benchmark for evaluating a bakery business’s success is the Net Profit Benchmark. Owners choose the amount they pay themselves, therefore Net Profit (bos) is used as a way to normalize the results for comparability.

For instance, a low Net Profit result suggests the cost of goods, operating costs, and employee productivity need more examination. The prospect for expansion and investment may be indicated by a high net profit, though.

Recommended Readings:

What must an entrepreneur do after creating a business plan?

How to start a business successfully?

Related Posts

Opening a Bakery?

How to write a bakery business plan (fast), step by step (actionable) case study.

Think you are the next great baker? Well, you’ll need a business plan! That’s why we have put together a detailed Bakery Business Plan example for you to take ideas from.

There’s only one thing whose aroma is sweeter than the cakes you’ve baked or the bread you’ve made… and that’s the smell of a successful business!

Bottom line…

If you want to get baking with this business plan…

#1 Bakery Business Plan Sample – Executive Summary Section

The Executive Summary section of your business plan outlines what your business does. It summarizes the company’s key points and introduces the rest of the business plan content.

The Executive Summary is incredibly important because it might be the only section a busy person reads; so it should always include:

• Who the company is – In the Company section of the executive summary, we’ve talked about the key staff member and the expertise and experience he brings to the table, as well as the proposed project and the opportunities it will bring to the local area.
• What we sell – What the problem is and how The Bakery Company plans to solve the problem.
• Target Market – Who your customers are going to be.

So, if you’re looking at starting a bakery business or simply looking for a cake shop business plan, this guide will give you all the ideas you need to write a complete business plan for bakery products.

Check it out and feel free to lift anything you want.

The #Executive #Summary outlines what your business does, summarizes your key points, and prepares investors for the rest of your #businessplan. It’s vital you provide a solid case for your business idea, which is why your #executive #summary is so important! Tweet

Executive Summary

The Bakery Company is a cake and sugar sculpture company based in Chicago. Owned and run by innovative baking and sugarcraft entrepreneur Ali Baker, the company offers a wide range of products and services to a broad client base. Ali is looking to develop more products in her range, and to introduce these into retail outlets and other suppliers nationwide. She also plans to take the entire brand nationwide over the next few years, and is seeking investment to help her do this.

What We Sell

In addition to couture cake designs, The Bakery Company offers a wide range of delicious and innovative products that are unique to the brand – and which are currently not being offered elsewhere in the region. There are other cake companies in the region, but Ali is looking at ways to diversify so that her brand stands out. One of these ways is to specialize in unique sugar sculpting designs that offer a lifelike effect, rather than the cute and cartoon-based offerings of her competitors. This approach has been a real success with clients, and more and more orders are been received thanks to this innovative approach to sugar sculpting.

The Bakery Company also offers baking and sugarcraft workshops for adults and children – and these are proving a real hit, especially given the appeal of baking right now thanks to the many bakery shows on TV.

Who We Sell To

The Bakery Company has a broad and very diverse range of clients. This really is a company that has something for everybody and which appeals to all ages.

From the bride and groom looking for a stunning bespoke couture wedding cake to the stressed parent looking for a unique and fun party idea for their child, Bakery Company can offer it all. Corporate clients also make up a large part of the client base, and Ali is exploring more services to offer corporate clients, such as sugarcraft workshops as teambuilding events.

From a product perspective, The Bakery Company’s Pick ‘n’ Mix Brownies make up a large proportion of sales, and are always sold out at wedding fairs and other marketing events. This is an area that Ali would really like to push out to mass market, and which has real potential to be taken on board by retailers nationwide.

#2 Bakery Business Plan Company Profile Section

The Company Profile section in this small bakery business plan sample can also be identified as your Company Description.

If it’s well written, your potential investors will find easy to understand your business model, your mission and goals, and how it’s going to meet the needs of your target market.

So whether it’s a cupcake business plan, an online bakery business plan, or pastry shop business plan you’re after, we hope you find the following information useful.

For the purpose of this business plan, we’ve included the following:

• The Company and Management Team
• Location and Facilities

Mission Statement

Company Overview

The Bakery Company was launched in 2014 by Ali Baker. The company is run from Ali’s home and there are currently no other locations in operation, although venues have been hired in the past for various workshops.

The address of the business is: Ali’s House, Chicago, USA.

The business is currently operating from a home kitchen and office, and is owned and run by Ali Baker. Ali is the sole Managing Director, but there are plans to employ more staff as the business grows.

Management Team

Ali is currently the sole member of the management team at The Bakery Company, and is responsible for all business operations. As a highly skilled professional, she is passionate about the business and in building a household name that is synonymous with innovation, quality and creative flair.

Ali has a deep interest in the science behind baking and sugar sculpture, as well as the art of baking. Her expertise as a patisserie professional, sugar artist, chocolatier, chef and food writer, has helped her get the company noticed and build a strong reputation. She also ensures she keeps up to date with the latest food industry trends so that she can stay ahead of her competition and meet market needs.

Creativity is strong at The Bakery Company, and assistance may be needed from a marketing and business growth perspective. Ali is hoping that any potential investor will be able to act as a mentor and give advice on how best to move the business forward.

As the business grows, Ali will be looking to recruit more staff.

Locations and Facilities

At present, The Bakery Company operates solely from Ali’s home kitchen and office. This works well at present, and also saves on costs associated with renting accommodation. However, as the business grows, alternative accommodation will be sought. This may be in the form of a dedicated business premises, or the company may look to secure space within hospitality venues such as hotels.

Tagline: Mouthwatering masterpieces enrapturing palates and capturing the imagination.

Mission Statement: A passion for creativity and innovation is at the heart of everything we do here at The Bakery Company. Our mission is to provide our customers with uniquely designed, lovingly crafted cakes for all of life’s celebrations. Our artisans are dedicated to providing a simple, friendly and affordable way to order cakes, learn new skills and enjoy delicious handmade treats. From the gloriously traditional to the utterly mindblowing, there is no limit to our creativity and commitment.

A #mission #statement is a short statement of an organization's purpose and shows the goal of its operations: what kind of product or service it provides, its primary customers or market, and its geographical region of operation. Tweet

Company History

The Bakery Company first opened its oven doors in 2014, and since then owner and entrepreneur, Ali Baker has taken the company from strength to strength. What started out as a casual home business supplying cakes to friends, has now grown to a thriving business supplying services and products to a wealth of different clients including brides, parents, children and corporate clients.

The company is operated from, and has always been operated from Ali’s home, but once the company grows, the plan will be to move to larger, permanent premises. At present, with the current volume of orders, the home kitchen and office set up is sufficient, not to mention cost effective.

Since The Bakery Company first started, more products and services have been added, including:

• Wedding cakes Celebration cakes Corporate cakes
• Cupcakes and Pick ‘n’ Mix Brownies
• Sugar Sculpture workshops for adults and children

Ali has also invested in good quality branding and design for the company, and this will really help the company to stand out and attract attention.

#3 Bakery Business Plan Products & Services Section

The Products and Services section needs to be much more than simply a list of what your new business is going to provide.

This is especially important if you’re looking to get funding; so make sure that you showcase the value, the quality, and the benefits of your business.

Ask yourself:

• What sets you apart from your competitors?
• Why would people buy from you as opposed to your competitors?

Here’s the example.

Products and Services

The Bakery Company produces a wide range of homemade, hand crafted and bespoke products, and runs a number of workshops for children and adults. Below is a detailed summary of each product and service, and the benefits it provides to customers.

Bakery and Sugar Confectionery

Celebration Cakes

• Wedding Cakes including Bakery Company Signature Cakes and Tiered Wedding Couture Cake Sculptures
• Pick ‘n’ Mix Brownie Bites (sold by the bag) Triple Chocolate Brownie Bites (sold by the bag)
• Double Chocolate Chip Brownie Slab (sold by the bag) Big Bonkers Brownie (sold by the bag and box)

Pick ‘n’ Mix Wedding Brownie Bars

• Wonka Wedding Bar – A great way to keep the children amused at weddings. Everything is supplied including a Willy Wonka style cart serving  scrumptious brownie bites, four sweet options, and one topping sauce.
• Cake Cocktail Bar – Who says kids get all the fun? The cake cocktail bar offers guests six different candy/chocolate shard options, two toppings, and The Bakery Company’s delicious gluten-free brownie.

The Bakery Company Workshops

• Children’s Cake Decorating And Sugar Workshops – What a great alternative for a children’s’ birthday party! The Bakery Company supplies all the fun, and each child gets to take home their wonderful creations as well as the obligatory party bag and their own Bakery Company character.
• Adult Sugar Sculpture Workshops – At the sugar sculpture workshops, The Bakery Company shares techniques and useful tips on how to make life-like cake.

Competitors

The baking and confectionery industries are fiercely competitive, and right now even more so thanks to the baking revolution that has taken the US by storm. Ali is very aware of the competition in the marketplace which is why she has taken her brand in a completely different direction, offering customers something unique and not available from any of her competitors.

Her lifelike sugar sculptures are extremely popular with customers looking for an alternative to cute or cartoon-like character sculptures. As a result, Ali is earning quite a reputation for this style, and plans to develop this technique further. Flavor is something else that really stands out, and Ali experiments with many exciting flavor combinations to give her clients the wow factor and a unique twist on more traditional options. All products are made at home using the freshest ingredients that are selected from local suppliers wherever possible.

The company also offers a gluten-free range which Ali is very passionate about, being gluten-free herself. She has worked hard to develop a gluten-free cake that doesn’t compromise on taste or texture – a common problem with other gluten-free products.

Product & Service Development

Product development is something very close to Ali’s heart, and she will be looking to develop more innovative and creative products in the future.

A new website will also be launched shortly and will detail all products currently available. Customers will be able to place orders, make bookings and send enquiries.

Sourcing and Fulfillment

The Bakery Company uses a number of suppliers that are used on a regular basis. There is no agreement in place with one supplier. Due to the variety of products that are required by the business, it would be quite difficult to source from one supplier. However, Ali does review price points to ensure she is getting ingredients and sundry items at a competitive price, and many items are bought at wholesale price.

The company relies on the skills of Ali Baker to carry the brand forward and provide products and services. At present the only technology in use is a home computer on which invoicing, social media updates and other administrative business tasks are carried out. The company will also rely on a website and social media channels to attract new business and connect with customers and followers.

Intellectual Property

The Bakery Company is in the process of being trademarked.

#4 Bakery Business Plan Situation & Market Analysis Section

This section of a business plan is very often glossed over because more often than not, the business owner is so involved within their business, that it doesn’t occur to them that they can learn something by writing this down!

This section is one of the most important aspects of your Bakery marketing plan.

In fact, it defines where you currently are in terms of your market, product, customers, and competition. It also allows you to look at both internal and external factors and to review and document the strengths and weaknesses of your business, as well as identifying any opportunities and threats within your marketplace.

It can include:

Market Overview

Market needs, market trends, market growth, industry analysis, key customers.

• SWOT analysis

Here’s our example.

Your #Market #Analysis section of a business plan is one of the most important aspects of your marketing plan. It defines where you are currently in terms of your market, product, customer, and competition. Check out this example in our #Bakery #BusinessPlan! Tweet

Target Market

One of the great things about The Bakery Company is that it really offers something for everyone. Ali has really taken the time to think her target market through, and there is no demographic she has left out.

Catering for all ages from 4 upwards, the company targets and sells to mostly women, but appeals to anybody looking for unique cakes, a fun twist, or an enriching learning experience.

While the younger generation love children’s cakes, cupcakes, pick ‘n’ mix brownies and the brownie bar, older customers are more interested in sophisticated cake creations, cakes for corporate events and learning how to make their own stunning cakes and sculptures at home.

Cake couture trends are very much affected in the same way as fashion couture trends. Right now, hand painted cakes are very much the “in” thing, but this will change in time. Ali prides herself on keeping up with the latest trends, and of course catering to the unique needs of her target audience.

The Bakery Company solves a wide range of problems that customers experience. Here are just some of those solutions:

• Customers often lack the skills and time to create a cake to the same high standards of a professional couture cake. For that reason, they will approach The Bakery Company for a bespoke design that is sophisticated, authentic and which they would be able to find anywhere else.
• Creativity and innovation is very strong within the company, and everything produced is a unique design. Ali does not offer basic, “off the shelf” style cakes and instead focuses on the extraordinary and ground breaking.
• The company produces some of the best gluten-free products. Being gluten-free herself, Ali has mastered the perfect recipe without compromising on taste or texture. This is a huge market to leverage and more products will be introduced as the company expands.
• Workshops are offered at an extremely high standard and structured to make people believe that anything is possible with a little imagination and time.

Other similar companies in the region simply aren’t offering this bespoke, high-quality service or such a diverse range of innovative products. Consumers are always looking for that little something extra that is going to make their event stand out from the crowd and be remembered for all the right reasons. It is these little innovative details that Ali strives to offer.

As mentioned previously in the business plan, this is an industry that never stays the same, and trends are driven very much by consumer demand. As a result, Ali constantly reviews and evaluates the products and services she offers to ensure she stays ahead of the competition and provides what her customers want.

In order to keep up with the latest market trends, she has also signed up with a number of newsletters from industry leaders and innovators and has joined a number of organizations including The Chicago Weddings consortium, The Sugar Craft Guild, Cake Decor and Made in Chicago. These organizations often hold local and national events at which The Bakery Company can exhibit.

Social media can also often highlight shifts in market trends and a close eye will be kept on the company’s social media channels to see what people are talking about, and what is hot right now.

Celebration cakes have been an integral part of Western life since the 19th century. Today, no party or wedding would be complete without a stunning baked creation taking center stage. Since hit TV show, ‘The Chicago Bake Off’ aired in 2012, the US has been taken over by something of a baking revelation, and this is great news for businesses like The Bakery Company. Ali wants to take this baking fever one step further, offering customers sophisticated and innovative cakes that are one-of-a-kind couture creations, and something that simply cannot be found elsewhere.

Consumers no longer want supermarket birthday cakes, or a traditional wedding cake. Today, it is about the wow factor and creating cakes that are showstoppers all on their own. It is this passion that The Bakery Company wants to promote, in both its products and its workshops, as well as showing that the only limit is the imagination when it comes to creating a stunning cake, brownie or sugar sculpture.

The Bakery Company spans a number of different industries, including hospitality, wedding supplies, catering, and art and education.

Reputation is extremely important for the company as many orders will be placed through word of mouth and repeat business. The website will also play a big part in the marketing strategy of the business as will social media and competition entries. Ali has already taken part in a number of competitions, and plans to enter more in the future as this is great exposure for the brand.

Buying decisions will also be very much visually led, and it is therefore important that the business focuses on showcasing products in the most professional and detailed way possible. Professional photography and graphic design will therefore be very important for the marketing process.

As mentioned previously, key customers for the business will span all age groups, and will come from all walks of life. Below are details of each consumer group, and how the company plans to market to these individuals.

Parents and Children

The company offers a range of products and services aimed at parents and children. Birthday parties, brownie bars and workshops are just some of the options available.

Wedding Couples

Every wedding needs a cake, and that cake should be a Bakery Company cake. The company offers a fully bespoke service, plus a range of economically priced, high-quality wedding cakes for couples on a budget.

Corporate Event Planners

The company will target corporate clients to take up products and services such as celebration cakes, the brownie bar – and also workshops as the perfect team-building event.

Party Planners

All parties deserve a splendid celebration cake. From birthdays to anniversaries and graduations to retirement parties, the Bakery Company can provide beautiful bespoke cakes of the very highest standard.

SWOT Analysis

Passion, innovation and creativity are at the heart of the business, and this shows in every product and service the company offers. Unique baked products are often hard to find, and Ali focuses on offering customers life-like sculptures, stunning cakes and techniques they may have not seen before. She is also very enthusiastic to pass on her skills to others, so that they can enjoy the thrill and pride of making something absolutely fantastic for themselves.

She has also taken the time to create a gluten-free cake and brownie recipe that tastes amazing: many recipes lack the right taste and texture, and this was a problem Ali was very committed to solving. The gluten-free market is huge, and with the right marketing and approach, it is a market that could really be capitalized on.

Ali has also invested in the best equipment and in herself by taking a number of highly sought after and respected training courses.

The Bakery Company doesn’t make “cheap” or “boring” cakes. They focus on the extraordinary and unique, rather than run of the mill cakes that can be found elsewhere. In doing so, there is a slight risk of turning potential customers away, but Ali believes this will only serve to strengthen her brand and reputation as a high-class, fairly-priced cake couture company.

The Bakery Company is new in a very competitive industry. They need to ensure they stand out, and continue to develop the brand.

Opportunities

There are many opportunities open to the brand thanks to the many services and products they supply.

Ali would like to explore working with organizations such as hotels and retail stores, and feel that the brand will really appeal to the mass market, especially the Pick ‘n’ Mix Brownie selection. She will also keep a close eye on her competitors to identify any gaps in the market and customer needs that she can fulfil.

The Bakery Company’s biggest threat is the competition. Ali must ensure that the company continues to keep high standards and build its reputation as one of the best couture baking companies around.

#5 Bakery Business Plan Marketing Strategy & Implementation Section

The marketing strategy section of your business plan describes who your customers are going to be and how you plan to communicate to them the services or goods you are offering.

If your potential customers are not made aware of your business, you are not going to stay in business for very long!

Defining a marketing strategy in your business plan highlights your understanding and knowledge and emphasizes what makes your business concept compelling. It also outlines how you plan to attract and maintain a customer/client base.

• How are you planning to advertise to your market?
• What is your competitive edge?
• What is your sales strategy?

So, without further ado…

Let’s look at the following example.

Strategy and Implementation

With so many products and services on offer at The Bakery Company, the company really does solve a lot of life’s little problems. From finding a wedding cake with wow factor to igniting a creative spark at one of their workshops, The Bakery Company fulfils many different needs for many different people.

Competitors offer similar products and services, but do not focus on innovative and bespoke creations as passionately as The Bakery Company. This difference will be communicated through social media, the website, video marketing and other mediums to attract customers to the brand, especially those looking for something a little unique and extra special.

The Bakery Company offers customers stunning cakes and confectionery at a very fair price that reflects the quality of the finished product. Customers looking for cakes that are more “masterpiece” than “mediocre” will be much happier to pay more, confident that their cake is unique to them and their special event.

Pricing structure is as follows:

• Pick ‘n’ Mix Brownie Bites – Quantity/price = $2.05 per 110g bag
• Triple Chocolate Brownie Bites (Gluten Free) – Quantity/Price = $1.65 per 100g bag
• Double Chocolate Chip Brownie slab – Quantity/Price = $1.55 per 100g bag
• Big Bonkers Brownie – Quantity/price = $5.95 per 600g bag/box

Brownie & Cake Bars

Wonka Wedding Bar: $69.95 – 25 children =$2.79 per child

For the children. Alternative to party bags/wedding entertainer. A eye catching modern twist – Willy Wonka style cart serving 4 different sweet options, 1 topping sauce, and brownie bites.

$20.00 per bar & set up. Time taken 1 hr.

Cake Cocktail Bar: $225.00 for 100 guests

6 different candy/chocolate shard choices, 2 topping choices (raspberry marmalade/chocolate ketchup/strawberry salsa & gluten free brownie bites.

$80.00 per bar & set up. Time taken 2 hrs.

Celebration cakes (round): 6″ basic $30.00 – 8″ basic $40.00 – 10″ basic $55.00 –12″ basic $70.00

Simple designs added start from $10.00/elaborate designs added start from $25.00 per design on cake.

Cake sculpture toppings start from $25.00.

Sugar flowers start from $1.00 per small flower – $2.00 per medium individual flower – $3.00 per large individual flower.

Wedding Cakes

• Tiered Bakery Company Signature These are cakes offered for couples on a smaller budget, yet still want something beautiful & delicious. – per Signature cake – $40-$55 – Time taken per cake = 90 minutes
• Tiered couture cakes – prices starting from $200.00 – Costing from $40.00 – Time taken from 90 minutes upwards
• Tiered cakes – prices start from $325.00 – Costing from $70.00 – Time taken from 90 minutes upwards
• Tiered cakes – prices start from $495.00 – Costing from $100.00 – Time taken from 2hrs upwards
• Tiered cakes – prices start from $625.00 – Costing from $125.00 – Time taken from 2 hrs upwards

Cake Sculptures

Small: Prices start from $95.00 Large – prices start from $295.00

Costing from: $5.00 (small) – $20 (large)

Children’s Cake decorating/sugar sculpting classes

$ 5.95 for 1 hr class. 8 – 12 children per class = $47.60 – $71.40 per hour.

Each child is provided with a party bag. Each bag contains: 1 Bakery Company cupcake recipe. 1 cupcake/sugar sculpture. 1 Bakery Company cake character card profile. 1 balloon.

As mentioned in previous sections, much of the business will be secured by word of mouth and repeat orders. The Bakery Company will also look to maximize the potential of online marketing, using their website and social media to attract more business.

Professional photography, video marketing, and online tutorials are just some of the ways that can be used to promote the company visually. The Bakery Company will also look at publishing as much shareable content as possible to attract more likes, followers, retweets and pins.

Blogging is something very close to Ali’s heart, and this is a great way to share fun ideas, tips, recipes, event news, competitions and special offers. The company will also make full use of social media accounts such as Twitter, Facebook, Google+ and Instagram. Once they have more video content, they will also start a YouTube channel. Live streaming over Facebook might be fun too! This is a new service that Facebook has introduced and opens lots of opportunities for customers to bake along while at home, à la Jamie Oliver and Gordon Ramsay.

Email marketing may be something to look into, but the company really wants to stay away from spam emails as this will only cheapen the brand. However, they will be following up with existing customers thanking them as well as sharing special promotions with them. This will be on an opt-in basis, so as to stick to Google best practices for email marketing. The company may also explore Pay-Per-Click marketing and retargeting at a later date, and this will be handled by a marketing agency on their behalf.

Printed marketing materials will also be useful at events the compny attends.

Distribution

The Bakery Company will offer its services through its website and also face to face. Many of the services the company provides include set up at a venue, or delivery of workshops and classes. They will also offer products – such as their brownie line – through the website.

They also plan to approach retailers such as supermarkets and boutique stores to sell their range of Pick ‘n’ Mix Brownies. They will need to work on a bakery marketing plan, and how best to make, package and distribute their products. This is something that Ali is exploring now.

Milestones will be set once investment is in place. Ali would like to work closely with any investor on a mentor basis, and to receive guidance on the best direction to take the business, and how to plan milestones in the most logical way.

Competitive Edge

As mentioned previously, the company is operating in an extremely competitive market. Thanks to the creative genius of Ali and her passion for all things sweet, the company offers sophisticated, bespoke and also fun creations that simply cannot be found elsewhere. It is this passion and dedication that Ali will be looking to promote across the organization as it grows, by employing skilled and dedicated staff and ensuring standards remain high.

Reputation is everything and most business will be received via word of mouth and through repeat orders.

Unlike many other competing companies, Ali also has a product that is viable to distribute to the mass market.

Promotional Activity

The Bakery Company will use a variety of methods to market to customers including their website, social media, attending events, printed advertising, and promotional offers.

Discounts may be offered to previous customers and during potentially slower times, such as the winter wedding season.

Social media will also be very important to the brand, and the company will be communicating on a personal level with customers and followers to gain trust and get them to order and try out products.

Sales Administration

The Bakery Company wants customers to come back time and time again and to shout from the rooftops what a great experience they had with the company – whether they placed an order for a cake or booked one of the workshops. A friendly and personal approach is incredibly important, as is following up with customers to ensure they were delighted with the service offered.

The company will always reach out to customers after a sale, whether it’s with a business card or thank you email, and encourage positive feedback through social media channels. It’s that personal touch that will bring customers back to The Bakery Company over and over.

Sales will be made through the website, social media channels, word of mouth, and repeat orders. The compay will also aim to secure orders at promotional events and exhibitions. In time, they may start using mailing lists to email customers regularly with details of special events, tutorials and any other information they may be interested in.

Strategic Alliances

Not applicable.

Exit Strategy

#6 bakery business financial section.

Ensuring that you have a COMPLETE financial plan within your business plan will DOUBLE your chances of investment as well as the future growth of your business.

A lot of small businesses don’t have a financial plan and it’s essential to your long-term success and business growth.

We’ve listed here the key elements you need to have in a successful financial section:

• Initial Start Up Expenses – Especially if this is a start-up idea, it’s essential that you have a description of what you need for investment purposes.
• Sales Forecast – It’s essential to have an estimate of your monthly sales revenue as well as annual. This helps you understand your business and plan out any marketing and growth strategies.
• Direct cost of sales – Measures the amount of cash the company will have to spend to produce the goods or services sold by the company. The direct cost of sales only includes the expenses directly associated to production.
• Profit and Loss Forecast – This is a statement summarizing the revenues, costs and expenses incurred during a specific period.
• Balance Sheet – This is the financial position of the company and states its assets, liabilities and owners’ equity at a particular point in time. It illustrates the business’s net worth.
• Loan Repayment – This shows the lender or potential investor the act of paying back any monies.

So… Are you ready to look at some figures?

Three Year Projection

Three Year Projection​

Looking for more inspiration? Why not take a look through our other business plan examples:

• Ecommerce Business Plan sample
• Bar & Restaurant Business Plan sample
• Medical Center Business Plan sample
• Outdoor Activity Business Plan sample
• Advertising Agency Business Plan sample
• Boutique Business Plan sample
• Real Estate Business Plan sample

Additional Resources:

To help you even further in creating your business plan, why not check out the following articles? They will help you write the perfect plan to impress:

• 40 Common Business Plan Mistakes to Avoid when Writing your Plan
• What is a Business plan and why do you need one?
• How to Write a Business Proposal in 5 Easy Steps
• 10 FREE Business Name Generator Tools to find your perfect business name

Now, over to you...

Now I’d love to hear from you:

Are you going to start up your own bakery business or have you recently written a business plan?

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Feel free to leave any comments below and I will be sure to answer them as soon as they come in.

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The Ultimate Guide to Starting a Bakery

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Bakeries bring joy and convenience to their communities, but the customers aren’t the only ones who will benefit from this small business. The owner has a lot to gain too. Imagine calling a kitchen filled with tasty treats your office. Starting a bakery will be hard work, but fun at the same time. With equal parts passion and elbow grease, you can start a business that has customers lined up around the block waiting for a chance to try your delicious treats. This guide on how to start a bakery will help you figure out how to get your business off the ground.

How to start a bakery in 12 steps

Once you have the recipes chosen and perfected, you'll need to focus on some of the other elements associated with starting a bakery: picking the right location, create an inviting atmosphere and learning to manage your finances. Let’s learn more about these aspects.

1. Choose a bakery format

There are multiple bakery formats that you can choose from. There are even some options without the overhead startup costs of a pricey store location. These are a few bakery formats worth considering, but feel free to get creative.

Counter style. This format is the most typical and recognizable format of a bakery, and it has its benefits. Very little space is required in the front of the bakery if you simply offer a counter that customers can order from. (Of course, you’ll still need space in the back for your kitchen.) Usually, there is no dining space, which keeps this type of bakery a lean and efficient operation. But this format does limit your options for serving food and keeping customers on-site where they might order more food and drinks over time.

Bakery and cafe hybrid. This option has plenty of seating for customers, which can allow you the space you need to serve meals if you want to expand past baked goods. Even if you don't, you can still add seating if you want to encourage customers to stick around for a while. You may want to add coffee or tea to the menu, as well. Plus, if you offer comfy seats and free Wi-Fi, you’ll likely find success amongst the working crowd.

Food truck. Starting a food truck is a cost-effective venue for opening a bakery and can help you reach a variety of customers. Take your baked goods along for the ride and park your food trucks at street fairs, by offices and at special events. Generally, you won’t have the space to bake in the truck. But you can easily pack up your truck with baked goods you made in your home or commercial kitchen space.

Home bakery: Not ready to make the leap into renting spaces or buying industrial-sized equipment? Keep things simple and opt to start a bakery from home instead. You’ll require less startup capital and can easily sell your goods online, at local farmers markets, or offer catering services . You may even be able to make deals with local coffee shops or cafes to sell your goods in their locations by offering them a cut of the profits.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

2. Write a business plan

Writing a bakery business plan is hard work, but it’s a step that will help guide you and provide focus. A business plan can also show stakeholders, such as investors, lenders and potential partners, where your business is heading.

A strong business plan will provide you with a structure to organize your ideas, plans, goals, services or products, financial plans and operational structure. Although you'll want to customize your business plan to suit your needs, it should generally contain the following information:

Executive summary . The executive summary should outline your business’s purpose, where it currently stands, where you see your business in three to five years and why your business will succeed.

Market analysis . Here, you’ll share an in-depth analysis of your industry, market and competitors.

Products and services . Provide a detailed look at exactly what your business will be selling. When you're starting a bakery, this section can look at your menu and how the bakery format you chose in the first step will serve your customers.

Marketing and sales plan . Explain how you’ll market and sell your bakery to customers.

Financial plan and projections . You should provide at least three years of financial projections as well as any financial data from your business’s past performance. You’ll want to prove that you have a plan to take your bakery from an idea to a profitable enterprise.

All in all, your bakery business plan will be a lot of information to pull together, but completing this document will ensure that you have a strategy to develop and grow your business.

Choose a Business Entity

As you’re writing your bakery business plan, particularly the business organization section, the question of how you plan to structure your business will likely come up. Choosing a business entity is an important step to starting a bakery (or any business). You may want to consult a business attorney, accountant or another resource to help you decide what type of business entity to form, as this decision will affect your taxes, legal responsibilities and more.

To start, you might consider one of the following most common types of business entities:

Sole proprietorship. Unincorporated business that either has one owner or is jointly owned by a married couple.

General partnership. Unincorporated business with multiple owners.

Limited liability company. Also known as an LLC; registered business with limited liability for all of its members.

Corporation. Incorporated business; most common types being an S corporation or C corporation.

Choose a Business Name

You may have already decided on a business name , but if you haven’t yet, now is the time. Once you have an idea of what you’d like your business name to be, you'll need to make sure it hasn’t already been taken by another business.

A quick Google search should be your first step. You can also search for trademark filings with the U.S. Patent and Trademark Office. Finally, a secretary of state business search will uncover if another business in your state is operating under your dream name.

If your budget permits, you can also hire an attorney to do this research on your behalf. You’ll save a lot of time and have some added peace of mind that you are legally safe to move forward with the name of your choice.

3. Find the right location

The next step in learning how to start a bakery is narrowing down your search for the right business location . If you’re opening a brick-and-mortar location, finding a commercial real estate agent who specializes in finding business spaces for purchase or rent can make your search much easier. Try to find someone who primarily assists the tenants, not the landlords, with the rental process.

You’ll want to make sure your agent has years of experience in your chosen community — that way, they’ll know what fair prices are and the best locations. They may even be able to help you find a restaurant lease that comes with some of the required bakery equipment like large refrigerators or ovens. Make sure the space you rent comes with plenty of room to store equipment and extra baking supplies.

If you’re more interested in the food truck route, you won’t need a real estate agent to help you with that. There are specialty car dealers online and in person that sell food trucks and trucks that can be adapted into food trucks.

To get a better deal, you may want to search for a used food truck on websites like Craigslist. Or, you might ask your local food truck owners, they may be looking to sell their own truck or know of other owners who are.

4. Get the appropriate licenses and permits

Each state will have different regulations, so you must check with your local government to see what business licenses and permits you’ll need to start a bakery in your area.

Even your city or county may require specific business licenses and permits. You should review the government websites for your state, county and city to make sure you have all the documentation you need. Your needs will vary depending on what type of bakery you start, but you may encounter the following licenses and permits when starting your bakery:

Sales privilege license. If you're opening a retail location, you’ll probably need a sales privilege license. This type of license will be necessary to sell your goods in a retail format. This allows your company to collect your state’s sales tax alongside what your goods cost.

Food handler's license. Any business that handles food will need a food handler’s license or a food and safety certificate. You will need to prove that you have the proper knowledge regarding food handling and storage. The owner will need this license as will any employees who assist in the cooking of your baked goods.

Catering license. If you choose to pursue a catering-style bakery business, then you may need a catering or food vendor license. This generally applies if you make the food yourself and deliver it, not if you prepare the food in the client’s kitchen.

Kitchen health and safety inspection. Any kitchen space will need to pass a health and safety inspection in order to be properly certified. Researching these rules is especially important if you want to learn how to start a bakery from home.

Zoning laws and permits. If you’re running a bakery out of residential space, you’ll want to review your local zoning laws to see if you can operate a business out of your home. In this case, other permits may be necessary. For example, a permit may be required if anyone is coming to your home to pick up food.

Homeowner association rules. If you want to start a bakery from home, you’ll need to check the homeowner association rules and regulations first to make sure that operating a business out of your home is allowed. This is more commonly an issue that affects those who live in townhomes or condos.

4. Register for taxes and obtain an EIN

All businesses have varying tax, licensing and employer requirements. Learning about these requirements before you start a bakery will help you avoid costly and time-consuming mistakes. Your chosen business entity, as well as some other factors, will affect the business taxes you’ll be responsible for paying. If you haven’t already, it’s a good idea to consult a tax professional to make sure you’re aware of your tax responsibility and on track to file the appropriate paperwork on time.

If you plan on hiring employees to help you run your bakery, you’ll also need to apply for an employer identification number , also known as an EIN or business tax ID number. You can do this through the IRS and this number will be used when filing your business’s income tax return or payroll tax return, as well as when you’re opening a business bank account, credit card or filing for a business loan.

Even if you don’t need to obtain an EIN — sole proprietorships and single-member LLCs without employees are the only businesses that don’t — there are still benefits of getting an EIN you should consider.

6. Brand your bakery

Finish this sentence: Break me off a piece of that…. You know exactly which crunchy candy bar goes with that song, right? Well, that’s because of branding. Good branding is key. The colors, logos, music, taglines and packaging can all tell your bakery’s story to the world.

There is no reason your bakery can’t make a splash thanks to some solid business branding. These are the following areas where you can start planning your bakery’s branding:

Color scheme.

Social media.

Product names.

Ask yourself, what story do you want your brand to tell? Then use that story to guide each of your branding decisions. Your story should be unique.

You want a name and logo that is immediately recognizable. The same goes for your decor and packaging.

Establishing social media pages for your bakery is also crucial to getting the word out about your new business while building your brand at the same time.

7. Separate your business finances

Starting a bakery can feel like a very personal affair, but you should do your best to separate your business and personal finances. One of the best ways to do this is by opening a business bank account. For some businesses, this step may be legally required.

When you open your business bank account, you’ll have to decide if you want a business checking or a business savings account. Usually, new businesses will be best served by a business checking account. Businesses that are more established, and have plenty of cash on hand, will probably prefer a business savings account so their money can grow with interest.

Either way, it's best to have some form of a business bank account to keep your business finances organized and running smoothly. The last thing you need to worry about is confusing your personal expenses with your business ones come tax season.

Another way to help keep your business and personal expenses separate is to obtain a business credit card . While you have several options available to you, you may also consider a business credit card with a 0% introductory annual percentage rate offer, which can be particularly helpful to cover any initial startup costs of your bakery. Keep in mind, though, you will need to make sure you have a plan to pay off your balance by the time the introductory offer ends for this to be a beneficial tool.

8. Secure business funding

Starting a bakery can be an expensive endeavor, so you should first find an answer to the following question: How much does it cost to start a bakery?

The answer will vary based on your location, type of bakery and required equipment, but you need to find a rough answer so you can plan your funding options accordingly. If you need help financing your new bakery, consider the following options:

Startup business loans. Finding funding as a new business can be difficult, which is where startup business loans come in. These can be anything from an SBA microloan to a small business grant. It’s worth noting that SBA loans are the most coveted funding option for their low interest rates and long repayment terms. While traditional SBA loans aren’t easy to qualify for — especially as a new business — the SBA microloan program can be a good alternative.

Business line of credit. With a business line of credit , you’ll have access to a maximum credit limit that you can borrow against for any business expenses. You’ll only pay interest on the amount of capital that you borrow from your credit line, and you don’t need great credit to qualify, which makes them appealing for new businesses.

Equipment financing. Bakeries require a lot of equipment, so you may want to consider equipment financing to help with the upfront costs. And since the equipment will serve as collateral on the loan, they are also easier to qualify for than some other funding options.

9. Decide on your menu

Remember the cronut? The combination of a donut and a croissant created by the famed Dominique Ansel, owner of Dominique Ansel Bakery in New York City, was so popular that people would line up around the block to try to get one. A few years later, however, the cronut isn’t exactly making headlines anymore — which is why it was smart for Ansel to also sell other baked goods, including classic favorites.

When figuring out how to start a bakery and make your menu, keep Ansel in mind. It’s OK to set and follow trends, as long as you're known for having some reliable staples available too.

That way, when everyone is over the latest trend, they know they can still come to you for their favorite classics. Ansel now has multiple bakery locations in New York, Los Angeles and London and sells new inventions (like frozen s’mores) and timeless baked goods.

10. Obtain bakery equipment

To turn your bakery into a legitimate, profitable business, you'll need commercial-grade bakery equipment to help you churn out all those baked items out without your tools breaking down in the process.

What equipment is needed to start a bakery? You may need to obtain:

Decorating tools.

Sheet pan rack.

Refrigerator.

Holding cabinets.

11. Price your products

When you're trying to price your food products, it's important to remember that pricing is determined by your expenses, operating costs, taxes and the market. To calculate the pricing of your baked goods, therefore, you’ll first need to figure out your monthly business operating costs. This will help you calculate how much you’ll need to make to cover the total cost to run your business.

Then, you’ll have to divide your production costs and overhead costs into your operating costs. Production costs take everything into account that’s needed to produce your baked items, such as ingredients and equipment. Overhead costs are expenses that are not direct costs — think advertising, accounting, labor, etc.

Once you’ve figured out your breakeven point and the production costs per baked good, you’ll be able to come up with pricing. For example, let’s say you own a cupcake business and it costs you $2,000 a month to operate your bakery. You project to sell 250 cupcakes per month.

To figure out how much you should charge per cupcake, you can divide the number of projected cupcakes into your monthly operating costs. If you divide 2,000 by 250 you should get eight. This means you should be charging $8 per cupcake just to cover overhead expenses.

Now, let’s factor in production costs. Let’s say each cupcake costs you $5 to produce. Add this cost to the minimum cost to cover your operating expenses (eight plus five) and you should get $13, which represents the minimum amount you should charge to cover your total operating expenses.

You can then decide how much profit you want to make and add that to the price of each baked good.

12. Set the atmosphere

The last step in learning how to start a bakery is customizing your space. If you choose to go with a storefront or cafe-style bakery, it’s time to amp up the atmosphere.

When it comes to the atmosphere, there are a few tricks of the trade that will help you create a successful bakery. For example, put your most eye-catching baked goods (like those fancy frosted cakes) at eye level in your display shelf. Less exciting staples like bread can take up some of the space on the lower levels of your display or behind the counter.

When you're setting the atmosphere, creating a good first impression is key. Just like a well-designed restaurant has a stellar entrance area, find a way to make that tempting freshly baked cookie smell waft into the entryway of your bakery.

Similarly, you can invest in plush couches, cozy decor and oversized coffee mugs. Make sure your customers feel at home. As the owner, get to know your customers. It’s important to train all of your staff members to be equally friendly. And of course, a free sample or two never hurts.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

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Sony and Apollo’s Plan for Paramount: Break It Up

CBS and other well-known properties would be sold if Sony and Apollo were able to buy Paramount. But the new owners would keep the movie studio.

By Benjamin Mullin and Lauren Hirsch

Shari Redstone helped build Paramount Global into a media empire, but if Sony Pictures Entertainment and the private-equity giant Apollo Global Management succeed in acquiring it, they plan to break it all up, according to three people familiar with the matter.

The plan would include auctioning off CBS, cable channels like MTV and the Paramount Plus streaming service, said the people, who asked not to be identified sharing private details. Paramount Pictures — home to blockbusters like “The Godfather,” “Top Gun” and the “Mission: Impossible” franchise — would be combined with Sony’s business.

Sony and Apollo, which made a nonbinding expression of interest in acquiring Paramount for $26 billion last week, are also likely to keep Paramount’s library of films and TV shows and the rights to well-known characters, including the Teenage Mutant Ninja Turtles and SpongeBob SquarePants. They have not yet outlined this plan to Paramount or its advisers.

A breakup of Paramount would represent a major changing of the guard in the entertainment industry. CBS and Paramount have been controlled by the Redstone family for decades, since the media mogul Sumner Redstone assembled the conglomerate in a series of audacious deals. His daughter, Ms. Redstone, championed a 2019 deal to reunite it, and she remains Paramount’s controlling shareholder.

Sony and Apollo are now engaging with Paramount’s financial advisers on next steps in their proposal, the people said. The two companies have not yet signed formal nondisclosure agreements or begun due diligence reviews, a process that could take weeks.

Though it’s still early, the two bidders have already begun to envision how a deal for Paramount could unfold. The two would likely operate the company as a joint venture controlled by Sony, with a minority stake owned by Apollo, the people said. Sony would look to combine the marketing and distribution functions of the Paramount movie studio with its own operations, and divest the rest of the properties.

Over time, Apollo could sell its stake in the joint venture back to Sony or to another buyer. It’s not yet clear just how large a stake Apollo would hold in the business, though the company plans to invest billions in the deal, one person said.

A breakup of Paramount is not a preferred outcome for Ms. Redstone, who would prefer the company to pass on to another buyer intact, a person familiar with her thinking said. But it wouldn’t necessarily be a dealbreaker if the offer was compelling, the person said.

There are other suitors. Skydance, a media company founded by the tech scion David Ellison, has been in discussions with Paramount for months about a potential deal. Exclusive negotiations between Skydance and Paramount lapsed last week, shortly after Sony and Apollo put in their expression of interest. But Skydance remains interested.

Sony and Paramount have different approaches to the entertainment business, and a deal would probably result in a U-turn for Paramount. Unlike Paramount, which streams its content on Paramount+, Sony licenses its movies and TV shows to companies like Netflix and Disney. Sony would probably not change that approach in a deal with Paramount and would most likely look to combine Paramount+ with a rival service, such as Comcast’s Peacock or Warner Bros. Discovery’s Max.

Sony has long pursued Paramount’s movie studio. Several years ago, Sony executives reached out to Paramount to see if the company would be willing to sell Paramount Pictures or merge it into a joint venture, but Paramount signaled it was interested only in a deal for the whole company. So when Apollo made a bid for all of Paramount this year, Sony decided to team up.

Any deal by Sony would face regulatory hurdles. Regulations restrict foreign owners from holding licenses for U.S. broadcast stations, which could prevent Sony — which is owned by the Japanese-based Sony Group — from owning CBS-affiliated TV stations. But they could divest the stations immediately, or have Apollo apply for the license. They are also considering other options for the stations.

The deal would also most likely require clearance from the Committee on Foreign Investment in the United States, the panel in Washington that scrutinizes acquisitions by foreign owners.

Sony and Apollo believe that when they decide to sell the Paramount assets , there could be many logical buyers, the three sources said. Warner Bros. Discovery, which does not own a broadcast network, could be a suitor for CBS. TV station groups like Nexstar and Tegna could be logical buyers for CBS’s owned and operated TV stations.

The hardest asset to sell would most likely be Paramount’s cable networks, like MTV and Nickelodeon, but those could be sold to a TV programmer looking for greater scale in negotiations with cable companies like Charter and Comcast.

Benjamin Mullin reports on the major companies behind news and entertainment. Contact Ben securely on Signal at +1 530-961-3223 or email at [email protected] . More about Benjamin Mullin

Lauren Hirsch joined The Times from CNBC in 2020, covering deals and the biggest stories on Wall Street. More about Lauren Hirsch

Biden and oil companies like this climate tech. Many Americans do not.

Carbon dioxide pipelines and underground injection can cut greenhouse gas, but community opposition is fierce.

The remote stretch of public grazing land in southeastern Montana has hardly changed since homesteading days, but underneath this wind-swept expanse lies a hidden asset in high demand: thousands of acres of porous rock where oil company executives say greenhouse gas could be piped in from afar and stored forever.

ExxonMobil and the Biden administration see in the grassy 100,000 acres a launchpad for one of the world’s most audacious climate experiments, a plan to take emissions spewing from power plants and factories and trap them underground where they cannot contribute to global warming. The scheme is inching forward despite criticism it will permit polluters to keep polluting while slowing the transition to solar and wind energy. And now sponsors face the additional hurdle of intense local opposition.

In the ranching community of Carter County, Mont., the prospect of shipping in all that carbon pollution and injecting it underneath an area called Snowy River is about as popular as an outbreak of hoof-and-mouth disease.

“The question I keep hearing is, ‘Why are they making us the dumping ground for the rest of the country?’” said Rod Tauck, chairman of the Carter County Board of Commissioners and a descendant of homesteaders who more than a century ago settled his family ranch. “Not a single constituent I know wants this.”

Such tensions are emerging nationwide, throwing an industrial-size wrench into the quest by the White House and major energy companies to advance a vast network of “carbon capture” infrastructure across the country. It would involve tens of thousands of miles of new pipelines , and scores of remote storage sites on the scale of Snowy River, targeted because the porous rock underneath them can act like a carbon sponge.

This vision for using technology to reverse climate change was once viewed widely as far-fetched.

Now, proposals to divert carbon dioxide from smokestacks to vast subterranean wells are regarded by the White House , the United Nations and the International Energy Agency as crucial to preserving any hope of meeting the world’s climate goals. The Biden administration’s plan to zero out emissions from the power grid by 2035 increasingly hinges on the success of colossal carbon capture deployment. The government has made billions of dollars of incentives available to motivate companies like ExxonMobil and Chevron to rapidly develop it.

The urgency is only increasing as a surge in forecasted energy use — driven by the insatiable electricity appetite of artificial-intelligence developers and a national boom in manufacturing — is delaying retirement of old fossil-fuel power plants and pushing utilities to build new ones.

New clean energy like wind and solar is not coming online quickly enough to meet all the projected demand, prompting government to lean on plans to stow away carbon pollution.

“We have to stop fossil fuels from causing global warming before the world stops using fossil fuels,” Myles Allen, a climate scientist at the University of Oxford in England who has served on the U.N. Intergovernmental Panel on Climate Change, said recently at CERAWeek, an energy conference sponsored by S&P Global. “This is the way to stop fossil fuels from causing global warming.”

But early carbon capture projects are floundering.

Hostile community reception is undermining plans from the Gulf Coast of Louisiana to the prairies of South Dakota. Energy companies racing ahead are facing tough questions around safety, environmental impact and technological viability.

In Montana, the federal Bureau of Land Management in 2022 identified the Snowy River site as one of the first stretches of public land that may be suitable for carbon sequestration. ExxonMobil wants to inject 450 million cubic feet of carbon dioxide per day into the ground. The company is not identifying where that gas would come from, but one likely source is a carbon dioxide pipeline currently used to support oil and gas extraction projects (the pressurized gas is used to force fossil fuels to the surface).

That pipeline is connected to a large ExxonMobil natural gas plant 500 miles away in Wyoming. ExxonMobil says Snowy River’s storage capacity is equal to a year’s worth of polluting greenhouse gas from 1.6 million cars.

Legacy energy companies like ExxonMobil are eager to deploy technologies that could extend the life of fossil fuels by mitigating their role in global warming. Plus, federal incentives are potentially lucrative. The single Montana project could generate as much as $12.7 billion in federal tax subsidies. ExxonMobil took it over when it acquired carbon capture and pipeline developer Denbury for $4.9 billion in November.

Company officials say they have not yet made a final decision to build in Montana. But assessing the project’s viability, they say, requires they get the BLM permit to store the carbon now, so they can do testing on-site. Montana Gov. Greg Gianforte (R) supports the company’s plan.

“We are fully committed to working with the community,” said Kathleen Ash, CEO of Denbury, now a fully owned ExxonMobil subsidiary. “This is a safe and proven technology.”

Many in the local community see something else: big corporations looking for a payday partnering with an administration turning a blind eye to a flawed technology. They point to problems that carbon capture projects are encountering around the world, such as Chevron’s sprawling Gorgon operation at a massive natural gas field in Australia. It is not trapping even half the carbon dioxide planned, amid persistent technological troubles.

BLM officials counter that carbon dioxide has been safely injected underground as part of the oil production process for decades. They call the projects an “important tool” for fighting climate change and advancing the administration’s agenda to erase emissions.

“They are presenting this as a climate solution and I don’t know that it is,” said Liz Barbour, who manages Cinch Buckle Ranch, an operation bordering Snowy River that uses low-impact, conservation-focused agricultural practices. “The only thing I do know is that it is part of their plan to continue producing oil and gas.” Barbour is among several ranchers working with a grass-roots group called the Northern Plains Resource Council to fight the project.

Local landowners with sharply contrasting politics and views on climate change are finding common cause in the battle. The council’s argument that carbon capture is “an unproven, government hand-out to large out of state corporations” was echoed repeatedly in interviews in this county of 1,415 people defined by wide-open spaces and dirt roads, where visiting a neighbor can involve an hour-long journey. Carter County cast 89 percent of its ballots for Donald Trump in 2020.

“Many of us are willing to accept the premise that this is a dangerous compound that needs to be gotten rid of,” said Jack Owen, a 72-year-old who ranches on land his ancestors homesteaded. “The question is, ‘Why here?’”

ExxonMobil’s assurances that the project would be almost entirely underground, with little noticeable impact on the landscape are met skeptically. Local landowners counter that upgrading the roads, drilling wells, and installing new pipelines would take a heavy toll on the landscape.

The scale of carbon that must be effectively stored nationwide to make a dent in global warming is enormous. Claude Letourneau, the CEO of Svante, one of North America’s leading carbon capture technology firms, said containing the emissions created by manufacturing processes like cement- and steel-making could require 10,000 plants to trap the gas, compress it and then pipe or truck it to places like Snowy River.

An ambitious proposal in the Midwest recently collapsed. The proposed 1,200-mile Heartland Greenway pipeline was supposed to span five states, bringing 15 million tons of carbon dioxide captured at ethanol plants each year to storage sites where it would be buried.

The project, proposed by Navigator CO2, appeared to have early advantages. Ethanol plants emit uncontaminated carbon dioxide that is less complicated to capture and compress than the gas from other industries. And many landowners along the proposed route already hosted oil and gas pipelines.

But community opposition was intense. Landowners and local regulators worried about safety and environmental fallout. The CEO of Williams, one of the biggest natural gas pipeline companies in the world, said in an interview that even his board chairman, who owns farmland in Iowa, wants nothing to do with the carbon dioxide pipelines.

“He said, ‘I don’t want it damaging this very valuable cropland,’” Williams CEO Alan Armstrong said.

Navigator CO2 canceled the Heartland Greenway project in October. It blamed “the unpredictable nature of the regulatory and government processes involved.”

Armstrong is one of many energy executives who said the project faltered because the developers spent too little time educating communities about the technology and talking through concerns. Companies more practiced in securing permits for pipelines, it was argued, would win local buy-in.

But it is not turning out that way for ExxonMobil in Montana.

Assurances from ExxonMobil that disruption would be minimal are met with worries that the project will disrupt the ecosystem, leave water tables vulnerable to the leaching of carbon dioxide, and create a safety hazard.

A rupture in the existing pipeline several years ago left one Carter County ranch looking as if a meteor had hit it. Pictures from 2018 show a deep, truck-size crater in the ground covered with what looks like dry ice residue, caused by the compressed carbon dioxide’s combustion.

Since that time, another major pipeline accident had dire consequences for the town of Satartia, Miss. The pipeline was also owned by Denbury, the ExxonMobil subsidiary.

The 2020 rupture filled the air above a section of the pipeline with dangerous amounts of carbon dioxide, resulting in a medical emergency that sent 45 people to the hospital with respiratory and other problems, according to a U.S. Department of Transportation investigation.

The gas caused three men driving through the area to pass out in their car and the engine to stop running. Fire department officials had to break the windows to pull them out, according to local 911 call tapes and public records obtained by the nonprofit Climate Investigations Center. Residents desperately called 911 for help — in one case, a mother reported that her child couldn’t breathe, and in another, a caller said her friend was on the ground shaking and drooling, as if suffering a seizure.

Denbury paid a $2.8 million fine as part of a settlement with the federal government in which it did “not admit to any of the alleged violations or risks identified.” Some of the residents injured in the incident — and their doctors — say they are still suffering serious ailments because of it.

ExxonMobil officials said new training protocols for emergency responders have been initiated since the incident. They say that there has never been a fatality associated with piping carbon dioxide and that accidents involving such pipelines are rare. The company said it also supports stepped-up federal safety regulations amid the planned expansion of carbon dioxide pipelines.

Energy companies say they are undeterred.

Among the projects inching forward is one on a 140,000-acre coastal stretch between Houston and the petrochemical facilities of Port Arthur, Tex., called Bayou Bend, where Chevron plans to store as much as 1 billion tons of carbon dioxide. The company is hoping the proximity to factories will make the project more palatable to regulators and landowners.

Chevron is also aiming to bury carbon in wells off the coast of Bayou Bend, a plan that alarms marine biologists but could prove less vulnerable to community protest.

A visit to Bayou Bend punctuates the immensity of it all. The site stretches for miles, with the flat, grassy landscape interrupted only by the occasional cow chomping on weeds or alligator sunning itself in a marsh.

Developers promoting the projects are adamant that most of the work will happen out of sight, with the carbon buried as deep as 10,000 feet and hardly any industrial activity above ground.

“This has to happen,” said Chris Powers, Chevron’s vice president for carbon capture, utilization and storage, pointing to the forecasting models showing that carbon capture is crucial to curbing global warming. “To make this grow at scale, it is going to take hundreds of projects.”

Back in Montana, rancher Mike Hansen says if it is all so harmless, project boosters in the nation’s capital should just start burying carbon pollution there.

“We asked them, ‘Why don’t you do this under Washington, D.C.?’” he said. “They told us, ‘We can’t do that. There are too many people there.’”

“That is not saying much for us.”