Bakery Business Plan Template
PandaTip: The beginning of an executive summary for a bakery should encompass the story of how you conceived the idea for your business and lay out the vitals – the name of the creator, the basic location at which it will be located, etc. It is just important that your reader comes away from the first paragraph knowing the most basic information about your business and if someone asked what you were doing, they could accurately answer that question in a sentence. Next, you should highlight what separates your bakery from other bakeries. Is there a certain design theme you will have amongst your baked goods? Do you specialize in gourmet cupcakes? Whatever it is you are doing to differentiate yourself and become a talking point for your potential clientele is going to be the most important detail of your business. Make sure it is well thought out and articulated within your business plan. Location is always important for a bakery but if you are going to be in a city, your location may be of particular importance as foot traffic can be a huge boon for your business. Thus, this should be at the forefront of your executive summary – for instance, will you benefit from patrons visiting restaurants in the area? Anything else you can think of that is relevant, put it in there. The goal of your executive summary is to paint a picture for your reader in a concise package.
Additionally, if you are looking for funding, you may want to place something similar to the following at the bottom:
In order to fulfill our vision we will require [AMOUNT] in capital, which will be allocated roughly according to the following table:
Use of Capital
If we are fully capitalized, we hope to be profitable by [TIME].
PandaTip: If you are looking to raise capital you need to justify what you are asking for, otherwise it is going to be difficult to raise what you need. Think it through and itemize exactly what you need. Be sure to make healthy estimates but stay within reality. The number one reason businesses fail is undercapitalization so this may be the most important analysis you make.
PandaTip: Who do you envision coming into your bakery? Is there a nearby college from which you hope to attract students? Are you hoping for spill-over from nearby coffee shops and restaurants? The possibilities are limitless, but get to know the town in which you are located and determine who is most likely to patronize a bakery. This is the starting point in formulating your marketing plan.
PandaTip: Depending where you open your bakery, there are a variety of possibilities for competitors. Your most obvious competitors will be local bakeries, but unless you are opening in a city, it is unlikely that there will be many in your area (or you should probably choose a different suburban location!). However, your greatest competition may be supermarkets, which typically have large bakery sections.
Our Specific Marketing Plan
PandaTip: Going back to the clientele you envisioned, picture who they are one more time and determine the best ways to reach them. Again, if they are college students, then you might consider a strategic partnership with an on-campus organization or offer to sponsor a small event for free. Other possibilities are even strategic partnerships with nearby restaurants, delis, or the like. Someone might want a cupcake with their sandwich so you could offer a discount after purchasing a sandwich from the local deli. Be creative!
PandaTip: A bakery, more than perhaps any other type of food-serving business, is judged by its presentation. Make sure you have someone decorating your baked goods with an eye for aesthetics. There is no better way to separate yourself from those you are competing with than out-presenting them. It’s not likely that the local supermarket is employing a 5-star pastry decorator. Convey this not just through your words, but also through pictures. Don’t be shy about including tantalizing images of your decorated baked goods.
More than sweets, you may also offer breads or even items such as calzones. You should include a paragraph about each category you will offer but the important takeaway here is that you are including pictures of your products, no matter what they are.
PandaTip: This is where you start to get into the details of running your business behind the scenes. You will need to explain how you are getting your supplies, for what positions you need to hire, and other expenses that you have projected.
PandaTip: Describe from whom you will be ordering supplies and the arrangements that you have in place. In addition, for those suppliers you will need that you have not contracted with at the time of writing your business plan (and that may very well be every single one of them), describe the type of arrangement you will seek.
PandaTip: Managing the day-to-day of a bakery is an important task that will require the efforts of several different people no matter what type of bakery you are running. Discuss in this section, the number and type of employees that you will need, including details such as how many people need to be working during peak hours and how many will need to work in down hours.
PandaTip: Your jurisdiction may require that certain licenses be required to operate a food service business. If you have acquired them, you should include those that you have purchased, but if you have not and have identified those you will need, include those here as well.
PandaTip: You should make an effort to lay out your projected expenses with something like:
We expect our monthly outlay of expenses to approximate to the following:
Type of Expense
This might be the most important part of your plan. You want to introduce to your reader the people behind the business. Include comprehensive profiles for your executive members (if you have any) - your President, Treasurer, Head Chef, etc – and your Board of Directors. These profiles should have some flavor as well, while it is certainly vital to include information like education and experience, don’t be afraid to toss in some personal details, hobbies, family life, etc. Potential investors are going to feel more of a connection to a business if the human element is prevalent.