bakery business plan summary

Bakery Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

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

Bakery Business Plan

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

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

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

How To Write a Bakery Business Plan & Sample

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

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

Next Section: Executive Summary >

Bakery Business Plan FAQs

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

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

Where Can I Download a Bakery Business Plan Template?

Get a downloadable bakery business plan template here . 

What Are the Main Types of Bakeries?

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

How Do You Get Funding for Your Bakery?

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

Learn More:  Seeking Funding from Angel Investors vs Venture Capitalists

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

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

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

What are the Steps To Open a Bakery Business?

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

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

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

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

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

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

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

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

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

Learn more about how to start a successful bakery business:

• How to Open a Bakery Business

Where Can I Get a Bakery Business Plan PDF?

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

BUSINESS STRATEGIES

How to create a bakery business plan

• Annabelle Amery
• Oct 29, 2023
• 12 min read

When launching your bakery business , the first step is to whip up a detailed and well-crafted business plan. Think of it as the secret recipe for your bakery's success. This document isn't just a list of ingredients; it's your roadmap to achieving your goals, whether you're baking artisanal bread, delightful pastries or delectable cakes. Your bakery business plan will help you navigate the sweet and savory challenges of the industry, ensuring your path to success is as delightful as your treats.

So if you're looking to start a business in the baking industry, keep reading for instructions on how build a strong business plan.

Ready to get baking? Use Wix to build a business website and learn how to make a bakery website .

Why create a bakery business plan? Key benefits to consider

Crafting a bakery business plan is important for several reasons. First, it forces you to conduct thorough market research and analysis, helping you gain insights into your target market's preferences, trends and competition. This information is vital for designing a product lineup that resonates with customers and stands out in the crowded baking market.

A well-structured business plan aids in clarifying your bakery's unique value proposition as well. By clearly defining what sets the bakery apart from its competitors, you can effectively communicate your brand's identity and build a strong customer base.

Beyond all this, your business plan lays out a detailed operational plan, outlining your bakery's workflow, supply chain management, staffing requirements and equipment needs. This level of detail is crucial to ensure smooth day-to-day operations and efficient resource allocation.

Finally, a bakery business plan is a vital tool for raising money for your business whether from investors, lenders or stakeholders. It demonstrates your commitment, understanding of the industry and your business's potential for profitability. It can help potential investors gauge your bakery's revenue-generating capacity and projected returns on investment.

How to create a bakery business plan in 6 steps

So how do you go about crafting your plan? In the upcoming sections, we'll guide you through six essential ingredients of a bakery business plan.

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

An executive summary is a concise and compelling overview of your bakery business plan, designed to capture the reader's attention and provide a snapshot of the entire plan. This section should be written last (after you've crafted the rest of the plan), to ensure that it accurately reflects the key points and highlights of your bakery business venture.

When writing an executive summary for a bakery business plan, aim to include the following elements:

Briefly describe the core concept of your bakery business. Highlight what sets it apart from competitors and emphasize your unique value proposition.

Summarize the market research you've conducted to identify your target audience, market trends and growth opportunities.

Provide a high-level overview of your financial projections, including revenue estimates, startup costs and potential profitability.

Outline the short-term and long-term goals you aim to achieve with your bakery business.

Introduce key members of your team and highlight their relevant expertise for this type of business .

Mention any funding requirements you have and how the funds will be utilized to support the bakery's growth.

Conclude with a compelling statement that encourages readers to explore the rest of the business plan.

Example of an executive summary for a bakery

"Sweet Delights Bakery is a specialty bakery poised to revolutionize the local dessert scene with its artisanal approach and innovative flavors. Our commitment to using organic and locally-sourced ingredients sets us apart in a market craving healthier alternatives. With a target demographic of health-conscious consumers and a focus on catering to dietary preferences, we anticipate tapping into an underserved niche.

Our projected revenue for the first year is $300,000, with startup costs totaling $100,000. By year three, we aim to achieve profitability and expand our reach to neighboring towns. With a team that brings together culinary expertise and marketing prowess, we are well-equipped to execute our vision.

We seek $75,000 in funding to secure a prime location, procure high-quality equipment and launch an impactful marketing campaign. Sweet Delights Bakery is poised to become a local favorite and a go-to destination for unique and guilt-free indulgences."

02. Business and domain names

Naming a business is critical for brand recognition and online presence. A business name generator can help spark ideas and ensure your restaurant business name aligns with your bakery's identity.

For instance, if your bakery focuses on gluten-free treats, a name like "PureBites Bakery" reflects your commitment to wholesome ingredients. Once you decide on a company name, ensure that a corresponding domain name is available. Your domain name should be memorable, easy to spell and closely related to your bakery's name. Avoid complex names that can confuse potential customers.

Once you’ve landed on a business name, you’ll want to learn how to register a business .

03. Market analysis and research

Including a comprehensive market analysis in your business plan is crucial for understanding the competitive landscape and shaping your business strategy. Conduct market research to identify your target audience's preferences, behaviors and spending habits. Analyze your competitors' strengths and weaknesses to find opportunities for differentiation.

By understanding market trends and consumer needs, you can tailor your bakery's offerings and marketing messages effectively. Use this analysis to develop a unique value proposition that resonates with your target customers, ultimately setting your bakery apart in a crowded market.

04. Operations plan

The operations plan is a pivotal section of your bakery business plan, outlining the practical aspects of running your business effectively. This includes selecting an appropriate location, detailing the layout and design of your premises, identifying the necessary equipment for baking (alongside packaging and display) and specifying your staffing needs.

For instance, in the operations plan, you would detail how your bakery's layout promotes efficient workflow and customer engagement. You'd also discuss equipment like ovens, mixers, refrigerators and display cases that are essential for your bakery's operations. Staffing needs would include roles like bakers, decorators, cashiers and customer service representatives.

05. Marketing and advertising plan

The marketing and advertising plan outlines how you'll promote your bakery business to your target audience. Consider a mix of strategies such as using social media platforms, such as Instagram or Facebook, to showcase your visually appealing baked goods and engage with customers.

Additionally, you can build local partnerships by collaborating with local cafes or businesses for cross-promotions. This can include hosting tastings or events to introduce your products to the local community.

Consider making a website where customers can browse your offerings and place orders. A website builder like Wix can help you get online fast. From there, you can market and sell your goods as well as build an email list for newsletters and promotions to keep customers informed about new products.

Need some help building up your brand? Check out these bakery logo ideas and Wix’s free logo maker , as well as our guide on how to make a bakery logo .

06. Financial plan

The financial plan is a crucial part of any bakery business plan as it outlines the financial aspects of your venture. It includes cost to start an LLC if relevant, other startup costs, projected revenue, expenses and profitability timelines. Clearly define your funding needs, whether through personal investment, loans or investors.

The financial plan should encompass a break-even analysis, highlighting the point at which your bakery covers its expenses and starts generating profits. It's essential to provide realistic financial projections based on market research and industry benchmarks.

Bakery business plan example: SweetBite Bakery

Part 1: executive summary.

SweetBite Bakery is a gourmet dessert destination set to captivate dessert enthusiasts with its delectable creations. Our commitment to crafting unique and artistic desserts using premium ingredients positions us as a standout in the bakery industry. With a focus on custom-designed cakes and intricate pastries, we aim to elevate the dessert experience for our customers.

We anticipate generating $500,000 in revenue in our first year, with a startup investment of $150,000. Our team of skilled pastry chefs and experienced business professionals are well-prepared to execute our vision. We're seeking $100,000 in funding to secure a prime downtown location, invest in state-of-the-art baking equipment and launch an immersive marketing campaign.

Part 2: company and domain names

Company name: SweetBite Bakery

Domain name: www.sweetbitebakery.com

Part 3: marketing analysis and research

Through comprehensive market research, we've identified a niche for exquisite custom desserts in our target area. The bakery landscape lacks specialized gourmet options, providing us a significant opportunity for differentiation. Consumer preferences for unique, visually appealing treats and the growing trend of personalized celebrations further support our concept.

Part 4: operations plan

Location: We'll secure a charming storefront in the heart of the city, attracting foot traffic and enhancing visibility.

Premises: The bakery's interior will exude a cozy yet sophisticated ambiance, reflecting our premium offerings.

Equipment: Our bakery will be equipped with top-tier ovens, mixers and presentation displays to ensure the highest quality.

Staffing: We'll hire skilled pastry chefs, decorators and front-of-house staff to provide exceptional customer service.

Part 5: marketing and advertising plan

Social media: Engage customers through Instagram by showcasing our artistic creations and behind-the-scenes processes.

Local partnerships: Collaborate with local event planners and venues for special occasions and catering opportunities.

Tastings and events: Host weekly dessert tastings to introduce our offerings and build a loyal customer base.

Online presence: Launch an interactive website where customers can explore our menu order customized treats and stay updated on our latest creations.

Email marketing: Build an email subscriber list to share exclusive promotions, seasonal specials and upcoming events.

Part 6: financial plan

Startup investment: $150,000 (from personal savings and a small business loan)

Projected first-year revenue: $500,000

Projected first-year expenses: $350,000

Profitability timeline: By the end of the second year

Bakery business plan example: Wholesome Harvest Bakery

Wholesome Harvest Bakery is a health-conscious bakery determined to revolutionize baked goods by focusing on natural, nutritious ingredients. Our dedication to producing wholesome treats and accommodating various dietary preferences positions us as a pioneer in the health-oriented bakery market.

In our first year, we anticipate generating $350,000 in revenue, with startup costs totaling $100,000. Our diverse team of nutritionists and bakers are poised to execute our mission. We're seeking $75,000 in funding to secure a local storefront and invest in equipment that aligns with our health-focused approach.

Company name: Wholesome Harvest Bakery

Domain name: www.wholesomeharvestbakery.com

Our market analysis reveals a growing demand for healthier bakery options due to increased health awareness. With a focus on gluten-free, vegan and sugar-free offerings, we aim to cater to health-conscious consumers seeking guilt-free indulgence.

Location: We'll secure a location near fitness centers and health food stores to target our niche market.

Premises: Our bakery interior will reflect a fresh and natural ambiance, showcasing our commitment to health.

Equipment: We'll invest in specialty ovens and equipment that align with our ingredient-focused approach.

Staffing: Our team will comprise of nutrition experts, experienced bakers and customer service professionals.

Social media: Utilize Instagram and Pinterest to share health tips, recipe insights and showcase our nutrient-rich treats.

Local partnerships: Collaborate with gyms, wellness centers and yoga studios to cross-promote healthy living.

Tastings and events: Host workshops on healthy baking and nutrition, attracting a community of health enthusiasts.

Online presence: Develop a user-friendly website with detailed nutritional information, allowing customers to order online.

Email marketing: Regularly send out newsletters with recipes, health tips and exclusive discounts to our subscribers.

Startup investment: $100,000 (personal savings and a small business loan)

Projected first-year revenue: $350,000

Projected first-year expenses: $250,000

Profitability timeline: By the end of the first year

How profitable is owning a bakery?

Yes, owning a bakery business can be profitable, but it is important to note that it is not a get-rich-quick scheme. Bakeries have thin profit margins, so it is important to carefully manage costs in order to be successful. However, there are a number of things that bakery owners can do to increase their profitability, such as:

Offering high-quality baked goods and coffee

Providing excellent customer service

Marketing their bakery effectively

Offering catering services

Selling merchandise, such as aprons, cookbooks, and gift baskets

Controlling costs by using fresh, seasonal ingredients and making products in-house

It is also important to choose a good location for your bakery. A high-traffic area with good visibility is ideal. Additionally, it is important to consider the competition in the area. If there are already a number of successful bakeries in your area, you may need to offer something unique to differentiate yourself from the competition. If you are willing to put in the hard work and dedication, owning a bakery business can be a rewarding and profitable experience. Here are some tips for increasing the profitability of your bakery business:

Focus on high-margin items. Some items, such as cakes and cupcakes, have higher profit margins than others, such as bread and pastries. Focus on offering a mix of high-margin and low-margin items to keep your customers happy and your profits up.

Reduce costs. There are a number of ways to reduce costs in your bakery business, such as using energy-efficient equipment, buying in bulk, and making products in-house.

Increase sales. There are a number of ways to increase sales in your bakery business, such as offering catering services, selling merchandise, and offering loyalty programs.

Market your business effectively. Make sure people know about your bakery by marketing your business online and offline.

By following these tips, you can increase the profitability of your bakery business and achieve your financial goals.

What are the disadvantages of owning a bakery?

Owning a bakery can be a rewarding experience, but it's important to be aware of the disadvantages before starting a bakery business. Some of the disadvantages of owning a bakery include:

Long hours and hard work. Bakers often work long hours, especially during busy times, such as holidays and weekends. Baking is also physically demanding work, and bakers often have to stand for long periods of time.

Thin profit margins. The profit margins for bakeries are thin, so it's important to carefully manage costs in order to be profitable.

Competitive landscape. The bakery industry is a competitive one, so it's important to differentiate your bakery from the competition.

Perishable products. Bakery products are perishable, so it's important to manage inventory carefully to avoid waste.

Food safety concerns. Bakeries must adhere to strict food safety regulations to protect customers from food poisoning.

Reliance on suppliers. Bakeries rely on suppliers for ingredients and supplies. If a supplier has a problem, it can disrupt your business operations.

Seasonality. Bakery sales can vary depending on the season. For example, sales may be higher during the holidays and lower during the summer months.

Customer expectations. Customers expect fresh, high-quality baked goods. It's important to meet these expectations in order to keep customers coming back.

Employee turnover. The bakery industry has a high employee turnover rate. This can make it difficult to find and retain qualified staff.

Despite the disadvantages, owning a bakery can be a rewarding experience. Bakeries play an important role in the community, and many bakers enjoy the satisfaction of creating delicious and beautiful baked goods that people love.

What mistakes do startup bakeries make?

Some of the most common mistakes that startup bakeries make include:

Underestimating the costs. Starting a bakery can be expensive. It's important to carefully estimate all of the costs involved before starting your business. This will help you to avoid financial problems down the road.

Overestimating demand. It's important to be realistic about the demand for your baked goods. Don't overproduce baked goods or you will end up wasting money.

Not marketing their business effectively. Make sure to market your bakery business effectively in order to attract customers. Don't be afraid to invest in marketing strategies and advertising.

Not offering a diverse product mix. Offer a diverse product mix to appeal to a wide range of customers. Don't just focus on one type of baked good.

Not having a good business plan. A business plan is essential for any business, but it's especially important for startups. A business plan will help you to define your business goals, strategies and financial projections.

Bakery business plan FAQ

What is the most profitable bakery item.

The most profitable bakery item varies depending on the region and the type of bakery. However, some of the most profitable bakery items include:

Coffee and tea

What is the failure rate of bakeries?

Can i start a bakery with no money, are bakeries hard to start, want to create another type of business plan.

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Bakery Business Plan: How to write it [Complete Guide]

• January 3, 2023
• Food & Beverage

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your bakery, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan for your bakery. Use this template to create a complete, clear and solid business plan that get you funded.

1. 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?

The purpose of a business plan is to secure funding through one of the following channels:

• 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:

• Business Overview : give a brief introduction to your bakery and quickly describe your brand, its offerings, the pricing list of products and what sets you apart from your competitors
• Market Overview : the market analysis segment will contain an overview of the expected bakery market size and growth in your area, as well as an analysis of your competitors and target audience
• Management & People : introduce your bakery’s management and employee structure. Provide a brief (no more than a couple of sentences each) of the knowledge and experience of the team. Also, speak here about your hiring plans and the reporting lines
• Financial Plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? Include here a chart depicting your key financials such as revenue, gross profits, and net profit
• Funding Ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

Bakery Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Bakery Business Overview

In this section of your bakery business plan, you will provide an overview (slightly more detailed) of your business. If there is something unique about your baked products, mention that in this segment.

Some of the most important questions that you must try to answer in this section include:

• Why are you opening a bakery?
• Where will your bakery be located and why did you choose that location?
• What type of baked products will you sell (low-calorie, vegan, gluten-free, etc.)?
• Why do you want to offer those product lines?
• How will you price your food offerings?
• Will your operating hours be the same as your competitors?
• Who is your target audience?
• What will be the legal structure of your company?

Let’s look at different subsections that you must include:

a) History of the Project

Any business must have two components:

• Passion & experience of the business owner
• Rationale behind the business

Passion & Experience

It is not necessary to have any prior experience with a bakery. As long as you are passionate about it and you know your market, you are good to go. 

However, if you have any experience, make sure that you are mentioning that. For example, you may have been a head pastry chef and a creative cake decorator in a popular bakery for 6 years and now you want to launch your own bakery.

No matter what, ensure that you demonstrate not just passion but also some industry knowledge that you must garner through thorough research.

Every business has a rationale behind its existence. What’s yours? Are you going to solve some problems that exist in the current bakery business scene? 

For instance, the target market may have a very high percentage of pastry-loving obese people. You may be the first one to introduce low-calorie pastries, cakes, and other baked items. 

Similarly, if the area has a high vegan density, you may want to introduce a line of vegan products that no other bakery in the area is offering.

You must also ensure that the market is conducive for the business to exist. For instance, if you are a master cake maker who makes ultra-realistic cakes that cost a lot and try to sell them in a low-income neighborhood, your cakes will probably not sell.

Therefore, it is important to understand the market before starting a business to prevent extreme losses, and eventually closure.

b) Business Model

This is where you will talk about the business model and the type of bakery you want to open. Some points that you need to briefly describe here are:

• Will you buy a new bakery, or will you buy an old one and remodel it?
• Will you open a specialty bakery, a counter service bakery, or some other bakery type?
• What equipment, technologies, inventory, and tools will you need to operate your bakery?
• Where will you source your ingredients from?

There are various types of bakeries that you consider:

• Bakery Café : It is a sit-down bakery. It is a retail bakery with a dedicated dining area. There will be front-of-house and back-of-house spaces and people will often order food and other drinks apart from your baked items like muffins, cupcakes, cookies, etc. People can also order tea, coffee, sandwiches, etc.
• Counter Service Bakery : These bakeries do not have any dining area. People will order food and take them away. You can sell other food items like drinks, burgers, sandwiches, etc. apart from your usual baked goods.
• Specialty Bakery : These bakeries focus on a very specific set of products. For example, wedding cakes, gluten-free baked products, etc.
• Retail or Wholesale Bakery : The difference between a retail and a wholesale bakery is that in the retail model, you will sell to your direct customers (B2C). In the wholesale model, you will be selling to other businesses like cafes, restaurants, specialty shops, etc.

Irrespective of the type of bakery you want to open, make sure that there is adequate demand for the products you want to sell. For instance, if you are trying to sell a vegan line of baked products to customers who want non-veg-based baked products, you will not succeed. There must be enough vegans in your target market.

c) Products & Services

In this sub-section of your bakery business plan, you will provide a list of your products and services . For instance, if you intend to open a specialty bakery such as wedding cakes, you must provide a menu listing all that you have to offer.

Similarly, if you want to sell bread, cookies, and pastries only, make sure that your sample menu lists them. If there are too many items that you intend to sell, make sure that the sample menu you are providing includes the major attractions. You don’t need to list all the items.

d) Pricing Strategy

This is where you will explain your pricing strategy . Of course, your prices can vary significantly from your competitors. However, if there is a significant price variation, you must explain such differences.

For instance, you may be selling custom-designed birthday and wedding cakes instead of generic designs. That may be the reason for higher costs. Similarly, the quality of the ingredients you use for baking can also account for the price differences.

Irrespective of the case, include a pricing chart for your menu items. No need to include the price of every product or product bundle you intend to sell. Instead of listing the price for every product individually, you can just provide a pricing range.

For example, you can do something like this:

• Multi-decker cakes with custom fondant-crafted figurines: $350 to $1,000
• Gluten-free cookies: $3 to $6

Offering a pricing chart is important because your pricing strategy will also allow investors to tie your pricing strategy with your financial projections later on.

e) Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Bakery Market Overview

A complete understanding of the market where you want to operate is important for the success of your business.

For example, there may be a large number of cafes in the area with regular and high demand for baked goods like pastries and cookies. Thus, opening a wholesale bakery to serve the B2B demand instead may make sense here.

Therefore, you must cover here 3 important areas in the market overview or market analysis section of the business plan of your bakery:

• Market trends : how big is the bakery industry in your area? What is its growth rate (or decline rate) and what are the factors contributing to its growth or decline?
• Competition overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
• Customer analysis : who is your target audience? What type of bakery setup do they prefer? How frequently do they buy baked goods? What is their average spending at bakeries? 

a) Bakery Industry Status Quo

How big is the bakery industry in the us.

According to the American Bakers Association, the US bakery market represents $154 billion and employs over 800,000 people..! The commercial segment is by far the largest (91% industry size) vs. retail bakeries that only represent 9% of the total US bakery market.

In terms of products, here is the breakdown of the most common bakery products as a percentage of total bakery sales in the US:

How big is the bakery industry in your area?

Once you grab the exact data for the US market and add it to your business plan, you can then divert your attention to the area where you want to operate. It might not be possible to find region or area-specific studies, and hence, you must estimate the size. For more information, read our article on how to estimate TAM, SAM and SOM for your startup.

Let’s now see how to estimate the market size of the bakery industry size for your business plan . We know that:

• The total US market size for retail bakeries is $15 billion (10% of the total $154 billion)
• The total number of retail bakeries is around 23,000

Therefore, the average annual revenue for each retail bakery is around $650,000 (that’s an average of $1,800 in sales per day).

So, if there are 20 already bakeries in the area where you will operate, we can reasonably assume the market size of the bakery industry in your area is around $13 million.

How fast is the bakery industry growing in the area?

Now, you must show the expected growth rate of the bakery industry in your area. This information may not be available via online research papers. However, assessing the growth rate will not be difficult.

You can approach each bakery separately and ask for their year of establishment. You will get a clear picture of the overall growth rate.

For instance, if there were 18 bakeries in 2018 and 20 bakeries in 2022, the average annual growth rate is 5.1%.

b) Bakery Competition Overview

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their bakery product offerings, marketing strategies, etc., will allow you to provide a better service.

If your competitors are offering nearly the same products & services, then what is their market share and how do they market their products & services to attract new customers?

It is always a good idea to do some research (if necessary, physically visit your competitors without revealing your business intentions) and create a comparative table summarizing their product & service offerings, marketing strategies, target audience, etc.

Here is a sample table that you can use:

The competition analysis table you will add to your bakery business plan will depend on what information you need and want to include based on your business model.

Bakery SWOT Analysis

Try to provide a SWOT analysis . It must be crisp and highly focused. SWOT stands for Strength, Weakness, Opportunities, and Threats.

Here is a sample that you can use as a reference:

• Strengths : Baking & Pastry Arts degree from Culinary Institute of America; 6 years of cake and pastry baking & decoration experience in a renowned bakery chain
• Weaknesses : Startup cost, zero reputation
• Opportunities : Increasing demand for healthy baked food because of increasing health consciousness in the target market
• Threats : Big brands like Dewey’s Bakery, Insomnia Cookies, Bare Snacks, etc., are flooding the market

A clear understanding of your strengths and weakness along with opportunities and threats in the real market can help you to design your marketing strategy . It also helps potential investors to assess the risk and reward profile of your business.

c) Bakery Customer Analysis

This is the sub-section where you will provide a detailed analysis of your target audience. Some important points that you must include in your customer analysis include:

• Age and gender distribution (you can get local demographic data from census.gov )
• Per capita expenditure on baked food items
• Frequency of bakery visits
• Average monthly income and disposable income
• Average bill size per visit
• Type of bakery preferred
• The expected price range for baked items
• Preference for healthy snacks and willingness to pay for high-quality products
• Any seasonal preferences they have

You can add as many data points as required to validate your business decision. The idea here is to display your deep understanding of the target audience and their needs, preferences, and expectations. This knowledge can help you to tailor your products & services to attract new customers.

4. Sales & Marketing

This is the segment where you outline your customer acquisition strategy. Try to answer the following questions:

• 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.

5. 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.

6. Financial Plan

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

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a bakery, startup costs are all the expenses you incur before you open your bakery and start making sales. These expenses typically are:

• 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 .

Note that these costs are for illustrative purposes and may not be fully relevant for your business. For more information on how much it costs to open and run a bakery, read our article here .

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.

Your financial projections should answer at least the following questions:

• 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.

7. Funding Ask

This is the last section of your bakery business plan. Now that we have explained what your bakery business model is, what you sell and to whom, what’s your marketing strategy, etc., this section must now answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any bakery business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries? Or will it cover mostly the cost for the lease deposit and the renovation?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our Bakery financial model template , you won’t have any issues answering these questions.

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

Related Posts

How Profitable is a Bakery? Profits & Breakeven Analysis

How To Build a Financial Model For a Bakery

Opening a Bakery Costs $109,000 to $310,000

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Bakery Business Plan Template

Written by Dave Lavinsky

Bakery Business Plan

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

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their bakery businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a bakery business plan step-by-step so you can create your bakery’s business plan today.

Download our Ultimate Bakery Business Plan Template here >

How To Write a Business Plan For a Bakery

Executive summary.

The executive summary is the introduction to your business plan, although it is often written last. It helps investors and lenders quickly decide whether they are interested and should read more, so the first page must get right to the point. Include a concise description of your bakery (or bakery concept if you are a startup), a short analysis of the market, proof that customers are willing to pay for products, and an explanation of the unique qualifications that ensure your bakery will be a success.  

Company Overview

This section of your bakery business plan provides a comprehensive look at the company’s history. Include details on your bakery’s legal structure, founding, location, and current business stage, as well as your past accomplishments and unique qualifications. Clearly explain anything that makes you a strong competitor in this market, such as existing contracts with retailers, a head baker with impressive restaurant credentials, or exclusive access to award-winning recipes.

Finish Your Business Plan Today!

In this section you should also give an overview of the type of bakery you operate or will operate in the future.

For example, do you or will you operate a:

• Traditional bakery (selling breads, biscuits etc.)
• Commercial bakery
• Bakery specializing in wedding cakes
• Wholesale bakery
• Doughnut shop
• Pastry shop
• Bakery Cafe
• Food truck bakery
• Home Bakery

Industry Analysis

This section assesses that bakery industry and how your bakery fits into the existing landscape. Address any challenges that you unearth with a solid strategy for success. Also keep in mind that your market is not the entire baked goods market. Rather, it is your niche of that market.

For example, while the baking industry in the United States generates more than $30 billion per year in revenues, your bakery will only comprise a fraction of that amount depending upon your geography, focus, etc. So, zero in on the specific products and customers you plan to target and focus your analysis on those elements.  

Customer Analysis

This section of your plan details your bakery’s target audience, that is the customers you will serve. Note that in many cases, a bakery might target multiple market segments. Do you plan to target brides to be? Children’s birthday parties? Upscale families who regularly hold private events for 100 or more guests?

Or do you primarily serve walk-in customers. This segment usually comprises neighborhood resident who know about your bakery, and who tend to visit regularly.

Even if you’re not a commercial bakery, you might serve local delis, grocery stores and bodegas. Clearly, it helps a bakery’s sales if it has a greater number of distribution points. The same is true in the case of restaurants. A bakery can supply breads, bagels, cakes, pastries and other products to restaurants and hence create a larger customer base.

Whatever target markets you serve, clearly define them in your business plan. Detail the demographics of each. For example, are they wealthy males and females? Are they college students? Are they local restaurants? Whatever the target customers, you need to identify and detail them so you’ll know their needs and can better serve them.

Likewise, discuss the psychographics of your target customers. Are they price conscious? Is quality the most important issues they will use to judge your bakery? Do they insist on reliability and premium service?

In addition to documenting the demographic and psychographic variables that define your target market, detail how your bakery will meet their unique needs.

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Competitive Analysis

This section of your bakery business plan details your direct and indirect competitors. Direct competitors are other companies who fulfill the same need for the same target market, most likely others selling similar baked goods. Your indirect competitors are those who fulfill a different need for the same target market, or those who fulfill the same need for a different target market. An example of an indirect competitor could be a nearby coffee shop.

In your plan, name and describe your direct competitors individually, and explain what sets your bakery apart from them. Create a more general category for your indirect competitors and discuss them as a whole.

Finally, detail your areas of competitive advantage and what will make you distinct. Most successful bakery owners identify products that no other local bakeries offer, such as a treat that is exclusive to your bakery and that drive customers to frequent your store. Also, based on the demographics and psychographics discussed above, you may be successful being the only local bakery selling nut-free cakes, or making vegan and gluten-free baked goods with local and organic ingredients.  

Marketing Plan

Your bakery marketing plan explains how you will penetrate your target market, based on the four P’s: Product, Price, Place, and Promotion.

The Product section explains all the products and services your bakery will provide. Price refers to the price points at which you will sell each item, along with your reasoning for choosing those prices. Place explains all your distribution methods, such as your retail stores, your company website, and third-party retailers. Promotion defines the ways you will entice customers to purchase your baked goods, such as free samples and web advertising.

In addition to describing the four Ps your bakery marketing strategy, you should explain how you will retain existing customers through loyalty programs or other methods. Also, in this section of your plan, particularly if you are startup retail bakery, you should detail the design and display of your location.

Clearly, your bakery’s storefront should be designed in a way that attracts walk-in customers. Consult an interior designer to get insight on how to create a warm and inviting ambience in your bakery.

Operations Plan

The operations plan explains the processes by which you will turn your vision into a reality. It includes the everyday short-term processes involved in physically baking your products, managing your retail space, packaging your baked goods, conducting sales transactions, choosing and working with vendors, and delivering the finished products to your customers among others.

Your operations plan must also include the long-term processes involved in growing your company, such as introducing new products or retail stores, achieving specific sales milestones, and hitting other important business-oriented goals such as hiring new employees, launching new locations, etc.  

Management Team

This section provides biographies of the key members of your company’s management team, with an emphasis on strong business skills. Focus on educational background, previous experience with successful start-ups, and other elements that demonstrate your and/or your team’s ability to build a company. A strong advisory board can help make up for weaknesses provided you clearly articulate how your advisors will directly impact the company’s growth.

Financial Plan

The financial plan is often the most difficult part of the business plan to write, yet it is the section that potential investors and lenders spend the most time analyzing.

Provide a list of all revenue streams, including their relative importance and timeline for implementation, as well as the amount and expected sources of outside funding. Include a summary of past (if applicable) and projected Income Statements, Balance Sheets, and Cash Flow Statements. The assumptions made in these documents must be reasonable and verifiable based on an analysis of similar companies.

Make sure you don’t miss anything when putting together your financial projections or you could lose credibility in the eyes of readers of your plan. For example, make sure you adequately enter costs which most bakeries incur such as space (owned or rented), equipment (planetary mixers, cylinders, gas stove, cooling fridge, deep fridge, storage utensils, etc.), electricity and water, staff, furniture and décor, licenses, insurance and legal fees.  

The appendix includes your full financial projections, as well as any other documentation that supports the claims made in the business plan. For example, it might include a list of key existing customers or letters from potential partners. Likewise, if you’re a startup bakery, including sketches of the proposed store design should appear in your appendix.  

Putting together a business plan for your bakery business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the bakery business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful bakery business.

To further help you, we have other articles on key aspects of how to start your bakery . and running it effectively. Specifically, our bakery marketing plan will help you develop the best promotions strategy. Our bakery startup costs post will let you know what costs to expect.

Bakery Business Plan FAQs

What is the easiest way to complete my bakery business plan.

Where Can I Download a Bakery Business Plan PDF?

You can download our bakery business plan template PDF here.

Our bakery business plan PDF is a free resource to help you get started on your own business plan. This is a business plan template you can use in PDF format for a bakery, home bakery, wholesale bakery or any other type of bakery.

What Is a Bakery Business Plan?

Why Do You Need a Business Plan?

If you’re looking to start a bakery or grow your existing bakery you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your bakery in order to improve your chances of success. Your bakery business plan is a living document that should be updated annually as your business grows and changes.

What Are the Sources of Funding for a Bakery?

Bakeries are usually funded through small business loans, personal savings, credit card financing and/or angel investors. This is true for a home bakery business plan too. This is true for a wholesale bakery business plan, a home bakery business plan and a commercial bakery.

Don’t you wish there was a faster, easier way to finish your Bakery business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how our professional business plan consultants can create your business plan for you.

Other Helpful Business Plan Articles & Templates

How to Write a Bakery Business Plan + Sample

Makenna Crocker

7 min. read

Updated February 7, 2024

Free Download:  Sample Bakery Business Plan Template

Your friends and family have long marveled at your baking skills. Now, you’re ready to jump from passionate amateur to bakery business owner .

Making cakes and pastries in your kitchen is one thing—buying commercial-grade equipment, setting prices, and serving customers is a far greater challenge.

So, how does a new bakery owner maximize their chance of success? 

By writing a business plan. 

This article will guide you through crafting a bakery business plan, from describing your offerings and creating a marketing strategy to assessing your competitors and managing your finances. 

Need more guidance? Download our free sample bakery business plan .

Why write a bakery business plan?

Launching a bakery requires more than perfect recipes; it’s about strategically planning for success. 

A business plan gives you :

Clarity and direction

The plan helps you define your bakery’s identity, from your signature products to your brand ethos.

A financial foundation

A simple financial plan you update periodically gives you a major advantage, helping you manage a budget and understand how decisions affect revenues, expenses, and cash flows.

Market insights

Researching and documenting your target market and competition helps you position your bakery and stand out.

Operational strategies

The operational plan outlines how you will manage staffing, supply chain, and other logistics so your bakery runs smoothly.

Attracting investors

If you’re seeking funding , investors need to see a comprehensive plan demonstrating your bakery’s growth and profitability potential.

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How to write a business plan for a bakery

1. conduct market research.

Start by pinpointing your target market. 

Not every bakery appeals to all customers. Ask yourself, who do you see coming through your doors? 

It could be:

• Health-conscious individuals looking for gluten-free or low-sugar options.
• Professionals looking for a quick treat on their way to work.
• Families looking for fresh, wholesome bread and treats to eat at home.

Consider age, income level, dietary preferences, and local demographics. 

Remember, identifying your target market is more than just understanding the demographics of your customers. It’s about understanding their lifestyle, dietary habits, and what they value in a bakery. 

Are you targeting health-conscious individuals, families, or specialty dessert enthusiasts? Tailoring your products and services to your chosen clientele ensures your bakery meets their unique tastes and needs.

Market research tips

When conducting market research for your bakery, consider the following:

Customer preferences

Identify the types of baked goods that are in high demand. Do customers prefer traditional treats, artisanal bread, gluten-free options, or vegan pastries? 

Location analysis

Evaluate potential locations for your bakery. Consider foot traffic, visibility, parking availability, and proximity to complementary businesses. 

Product differentiation

Identify what sets your bakery apart from the competition. Is it your secret family recipe, organic ingredients, or unique flavor combinations? 

2. Analyze the competition

When evaluating competitors , you need to look beyond just other bakeries. 

Anyone who provides baked goods is a direct competitor or alternative. You must account for patisseries, cafes, and even grocery store bakeries. 

Then, focus on identifying strengths, weaknesses, and unique selling points by reviewing the following: 

• Product offerings and pricing: What kinds of baked goods do they offer, and at what price points? Are there items that are universally popular or notably absent from their menus?
• Customer experience: How do these establishments present themselves? Is the ambiance inviting? What level of service do they provide?
• Operational insights: Observe their staffing levels, speed of service, and any visible supplier partnerships.
• Marketing strategies: How do they attract and retain customers? Look at their promotional activities, online engagement, and customer feedback.
• Long-term trends: Have they expanded their product range or services recently? Any noticeable changes in their operation hours or customer demographics?

Visit local bakeries, patisseries, and cafes to understand their offerings, pricing, and customer experience. Identify their strengths and weaknesses, and look for opportunities to differentiate your bakery. 

What unique products or services can you offer? Is there a gap in the market that you can fill? 

3. Detail your operations plan

Misjudging resources needed to manage inventory, staffing, and other day-to-day requirements is one of the biggest mistakes an owner of any business can make. 

A solid operational plan will keep you from blowing your budget.

The operations plan covers aspects of your business like:

Where your business will operate, as well as the characteristics of the neighborhood and factors that may lead to a competitive advantage.

Licensing needs

Track what you need to remain compliant with regulations, from a business license to food handlers permits for employees.

Operating hours

What days and times do you plan to be open? When do you expect your peak hours to be? Listing these will help you plan staffing and determine promotions to offer. 

Staffing needs

It’s crucial to understand how many employees you’ll need to hire and when you will need them to work. Many bakeries make their goods before most people wake up, so you may need staff ready to work irregular hours.

4. Market your business

The market analysis should have uncovered valuable insights into who might come to your bakery. 

You can use that information to develop a comprehensive marketing plan to showcase your bakery’s offerings, build brand awareness, and attract a loyal customer base.

Consider the following promotional strategies for your bakery:

• Establish a strong social media presence: Be visible on platforms like Instagram and Facebook to showcase your bakery’s products and engage with your audience.
• Build an appealing website: Create a strong online presence through a user-friendly website with photos and promotions to build an online following.
• Get out in the community: Participate in local events, sponsor community initiatives, and support local charities to create awareness and goodwill.
• Collaborate with local businesses: Consider partnering with nearby coffee shops, restaurants, or event planners to expand your reach and offer joint promotions.
• Offer sampling and tastings: Give potential customers a chance to try your baked goods and entice them to purchase.
• Create eye-catching displays: Invest in appealing window displays and enticing signage to create a visually appealing environment that attracts customers.

5. Financials and pricing

No matter how effective your marketing campaigns are, running a successful bakery requires staying on top of your finances.

You must be realistic to develop a solid financial plan and pricing strategy . 

Understand the costs of employee wages, ingredients, and supplies, and try to figure out how long you expect to operate before becoming profitable. This will be especially important if you seek a bank loan or outside investment.

Consider the following financial aspects when creating your bakery business plan:

Startup costs

Determine the initial investment required to set up your bakery, including equipment, leasehold improvements, licenses, and inventory. Factor in costs for marketing and branding efforts as well.

Ongoing expenses

Identify the recurring expenses in running your bakery, such as rent, utilities, ingredient costs, staff wages, and marketing expenses. 

Regularly review these costs to ensure they align with your revenue projections.

Pricing strategy

Set your prices based on a thorough understanding of ingredient costs, overhead expenses, and the local market. Consider factors such as quality, portion sizes, and the value you provide customers. 

Monitor pricing trends in the industry to remain competitive.

Sales forecasting

Develop a sales forecast based on your market research, pricing strategy, and capacity. Consider seasonal fluctuations, holidays, and events that may impact your bakery’s performance. 

Continuously review and adjust your forecast based on actual results.

6. Set milestones and goals

Setting milestones and goals helps you track your progress toward key achievements. 

These goals can be both short-term and long-term, covering areas like revenue targets or break-even projections , the number of customers served, menu expansions, or partnerships with grocery stores.

Consider the following tips when setting milestones and goals for your bakery:

Create “SMART” goals  

Ensure your goals are Specific, Measurable, Achievable, Relevant, and Time-bound . 

For example: Instead of aiming to “increase sales,” set a specific target, such as “increase monthly sales by 15% within six months.”

Include your employees

Get your bakery staff involved in setting goals and milestones. Their input and commitment are essential to achieving your bakery’s objectives.

Evaluate regularly

Monitor your progress toward your goals and assess whether adjustments are necessary. Periodically review your financials, customer feedback, and broader market trends to stay on track.

Free sample bakery business plan template

If you’re ready to start your own bakery business, you can download our free sample bakery business plan from our library of over 550 sample business plans . 

Get started today, and discover why businesses that plan grow 30% faster than those that don’t .

Makenna Crocker is the Marketing Specialist at Richardson Sports. Her work focuses on market and social trends, crafting gripping and authentic content, and enhancing marketing strategy to foster stronger B2B and B2C relationships. With a master’s degree in Advertising and Brand Responsibility from the University of Oregon, she specializes in generating a strong and responsible brand presence through content that positively influences and inspires others.

Table of Contents

• Why you need a plan
• How to write a business plan
• Free business plan template

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Bakery Business Plan

Ready to turn your love for baking baked goods into a successful business?

To ensure that your business endeavor happens to be a flourishing one, write a business plan specifically crafted for your unique bakery business.

From helping you finalize the bakery location to evaluating the financial position of your business- a detailed plan uncovers every detail essential to kickstart a successful bakery business.

Writing a business plan can get complicated. With this step-by-step guide, you will have all the information essential to write a bakery business plan . Also, download our free bakery business plan template and modify it to fit your needs.

Ready to dive in? Let’s get started.

Key Takeaways

• Conduct a detailed industry analysis of the bakery market to understand market trends, target market, and the growth scope of your business.
• Outline the business goals and devise a business strategy that is in line with your bakery’s branding image.
• Analyze the competitive landscape of your business and identify local businesses that will offer direct and indirect competition to your business.
• Make calculations, assumptions, and projections to form key reports such as income statement, balance sheet, Cash Flow statement, and Break-even analysis.
• Determine the operations of your bakery business by outlining the procedures, processes, and equipment required to kickstart the business.
• Determine the baked goods and services you will sell through your bakery business.

Why is a bakery business plan important?

A business plan helps achieve your business objectives by creating a roadmap that will guide your bakery business in a strategic direction. An actionable well-drafted plan offers an in-depth view of your business idea and are a few benefits you must know:

• A business plan instills clarity in your business idea. All the ideas that were messed up in your mind start getting a clear point of view once you start writing a plan.
• A business plan is your checklist to understand what different aspects of the business need- the resources, equipment, manpower, licenses, etc.
• It helps crystallize your business vision and what it aims to achieve in the bakery market.
• A business plan optimizes the bakery operations and brings down the operating expenses by ensuring the resourceful allocation of bakery resources.
• A plan evaluates the financial aspects and viability of your bakery idea before you actually invest money in the business.

And, of course, a well-crafted plan will get you essential funds to get started in the bakery market. Moving forward, let’s craft a spectacular plan for your bakery business.

How to Write a Bakery Business Plan: A Complete Guide

From writing an executive summary to creating your financial plan- let’s decode the key elements of writing a business plan.

1. Get a business plan template

Before you start writing a business plan, consider getting a sample template to simplify the entire plan writing process.

A lot of information goes into writing a comprehensive business plan. Addressing all the key components in brief details is a challenging task.

However, by using a template, you can add structure to your plan. Not only that, it will help you organize the information clearly in a cohesive manner. With appropriate prompts, you will know exactly what to write in each section.

We know you would start searching for a template. Well, the Upmetrics business planning template is perfectly relevant and suited for your bakery business. It’s intuitive, modern, and available for free download.

Need Assistance Writing a Bakery Business Plan?

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2. Write an executive summary

The executive summary is a concise description of your entire bakery business plan. It highlights the key findings and entices the reader to delve further into your business plan. So make sure to keep it interesting.

A well-drafted executive summary includes an answer to every question, a potential investor might have.

For instance,

• What is the core objective of your bakery business?
• What are the pain points of your target customers and what solutions can you offer?
• What type of baked goods will you offer?
• What is your target market?
• What is your marketing strategy?
• What are the financial highlights of your bakery business?

As you start writing, remember that the executive summary should summarize the plan and not your business idea.

Lastly, fit your compelling summary description in 1-2 pages.

3. Conduct a competitive and market analysis

The market analysis section paints a clear picture of your ideal target market, bakery industry trends, and your competitors in the market. In a way, this section is your chance to validate the potential success of your bakery shop.

The market analysis section of your bakery plan must include:

Market share, growth potential, and industry trends

Identify your targeted available market (TAM) through thorough market research and determine your share in the bakery market. Analyze the emerging trends in the bakery market and assess your growth potential as a retail bakery.

Understanding of the target market 

Who will be your potential customer at a bakery shop?

It gets much easier to succeed in the market when you have a clear understanding of who your target customers are.

In this section of customer analysis, you will create a buyer’s persona of your ideal customer by understanding their psychographic and demographic details.

Competitor analysis

This is an equally important part of the market study, where you evaluate the position and competitive landscape of your bakery shop.

Begin by identifying your top competitors and evaluate your strengths, weaknesses, opportunities, and threats against other bakeries. Establish your competitive edge and show the potential investors that your business stands a promising opportunity in the competitive market.

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4. Prepare a company overview

The company overview section of a bakery’s business plan is a brief description of your bakery business concept, its legal structure, location, and value proposition.

Be creative and write a compelling section that can propel the readers’ interest in your business idea.

Wondering what to include in your bakery’s company overview section? Let’s check:

• Type of bakery business: retail bakery, specialty bakery, cloud bakery, mobile bakery, etc.
• Business structure: Sole proprietorship, LLC, partnership LLC, corporation, etc.
• Mission statement
• Value proposition
• Quantifiable business goals and milestones
• History and background of the bakery, if applicable
• Partnership and ownership structure
• Name of owners/ partners
• Operating hours
• Service style

Drill down to details and make this section an engaging read.

5. Describe your products and services

After describing your bakery structure and mission statement in the previous section, you will now outline the product and service offerings of your bakery shop.

As a bakery business, you may sell a variety of delicious baked goods such as pastries, cakes, fresh bread, cookies, tarts, pies, donuts, sweet buns, etc. Add this to your product section and also non-baked goods such as savory snacks, coffee, etc, if it’s on your menu offering.

Specifically mention, if you will have products for special diets, i.e. gluten-free, keto-friendly, sugar-free, vegan baked goods, etc.

6. Bakery store design and layout

An effective bakery business plan must include a blueprint of your bakery shop’s layout and design to demonstrate the bakery’s concept practically to the readers.

Mention your bakery size and the space allocated for the back of the house and front of the house operations. Also, explain how the proposed layout will increase the efficiency of your business operations in great detail.

In this section, you will also talk about the decor and theme that will create a warm ambiance for your target audience. Keep in mind that the decor should reflect the branding image you want to create in your target market.

Offer an immersive experience to the readers while explaining this section.

7. Prepare a bakery marketing plan

The marketing plan offers a detailed outlook of marketing strategies you will use to market and promote your bakery shop. Consider it as a roadmap that will guide you in building a brand of sustainable value in the market.

So how do you build a perfect marketing plan?

Begin by identifying the marketing channels and different types of digital marketing campaigns that will work best for your potential customers. Now, allocate the monthly budget to different marketing activities. Lastly, devise a marketing strategy for each channel with a clear plan of action.

Here are a few marketing strategies that are popularly used by successful bakery businesses:

• Social media platforms for brand development
• Email marketing for promotional offers
• Video content such as easy baking recipes, tips, tricks, etc
• Online workshops and live sessions
• Influencer marketing
• Tasting events and sampling
• Customer testimonials

Now detail all your plans in this section and show your investors that you have a solid way to establish your business’s popularity in its target market.

8. Outline your organizational structure

In this section of your bakery business plan, you introduce the management team and employees at your shop. Also, highlight the organizational structure and hierarchy of employees in the organization.

Begin by introducing the owners and their role in your organization. Highlight their experience in the bakery industry and the key skills that can benefit the business.

Introduce your talented baker and their role in recipe development and standardization. Show their experience in the baking field and prove their asset worthiness.

Draw a clear flowchart depicting the flow of authority and responsibility in your bakery business. It is your chance to show the investors that you have a team and knack to take this business on a successful path.

9. Create a logistics and operational plan

The operations plan of your bakery business plan is a strategic document highlighting the processes, procedures, and resources needed to efficiently run your bakery shop.

A well-planned operations plan is like a business manual that has answers to all the questions one might have while running a bakery shop.

Wondering what to add to your operations plan? Well try to include answers to the following questions to make it detailed and comprehensive:

• Physical facilities: What will be your bakery location to produce bakery goods? Will you serve customers from that location or a different shop? Are you planning to sell the bakery goods online?
• Suppliers: Where will you get the raw materials and supplies for producing bakery goods? Who will supply non-bakery items like scones, sandwiches, and savory snacks?
• Inventory: Where will you store the raw material and ingredients? What will be the shelf life of these ingredients? How will you manage the stock levels? What are the minimum thresholds for different items and how long it takes to stock them?
• Production: Who will bake the goods? How long is the process? Will everything be made fresh or in batches to be stored for a few days? Will there be recipe cost cards for each menu item? How will you meet an unexpected spike in demand?
• Bakery Equipment: What type of bakery equipment will you require? Will there be a POS system at your store? What other technologies will you use? How will you take online orders?

The amount of precision here will help you regulate your operating expenses once the bakery starts serving the customers. Proper planning is advisable at this stage.

10. Create a Financial Plan

And now comes the most exciting part for investors- a financial plan. The figures in financial statements are helpful in determining the viability of your business idea. So this section holds a considerable weightage in terms of whether you will get funding or not.

To ensure you create a comprehensive financial plan, including financial projections for these key components:

• Cost of starting a bakery shop
• Sales forecast
• Revenue projection
• Operating expenses
• Pricing strategy
• Income statement/ Profit & Loss statement
• Break-even analysis
• Cash flow statement
• Balance sheet
• Business ratios

In this section, you will also evaluate your funding requirements and identify the funding sources for your business. i.e. bank loans, SBA-guaranteed loans, angel investors, and personal savings.

Having realistic financial projections at hand will help you realize your financial goals while evaluating the sustainability of your bakery business.

However, creating the projections for all these elements from scratch can get overwhelming. Additionally,  you also need to work on visuals and graphs to add impact and clarity to your plan.

Well, there is an easy way. Create your plan with the Upmetrics Financial forecasting tool . This tool will generate key reports and visuals that can be easily downloaded and added to your plan.

We hope this sample plan will guide you in writing a perfect business plan. Now, let’s move forward and check the industry trends ruling the bakery world.

Bakery Industry Highlights 2023

Before you open a bakery, here are some latest highlights from the bakery industry, you may find helpful:

• Bakery market size: The US bakery market size was valued at $99.47 billion dollars in 2023. It is projected to grow at a CAGR of 2.08% between 2023-2028.
• Retail Bakeries: According to IBIS World , there are 8,780 independent retail bakery shops in the US.
• Bakery consumption: In 2022, Americans consumed 8.6 billion kilograms of cake and pastry goods, a sizable amount compared to other countries.
• Bakery trends: There is a growing trend of providing healthier alternatives, i.e. gluten-free baked goods in the bakery market. The organic and gluten-free baked goods market grew by 2.45% in 2022.
• Market Saturation: 55% of commercial bakery revenue in the US is generated by 3 major players- Grupo Bimbo, Flower Foods, and Campbell Soup.
• Specialty bakery market: The US Specialty bakery market share is expected to grow by 10.54 billion US dollars by 2026.

Download a sample Bakery business plan

Need help writing your own bakery business plan? Well, download our bakery business plan pdf and write your plan section-by-section with utmost precision.

Upmetrics templates are perfectly suited for entrepreneurs who need a little help to kickstart their business planning. Import the data into the editor and start planning.

The Quickest Way to turn a Business Idea into a Business Plan

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With more than 400+ business plan examples , we offer invaluable guidance to help you write a cohesive business plan.

Whether you are writing a business plan to strategically grow your business or attract investors, Upmetrics’ invaluable resources like AI assistance, forecasting tools, and step-by-step guides will serve you perfectly.

Let’s bake a recipe for success together.

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Frequently asked questions, what should be included in a bakery business plan.

An effective bakery business plan must include:

• Executive summary
• Business overview
• Industry and competitors analysis
• Bakery goods and services
• Bakery design and layout
• Operations plan
• Key management team
• Financial bakery plan

How long should my bakery business plan be?

A bakery business plan should be not more than 15-20 pages including graphs, visuals, and charts. You are likely to lose the interest of investors with a lengthy plan. However, keeping it extremely short is also not favorable, as it would not cover important details. So try using crisp content for your business plan.

Can a bakery business plan template help in setting clear business objectives and goals?

Absolutely yes. A template offers a variety of prompts that will help you to write each section clearly and cohesively. Moreover, you will get a variety of bakery-specific examples that shall help in clearly determining your goals and objectives.

Do I need to have financial projections in my bakery business plan?

Yes, financial projections are important to assess the viability and profitability of your business idea. If you are planning to seek investor funds, this section is of crucial importance. Investors will evaluate the financial section and determine whether to invest or not.

Can I use the same bakery business plan template for different locations?

Yes, you can. However, you need to alter the content of your business plan for different locations and target markets by making specific modifications.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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