Bakery Business Plan Template
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
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How to Start a Bakery (with Business Plan)
Whether you dream of opening a donut shop or a boulangerie, starting a bakery allows you to serve niche markets and express culinary creativity without taking on the financial burden of opening a restaurant. You can even start your bakery business from home before investing in a commercial space. While bakeries are comparatively accessible foodservice businesses, they present unique challenges. From writing a bakery business plan to getting funding and filing for permits, we walk you through each step of opening a bakery.
- Choose Your Bakery Style
- Write a Bakery Business Plan
- Get Startup Loans
- Lease a Bakery Location
- Bakery Permits and Licenses
- Order Bakery Equipment
- Design a Bakery Layout
- Hire Bakery Staff
- Advertise Your Bakery
- Host a Bakery Grand Opening
How to Start a Baking Business
Whether you're passionate about creating decoratively frosted cakes or artisan sourdough loaves , you must create an action plan for turning your passion for baking into a business. Discover the steps of opening a bakery below.
1. Choose a Bakery Style
While there are many bakery business models , they all fall under one of two umbrella categories: retail and wholesale. Retail and wholesale bakeries make similar products, but they have different needs and customer bases.
Opening and Operating a Retail Bakery
Retail bakeries are the most common type of bakery; they sell baked goods and loaves of bread directly to customers. Retail bakeries come in many different forms, and they often specialize in a particular type of baked good. They require both front- and back-of-house space.
Types of Retail Bakeries
Discover the most popular retail bakery business models below:
- Bakery Cafe - This type of bakery is a combination of a bakery and cafe, and they typically sell baked goods like bread, pastries, and cookies. They also pair their baked goods with coffee and tea. Bakery cafes typically have a dining space where customers can sit and eat.
- Counter Service - While counter service bakeries have a front-of-house, most do not have a dining space. Instead, they have a counter where guests can order freshly baked goods to take home.
- Bakery Food Trucks - Rather than using a brick-and-mortar store, food truck bakeries sell their products from a mobile truck. Due to the small space, many bakery food trucks do not bake in their truck, instead opting to bake their products ahead of time in a commissary kitchen or home bakery.
- Specialty Bakeries - A specialty bakery typically focuses on one type of baked good, such as wedding cakes, cupcakes, or gluten-free items . This type of bakery can excel because they offer niche products that customers either cannot find elsewhere or that are better than the products offered at less-specialized bakeries.
- Home Bakeries - This type of bakery is becoming more common, especially because you don't need a lot of startup capital or culinary experience to open a home bakery. Home bakeries typically market their products online and then ship them to customers . Many home bakeries are also very niche or offer twists on classic baked goods.
Opening and Operating a Wholesale Bakery
The other main type of bakery is a wholesale bakery. Rather than selling their products directly to customers, wholesale bakeries market their baked goods to businesses like grocery stores, restaurants, delis, and cafes.
Because wholesale bakeries have to meet the demands of commercial customers, they are typically larger than retail bakeries. Wholesale bakeries don't need to have a front-of-house or a desirable, high-traffic location. However, wholesale bakeries must produce high volumes of baked goods. This requires a large space and lots of baking equipment, resulting in higher startup costs.
2. Write a Bakery Business Plan
The first step in opening your new establishment should be to write a bakery business plan . The business plan is an integral part of starting a bakery business because it lays out what type of bakery you want to open, how it's going to be structured, what sort of products you're going to sell, marketing strategies, and financial projections. There are seven main sections to a bakery business plan:
- Executive Summary
- Company Overview and Description
- Market Analysis
- Business Offerings
- Management Plan and Ownership Structure
- Marketing and Advertising Strategy
- Financial Projections
Your business plan serves as the foundation for your business, and a strong plan can help you get funding and make the process of opening a new bakery easy.
3. Obtain Loans and Startup Capital
When starting a bakery, there are many costs that you'll need to consider, such as leasing a commercial space, getting insurance, outfitting your space with equipment, hiring and training staff, stocking your kitchen, and paying for utilities. As a result, you'll need to have a significant amount of money available to cover these costs. Additionally, it may take a few months after opening for your bakery to become profitable, so you'll need cash on hand to cover costs for several months after opening.
If you’re wondering how to open a bakery with no money, you'll need to take out loans . There are three common ways business owners get funding: commercial loans, business lines of credit, and small business loans.
- Traditional Commercial Loan - You can apply for a traditional commercial loan at any major or local bank. This type of loan has lower interest rates and provides access to large amounts of capital. However, it requires you to have a high credit score. You may have to wait for months to access the money.
- Business Line of Credit - A line of credit is similar to a credit card. You get approved to use up to a certain amount, but you're only charged for the amount you use. Additionally, as you pay off the balance, you can access more credit. But, a line of credit doesn't allow you to access as much money as other loan types and requires a higher lending standard.
- Small Business Loan - Created by the Small Business Association, a small business loan is a type of loan that aims to protect small businesses and provide them with startup capital. Small business loans typically have lower interest rates and are available to people with borderline credit. They require collateral and may take longer to be approved than other loan types.
Cost to Open a Bakery
Bakery startup costs range between $10,000 and $50,000. The vast startup cost price range reflects the diverse array of bakeries. How much money you need to start a bakery depends on its location, equipment, staffing requirements, and menu items.
4. Lease a Commercial Bakery Space
Once you've secured funding, you can start looking for a commercial space for your bakery. The type of commercial space you need depends on the type of bakery you're opening. For example, if you're opening a food truck bakery, you'll need to purchase the truck and you may want to look into renting space in a commissary kitchen.
Retail bakeries will want to look for a space in a central location close to their target demographic that also has a front-of-house area. Because wholesale bakeries sell their products to businesses rather than customers, they can be located farther from the city center or populated areas.
Best Place to Open a Bakery
The best place to open a bakery is at an accessible location near your suppliers and your target demographic. Regardless of the type of bakery you're opening, there are universal considerations for where you start your bakery business. Consider the following in your bakery location analysis:
- Demographics
- Accessibility
- Proximity to Suppliers
- Competition
- Size and Space Requirements
- Health Regulations and Zoning
- Safety and Crime Rates
Once you've found a suitable location for your business, you can hire a lawyer to draw up and negotiate a lease with the landlord . To protect yourself from any potential issues when negotiating a lease, be sure to specify the length of the lease, any raises in rent that might be included, who will pay for potential renovations, and any utilities that are covered.
5. Obtain Bakery Licenses and Permits
The foodservice industry is heavily regulated on a federal, state, and local level, and there are some bakery licenses and permits you need to start your baking business. The types of permits you'll need will vary depending on your location, so be sure to check your local laws and regulations to see if there are any specific laws that apply to your new business.
6. Order Bakery Equipment
The equipment that your bakery will need depends on what type of baked goods you will be preparing. For example, you may need specific pastry supplies to create French pastries . While the specific equipment may change depending on the size and type of your bakery, there are several purposes you need to fill:
- Dough Preparation - This includes equipment like commercial mixers, work tables for kneading, dough dividers, dough sheeters, and dough scales. You may also need holding cabinets, proofing cabinets, retarder/proofer combos, and refrigerators to prepare your dough .
- Storage - Storage is important for keeping your kitchen organized. Your bakery will require shelving and storage racks. If you're working with bulky bags of flour and sugar, you should invest in trucks, dollies, and carts to move large bags around your kitchen.
- Baking Equipment - Convection ovens are a great all-purpose piece of bakery equipment because they provide dry heat and bake evenly. If you're preparing a lot of artisan bread, you may want to choose a deck oven to give your products a crispy base. Wholesale bakeries may be looking for high-output ovens, such as roll-in rack ovens or revolving ovens.
- Display and Sales Equipment - Choosing the right display cases for your baked goods can help boost your sales. You can choose self-service or full-service cases, and there are refrigerated and unrefrigerated options, depending on your needs. In addition to your display cases, be sure to also choose stylish boxes and packaging for your baked goods.
- Cleaning and Warewashing Supplies - A 3-compartment sink is the centerpiece of any cleaning station. You must also order hand washing stations for your employees, disposable gloves, cleaning chemicals, sponges, scrubbers, and other essential cleaning items.
Bakery Smallwares
In addition to your large equipment, you must stock your bakery with smallwares, such as mixing bowls, storage boxes, whisks, bread knives, and aprons. We compiled a list of essential bakery equipment to ensure you don't forget anything.
You can download the opening a bakery checklist PDF below:
7. Layout Your Bakery
After securing a location and deciding what equipment is needed to start your new bakery, you can plan your bakery kitchen organization. If your bakery has a front-of-house area, you will need to design a floor plan. Learn how to lay out your bakery kitchen and storefront below.
Commercial Bakery Kitchen Layout
Every bakery kitchen requires four sections: cleaning, storage, food preparation, and meal cooking. Bakery cafes and bakeries with a front-of-house area will also have a service station, where they deliver food to customers. The ideal bakery kitchen layout is determined by the space and the placement of water and gas lines. Organize your bakery kitchen so the four sections flow together and measure your space to make sure you have enough room for your bakery equipment before finalizing your kitchen plan.
You will want to lay out your kitchen based on the logical flow of food through the baking process. This starts with the storage area and then goes to the food preparation and meal cooking sections. Once you’ve prepared your baked goods, you can serve them to your customers, package them for display, or ship them to online customers. Finally, your dirty dishes, pots, and pans will end up at the cleaning station.
Commercial Bakery Storefront Layout
Some bakeries will have a front-of-house area where customers can browse their selection of baked goods. Optimizing your bakery floor plan for ideal product placement and customer comfort prompts purchases.
Bakery Layout
There are four main bakery layouts, each with its own unique benefits.
- Straight Bakery Floor Plan - Your bakery display cases are organized in straight lines to make it easy for customers to browse.
- Angular Bakery Floor Plan - This floor plan uses curved displays to create an upscale presentation.
- Diagonal Bakery Floor Plan - A diagonal floor plan allows customers to flow through your bakery.
- Mixed Bakery Floor Plan - Maximize your space by using a combination of all the bakery floor plans.
8. Hire and Train Bakery Staff
The size of your staff will depend on the scale and style of your bakery. A locally owned and operated bakery with just one location is likely to have a short chain of command. Retail bakeries must hire and train front-of-house staff to take orders and work the cash register. However, most of your bakery staff will work in the back-of-house, preparing your baked goods.
Your bakery should have at least one or two employees that have formal training or bakery experience to oversee the actual baking process. You may also want to hire unskilled workers for washing dishes, mixing ingredients, packaging products, and doing other tasks that don't require previous experience or expertise.
Some bakeries will also need professional pastry chefs and personnel to complete delicate and specialized tasks. For example, bakeries that bake wedding cakes should look for experienced cake decorators. Bakeries that offer artisan breads should consider hiring someone who specializes in bread baking.
9. Market and Advertise Your Bakery
Before you open your bakery to the public, you must conduct some marketing and advertising campaigns to get the word out and create buzz. You can break your bakery marketing strategy into five general steps:
- Conduct market research. The first step in a marketing campaign is to conduct market research and determine your target market. This includes information like the demographics around your bakery, any competitors, and niche markets you can fill. Once you have an idea about who your target market is, you can develop strategies for attracting them.
- Write a market analysis. Your market analysis is a summary of your market research, and it should go in your bakery's business plan. It should include information such as the average income level in your area, discretionary spending among your target market, and your competitor's prices.
- Set goals for your marketing campaign. Create realistic goals for your bakery and its marketing and advertising campaign. For example, set goals for how many followers you want to gain on your social media accounts and how many sales you want to get in a month.
- Determine how you want to advertise your business. There are many ways you can advertise your bakery and each has its benefits. If you're in an urban area, using signs is a great and affordable option. Consider traditional advertising tactics, such as newspaper advertisements and flyers.
- Create a social media presence. Social media marketing is a great way to interact with your customers, create buzz, and advertise your grand opening and other events. Additionally, many people will look for your bakery's website and social media accounts before deciding if they want to visit, so make sure that you have an active online presence.
Many of these tactics apply to retail bakeries, but marketing tactics differ for wholesale bakeries. Wholesale bakeries should focus on competitor analysis and research where local restaurants and grocery stores source their baked goods. Then, they can reach out and try to make a deal.
10. Host a Grand Opening
The final step in opening a bakery is to host your grand opening and welcome customers to your business. A successful grand opening can get your new bakery off to a good start and help generate loyal customers. You should advertise your grand opening to create interest and alert your target audience that your bakery is open for business.
One great way to get customers in your bakery for your grand opening is to offer discounts and specials. For example, you can offer discounts for the first 100 people to visit. Another option is to give customers who order a dozen cupcakes one cupcake for free. You can also offer free samples to encourage customers to make purchases and expose them to more of your products.
Do You Need a Culinary Degree to Open a Bakery?
You don’t have to have a culinary degree or a bachelor’s degree in business to own a bakery. However, having hands-on experience or academic knowledge of both the baking and business management aspects of owning a bakery will help you succeed. Having a formal education may help you attract investors and banks to garner the startup capital you need to open your bakery. Consider getting a certification from the Retail Bakers of America (RBA). The RBA certification verifies your knowledge, skills, and abilities without the hefty time and financial commitment of culinary school.
Starting a bakery presents unique opportunities and challenges from starting a traditional restaurant. Creating a detailed business plan, following it precisely, and keeping your documents organized will help get your business off to a good start. Reference back to our guide to ensure your bakery launch goes smoothly.
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Types of Donuts
Before you can start a donut shop , you must choose the types of donuts you want to offer. By definition, donuts are small, fried, sweetened dough cakes, typically shaped into a ring or ball. You can classify the many cultural and regional donut varieties within one of 10 distinct types. We’ve created a guide to help you understand each donut category and expose you to the varieties they contain. From international delicacies to standard donut shop fare, feast your eyes on a wide selection of donuts. We've also provided a printable donut infographic below for easy reference. Shop All Donut Shop Equipment Donut or Doughnut? Doughnut is the original spelling used to describe America’s favorite baked good , whereas donut is an abbreviation. Mo
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Do you have a knack for baking? Special bread or dessert recipes that your friends and family are always chatting excitedly about? Ever wanted to open your own bakery but just don’t know where to start? Check out these sample bakery business plans and get inspired to start building your own bakery today.
If you’re looking to develop a more modern business plan, we recommend you try LivePlan . It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan.
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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 Start Your Bakery Plan Here Bakery Business Plan You’ve come to the right place to create your bakery’s business plan.
Plan your bakery. With Michelle and Barbara’s help, let’s get the planning process started. 1. Select the kind of bakery you’d like to open. One of the first decisions you’ll have to make is the kind of shop you want to open. To do this, you’ll want to assess your talents, budget, and goals.
3+ Cake Shop Business Plan Examples 1. Cake Shop Business Plan Template Details File Format MS Word Google Docs Pages PDF Size: Download 2. Standard Cake Shop Business Plan business.umt.edu Details File Format PDF Size: 2 MB Download 3. Cake and Bakes Shop Business Plan nawbosa.org Details File Format PDF Size: 211 KB Download 4.
Check out these sample bakery business plans and get inspired to start building your own bakery today. If you’re looking to develop a more modern business plan, we recommend you try LivePlan. It contains the same templates and information you see here, but with additional guidance to help you develop the perfect 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.