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Starting a Bakery Business Plan (PDF)
A bakery can also be known as a pastry shop or a confectionary. When dealing with the bakery industry we are looking at products such as bread, cakes, pastries, cookies, muffins, and pies, amongst others. It is basically food products baked from flour or other grain meals. A bakery business is a very profitable venture if operated efficiently. It is not enough to be able to make good bread or cakes. A bakery business is an enterprise that requires resources and planning. The quality of your output is important. However, you also have to create an environment within which customers can access your products at great prices. At the highest level, the bakery business is capable of producing incredible profits and prestige. This article will outline how to start the bakery business, and the bakery business plan – PDF, Word and Excel.
Above all you should develop a passion for the enterprise given the hard work that is required of you. The great thing about this model is the possibility of transitioning from other corporate endeavors straight into bakery. Moreover, you can do it as a side business without hindering your other profession. The range of possibilities includes a family-owned and run home business. You can also become a major corporate entity that caters for major events.
Before you go further along with the bakery business this must be your primary focus. Who do you intend to cater for? This question is your launch pad into ultimately coming up with a comprehensive marketing strategy for your bakery business. In fact, insights from your market research have ripple effects towards all other components in setting up the bakery business. You must appreciate the fact that you must niche which entails targeting a particular market. It’s not that easy to cater for the whole breadth of the market because that might be unsustainable due to high costs. Therefore you must be diligent enough to figure out which specific portion of the market you’ll target. When conducting market research you must closely study people’s eating out behaviours, check the age range dynamics and also analyse the levels of income of your prospective target market. This is why it is important to have a good bakery business plan before you start this business.
Location and Premises
This here is a component that’ll be greatly informed by your target market. You want a scenario where your bakery store is ideally located at a spot characterised by high volume vehicle and foot traffic. It shouldn’t just be about traffic only though; it must be close to or in an area where your intended customers are abundantly found. Another vital feature to consider is the availability of adequate and secure parking space and easy access to mass transportation. The best approach to take is to locate your bakery shop in an area close to other businesses that can lead to customer inflows for you. For instance, locating it at a shopping centre, shopping mall or central business district (CBD) creates prospects of regular customer inflows. The premises should be large enough to accommodate all your equipment, offices, and space for customers. Your bakery business plan should cater for the costs of buying or leasing the premises.
There are already established bakeries wherever you might think to start a bakery business. There are also new and upcoming bakeries as well. Thus you cannot turn a blind eye to competition. You have to study all your competitors to figure out their business profiles. This entails their products and services, market shares, distribution network, operating times, payment methods, customer segments, and so on. A thorough look into all this shows you loopholes and market gaps.
You have to seek to build a bakery business that has several differentiators. Tweaking operating hours can become one of your differentiators. A strategic location can also be a differentiator. It could be a unique product range that can differentiate you. Maybe it could be allowing online orders, payments and offering home deliveries. All these aspects are best figured out after studying your competitors. Remember, consumers are always looking for convenience and cost savings.
Equipment for a Bakery Business
The bakery will require a variety of equipment. The fixed items will delve a lot into your initial capital outlay. This is because you will typically purchase big ticket items such as ovens, fridges, mixers, bakeware, bread slicers, display case and utensils. The costs of purchasing the bakery equipment should be included in your bakery shop business plan. You may consider purchasing preowned equipment as a way of cutting down your startup costs.
Permits/Licenses, Insurance & Business Bank Account
The first thing is to register your bakery business. After that you must get properly licensed. A bakery business is in the food industry. In the food industry there are strict regulatory frameworks to adhere to. You will need to apply for a business license from the relevant often local (municipal) authorities. Prior to getting that food license your earmarked premises will be thoroughly inspected. It varies from place to place but there will be a long list of things your premises must have or satisfy. Some of the critical areas inspected or inspected for are drainage system, waste management system, ventilation system, sanitary facilities, and Hazard Analysis and Critical Control Points (HACCP), amongst others.
Insurance & Business Bank Account
There are so many things that could go wrong in a bakery. Important assets can get damaged or destroyed. There are several risks that can affect workers as well. The smartest thing to do is to get insured. Contact your nearest, reputable insurance provider and get the necessary guidance. This might seem unnecessary but when something happens in the future you will be glad you got insured.
Then buttress insurance by opening a business bank account for your bakery business. It helps make financial management easier. Most importantly it will help separate your personal finances from those of your bakery business. In the event something catastrophic happens with the bakery business, it will sink alone. It will not sink with you. This is a principle in financial literacy many people in business are yet to grasp.
There are so many different types of bakery businesses that you may want to explore. Your decisions are determined by four primary considerations:
- The amount of capital that you have
- Your skills and competencies
- The business aims, goals and objectives
- The tastes and preferences of your customers
Each of these factors can change throughout the planning and implementation process for the bakery business. Therefore, you need to constantly adjust your bakery business and product selection accordingly. You have a number of options and niches that might just suit your client base. Examples of products that your bakery can offer include bread, muffins, rolls, cakes, donuts, buns, pizza, tortillas, cookies, biscuits, pies, bagels, scones among others. The products you are going to offer should be included in your bakery business plan.
Staff And Management
The effective running of a bakery business requires a significant workforce. As a rule of thumb, your bakery staffing needs are always informed by your intended scale of operations. Some of the key areas in this business are operations management, financial management and inventory management. At the minimum you need pastry chefs, waiters, cashiers and logistics personell. Other required staff include accountants, supervisors, security team, stock controllers and managers, though this depends on the size of your bakery.
Your bakery should have sufficient number of well trained staff. This is because repeat purchases and ever-growing customer inflows are a product of swift and quality service from the staff. Having a small or skeletal staff makes it very difficult to provide swift service. Remember we are living in a fast-paced world where people don’t want to be kept waiting for too long. The salaries of all your employees must be catered for in the bakery store business plan.
An official launch is important.
Kick-starting your bakery business can get a boost from doing an official launch. This follows that you would have set up a website and social media accounts. This also follows that you would have been active and engaging with people online and on the ground. All that must culminate into an official launch along with a press release. You can offer free samples on the day as well. Adorn the place and make it lively on the day such that it attracts people. People generally love new outlets, new offerings, and free food. Your initial pricing should be penetration pricing. This means you price lesser than existing players to lure customers to your business. Make the most out of the official launch.
Used A Blended Marketing Approach (Offline And Online)
Afterwards the focus becomes building your audience online. By the way, incorporating online ordering and payments on your website will be a game-changer. Regularly post useful, fun, and informative content daily. Conduct online competitions with giveaways of your products or branded items. All your promotional material, be it physical or virtual, must be high definition. That is a must in the food industry if you want your marketing material to stand out. If your scale of operation is substantial consider potential bulk, recurring clients. Engage them with proposals on how you can be their supplier. These can be companies, food outlets, schools, and the like.
The market for bakery is huge and ever increasing. There is always huge demand of different types of baked goods. The market for a bakery include individuals, families, hotels, guest houses , supermarkets, companies and organizations. Your bakery should have fair prices that keeps you in business. Do not be tempted to compromise on quality as a means of correcting errors in your budgeting process. Those entrepreneurs that are running local family businesses should be careful about giving discounts to loved ones. This is because they could end up destroying the bakery business before it gets a chance to establish itself. A proper marketing strategy should be included in the bakery business plan.
Keys To Profitability
Your choice of location is a major part of making your bakery business profitable. You ideally need a spot that has high human and vehicle traffic. If that is not possible then the important key becomes your distribution network. The other key is to cultivate a huge clientele mostly comprised of bulk and recurring customers. These are customers who require your products in bulk daily. Economies of scale are a major aspect; scale your operations sooner. Identify your major costs and manage, preferably lessen them. For instance, 60 percent of costs may go to raw materials and remuneration. Your product range must be diversified and comprehensive but informed by market demand. This will ensure you always have and sell fast-moving products. This is one of the best food industry businesses you can start. There is vast room to diversify. You can scale and can pivot if needs be. Best of all, the market for baked foods is always there.
Pre-Written Bakery Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements
For an in-depth analysis of the bakery business, we encourage you to purchase our well-researched and comprehensive bakery shop business plan. We introduced the business plans after discovering that many were venturing into the bakery shop business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.
The StartupBiz Global bakery business plan will make it easier for you to launch and run your bakery business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for bakery. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the bakery shop business.
Uses of the Bakery Shop Business Plan (PDF, Word And Excel)
The bakery shop business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your bakery business
- As a bakery shop business proposal
- Assessing profitability of the bakery business
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
Contents of the Bakery Business Plan (PDF, Word And Excel)
The business plan for bakery shop include, but not limited to:
- Marketing Strategy
- Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
- Industry Analysis
- Market Analysis
- Risk Analysis
- SWOT & PEST Analysis
- Operational Requirements
- Operational Strategy
- Why some people in the bakery business fail, so that you can avoid their mistakes
- Ways to raise capital to start your bakery business
The bakery shop business plan package consists of 4 files
- Bakery Business Plan – PDF file (Comprehensive Version – 83 Pages)
- Bakery Business Plan – Editable Word File (Comprehensive Version – 83 Pages)
- Bakery Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 41 pages)
- Bakery Business Plan Automated Financial Statements – (Editable Excel File)
The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the percentage markup, salaries etc, and all the other financial statements will automatically adjust to reflect the change.
Click below to download the Contents Page of the Bakery Shop Business Plan (PDF)
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Get the Bakery Business Plan (PDF, Word And Excel)
Click Buy Now below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!
If you want to purchase multiple business plans at once then click here: Business Plans Store.
The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.
We wish you the best in your bakery business! Check out our collection of business plans , and more business ideas .
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Business plan template for a bakery
Download this business plan template for a bakery in PDF or Word format, or tailor it to your project directly in our business plan software.
Discover our bakery business plan template
Not accustomed to writing business plans? Our bakery business template will turn a typically challenging process into a total breeze.
Modelled on a complete business plan of a bakery in Normandy, our template features both the financial forecast and the written part that presents the project, its team, the local market and the business strategy implemented by the management.
Cast your eyes on this template to achieve a better understanding of what your bank and investors would like to see, so that you can create a business plan that meets their expectations.
Template only available to paying subscribers of our online business planning software . Get a 7-day trial for free.
Edit the bakery business plan template online, or download it
Available in pdf.
Just after a little inspiration? Download the business plan template in PDF to print and have a read over it.
Download in Word format
Want to edit your plan on Word? Simply export the bakery business plan template to MS Word (.dox) format.
Tailor it to your own project
Adapt this template to your personal project by changing the written part or the financial forecast in our online business plan software .
Bakery business plan template content
This template includes a complete business plan, with a financial forecast and the following sections:
- Executive summary: The executive summary gives the reader a clear and concise overview of your business idea
- Company: This section lays out the structure of your business, including its location, management team and legal status
- Products and services: Here, you'll give an overview of the services or products offered by the company
- Market analysis: The market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry and local market (customer profile, hot trends, regulation, competition, etc.)
- Strategy: This section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way
- Operations: This step lays out the company's operational organisation, including the recruitment plan
- Financial plan: The financial plan includes a table of sources & uses (initial funding plan), and complete financial statements (P&L, balance sheet and cash flow statements).
- Appendices: This part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).
Template only available to paying subscribers of our online software. Get a 7-day trial for free
Bakery business plan template extract
Executive summary, business overview.
Au Pain D'Antan will be a bakery located in Hérouville St Clair and led by Samuel C. and Victoria D.
Au Pain D'Antan will offer different types of bread and sandwiches in addition to quality pastries. We will also make custom orders for special occasions (such as weddings, baptisms, birthdays, and corporate events) for our customers.
Our bakery will be located at 25 avenue de Bruxelles in Hérouville St Clair, a commuter town on the outskirts of the city of Caen.
Partners Samuel C. and Victoria D. have the qualifications and experience necessary to set up the business.
Samuel C. graduated with a Professional Baker's Certificate and has 10 years of experience in the bakery industry.
Victoria D. holds a Master's degree in pastry making and has 11 years of experience in the field.
The two partners met through a professional online network 2 years ago and thought carefully about their professional collaboration and business idea before getting started.
Au Pain d'Antan is a limited company, to which Victoria D. will be the CEO and Samuel C. will assume the role of Chairman of the Board of Directors.
Samuel C. owns 40% of the company, while Victoria owns 60%.
Bread is a diet staple for many within France - so it is certainly not about to go out of fashion.
In fact, a 2016 survey by Qualiquanti reveals that 92% of the French population have bread in their home at all times, while 52% of respondents feel they simply can't do without it.
Bakeries reign as the preferred place of purchase for bread, with French people making 52% of their bread purchases there.
With an estimated average price of €0.92, the baguette is affordable and remains one of the most popular food items purchased by the French.
There's no doubting the demand for bread in France. But with 35,000 artisan bakeries (about one bakery for every 2,000 inhabitants) and 6 billion baguettes being baked in France each year, the supply is meeting the demand.
The bakery offer is evolving: with bread purchases counting for 45.2% of bakery sales, the range of baked goods being sold is expanding.
The bakery is no longer just a place to buy bread, as it is fast becoming a go-to place for lunch. Bakers are also developing their bakery products to improve their turnover.
According to Fiducial, a traditional bakery makes an average annual turnover of around €386,000, with the average customer spending €4.20 per visit.
However, the turnover depends strongly on the size of the business. According to the Observatoire de la Boulangerie, a bakery with an average staff of 9 employees, including 2 apprentices, sees a turnover between €300,000 and €450,000 (excl. tax) per year.
However, according to boulangerie.org, the average turnover for a bakery with an average workforce of 3 to 2 employees is around €273,000 (excl. tax).
In terms of how the sales are distributed between different types of products, in addition to the bread sales mentioned above, pastries, sandwiches, and savoury products now make up almost 50% of sales.
64% of bakeries in France are located in urban areas. On average, these bakeries are run by couples around the age of 47. With a wave of retirements expected within the next ten years or so, the market will renew itself, as these businesses will be taken over by new owners.
In 2019, Hérouville St Clair had 23,319 inhabitants and 9 bakeries - bringing it under the national average of one bakery per 2,000 inhabitants.
The biggest age group in the city is 20 - 24 year olds. Hérouville-St-Clair's young population can be explained in particular by the presence of students from the University of Caen.
Its proximity to the city of Caen also provides an opportunity for businesses to target professionals travelling to the Caen agglomeration, and also in the opposite direction.
The town of Hérouville-St-Clair is a commuter town, popular amongst families and young professionals, so a bakery would well serve the needs of those living there.
There are a total of 9 bakeries in the city of Hérouville St Clair. However, we believe that the competition will be mainly with bakeries in the immediate vicinity of the Avenue de Bruxelles, of which there are three.
We expect a high level of competition with the bakeries in the neighborhood, as our offerings are similar. However, we believe that our prime location and the quality of our products should enable us to build a loyal customer base in the local market.
We will also compete indirectly with other businesses selling bread and sandwiches.
Au Pain D'Antan should be profitable in its first year of operation.
We expect to achieve sales of €268,781 and EBITDA of €35,837 (and 13.33% of margin) in Year 1.
We believe that we will then be able to grow our business thanks to word of mouth and the actions set out in our marketing plan.
On the basis of the current plan, we should achieve sales of €275,661 in year 2 (with 2.56% of growth) and €283,50 1in year 3 (with 2.84% of growth).
We anticipate to generate EBITDA of €48,202 (and 17.00% of margin) in year 3. The improvement in EBITDA margin between year 1 and year 3 is due to a better absorption of fixed costs following the increase in sales.
We expect a positive cash flow throughout the entire plan.
The cash flow generated by the business will be sufficient to cover our loan repayments while providing leeway for us to renew our equipment and deal with any contingencies.
Our initial financing requirement amounts to €115,000. The partners plan to contribute €40,000 (35% of the total), and we would like to obtain a loan of €75,000.
Template only available to paying subscribers of our online software. Get a 7-day trial for free.
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