example of bakery business plan

Bakery Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Bakery Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Bakery Business Plan

You’ve come to the right place to create your bakery’s business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their bakeries.

A bakery business plan is a plan to start and/or grow your bakery. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan, and details your financial projections.

How To Write a Bakery Business Plan & Sample

The following information will provide a description of what to include in your bakery business plan along with links to an example for that section:

• Executive Summary – The Executive Summary section provides a high-level overview of your plan. It should include your company’s mission statement, as well as information on the products or services you offer, your target market, and your business goals and objectives.
• Company Overview – The Company Overview section provides an in-depth look at your company, including information on your company’s history, ownership structure, bakery location, and management team.
• Industry Analysis – Also called the Market Analysis, in this section, you will provide an overview of the industry in which your bakery will operate. You will discuss trends affecting the industry, as well as your target market’s needs and buying habits.
• Customer Analysis – In this section, you will describe your target market and explain how you intend to reach them. You will also provide information on your customers’ needs and buying habits.
• Competitive Analysis – This section will provide an overview of your competition, including their strengths and weaknesses. It will also discuss your competitive advantage and how you intend to differentiate your bakery from the competition.
• Marketing Plan – In the Marketing Plan section, you will detail your marketing strategy, including your advertising and promotion plans. You will also discuss your pricing strategy and how you intend to position your bakery in the market.
• Operations Plan – In the Operations Plan, you will provide an overview of your store’s operations, including your store layout, staff, and inventory management. It also includes information on your warehousing and distribution arrangements and a list of long-term milestones or business goals.
• Management Team – In this section, you will provide information on yourself as the talented baker, your team, your experience, and your roles in the company.
• Financial Plan – In this section of your bakery financial plan, you will include your financial statements: income statement, balance sheet, and cash flow statement. It also includes information on how much funding you require and the use of these funds.

Next Section: Executive Summary >

Bakery Business Plan FAQs

How can i complete my bakery business plan quickly & easily.

Learn more about writing a successful plan by using this bakery business plan template .

Where Can I Download a Bakery Business Plan Template?

Get a downloadable bakery business plan template here . 

What Are the Main Types of Bakeries?

A bakery can be retail or wholesale. A retail bakery sells baked goods directly to customers, while a wholesale bakery typically sells products to other businesses, like restaurants, grocery stores, specialty shops, and cafes.

How Do You Get Funding for Your Bakery?

Bakeries are most commonly funded with personal savings and bank loans. Credit card financing and angel investors are also popular forms of funding for bakeries.

Learn More:  Seeking Funding from Angel Investors vs Venture Capitalists

What Are the Main Sources of Revenues and Expenses for a Bakery?

The primary source of revenue for bakeries is its baked good sales. This includes deliveries and online orders. Sometimes bakeries also earn from bulk orders from wholesalers or special occasions.

The key expenses for bakeries are rent, wages and salaries, ingredients and packaging.

What are the Steps To Open a Bakery Business?

Opening a bakery business can be an exciting endeavor. Having a clear roadmap of the steps to open a business will help you stay focused on your goals and get started faster.

1. Develop A Bakery Business Plan - The first step in opening a business is to create a detailed bakery business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your bakery business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your bakery business is in compliance with local laws.

3. Register Your Bakery Business - Once you have chosen a legal structure, the next step is to register your bakery business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to open your bakery business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Bakery Equipment & Supplies - In order to start your bakery business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your bakery business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful bakery business:

• How to Open a Bakery Business

Where Can I Get a Bakery Business Plan PDF?

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

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.

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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?

Discover your competition’s secrets effortlessly with our user-friendly and Free Competitor Analysis Generator!

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.

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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.

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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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Table of Contents

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

What is A Bakery Business Plan?

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

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

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

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

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

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

1. Clear Vision and Objectives

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

2. Financial Planning

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

3. Operational Efficiency

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

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

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

1. Executive Summary

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

What should you cover in an Executive Summary?

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

2. Bakery Business Description

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

What should you cover in the bakery description section?

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

3. Market Analysis

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

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

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

4. Organization and Management

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

What should you cover in organization and management plan?

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

5. Sample Menu

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

What should you consider when creating a sample menu?

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

6. Marketing Strategy

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

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

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

7. Business Operations

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

What operational issues you should address in your business plan?

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

8. Financial and Loans

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

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

There are various avenues to secure funds for your bakery:

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

When seeking funds, be prepared to answer:

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

9. Financial Projections

Break-even analysis

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

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

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

Projected profit and loss statement

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

Cash flow analysis

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

Bakery Business Plan Sample

The following is a comprehensive sample of a bakery business plan

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

2. Description of the bakery

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

3. Menu offer

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

4. Market and competition analysis

Market Analysis:  

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

Competition Analysis:  

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

5. Investment plan (detailed cost analysis)

Investment cost: $40,000

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

Operating Costs (Monthly) : $16,500

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

6. Financial forecast

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

7. Marketing plan

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

Tips for Creating a Successful Bakery Business Plan

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

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

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

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

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

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

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

Frequently Asked Questions

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

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

3. How profitable is a bakery business?

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

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

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

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

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Bakery Business Plan PDF Example

• February 28, 2024
• Business Plan

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

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

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

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

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

Bakery Business Plan

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

Executive Summary

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

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

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

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

Dive deeper into Executive Summary

Business Overview

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

Bakery & Location

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

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

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

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

Make sure to cover here _ Bakery & Location _ Operations

Market Overview

Industry size & growth.

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

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

Key market trends

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

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

Key competitors

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

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

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

Dive deeper into Key competitors

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

Marketing Plan

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

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

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

Dive deeper into SWOT

Dive deeper into Marketing Plan

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

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

Financial Plan

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

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

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

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

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We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

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

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

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How to Write a Business Plan for Investors

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Business Plan Template

How to Start a Bakery Business

Simple Business Plan Outline

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How To Start a Bakery: Steps and a Sample Business Plan

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Want to take your culinary skills to the next level, move out of your home kitchen, and learn how to start a bakery? Good for you!

While the process is really just that simple, there are a number of practical steps you can take to get your new business heading in the right direction — including writing your very own bakery business plan.

In this article, we discuss some of the best things you can do before you even open your doors that can help make your new bakery a success.

Table of contents

How to start a bakery, sample bakery business plan.

1) Gain practical experience

Learning how to start a bakery and writing a bakery business plan are two very unique and specialized activities. Unlike, say, mowing lawns, owning and operating a successful bakery takes a lot of knowledge, experience, and skill.

Before you bake your first loaf for profit, get as much practical experience as possible. One of the best ways to do this is to work in a bakery or similar niche business.

As you do, pay attention to more than just the baking. Note how the business manages its employees , markets its products, provides customer service , and develops its business model.

Learning about these foundational business activities in addition to the bread-baking process can give your new endeavor the best chance for success.

2) Research laws that apply to the food service industry

Starting a food service business of any kind comes with a long list of laws, rules, and guidelines. Whether you want to open a bakery, a coffee shop , a cafe , or a restaurant , you’re going to have to operate under some very high standards.

Before you invest any money in the project, be sure to research the laws that apply to the food service industry in your area and get professional legal counsel.

For example, you may discover that your state requires you to use stainless steel appliances and cookware. Those items can be expensive to purchase and may affect how you spend the rest of your startup capital.

You may even discover that operating a bakery isn’t for you. And that’s OK. If that’s the case, at least you found out before you committed yourself to the project. View it as a learning experience, and use that information to find the business that’s right for you.

3) Consider a specialty

At first, you may be tempted to offer any and all baked goods under the sun — cakes, cookies, muffins, cupcakes, pies, breads, turnovers, and other sweet treats.

But jumping all in at first can make it more difficult to keep your bakery business in the black. Instead, consider a specialty for your business, and write it into your bakery business plan.

Narrowing down what you offer to one or two items — e.g., breads and croissants — can help in two distinct ways:

• It may allow you to focus on making your products the best they can be (rather than spreading your efforts too thin)
• It may help your customers recognize exactly what your business is and give you a boost in carving out market share among your competitors

As you’ll see in the sample bakery business plan later on in this article, All I Want Is Bread chose to focus on bread products so they can refine their recipes and make the best products possible.

4) Get to know your target market

Another important step in the process of starting a bakery is getting to know your customer base (i.e., your target market).

Doing so can provide valuable insight into key variables such as:

• Demand for your baked goods
• Customer demographics (i.e., statistical data relating to the population and particular groups within it)
• How your market will react to your baked goods
• Appropriate price points

Getting to know your target market can also help you identify factors that influence your potential customers’ buying decisions, allowing you to give them what they want and need.

5) Create a bakery business plan

Starting a small business of any kind depends, in large part, on the planning you do before the doors open. You can accomplish a large portion of that planning by creating a bakery business plan for your new endeavor.

Doing so will give you a roadmap or guidebook that can help you deal with the everyday activity of your business that, ultimately, makes it a success.

We’ve included a brief sample bakery business plan below, but you can learn more about everything that goes into this important document by reading these articles from the Sling blog:

• How To Start a Coffee Shop: Step-by-Step Coffee Shop Business Plan

Food Truck Business Plan: The Beginner’s Guide For Success

Here we provide a sample bakery business plan to get you started. We’ve included four of the most important sections in this sample, but there are many other sections you can include in your own document.

Consider this example a “jumping off” point. Use the information as you see fit, customize it to your business, and produce the best bakery business plan possible.

For more information on writing a business plan for a food service establishment, check out this article from the Sling blog: Restaurant Business Plan: What To Include, Plus 8 Examples.

Executive summary

All I Want Is Bread is a new bakery venture that aims to introduce the French boulangerie experience into the local market.

All I Want Is Bread will offer traditional baked goods, including baguettes, pain de campagne, sourdoughs, croissants, pain au chocolat, pain au lait, and turnovers.

All I Want Is Bread will make these baked goods from scratch with high-quality, fresh, locally sourced, sustainable ingredients. This commitment to quality ingredients and sustainable practices will set us apart from the competition

Company description

All I Want Is Bread will be run by Buffy Summers (owner) and Willow Rosenburg (general manager). Ms. Summers owns and operates several businesses in the area, and Ms. Rosenburg has 10 years’ experience managing a boulangerie in Paris, France.

All I Want Is Bread will be located in Sunnydale’s vibrant downtown district within walking distance to office buildings, restaurants, and residential neighborhoods.

All I Want Is Bread will be run as a Limited Liability Partnership (LLP) between Ms. Summers and Ms. Rosenburg.

It is our goal to provide quality bread to the workers, residents, and restaurants in our area. To help achieve that goal, we will also offer cafe-style seating, coffee and other beverages, and free WiFi to encourage customers to stay.

Market analysis

Bakery statistics according to [Source]:

• Industry net worth: $5 billion
• Growth rate: 3% per year over the next five years

As you can see, the bakery industry is a competitive niche, but there are also a number of excellent opportunities for new businesses within that niche.

We believe the key to success is to offer high-quality products, excellent customer service, and a competitive price .

Our target market includes bread lovers of all ages as well as restaurants that want to offer their customers and employees high-quality baked goods made from locally sourced, sustainable ingredients.

Financial Plan

We project that All I Want Is Bread will generate $1.5 million in its first year of operation with a 3% increase each year thereafter for the next three years.

We will achieve these numbers by targeting a 30% share of the Sunnydale bakery market and expect a gross profit margin of 4% in our first year of operation.

Workforce management and your bakery business plan

As you think about how your new company will run, be sure to include workforce management in your business plan.

More specifically, describe the technology you’ll use to help guide and direct your team — whether it’s one person, 10 people, or 100 people.

The Sling app , for example, includes a long list of tools to help make your workforce management as efficient and productive as possible, including:

• Advanced employee scheduling
• Integrated time clock
• Comprehensive communication
• Flexible task management
• And much more

Try Sling for free today to experience firsthand how the software can help you bring your bakery business plan to life.

Then, for more business management resources, help scheduling your employees, and tips for leading a successful team, visit GetSling.com today.

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This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for specific advice.

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Bakery Business Plan Template [Updated 2024]

Bakery Business Plan

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

The following sample bakery business plan gives you the key elements to include in a winning business plan. It can be used to create a business plan for a dessert bakery, bread bakery, cake bakery, and other businesses that sell baked goods.

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

Bakery Business Plan Sample

Below are links to each of the key sections of a business plan template for a bakery to help you write your bakery business plan:

• Executive Summary – In the Executive Summary, you will provide a high-level overview of your business plan including a brief description of your company, your products or services, your target market, and your business goals.
• Company Overview – The Company Overview section will include your bakery business concept, company history, bakery location, mission statement, and ownership structure.
• Industry Analysis – In the Industry Analysis, provide an in-depth look at the bakery industry including trends, competition, and growth potential.
• Customer Analysis – The Customer Analysis is where you will describe your ideal customers including their demographics and buying behaviors.
• Competitive Analysis – In the Competitive Analysis, you will compare your business to your closest competitors and provide an analysis of their strengths and weaknesses.
• Marketing Plan – In the Marketing Plan, you will flush out your marketing strategy for reaching your target market. This should include your marketing mix, your sales and distribution strategy, and your pricing strategy.
• Operations Plan – Your Operations Plan will include a description of your bakery, your bakery equipment, your production process, and your talented baker.
• Management Team – The Management Team section will include descriptions of your co-founders and key management members.
• Financial Plan – A comprehensive Financial Plan will include realistic financial projections and financial statements including an income statement, balance sheet, and cash flow statement.

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Bakery Business Plan Outline

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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.

Page Contents

Why Do You Need A Business Plan?

Executive summary, introduction, company description, customer focus, mission statement, company concept, market analysis, target market, industry analysis, competitive analysis, management structure, product line and services, sales and marketing, financial plan, funding request, financial forecast, operational plan, download templates.

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.

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.

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.

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.

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.

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.

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.

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.

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.)

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.

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.

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.

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.

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.

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.

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.

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.

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.

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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Bakery Business Plan

Who doesn’t love baked delicacies, such as cakes, cupcakes, cookies, and biscuits? No one, of course. If people say they don’t like them, they probably haven’t tasted one in their life. Because baked delicacies delight most people’s palates, opening a bakery business has an absolute potential for profitability. So if you have excellent baking skills and love baking, why not establish a small business out of it. You’ll get to do what you enjoy and earn good money at the same time. So if you’re convinced, start plotting your ideas with our home bakery business plan examples !

10+ Bakery Business Plan Examples

1. bakery business plan template.

• Google Docs

Size: A4, US

2. Bread Bakery Business Plan Template

3. Cake Shop Business Plan Template

4. Bakery Business Planner Template

5. Bakery Business Plan Example

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6. Cakes Bakery Business Plan

7. Retail Bakery Business Plan

Size: 50 KB

8. Home Bakery Business Plan

9. Business Plan for a Cake Bakery

10. Sample Bakery Business Plan

Size: 90 KB

11. Bakery Business Plan in PDF

Size: 487 KB

What Is a Bakery Business Plan?

A bakery business plan is a written outline of a bakery business’s overview, baked products, marketing strategies , and other vital info. Owners of bakery businesses use it as a guide on how to run their operations successfully. Plus, it can also function as their bakery business plan proposal if they want to present propositions to potential business partners.

If you want to launch a bakery business, such as a cupcake business and a cake shop, you need to formulate a business plan beforehand. It’ll help you have a clear direction on how to structure your bakery’s business model.

How to Start a Bakery Business

In planning a bakery, you’ll not just prepare a business plan. You also have to do the following:

1. Choose What Kind of Bakery You Want to Run

There are several bakeries; there are those that focus only on selling cakes, cookies, pies, and other baking delicacies. Some bakeries offer a diverse variety of them. For your business, the choice is yours and yours only. However, we do advise you to select a type of bakery business that you specialize in.

2. Look for Space

Of course, you’ll need a location for your bakery. Your home will do if the area where it belongs is an excellent place to do business. But if otherwise, you should look for other locations. Choose one that has many people around it. That way, your bakery will attract more customers.

3. Create a Menu

A menu is the heart and soul of every business that sells and serves food items, especially restaurants , coffee shops , and bakeries. So, make sure to make a bakery menu that can represent your business’s identity correctly. Use your creativity and baking knowledge to the fullest.

4. Implement a Family and Friends Policy

People close to you—your family, cousins, neighbors, high school buddies, and workmates—will likely ask for discounts. And being the kind-hearted person that you are, you grant what they want. That’s an excellent way to introduce your bakery to them, but don’t give discounts to them all the time. Make them understand that you’re running a business, and you need all the money you can earn from it. That’s why you should implement a family and friends’ policy .

How to Write a Bakery Business Plan

Now that you know what other things you must do in starting a bakery let’s now focus on making your business plan. When people hear business plans or business proposals , most of them think they’re hard to make. Yes, they’re crucial for a business, but they don’t have to be hard to create, especially for a simple business like your bakery. So here are four easy peasy tips in writing your bakery business plan  outline.

1. Provide a Clear Overview of Your Business’s Concept and Strategies

All sorts of bakery business plan samples you’ll come across have complete details about concepts and strategies. That’s because they manifest the majority of what the business will be. So, make sure to provide a clear overview of them in your business plan.

For the concept, it’s up to your creative and innovative mind on how you’re going to formulate it. As long the “all about bakery” theme of your business is evident, it’ll do. For your business strategies, you have to do some market analysis and SWOT analysis of your locality’s bakery industry.

2. Highlight Your Menu

As we’ve said earlier, a menu is the heart and soul of businesses that offer food items. With that in mind, you must highlight your bakery menu on your business plan. For every baking delicacy that you plan to sell, present it on the document. Write brief descriptions about them and attach photos if possible, like making a food portfolio  with examples of pastries and other mouthwatering recipes.

3. Be Clear About Your Financial Projections

Regardless of whether a business is big or small, its owner will need money to operate and generate profits. In running a business, money is everything. For that reason, be careful in formulating your financial projection in your business plan. That includes your budget estimates , operational expenses, and pricings.

4. Write the Executive Summary Afterward

All examples of a bakery business plan have an executive summary as their first section. Though not just bakery business plans, but all types of business plans. Although an executive summary should be the first section of your business plan, you should write it after. Why? That’s because it’s a general overview of your entire business plan and your bakery itself. With all your business plan’s contents set, it’ll be easier to write its executive summary.

Is owning a bakery a good business?

Of course, it is, especially if baking is your passion. As a bakery business owner, you can explore all sorts of baking styles, trends, and recipes while earning. On top of that, you’ll have the chance to pioneer new baking recipes and make them your best seller. You see, a lot of amazing possibilities can happen in running a bakery. All it takes is being creative and adventurous.

Is a bakery business profitable?

Yes, a bakery business is profitable. But for that to happen, you should establish your bakery in a strategic location—an area where many of your target customers reside or pass by regularly. And also, your baked delicacies should offer something unique that other bakeries don’t have.

What bakery items sell the most?

According to OrderNova , bakeries will potentially enjoy a 7.2% increase in the sales that their cakes and cupcakes will generate through 2021. The most likely reason is that cakes and cupcakes continue to be a favorite delicacy of most, especially among children. So if you’re thinking of what signature item your bakery should offer, consider cakes and cupcakes, and put your twist making them.

In being a bakery owner, not only will you make money, but you’ll also bring joy to the people in your community. Cakes, bread, pies, cookies are the comfort food of many. So go ahead and use your baking skills and passion to make that happen. Take advantage of our bakery business plan template to make your preparation easier.

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Create a study plan for final exams in high school

Develop a project timeline for a middle school science fair.

Sample Bakery Business Plan

Bakery business plan sample.

A bakery is one business where there is never a shortage of customers.

Its products which include bread, cakes, donuts, and a host of snacks are needed for breakfasts, fast food, and appetizers. So long as people continue to exist, no matter what part of the world they belong to, the demand for bakery products will always be high.

The baked products vary according to location depending on the types of food mostly consumed there, but the constant feature common to all is that most cultures have some particular foods that are baked.

The bakery business is ever booming and expanding as the global population increases. And you, the baker can take advantage of these vast opportunities to set up a profitable and thriving bakery business that will, in the long run, provide a needed service and at the same time, generate profits for its owner.

Do you have the mind of going into the going into bakery business and need guidance? So many still think the bakery business is all about bread. But the bakery entails much more than the production of bread.

According to Wikipedia, “a bakery is an establishment that produces and sells flour-based food baked in an oven such as bread, cookies, cakes, pastries, and pies.”

You can now see that the bakery business has many other facets apart from the bread production aspect. So, this article is going to look into the different bakery businesses that one can start. Read on!

READ: Creative Ideas To Name A Bakery

So, are you passionate about baking? Or have you ever wondered how you could turn your passion into tangible profits, then, this article is just for you. Here is how to make money selling baked goods from home .

Here is a sample business plan for starting a home-based bakery business.

• The Planning Stage

As with every other business, opening a bakery starts with proper planning, this planning includes areas such as knowing your niche. Here, niche means your area of specialty. This is crucial because having a particular specialty means that you will only have to bake only specific products.

Assessing your talents passion and also the budget at your disposal is very key in the decision-making process of starting a bakery business. It will do well to consider the type of bakery business you want to enter into. The following are some areas of the bakery business;

1. The Counter Service Bakery

Here, it means that the customer will have to walk into a bakery hall and pick up baked goods over the counter and pay for them. It is usually managed by an employee, and the goods are displayed behind the counter for customers to easily make choices on the products to buy. This is a very common type of bakery service.

2. The Sit-down Bakery Service

This is usually in the form of a diner where customers walk into and order any bakery product of their choice and enjoy either with friends or alone. Here, they do not need to carry the products home as convenient eateries are provided by the bakery where customers can comfortably enjoy their snacks. This is a growing trend in the bakery business world.

Cake Business

The cake business entails baking and selling varieties of cakes for different occasions. In Nigeria, cake making is a lucrative business because a lot of events and celebrations happen now and then.

And hardly is any of these events and celebrations complete without the cutting of a cake. So, if you are skilled at making a cake or you have an interest in it, you should consider starting a cake business.

• Decide if the Business is for You

The first step in starting a cake business is to determine whether you have an interest in it or not. Though the cake business is quite profitable, it requires some arduous processes that can make you easily give up if you are not passionate about it. So you have to decide if the cake business is for you or not.

• Are the Resources (Capital) Available? 

This is crucial to business success. Finance is necessary for the take-off of most businesses, especially a bakery business. Things like equipment, office space, furniture, payroll, and a host of other things need to be considered when opening a bakery business.

Someone with the interest of going into this line of business will have to ask him/herself if they are financially ready to commence business. It is never advisable to plan based on unavailable finance, hoping that when you begin with the little available, more money might later come.

Also, you will not immediately start expecting to benefit from profits. It takes some time for businesses to stabilize before you start reaping the profits. Hence, do you have enough finance to sustain you during the period of the infancy of your business? This has to be seriously considered before committing capital. Therefore, plan with capital at hand.

• Get Trained

To start the business, you need to get the necessary skill in cake making. I advise that you start small. Instead of starting with expensive training, you can start with low-cost training or you can self-train yourself by getting training resources online or watching youtube videos.

The idea of doing this is to test the waters and see if it is something that you can do. After the basic training, if you are still interested in the business, you can then take it further by getting advanced training.

After doing the basic training and getting the needed skills, the next thing you should do is to test run the business by launching it out in a small way. Start by intimating your friends and loved ones about your cake.

When you bake to make sure you reserve some extras to share with people around. If they like it, you can then market it to them. Offer free samples of your cakes for public events like fundraising events, church anniversaries, or birthday celebrations.

If your cakes are irresistible enough, people will approach you for business. Contact event planners and party organizers and send the free sample of your cakes to them so that they can help you get referrals.

Bake cupcakes in small batches and start marketing it a supermarket , provision stores, and fast foods. You can also leverage social media by sharing pictures of your cake. Also, try to get testimonials from people about your cakes and post them online.

From the response you got after doing all these, you can then determine whether to start the business on a large scale or not.

• Start the Business 

If you got a successful result after you have done a test run, the next thing to do is a feasibility study. Research about the requirements of setting up the business, research about the equipment and resources you will need. Most importantly, draw out a business plan.

All these enable you to rightly position your business. Armed with the necessary knowledge, you can then launch out.

Biscuits, cookies and pastries Business

This is another very profitable bakery business. In this era of busyness, a lot of people don’t have time to cook good meals and even sit down to eat. So they resort to quick fixes like biscuits, cookies, and pastries that they can eat on the go. You can start this business by following the processes I explained for the cake business.

Bread business

Bread is one of the popular staple foods. People love bread, because, unlike other foods, it does not require any preparation, it is also easily available and relatively affordable.

The recent increase in the price of rice and other foodstuffs has made the demand for bread increasingly high and this, in turn, has lead to an increase in the price of bread. So, if you are looking for a profitable business to do, you can try out the bread business.

• How to Start Bread Business

The first thing to do is to research the business procedures and most importantly the start-up cost . This will help you to determine if it is something worth your investment and time.

You can do this by getting resources online or volunteering to work in a standard bread bakery where you can get practical insights on how the business is done.

• Get the Skill

The next step is to learn how to make bread. You can do this by enrolling in a training institute or taking a bread-making course online and watching YouTube videos. Make sure you just don’t learn about the production aspect; make sure you learn about other important aspects such as marketing, packing, and branding.

Be open-minded and creative about what you are learning. Much more than what you are being taught by your instructors, learn further. Think about how you can produce better bread that will be more appealing than that of your competitors, think about better and more effective marketing strategies.

Research to create different bread recipes that will give you a unique selling point. Also, research, how to brand and package your products in a way that is unique and cost-effective. Doing this will make your bread business stand out and give you an edge as a new entrant in the industry.

• Create a Plan

A business plan is very vital to the efficient running of any business. This is because it enables you to properly document whatever is needed for the successful running of your business and also to keep records of happenings so that in-depth knowledge about the workings of the business and where improvements are needed are made properly utilized to further consolidate gains already made.

Creating a plan will help you to have foresight about the business. You can get free samples online that you can use as a template. Alternatively, you can hire a credible professional to help you draft one.

• Launch out your Business

Raise the capital required to start the business. Register your business. Find a suitable location for the business. This must be close to your target market. Get the basic and necessary equipment like industrial oven, baking pans, bread slicer, milling machines, mixer , etc. Get competent hands to work with you.

Start production. You can start by introducing different varieties of bread or just a single type of bread with a unique flavor that will be very appealing to the customers. This will make your product stand out.

If you are planning to start this business, you can choose from the different kinds of bakery businesses that I shared. It is a profitable choice that you won’t regret.

Is there Available Space?

This is needed to start a bakery business. If you do not want to start from home, then looking for commercial space has to be properly done. It also involves issues with licenses; an operating license is necessary to allow you to operate out of your kitchen

• How do you Handle Friends and Family?

This is a delicate situation, especially for those who had earlier enjoyed your free services. Having a friend and family policy in place to balance business with your relationships is very important.

Putting in place a discount policy for friends and family of say, 10% will sure do the trick. Making them realize the difference between what you do now and how you did previously will surely make them understand that you have a family to feed and a business to run, and no one is offended.

• Consider Getting Approval from the Food and Drug Control Agency

Getting approval from regulatory agencies in your country is a key factor in setting up a bakery business. Any serious entrepreneur should always make sure he does not cut corners as that will be breaking the law and possibly endangering the lives of his/her clients.

Because bakery products are consumables, the bakery has to be approved to have met the set standard for operation. When this happens, there is more faith by the customers in the products they are buying.

• Manage Discounts

Too many discounts can cause serious harm to your business. Before you decide how much discount you will like to use, you first have to know your profit margin, making sure that after putting in a discount, you still have the potential to make profits. This is because profits are the bedrock of any business establishment.

The above tips provided are very key in setting up any viable bakery business, as without these, the bakery business will not stand the test of time and meaningful proceeds from such a business will only be a mirage.

Businesses need a careful guidance system, from the period of planning to eventual implementation to ensure their survival, and these tips will greatly enhance your success as a potential baker.

BAKERY BUSINESS PLAN EXAMPLE

If you have decided to take that bold step to start your bakery, then the first thing you are probably thinking of is getting a business plan. This is where this article comes in. Below is a sample bakery business plan to guide you in writing yours.

• Executive Summary
• Vision Statement
• Mission Statement
• Products and Services
• Market analysis
• Target market
• Marketing Strategy
• Management Team

EXECUTIVE SUMMARY

Chums Bakery is a bakery located in the heart of New York City . Chums Bakery would offer its customers sit-down as well as delivery service of tasty desserts and other snacks.

Chums Bakery will offer New Yorkers innovative and tasty flavors that would be enticing and exciting with an image that is both fun and quirky.

At Chums Bakery, our customers’ taste buds will be our main focus as we will strive to offer different types of flavors that everyone would find their favorite at our bakery.

Chums bakery aims at reaching a level where we are at a prominent position in the baking industry by captivating the hearts of our customers through the reliability and healthy products we would offer.

VISION STATEMENT

At Chums Bakery, our vision is to create a bakery that is the leading bakery in America that offers high-quality baked goods and is the number one bakery that comes to mind whenever baked goods are mentioned.

MISSION STATEMENT

The mission of Chums Bakery is to take desserts to the next level that our products become an important part of every meal or just what you need to complete your day.

PRODUCTS AND SERVICES

At Chums Bakery, we are conversant with the fact that each of our customers would have different needs when it comes to their desserts or sweet tooth. We are also aware of the health requirements including allergies of customers.

This is why we have designed our products in a way that would as much as possible meet the needs of everyone who steps into our doors.

With this in mind, our products and services include the following;

• Cakes of different shapes and sizes • Cupcakes with a wide range of toppings • Doughnuts, pies, sandwiches, and rolls of different types and sizes • Bread in different sizes and other confectionaries • Soft drinks, coffee, and tea • Catering services for birthday parties, weddings, anniversaries, lunches, dinner parties, and every other occasion or event. • Supplying different restaurants with different types of desserts. • Delivery services. • Online order service within New York City

We will strive to ensure that our products will strive to be at their freshest any time of the day to satisfy our customers.

MARKET ANALYSIS

Baked goods have always been on the American diet for as long as time itself. Bakeries have been a booming business as baked goods have always been present in every occasion, restaurants, and even bars.

This business is one that was not too affected by the recession and only continues to grow each day contributing a great deal to the nation’s economy. Word of mouth, good and reliable customer service has always been the driving force of this business and coupled with great advertising it has great potential in the upcoming years.

TARGET MARKET

Baked goods and other confectionaries are consumed by all and sundry. Each age range usually comes with its preferences and that fact is not lost on us at Chums Bakery.

This is why we have designed our products to cut across a wide range of clients and our target market would include the following;

• School children. • Colleges and other educational institutions. • Offices. • Parks. • Restaurants and bars. • Hotels and Resorts

MARKETING STRATEGIES

At Chums Bakery, we are conscious of the fact that there exists stiff competition in the bakery industry, this is why we have developed different marketing strategies to help us find our place in this business while at the same time meeting our mission and vision to give our customers utmost satisfaction.

At Chums Bakery, the quality of our products and the sensational taste would announce us. In addition to this, the following marketing strategies would help us take our bakery business to higher levels;

• Use transparent doors and windows where we would showcase our products to attract customers. • Encourage our loyal and satisfied customers to partake in the word of mouth advertising by encouraging their friends and families to patronize us. • Organizing seminars and shows in our sit-down restaurant. • Partaking in local events to make our brand known. • Advertise on all social media channels and encourage feedback responses from satisfied customers. • Advertise our products on radio and tv stations as well in newspapers and magazines.

MANAGEMENT TEAM

Chums Bakery is owned and managed by Darl Kenneth who is also the chief baker. Darl has an undergraduate degree in Food Microbiology and an MSc. in quality control.

The management team consists of professionals who are well trained in the food industry and what it entails. There you have it, a bakery business plan sample to guide you in writing yours.

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