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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.

SharpSheets

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

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  • January 3, 2023
  • Food & Beverage

introduction of bakery shop 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?

introduction of bakery shop 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.

introduction of bakery shop 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.

introduction of bakery shop 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:

introduction of bakery shop 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%.

introduction of bakery shop 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.

introduction of bakery shop 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.

introduction of bakery shop 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.

introduction of bakery shop 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.

introduction of bakery shop 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.

introduction of bakery shop 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.

Privacy Overview

How to Create a Bakery Business Plan: Guide and Template

By Debra Weinryb

man and woman business bakery business owners stand in their bakery.

Are you a talented baker looking to start or grow your business? A bakery business plan is a great place to start. A good business plan will help you outline all the steps necessary to make your bakery successful – like hiring a talented management team, building an effective marketing plan, and securing the technology you need to boost sales, like a bakery POS .

After you’ve decided on the type of bakery you want to open – whether that’s a bakery cafe, food truck, specialty bakery, or another type – it’s time to get into all the fine details. 

Your business plan is a crucial part of starting your new restaurant because it will help you structure your ideas and goals, what types of products you will sell, what your marketing strategy will be, how your business will operate, and so much more. 

To help you get started, we’ve covered the key elements of how to write a bakery business plan in a section-by-section format. We’ll explain everything from how to describe your bakery offerings and menu items, to tips on how to make financial projections to attract potential investors. Follow along by downloading our bakery business plan template and customize it to fit your needs. 

In this article, we will cover:

  • Why you need a bakery business plan
  • How to write a bakery business plan
  • 7 bakery business plan sample sections

Bakery Business Plan Template

Bring your bakery concept to life with this customizable bakery business plan template.

Why You Need a Bakery Business Plan

There are many benefits to writing a bakery business plan. First, it helps you better evaluate your business ideas and goals through research and documentation. Second, a bakery plan helps you build a structure for identifying next steps to bring your vision to life. You can always refer to your business plan to stay on track to achieve the goals you’ve set out.

Writing a business plan for a bakery will also help you figure out what you need to grow your company. You’ll gain a clear understanding of the equipment, supplies, and capital you will need to make your dreams a reality. By making a strong and well-thought-out plan, you’ll be more likely to secure funding from banks, potential investors, and lenders. 

Look at any bakery business plan sample, and you will see how much information can be conveyed to your reader in an easy-to-understand manner. You might be surprised by all the components you overlooked! Now’s the time to think about improving your bakery.

How to Write a Business Plan for a Bakery

woman looks proud at her bakery surrounded by bread and baked products.

Writing a business plan for a bakery is no easy feat. You have to think about all the various aspects of your business – like how often you need to order ingredients, how you will market your business to reach new customers, and the amount of staff you will need to hire. Essentially, you’re putting together a manual for your bakery’s success, and it needs to convince investors and new business partners to support your business.

To help you get started, we put together a free bakery business plan template . Acting as a roadmap, our template provides step-by-step instructions for how to think through all of the key elements of a bakery business – including a market analysis, operations plan, marketing and PR plan, financial analysis and projections, and more. You can use the tips in each section to learn how to write a bakery business plan. 

Bakery Business Plan Sample Sections

To help you fill in your own business plan, here we’ll cover what you need to include in each section.

1. Executive Summary

Your executive summary is the most important part of your business plan, even though it’s usually written last. The goal of this section is to give an overview of what will be discussed in your business plan and to entice readers (or investors) to learn more.

You will describe your bakery’s mission statement, proposed concept, your target market, and explain how the uniqueness of your bakery will ensure your success. For example, you can explain any special traits of your team that will help your bakery grow, like exceptional customer service or attention to detail when preparing pastries for guests.

Additionally, you will offer financial highlights of how you plan to use funding from potential investors. Perhaps you will spend money on the design of your bakery, purchasing initial inventory, or covering overhead expenses. You can also include a chart to show how potential funding will help increase your bakery’s revenue over time.

While this section is important, remember to keep it to the point. Aim for around 600 words to entice the reader to keep reading the rest of your business plan. You can also check out a bakery business plan sample for inspiration.

2. Company Overview

woman icing cupcakes with pink frosting in a bakery.

Your company overview section presents a summary of your bakery’s history and why you opened it in the first place. For example, you can write about how your bakery is different from your competitors – such as your team’s impressive credentials, or how you’re the only business in your area selling gluten-free and vegan baked goods.

You should also include important details like your bakery’s legal structure, founding team members, location, and milestones to date. Milestones are goals that you met, like opening your first bakery location, launching a website, or hiring your first head baker.

Lastly, mention the type of bakery you plan to run. Your service type will be important as you write your bakery plan, helping define the space and equipment you need, and how you’ll interact with guests. For example, if you run a bakery cafe, you’ll need a sit-down area, as well as a front-of-house and back-of-house area. If you operate a food truck bakery, you’ll need to buy or rent a truck so your bakery will be able to move around. 

3. Market Analysis

This section focuses on the customers that you plan to serve. For example, do you plan to bake cakes and pastries for weddings? What about school events, birthday parties, or private events? Maybe you’re a neighborhood bakery that relies on foot traffic from your regular customers?

If you rely on grocery stores, farmer’s markets, or restaurants to sell your baked goods, you can mention that too. Supplying products like breads, biscottis, brownies, bagels, or other baked pastries to restaurants will also help you grow your customer base faster.

After you’ve defined your target market, you can go into more detail by describing your customer personas:

  • Is your target market working professionals or students? 
  • Are they thrifty or willing to spend on a specialty drink? 
  • Does the quality of ingredients matter to them? 
  • What about the customer service they receive? 

Once you’ve outlined your target market’s unique requirements, make sure you write how you will meet each of their needs. 

4. Business Offerings and Menu

The Business Offerings and Menu section focuses on what type of baked goods you will offer customers. Whether you offer fresh bread, cookies, or cakes, discuss every detail about what you plan to sell. Make sure to provide an explanation for why you sell these products, and how your delicious goods will drive foot traffic to your bakery. 

Remember to always write in layman’s terms so even if someone is unfamiliar with your bakery, they can still get excited about your products. To do so, avoid industry jargon, buzzwords, or technical knowledge that might not be common knowledge to investors.

Here are a few questions you can answer when writing out your business offerings:

  • Will you be reinventing recipes, or creating brand new products?
  • Will you include specialty items like nut-free or custom-made products?
  • Where will you source and buy your ingredients and equipment from?
  • How do your baked goods compare to others currently on the market?

5. Operations Plan

This section is where you expand on your business goals, including what the management team will look like and what technology you’ll need. 

For your team, you should provide details like whether you will be hiring full-time or part-time staff, what their roles will be, and at what hours your bakery will be open. For technology, you can list restaurant equipment that will help you get your job done well every day. For example, you might need mixers for blending batter, a stone deck oven for making bread, and a refrigerator for storing eggs, milk, and other important items.

You can also list operational milestones that you want to achieve over the coming months to ensure your bakery operates successfully. For example, you can mention when you want to finalize your lease agreement, begin construction for a bakery redesign, or mark the date of your bakery’s grand opening.

6. Marketing and PR Plan

A person photographs a german lattice fruit pie.

You’ll need a solid marketing and PR strategy to enter your target market and attract new customers. In this section, you will explain the steps you plan to take to reach potential guests. 

Aside from coming up with a catchy bakery name, there are many ways you can draw in an audience. 

Social Media

Social media platforms can be used to develop unique and fun posts about daily bakery specials, or tease the latest products that are “coming soon.”

Asking customers to leave a review and spread the word is an effective way to market your bakery. If your baked goods speak for themselves, you will likely benefit from this marketing strategy.

SEO Marketing

Making sure you’re found on Google is imperative for a bakery. You’ll definitely want people to find your storefront, and not your competitors. By working on a search engine optimization (SEO) strategy, you can be found when people type into Google terms like “local bakery” or “bakery near me.” Keeping your website up-to-date, accessible, and user friendly can also increase engagement.

7. Financial Analysis and Projections

For the last section of your bakery business plan, you will focus on the financial projections for your business. You’ll outline the potential costs for ingredients, equipment, technology, bills, and salaries that will keep your bakery running. For example, costs might include pastry products, like flour, sugar, butter, and cream. They may also include baking materials like cake pans, stand mixers, rolling pins, and measuring cups.

You’ll also include several documents in your financial analysis, such as an income statement, balance sheet, and a cash flow statement. After listing all of the costs of your bakery design, inventory, and other working expenses, you will then project the time it will take to achieve a profit. Remember to keep your numbers realistic, so you can let investors know how you could actually use their support to grow your business. 

A bakery business plan is the best way to start or grow your business – it helps finetune your business concept and identify your target market. If you look at any bakery business plan sample, you will see many important sections that help guide a bakery to achieve success.

Once you have finished writing your bakery plan, you can refer back to it on a regular basis to make sure you are keeping up with the goals you set. Remember, that you’ll need to update your document if your market should change. For example, if customers start demanding more gluten-free products, you can update your plan on how your bakery will meet this requirement. 

While writing a bakery business plan can feel tedious at times, remember to think of it as a fun and creative project. There are so many ways to open or expand your bakery business! If you need inspiration, use our bakery business plan template that can be customized to meet your specific business needs.

Debra Weinryb author photo

Debra was a Content Marketing Specialist at TouchBistro, writing about the latest food and restaurant industry trends. In her spare time, Debra enjoys baking and eating together with family and friends.

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Sample Bakery Business Plan For Inspiration

sample business plan for bakery

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

Download our Ultimate Bakery Business Plan Template

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

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

Example – Home Sweet Home Baked Goods

Table of contents, executive summary.

  • Company Overview

Industry Analysis

Customer analysis.

  • Competitive Analysis

Marketing Plan

Operations plan, management team, financial plan.

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

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

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

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

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

Company Description

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

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

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

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

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

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

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

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

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

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

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

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

Competitor Analysis

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

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

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

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

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

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

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

To drive foot traffic to our storefront location in Bend:

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

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

Daily Operations:

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

Milestones to Achieve:

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

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

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

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

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

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

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

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

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

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

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

Sample Menu

1. Fresh Bread:

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

2. Cookies:

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

4. Pies and Tarts:

  • Apple Pie with Crumb Topping
  • Lemon Meringue Tart

5. Specialty Desserts:

6. Coffee Drinks & Teas:

  • Cold Brew Coffee

7. Smoothies & Shakes:

  • Strawberry Banana Smoothie
  • Mango Pineapple Shake

Financial Statements

Balance sheet.

[insert financial statement]

Income Statement

Cash flow statement, bakery business plan example pdf.

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

How to Finish Your Bakery Business Plan in 1 Day!

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

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

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introduction of bakery shop business plan

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></center></p><h2>How to Write a Bakery Business Plan</h2><ul><li>By Tam Nguyen</li></ul><p><center><img style=

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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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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Entrepreneurs Gateway

Opening a Bakery?

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

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

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

Bottom line…

If you want to get baking with this business plan…

#1 Bakery Business Plan Sample – Executive Summary Section

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

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

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

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

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

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

Executive Summary

introduction of bakery shop business plan

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

What We Sell

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

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

Who We Sell To

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

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

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

#2 Bakery Business Plan Company Profile Section

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

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

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

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

  • The Company and Management Team
  • Location and Facilities

Mission Statement

introduction of bakery shop business plan

Company Overview

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

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

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

Management Team

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

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

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

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

Locations and Facilities

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

Tagline: Mouthwatering masterpieces enrapturing palates and capturing the imagination.

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

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

Company History

introduction of bakery shop business plan

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

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

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

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

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

#3 Bakery Business Plan Products & Services Section

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

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

Ask yourself:

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

Here’s the example.

Products and Services

introduction of bakery shop business plan

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

Bakery and Sugar Confectionery

Celebration Cakes

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

Pick ‘n’ Mix Wedding Brownie Bars

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

The Bakery Company Workshops

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

Competitors

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

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

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

Product & Service Development

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

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

Sourcing and Fulfillment

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

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

Intellectual Property

The Bakery Company is in the process of being trademarked.

#4 Bakery Business Plan Situation & Market Analysis Section

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

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

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

It can include:

Market Overview

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

  • SWOT analysis

Here’s our example.

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

Target Market

introduction of bakery shop business plan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Parents and Children

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

Wedding Couples

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

Corporate Event Planners

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

Party Planners

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

SWOT Analysis

introduction of bakery shop business plan

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

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

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

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

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

Opportunities

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

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

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

#5 Bakery Business Plan Marketing Strategy & Implementation Section

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

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

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

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

So, without further ado…

Let’s look at the following example.

Strategy and Implementation

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

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

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

Pricing structure is as follows:

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

Brownie & Cake Bars

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

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

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

Cake Cocktail Bar: $225.00 for 100 guests

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

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

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

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

Cake sculpture toppings start from $25.00.

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

Wedding Cakes

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

Cake Sculptures

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

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

Children’s Cake decorating/sugar sculpting classes

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

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

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

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

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

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

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

Distribution

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

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

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

Competitive Edge

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

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

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

Promotional Activity

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

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

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

Sales Administration

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

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

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

Strategic Alliances

Not applicable.

Exit Strategy

#6 bakery business financial section.

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

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

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

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

So… Are you ready to look at some figures?

Three Year Projection

introduction of bakery shop business plan

Three Year Projection​

introduction of bakery shop business plan

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

  • Ecommerce Business Plan sample
  • Bar & Restaurant Business Plan sample
  • Medical Center Business Plan sample
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Additional Resources:

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

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

Now, over to you...

Now I’d love to hear from you:

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

We’d love to know what you thought about our Bakery business plan example.

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

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introduction of bakery shop business plan

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Bakery Business Plan

Start your own bakery business plan

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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introduction of bakery shop business plan

  • Starting a business

How to start your own bakery shop business

Steven Johnson

If delicious baked goods are your passion and you’ve decided to go all-in and start a bakery of your own, let us be the first to congratulate you. You’ve overcome the first step in starting a business of any kind, which is to make the promise to yourself that you’re going to go through with it.

Outside of taking the emotional leap to start your own bakery, there are a number of real-world items you’ll need to check off your list. We’ll touch on each of those things here so that you can know you’re heading in the right direction, toward your baking dream.

How to start a bakery shop business

Have a business plan.

A bakery, just like any business, needs a business plan to get started. A bakery business plan may not be as complex as others, but it will need to have the same basic components as any business.

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First, the business plan will outline the bakery’s mission and vision statement. Do you want your bakery to sell every kind of baked good or do you want to specialize? Will you be open all day or just in the mornings? Will you have other menu items like coffee and tea or will you only sell baked goods? Will it be dine-in or carry-out only? These are all questions that your initial mission and vision statements must answer.

Once you’ve expressed your vision for the bakery in the business plan, then you have to do the hard work of financial forecasting. By performing a competitive analysis, studying area demographics, counting foot traffic, and understanding target consumer income estimates, you can set up a sales forecast spreadsheet for the first few years of business. With the sales forecast, you can more accurately project cash flows and determine an operating budget.

Your operating budget will take into account your expenses in an expense spreadsheet. Your expenses would include both fixed (overhead) and variable costs. Things like the rent on your bakery’s space and utilities would be fixed costs, while employee payroll and food costs would be variable. You’ll also need to determine the point at where your business would break even between your expenses and projected income. This is called a breakeven analysis.

Although all of this financial legwork is definitely not the reason you wanted to become a baker, it’s necessary to secure capital to cover the start-up expenses for your bakery. Building out a space, buying equipment, and obtaining permits and licenses are all costly components to opening a bakery. Lending institutions and investors need to know their investment is secure by seeing that all financial projections are backed data before they give you a loan.

Draw up blueprints

After you’ve got the hard work of the business plan out of the way, then you can start on the more fun aspects, like designing your bakery’s layout. Get with a contractor you trust to help you draw up blueprints of how you’d like the inside of your bakery to be. Consider the flow of traffic for not only customers but for you and your employees as well. You’ll want to arrange equipment in a way that minimizes the steps taken and maximizes convenience. Remember that for a lot of bakery kitchen equipment, due to heat or plumbing sources, once it’s hardwired in, it can be very costly to move down the road. That’s why having the best-laid plan, in the beginning, is always best.

Source equipment

As is the case with almost every foodservice business, the equipment can be the most costly aspect of your business. When starting, it’s crucial to remember that you don’t have to have the latest and greatest ovens or other equipment. When on a tight budget, you can almost always find used equipment through dealers, wholesalers, or auctions. Then once your bakery starts bringing in the profits you projected, you can always upgrade to those fancy new ovens you always wanted.

Hire and train staff

Although you’re a great baker, you can’t do everything yourself. Everyone knows that finding good help in the food service industry can be challenging. It usually comes down to a tradeoff between paying good workers higher wages, or cycling through employees who you will have to constantly train—which will cost you more time and energy. It’s important to consider this when calculating your operating budgets in your business plan.

Consider marketing and advertising

For most small businesses that are just starting out, a marketing and advertising budget is a luxury. Many businesses have to focus all their fund on the large start-up costs, then if there’s anything left over, it goes towards marketing . Depending on your bakery’s location and surrounding competition, you might not even need advertising. However, if your cash-flow projections from your business plan aren’t meeting the mark, it could be that people don’t know you’re around. In that case, it could be beneficial to invest in advertising. However, before paying for ads, consider social media. With the right tactics, businesses can make themselves know at little to no cost.

Have a grand opening

If there is one thing you spend money on when you first open your doors, it’s advertising. In whatever way you can, announce when your bakery is opening to the surrounding area and give people a reason to come. Have promotions, contests, games, or whatever you think will get people in the door. Once they’re at your establishment enjoying your delicious baked goods, chances are, a good portion of them will return and hopefully tell their friends.

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  • Restaurants

Steven Johnson

  • Business Guides

You went to cosmetology school, and you wonder what you should do now? You should create your own salon business. You want to provide customers the chance to have a haircut, wax their eyebrows, and give them the chance to feel beautiful. You understand that it takes time and effort for people to take care of their hair and shape their eyebrows. You need the tools to start your salon and provide beauty assistants to your customers whether it is waxing, clipping nails, or cutting their hair. You have the experience to give your customers the chance that they want to feel a completely different person.

You believe in self-care. You want to provide the self-care that your customers need. You understand by living in a modern world it is hard to dedicate time to take of yourself physically due to personal situations and work hours. That is why you created a business that provides the self-care needs for your customers. You want to give them a positive change to their appearance and give them a boost of confidence. You want to give your customers the chance to love themselves and to love their bodies. Your business will provide customers the chance of having self-love and high self-esteem.

All your life you have enjoyed the taste and the smell of bread. You started to make your bread from home during your spare time. Making bread has started to become a hobby that you enjoy. You enjoyed making bread so much, you decided to make a career from it. You decided to buy a building, and you want to create your recipes for pastry dishes. You want to share your homemade pastry recipes with your hometown and sell your homemade bread that comes in different flavors. You can also have a small section where your customers can buy your homemade bread loaves.

When it comes to starting your business, you need a lot of creative ideas to start your business. You want your place to be perfect, and you want to gain the attention of people passing by your pastry restaurant. You cannot just sell bread, but sell different varieties of pastries such as pies, desserts, sandwiches, and biscuits. When comes to selling your bread, you have to be creative with your recipes and create a menu that your customers get to choose from what recipes they will enjoy. You want to promote your business, and it depends on how your start your business and how you influence your customers.

You enjoy making your cheese, and you want to make a career out of it. You believe that everyone should be able to try your homemade cheese recipes. You want to sell your cheese locally in your beautiful hometown. You want to start with the simple tasks on what you need to start your career on the right path. You wondered what sort of items you need to start your business from scratch. You already purchased the building, but now you need the supplies to get you started. When it comes to your business you want to start with ideas.

In every local food business, owners had to start from scratch. Sometimes there are struggles when it comes to starting your own business. When it comes to the food business, it can be hard on how to start your business or when to start your business. You want your business to flourish, and you need some guidance on starting your business. When it comes to local business it starts with a lot of ideas and ways to figure out how to accomplish those ideas. You want your creative hobby with cheese to start well without any mistakes along the way.

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?

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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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How To Start a Coffee Shop Bakery (12 Easy Steps)

Start a Coffee Shop Bakery (12 Easy Steps)

How to start a coffee shop bakery

How To Start a Coffee Shop Bakery

The Easy Steps to Starting a Coffee Shop Bakery

There are not many things that go together better than delicious coffee and a fresh, warm muffin.

Coffee and bakeries go together like milk and cookies. They complement each other nicely on our palates and also make great business partners too!

A coffee shop bakery is a popular coffee shop business concept that is sure to be a worthwhile business venture in your neighborhood.

In just a minute, we will give you the steps to start a coffee shop bakery. These steps will help you get your planning started in an efficient and cost-saving way.

First, we want to discuss the benefits of starting a coffee shop bakery that we list below. After that, we will provide you with the steps you may want to open a coffee shop bakery.

Benefits to Starting a Coffee Shop Bakery:

  • Cost-effective
  • Better quality control
  • Flexibility in menu choices
  • Attract more customers

opening a coffee business

This means more profits for you!

Over the long term, the savings could be significant. With wholesale bakery orders, you're paying anywhere from 30% to 100% on items (because those other bakeries need to make a profit, too!) In baking the goods yourself, you must pay for labor, ingredients, equipment, and various permitting. However, even with those costs, you will earn more money over time.

Offering your baked goods is exceptionally convenient for you. You no longer have to depend on another wholesale bakery or delivery service to deliver to your coffee shop on time.

It's more convenient for you!

It is a regular occurrence for coffee shops to be waiting on their baked deliveries only to miss out on their morning sales. Nothing beats more convenient and fresher baked goods than items baked in-house.

The ability to control your food's taste and quality will positively impact your entire brand, product offering, and customer service. For example, when you order from another bakery, you may experience inconsistent quality. By having your bakery operation in-house, you will be able to manage your quality in a manner that suits your expectations.

Operating your coffee shop bakery always provides greater flexibility to your customers in offering what they want. For example, you may get other suggestions from customers as to what items they would like. This flexibility allows you to keep your existing customers while attracting new customers every day!

Steps to Open a Coffee Shop Bakery:

The following lists the ten steps to start a coffee shop bakery:

1. Develop your vision and concept

2. Write a coffee shop bakery business plan

3. Scout out great locations that suit your target market

4. Determine what items you will bake

5. Determine your budget costs

6. Know your health department regulations

7. Understand what your buildings department requires

8. Choose the right coffee shop equipment

9. Find Good Contractors for your buildout

10. Hire excellent staff and baristas

11. Come up with a good marketing plan

12. Host your coffee shop bakery grand opening!

Now that we've listed the steps to starting a coffee shop bakery, let's discuss them in greater detail below.

A Coffee Shop Bakery Opens for Service

The Ultimate Guide to Starting a Coffee Shop & Bakery

Open a Coffee Shop Bakery Successfully

1. develop your coffee shop bakery concept and vision.

Will the smell of fresh bread, croissants, and muffins fill the air of your coffee shop bakery? Will you be sending customers home with fresh baguettes or wonderful chocolates?

Whatever your vision and concept are, it will be your road map to starting the successful coffee shop bakery of your dreams.

First, consider writing all the different and complete thoughts you have about your bakery—everything from the names you would consider using to your menu option and location.

Consider what type of experience you want your customers to have. Yes, you want them to buy your coffee and baked marvels, but you also want them to have an experience too.

Settle in on more specific items of your coffee shop and develop an overall concept. In a nutshell, detail what your coffee shop bakery will be all about.

Once you have your vision and concept down, other essential things will start to take shape.

2. Write a Coffee Shop Bakery Business Plan

With your coffee shop bakery concept in hand, the next thing you will want to do is to have a well-written business plan.

Starting a coffee shop bakery is a significant undertaking with many parts, and therefore should require considerable planning.

There are many benefits to writing a coffee shop business plan. The most important benefit is the ability to articulate your vision. The vision and concept answer the “WHAT” type of business you are starting. The business plan answers the “HOW” you will get it done.

Writing a coffee shop business plan can be challenging. But if it's done right, it will help save you tons of time and money. In your coffee shop business plan, you will want to articulate some critical elements of your business.

Detailed sections of your business plan will include your concept, vision, and mission. The name of your business, menu, and location. It will specify your target market and marketing plan. It will also detail your budget, financials , and plan for obtaining funding.

For more information on writing your coffee shop business plan, read our article, How to Write Your Coffee Shop Business Plan .

3. Scout for Locations

No secret having an excellent location will benefit your coffee shop bakery sales. In fact, without a good location, your business will struggle to attract enough customers to make ends meet.

With such massive importance as choosing the right location, we recommend that you start early in scouting out the perfect coffee shop location.

Choosing the right coffee shop location means considering a few essential variables. First, ask yourself whether the geographical location is a good fit for your target market?

You will also want to determine if the location and the specific property are appropriately zoned for your business.  Does it have enough foot traffic? In other words, are there enough hungry mouths in the area to make your bakery work?

Finally comes the physical space itself. While the actual space may be in a perfect geographical area, it might not be ideal for your business. For example, how much time and money will you need to invest in the buildout to make a functioning coffee shop bakery? Is there ample space? Does it have a kitchen, bathroom, and enough floor space or outdoor seating? Also, is the area accessible by car and on foot?

Start your location search early. First, determine the geographic location that makes the most sense for you and your life. You may also want to seek the help of a licensed commercial broker to help find a spot that is available and walk you through the leasing agreement.

4. Determine What Items You Will Bake

Decide on your coffee shop bakery menu. If you are a baker, you probably already know what items you would love to bake and share with your community.  While this may seem easy, it may require a little research and market analysis.

Before opening her store, I recently met a coffee shop owner who visited the neighborhood with different samples of her baked creations.

She spent hours baking and testing and figuring out what items her neighbors loved. Not only did this provide some great information, but it also endeared her and her coffee shop to the locals.

Also, keep in mind that what you love may not be what your neighbors enjoy. Nevertheless, it would be best to develop an appealing and manageable menu for your business. Your coffee shop bakery menu will essentially define your coffee business. Take the time to determine everything you'd like to offer your customers.

5. Determine Your Bakery Budget Costs

Your coffee shop bakery concept, menu, location, and equipment will begin to shape the budget you will put together.

Before spending any money or obtaining funds for your coffee shop bakery, you will want to develop a comprehensive budget that details how each dollar will be spent.

A detailed budget will help you plan and prepare you to address the most critical element of your coffee shop bakery business: money.

Your budget will not only include the money it takes to set up your business, pay for a location, and your equipment, but also have the needed cash flow to pay for inventory, payroll, and other items.  

For more information on developing your coffee shop budget, please read our article, Planning Your Coffee Shop Budget.

Offering baked goods in a coffee shop

6. Know Your Health And Buildings' Department Regulations

Every state and local government has its health agencies to play a role in setting up your coffee shop bakery. The health department's part is to prevent foodborne illnesses for you, your staff, and your customers. That means that they want to ensure that you have everything in place to offer clean food and service.

Your local health department will impact everything from your materials, equipment, and buildout.

You probably already understand that an outbreak of illness could be devastating to the health of your customers and staff. However, you don't want to be held liable for improper handling of food. Staying within your health department's guidelines will make your coffee shop bakery business much safer.

While your health department needs to sign off on your kitchen setup, they will continue to play an ongoing business role. For example, you can expect the health department to drop in for scheduled and unscheduled visits to ensure that you and your staff are practicing good health and safety procedures.

Your building department is another key player in opening your coffee shop bakery business. It would help if you learned early on what requirements and codes are before your buildout.

7. Choose the Right Coffee Shop Equipment

Now that you know what's on the menu, you can look at the equipment you need. Depending on the size and scope of your coffee shop bakery, you will have to get several essential equipment items, such as an oven, refrigerators, prep tables, mixers, storage racks, cooling trays, and baking pans, among others. These are the traditional pieces of equipment that many bakeries have, but you will have to get those essential items to make your recipes.

In addition to your baking equipment, you will need coffee shop equipment to serve your fantastic coffee. These would include choosing the right espresso machine , pour-over devices, coffee grinders, pitchers, and ice-makers.

Your coffee shop equipment should be commercial-grade and food-grade compliant to meet the health codes. Commercial grade equipment is often considerably more expensive than equipment for home use but is made of heartier materials that can withstand heavy usage.

For more information on choosing the right coffee equipment, read our article, Coffee Shop Equipment You Need .

8. Find Good Contractors To Build Out Your Coffee Shop Bakery

We strongly suggest that you put your feelers out there for contractors. These contractors will help you with the actual buildout of your interior space. For example, depending on your lease space, you may need to build a coffee bar, add a wall, install electrical units, and improve ventilation. Unfortunately, honest, knowledgeable, and reliable contractors may be hard to find, so start early.  

9. Hire Amazing Staff and Baristas

You probably want to hire exceptional baristas employees to represent your business with your customers.

As a coffee shop bakery owner, you know how important it is for your employees to be honest and reliable. Your baking operation may begin long before your first customer comes in for a cup of coffee.  It takes a dedicated person to show up at 3 a.m., start baking fresh bread and pastries before you open. Pulling espresso shots and serving your early-morning customers with a smile will make all the difference in your day-to-day operations and profits.

The quality of your staff starts with you. You have to make significant hiring decisions based on reliability, honesty, trainability, and personality. So start your search early for a great team – baristas, bakers, chefs – and cultivate employees who would love to work for you.

10. Come Up with a Good Marketing Plan

Standing out in your community requires you to think ahead to develop a good marketing plan. Promoting your coffee shop can lead to greater sales, greater brand awareness, and better market positioning.

Start with developing your logo and branding. Once you have your logo, you can use it to create fun merchandise products like t-shirts, mugs, and of course, slap it on your cups and coffee bags. You will also want to create a website for your coffee business and maximize your social media engagement.

While everyone likes to flock to social media sites, having your company website is essential because it serves as the mothership of your online presence efforts. Additionally, you don't want anyone else to hijack your company's name and web presence, either! Finally, you will want to reach out to local food and coffee bloggers and introduce your business to expand your community outreach.

For more information, please read How to Promote and Market Your Coffee Shop.

a coffee shop bakery makes bread

Related Coffee Shop Bakery Questions:

Is a coffee shop bakery business profitable.

Yes. A coffee shop bakery can be profitable. But the revenue you bring in will depend on some essential factors. Fortunately, many of these factors are under your control.

An adequately managed coffee shop bakery with healthy sales can be highly profitable. However, like a traditional coffee shop, a coffee shop bakery will need to focus on its sales, average ticket price, and costs.

For more information how the profitability of a coffee shop business, read our in-depth article, How Much Does a Coffee Shop Owner Make?

How much does a small coffee shop bakery cost?

Many factors influence the cost of a coffee shop bakery. These include your location, menu options, and concept. A big part of the initial costs will be from the actual site, buildout, and bakery and coffee equipment.

For a detailed article on the costs of starting a coffee business, read How Much Does it Cost to Start a Coffee Shop?

How much space do I need to start my coffee shop bakery?

Your need for space depends on a few factors when starting a coffee shop bakery. The first is volume. How many muffins, cakes, and croissants do you plan on baking every morning? The second factor in determining your space is figuring out what type of coffee and bakery equipment you need. For example, will you need large prep tables, cooling racks, and multiple ovens and refrigerators?

Finally, what spaces are currently available in the area you would like to set up your business? If your coffee shop bakery is in the perfect location but not as big as you want it to be, you may have to decide to reduce your capacity.

The truth is that you don't need a lot of space, but you do need enough to provide for your equipment, storage, work area, and customers.

An assortment of baked goods, a coffee shop bakery business

Steps to Starting Your Coffee Shop Bakery

As you can imagine, there are essential steps to starting and launching your coffee shop bakery.

But it can be a fun and financially rewarding challenge. We've covered much ground, so I will summarize how to start a coffee shop bakery in the list below:

  • Develop your vision and concept
  • Write a coffee shop bakery business plan
  • Scout out great locations that suit your target market
  • Determine what items you will bake
  • Determine your budget costs
  • Know your health department regulations
  • Understand what your buildings department requires
  • Choose the right coffee shop equipment
  • Find Good Contractors for your buildout
  • Hire amazing staff and baristas
  • Come up with a good marketing plan
  • Host your coffee shop bakery grand opening!

introduction of bakery shop business plan

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How to start a coffee shop

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Based in Seattle, Washington, USA, Coffee Shop Startups is dedicated to providing you with the most relevant information on how to start a coffee shop business successfully. Over the last 11 years, we've helped thousands of aspiring coffee business owners worldwide. We harness the experience, wisdom, and knowledge of many successful coffee shop owners to help you increase your chances of success and profits. We support business owners who want to start a coffee business by providing them with valuable information on starting their coffee business successfully.

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Based in Seattle, Washington, USA, Coffee Shop Startups is dedicated to providing you with the most relevant information on how to start a coffee shop business successfully.

Over the last 10+ years , we’ve helped thousands of aspiring coffee business owners worldwide. We harness the experience, wisdom, and knowledge of many successful coffee shop owners to help you increase your chances of success and profits.

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introduction of bakery shop business plan

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  1. Bakery Business Plan Template Sample Pages

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  3. Bakery Business Plan Template Free

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  4. One Pager Bakery Shop Business Plan Presentation Report Infographic PPT

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  5. Bakery Business Plan Template Sample Pages

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    introduction of bakery shop business plan

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  1. How to Start Bakery shop Business

  2. Bakery Business Plan

  3. THE BAKER,S TABLE SHOPE IN TUTY FOOD STREET|THOOTHUKUDI|KP FAMILY

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  1. Bakery Business Plan Template & Sample (2024)

    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. You can download the bakery business plan template (including a full, customizable financial model) to your computer here.

  2. Bakery Business Plan (How to Write & Template)

    Step 1: Gather Information Before you begin writing your bakery business plan, gather the following crucial information to lay a strong foundation: Define your target market for the bakery. Identify your unique selling proposition (USP) that sets your bakery apart. Determine your pricing strategies for different baked goods.

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

    1. Choose a Bakery Style While there are many bakery business models, they all fall under one of two umbrella categories: retail and wholesale. Retail and wholesale bakeries make similar products, but they have different needs and customer bases. Opening and Operating a Retail Bakery

  4. How to Write a 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-arching summary of your bakery's business plan.

  5. How to Start a Bakery: The Ultimate Guide for Bakers

    Lisa Furgison 17 min. read Updated January 3, 2024 Free Download: Sample Bakery Business Plan Templates Are you the one that makes killer cakes for every birthday? Do you churn out to-die-for donuts? If you're ready to turn your talents into a profitable bakery, you've come to the right place.

  6. How To Write a Bakery Business Plan in 9 Steps

    How To Write a Bakery Business Plan in 9 Steps Learn how to write a bakery business plan, section by section. Get inspiration from examples of other bakeries.

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

    January 3, 2023 Food & Beverage 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.

  8. How to Write a Bakery Business Plan + Sample Plan

    1. Conduct market research Start by pinpointing your target market. Not every bakery appeals to all customers. Ask yourself, who do you see coming through your doors? It could be: Health-conscious individuals looking for gluten-free or low-sugar options. Professionals looking for a quick treat on their way to work.

  9. How to Create a Bakery Business Plan in 7 Steps

    Finance & Operations How to Create a Bakery Business Plan: Guide and Template By Debra Weinryb Are you a talented baker looking to start or grow your business? A bakery business plan is a great place to start.

  10. How to Write a Business Plan for a Bakery

    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.

  11. How to Write a Bakery Business Plan

    Use this free bakery business plan template to easily create a great business plan that organizes your vision and helps you start, grow, or raise funding for your bakery. ... How to Open a Donut Shop: Starting a Donut Shop Business Checklist. Operations. Real Restaurant Kitchen Designs to Inspire Your New Concept. Subscribe. Restaurant news ...

  12. Bakery Business Plan Template & Guide [Updated 2024]

    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.

  13. Sample Bakery Business Plan For Inspiration

    Written by Dave Lavinsky Writing a business plan is a crucial step in starting a bakery. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors.

  14. How to Write 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.

  15. Bakery Business Plan: Complete Guide for Bakers & Patisseries

    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.

  16. Writing 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.

  17. How to write a Bakery Business Plan (Step by Step) Guide

    #1 Bakery Business Plan Sample - Executive Summary Section The Executive Summary section of your business plan outlines what your business does. It summarizes the company's key points and introduces the rest of the business plan content. Remember!

  18. Bakery Business Plan Example

    Executive Summary Opportunity Problem 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. Solution JJB offers a broad range of coffee and espresso products, all from high quality imported coffee beans.

  19. Bakery Business Plan Executive Summary

    A business overview is an introduction that "hooks" the reader - it should provide just enough description of your bakery to get the reader interested in learning more about the business plan. Include an outline of the ownership structure, location, type of restaurant, and customer experience in the business overview.

  20. How to start your own bakery shop business

    Have a grand opening. If there is one thing you spend money on when you first open your doors, it's advertising. In whatever way you can, announce when your bakery is opening to the surrounding area and give people a reason to come. Have promotions, contests, games, or whatever you think will get people in the door.

  21. 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.

  22. How To Start a Coffee Shop Bakery (12 Easy Steps)

    2. Write a Coffee Shop Bakery Business Plan. With your coffee shop bakery concept in hand, the next thing you will want to do is to have a well-written business plan. Starting a coffee shop bakery is a significant undertaking with many parts, and therefore should require considerable planning. There are many benefits to writing a coffee shop ...