a sample business plan for bakery

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 a successful bakery 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 strategy, and details your financial projections.

Sample Bakery Business Plan

The following information will provide a description of what to include in your own 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 bakery’s mission statement, as well as information on your business offerings, your target audience, and your business goals and objectives.
• Company Overview – The Company Overview section provides an in-depth look at your bakery, including information on your company’s history, business 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. Through market research, you will be able to discuss market 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 – The Competitor Analysis will provide an overview of your competition (other bakeries or businesses that offer high-quality baked goods), including their strengths and weaknesses. It will also discuss your competitive advantage or your business’s core strength that will help you stand out amongst your competition.
• Marketing Plan – In the Marketing Plan section, you will detail your marketing strategies, including your community events, and digital marketing campaigns. 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, any business partners, your experience, and your roles in the company.
• Financial Plan – In this section of your bakery financial plan, you will include your financial statements: profit and loss 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 how to write a bakery business plan using this   bakery business plan template .

What Are the Main Types of Bakeries?

A bakery can be retail or wholesale. A retail bakery sells baked goods (i.e., fresh bread, specialty items, gluten-free and vegan baked goods, and other bakery offerings) directly to customers, while a wholesale bakery typically sells products to other local 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. Potential investors or lenders will often want to see a well-crafted business plan before considering providing funding.

Learn More:  Seeking Funding from Angel Investors vs Venture Capitalists

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.

BUSINESS STRATEGIES

How to create a bakery business plan

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

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

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

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

Why create a bakery business plan? Key benefits to consider

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

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

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

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

How to create a bakery business plan in 6 steps

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

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

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

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

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

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

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

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

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

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

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

Example of an executive summary for a bakery

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

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

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

02. Business and domain names

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

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

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

03. Market analysis and research

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

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

04. Operations plan

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

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

05. Marketing and advertising plan

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

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

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

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

06. Financial plan

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

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

Bakery business plan example: SweetBite Bakery

Part 1: executive summary.

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

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

Part 2: company and domain names

Company name: SweetBite Bakery

Domain name: www.sweetbitebakery.com

Part 3: marketing analysis and research

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

Part 4: operations plan

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

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

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

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

Part 5: marketing and advertising plan

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

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

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

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

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

Part 6: financial plan

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

Projected first-year revenue: $500,000

Projected first-year expenses: $350,000

Profitability timeline: By the end of the second year

Bakery business plan example: Wholesome Harvest Bakery

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

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

Company name: Wholesome Harvest Bakery

Domain name: www.wholesomeharvestbakery.com

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

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

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

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

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

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

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

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

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

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

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

Projected first-year revenue: $350,000

Projected first-year expenses: $250,000

Profitability timeline: By the end of the first year

How profitable is owning a bakery?

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

Offering high-quality baked goods and coffee

Providing excellent customer service

Marketing their bakery effectively

Offering catering services

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

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

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

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

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

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

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

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

What are the disadvantages of owning a bakery?

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

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

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

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

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

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

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

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

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

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

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

What mistakes do startup bakeries make?

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

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

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

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

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

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

Bakery business plan FAQ

What is the most profitable bakery item.

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

Coffee and tea

What is the failure rate of bakeries?

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

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Bakery Business Plan Template

Written by Dave Lavinsky

Bakery Business Plan

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

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

Download our Ultimate Bakery Business Plan Template here >

How To Write a Business Plan For a Bakery

Executive summary.

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

Company Overview

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

Finish Your Business Plan Today!

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

For example, do you or will you operate a:

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

Industry Analysis

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

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

Customer Analysis

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

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

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

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

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

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

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

Competitive Analysis

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

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

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

Marketing Plan

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

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

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

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

Operations Plan

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

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

Management Team

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

Financial Plan

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

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

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

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

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

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

Bakery Business Plan FAQs

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

Where Can I Download a Bakery Business Plan PDF?

You can download our bakery business plan template PDF here.

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

What Is a Bakery Business Plan?

Why Do You Need a Business Plan?

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

What Are the Sources of Funding for a Bakery?

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

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

OR, Let Us Develop Your Plan For You

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

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

Other Helpful Business Plan Articles & Templates

• Sample Business Plans
• Food, Beverage & Restaurant

Bakery Business Plan

Ready to turn your love for baking baked goods into a successful business?

To ensure that your business endeavor happens to be a flourishing one, write a business plan specifically crafted for your unique bakery business.

From helping you finalize the bakery location to evaluating the financial position of your business- a detailed plan uncovers every detail essential to kickstart a successful bakery business.

Writing a business plan can get complicated. With this step-by-step guide, you will have all the information essential to write a bakery business plan . Also, download our free bakery business plan template and modify it to fit your needs.

Ready to dive in? Let’s get started.

Key Takeaways

• Conduct a detailed industry analysis of the bakery market to understand market trends, target market, and the growth scope of your business.
• Outline the business goals and devise a business strategy that is in line with your bakery’s branding image.
• Analyze the competitive landscape of your business and identify local businesses that will offer direct and indirect competition to your business.
• Make calculations, assumptions, and projections to form key reports such as income statement, balance sheet, Cash Flow statement, and Break-even analysis.
• Determine the operations of your bakery business by outlining the procedures, processes, and equipment required to kickstart the business.
• Determine the baked goods and services you will sell through your bakery business.

Why is a bakery business plan important?

A business plan helps achieve your business objectives by creating a roadmap that will guide your bakery business in a strategic direction. An actionable well-drafted plan offers an in-depth view of your business idea and are a few benefits you must know:

• A business plan instills clarity in your business idea. All the ideas that were messed up in your mind start getting a clear point of view once you start writing a plan.
• A business plan is your checklist to understand what different aspects of the business need- the resources, equipment, manpower, licenses, etc.
• It helps crystallize your business vision and what it aims to achieve in the bakery market.
• A business plan optimizes the bakery operations and brings down the operating expenses by ensuring the resourceful allocation of bakery resources.
• A plan evaluates the financial aspects and viability of your bakery idea before you actually invest money in the business.

And, of course, a well-crafted plan will get you essential funds to get started in the bakery market. Moving forward, let’s craft a spectacular plan for your bakery business.

How to Write a Bakery Business Plan: A Complete Guide

From writing an executive summary to creating your financial plan- let’s decode the key elements of writing a business plan.

1. Get a business plan template

Before you start writing a business plan, consider getting a sample template to simplify the entire plan writing process.

A lot of information goes into writing a comprehensive business plan. Addressing all the key components in brief details is a challenging task.

However, by using a template, you can add structure to your plan. Not only that, it will help you organize the information clearly in a cohesive manner. With appropriate prompts, you will know exactly what to write in each section.

We know you would start searching for a template. Well, the Upmetrics business planning template is perfectly relevant and suited for your bakery business. It’s intuitive, modern, and available for free download.

Need Assistance Writing a Bakery Business Plan?

Get Upmetrics’ business plan template, import data directly into the editor, and start editing using Upmetrics AI Assistant.

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2. Write an executive summary

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

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

For instance,

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

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

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

3. Conduct a competitive and market analysis

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

The market analysis section of your bakery plan must include:

Market share, growth potential, and industry trends

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

Understanding of the target market 

Who will be your potential customer at a bakery shop?

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

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

Competitor analysis

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

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

Want to Perform Competitive Analysis for your Business?

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4. Prepare a company overview

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

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

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

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

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

5. Describe your products and services

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

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

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

6. Bakery store design and layout

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

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

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

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

7. Prepare a bakery marketing plan

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

So how do you build a perfect marketing plan?

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

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

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

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

8. Outline your organizational structure

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

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

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

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

9. Create a logistics and operational plan

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

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

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

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

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

10. Create a Financial Plan

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

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

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

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

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

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

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

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

Bakery Industry Highlights 2023

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

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

Download a sample Bakery business plan

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

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

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

Fill-in-the-blanks and automatic financials make it easy.

Write your business plan with Upmetrics

Optimize your business planning with Upmetrics .

With more than 400+ business plan examples , we offer invaluable guidance to help you write a cohesive business plan.

Whether you are writing a business plan to strategically grow your business or attract investors, Upmetrics’ invaluable resources like AI assistance, forecasting tools, and step-by-step guides will serve you perfectly.

Let’s bake a recipe for success together.

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

An effective bakery business plan must include:

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

How long should my bakery business plan be?

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

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

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

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

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

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

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

About the Author

Vinay Kevadiya

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

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How to Write a Bakery Business Plan + Template

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

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

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

Download the Ultimate Bakery Business Plan Template

What is a Bakery Business Plan?

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

Why Write a Bakery Business Plan?

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

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

Writing an Effective Bakery Business Plan

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

Executive Summary

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

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

Company Description

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

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

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

Industry Analysis

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

Questions to answer include:

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

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

Customer Analysis

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

For example, a bakery’s customers may include:

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

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

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

Competitive Analysis

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

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

Marketing Plan

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

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

Operations Plan

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

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

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

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

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

Management Team

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

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

Financial Plan

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

This includes the following three financial statements:

Income Statement

Your income statement should include:

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

Sample Income Statement for a Startup Bakery  

Balance sheet.

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

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

Sample Balance Sheet for a Startup Bakery  

Cash flow statement.

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

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

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

Sample Cash Flow Statement for a Startup Bakery  

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

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

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

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

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Download Now: Bakery Business Plan Templates for 2021

A bakery business isn’t that difficult to start but it comes with a lot of planning. You can’t just release all your baked goods overnight without carefully planning how you’re going to market and sell it. You will need to figure out your menu, where to get your supplies, the costing for each of your baked goods, and how to package them. You will have to jot everything down, lay the groundwork for all your needs, and set goals to meet them.

If your love and passion for baking have made you decide to put up a bakery, then you’re in the right place to figure out how to start on one. As with all other businesses out there, you will need a business plan and we’re here to help you how to make one.

Why Do You Need A Business Plan?

Do you need a business plan for a bakery?

A business plan is a guideline to help you figure out what direction your business is heading and what goals you want to achieve. It’s also a great plan to present to banks if you’re looking for a loan and for potential business partners if you’re looking for investors. But most of all, you need a business plan to help yourself. It will serve as your guide on how to achieve your goals and even compute your possible profit.

By the end of this guide, you’ll be able to draft up your business plan or you can use the template we’ll provide that’s available to download below.

Executive Summary

Start your bakery business plan with an executive summary section. This section is all about providing brief information on your business without getting all the details in. The goal of this section is to get the whole picture of what your bakery is all about at a single glance.

Just 2 to 3 sentences per category should be enough to express your ideas. You’ll get the chance to explain everything specifically in the later part of the business plan.

Introduction

Imagine having a booth at a food fair with dozens of other businesses right next to you. What are the things you can put on your sign that when a customer passes by they’ll be able to figure out what you’re selling in just a couple of seconds?

That is what you are going to write in your introduction. You are going to supply information that’s eye-catching, attention-grabbing, but also sticking to the realness of your bakery.

Related Reading: The 6-Step Marketing Growth Plan for a Home-Based Bakery

Here’s an introduction example you can follow:

Quick Bites is a bakery that offers a new take on the bread scene for New Yorkers on the go. All the buns are stuffed with delicious filling, both savory and sweet to satisfy a hungry tummy in need of that quick snack that’s conveniently packaged to eat on the run.

Just by reading that example, you’ll know that Quick Bites is:

• A bakery that supplies buns with filling that is either savory or sweet.
• Located in New York.
• Catered for people looking for a quick snack.

Capture your reader’s attention by keeping things light yet informative in this part of the business plan.

Company Description

Write a company description.

Every bakery business has a background. You’ll want to include how many years in the making has your bakery idea been going around and who is in charge of it. Will it be a partnership? Will you be doing the baking and managing at the same time? Putting in a little bit of your bakery’s background helps give the reader a brief understanding of what your business’s managing strategy is going to be.

The first thing on your mind when you decided on putting up a bakery is probably the menu. And though that’s quite exciting to draft up at once, you’ll have to decide on the services you’re going to offer first by figuring out what kind of bakery you’re going for.

Here is a guide to choose the type of bakery you want:

• Full service – This includes having your own space with a kitchen and baking area, a display area for your baked goods, and dine-in options with drinks such as coffee or tea.
• Take-out service – This is a type of bakery where you have a small space just to display your baked items and offer a drink or two. Customers can just line up and order your buns to go.
• Online – This type of business does not require any space. This is all done in your kitchen at home. Customers will just place their orders online and will pick them up or have them delivered.

By deciding this early on, you can have a clear image of what your bakery is going to look like and how it will operate.

Customer Focus

Cake bakery display case.

We know what you’re thinking: everyone is your potential customer. And though that is the goal, you still need to list down your target customers so you can focus on a certain product line to sell.

Take for example Quick Bites. As mentioned in the introduction, the bakery is for those who are looking for a quick snack to eat. Therefore, their target customers are mostly working people who do not have time to sit down for a meal and are looking for a convenient yet delicious food replacement while still having the time to work.

Related Reading: 101 Creative Bakery Names You Can Use Right Now

With this focus in mind, Quick Bites’ product line of filled buns fit this category since busy people can eat their buns with one hand only so they can focus on doing other things instead.

Again, be sure to keep this short. You can add in the details later on in the Target Market section of the business plan.

Mission Statement

Every business has a vision no matter how small it is. If you just plan to have a simple bakery up and running, you still have goals to meet. This is how businesses succeed since a mission statement allows owners and staff to be reminded of the direction they’re heading.

An example mission statement for Quick Bites would go like this:

Quick Bites’ mission is to serve a variety of freshly baked bread, particularly buns with different filling, that can satisfy a hungry tummy on the go. Our buns are nutritious and are packed with only real ingredients. No artificial flavors will be used and no preservatives are added. Our bakery is committed to making quick meals that are convenient to eat while working and we ensure that they are also healthy and affordable.

Company Concept

It’s time to get all the details down for your bakery’s concept. Think of it as the longer and more detailed version of your executive summary. This section is quite easy and fun since you can now list everything you’ve planned your bakery to have.

Will you be serving artisanal bread? How about puff pastries? Will you be including cakes? Will you also be offering coffee and tea? Will you be baking on the premises or will you have a commissary located somewhere? What are your operating hours?

All these things are important so list down everything you can think of that discusses what your bakery’s concept is going to be.

Market Analysis

Learn more about Jennifer Jacobs.

At this point, you’re probably wondering why you should care about analyzing the baking industry around you when all you want is to just bake your bread and sell them.

Well, let’s put it this way: baking bread might be easy but the selling part may be a little difficult if you don’t know your target market, the bakery business trend in your area, and the competition around you.

Target Market

Writing down your target market is easy since you already mentioned it above on your Customer Focus section. Just add in more details so you or anyone else who will read this will understand more about which group of people do you cater to.

Include the following in your target market list:

• Working-class or students
• Location (local office workers, neighborhood families, etc.)

Industry Analysis

To ensure your bakery is going to be a success, analyze the trend surrounding this type of business in the area you’re planning to open this up. For instance, if you’re like Quick Bites whose target market is the working class, then you’ll need to check the area around your planned bakery if this is a place where several offices are located.

You may also include a study on whether or not people like artisanal bread or healthy bread. This can help you check whether your planned menu can sell successfully or not.

For online bakery businesses, you can focus on the factors that people tend to look at when they’re ordering food online. This includes:

• The preferred number of days for pre-orders.
• Delivery times and rates.

Competitive Analysis

You’ll have to come to terms with the fact that you’ll have competition once you open your bakery business. That’s not entirely a bad thing. Having competition can help you analyze the prices for your baked items and it would also draw in interest from other potential customers. The trick here is to be better than the rest and that is why you are doing this business plan so you can succeed when you start selling your items.

If you are putting up a physical store, list down the bakeries surrounding your potential location. If you are an online store, you can also compare other online bakeries in your neighborhood.

You may even do a comparison. Write down the top three business names of your competitors, their strengths, and their weaknesses, and see where your bakery stands out.

Management Structure

Knowing the roles each person plays in your bakery business is important. It sets a clear and distinct understanding so that no arguments will happen in the future regarding their duties. This is particularly helpful when you’re in a business with a partnership so there are specific roles and duties indicated per person.

But even if you’re running the business on your own, it’s still important to write it all down so you’re aware of what else you need to do and if you need to delegate some tasks.

Related Reading: Learn how a Culinary Grad Built a $26k/Month Pastry Shop.

You can divide these into the following:

• Management Team – These are the people who will be running the business, those who will be in charge of sales and marketing, bookkeeping, filing and processing of legal documents, research and implementation, and ordering of supplies.
• Bakers – These will include the people in charge of baking your products.

For a bigger bakery with dine-in capacity, you may include these as well:

• Servers – These will include the people who will prepare the food to serve such as reheating bread or assembling them.
• Baristas – If your bakery is serving coffee, these are the people in charge of working the espresso machine.

However, some bakeries have their servers work as baristas at the same time so it’s important to state this clearly so your employees will know their duties.

• Cashiers – These people are in charge of manning the counter for any purchases.
• Clean-up Crew – These will include people who are responsible for cleaning the tables, dishes, and everything else that you need to sanitize your bakery.

Product Line and Services

Cake pops are a favorite at bakeries.

This section is the moment you have been waiting for. This is where you’ll place all the products you are going to offer in your bakery. Be it puff pastries, sandwiches, or artisanal bread, just be sure to write them all down. Be specific and indicate the prices as well.

Aside from your product line, you can include other services you wish to offer. Do you do wedding cakes? How about customized cakes? Would you be willing to supply bread to other businesses? Are you open to catering? Putting this all down in this section will help you organize your thoughts so you can put them into action carefully.

Sales and Marketing

A very helpful way to start marketing your bakery is to combine your target market and product line to bring attention to what you’re selling. For Quick Bites, since their target market is for people on the go, they can push how convenient their buns can be eaten while they’re walking on the street. They can also advertise the many flavors of buns they can offer from sweet fillings such as custard or jam to savory ones such as pepperoni, cheese, or vegetables.

Social media is also a great way to market your business. By putting up nicely photographed images of your bread and knowing the right trending hashtags to use, you can capture a huge number of followers.

But if there’s one marketing plan that’s overlooked by many, it’s taking advantage of the sense of smell. Freshly baked bread is pleasing to the senses and can entice customers to check out what you’re baking. So if you have a physical store, use the delicious smell of your baked bread by letting it waft out into the streets to lure passersby. You’ll be surprised just how fast people will flock to your bakery when you allow the scent of your baked goods to fill them.

Financial Plan

Red rose cupcakes.

We’re now on to the nitty-gritty part of the business plan. This includes where you’re going to get the money to fund your bakery and forecast the expenses and possible profit you’re going to make. Why is this important? It’s so that you’ll know early on if the concept, product line, and proposed services you’re going to offer in your bakery is profitable or not.

Keep in mind that you don’t really need a lot of money at all if you’re just starting your bakery business. As previous guest on the podcast Jennifer Jacobs explained , she spent the first few years operating a home-based bakery business. Jennifer operated her business for years while holding down a full-time job, before opening the doors to her first retail space. This is the path she recommends for other food entrepreneurs too.

Funding Request

The only thing you need to focus on this section is to ask yourself, where are you going to get the money to start your bakery? Whether it is a small online business wherein you’re the only one who will be doing the baking and selling, or it’s a big bakery with dine-in options and lots of staff, you have to be clear where to get the capital for all of this.

Getting a loan from the bank or inviting investors are a few options you can choose. This is also the reason why you’re making this business plan to convince them to give you a loan or to join in funding your bakery.

Financial Forecast

Bakery Food Truck.

You will need to list down all your planned expenses for your bakery. For a simple online bakery business, this includes:

• Refrigerator
• Packaging Materials
• Ingredients (flour, sugar, salt, butter, etc.)

If you are planning to open a physical store with dine-in options, you’ll also have to include these:

• Store signage
• Bread display rack
• Point-of-sale system
• Chairs and tables
• Trays, plates, and cutlery
• Espresso machine

You’ll also need to spend on your advertising materials whether these are in social media or print. The bottom line is, listing down all your proposed expenses can help you forecast the amount of money you need to start your bakery. According to professional bakers we interviewed for this piece, starting up a bakery costs $100,000 and $750,000. With these numbers, you can then set up a budget and start looking around for affordable equipment for your bakery.

Aside from your expenses, you’ll also need to do a break-even analysis so you know if you’ll be able to receive any profit from your proposed product line and services.

Operational Plan

Attention Bakery Founders: Download our Food Business Startup Kit for Startup Templates

Writing all your plans down is one thing but to set up a timeline for your operations is another. This sets the gears in motion for when you plan to execute your business.

Do a simple timeline following this example:

Date Plan [Insert Date Here] – Finalize the design and layout of the bakery and secure all rental documents such as permits and business registration.[Insert Date Here] – Start construction.[Insert Date Here] – Hiring and training of staff. You may also start advertising your bakery’s products and opening date.[Insert Date Here] – Start operations for the bakery.[Insert Date Here] – Achieve goals and reach break-even.

This is an example of a physical bakery store. For online bakeries, your timeline should be shorter and simpler.

This section is where most of your documentation to back up your business plan is included. You can also add photos of your bakery’s layout, your proposed design packages, and payroll plans.

Download Templates

Here are templates and real bakery business plan examples you can use as inspiration to setup your own business structure. These are available for download in PowerPoint, Google Docs, and PDF files.

• Bakery Business Plan PowerPoint  
• Bakery Business Plan Google Docs 
• Bakery Business Plan PDF
• If you are planning to open a physical store, be sure to delegate tasks. It’s fun to be hands-on with everything going around your bakery but you can’t manage the counter and be the baker at the same time. So appoint specific people for different roles but also have them multitask so you don’t hire too many people.
• Plan your menu accordingly. You do not want to bake a lot of bread and let them go to waste at the end of the day. Study the foot traffic around your area as well as your possible bestselling item. For instance, if Mondays are the busiest, then maybe you can double up on your recipes for a certain bread that everyone seems to like best. But you can slow it down on Tuesdays and focus on other items instead.

Don’t be intimidated in starting up your bakery and making this business plan. The point of the business plan is that it’s supposed to help you go through the finer details of your bakery. If the whole bakery business plan seems too complex for you then you just failed in understanding the purpose of it. It has to be easy to read and understand because it will serve as your guide.

Where are you planning to open your bakery? We’re just as excited as you are for this new adventure and look forward to hearing about the plans you put in place. Don’t forget to sign up for our free Food Business Startup Kit for exclusive interviews with bakery founders.

Want to start your own food business?

Hey! 👋I’m Brett Lindenberg, the founder of Food Truck Empire.

We interview successful founders and share the stories behind their food trucks, restaurants, food and beverage brands. By sharing these stories, I want to help others get started.

If you liked this story, sign up for our newsletter that includes our food business startup kit and most popular interviews sent straight to your inbox.

Know someone interesting that should be interviewed on the website? Tell us about them here. 

About the Author: Brett Lindenberg

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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

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.

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 🙂

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 ?

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?

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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Specialty Baker Business Plan

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Morningstar 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.">.

Morningstar Bakery is a new organic bakery specializing in gluten, wheat and dairy free products. Within the last three years there has been significant increases in demand for these bakery products. This can be explained to a large degree by the fact that up until recently Americans have had food allergies that have been undiagnosed. It has been only in the last few years that medical doctors have begun to diagnosis food allergies correctly. What was once an unknown problem that affected so many people with no recourse has become a manageable ailment that is easily dealt with through modification of diets. This is very positive for both those people that are affected as well as bakeries such as Morningstar that specialize in these products.

The Products

Morningstar offers a wide range of exciting products. The first group is spelt breads, muffins, and pastries. Spelt is used as there are far fewer people that are allergic to this grain. Yeast allergies are also common and Morningstar offers a menu of yeast free breads. Dairy free muffins and pastries are offered for vegans. Lastly, egg free breads, muffins, and pastries are offered.

Morningstar will focus on three distinct customer segments. The first group is the Allergy group. This segment is growing at 15% a year with 32,000 potential customers. The second niche is the Doctor group. This segment is also growing at 15% with 14,200 potential people. The last group is the Dieters group. This segment is typically making modifications to their diet based on their desire to lose weight. This niche also is growing at 15% with 48,000 possible customers.

Management Team

Recognizing the importance of human capital, Morningstar has assembled a strong management team. The team is led by Donna Sharp. Donna comes to Morningstar with 10 years of baking experience. In addition to her industry specific experience, Donna has had 2 years of management experience. Donovan Bailey brings financial skills to Morningstar after a 15 year CPA career. Tara Juniper-Reid will lead the marketing efforts having participated in her own PR firm. Lastly, Lucy Hamilton will be on the team as an assistant baker with over five years of experience.

Morningstar is an exciting opportunity that combines, fresh baked goods with spelt, yeast free, dairy free, and egg free products, addressing the recent need for these new products. Demand for these products is expected to grow exponentially as medical doctors become more and more aware of food allergies Americans are afflicted with. Profitability is forecasted to occur by month three. Through a combination of a strong management team, a solid business model, and exciting, market demanded products will allow Morningstar to quickly gain market penetration and cash richness.

1.1 Objectives

• To establish a working storefront for Morningstar bakery.
• To develop the strong presence in the community needed to support sales goals.
• To develop a full menu by the end of the second quarter.

1.2 Mission

Morningstar Bakery aims to be a cornerstone in the community creating a neighborhood atmosphere where customers feel comfortable and become instant regulars. We are sensitive to the often over-looked population of allergy sufferers and cater to their needs for healthy, delicious baked goods. We seek fair and responsible profit, enough to keep the company financially healthy for the long term and to fairly compensate owners and investors for their money and risk.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Morningstar Bakery will be located in downtown [Name omitted] in a historical building. This downtown district is a very popular destination because of the historical architecture for weekenders and tourists. It is also a prime location for all the employees of the surrounding downtown businesses. The bakery sells non-wheat and other health specific breads, sweets and pastries to the surrounding community every Tuesday through Sunday.

2.1 Company Ownership

Currently Morningstar Bakery is a sole proprietorship owned by Donna Sharp. Eventually, as the company becomes established, Morningstar Bakery will apply to be incorporated.

2.2 Start-up Summary

The primary expense to establish the Morningstar Bakery is the mortgage loan estimated at $175,000 to purchase the vacant space on [Name omitted] street. The building was previously used as a bakery and we plan to buy the used equipment along with the space. This cost is also calculated into the loan estimate. Donna Sharp intends to invest $7,500 of her savings to cover the other cost of start-up.

These costs include:

• Bakery accessories, i.e. paper bags, cartons, etc.

Morningstar Bakery provides non-gluten baked goods and pastries to diet-conscious and wheat-allergic consumers. Special considerations are made for all common food allergies such as dairy, yeast, wheat, and eggs.

Example of goods:

Spelt breads, muffins and pastries Spelt flour is the most common wheat-alternative flour as it has the same characteristics as wheat which provides similar taste, consistency and behaviors creating goods that are just as good as any wheat baked good.

Yeast-free breads Many people have an allergy to yeast, or have been warned by their doctors not to eat it. We provide a line of yeast-free breads.

Dairy-free muffins and pastries Most breads do not require any dairy products, so they are not a consideration. Muffins and pastries most often require butter. To avoid this, we use a soy substitute.

Egg-free breads, muffins and pastries Eggs are most common in muffins and pastries. Applesauce can be used as a substitute as it provides the same amount of moisture that is required.

Market Analysis Summary how to do a market analysis for your business plan.">

Our target market includes people who are health conscious and/or have common food allergies. This is a niche market since most bakeries do not cater to these needs with the exception of high-fiber diets.

4.1 Market Segmentation

Our target market consists of three groups:

The Allergy Group According to Health Magazine , one out of five people suffer from a common food allergy, however many bakeries do not cater to their needs.

The Doctor Diet Group For health reasons, many people are warned off certain foods by their doctors because of high cholesterol and blood pressure. Currently the main killer in the U.S. is heart disease according the American Heart Association. Many Americans aged 50+ are going on special diets to prevent heart disease.

4.2 Target Market Segment Strategy

In our target market, we will mainly focus on the “allergy group” since they are the most prevalent and steady of customers. We expect that the “doctor diet group” and the ‘”diet craze” group will make up a smaller portion of our customers. We have not listed “regular customers” as a target group since the customers who do not fit into any of our groups are too varied to segment. We are specifically filling the needs of the “allergy group” so we expect the most business from this group.

4.3 Industry Analysis

Morningstar bakery competes in the Food Services Industry. In addition to competing with other organic and non-wheat bakeries, it competes with all restaurants, delis, bakeries and supermarkets for a share of its customers’s food dollar. Morningstar is most concerned with competitors who differentiate their products and services with a healthy, organic focus. Because this group is so large, Morningstar has chosen to limit its analysis to other gluten-free bakeries.

4.3.1 Competition and Buying Patterns

Currently there are two bakeries in town that provide non-wheat goods.

Great Harvest Bread Company

Strengths: Makes spelt bread, muffins and cookies every Monday, Wednesday and Friday. Well-established bakery in town. Sells breads in local grocery stores.

Weaknesses: Does not provide a wide selection of non-wheat goods. Furthermore the texture and flavor of their spelt goods is very dense and flavorless. They use whole spelt bread which makes a denser, crumby consistency bread. We use white spelt in our spelt breads and other goods which has a texture and flavor similar to wheat.

The Sweet Life Patisserie

Strengths: Makes spelt bread, muffins and brownies every day. Will make custom-ordered non-gluten cakes.

Weaknesses: Does not produce a wide selection or large quantity of non-wheat goods. Their main focus is wheat goods.

Strategy and Implementation Summary

Our strategy focuses on serving a niche market with quality goods. We are determined to become a part of the community – an establishment that becomes as much of the community as a church or local grocery store. To achieve these goals, we will provide the following:

• Friendly, neighborhood-feel atmosphere.
• Quality baked goods for everyone to enjoy at a fair price.
• Special diet menus in relation to the advice of local healthcare providers.

5.1 Sales Strategy

Our strategy focuses on building a customer base by providing good customer experience. With the addition of the coffee bar and lunch menu in early spring, we hope to have customers make the bakery their one-stop destination for breakfast or lunch. In the summer, when we open the outdoor patio, more and more customers will make the bakery a destination for their lunches more often since the atmosphere will be so pleasing.

We would also like to work closely with local doctors and elder care homes to bring in customers with health problems. We are already in negotiations with Dr. Goodman’s office to insure referrals to the bakery for his patients.

5.1.1 Sales Forecast

Our sales forecast assumes the following changes:

• Bread sales in the summer months will be slightly higher since more people will be having BBQs and picnics requiring items such as hamburger and hotdog buns.
• Bread and pastry sales will be higher in November and December because of the food-oriented holidays.
• Coffee sales will be higher in winter months, and for summer months sales of sodas and iced beverages will increase.

5.2 Competitive Edge

Our competitive edge is our quality of goods. We use only organic flours of the highest quality that create incredible non-gluten goods that can’t be matched anywhere else in town. We also focus mainly on non-gluten goods. The other bakeries in town focus on wheat goods and sometimes, as an afterthought, use alternative flours.

5.3 Milestones

The table below displays the milestones that Morningstar Bakery would like to accomplish in the first three years. Emphasis in the first year will be on advertising to make the Morningstar Bakery an established business in town.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Donna Sharp is the founder of Morningstar Bakery. She brings to the bakery her experience as a baker and as an entrepreneur. She has worked as a baker for over 10 years including two years as an apprentice in a well-known Paris patisserie. As a teenager she helped her parents at the family’s general store, both in sales and marketing. For her last two years at her family’s store, she was the general employee manager. Her duties at the bakery will include employee hiring and training, head baker and store management.

Donovan Bailey has run his own successful CPA consulting firm for 15 years. His duties will include the bookkeeping, inventory management and stock fulfillment.

Tara Juniper-Reid runs her own PR company and will be assisting the Morningstar Bakery in its marketing campaigns on a part-time basis.

Lucy Hamilton has worked as a baker for over five years and will be the assistant baker. Her responsibilities will also include the management of the bakery shopping list.

6.1 Personnel Plan

Once the bakery becomes established and the cash flow is steady, we would like to hire one person for counter help and another assistant baker.

The table below illustrates the needs of the current employees, plus the integration of two more employees within three months of operation. The new hirings will coincide with the opening of a lunch menu and coffee bar which will most certainly require more help.

Financial Plan investor-ready personnel plan .">

The following sections will outline important financial assumptions.

7.1 Important Assumptions

The current economic climate in the U.S. appears to be on the brink of recession. However, we do not believe that if the country does enter a recession that our business will be unduly affected. Since our products are ones that help contribute to and maintain good health, we believe that people will continue to buy our products over traditional wheat bread. We are operating in a niche market, and in addition, the price of our breads and sweets although slightly higher than traditional bakeries they are not positioned as expensive, luxury items.

7.2 Break-even Analysis

• Advertising.

The Break-Even Analysis as it appears below indicates that the break-even point will be attainable each month.

7.3 Projected Profit and Loss

The following table shows the projected profit and loss for Morningstar Bakery.

7.4 Projected Cash Flow

The following chart illustrates a healthy cash balance for the first three years, enabling the company to grow through reinvestment.

7.5 Projected Balance Sheet

The following table represents the financial position of the Morningstar Bakery at the end of each of the three upcoming fiscal years.

7.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5461, Retail Bakeries, are shown for comparison.

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