How to Write a Business Plan for a Bakery

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A business plan is a formal statement that allows you to present facts about the viability of your proposed business. It is often used to help secure financing for start-ups. To start a bakery business, you will need to present your vision for the business, your experience in the bakery business, your understanding of equipment costs, marketing data on other similar businesses in your area, and a good understanding of how to handle the finances of a bakery.

A small business owner stands in front of a bakery.
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Step 1

State your idea of what the business with look like. Make a case for how your business will be different from other businesses of the same type, such as whether you will specialize in a particular bakery product (cakes for special occasions, breads, cookies, high-end French pastries, or mass-produced snack cakes, for example).

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Step 2

Present market data on who you expect will buy your baked goods. Data could be about families in the area who will buy cookies and birthday cakes, upscale shoppers with an interest in high-end French pastry, or trends in bakery purchasing that will support your mass-produced snacks.

A customer carries two loaves of bread.
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Step 3

Reveal the work and management experience of key personnel in your business and state what makes them valuable to the establishment of your business. List training and business experience. Explain what kinds of workers you'll need to run your business on a daily basis and how you will hire them.

A pastry chef works in the kitchen.
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Step 4

Research the general economy and look into how the public is spending money on the products you will offer. Demonstrate how you will adapt your bakery business to changing conditions, for instance, concentrating on more cost-effective products when times get tight. Show how you plan to manage the money that flows through your bakery business, who will have charge of the money, and who will be the primary parties making decisions about money.

A customer and employee exchange money over a counter.
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Step 5

Mapping out how your bakery will use money is the most important part of your business plan. You must anticipate costs for set-up, salaries, vendors, overhead and taxes. An accountant can help you put together a preliminary budget for your bakery business. It’s unlikely you will stick to this budget as your business grows, but it’s a good framework for thinking about your income and expenses.

A close-up of a man creating a budget.
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Step 6

Add your ideas on how your business will grow. If you intend to add other kinds of products, sell online, or put in seating for a cafe, this information should be included in the business plan. It will show you that you are looking to the future of your business.

A baker hands a customer a gift wrapped package.
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Step 7

Explain your planned legal framework for your bakery, whether it will be a sole proprietorship, S-corporation or C-corporation, and who will have the principal responsibility for legal and tax issues. Having these issues decided in advance will reassure banks and financial institutions that you've properly considered all serious financial issues.

A woman fils out tax documents at a desk.
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Tips & Warnings

  • Keep your ideas and expectations realistic.
  • Don't be too optimistic about expected income in early years, and don't price expenses too low.

References

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