How to Start a Bakery (with Business Plan)

Executive Summary

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

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

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

Why do you need a business plan for a bakery?

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

How to write your bakery’s executive summary?

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

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

A Funding Ask slide example for a bakery business plan (source)

Designed by experts, download our financial model and get your business funded.

Rated 4.6/5 from 5,900+ downloads

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.

Back to Top

What is a bakery business plan?

Simply put, a bakery business plan is a document that outlines the concept, mission statement, business goals, and financial projections of a company. This document can be thought of as a list of goals with added information about how the new company will achieve these goals.

Business plans are often used by companies to secure funding and loans to help them get started. The majority of banks and potential investors will ask for a copy of your bakery business plan as a requirement for investment.

Why is a bakery business plan important?

A well-thought-out business plan puts you in a position to get started quickly and effectively. While not all bakeries will take the time to write a bakery business plan, those who will effectively have a headstart over their competitors.

A business plan is also an opportunity to take an objective look at your concept before you put it into action. It can be easy to get swept away by the excitement of starting a new bakery business. Writing a bakery business plan gives you time to sit with your ideas and see what’s worth pursuing.

Writing a business plan allows you to work through starting your new bakery in stages and helps identify what steps you need to take. Building your bakery from the ground up requires difficult decisions, and your business plan will help guide you to the right choices.

Keeping track of what you need can also be overwhelming for new businesses. Business plans are essential lists of what needs doing and what you’ll need to do it. By continuously referring to your bakery business plan, you can stay on top of what needs to be done to get you over the finish line.

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.

Bakery business plan templates and examples

It might be helpful to explore how other bakeries, restaurants, and various eateries have set up their business plans. Check out our free library of example plans and templates for bakeries and related businesses. You can download any of these documents in Word form and get some scaffolding for your bakery business plan.

In addition to these bakery-specific resources, you may want to brush up on how to write specific pieces of a traditional business plan. If so, take a look at our holistic writeup on how to write a business plan.

Sales & Marketing

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

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

What marketing channels do bakeries use?

A few marketing channels that bakeries typically use are:

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

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

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

What is your unique selling proposition (USP)?

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

A few examples of USPs are:

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

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

Signage still is one of the most important marketing channels for bakeries

Frequently Asked Questions About Bakery Business Plan

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

What are Bakery Items?

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

How do you Manage a Small Bakery?

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

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

What are the Main Types of Bakeries?

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

The right POS system for your bakery

Now you have a real business plan in place, it’s time to invest in the best POS for a bakery. The Epos Now Complete Solution features everything you need to run a successful business including payment processing services, inventory management tools, and a suite of award-winning integrations.

If you’re interested in finding out more about Epos Now, get in touch with our expert team below.

Customer Analysis

The target market for your bakery, or the clients you will serve, is described in this area of your business plan.

Do you intend to target upcoming brides? Birthday celebrations for kids? Affluent households that often host private events with 500 or more guests?

Or do you mostly deal with walk-in clients? Even if you don’t run a business, you might still supply food to the neighborhood delis, supermarkets, and bodegas.

Undoubtedly, a bakery’s sales benefit from having a larger number of distribution outlets.

A bakery can increase the number of customers by supplying bread, bagels, cakes, pastries, and other products to restaurants.

Whatever target markets you cater to, make sure your business strategy outlines them in detail.

  • Specify each person’s demographics.
  • Are they both affluent men and women, for instance?
  • Do they attend a university?
  • Are they nearby eateries?
  • To understand their demands and provide better service, you must identify your target clients.

Include information on the demographic and psychographic characteristics of your target market along with specifics on how your bakery will cater to their demands.

How to write a bakery business plan

Sitting down to write a bakery business plan can seem scary at first. There are a lot of different factors when starting a business plan and you need to consider almost every aspect of your business. Some small businesses choose to hire a business consultant to write their plan for them. This is a perfectly normal thing to do, but sometimes these businesses do lose their own personal touch in the process.

While there is a lot of cover, writing a business plan isn’t that difficult as long as you have the right know-how. To help you start your baking business, we’ve put together a guide for everything you’ll need in your plan. Think of it as a set of “how to start a bakery

Cover page

This is the simplest section in your bakery business plan, but it will be the first thing any potential investors see. Your cover page should feature the name of your bakery business, your name as the founder, the names of your business partners (if any), and all your relevant contact information. You should also include your logo if you have one. A cover page isn’t mandatory, but it does give your business a sheen of respectability.

The first main section of your bakery business plan should be your executive summary. This section is a summary of your bakery business concept. In succinct terms, you should outline your budget, a description of your business, estimated startup costs, and target marketing strategy.

Your executive summary needs to reflect the kind of bakery you’re trying to create. For instance, a home bakery will have very different needs to a food truck bakery. This section in your bakery business plan should paint a picture of your business goals and how you’ll achieve them.

Since this is the first proper section of your plan, you need to write in an interesting and engaging way. This is how you will hook potential investors and get them excited about your bakery business. Your personal style and attitude is what will attract your target customers so try your best to get that across in this section.

Company overview

In many ways, a company overview is very similar to your executive summary. There are, however, key differences that set the two sections apart. Your company overview is concerned with the more practical aspects of your new business, while your first section was more focussed on the general concept.

In this section of your bakery business plan, you need to outline exactly what kind of business you’re running. There are many different types of bakeries, and it’s important to show your investors what their money is going towards. Are you planning a wholesale bakery or a bakery cafe? A specialty bakery that focuses on vegan baked goods? Your investors need to know.

Your company overview will also need to include information about ownership structure, company culture, operations plan, and customer experience journey. Essentially, all your practical information such as your intended location, employee management practices, and the food products you plan to sell needs to be in this section.

The company overview is also the last chance you have in your business plan to include any conceptual information. With this in mind, you may want to include your logo, color-scheme, and how you’ll try to create your intended ambience.

Team structure

The quality of your team is crucial to your success, as they’ll be helping you run your day-to-day operations. Bakeries require specialized staff with sector-specific knowledge. With the team structure section of your bakery business plan, you can lay out exactly who you’ll need to hire and where you’ll place them within the business to best utilize their talents.

Defining the hierarchy within your bakery business will help you build a healthy and supportive place to work. Your management team and staff should have a clear understanding of your expectations and the type of environment you want to encourage at the business. Home bakeries won’t have to worry too much about this section, as they are often staffed by a small team of one to two people.

This section is also used to define the roles of each employee throughout the business. The better staff understand their roles, the better they’ll be able to perform them. Ask yourself a few questions like: who will be in charge of your social media accounts? Will there be a division between the back and front of house? Will you do your marketing in-house?

Sample menu

This section is unique to businesses in the hospitality industry like bakeries. Your menu is very important as it is what will initially bring in your customer base. If you have a head baker, they should be brought in to help draft the menu.

Writing this section is simple. All you have to do is list your menu items and their proposed price. This will give potential investors an overview of what you plan to serve and how much you’ll be making on each item.

One of the benefits of drafting a sample menu is that it will give you a good indication of your monthly raw ingredients cost and the bakery equipment you’ll need such as a deck oven and measuring cups.

It will also prompt you to think about where you’re getting your supplies. Baking artisan breads can get very expensive and if you can find a wholesaler with a better deal on supplies, you should use them.

Market analysis

The bakery business is a competitive one and towns will often have multiple bakeries (not including the ones found in supermarkets). As part of your business plan, you should scout out bakeries in your area and get a better understanding of your local market.

Using market analysis, you can identify local niches that your bakery could fill. The market research you collect during this competitor analysis can then be used to formulate a strategy that will help you gain an edge over your competition.

The market analysis section in your bakery business plan should also include information about your pricing strategy. With your competitors’ information, you can build a strategy that allows you to properly price your items. If you want to beat out your competitors, you may decide to undercut their prices.

Marketing strategy

If new customers don’t know about your bakery, they simply won’t come and buy from you, no matter how good your product is! A good marketing plan brings in new people and turns them into repeat customers. The marketing strategy section in your business plan should be used to outline your unique selling points to your target market, and the marketing tactics you’ll use to entice them.

Many hospitality businesses, like bakeries, benefit from word of mouth to attract new customers. If your service is impeccable and your baked goods are delicious, your customers are more likely to tell their friends and family about you.

While word of mouth can be effective, it can be unreliable. Your marketing plan should focus on effective but affordable tactics. This includes social media marketing. This form of marketing gets your baked goods in front of potential customers straight on their account feed.

Business operations

In a well-run bakery, there are a hundred little jobs every day that need your attention. The business operations section in your business plan is focused on these day-to-day functions. This includes your customer service, your system, sales forecasting, accounting services, and supply chain management.

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:

Download Baker Smallwares Checklist PDF

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.

Get Ready to Launch

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

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

Streamline order management, grow your bottom line, and get back hours of your time with BlueCart. Schedule a demo now:

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.

Competitive Analysis

The direct and indirect rivals included in this area of your bakery business plan are described.

Other businesses that provide the same service to the same target market are considered direct competitors, with identical baked goods.

Those who meet different demands for the same target market or the same need for a different target market are your indirect competitors.

Identify each of your direct competitors in your strategy, give a brief description of them, and discuss how your bakery differs from theirs.

Finally, describe how you will stand out from the competition and your key competitive advantages.

The most prosperous bakery entrepreneurs identify items that no other nearby bakeries sell, such as a treat that is unique to your bakery and draws consumers in.

Additionally, based on the psychographics and demographics, you might succeed as the sole local bakery offering nut-free cakes or creating baked products that are vegan and gluten-free using organic and local ingredients.

Competitive pricing, location, management, relationships, consider everything and include them all in your bakery business plan.

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:

  • 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.
  • 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.

How To Write A Bakery Business Plan?

Before you start writing your business plan for your new Bakery shop, spend as much time as you can reading a sample bakery business plan template.

But do you know how to write an effective bakery business plan, that will help you with funding and other problems? If not, then worry not here is a bakery business plan example for you, which can guide you in your business plan expedition.

Bakery Business Plan Outline

It is the standard bakery business plan format, and it includes all the key components that your plan has to have.

Once you’ve begun using Upmetrics, you may transfer this sample business plan into your own and make the necessary changes. Without further ado let’s start with the bakery business plan.

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

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

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

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

8 Sections of a Bakery Business Plan

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

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

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

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

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

Tips for Writing a Bakery Executive Summary

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

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

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

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

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

Tips for Writing a Company Overview

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

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

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

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

Tips for Writing a Market Analysis

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

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

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

Tips for Writing your Business Offerings

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

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

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

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

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

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

Answer these questions when writing your marketing plan:

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

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

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

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

Outline the goals, concept, and target market for your bakery as well as how its distinctiveness will assure its success.

For instance, you can describe any unique qualities of your staff that can help in the expansion of your bakeries, such as outstanding customer service or attention to detail when making pastries for visitors.

The financial highlights of how you intend to spend any cash from possible investors will also be there in your presentation. You might spend money on the layout of your bakery, getting your first batch of supplies, or paying overhead costs.

Even though this part is crucial, keep it brief. Aim for 500 words or less to pique the reader’s interest and encourage them to read the rest of your business plan. For ideas, you may download our home bakery business plan pdf.

  • Business OverviewShowcase your vision in the business overview. Your location, what and how you will serve your customers, mention that all in this section. Mention the USPs of your bakery business.
  • Products & ServicesWhat will be your product range, and what type of ingredients you will use are all the concerns that should be mentioned here.
  • Customer FocusThe target audience for your bakery, from which street people will usually come, and what will be their taste, are all crucial criteria for this section.
  • Management TeamWho will be the leader of your bakery and what are his/her pros and experience which will help your bakery business to bloom are all the points to mention here.
  • Keys To SuccessWhat are the key points that differentiate your bakery business from others? And how efficiently you will serve customers is the main point to incorporate in the keys to the success of the executive summary.
  • Financial HighlightsFinancial highlights are basically your plan of how much capital you need at the initial stage and how you will use them. Calculate EBITA and net income to know and compare the results.

Are you looking for the exact sample? Then look no more and download our small bakery business plan sample pdf.

Financial Plan

You will concentrate on your bakery’s financial estimates in the final section of your business plan.

You’ll list the probable expenses for supplies, machinery, technology, bills, and wages needed to keep your bakery operating.

Costs could, for instance, include ingredients for pastries, such as flour, sugar, butter, and cream. Additionally, they could include tools for baking such as cake pans, stand mixers, rolling pins, and measuring cups.

Your financial analysis will also contain several other papers, including an income statement, a balance sheet, and a cash flow statement.

You will project how long it will take to turn a profit after detailing all of the costs associated with your bakery design, inventory, and other operating expenses.

To show investors how you may genuinely use their backing to build your business, make your numbers realistic.

A bakery business plan is the finest strategy to launch or expand your enterprise because it clarifies your company’s idea and pinpoints your target clientele.

Download our complete business plan for bakery pdf and start writing the business plan with Upmetrics.

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

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

There should be 2 sections to your financial plan section:

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

A) Startup Costs

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

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

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

B) Financial Projections

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

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

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

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

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

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

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

Source: Bakery financial model template

What to include in your bakery business plan

Your bakery business plan will adhere to the format of a traditional business plan. At the same time, you will need to include elements that a typical business plan lacks. This article walks you through each step of the business plan.

Every business plan needs an executive summary. Consider writing this section last so that you have a clear idea of your bakery first. The executive summary will summarize the key points of your plan. But remember to be concise and limit this section to 1-2 pages.

If you are hoping to secure financing from investors or the bank, this is the part of the business plan they will review.

Your executive summary will provide an overview of your bakery, a short description of your target market, and the main points of your management team and financials. You can also nod toward your market analysis.

Vision and Concept

In this section of the business plan, you will discuss your “problem and solution.” You can also think of this part as the vision and concept. What does your bakery offer that other eateries in the area don’t?

Briefly describe the type of bakery you will open, and the atmosphere you hope to create. Then discuss what niche it will fill in the market. Will you open the bakery to fill a need in an area with few food options? Or will you round out the offerings in a crowded mall or boulevard?

Obviously, you are in the business of baked goods. But will you specialize in certain types, such as doughnuts? Or will you appeal to a specific target market by including an array of vegan or gluten-free products? Or will you focus on ethnic baked goods, such as challah bread or egg tarts?

Describe why the items on your menu belong there. Will you take custom orders, such as making birthday cakes? Include that information as well. Draw a connection between your menu and your target market, which we go over later in this article.

Target Market

The target market section is an especially vital component of your business plan. Your target market is the kind of customers who will be drawn to your bakery. Your bakery will not be for everyone. You should focus on a specific set of people who will find value in what your bakery has to offer.

A bakery that uses ingredients from a local farmers’ market or is exclusively organic will draw one kind of target market. A bakery that keeps products on the cheaper side and focuses on grab-and-go might appeal to a target market of students.

Both your menu and pricing, as well as the overall atmosphere, will help you determine your target market. If you can, talk with your potential customers directly. Know the neighborhood where your bakery is opening.

The target market section of your business plan is at the heart of your success. Check out our article on all the details that can enhance this section for how you can enrich this section.

Design and Branding

When opening a bakery, take the time to consider the aesthetic of your space and marketing materials, as well as your brand in general. Signage and interior decorating can make your bakery eye-catching to potential customers.

These features also communicate what kind of bakery you are. Maybe you run an upscale bakery that offers specialty items such as tiramisu or baklava. Maybe it is more of a casual dining option with typical cookies and pastries.


Once again, location matters when it comes to bringing your target market into your bakery. A bakery should be accessible to people seeking food on the go. It’s unlikely that people will go out of the way to find your bakery, so make sure it is visible and has convenient parking.

A bakery could have a strategic location alongside other eateries. It could be a dessert spot for customers to visit after eating at a nearby pizzeria. Or it could complement a coffee shop that sells beverages but has a limited supply of pastries. Make sure surrounding shops and/or eateries are not direct competitors with your bakery. You might even want to consider how your location and the setup of the inside of your bakery can use smells to attract customers. Will passerby be hit by the scent of freshly baked bread from your windows or doorway in the mornings?

Also, consider the costs of your location. Will you rent or buy the space? Will you need to renovate it to add a counter, seating room, or kitchen space?

Marketing and PR

You will want to alert the world when your new bakery opens. Your PR and marketing will lay out how you plan to spread the word to your target market. You might want to create a website or online PDF of your menu. You’ll also want to create social media accounts to communicate directly with customers.

Marketing is tied to Public Relations (PR). This is what will be written about your bakery in local media such as newspapers or in online reviews. But don’t get too excited about generating press before you’re ready. You will want to make sure your business is up and running smoothly first. Work out any rough spots, such as having enough products available to meet demand throughout the day.

This section of the business plan should map out how you intend to handle marketing, the kind of advertising you will spend money on, and how you will approach PR. You can hire a PR consultant, but make sure you are aware of what kind of experience that person or company has with bakeries or similar businesses.

The final and very important part of your business plan will be the financial plan. Once again, the financial plan is a part of your business plan that will carry weight for potential investors. They will want to see projections and cash flow statements. The financial plan reassures them you have a plan in place to make money.

The financial plan consists of four elements: a sales forecast, income statement, cash flow statement, and a balance sheet. Don’t worry if you don’t have much experience working with these numbers. LivePlan is an example of a tool that can help you build accurate financial projections that you can adjust as needed as your business grows.

For further guidance on the financial statements, we’ve created this guide of what must go into your financial plan.

Management & People

You must address two things here:

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

A) Management

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

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

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

B) Organization Structure

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

An organizational chart example for a bakery

Marketing Plan

The four P’s of product, price, place, and promotion are the foundation of your bakery marketing plan, which details how you will enter your target market.

Your bakery marketing strategy should outline the four Ps as well as how you’ll keep current clients by using loyalty programs or other strategies.

Additionally, you should describe the layout and display of your store in this portion of your business plan, especially if you are a new retail bakery.

The storefront for your bakery needs to be created in a way that draws walk-in clients. Your advertising plan, sampling, public relations, and pricing strategy are all part of this section.

Industry Analysis

This section evaluates the market for bakeries and how your bakery fits into it. Use a successful technique to overcome any obstacles you uncover.

Remember that your market is not the entire market for baked goods as well. It is your specialization inside that market.

For instance, although the US baking sector generates more than $30 billion in revenue annually, your bakery will likely only account for a small portion of that sum based on your location, area of concentration, etc.

Decide on the precise goods and clients you intend to pursue and concentrate your study there.

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.

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

  • 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.

Leave a Reply

Your email address will not be published. Required fields are marked *