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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.

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Bakery Business Plan: How to write it [Complete Guide]

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  • January 3, 2023
  • Food & Beverage

description of bakery business plan

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your bakery, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan for your bakery. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for a bakery?

The purpose of a business plan is to secure funding through one of the following channels:

  • Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
  • Obtain private investments from investment funds, angel investors, etc.
  • Obtain a public or a private grant

How to write your bakery’s executive summary?

Provide a precise and high-level summary of every section that you have included in your bakery business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately. Ensure that the executive summary doesn’t exceed 2 pages in total.

The executive summary usually consists of the five major sub-sections that include:

  • Business Overview : give a brief introduction to your bakery and quickly describe your brand, its offerings, the pricing list of products and what sets you apart from your competitors
  • Market Overview : the market analysis segment will contain an overview of the expected bakery market size and growth in your area, as well as an analysis of your competitors and target audience
  • Management & People : introduce your bakery’s management and employee structure. Provide a brief (no more than a couple of sentences each) of the knowledge and experience of the team. Also, speak here about your hiring plans and the reporting lines
  • Financial Plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? Include here a chart depicting your key financials such as revenue, gross profits, and net profit
  • Funding Ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

description of bakery business plan

Bakery Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Bakery Business Overview

In this section of your bakery business plan, you will provide an overview (slightly more detailed) of your business. If there is something unique about your baked products, mention that in this segment.

Some of the most important questions that you must try to answer in this section include:

  • Why are you opening a bakery?
  • Where will your bakery be located and why did you choose that location?
  • What type of baked products will you sell (low-calorie, vegan, gluten-free, etc.)?
  • Why do you want to offer those product lines?
  • How will you price your food offerings?
  • Will your operating hours be the same as your competitors?
  • Who is your target audience?
  • What will be the legal structure of your company?

Let’s look at different subsections that you must include:

a) History of the Project

Any business must have two components:

  • Passion & experience of the business owner
  • Rationale behind the business

Passion & Experience

It is not necessary to have any prior experience with a bakery. As long as you are passionate about it and you know your market, you are good to go. 

However, if you have any experience, make sure that you are mentioning that. For example, you may have been a head pastry chef and a creative cake decorator in a popular bakery for 6 years and now you want to launch your own bakery.

No matter what, ensure that you demonstrate not just passion but also some industry knowledge that you must garner through thorough research.

Every business has a rationale behind its existence. What’s yours? Are you going to solve some problems that exist in the current bakery business scene? 

For instance, the target market may have a very high percentage of pastry-loving obese people. You may be the first one to introduce low-calorie pastries, cakes, and other baked items. 

Similarly, if the area has a high vegan density, you may want to introduce a line of vegan products that no other bakery in the area is offering.

You must also ensure that the market is conducive for the business to exist. For instance, if you are a master cake maker who makes ultra-realistic cakes that cost a lot and try to sell them in a low-income neighborhood, your cakes will probably not sell.

Therefore, it is important to understand the market before starting a business to prevent extreme losses, and eventually closure.

b) Business Model

This is where you will talk about the business model and the type of bakery you want to open. Some points that you need to briefly describe here are:

  • Will you buy a new bakery, or will you buy an old one and remodel it?
  • Will you open a specialty bakery, a counter service bakery, or some other bakery type?
  • What equipment, technologies, inventory, and tools will you need to operate your bakery?
  • Where will you source your ingredients from?

There are various types of bakeries that you consider:

  • Bakery Café : It is a sit-down bakery. It is a retail bakery with a dedicated dining area. There will be front-of-house and back-of-house spaces and people will often order food and other drinks apart from your baked items like muffins, cupcakes, cookies, etc. People can also order tea, coffee, sandwiches, etc.
  • Counter Service Bakery : These bakeries do not have any dining area. People will order food and take them away. You can sell other food items like drinks, burgers, sandwiches, etc. apart from your usual baked goods.
  • Specialty Bakery : These bakeries focus on a very specific set of products. For example, wedding cakes, gluten-free baked products, etc.
  • Retail or Wholesale Bakery : The difference between a retail and a wholesale bakery is that in the retail model, you will sell to your direct customers (B2C). In the wholesale model, you will be selling to other businesses like cafes, restaurants, specialty shops, etc.

Irrespective of the type of bakery you want to open, make sure that there is adequate demand for the products you want to sell. For instance, if you are trying to sell a vegan line of baked products to customers who want non-veg-based baked products, you will not succeed. There must be enough vegans in your target market.

c) Products & Services

In this sub-section of your bakery business plan, you will provide a list of your products and services . For instance, if you intend to open a specialty bakery such as wedding cakes, you must provide a menu listing all that you have to offer.

Similarly, if you want to sell bread, cookies, and pastries only, make sure that your sample menu lists them. If there are too many items that you intend to sell, make sure that the sample menu you are providing includes the major attractions. You don’t need to list all the items.

description of bakery business plan

d) Pricing Strategy

This is where you will explain your pricing strategy . Of course, your prices can vary significantly from your competitors. However, if there is a significant price variation, you must explain such differences.

For instance, you may be selling custom-designed birthday and wedding cakes instead of generic designs. That may be the reason for higher costs. Similarly, the quality of the ingredients you use for baking can also account for the price differences.

Irrespective of the case, include a pricing chart for your menu items. No need to include the price of every product or product bundle you intend to sell. Instead of listing the price for every product individually, you can just provide a pricing range.

For example, you can do something like this:

  • Multi-decker cakes with custom fondant-crafted figurines: $350 to $1,000
  • Gluten-free cookies: $3 to $6

Offering a pricing chart is important because your pricing strategy will also allow investors to tie your pricing strategy with your financial projections later on.

description of bakery business plan

e) Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Bakery Market Overview

A complete understanding of the market where you want to operate is important for the success of your business.

For example, there may be a large number of cafes in the area with regular and high demand for baked goods like pastries and cookies. Thus, opening a wholesale bakery to serve the B2B demand instead may make sense here.

Therefore, you must cover here 3 important areas in the market overview or market analysis section of the business plan of your bakery:

  • Market trends : how big is the bakery industry in your area? What is its growth rate (or decline rate) and what are the factors contributing to its growth or decline?
  • Competition overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
  • Customer analysis : who is your target audience? What type of bakery setup do they prefer? How frequently do they buy baked goods? What is their average spending at bakeries? 

a) Bakery Industry Status Quo

How big is the bakery industry in the us.

According to the American Bakers Association, the US bakery market represents $154 billion and employs over 800,000 people..! The commercial segment is by far the largest (91% industry size) vs. retail bakeries that only represent 9% of the total US bakery market.

In terms of products, here is the breakdown of the most common bakery products as a percentage of total bakery sales in the US:

description of bakery business plan

How big is the bakery industry in your area?

Once you grab the exact data for the US market and add it to your business plan, you can then divert your attention to the area where you want to operate. It might not be possible to find region or area-specific studies, and hence, you must estimate the size. For more information, read our article on how to estimate TAM, SAM and SOM for your startup.

Let’s now see how to estimate the market size of the bakery industry size for your business plan . We know that:

  • The total US market size for retail bakeries is $15 billion (10% of the total $154 billion)
  • The total number of retail bakeries is around 23,000

Therefore, the average annual revenue for each retail bakery is around $650,000 (that’s an average of $1,800 in sales per day).

So, if there are 20 already bakeries in the area where you will operate, we can reasonably assume the market size of the bakery industry in your area is around $13 million.

How fast is the bakery industry growing in the area?

Now, you must show the expected growth rate of the bakery industry in your area. This information may not be available via online research papers. However, assessing the growth rate will not be difficult.

You can approach each bakery separately and ask for their year of establishment. You will get a clear picture of the overall growth rate.

For instance, if there were 18 bakeries in 2018 and 20 bakeries in 2022, the average annual growth rate is 5.1%.

description of bakery business plan

b) Bakery Competition Overview

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their bakery product offerings, marketing strategies, etc., will allow you to provide a better service.

If your competitors are offering nearly the same products & services, then what is their market share and how do they market their products & services to attract new customers?

It is always a good idea to do some research (if necessary, physically visit your competitors without revealing your business intentions) and create a comparative table summarizing their product & service offerings, marketing strategies, target audience, etc.

Here is a sample table that you can use:

The competition analysis table you will add to your bakery business plan will depend on what information you need and want to include based on your business model.

Bakery SWOT Analysis

Try to provide a SWOT analysis . It must be crisp and highly focused. SWOT stands for Strength, Weakness, Opportunities, and Threats.

Here is a sample that you can use as a reference:

  • Strengths : Baking & Pastry Arts degree from Culinary Institute of America; 6 years of cake and pastry baking & decoration experience in a renowned bakery chain
  • Weaknesses : Startup cost, zero reputation
  • Opportunities : Increasing demand for healthy baked food because of increasing health consciousness in the target market
  • Threats : Big brands like Dewey’s Bakery, Insomnia Cookies, Bare Snacks, etc., are flooding the market

A clear understanding of your strengths and weakness along with opportunities and threats in the real market can help you to design your marketing strategy . It also helps potential investors to assess the risk and reward profile of your business.

description of bakery business plan

c) Bakery Customer Analysis

This is the sub-section where you will provide a detailed analysis of your target audience. Some important points that you must include in your customer analysis include:

  • Age and gender distribution (you can get local demographic data from census.gov )
  • Per capita expenditure on baked food items
  • Frequency of bakery visits
  • Average monthly income and disposable income
  • Average bill size per visit
  • Type of bakery preferred
  • The expected price range for baked items
  • Preference for healthy snacks and willingness to pay for high-quality products
  • Any seasonal preferences they have

You can add as many data points as required to validate your business decision. The idea here is to display your deep understanding of the target audience and their needs, preferences, and expectations. This knowledge can help you to tailor your products & services to attract new customers.

description of bakery business plan

4. Sales & Marketing

This is the segment where you outline your customer acquisition strategy. Try to answer the following questions:

  • What is your USP ?
  • What are the different marketing strategies you will use?
  • How do you intend to track the success of your marketing strategy?
  • What is your CAC or customer acquisition cost?
  • What is your marketing budget?
  • What introductory promos and offers do you intend to provide for attracting new customers?

Let’s expand a bit on a few questions below:

What marketing channels do bakeries use?

A few marketing channels that bakeries typically use are:

  • Online listing & reviews (e.g. Google Business)
  • Bakery directory listing
  • Signage and billboards
  • Print media (newspapers, etc.)
  • Loyalty programs
  • Coupons & gift cards
  • Social media interactions and social media ads

It is not necessary to use all channels. You can start by focusing on a few of them. You can include other marketing strategies later.

Also, you must have a fair and nearly accurate estimate of your marketing budget. Failure to display a well-planned and adequate cash flow for advertising and marketing can lead to investors losing confidence. That’s because investors are fully aware that if adequate funds are not allocated for marketing, the business will be derailed before becoming a success.

What is your unique selling proposition (USP)?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

  • Low Calorie : Craving for sweets while burning fat? We have the perfect pastries!
  • Vegan : Dairy-free vegan cheesecakes that melt in your mouth
  • Doorstep delivery : We will reach your door to satiate your cravings

Your USP will depend on your business model, competitor analysis , and target audience. Whatever your USP be, it should appeal to your potential customers and attract them. Plus, The USP you offer should be convincing enough for investors and lenders.

description of bakery business plan

5. Management & People

You must address two things here:

  • The management team and their experience/track record
  • The organizational structure: different team members and who reports to whom?

a) Management

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your bakery business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the bakery you are proposing. If they have specialized training, and experience (such as a degree in baking and pastry arts degree, 6 years of baking experience in a renowned bakery chain, etc.), add that information.

b) Organization Structure

Even if you haven’t already hired production bakers, pastry chefs, kitchen helpers, marketing & accounts personnel, etc., you must provide a flowchart of the organizational structure defining the hierarchy of reporting.

description of bakery business plan

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for a bakery.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your bakery is an attractive investment.

There should be 2 sections to your financial plan section:

  • The startup costs of your project (if you plan to start a new bakery, purchase new equipment, renovate your store, etc.)
  • The 5-year financial projections

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a bakery, startup costs are all the expenses you incur before you open your bakery and start making sales. These expenses typically are:

  • The lease deposit for the space (if you rent) or the cost to purchase the real estate
  • The renovation / refurbishment of the building / space
  • Equipment & furniture for the bakery

Of course, the startup costs depend on many factors like the bakery shop size, its location, the number of staff, quality of the equipment, etc. 

As an example, it costs on average $109,250 to $310,050 to open a 1,500 sq. ft. bakery in the US .

Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a bakery, read our article here .

b) Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model for your bakery.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in the business plan of your bakery.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

  • How much revenue do you expect to generate over the next 5 years?
  • When do you expect to break even?
  • How much cash will you burn until you get there?
  • What’s the impact of a change in pricing (say 15%) on your margins?
  • What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

  • The number of customers over time ;
  • Your expected revenue ;
  • Operating costs to run the business ;
  • Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of customers as a small change in these assumptions will have a big impact on your revenues.

description of bakery business plan

7. Funding Ask

This is the last section of your bakery business plan. Now that we have explained what your bakery business model is, what you sell and to whom, what’s your marketing strategy, etc., this section must now answer the following questions:

  • How much funding do you need?
  • What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
  • How long will this funding last?
  • Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

  • What percentage of the total funding the loan represents?
  • What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

  • What percentage ownership are you selling as part of this funding round?
  • What is the corresponding valuation of your business?

Use of Funds

Any bakery business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries? Or will it cover mostly the cost for the lease deposit and the renovation?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our Bakery financial model template , you won’t have any issues answering these questions.

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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Table of Contents

Dreaming of starting your own retail bakery ? A strong foundation begins with a well-crafted business plan template. Before you can whip up delectable pastries and cakes to delight your customers, you must first learn how to write a plan that will not only help you start your bakery but also position it for growth. In this guide, we’ll dive deep into crafting a bakery business plan that can propel your entrepreneurial dream forward and grow your business successfully.

What is A Bakery Business Plan?

A bakery business plan is a comprehensive document that outlines your vision for your bakery, detailing everything from your business concept to your financial projections. For those who plan to start a bakery or for current business owners looking to expand, a well-detailed business plan is crucial.

First and foremost, it serves as a roadmap, guiding you through the various stages of your business. Every business, whether a startup or an established one, faces challenges and opportunities. With a business plan in hand, you’ll navigate these with clarity and purpose. For those unfamiliar with what to include in your bakery business plan, it covers key areas like market research, competitive analysis, marketing and sales strategies, operations, and financial forecasts.

If you’re hoping to secure funding from investors or financial institutions, they’ll almost certainly want to see your business plan to understand your strategy and the viability of your bakery concept. In essence, it’s not just about baking; it’s about creating a sustainable business model around your passion.

For business owners with dreams to start or grow their bakery, the process of creating this plan can be enlightening. It forces you to think critically about every aspect of your business, from your unique selling proposition to potential challenges in the market. In a nutshell, if you’re planning to dive into the world of baking and commerce, you’ll also need to create a robust bakery business plan to ensure success.

Why A Business Plan Is Important For A Successful Bakery Business? 

A business plan is crucial for a successful bakery business, be it a large-scale operation or a home bakery business plan. Here are the reasons why:

1. Clear Vision and Objectives

Writing a business plan provides clarity, ensuring you’re on the right path. This process allows bakery owners to craft a plan that outlines their goals and objectives, giving them a clear direction for the future. By defining what products you will sell, how you will market your business, and understanding the strengths and weaknesses of your bakery, you position yourself for success from the outset.

2. Financial Planning

A bakery’s financial health is the backbone of its success. Having a solid business plan offers insights into your pricing strategy, expected costs, and projected revenues. It helps you understand the financial needs of your business, ensuring that you’re adequately funded from the start and can anticipate future financial requirements. Moreover, in the case of seeking external financing, lenders or investors will want to review your business plan to gauge the viability of your bakery venture.

3. Operational Efficiency

Operational efficiency is vital in any business, and a bakery is no exception. With a plan in place, you can streamline operations, ensuring that every aspect of your bakery, from sourcing ingredients to delivering finished products, runs smoothly. By detailing the next steps in your business journey and anticipating potential operational hitches, you preemptively tackle challenges, ensuring your bakery’s efficient functioning.

Step-by-step Guide To Write A Bakery Business Plan

Embarking on a bakery business is a delightful venture, but before you can start whipping up delicious baked goods, it’s essential to have a detailed business plan. Here’s a step-by-step guide to help you craft one.

1. Executive Summary

The executive summary is a snapshot of your bakery business, giving readers an overview of what to expect in the following sections. Typically concise, it serves as an introduction and should captivate potential investors or partners.

What should you cover in an Executive Summary?

  • Introduce your bakery business: Briefly describe your bakery, setting the stage for the sections ahead.
  • State your mission and vision: Your mission statement should reflect the purpose of your bakery, while the vision provides a glimpse into your business goals and aspirations.
  • Outline your objective: What do you hope to achieve? Are you planning to cater to a specific niche, like gluten-free or vegan baked goods?
  • Provide a financial overview: A brief insight into your financial statements, indicating the viability of your venture.

2. Bakery Business Description

This section delves into the intricacies of your bakery. It outlines the essence of your business, differentiating it from competitors.

What should you cover in the bakery description section?

  • Talk about your bakery concept: Are you a coffee shop with baked pastries, a storefront offering specialty items, or do you plan to offer delivery services, especially given the rise of delivery needs during events like the pandemic?
  • Explain your unique selling proposition: Perhaps you have a talented baker specializing in gluten-free products or vegan baked goods. What makes your bakery stand out?
  • Discuss your operations plan: How will your bakery function daily? Will you have a physical location, or will you cater to local farmer’s markets or online platforms?

3. Market Analysis

The most important factors to consider when writing a bakery business plan are: target market, location and competition

  • Target market: Understand your potential market. Who are your local customers, and what are they looking for in baked goods?
  • Location: Whether it’s a cozy corner in a bustling city or a digital platform, your location caters to your target market.
  • Competition: Identify main competitors. Analyze their strengths and weaknesses to carve a niche for your bakery.

Detail your research, highlighting the size of your target market, preferences (like a demand for gluten-free or doughnut offerings), and potential market growth.

4. Organization and Management

This section provides insight into the structure of your bakery business and the team behind it. Your management section should highlight the people behind your business, their roles, and their experiences relevant to running a successful bakery business. 

What should you cover in organization and management plan?

  • Are you the sole owner, or are there partners? What’s the business structure: LLC, sole proprietorship, or corporation?
  • Full names of the owners
  • Percentage of company each owner holds
  • Manager’s full name
  • Position and primary responsibilities
  • Educational background
  • Past track record with hard numbers to back it up
  • Food industry recognition
  • Important experience and skills that will help your business be successful

5. Sample Menu

The menu is a direct reflection of your bakery’s offerings, showcasing the range and uniqueness of your products.

What should you consider when creating a sample menu?

  • Menu items: From traditional baked pastries to specialty items like gluten-free or vegan goods.
  • Unique Selling Proposition: What sets your menu apart? Maybe you source local ingredients or have an age-old family recipe.
  • Menu Pricing : Keeping in mind production costs and market demand, ensure your pricing strategy is competitive yet profitable.

6. Marketing Strategy

In this digital age, effective marketing can elevate your bakery business. From social media platforms like Facebook to search engine optimization (SEO) and content marketing techniques, this section should reflect your adaptability and modern approach.

What should you cover in a marketing strategy for your bakery business?

  • Define your brand: Your bakery’s image, tone, and overall feel.
  • How would you plan to attract customers? This could include social media accounts, SEO for your website, or even local events.
  • Considering using an  online food ordering system so that your customers can place orders for dine-in, pickup, or delivery. This allows customers to get their food & drinks quickly and conveniently, reducing waiting time and improving the overall customer experience. 
  • Create a  digital menu with QR code  to make your menu easy for your customers to access online
  • Sales Strategies: Offer promotions, loyalty programs, or partnerships with other local businesses to boost sales.

7. Business Operations

This segment delves into the day-to-day running of your bakery. 

What operational issues you should address in your business plan?

  • Supply chain: Where and how often you need to order supplies.
  • Operating hours: The hours you’re open for business, which might differ if you also offer delivery.
  • Staffing: Details about your staff, including roles and training.
  • Equipment: The equipment you need to purchase, from mixers to ovens.

8. Financial and Loans

Starting a bakery is an exciting venture, but it’s essential to understand the financial implications. Generally, starting a bakery can cost anywhere between $10,000 and $50,000 . This broad range is due to several factors:

  • Location: Renting space in a prime city location will cost more than a suburban or rural area.
  • Equipment: High-end, new equipment like mixers, ovens, and display cases will significantly increase costs.
  • Initial Inventory: Ingredients and supplies needed to kickstart operations.
  • Licenses and Permits: Depending on the region, health, business, and other licenses might be required.
  • Interior Decor: Ambiance matters in a bakery. Furnishings, décor, and even music systems can add to costs.
  • Staffing: If you’re hiring from the start, initial salaries need consideration.

There are various avenues to secure funds for your bakery:

  • Personal Savings: The most straightforward way but can be risky.
  • Bank Loans: Traditional but might require collaterals and have strict repayment schedules.
  • Angel Investors: Individuals willing to invest in promising startups.
  • Crowdfunding: Platforms like Kickstarter allow the public to fund your idea.
  • Partnerships: Bringing in a partner can split the financial burden.

When seeking funds, be prepared to answer:

  • How much funding do you need?
  • How will the funds be utilized?
  • What’s your bakery’s projected revenue?
  • How and when do you plan to repay loans or offer returns to investors?
  • What sets your bakery apart from others to ensure success and profitability?

9. Financial Projections

Break-even analysis

The break even analysis is a critical financial tool that pinpoints when your bakery will be able to cover all its expenses and begin to make a profit. Essentially, it’s the point where total revenue equals total costs, resulting in neither profit nor loss.

To calculate your break-even point, you’ll need to gather your fixed costs , variable costs, and your expected selling price per item.

Use this formula:  Fixed Costs / (Price – Variable Costs) = Break Even Point

Projected profit and loss statement

This is essentially an income statement that forecasts your bakery’s future revenues, costs, and expenses. It provides a chart to show potential profit or loss over a specified period. Regularly refer back to this to gauge the business’s financial health.

Cash flow analysis

The cash flow analysis gives a detailed overview of where money is coming from and where it’s being spent, encapsulated in a cash flow statement. Along with the balance sheet and the income statement, it offers a comprehensive view of the bakery’s financial health.

Bakery Business Plan Sample

The following is a comprehensive sample of a bakery business plan

  • Mission: To provide the community with high-quality, artisanal baked goods made from locally-sourced, organic ingredients.
  • Vision: To be the top choice in the city for authentic baked delicacies and create an inviting space for patrons to gather, savor, and celebrate.
  • Bakery Description: “Bread & Beyond” is an artisanal bakery focusing on handcrafted breads, pastries, and cakes.
  • Costs: $40,000 (Startup)
  • Profits: Anticipated net profit of 20% within the first year, with a steady increase in subsequent years.

2. Description of the bakery

  • Bakery Concept: A rustic-chic bakery emphasizing organic, locally-sourced ingredients.
  • Bakery Name : Bread & Beyond
  • Bakery Type: Artisanal
  • Bakery Location: 123 Bakers Lane, Downtown District
  • Order Fulfillment: Both in-store purchases and online orders with pickup and delivery options available.
  • Working Hours: 7 AM – 7 PM, Monday to Sunday

3. Menu offer

  • Type of Food: Handcrafted bread, pastries, cakes, and coffee.
  • Offer: Customers can enjoy classics like sourdough bread and croissants, alongside specialty items like gluten-free blueberry muffins and vegan chocolate cake.
  • Unique Selling Point: Every item is made using organic ingredients sourced from local farmers.

4. Market and competition analysis

Market Analysis:  

  • Target Customer: Health-conscious individuals, ages 25-45, looking for premium baked goods.
  • Size of the Target Customer: Estimated 50,000 individuals in our city match this demographic.

Competition Analysis:  

  • Size of the Competition: All three competitors have multiple branches but none offer exclusively organic products.
  • Competitors’ Offer: Basic breads, pastries, and some cakes.
  • Competitors’ Prices: $2-$5 for bread and $3-$7 for pastries.

5. Investment plan (detailed cost analysis)

Investment cost: $40,000

  • Rent deposit: $10,000
  • Renovation: $5,000
  • Equipment: $12,000 (ovens, mixers, display counters)
  • Initial Inventory: $5,000
  • Licenses & Permits: $3,000
  • Miscellaneous: $5,000

Operating Costs (Monthly) : $16,500

  • Rent: $2,500
  • Salaries: $8,000 (for staff of 5)
  • Utilities: $1,000
  • Inventory: $3,500
  • Marketing: $1,000
  • Miscellaneous: $500

6. Financial forecast

Given the costs and projected monthly sales of $25,000, we aim to recover the initial investment within the first 8 months and subsequently operate at a steady profit.

7. Marketing plan

Our marketing approach will utilize both online and offline strategies. We’ll have an active presence on social media platforms, especially Instagram, showcasing our daily bakes. In-store promotions, participation in farmer’s markets, and partnerships with local coffee shops will also be key. SEO (search engine optimization) will be used to ensure locals easily find us online.

Tips for Creating a Successful Bakery Business Plan

Crafting a comprehensive bakery business plan isn’t merely a bureaucratic hoop to jump through; it’s a blueprint for your business’s future. Here are some key tips to ensure its success:

Understand Your Target Market’s Needs: Before anything else, delve deep into understanding your target market’s preferences, dietary restrictions, and buying habits. This ensures your offerings resonate with potential customers.

Set Clear Milestones: A business plan isn’t static. Set clear milestones to measure your progress. Whether it’s reaching a sales goal or opening a second location, having tangible milestones keeps you on track.

Ensure Every Section of Your Bakery Business Is Detailed: Don’t gloss over any part. Whether it’s the financials, marketing, or operations, be thorough in detailing how you plan to approach each segment.

Leverage the Benefits of Writing a Bakery Business Plan: Beyond attracting investors, a well-constructed business plan acts as an internal roadmap. It can guide decisions, help you anticipate challenges, and keep your business aligned with its core objectives.

Stay Adaptable: The business environment is dynamic. Be sure you’re prepared to adjust sections of your plan as you gain more insight into your market or as external factors change.

Be Clear on Tools and Platforms You Plan to Use: In today’s digital age, mention specific tools, software, or platforms you plan to use, be it for marketing, sales, or operations. Their strategic implementation can set you apart from competitors.

Frequently Asked Questions

1. How do I start a business plan for a bakery? Starting a business plan for a bakery begins with research and gathering the following information: target market, competition, pricing strategy, and more. Begin with the company overview section, detailing the bakery’s background, mission, and objectives. This foundational work will give you clarity as you progress through each section of your plan.

2. How to make a business plan for bread and pastry? Just like any other bakery, creating a business plan for bread and pastry involves pinpointing your target audience, understanding trends in the bread and pastry market, and detailing the specific products you’ll offer. Sometimes, bakeries specializing in these products might choose to focus on artisanal or unique offerings that customers are looking for.

3. How profitable is a bakery business?

In the US, the average bakery has an annual turnover of $450,000. However, the profitability of a bakery business varies based on factors like location, market demand, and operational costs. With the right strategies and understanding of what customers are looking for, it can be a lucrative venture. Keeping an eye on the key components like product quality, pricing, and customer service can significantly influence profitability. Check out this detailed article about how much does a bakery make .

4. What bakery items make the most money? High-margin items like specialty cakes, pastries, and sometimes bakeries with unique offerings such as gluten-free or vegan baked goods can yield higher profits. Identifying and focusing on items that are both popular and have good profit margins is crucial.

5. What are the initial costs to start a bakery business? The initial costs involve renting or purchasing a space, buying equipment (ovens, mixers, display cases), initial inventory, licenses, and permits. The costs can vary widely based on location and the scale of your operations when starting your new venture. Check out this article on how much it cost to start a bakery .

6. What are some effective marketing strategies for a bakery business? Utilize social media platforms to showcase your products, offer loyalty programs, collaborate with local businesses, or host events or classes in your bakery. Engaging content marketing and SEO techniques can help draw more traffic to your bakery’s online presence, making it easier for potential customers to find you.  

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Bakery Business Plan Template

Written by Dave Lavinsky

Growthink Bakery Business Plan Template

Bakery Business Plan

If you want to start a bakery business or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their bakery businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a bakery business plan step-by-step so you can create your bakery’s business plan today.

Download our Ultimate Bakery Business Plan Template here >

How To Write a Business Plan For a Bakery

Executive summary.

The executive summary is the introduction to your business plan, although it is often written last. It helps investors and lenders quickly decide whether they are interested and should read more, so the first page must get right to the point. Include a concise description of your bakery (or bakery concept if you are a startup), a short analysis of the market, proof that customers are willing to pay for products, and an explanation of the unique qualifications that ensure your bakery will be a success.  

Company Overview

This section of your bakery business plan provides a comprehensive look at the company’s history. Include details on your bakery’s legal structure, founding, location, and current business stage, as well as your past accomplishments and unique qualifications. Clearly explain anything that makes you a strong competitor in this market, such as existing contracts with retailers, a head baker with impressive restaurant credentials, or exclusive access to award-winning recipes.

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In this section you should also give an overview of the type of bakery you operate or will operate in the future.

For example, do you or will you operate a:

  • Traditional bakery (selling breads, biscuits etc.)
  • Commercial bakery
  • Bakery specializing in wedding cakes
  • Wholesale bakery
  • Doughnut shop
  • Pastry shop
  • Bakery Cafe
  • Food truck bakery
  • Home Bakery

Industry Analysis

This section assesses that bakery industry and how your bakery fits into the existing landscape. Address any challenges that you unearth with a solid strategy for success. Also keep in mind that your market is not the entire baked goods market. Rather, it is your niche of that market.

For example, while the baking industry in the United States generates more than $30 billion per year in revenues, your bakery will only comprise a fraction of that amount depending upon your geography, focus, etc. So, zero in on the specific products and customers you plan to target and focus your analysis on those elements.  

Customer Analysis

This section of your plan details your bakery’s target audience, that is the customers you will serve. Note that in many cases, a bakery might target multiple market segments. Do you plan to target brides to be? Children’s birthday parties? Upscale families who regularly hold private events for 100 or more guests?

Or do you primarily serve walk-in customers. This segment usually comprises neighborhood resident who know about your bakery, and who tend to visit regularly.

Even if you’re not a commercial bakery, you might serve local delis, grocery stores and bodegas. Clearly, it helps a bakery’s sales if it has a greater number of distribution points. The same is true in the case of restaurants. A bakery can supply breads, bagels, cakes, pastries and other products to restaurants and hence create a larger customer base.

Whatever target markets you serve, clearly define them in your business plan. Detail the demographics of each. For example, are they wealthy males and females? Are they college students? Are they local restaurants? Whatever the target customers, you need to identify and detail them so you’ll know their needs and can better serve them.

Likewise, discuss the psychographics of your target customers. Are they price conscious? Is quality the most important issues they will use to judge your bakery? Do they insist on reliability and premium service?

In addition to documenting the demographic and psychographic variables that define your target market, detail how your bakery will meet their unique needs.

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Competitive Analysis

This section of your bakery business plan details your direct and indirect competitors. Direct competitors are other companies who fulfill the same need for the same target market, most likely others selling similar baked goods. Your indirect competitors are those who fulfill a different need for the same target market, or those who fulfill the same need for a different target market. An example of an indirect competitor could be a nearby coffee shop.

In your plan, name and describe your direct competitors individually, and explain what sets your bakery apart from them. Create a more general category for your indirect competitors and discuss them as a whole.

Finally, detail your areas of competitive advantage and what will make you distinct. Most successful bakery owners identify products that no other local bakeries offer, such as a treat that is exclusive to your bakery and that drive customers to frequent your store. Also, based on the demographics and psychographics discussed above, you may be successful being the only local bakery selling nut-free cakes, or making vegan and gluten-free baked goods with local and organic ingredients.  

Marketing Plan

Your bakery marketing plan explains how you will penetrate your target market, based on the four P’s: Product, Price, Place, and Promotion.

The Product section explains all the products and services your bakery will provide. Price refers to the price points at which you will sell each item, along with your reasoning for choosing those prices. Place explains all your distribution methods, such as your retail stores, your company website, and third-party retailers. Promotion defines the ways you will entice customers to purchase your baked goods, such as free samples and web advertising.

In addition to describing the four Ps your bakery marketing strategy, you should explain how you will retain existing customers through loyalty programs or other methods. Also, in this section of your plan, particularly if you are startup retail bakery, you should detail the design and display of your location.

Clearly, your bakery’s storefront should be designed in a way that attracts walk-in customers. Consult an interior designer to get insight on how to create a warm and inviting ambience in your bakery.

Operations Plan

The operations plan explains the processes by which you will turn your vision into a reality. It includes the everyday short-term processes involved in physically baking your products, managing your retail space, packaging your baked goods, conducting sales transactions, choosing and working with vendors, and delivering the finished products to your customers among others.

Your operations plan must also include the long-term processes involved in growing your company, such as introducing new products or retail stores, achieving specific sales milestones, and hitting other important business-oriented goals such as hiring new employees, launching new locations, etc.  

Management Team

This section provides biographies of the key members of your company’s management team, with an emphasis on strong business skills. Focus on educational background, previous experience with successful start-ups, and other elements that demonstrate your and/or your team’s ability to build a company. A strong advisory board can help make up for weaknesses provided you clearly articulate how your advisors will directly impact the company’s growth.

Financial Plan

The financial plan is often the most difficult part of the business plan to write, yet it is the section that potential investors and lenders spend the most time analyzing.

Provide a list of all revenue streams, including their relative importance and timeline for implementation, as well as the amount and expected sources of outside funding. Include a summary of past (if applicable) and projected Income Statements, Balance Sheets, and Cash Flow Statements. The assumptions made in these documents must be reasonable and verifiable based on an analysis of similar companies.

Make sure you don’t miss anything when putting together your financial projections or you could lose credibility in the eyes of readers of your plan. For example, make sure you adequately enter costs which most bakeries incur such as space (owned or rented), equipment (planetary mixers, cylinders, gas stove, cooling fridge, deep fridge, storage utensils, etc.), electricity and water, staff, furniture and décor, licenses, insurance and legal fees.  

The appendix includes your full financial projections, as well as any other documentation that supports the claims made in the business plan. For example, it might include a list of key existing customers or letters from potential partners. Likewise, if you’re a startup bakery, including sketches of the proposed store design should appear in your appendix.  

Putting together a business plan for your bakery business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the bakery business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful bakery business.

To further help you, we have other articles on key aspects of how to start your bakery . and running it effectively. Specifically, our bakery marketing plan will help you develop the best promotions strategy. Our bakery startup costs post will let you know what costs to expect.

Bakery Business Plan FAQs

What is the easiest way to complete my bakery business plan.

bakery business plan template

Where Can I Download a Bakery Business Plan PDF?

You can download our bakery business plan template PDF here.

Our bakery business plan PDF is a free resource to help you get started on your own business plan. This is a business plan template you can use in PDF format for a bakery, home bakery, wholesale bakery or any other type of bakery.

What Is a Bakery Business Plan?

bakery business plan template

Why Do You Need a Business Plan?

If you’re looking to start a bakery or grow your existing bakery you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your bakery in order to improve your chances of success. Your bakery business plan is a living document that should be updated annually as your business grows and changes.

What Are the Sources of Funding for a Bakery?

Bakeries are usually funded through small business loans, personal savings, credit card financing and/or angel investors. This is true for a home bakery business plan too. This is true for a wholesale bakery business plan, a home bakery business plan and a commercial bakery.

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OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how our professional business plan consultants can create your business plan for you.

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How to Write a Bakery Business Plan + Template

Business-Plan-VLFG

Creating a business plan is essential for any business, but it can be especially helpful for bakery businesses who want to improve their strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every bakery owner should include in their business plan.

Download the Ultimate Bakery Business Plan Template

What is a Bakery Business Plan?

A bakery business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Bakery Business Plan?

A bakery business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Bakery Business Plan

The following are the key components of a successful bakery business plan:

Executive Summary

The executive summary of a bakery business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

  • Start with a one-line description of your bakery /
  • Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your bakery , you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your bakery firm, mention this.

You will also include information about your chosen bakery business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a bakery business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

  • What part of the bakery industry are you targeting?
  • How big is the market?
  • What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.  

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a bakery’s customers may include:

  • Families with young children who are looking for birthday cakes or other special occasion desserts
  • Businesses that need to order large quantities of pastries or other baked goods for their office functions
  • Individual customers who want to purchase small quantities of freshly-baked goods for their personal consumption

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or bakery services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

  • Product/Service: Detail your product/service offerings here. Document their features and benefits.
  • Price: Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
  • Place: Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
  • Promotion: How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your bakery business via word-of-mouth.

Operations Plan

This part of your bakery business plan should include the following information:

  • How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
  • What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. 

Examples of milestones for a bakery business include reaching $X in sales. Other milestones could include adding new products/services, opening additional locations, or increasing employee headcount.

Management Team

List your team members here, including their names and titles, as well as their expertise and experience relevant to the foodservice industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

  • Revenue: how much revenue you generate.
  • Cost of Goods Sold: These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
  • Net Income (or loss): Once expenses and revenue are totaled and deducted from each other, this is the net income or loss

Sample Income Statement for a Startup Bakery  

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

  • Assets : All of the things you own (including cash).
  • Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
  • Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Bakery  

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

  • Cash Flow From Operations
  • Cash Flow From Investments
  • Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup bakery business.

Sample Cash Flow Statement for a Startup Bakery  

You will also want to include an appendix section which will include:

  • Your complete financial projections
  • A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
  • Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and grow your bakery . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it. 

Creating a business plan forces you to think through all aspects of your business including marketing, finances, operations, and more. Ultimately, a well-thought-out business plan is key to a successful bakery.  

Finish Your Bakery Business Plan in 1 Day!

Wish there was a faster, easier way to finish your bakery business plan?

With our Ultimate Bakery Business Plan Template you can finish your plan in just 8 hours or less!

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Bakery Business Plan

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2. Write an executive summary

The executive summary is a concise description of your entire bakery business plan. It highlights the key findings and entices the reader to delve further into your business plan. So make sure to keep it interesting.

A well-drafted executive summary includes an answer to every question, a potential investor might have.

For instance,

  • What is the core objective of your bakery business?
  • What are the pain points of your target customers and what solutions can you offer?
  • What type of baked goods will you offer?
  • What is your target market?
  • What is your marketing strategy?
  • What are the financial highlights of your bakery business?

As you start writing, remember that the executive summary should summarize the plan and not your business idea.

Lastly, fit your compelling summary description in 1-2 pages.

3. Conduct a competitive and market analysis

The market analysis section paints a clear picture of your ideal target market, bakery industry trends, and your competitors in the market. In a way, this section is your chance to validate the potential success of your bakery shop.

The market analysis section of your bakery plan must include:

Market share, growth potential, and industry trends

Identify your targeted available market (TAM) through thorough market research and determine your share in the bakery market. Analyze the emerging trends in the bakery market and assess your growth potential as a retail bakery.

Understanding of the target market 

Who will be your potential customer at a bakery shop?

It gets much easier to succeed in the market when you have a clear understanding of who your target customers are.

In this section of customer analysis, you will create a buyer’s persona of your ideal customer by understanding their psychographic and demographic details.

Competitor analysis

This is an equally important part of the market study, where you evaluate the position and competitive landscape of your bakery shop.

Begin by identifying your top competitors and evaluate your strengths, weaknesses, opportunities, and threats against other bakeries. Establish your competitive edge and show the potential investors that your business stands a promising opportunity in the competitive market.

description of bakery business plan

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4. Prepare a company overview

The company overview section of a bakery’s business plan is a brief description of your bakery business concept, its legal structure, location, and value proposition.

Be creative and write a compelling section that can propel the readers’ interest in your business idea.

Wondering what to include in your bakery’s company overview section? Let’s check:

  • Type of bakery business: retail bakery, specialty bakery, cloud bakery, mobile bakery, etc.
  • Business structure: Sole proprietorship, LLC, partnership LLC, corporation, etc.
  • Mission statement
  • Value proposition
  • Quantifiable business goals and milestones
  • History and background of the bakery, if applicable
  • Partnership and ownership structure
  • Name of owners/ partners
  • Operating hours
  • Service style

Drill down to details and make this section an engaging read.

5. Describe your products and services

After describing your bakery structure and mission statement in the previous section, you will now outline the product and service offerings of your bakery shop.

As a bakery business, you may sell a variety of delicious baked goods such as pastries, cakes, fresh bread, cookies, tarts, pies, donuts, sweet buns, etc. Add this to your product section and also non-baked goods such as savory snacks, coffee, etc, if it’s on your menu offering.

Specifically mention, if you will have products for special diets, i.e. gluten-free, keto-friendly, sugar-free, vegan baked goods, etc.

products and services for bakery business plan

6. Bakery store design and layout

An effective bakery business plan must include a blueprint of your bakery shop’s layout and design to demonstrate the bakery’s concept practically to the readers.

Mention your bakery size and the space allocated for the back of the house and front of the house operations. Also, explain how the proposed layout will increase the efficiency of your business operations in great detail.

In this section, you will also talk about the decor and theme that will create a warm ambiance for your target audience. Keep in mind that the decor should reflect the branding image you want to create in your target market.

Offer an immersive experience to the readers while explaining this section.

bakery store design and layout

7. Prepare a bakery marketing plan

The marketing plan offers a detailed outlook of marketing strategies you will use to market and promote your bakery shop. Consider it as a roadmap that will guide you in building a brand of sustainable value in the market.

So how do you build a perfect marketing plan?

Begin by identifying the marketing channels and different types of digital marketing campaigns that will work best for your potential customers. Now, allocate the monthly budget to different marketing activities. Lastly, devise a marketing strategy for each channel with a clear plan of action.

Here are a few marketing strategies that are popularly used by successful bakery businesses:

  • Social media platforms for brand development
  • Email marketing for promotional offers
  • Video content such as easy baking recipes, tips, tricks, etc
  • Online workshops and live sessions
  • Influencer marketing
  • Tasting events and sampling
  • Customer testimonials

Now detail all your plans in this section and show your investors that you have a solid way to establish your business’s popularity in its target market.

8. Outline your organizational structure

In this section of your bakery business plan, you introduce the management team and employees at your shop. Also, highlight the organizational structure and hierarchy of employees in the organization.

Begin by introducing the owners and their role in your organization. Highlight their experience in the bakery industry and the key skills that can benefit the business.

Introduce your talented baker and their role in recipe development and standardization. Show their experience in the baking field and prove their asset worthiness.

Draw a clear flowchart depicting the flow of authority and responsibility in your bakery business. It is your chance to show the investors that you have a team and knack to take this business on a successful path.

9. Create a logistics and operational plan

The operations plan of your bakery business plan is a strategic document highlighting the processes, procedures, and resources needed to efficiently run your bakery shop.

A well-planned operations plan is like a business manual that has answers to all the questions one might have while running a bakery shop.

Wondering what to add to your operations plan? Well try to include answers to the following questions to make it detailed and comprehensive:

  • Physical facilities: What will be your bakery location to produce bakery goods? Will you serve customers from that location or a different shop? Are you planning to sell the bakery goods online?
  • Suppliers: Where will you get the raw materials and supplies for producing bakery goods? Who will supply non-bakery items like scones, sandwiches, and savory snacks?
  • Inventory: Where will you store the raw material and ingredients? What will be the shelf life of these ingredients? How will you manage the stock levels? What are the minimum thresholds for different items and how long it takes to stock them?
  • Production: Who will bake the goods? How long is the process? Will everything be made fresh or in batches to be stored for a few days? Will there be recipe cost cards for each menu item? How will you meet an unexpected spike in demand?
  • Bakery Equipment: What type of bakery equipment will you require? Will there be a POS system at your store? What other technologies will you use? How will you take online orders?

The amount of precision here will help you regulate your operating expenses once the bakery starts serving the customers. Proper planning is advisable at this stage.

10. Create a Financial Plan

And now comes the most exciting part for investors- a financial plan. The figures in financial statements are helpful in determining the viability of your business idea. So this section holds a considerable weightage in terms of whether you will get funding or not.

To ensure you create a comprehensive financial plan, including financial projections for these key components:

  • Cost of starting a bakery shop
  • Sales forecast
  • Revenue projection
  • Operating expenses
  • Pricing strategy
  • Income statement/ Profit & Loss statement
  • Break-even analysis
  • Cash flow statement
  • Balance sheet
  • Business ratios

In this section, you will also evaluate your funding requirements and identify the funding sources for your business. i.e. bank loans, SBA-guaranteed loans, angel investors, and personal savings.

Having realistic financial projections at hand will help you realize your financial goals while evaluating the sustainability of your bakery business.

However, creating the projections for all these elements from scratch can get overwhelming. Additionally,  you also need to work on visuals and graphs to add impact and clarity to your plan.

Well, there is an easy way. Create your plan with the Upmetrics Financial forecasting tool . This tool will generate key reports and visuals that can be easily downloaded and added to your plan.

financial plan for bakery business

We hope this sample plan will guide you in writing a perfect business plan. Now, let’s move forward and check the industry trends ruling the bakery world.

Bakery Industry Highlights 2023

Before you open a bakery, here are some latest highlights from the bakery industry, you may find helpful:

  • Bakery market size: The US bakery market size was valued at $99.47 billion dollars in 2023. It is projected to grow at a CAGR of 2.08% between 2023-2028.
  • Retail Bakeries: According to IBIS World , there are 8,780 independent retail bakery shops in the US.
  • Bakery consumption: In 2022, Americans consumed 8.6 billion kilograms of cake and pastry goods, a sizable amount compared to other countries.
  • Bakery trends: There is a growing trend of providing healthier alternatives, i.e. gluten-free baked goods in the bakery market. The organic and gluten-free baked goods market grew by 2.45% in 2022.
  • Market Saturation: 55% of commercial bakery revenue in the US is generated by 3 major players- Grupo Bimbo, Flower Foods, and Campbell Soup.
  • Specialty bakery market: The US Specialty bakery market share is expected to grow by 10.54 billion US dollars by 2026.

Download a sample Bakery business plan

Need help writing your own bakery business plan? Well, download our bakery business plan pdf and write your plan section-by-section with utmost precision.

Upmetrics templates are perfectly suited for entrepreneurs who need a little help to kickstart their business planning. Import the data into the editor and start planning.

The Quickest Way to turn a Business Idea into a Business Plan

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Frequently asked questions, what should be included in a bakery business plan.

An effective bakery business plan must include:

  • Executive summary
  • Business overview
  • Industry and competitors analysis
  • Bakery goods and services
  • Bakery design and layout
  • Operations plan
  • Key management team
  • Financial bakery plan

How long should my bakery business plan be?

A bakery business plan should be not more than 15-20 pages including graphs, visuals, and charts. You are likely to lose the interest of investors with a lengthy plan. However, keeping it extremely short is also not favorable, as it would not cover important details. So try using crisp content for your business plan.

Can a bakery business plan template help in setting clear business objectives and goals?

Absolutely yes. A template offers a variety of prompts that will help you to write each section clearly and cohesively. Moreover, you will get a variety of bakery-specific examples that shall help in clearly determining your goals and objectives.

Do I need to have financial projections in my bakery business plan?

Yes, financial projections are important to assess the viability and profitability of your business idea. If you are planning to seek investor funds, this section is of crucial importance. Investors will evaluate the financial section and determine whether to invest or not.

Can I use the same bakery business plan template for different locations?

Yes, you can. However, you need to alter the content of your business plan for different locations and target markets by making specific modifications.

About the Author

description of bakery business plan

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read 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.

Bakery-Financial-Model-Excel-Template-Someka-S13

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-Plan-Template-Someka-Excel-S02

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.

Business-Plan-Template-Someka-Excel-SS3

– 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.

Business-Plan-Template-Someka-Excel-S05

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.

Bakery-Financial-Model-Excel-Template-Someka-SS10

– 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

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Bakery Business Plan: How to Write a Bakery Business Plan

If you are considering starting a bakery business or expanding your bakery store then a writing bakery business plan is a great place to start. Opening a bakery business is no easy feat. It takes more than an extraordinary baking talent to run a successful restaurant or bakery business and work with seasonality in business .

From having a great bakery website to creating the perfect bakery marketing strategy to understanding your sell through rate , a lot of things go into launching a bakery business. A bakery business plan accounts for all bakery operations and streamlines your business process flow .

Key Takeaway - Having a bakery business plan helps you create a blueprint for your business. You can document your bakery ideas, identify the next steps to execute these ideas, and make sure you are on track to accomplish your ideas with a business plan.

So, how do you write a business plan for a bakery business? In this guide, we’ll review each section of a bakery business plan and some action plans for a bakery business.

starting-a-bakery-business-plan

How to Write a Bakery Business Plan

A well-written business plan will help you stay organized and hit the ground running when you start your business. With a bakery business plan, you can analyze every detail of your business idea and work towards achieving it.

Writing a business plan offers a lot of benefits for your business. Even if you already started your bakery business, it’s not too late to write your business plan. This will help in your business expansion efforts.

It is important to be as detailed as possible. Your bakery business plan will serve as a manual for your bakery business, make sure it is clear and easy to understand. Before you get started, you have to consider the type of bakery business you want, your ideal niche market, and if you need to secure funding from the best banks and investors.

Asking vital questions is crucial to creating a solid plan. You can even check other bakery business plan samples online for ideas. Let’s look at how to write a business plan for your bakery business.

8 Sections of a Bakery Business Plan

What sections should a bakery business plan have?  When writing a business plan for a bakery or food business, include these sections:

  • Executive Summary

The executive summary is an overview of your plan. Although the executive summary is the last thing you’ll write for your bakery business plan, it is the first thing you’ll present to potential investors.

Your executive summary describes your bakery’s mission statement, concept, why your bakery is unique, and how you plan to make it a success. You should also include your expected growth projection.

An executive summary should be about a page in length. It should answer the following questions:

  • What does your bakery do? Will you sell baked goods online ? Will you have a baking subscription box ?
  • What is your brand concept?
  • Who are your target customers?
  • Why will your audience love your brand?
  • How is your bakery different from other bakeries?
  • How do you plan to promote your bakery?
  • What bakery technology will you use?
  • How much money do you need to get started?
  • What are your current and projected financial profits?
  • Who are your partners? 
  • What are your overall goals and objectives?
  • Where will your bakery be located?

Once, you have these questions answered, you can create a powerful executive summary.

Tips for Writing a Bakery Executive Summary

  • Begin with a strong open statement: The first paragraph should introduce the executive summary and explain your bakery idea.
  • Be clear and concise: Use clear and concise language to make it easy for investors to read your summary. Do quality checks and revise your written summary.
  • Describe your core strengths: Include details about your core strengths and what makes your business and products unique.
  • Prepare your summary for different audiences: If you plan to present your business plan to investors, it is important to tailor your executive summary to fit the audience.
  • Avoid superlatives or uncheckable claims: Stay realistic with your summary. Avoid claims such as the best wedding cake in the world. Provide numbers and figures for each claim in your executive summary.
  • Company Overview and Description

This section should provide an in-depth description of your company including history, ownership structure, and management team. It should outline your vision and mission statement as well as your unique selling proposition.

The company description is the first thing you’ll write when creating a business plan for the bakery. It is in this section that you’ll dive deeper into the bakery ideas you will summarize in the executive summary.

You can talk about your team, including key members and their salaries. It is also a good idea to list your short- and long-term goals. Make sure these goals are measurable. You can highlight some eCommerce metrics and key performance indicators, as well as the timeline for achieving the goals.

When writing your company description, answer the following questions:

  • What type of bakery will you open? Cakes? Pastries? Gluten-free baked goods? Online bakery?
  • What theme or bakery design will your bakery have?
  • What is your unique selling proposition ?
  • What are your goals? 
  • Do you have a special recipe?
  • What is your legal structure?
  • What is your business structure?

Tips for Writing a Company Overview

  • Start with your elevator pitch: Your company overview should begin with an elevator pitch. Include a few sentences about your business and what you do. Keep it short and simple.
  • Stick to the basics: Try not to write too many details in this section. While it is important to answer overview questions, make sure you stick to the basics.
  • Write with a structure: Your reader should be able to take a glance at your overview and understand the structure of your business plan. You can create sections for relevant aspects of your company overview.
  • Show passion and interest: It is important to show passion for your business in your writing. Your excitement will keep the reader interested and engaged as they go through your business plan.

ebook-resources-list-download

  • Market Analysis

Your market analysis will describe your potential niche market , how big it is, and if there’s a market opportunity for your business. You can highlight trends affecting your industry, the buying habits of your target market, and how you will fit into the existing market.

You must demonstrate your knowledge of the food and beverage industry in your market analysis. You should include details about the competitive landscape. Additionally, identify your strengths, weaknesses, opportunities, and threats.

When writing your market analysis, consider the following:

  • Demographics. Who are your customers? Can they afford your products? 
  • Trends. Any seasonal trends? Are your target customers willing to spend on specialty baked goods? Will the type of wholesale restaurant supplies and ingredients you use matter to them?
  • Competitors. How can you stay ahead of the competition? What strategies are your competitors using to stay ahead? Can you be a contender in the market? What are my competitors’ strengths and weaknesses?
  • Regulations. What regulations will apply to your bakery business? How will you comply with these regulations?
  • Pricing. What will be your pricing structure? Will you offer wholesale vs retail price?

Tips for Writing a Market Analysis

  • Conduct in-depth research: You can use the internet to get raw data about your market. For instance, demographic data can be gotten from the U.S Census Bureau’s website. You can also do short in-person surveys in your intended location. 
  • See through the eyes of your target customer: Looking at your product from the perspective of your target market will help you see if you have an opportunity or not. What problems need to be solved? What will your bakery offer as a solution to these problems?
  • Use visual assets: Market analysis is about numbers, metrics, and statistics. You can use graphs and charts to illustrate these numbers.
  • Business Offerings

This section will list your products and services. Whether your bakery will focus on freshly baked pastries or sweet cakes, you can go into detail about your offerings here. 

You can also describe if you plan to be a wholesale distributorship to restaurants or offer ghost kitchen services. Make sure to explain why you want to sell these products and services. It will be a great idea to mention how these offerings will drive foot traffic to your brick and mortar bakery store.

When writing your business offerings, answer the following questions:

  • Will you offer custom-made products or specialty items?
  • Do you make new recipes? Will you patent these recipes?
  • Are your offerings new to the area you plan to sell in?
  • Where will you buy your restaurant supplies from? Who will be your wholesale restaurant food distributors ?
  • How do your offerings compare to others in the market?

Tips for Writing your Business Offerings

  • Describe the products: Answer questions about who can use the product, what ingredients will be in the product, and why your target market will buy the product.
  • Do a product comparison: Compare your offerings with what your competitors offer. You can use visual aids or tables to show differences and what will make your offerings unique.
  • Explain the ordering process: It is important to explain your ordering process. Will you receive online orders? How will your customers buy the product? What are your delivery options? Your order management depends on your offerings and can have several stages. Make sure to explain each stage.
  • Management and Organization

Your operations plan explains your team's organizational structure and what bakery technology you’ll need to run your business. Give details about your eCommerce team structure and incorporation. 

This section should include details about your management team. You can use an organizational chart to show the different roles and responsibilities of each team member.

  • Operations and Logistics

This section outlines how your bakery will create, sell, and deliver products. You want to address the following in this section:

  • How will you get suppliers? Explain where you’ll buy wholesale produce, ingredients, and restaurant equipment. There are several options, from dropshipping wholesale suppliers and food wholesale distributor s to local farmers and large-scale distribution warehouses.
  • What is your production plan? Describe your production process. Will you dropship your products? How will you handle a busy season?
  • Where will your team work from? Describe your facilities and if your physical retail store will be different from the bakery.
  • Which equipment will you need? List the tools and equipment you need to get started. You should also explain the operational tools and bakery technology you will use to manage your bakery. Include business tools like your restaurant POS system , order management tools, inventory management systems, and wholesale distribution as well as wholesale distribution management software .
  • How will you handle shipping and order fulfillment? Explain if you’ll be handling shipping and order fulfillment in-house or via a third-party fulfillment provider.
  • Marketing Plan

Every business needs a solid marketing plan. In this section explain how your bakery will attract new customers and PR strategies to enter the market. It is important to build a strong brand presence and this section will highlight how you plan to do it.

Your market analysis will help you identify your target market and what appeals to them. When writing your marketing plan, explain these points.

Answer these questions when writing your marketing plan:

  • Which marketing channels will you use to reach your target customers?
  • What is your market entry strategy?
  • Will you run promotions and paid advertising campaigns?
  • What are your marketing goals?
  • Will you promote certain products over others?
  • Will you have a bakery website?
  • How will you grow your online presence?
  • How will you measure your goals?
  • Financial Analysis and Projections

This is the final section of your bakery business plan. This section will focus on the financial projections and eCommerce accounting processes for your business. Describe the estimated costs for ingredients, bakery equipment, bakery technology, and bills.

For instance, you can include the cost of wholesale dairy , wholesale coffee beans , wholesale meat , cake pans, and even measuring cups. Your income statement, balance sheet, and cash flow statement should also be included.

It is important to keep the numbers real. Your financial plan will help you figure out how much you need to launch or expand your business.

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Frequently Asked Questions About Bakery Business Plan

Writing a bakery business plan is an important step in getting investors, staying organized, and expanding your business. Let’s answer a few common questions about writing a bakery business plan.

What are Bakery Items?

Bakery items include bread, cookies, cakes, pies, pastries, muffins, and other baked goods.

How do you Manage a Small Bakery?

Here are some tips on how to run a small bakery business:

  • Write your bakery business plan
  • Pay attention to high demand goods to sell
  • Invest in new bakery technology
  • Display freshly baked goods all the time
  • Advertise and promote your business
  • Launch loyalty programs and giveaways
  • Update your menu regularly

What are the Main Types of Bakeries?

A bakery can either be retail or wholesale. Retail bakeries sell direct to consumer s and wholesale bakeries sell to restaurant businesses, grocery stores, and cafes.

Get Ready to Launch

Writing a bakery business plan is the first step to running a successful bakery business. Remember, your bakery business plan is a manual that will help you keep track of your business goals.

You can always refer back to it and update it as the business grows. Creating a business plan is also a crucial step to getting investors impressed with your business ideas. So, make it count!

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Bakery Business Plan

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Jolly's Java and Bakery

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

There is a shortage of coffee spots where customers can get high quality coffee and freshly baked pastries in a higher income market in Washington state.

JJB offers a broad range of coffee and espresso products, all from high quality imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail.

Because Washington has a cool climate for eight months out of the year, hot coffee products are very much in demand. During the remaining warmer four months of the year, iced coffee products are in significantly high demand, along with a slower but consistent demand for hot coffee products. Much of the day’s activity occurs in the morning hours before ten a.m., with a relatively steady flow for the remainder of the day.

Competition

Competition in the local area is somewhat sparse and does not provide nearly the level of product quality and customer service as JJB. Local customers are looking for a high quality product in a relaxing atmosphere. They desire a unique, classy experience.

JJB is a bakery and coffee shop managed by two partners. These partners represent sales/management and finance/administration areas, respectively. The partners will provide funding from their own savings, which will cover start-up expenses and provide a financial cushion for the first months of operation.

Expectations

JJB anticipates sales as shown below during the three years of the plan. JJB should break even by the fourth month of its operation as it steadily increases its sales. Profits for this time period are expected to be relatively low in the first two years, increasing somewhat in the third. We are projecting investment of $140,000 from the two founders.

Financial Highlights by Year

Financing needed.

Startup requirements:

  • Startup expenses of $64K including $3K legal, $20K location premises renovation, $40K expensed equipment, and $1K other. These show up as negative retained earnings in the initial balance because they are incurred before launch.
  • Starting cash in the bank of $70K. (in initial balance)
  • Other current assets of $12K (in initial balance)
  • Long-term assets of $65 (in initial balance)
  • $110K initial investment from founders (Shows up in initial balance as Paid-in Capital.)
  • $100K 10-year loan from SBA (in initial balance)
  • $1K in accounts payable at startup. (in initial balance)

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Problem & solution, problem worth solving.

There is a shortage of coffee spots where customers can get high-quality coffee and freshly baked pastries in a higher income market in the southwest area of Washington state. 

Our Solution

JJB offers a broad range of coffee and espresso products, all from high-quality Columbian grown imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail.

Target Market

Market size & segments.

JJB focuses on the middle- and upper-income markets. These market segments consume the majority of coffee and espresso products.

Local Residents

JJB wants to establish a large regular customer base. This will establish a healthy, consistent revenue base to ensure the stability of the business.

Tourist traffic comprises approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.

Current Alternatives

Leading competitors purchase and roast high quality, whole-bean coffees and, along with Italian-style espresso beverages, cold-blended beverages, a variety of pastries and confections, coffee-related accessories and equipment, and a line of premium teas, sell these items primarily through company-operated retail stores. In addition to sales through company-operated retail stores, leading competitors sell coffee and tea products through other channels of distribution (specialty operations).

Larger chains vary their product mix depending upon the size of each store and its location. Larger stores carry a broad selection of whole bean coffees in various sizes and types of packaging, as well as an assortment of coffee- and espresso-making equipment and accessories such as coffee grinders, coffee makers, espresso machines, coffee filters, storage containers, travel tumblers and mugs. Smaller stores and kiosks typically sell a full line of coffee beverages, a more limited selection of whole-bean coffees, and a few accessories such as travel tumblers and logo mugs. According to the most recent data available, industry retail sales mix by product type was approximately 73% beverages, 14% food items, eight percent whole-bean coffees, and five percent coffee-making equipment and accessories.

Our Advantages

The retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine climate in southwest Washington stimulates consumption of hot beverages throughout the year.

JJB wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure stability of the business. In addition, tourist traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.

Keys to Success

Keys to success for JJB will include:

Providing the highest quality product with personal customer service.

  • Competitive pricing.

Marketing & Sales

Marketing plan.

Our marketing is rooted in the quality of the experience, to generate good word of mouth and repeat visits. That should generate good reviews on Yelp and Google Maps and similar review platforms. 

Of course we will pay attention to reviews and work with promotions to encourage reviews without being too blatant about it. 

We will also keep an up-to-date Facebook page and Twitter persona with regularly updated content. We will be slow to do promotions over social media, emphasizing useful content instead. Some of that will include community content. 

Locations & Facilities

JJB wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure the stability of the business. In addition, tourist traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market. JJB will have a storefront that is easily accessible from 2 different highways. 

Milestones & Metrics

Milestones table, key metrics.

Of course, the main metrics are the obvious ones: sales, direct, costs, expenses, and cash flow. But we will also be watching for units, customers, and social media metrics including Facebook likes and Twitter follows.  

Ownership & Structure

JJB is incorporated in the state of Washington. It is equally owned and managed by its two partners.

The company intends to hire two full-time  managers, one pastry chef and 3 part-time baristas to handle customer service and day to day operations.

Management Team

Mr. Austin Patterson has extensive experience in sales, marketing, and management, and was vice president of marketing with both Jansonne & Jansonne and Burper Foods. Mr. David Fields brings experience in the area of finance and administration, including a stint as a chief financial officer with both Flaxfield Roasters and the national coffee store chain, BuzzCups.

Personnel Table

Financial plan investor-ready personnel plan .">, revenue forecast, revenue by month, expenses by month, net profit (or loss) by year, use of funds.

We will be financing initial assets of $65,000 long-term assets (equipment, etc.) and $12,000 current assets plus initial inventory and the early months before break-even occurs. 

Sources of Funds

Two owners each investing $70,000. Total startup investment is $140,000

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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description of bakery business plan

How to Write a Bakery Business Plan

The bakery industry, whether it be a traditional bakery or a specialty bakery such as desserts, bread, and ethnic foods, has been growing at an above-average rate for the last several years, which has driven the demand for bakery business plans, bakery business plan templates, and bakery proform financial projections.

Our MBA business plan writer expert has pinpointed vital drivers fueling the bakery industry's expansion and the necessity for effective business plans. Innovative bakery products constantly introduced by owners result in a dedicated customer base.  Such unique bakery offerings could include artistic designs, high-quality ingredients, and novel processes that boost the flavor and charm of their baked goods.  Furthermore, strategically placed bakeries, like cupcake shops in busy malls, are rising to meet customer convenience.

Regardless of the growth catalysts and the escalated demand in the bakery sector, employing a professional business plan writer for bakery business plan creation provides a strategic advantage.  Consequently, our business plan consultant offers valuable tips for creating your bakery business plan, template, or pro forma financial projections (9/23).

CHECK OUT OUR BAKERY BUSINESS PLAN TEMPLATE!!!

Executive Summary for a Bakery Business Plan.

The executive summary should begin with a captivating introduction that conveys the essence of the bakery's concept and unique selling proposition. Describe the bakery's specialty products: artisanal bread, delectable pastries, or custom cakes. Highlight any signature items that set the bakery apart from competitors.

Next, provide essential details about the bakery's location and its significance. If the bakery is situated in a high-traffic area, near schools or offices, or in a vibrant neighborhood, emphasize the strategic advantage of the chosen location. Briefly introduce the key members of the bakery team, including the owner or founders, head baker, and any other critical personnel. Highlight their experience, expertise, and how their skills contribute to the bakery's success.

Mention the operating hours to give readers an idea of the bakery's accessibility to potential customers. If the bakery plans to open early in the morning to cater to breakfast crowds or offer late-night options, emphasize this aspect. Discuss the main marketing avenues that the bakery will utilize to attract customers. This may include social media marketing, partnerships with local cafes or businesses, community event participation, and other promotional strategies. Finally, provide a snapshot of the anticipated revenues and profits based on market research and financial projections. This summary should be a high-level overview, emphasizing the bakery's potential for profitability and growth.

Remember that the executive summary is the first thing potential investors, lenders, or partners will read, so it should be engaging, concise, and persuasive. By providing a well-crafted executive summary, the bakery business plan gains an edge in grabbing the reader's attention and convincing them of its potential for success.

Company Information and Location for a Bakery Business.

Start by introducing the bakery's name, legal structure (such as sole proprietorship, partnership, or LLC), and the owner's name and background. Describe the owner's love for baking and how that passion has driven them to start this bakery. Mention any culinary training, baking certifications, or prior experience in the industry that adds credibility to the venture.

Next, delve into the bakery's location and why it was chosen. Discuss the area's demographics and how it aligns with the target market. If the bakery is in a bustling neighborhood with high foot traffic or close to schools or offices, emphasize how this strategic location will attract potential customers. Additionally, if the bakery is part of a community that appreciates artisanal or specialty baked goods, highlight the opportunity to tap into this niche market. Incorporate details about the bakery's size and layout. Describe the kitchen facilities, baking equipment, and the potential for expansion as the business grows. If the bakery is designed to be a cozy neighborhood café, mention the seating capacity and ambiance that will create a welcoming atmosphere for customers.

By providing a compelling narrative that intertwines the owner's passion for baking with the strategic choice of location, the 'Company Information and Location' section becomes an enticing introduction to the bakery business plan. It helps potential investors and partners understand the vision and motivation behind the bakery, making them eager to explore the rest of the plan.

Need Help Writing a Bakery Business Plan?

Call or Text Paul, Doctoral Candidate, MBA.

321-948-9588

Email: [email protected]

Hours of Operation: Monday through Friday, 8 am to 9 pm EST.

Our business plan writer is located in Orlando, FL.

CLICK HERE TO CONTACT US TODAY!!!

Product Description for a Bakery Business

A product description in a bakery business plan is essential to articulate what your bakery will offer customers. This section should be detailed, enticing and showcase your bakery's unique selling propositions. Here are the elements that should be included:

  • Range of Products : Specify the variety of baked goods you plan to sell. This can include bread, pastries, cakes, cookies, and more. Don't forget to mention any specialty items or signature creations.
  • Quality and Ingredients : Describe the quality of the ingredients you will use. If your bakery uses organic, locally sourced, or unique ingredients, mention it.
  • Pricing : Include a general overview of your pricing strategy. You don't need to list every item's price, but giving a price range and explaining your value proposition can help.
  • Dietary Accommodations : If you offer options for different dietary needs, like gluten-free, vegan, or sugar-free options, highlight them.
  • Packaging : Briefly discuss how your products will be packaged. Good packaging can enhance product appeal, ensure product safety, and promote your brand.
  • Seasonal Offerings : If your bakery plans to offer seasonal items like pumpkin bread in the fall or hot cross buns for Easter, mention it.

Competitive Advantages for a Bakery Business

In the Competitive Advantages section of your bakery business plan, highlighting what sets your bakery apart is critical. For instance, the uniqueness of your offerings, such as proprietary recipes or specialty items unavailable at other bakeries, could be your significant edge. Using high-quality ingredients - organic, locally sourced, or specialty - can underscore your competitive advantage. Furthermore, having a skilled team, including experienced bakers or pastry chefs, can distinctly set your bakery apart.

Your bakery's remarkable level of customer service can be a game-changer, marking a considerable competitive advantage. The location also plays a critical role; a bakery in a high-traffic area, a bustling shopping spot, or a neighborhood devoid of other bakeries can gain a substantial edge.

Pricing strategies can also amplify your bakery's competitive advantage, especially if you offer lower prices due to operational efficiency, bulk purchasing, or other factors. Your bakery's brand strength, positive customer reviews, or excellent reputation are significant competitive advantages.

Technological advancements, such as modern baking equipment, can enhance efficiency or product quality, offering a competitive advantage. A strong online presence or a digital ordering system also boosts competitiveness.

Adopting strong sustainability practices, like utilizing renewable energy sources or offering eco-friendly packaging, could cater to eco-conscious customers, providing your bakery with a competitive edge. Finally, catering to different dietary needs with options like gluten-free, vegan, or sugar-free items can be a competitive advantage if these markets are underserved in your locality.

Target Market for a Bakery Business.

Paul Borosky, MBA., Business plan writer

A target market approach could focus on a specific demographic group, such as health-conscious consumers or individuals with dietary restrictions. The bakery might offer a wide range of gluten-free, vegan, or low-sugar options to cater to this niche market.

Additionally, bakeries can target special occasions and events. They might offer custom-made cakes and pastries for weddings, birthdays, holidays, and other celebrations. By positioning themselves as a go-to bakery for memorable occasions, they can attract a loyal customer base and build a strong reputation in the community.

Bakery owners must conduct thorough market research to identify their target market accurately. Understanding the chosen segment's needs, preferences, and buying behaviors will help tailor products and marketing efforts accordingly. By focusing on a specific target market, a bakery can better position itself in a competitive landscape, develop a loyal customer base, and achieve long-term success. A clear and well-defined target market is crucial for guiding the bakery's product offerings, marketing strategies, and overall business direction.

Industry Research for a Bakery Business Plan

In addition to national industry research, it is essential for a bakery business plan to conduct local market research as well. This includes studying the bakery market in the specific area where the business will operate. Local research should cover demographics, consumer preferences, local competitors, and market trends.

Understanding the target market's preferences and buying behavior in the local area is crucial for tailoring the bakery's product offerings to meet the community's specific needs. It also helps identify gaps in the market that the bakery can fill, giving it a competitive advantage. Furthermore, researching the local competition allows the bakery to assess the strengths and weaknesses of existing players in the market. By identifying its unique selling points and areas for improvement, the bakery can position itself strategically to stand out and attract customers.

Combining national and local industry research, a bakery business plan can provide a comprehensive overview of the industry, its growth potential, and how the proposed bakery can succeed in the market. This research is a solid foundation for making informed business decisions and developing effective strategies to succeed in the competitive bakery industry.

Owner and Management Section of a Bakery Business Plan.

How to Write a Business Plan in Ten Steps

A bakery business plan's Owner and Management section should highlight your educational background and professional baking experiences and emphasize your passion and dedication to baking. Showcase your unique journey, including formal culinary education, apprenticeships, or self-taught skills developed through family traditions.

In this section, delve into the specific skills and expertise that make you the ideal candidate to lead the bakery. Discuss any relevant management experience or training that will contribute to running the business effectively. Moreover, don't forget to introduce any key team members who will play significant roles in the bakery's success. Highlight their qualifications and roles within the organization.

By clearly showing your qualifications, experiences, and commitment, you will instill confidence in potential investors or lenders about your ability to run a successful bakery. Remember, the Owner and Management section serves as a personal introduction and should reflect your passion for baking, leadership abilities, and the unique qualities that set your bakery apart from the competition.

Funding Request for a Bakery Business Plan

The funding request section for a bakery business plan should present a clear and detailed breakdown of the financial requirements to establish and operate the bakery successfully. Start by identifying the essential equipment needed, such as ovens, refrigerators, and baking tools, and their respective costs.

Next, outline the startup expenses, covering remodeling costs, employee training, and initial supply purchases. Be thorough in estimating these costs to ensure a realistic representation of the financial needs. Incorporate working capital into your funding request to account for day-to-day operational expenses during the initial phases of the bakery's opening. Additionally, allocate a budget for advertising and marketing initiatives to promote the bakery and attract customers.

Don't overlook research and development costs, especially if you plan to introduce unique or innovative bakery products. Once all the financial data is compiled, summarize the funding request in a concise one-page document. Clearly state the required amount, specify whether you seek debt or equity financing, and provide a brief rationale for the funding request.

A well-structured and transparent funding request section will instill confidence in potential investors or lenders and demonstrate your commitment to financial prudence and success.

Pro Forma Financials for a Bakery Business Plan.

Beginner's Guide to Financial Statements by Paul Borosky, MBA.

The financial section of a bakery business plan requires a comprehensive assessment of the bakery's financial outlook. Begin by calculating daily sales, outlining popular bakery items, their respective sales prices, and estimated variable costs. This will provide an overview of potential daily profits and costs for the bakery's core menu items.

Expand the financial projections to monthly expenses, including labor costs, rent, and loan interest payments. Analyze the financial data to determine the bakery's monthly profitability and cash flow. Incorporate a detailed financial projection segment in the business plan, explaining each aspect thoroughly. This section should present a breakdown of projected revenues, expenses, and profits for each month or quarter, providing a clear picture of the bakery's financial performance over time.

Summarize the critical financial findings in the executive summary section, enabling readers to grasp the bakery's financial outlook. This summary should offer a concise overview of the financial projections, encouraging further exploration in the dedicated financial projection segment for more in-depth information. By presenting a comprehensive and well-structured financial section, bakery owners can demonstrate their venture's viability and financial stability to potential investors, lenders, or partners.

Hopefully, these insightful tips and tricks for writing a business plan were helpful.  If you need help with a business plan or financial projections, email or call us. 

Author: Paul Borosky, Doctoral Candidate, MBA., Author

Owner of: Quality Business Plan  and  Quality Business Consultant.

Date: 9/17/2023

Philosophy Of Yum Blog

How to Create a Home Bakery Business Plan (Template Included!)

by Aurelia Lambrechts | Home Baking Biz Tips

How to Create a Home Bakery Business Plan (Template Included!)

How to Create a Home Bakery Business Plan

I’m beyond excited that you’ve decided to take action to read this post because your life could be starting on a NEW path from here on out…

Deciding to create your Home Bakery Business Plan means that you are actively responding to your dream. Today your dream has officially started to become a reality.

Acknowledging that you are a baker at heart is extremely difficult in our corporate world. It’s frowned upon to pursue a career that’s RICH in CREATIVITY and IMAGINATION.

So I just want to give you a room full of applause for being brave enough to start accepting who you were made to be.

We are Home Bakers and the world needs us.

The world needs the comfort, joy and hope that pure home baking brings.

Want to sell your home baked goods, but have no idea where to START?? This Home Bakery Business Plan is the perfect tool to help you take your first steps! Click through to get this free template now >> #homebaking #homebakery #bakingbusiness #athomebakery #homebusiness

And that’s why I’ve made this post and  FREE Workbook to help you create your own Home Bakery Business Plan !

I want to give you the jump start you need to start your Home Bakery.

Creating your business plan will give you a lot of insight into yourself, your ideal clients, what you want to bake and why you want to do it.

Most importantly it will help you figure out where you want to go …

Because “If you don’t know where you’re going, any road will take you there.”

By outlining where you want your business to go, you have a much greater chance at success because you will always be aware of where you are heading.

Your free Home Bakery Business Plan workbook is waiting for you in my free Resource Library. Follow this blue link to access the library and then download & print out your workbook 👉 Access your free workbook here!

Awesome! Let’s get stared!

YOUR HOME BAKERY BUSINESS PLAN

Step #1: your executive summary.

It might sound super intimidating to create an “executive summary”, but don’t worry 🙂 An executive summary is super easy to create through answering a few questions. It’s basically just about WHAT you do and WHY you do it…

IF YOU HAVEN’T STARTED YOUR HOME BAKERY YET:

You might not be able to a nswer all of the questions below yet, BUT you can share your research and all the steps you’re taking to ensure your business’s success.

1. YOUR MISSION STATEMENT

What is the purpose of your Home Bakery? What value do you add to your city/town? Why did you start your Home Bakery Business?

2. HIGHLIGHTS OF YOUR GROWTH

3. your products & services.

Write down a short summary of the products & services your Home Bakery will offer in order to make your business profitable.

4. YOUR GOALS FOR YOUR HOME BAKERY

Time to dream, my friend! What are your goals for your Home Bakery?

What do you want your business to look like 1 year from now, 2 years from now and 5 years from now?

STEP #2: Your Home Bakery Business Description

Now we are going to dive into your business culture & brand which is something that EVERY business is either working on or has figured out.

1. WHAT SETS YOUR HOME BAKERY APART?

Why should someone buy from YOUR Home Bakery above others? What makes your business different?

2. THE PEOPLE YOU SERVE

Every business needs clients in order to survive and thrive! So it’s super important to define WHO your business’s ideal clients are:

How old are they? What do they do for a living? What do they care about most? Why have they come to your baking business? How can you help them? What are their goals & aspirations? What are their hobbies? Which things make them happy?

3. YOUR HOME BAKERY’S CULTURE & BRAND

Another way to think of “culture & brand” is simply to see it as your business’s personality & looks; it’s the first impression that clients get from your Home Bakery Business…

When people interact with your Home Bakery, what do you want them to feel? How would you describe your Home Bakery’s Personality? What purpose does your Home Bakery serve?

4. YOUR HOME BAKERY’S ORGANIZATIONAL STRUCTURE

Organizational Structure simply refers to the legal definition of your business. If you are the only person working in your Home Bakery – which is pretty much always the case – then you are automatically defined as a “ sole proprietor “.

Even if there’s one other person in your business who cleans for you or helps you out with deliveries or admin, etc. you are still a sole proprietor.

You’ll include this organizational structure definition when submitting your tax information each year.

Related: Home Bakery Certificates, Licenses and Insurance

If you decide to expand your Home Bakery in the future, you can do the necessary research to figure out whether you should register your business as a Partnership, CC, LLC, etc.

The motivation for changing your business to one of these other organizational structures is for financial reasons. If your business should go bankrupt while you are a sole proprietor, then YOU are by definition bankrupt as well.

But if you have an LLC, CC, etc. then only your business will be bankrupt and not YOU as a person.

This may sound like super scary stuff, but you don’t need to worry AT ALL, okay? Home Bakeries typically do not shuffle around tens of thousands of dollars each day so our risk is SIGNIFICANTLY lower.

We also typically do not buy like 5 company cars and employ 20 people and stuff like that.

Our Home Bakeries are small and safe 🙂

You want to start a Home Baking Business! :D But, what now? HOW do you actually start? This free Home Bakery Business Plan Template is the perfect step towards making your home baking dreams a reality. Get direction and clarity with these step-by-step instructions! #homebakery #homebaking #baking #bakingbusiness

STEP #3: Competitor Analysis

Before launching your Home Bakery business, I encourage you to THOROUGHLY research your largest competitors (popular bakeries with staff) and other Home Bakeries in your city, town and suburb.

Doing this is important because it will enable you to make more informed decisions and chart your own, unique course moving forward that serves a REAL need in your community and beyond.

Be mindful when you’re researching & analyzing your competitors though…

It’s SO EASY to be swooped up in a wave of comparison when you look at other Bakeries; their high skill level, beautiful website & branding, EPIC social media…

Guard your heart and analyze with your HEAD. Be HAPPY for them because they’ve worked super hard to get to where they are.

They may be your competitors, but they are NOT your enemies.

ALWAYS BE HAPPY FOR OTHER BAKERIES. BAKERS SUPPORT EACH OTHER AND THEIR SUCCESS. PERIOD.

See these businesses as inspiration for where YOU could be in a few months! It’s 100% possible!! By completing this home bakery business plan you’re taking a GIANT LEAP towards your own success!

Related: 5 Mindsets Shifts of Successful Home Bakery Owners

Also, I know all too well how tempting it is to just copy their cakes, their designs, their website design etc., but doing this will ONLY DAMAGE YOUR BUSINESS!!

They became successful by doing THEIR own thing and so will you if you do YOUR own thing.

Now, when doing your competitor analysis, you’ll want to take the following steps:

1. IDENTIFY YOUR COMPETITORS

Now you’re going to list of all of your competitors. Which other Bakeries bake goods that are similar to yours (or similar to what you want to bake in the future)?

Write down the Bakery’s name with links to their website & social media:

The Free Home Bakery Business Plan Workbook has very handy spaces for you to easily fill in 👉 Access your free workbook here!

If you’re brand new to the Home Bakery scene, then you may not know who your competitors are.

Here are a few ways to find them:

  • Search on Google: This is the easiest way to find your competitors. Search phrases like “delicious cake [your town/city]”. You can even get more specific by searching for “home bakery [your suburb]” which will give you results for Home Bakeries closest to you. I encourage you to click through to look at all result pages from 1 – 4 to get a more thorough scope (and because Home Bakeries mostly not listed first).
  • Search on Social Media: Social media – especially Instagram – is THE place to be for businesses today. Bakeries that are worthy competitors will have social media accounts. Search hashtags in Instagram like #[your city]cakes or #[your city]food. Or simply search for “Home Bakery [your city]”.

2. STRATEGIES & GOALS OF YOUR COMPETITORS

Cool, now that we know who your main competitors are we need to find out what their angle is for reaching their ideal clients – because you can learn from them and also readjust your own strategy accordingly.

What are they promoting? (Their products, services, lifestyles, feelings…)

What strategies do your competitors have in common ? (Like Instagram lives, Facebook lives, certain types of promotions or giveaways…)

Which things  set each competitor apart from the others on your list? (What do they do differently than all the rest?)

What goals do your competitors have? (I know you’re not a mind reader, but what assumptions can you make from analyzing their business? Sometimes Bakeries will even share their goals on their about pages on their websites…)

3. PRICE RANGE OF YOUR COMPETITORS

Check out the prices of all of your competitors for each different type of bake they sell. This will give you a better idea of what your future clients will be comfortable paying for baked goods.

4. STRENGTHS & WEAKNESSES OF YOUR COMPETITORS

Now that you’ve analysed each of your competitor’s websites, social media, products & services, you should have a pretty good idea of:

who they are, what they are doing, why they are doing it, who they are doing it for and where they are going with their business…

Let’s dig a little deeper. Use the next section on the home bakery business plan workbook to make a list of some of their strengths and weaknesses.

What are they super good at and what can they improve on or change completely ?

Want to sell your home baked goods, but have no idea where to START?? This Home Bakery Business Plan is the perfect tool to help you take your first steps! Click through to get this free template now >> #homebaking #homebakery #bakingbusiness #athomebakery #homebusiness

STEP #4: Audience & Market Research

Back in STEP #2 of your home bakery business plan we identified and described your Home Bakery’s ideal client. Go ahead and look back to refresh your memory because now we’re going to dig deeper…

1. SURVEY YOUR AUDIENCE

Surveys are hands-down the best way to gather priceless insights into the minds and needs of the people you want to serve – especially because surveys are anonymous.

People tend to share their TRUE desires and thoughts a lot easier when they have the security of anonymity.

Create your own FREE survey on SurveyMonkey or Typeform and then share it with your audience. I recommend sharing it with your email contacts, your social media, local family & friends.

You don’t want your survey to be too long – because then people will be too lazy to answer the questions! Trust me… Keep it to 3 questions 😉

What are the best 3 questions you can ask your audience to understand their needs & desires better?

2. HOW CAN YOU HELP/SERVE YOUR AUDIENCE?

In Step #2 we covered your brand’s personality and in Step 3 we defined the brand personality of your Competitors. With this information in mind, here are a few questions for you…

How can YOU, as a unique human being & baker, help your audience?

What makes your Home Bakery different from all other Bakeries (big & small)?

In what ways can your Home Bakery’s unique qualities benefit your ideal client that’s different from all the other Bakeries in your town/city & suburb?

STEP #5: Your Home Bakery’s Products & Services

And now it’s time for the BEST part – your baked goods & services! Yay! 😄

These are the 2 things that will bring profit to your Home Bakery , so it’s super important to put thought, heart and proper planning into this…

1. YOUR MENU – THE BAKED GOODS YOU WILL OFFER

Which products do your ideal clients need? Refer back to the answers from your survey to get good ideas.

HOWEVER, I do believe that people are aware of what they want, but they aren’t necessarily always aware of what they NEED. So trust your own talents and passion on this as well…

2. THE BAKED GOODS YOU WILL NOT OFFER

Defining what you DON’T bake is just as important as defining what you DO bake. Which products will NOT be on your menu and why?

I’ve also got an amazing free guide for you in my Home Bakery Resource Library to help you find the perfect niche for your business. Join the library to get the free guide on finding your niche.

3. YOUR SERVICES – WHAT YOU WILL OFFER

Which services do your ideal clients need? Refer back to the answers from your survey to get good ideas.

Will you offer delivery? Are you considering to offer customization? Will you offer on-site catering or set-ups? Will you offer rental services for cake stands etc.? Get specific here.

4. THE SERVICES YOU WILL NOT OFFER

Defining which services you DON’T offer is just as important as defining which services you DO offer. Which services will you not offer and why?

5. HOW ARE YOUR PRODUCTS & SERVICES DIFFERENT?

Refer back to your competitor research: How are your products & services different from theirs? Is there anything you could add that would make your menu & services feel even more valuable than theirs?

This sure is a LOT of information to keep track of! You can easily have it all on hand by downloading your free Home Bakery Business Plan Workbook 👉 Access your free workbook here!

STEP #6: Your Home Bakery’s Sales & Marketing Strategy

  Wow! Look how far you’ve come already – I’m so proud of you for putting in all this hard work to create your Home Bakery’s Business Plan…

It’s the first and biggest step you can take to start turning your Home Bakery dreams into a reality! 😄

The last step in your home bakery business plan is working out your sales & marketing strategy. Without a strategy there’s nothing you can do besides “waiting and hoping” your business will grow. A strategy makes it all REAL! Let’s dive in!

1. HOW WILL YOU MARKET YOUR BUSINESS & BAKES?

Take some time to consider which platforms and methods you want to use to market your business and baked goods…

Do you want to use a Facebook group, page or ads? Are there some local Food Markets you’d like to trade at? Do you have some contacts and connections who love your baked goods you can ask to “spread the word” via email or with a flyer?

RELATED: The 4 Essentials of Home Bakery Marketing

Once you’ve decided on some methods, research them online for better results.

2. YOUR MARKETING SCHEDULE

It’s important to set a day and time aside for yourself to spend on Marketing – otherwise life will find a way of soaking up all of your time! When will it be?

Related: How to Plan your Home Bakery’s Work Schedule

3. LAUNCHING YOUR HOME BAKERY (IF YOU’RE NEW)

If you haven’t started your Home Bakery yet, it will help to create a “launch” strategy for your business. How will your business officially come into existence?

What are some things you can do to launch your Home Bakery with a bang and get people excited about what you bake?

4. HOW WILL YOU GROW YOUR HOME BAKERY?

You’ve made it to the last question! Congrats! This last section is about coming up with strategies to grow your business.

This doesn’t necessarily mean employing staff and moving to a larger facility (or opening a retail bakery) – unless that’s what you desire.  This last section pertains more to how you will grow your profits and client base.

Will you outsource certain tasks like cleaning, branding, photography, deliveries, social media management, website building, etc.?

Will you expand your menu & services?

How will you look after your clients to keep them coming back?

Think about things that you can do to keep your Home Bakery Business growing and thriving.

And that concludes your Home Bakery Business Plan my friend! I’m so proud of you for taking action and taking this first step towards starting your baking business 😄

Now you might be wondering, what happens next?

The perfect next step for you is to check out my Ultimate Guide to Starting a Part-Time or Full-Time Home Bakery.

What info are you looking for?

description of bakery business plan

Hi! I’m Aurelia 🙂

I help home bakers create a Home Bakery Business with consistent orders so they never have to worry about a stable income.

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Want to start a Home Bakery Business? Or maybe you have a business but you want more customers and consistent orders? Here's a free library full of resources, tips, tools, secret recipes and ideas to grow your Home Baking Business. Click through to access the free library! #homebakery #homebaking #bakingbusiness #cakebusiness

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How much income is your home bakery missing out on every month because you keep undercharging for your baking? It shouldn't be this way! You deserve to be paid well for your hard work! In this post you'll learn how to stop feeling guilty for charging customers full price. Then you'll get step-by-step tips for raising your prices so you can start earning more income from your home baking :) #homebakery #homebakerypricing #cakebusiness #homebakingbusiness

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  1. Bakery Business Plan Template & Sample (2024)

    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 ...

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    A bakery business plan is a detailed document that outlines the intended activities, goals, and strategies for a new or existing bakery. It serves as a roadmap for successfully establishing and running a bakery business. ... Business Description: Define your bakery's name (consider referring to a list of creative bakery names), your offerings

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    1. Executive summary. The executive summary section of your bakery business plan summarizes the document and its contents. Remember, this is meant to highlight what's to come in your business plan, not serve as a summary of your business idea. Focus on your business's core strength to draw in your reader.

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    The bakery business plan sample below will give you an idea of what one should look like. ... 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 ...

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    How To Open a Bakery In 9 Steps: Complete Guide. 1. Executive Summary. The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors. If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

  6. How to Write a Bakery Business Plan

    Here's a step-by-step guide to help you craft one. 1. Executive Summary. The executive summary is a snapshot of your bakery business, giving readers an overview of what to expect in the following sections. Typically concise, it serves as an introduction and should captivate potential investors or partners.

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    This section of your bakery business plan provides a comprehensive look at the company's history. Include details on your bakery's legal structure, founding, location, and current business stage, as well as your past accomplishments and unique qualifications. Clearly explain anything that makes you a strong competitor in this market, such ...

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    Sales forecasting. Develop a sales forecast based on your market research, pricing strategy, and capacity. Consider seasonal fluctuations, holidays, and events that may impact your bakery's performance. Continuously review and adjust your forecast based on actual results. 6.

  9. How to Write a Bakery Business Plan

    Bakery Business Plan Sample Breakdown. Below we give you an in-depth look at each section in your bakery business plan. 1. Write an Executive Summary. Although it's the last thing you'll write for your bakery business plan, an executive summary is the first thing you hand to bankers or potential investors. That's because this is an over ...

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    It should summarize the main points, which will be presented in full in the rest of your business plan. Start with a one-line description of your bakery/. Provide a short summary of the key points in each section of your business plan, which includes information about your company's management team, industry analysis, competitive analysis ...

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    6. Bakery store design and layout. An effective bakery business plan must include a blueprint of your bakery shop's layout and design to demonstrate the bakery's concept practically to the readers. Mention your bakery size and the space allocated for the back of the house and front of the house operations.

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    Step 1: Write a Company Overview. The first section you'll write for your business plan is the company overview. A company overview is just what it sounds like, an overview of your company. When writing this section, it can help to take a step back and think about your company from a bird's eye view.

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    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.

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    How to Write Bakery Business Plan (Description, Examples, Proposals) Business plans tend to be formulaic, as they're meant to convey a fairly specific set of information to whoever's reading it — often potential investors.

  15. How To Write A Bakery Business Plan

    Writing a business plan for your bakery might seem more complicated than baking the perfect croissant. But we'll let you in on a secret: it's easier than you might think. And we're making it even simpler with a step-by-step breakdown to help you rise to the occasion. 1. Executive summary.

  16. Bakery Business Plan: How to Write a Bakery Business Plan

    Your bakery business plan will serve as a manual for your bakery business, make sure it is clear and easy to understand. ... Company Overview and Description; This section should provide an in-depth description of your company including history, ownership structure, and management team. It should outline your vision and mission statement as ...

  17. Writing a Bakery Business Plan

    What is a bakery business plan? A bakery business plan is a document that describes your bakery's mission, target market, competition, marketing strategies, operations, and financial forecasts. It serves as a blueprint for your bakery's success, helping you stay focused, make informed decisions, avoid mistakes, and secure funding if needed.A well-crafted business plan demonstrates your ...

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    Startup requirements: Startup expenses of $64K including $3K legal, $20K location premises renovation, $40K expensed equipment, and $1K other. These show up as negative retained earnings in the initial balance because they are incurred before launch. Starting cash in the bank of $70K. (in initial balance) Other current assets of $12K (in ...

  19. How to Write a Bakery Business Plan

    The executive summary should begin with a captivating introduction that conveys the essence of the bakery's concept and unique selling proposition. Describe the bakery's specialty products: artisanal bread, delectable pastries, or custom cakes. Highlight any signature items that set the bakery apart from competitors.

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    Operations plan. This is where you start to get into the details of running your business behind the scenes. You will need to explain how you are getting your supplies, for what positions you need to hire, and other expenses that you have projected. Our Suppliers. Describe from whom you will be ordering supplies and the arrangements that you ...

  21. How to Start a Bakery (with Business Plan)

    How to Start a Baking Business. Whether you're passionate about creating decoratively frosted cakes or artisan sourdough loaves, you must create an action plan for turning your passion for baking into a business.Discover the steps of opening a bakery below. 1. Choose a Bakery Style. While there are many bakery business models, they all fall under one of two umbrella categories: retail and ...

  22. How to Create a Home Bakery Business Plan (Template Included!)

    STEP #4: Audience & Market Research. Back in STEP #2 of your home bakery business plan we identified and described your Home Bakery's ideal client. Go ahead and look back to refresh your memory because now we're going to dig deeper…. 1.