Opening a Bakery?
How to Write a Bakery Business Plan (FAST)
Step by Step
Think you are the next great baker? Well, you’ll need a business plan! That’s why we have put together a detailed Bakery Business Plan example for you to take ideas from.
There’s only one thing whose aroma is sweeter than the cakes you’ve baked or the bread you’ve made… and that’s the smell of a successful business!
If you want to get baking with this business plan…
#1 Bakery Business Plan
Sample – Executive Summary Section
The Executive Summary section of your business plan outlines what your business does. It summarizes the company’s key points and introduces the rest of the business plan content.
The Executive Summary is incredibly important because it might be the only section a busy person reads; so it should always include:
- Who the company is – In the Company section of the executive summary, we’ve talked about the key staff member and the expertise and experience he brings to the table, as well as the proposed project and the opportunities it will bring to the local area.
- What we sell – What the problem is and how The Bakery Company plans to solve the problem.
- Target Market – Who your customers are going to be.
So, if you’re looking at starting a bakery business or simply looking for a cake shop business plan, this guide will give you all the ideas you need to write a complete business plan for bakery products.
Check it out and feel free to lift anything you want.
Who We Are
The Bakery Company is a cake and sugar sculpture company based in Chicago. Owned and run by innovative baking and sugarcraft entrepreneur Ali Baker, the company offers a wide range of products and services to a broad client base. Ali is looking to develop more products in her range, and to introduce these into retail outlets and other suppliers nationwide. She also plans to take the entire brand nationwide over the next few years, and is seeking investment to help her do this.
What We Sell
In addition to couture cake designs, The Bakery Company offers a wide range of delicious and innovative products that are unique to the brand – and which are currently not being offered elsewhere in the region. There are other cake companies in the region, but Ali is looking at ways to diversify so that her brand stands out. One of these ways is to specialize in unique sugar sculpting designs that offer a lifelike effect, rather than the cute and cartoon-based offerings of her competitors. This approach has been a real success with clients, and more and more orders are been received thanks to this innovative approach to sugar sculpting.
The Bakery Company also offers baking and sugarcraft workshops for adults and children – and these are proving a real hit, especially given the appeal of baking right now thanks to the many bakery shows on TV.
Who We Sell To
The Bakery Company has a broad and very diverse range of clients. This really is a company that has something for everybody and which appeals to all ages.
From the bride and groom looking for a stunning bespoke couture wedding cake to the stressed parent looking for a unique and fun party idea for their child, Bakery Company can offer it all. Corporate clients also make up a large part of the client base, and Ali is exploring more services to offer corporate clients, such as sugarcraft workshops as teambuilding events.
From a product perspective, The Bakery Company’s Pick ‘n’ Mix Brownies make up a large proportion of sales, and are always sold out at wedding fairs and other marketing events. This is an area that Ali would really like to push out to mass market, and which has real potential to be taken on board by retailers nationwide.
#2 Bakery Business Plan
Company Profile Section
The Company Profile section in this small bakery business plan sample can also be identified as your Company Description.
If it’s well written, your potential investors will find easy to understand your business model, your mission and goals, and how it’s going to meet the needs of your target market.
So whether it’s a cupcake business plan, an online bakery business plan, or pastry shop business plan you’re after, we hope you find the following information useful.
For the purpose of this business plan, we’ve included the following:
- The Company and Management Team
- Location and Facilities
- Mission Statement
The Bakery Company was launched in 2014 by Ali Baker. The company is run from Ali’s home and there are currently no other locations in operation, although venues have been hired in the past for various workshops.
The address of the business is: Ali’s House, Chicago, USA.
The business is currently operating from a home kitchen and office, and is owned and run by Ali Baker. Ali is the sole Managing Director, but there are plans to employ more staff as the business grows.
Ali is currently the sole member of the management team at The Bakery Company, and is responsible for all business operations. As a highly skilled professional, she is passionate about the business and in building a household name that is synonymous with innovation, quality and creative flair.
Ali has a deep interest in the science behind baking and sugar sculpture, as well as the art of baking. Her expertise as a patisserie professional, sugar artist, chocolatier, chef and food writer, has helped her get the company noticed and build a strong reputation. She also ensures she keeps up to date with the latest food industry trends so that she can stay ahead of her competition and meet market needs.
Creativity is strong at The Bakery Company, and assistance may be needed from a marketing and business growth perspective. Ali is hoping that any potential investor will be able to act as a mentor and give advice on how best to move the business forward.
As the business grows, Ali will be looking to recruit more staff.
Locations and Facilities
At present, The Bakery Company operates solely from Ali’s home kitchen and office. This works well at present, and also saves on costs associated with renting accommodation. However, as the business grows, alternative accommodation will be sought. This may be in the form of a dedicated business premises, or the company may look to secure space within hospitality venues such as hotels.
Tagline: Mouthwatering masterpieces enrapturing palates and capturing the imagination.
Mission Statement: A passion for creativity and innovation is at the heart of everything we do here at The Bakery Company. Our mission is to provide our customers with uniquely designed, lovingly crafted cakes for all of life’s celebrations. Our artisans are dedicated to providing a simple, friendly and affordable way to order cakes, learn new skills and enjoy delicious handmade treats. From the gloriously traditional to the utterly mindblowing, there is no limit to our creativity and commitment.
The Bakery Company first opened its oven doors in 2014, and since then owner and entrepreneur, Ali Baker has taken the company from strength to strength. What started out as a casual home business supplying cakes to friends, has now grown to a thriving business supplying services and products to a wealth of different clients including brides, parents, children and corporate clients.
The company is operated from, and has always been operated from Ali’s home, but once the company grows, the plan will be to move to larger, permanent premises. At present, with the current volume of orders, the home kitchen and office set up is sufficient, not to mention cost effective.
Since The Bakery Company first started, more products and services have been added, including:
- Wedding cakes Celebration cakes Corporate cakes
- Cupcakes and Pick ‘n’ Mix Brownies
- Sugar Sculpture workshops for adults and children
Ali has also invested in good quality branding and design for the company, and this will really help the company to stand out and attract attention.
#3 Bakery Business Plan
Products & Services Section
The Products and Services section needs to be much more than simply a list of what your new business is going to provide.
This is especially important if you’re looking to get funding; so make sure that you showcase the value, the quality, and the benefits of your business.
- What sets you apart from your competitors?
- Why would people buy from you as opposed to your competitors?
Here’s the example.
Products and Services
Products and Services
The Bakery Company produces a wide range of homemade, hand crafted and bespoke products, and runs a number of workshops for children and adults. Below is a detailed summary of each product and service, and the benefits it provides to customers.
Bakery and Sugar Confectionery
- Celebration Cakes
- Wedding Cakes including Bakery Company Signature Cakes and Tiered Wedding Couture Cake Sculptures
- Pick ‘n’ Mix Brownie Bites (sold by the bag) Triple Chocolate Brownie Bites (sold by the bag)
- Double Chocolate Chip Brownie Slab (sold by the bag) Big Bonkers Brownie (sold by the bag and box)
Pick ‘n’ Mix Wedding Brownie Bars
- Wonka Wedding Bar – A great way to keep the children amused at weddings. Everything is supplied including a Willy Wonka style cart serving scrumptious brownie bites, four sweet options, and one topping sauce.
- Cake Cocktail Bar – Who says kids get all the fun? The cake cocktail bar offers guests six different candy/chocolate shard options, two toppings, and The Bakery Company’s delicious gluten-free brownie.
The Bakery Company Workshops
- Children’s Cake Decorating And Sugar Workshops – What a great alternative for a children’s’ birthday party! The Bakery Company supplies all the fun, and each child gets to take home their wonderful creations as well as the obligatory party bag and their own Bakery Company character.
- Adult Sugar Sculpture Workshops – At the sugar sculpture workshops, The Bakery Company shares techniques and useful tips on how to make life-like cake.
The baking and confectionery industries are fiercely competitive, and right now even more so thanks to the baking revolution that has taken the US by storm. Ali is very aware of the competition in the marketplace which is why she has taken her brand in a completely different direction, offering customers something unique and not available from any of her competitors.
Her lifelike sugar sculptures are extremely popular with customers looking for an alternative to cute or cartoon-like character sculptures. As a result, Ali is earning quite a reputation for this style, and plans to develop this technique further. Flavor is something else that really stands out, and Ali experiments with many exciting flavor combinations to give her clients the wow factor and a unique twist on more traditional options. All products are made at home using the freshest ingredients that are selected from local suppliers wherever possible.
The company also offers a gluten-free range which Ali is very passionate about, being gluten-free herself. She has worked hard to develop a gluten-free cake that doesn’t compromise on taste or texture – a common problem with other gluten-free products.
Product & Service Development
Product development is something very close to Ali’s heart, and she will be looking to develop more innovative and creative products in the future.
A new website will also be launched shortly and will detail all products currently available. Customers will be able to place orders, make bookings and send enquiries.
Sourcing and Fulfillment
The Bakery Company uses a number of suppliers that are used on a regular basis. There is no agreement in place with one supplier. Due to the variety of products that are required by the business, it would be quite difficult to source from one supplier. However, Ali does review price points to ensure she is getting ingredients and sundry items at a competitive price, and many items are bought at wholesale price.
The company relies on the skills of Ali Baker to carry the brand forward and provide products and services. At present the only technology in use is a home computer on which invoicing, social media updates and other administrative business tasks are carried out. The company will also rely on a website and social media channels to attract new business and connect with customers and followers.
The Bakery Company is in the process of being trademarked.
#4 Bakery Business
Situation & Market Analysis Section
This section of a business plan is very often glossed over because more often than not, the business owner is so involved within their business, that it doesn’t occur to them that they can learn something by writing this down!
This section is one of the most important aspects of your Bakery marketing plan.
In fact, it defines where you currently are in terms of your market, product, customers, and competition. It also allows you to look at both internal and external factors and to review and document the strengths and weaknesses of your business, as well as identifying any opportunities and threats within your marketplace.
It can include:
- Market Overview
- Market Needs
- Market Trends
- Market Growth
- Industry Analysis
- Key Customers
- SWOT analysis
Here’s our example.
One of the great things about The Bakery Company is that it really offers something for everyone. Ali has really taken the time to think her target market through, and there is no demographic she has left out.
Catering for all ages from 4 upwards, the company targets and sells to mostly women, but appeals to anybody looking for unique cakes, a fun twist, or an enriching learning experience.
While the younger generation love children’s cakes, cupcakes, pick ‘n’ mix brownies and the brownie bar, older customers are more interested in sophisticated cake creations, cakes for corporate events and learning how to make their own stunning cakes and sculptures at home.
Cake couture trends are very much affected in the same way as fashion couture trends. Right now, hand painted cakes are very much the “in” thing, but this will change in time. Ali prides herself on keeping up with the latest trends, and of course catering to the unique needs of her target audience.
The Bakery Company solves a wide range of problems that customers experience. Here are just some of those solutions:
- Customers often lack the skills and time to create a cake to the same high standards of a professional couture cake. For that reason, they will approach The Bakery Company for a bespoke design that is sophisticated, authentic and which they would be able to find anywhere else.
- Creativity and innovation is very strong within the company, and everything produced is a unique design. Ali does not offer basic, “off the shelf” style cakes and instead focuses on the extraordinary and ground breaking.
- The company produces some of the best gluten-free products. Being gluten-free herself, Ali has mastered the perfect recipe without compromising on taste or texture. This is a huge market to leverage and more products will be introduced as the company expands.
- Workshops are offered at an extremely high standard and structured to make people believe that anything is possible with a little imagination and time.
Other similar companies in the region simply aren’t offering this bespoke, high-quality service or such a diverse range of innovative products. Consumers are always looking for that little something extra that is going to make their event stand out from the crowd and be remembered for all the right reasons. It is these little innovative details that Ali strives to offer.
As mentioned previously in the business plan, this is an industry that never stays the same, and trends are driven very much by consumer demand. As a result, Ali constantly reviews and evaluates the products and services she offers to ensure she stays ahead of the competition and provides what her customers want.
In order to keep up with the latest market trends, she has also signed up with a number of newsletters from industry leaders and innovators and has joined a number of organizations including The Chicago Weddings consortium, The Sugar Craft Guild, Cake Decor and Made in Chicago. These organizations often hold local and national events at which The Bakery Company can exhibit.
Social media can also often highlight shifts in market trends and a close eye will be kept on the company’s social media channels to see what people are talking about, and what is hot right now.
Celebration cakes have been an integral part of Western life since the 19th century. Today, no party or wedding would be complete without a stunning baked creation taking center stage. Since hit TV show, ‘The Chicago Bake Off’ aired in 2012, the US has been taken over by something of a baking revelation, and this is great news for businesses like The Bakery Company. Ali wants to take this baking fever one step further, offering customers sophisticated and innovative cakes that are one-of-a-kind couture creations, and something that simply cannot be found elsewhere.
Consumers no longer want supermarket birthday cakes, or a traditional wedding cake. Today, it is about the wow factor and creating cakes that are showstoppers all on their own. It is this passion that The Bakery Company wants to promote, in both its products and its workshops, as well as showing that the only limit is the imagination when it comes to creating a stunning cake, brownie or sugar sculpture.
The Bakery Company spans a number of different industries, including hospitality, wedding supplies, catering, and art and education.
Reputation is extremely important for the company as many orders will be placed through word of mouth and repeat business. The website will also play a big part in the marketing strategy of the business as will social media and competition entries. Ali has already taken part in a number of competitions, and plans to enter more in the future as this is great exposure for the brand.
Buying decisions will also be very much visually led, and it is therefore important that the business focuses on showcasing products in the most professional and detailed way possible. Professional photography and graphic design will therefore be very important for the marketing process.
As mentioned previously, key customers for the business will span all age groups, and will come from all walks of life. Below are details of each consumer group, and how the company plans to market to these individuals.
Parents and Children
The company offers a range of products and services aimed at parents and children. Birthday parties, brownie bars and workshops are just some of the options available.
Every wedding needs a cake, and that cake should be a Bakery Company cake. The company offers a fully bespoke service, plus a range of economically priced, high-quality wedding cakes for couples on a budget.
Corporate Event Planners
The company will target corporate clients to take up products and services such as celebration cakes, the brownie bar – and also workshops as the perfect team-building event.
All parties deserve a splendid celebration cake. From birthdays to anniversaries and graduations to retirement parties, the Bakery Company can provide beautiful bespoke cakes of the very highest standard.
Passion, innovation and creativity are at the heart of the business, and this shows in every product and service the company offers. Unique baked products are often hard to find, and Ali focuses on offering customers life-like sculptures, stunning cakes and techniques they may have not seen before. She is also very enthusiastic to pass on her skills to others, so that they can enjoy the thrill and pride of making something absolutely fantastic for themselves.
She has also taken the time to create a gluten-free cake and brownie recipe that tastes amazing: many recipes lack the right taste and texture, and this was a problem Ali was very committed to solving. The gluten-free market is huge, and with the right marketing and approach, it is a market that could really be capitalized on.
Ali has also invested in the best equipment and in herself by taking a number of highly sought after and respected training courses.
The Bakery Company doesn’t make “cheap” or “boring” cakes. They focus on the extraordinary and unique, rather than run of the mill cakes that can be found elsewhere. In doing so, there is a slight risk of turning potential customers away, but Ali believes this will only serve to strengthen her brand and reputation as a high-class, fairly-priced cake couture company.
The Bakery Company is new in a very competitive industry. They need to ensure they stand out, and continue to develop the brand.
There are many opportunities open to the brand thanks to the many services and products they supply.
Ali would like to explore working with organizations such as hotels and retail stores, and feel that the brand will really appeal to the mass market, especially the Pick ‘n’ Mix Brownie selection. She will also keep a close eye on her competitors to identify any gaps in the market and customer needs that she can fulfil.
The Bakery Company’s biggest threat is the competition. Ali must ensure that the company continues to keep high standards and build its reputation as one of the best couture baking companies around.
#5 Bakery Business
Marketing Strategy & Implementation Section
The marketing strategy section of your business plan describes who your customers are going to be and how you plan to communicate to them the services or goods you are offering.
If your potential customers are not made aware of your business, you are not going to stay in business for very long!
Defining a marketing strategy in your business plan highlights your understanding and knowledge and emphasizes what makes your business concept compelling. It also outlines how you plan to attract and maintain a customer/client base.
- How are you planning to advertise to your market?
- What is your competitive edge?
- What is your sales strategy?
So, without further ado…
Let’s look at the following example.
Strategy and Implementation
With so many products and services on offer at The Bakery Company, the company really does solve a lot of life’s little problems. From finding a wedding cake with wow factor to igniting a creative spark at one of their workshops, The Bakery Company fulfils many different needs for many different people.
Competitors offer similar products and services, but do not focus on innovative and bespoke creations as passionately as The Bakery Company. This difference will be communicated through social media, the website, video marketing and other mediums to attract customers to the brand, especially those looking for something a little unique and extra special.
The Bakery Company offers customers stunning cakes and confectionery at a very fair price that reflects the quality of the finished product. Customers looking for cakes that are more “masterpiece” than “mediocre” will be much happier to pay more, confident that their cake is unique to them and their special event.
Pricing structure is as follows:
- Pick ‘n’ Mix Brownie Bites – Quantity/price = $2.05 per 110g bag
- Triple Chocolate Brownie Bites (Gluten Free) – Quantity/Price = $1.65 per 100g bag
- Double Chocolate Chip Brownie slab – Quantity/Price = $1.55 per 100g bag
- Big Bonkers Brownie – Quantity/price = $5.95 per 600g bag/box
Brownie & Cake Bars
Wonka Wedding Bar: $69.95 – 25 children =$2.79 per child
For the children. Alternative to party bags/wedding entertainer. A eye catching modern twist – Willy Wonka style cart serving 4 different sweet options, 1 topping sauce, and brownie bites.
$20.00 per bar & set up. Time taken 1 hr.
Cake Cocktail Bar: $225.00 for 100 guests
6 different candy/chocolate shard choices, 2 topping choices (raspberry marmalade/chocolate ketchup/strawberry salsa & gluten free brownie bites.
$80.00 per bar & set up. Time taken 2 hrs.
Celebration cakes (round): 6″ basic $30.00 – 8″ basic $40.00 – 10″ basic $55.00 –12″ basic $70.00
Simple designs added start from $10.00/elaborate designs added start from $25.00 per design on cake.
Cake sculpture toppings start from $25.00.
Sugar flowers start from $1.00 per small flower – $2.00 per medium individual flower – $3.00 per large individual flower.
- Tiered Bakery Company Signature These are cakes offered for couples on a smaller budget, yet still want something beautiful & delicious. – per Signature cake – $40-$55 – Time taken per cake = 90 minutes
- Tiered couture cakes – prices starting from $200.00 – Costing from $40.00 – Time taken from 90 minutes upwards
- Tiered cakes – prices start from $325.00 – Costing from $70.00 – Time taken from 90 minutes upwards
- Tiered cakes – prices start from $495.00 – Costing from $100.00 – Time taken from 2hrs upwards
- Tiered cakes – prices start from $625.00 – Costing from $125.00 – Time taken from 2 hrs upwards
Small: Prices start from $95.00 Large – prices start from $295.00
Costing from: $5.00 (small) – $20 (large)
Children’s Cake decorating/sugar sculpting classes
$ 5.95 for 1 hr class. 8 – 12 children per class = $47.60 – $71.40 per hour.
Each child is provided with a party bag. Each bag contains: 1 Bakery Company cupcake recipe. 1 cupcake/sugar sculpture. 1 Bakery Company cake character card profile. 1 balloon.
As mentioned in previous sections, much of the business will be secured by word of mouth and repeat orders. The Bakery Company will also look to maximize the potential of online marketing, using their website and social media to attract more business.
Professional photography, video marketing, and online tutorials are just some of the ways that can be used to promote the company visually. The Bakery Company will also look at publishing as much shareable content as possible to attract more likes, followers, retweets and pins.
Blogging is something very close to Ali’s heart, and this is a great way to share fun ideas, tips, recipes, event news, competitions and special offers. The company will also make full use of social media accounts such as Twitter, Facebook, Google+ and Instagram. Once they have more video content, they will also start a YouTube channel. Live streaming over Facebook might be fun too! This is a new service that Facebook has introduced and opens lots of opportunities for customers to bake along while at home, à la Jamie Oliver and Gordon Ramsay.
Email marketing may be something to look into, but the company really wants to stay away from spam emails as this will only cheapen the brand. However, they will be following up with existing customers thanking them as well as sharing special promotions with them. This will be on an opt-in basis, so as to stick to Google best practices for email marketing. The company may also explore Pay-Per-Click marketing and retargeting at a later date, and this will be handled by a marketing agency on their behalf.
Printed marketing materials will also be useful at events the compny attends.
The Bakery Company will offer its services through its website and also face to face. Many of the services the company provides include set up at a venue, or delivery of workshops and classes. They will also offer products – such as their brownie line – through the website.
They also plan to approach retailers such as supermarkets and boutique stores to sell their range of Pick ‘n’ Mix Brownies. They will need to work on a bakery marketing plan, and how best to make, package and distribute their products. This is something that Ali is exploring now.
Milestones will be set once investment is in place. Ali would like to work closely with any investor on a mentor basis, and to receive guidance on the best direction to take the business, and how to plan milestones in the most logical way.
As mentioned previously, the company is operating in an extremely competitive market. Thanks to the creative genius of Ali and her passion for all things sweet, the company offers sophisticated, bespoke and also fun creations that simply cannot be found elsewhere. It is this passion and dedication that Ali will be looking to promote across the organization as it grows, by employing skilled and dedicated staff and ensuring standards remain high.
Reputation is everything and most business will be received via word of mouth and through repeat orders.
Unlike many other competing companies, Ali also has a product that is viable to distribute to the mass market.
The Bakery Company will use a variety of methods to market to customers including their website, social media, attending events, printed advertising, and promotional offers.
Discounts may be offered to previous customers and during potentially slower times, such as the winter wedding season.
Social media will also be very important to the brand, and the company will be communicating on a personal level with customers and followers to gain trust and get them to order and try out products.
The Bakery Company wants customers to come back time and time again and to shout from the rooftops what a great experience they had with the company – whether they placed an order for a cake or booked one of the workshops. A friendly and personal approach is incredibly important, as is following up with customers to ensure they were delighted with the service offered.
The company will always reach out to customers after a sale, whether it’s with a business card or thank you email, and encourage positive feedback through social media channels. It’s that personal touch that will bring customers back to The Bakery Company over and over.
Sales will be made through the website, social media channels, word of mouth, and repeat orders. The compay will also aim to secure orders at promotional events and exhibitions. In time, they may start using mailing lists to email customers regularly with details of special events, tutorials and any other information they may be interested in.
#6 Bakery Business
Ensuring that you have a COMPLETE financial plan within your business plan will DOUBLE your chances of investment as well as the future growth of your business.
A lot of small businesses don’t have a financial plan and it’s essential to your long-term success and business growth.
We’ve listed here the key elements you need to have in a successful financial section:
- Initial Start Up Expenses – Especially if this is a start-up idea, it’s essential that you have a description of what you need for investment purposes.
- Sales Forecast – It’s essential to have an estimate of your monthly sales revenue as well as annual. This helps you understand your business and plan out any marketing and growth strategies.
- Direct cost of sales – Measures the amount of cash the company will have to spend to produce the goods or services sold by the company. The direct cost of sales only includes the expenses directly associated to production.
- Profit and Loss Forecast – This is a statement summarizing the revenues, costs and expenses incurred during a specific period.
- Balance Sheet – This is the financial position of the company and states its assets, liabilities and owners’ equity at a particular point in time. It illustrates the business’s net worth.
- Loan Repayment – This shows the lender or potential investor the act of paying back any monies.
So… Are you ready to look at some figures?
Three Year Projection
Three Year Projection
Three Year Projection
Three Year Projection
Three Year Projection
Three Year Projection
Three Year Projection
Three Year Projection
Looking for more inspiration? Why not take a look through our other business plan examples:
To help you even further in creating your business plan, why not check out the following articles? They will help you write the perfect plan to impress:
Now, over to you...
Now I’d love to hear from you:
Are you going to start up your own bakery business or have you recently written a business plan?
We’d love to know what you thought about our Bakery business plan example.
Feel free to leave any comments below and I will be sure to answer them as soon as they come in.