As you work toward starting a bakery business, you must have a business plan. This plan will allow you to take all the necessary steps toward business growth. Basically, it includes all aspects of your business and how you plan to make it a success. You should start making a business plan after you have decided on the ideas and essentials of your bakery. The business plan will help you structure your ideas and goals toward business growth.
In this article, you will learn about the essentials of a bakery business plan and what you need to include in it. Before that, you will also learn the importance of creating a business plan for your bakery business. Furthermore, you will also learn about the factors you need to consider before creating your business plan for your bakery business. Hence, to learn more, read on to the end of the article.
Starting Your Bakery Business: Creating a Bakery Business Plan
The US Small Business Administration explains, “Think of a business plan as a GPS to get your business going. A good business plan guides you through each stage of starting and managing your business. You’ll use your business plan like a GPS for how to structure, run, and grow your new business. It’s a way to think through and detail all the key elements of how your business will run.”
If you make a well-structured business plan, it will be easy to get funding faster. Once you create a business plan in time, you will be able to determine what steps you need to take and when. Furthermore, you will always be aware of your business goals. Apart from that, once you create your business plan, you can stay in a better position to consider the potential and requirements of your business idea.
Basically, with the help of your business plan, you can understand what exactly your goals and tasks are. Also, you will be able to make the right decision towards the implementation of the plan in your business.
Making a Bakery Business Plan: Here Are the Steps to Follow
According to Indeed.com, “A business plan for entrepreneurs is a document that lists the objectives and goals of the business. It includes information on how the business will specifically achieve its goals, including sales, marketing, and product development. It may outline each individual goal for the business, including where funds will come from, how employees will contribute to the goals, and how the business can profit.”
There are different types of small business loans available. By having a business plan, you can have a better idea of your business needs. Hence, you can decide which type of small business loan you need for your business. Furthermore, when you are applying for a business loan, it is essential to have a business plan.
The following are the main constituents of your business that you need to include in your bakery business plan:
1. Executive Summary: Give an Overview of Your Bakery Business Plan
This is the most important aspect of your bakery business plan. Although you need to include this section at the start of your business plan, you need to write it at the start. Basically, in this section, you need to provide an overview of what is written in the detailed business plan. As the name suggests, you need to summarize your business plan in this section.
Here, you will need to explain the mission statement of your bakery, your target market, the concept, and more. Furthermore, you need to mention how your bakery will bring uniqueness to the market and how it will lead to success. Here, you can explain any specialties of your bakery team that can be decisive for your business growth.
The executive summary of the business plan also consists of a brief highlight of the business’ finances. Also, explain how you are planning to fund your business and how you plan to spend the finances you receive.
Make sure the executive summary stays within 400-500 words.
2. Company Description: Describe the Story of Your Business
This part mainly consists of the history of your company and why your business exists in the first place. Here, you can also explain how your bakery is different from its competitors. You can consider explaining how your business can be successful in the market. Furthermore, explain how your business is different in the market and how you sell something unique which is hardly available anywhere else.
In addition to that, you must also include other details of your bakery – the members of the team, the legal structure of the bakery, location, and business milestones. Apart from that, you must include what your future plans are and what your bakery is meant to be.
Include the equipment and space you need and how you plan to interact with your guests. If you plan to start a business by opening a food truck bakery, note that you need to buy a truck and other equipment that will help you be mobile with your bakery.
3. Market Analysis: Researching Your Market and Target Audience
Here, you will have to focus on your target audience or the customers that you want to serve. Also, you need to give an idea of what types of bakery items you want to deal with and who your target customers are. Hence, you need to focus on certain demographics and find out who your customers are.
Apart from that, you also need to mention whether you plan to serve for events, parties, etc. Also, explain what type of customers you want to serve, which might depend upon their age, financial condition, location, etc.
In addition to that, you can also mention other businesses if you rely on them. For example, if you rely on a neighborhood store to promote your products, you need to mention it. Also, mention whether you supply your products to other businesses or not. If you supply your cakes, bread, cookies, etc., to other businesses, you can grow your customers faster.
Make sure you define your target market in detail and consider the following factors:
- Age and profession of your target market.
- Financial condition and spending ability.
- Do they focus a lot on the quality of ingredients?
- What type of customer service do they want to receive?
4. Products and Services: Explanation of What You Intend to Offer
In this section, you need to mention what products and services you want to offer as a bakery business. Mention each of the items you want to sell. Apart from that, discuss details about how you plan to sell these products. Also, give an explanation of why you want to sell your products. Additionally, you can also give a description of how quality bakery items can help you get more customers.
One of the best things to do while writing about your products is to use simple language. This will help someone who does not know much about your bakery get excited about your products and services. Hence, it is better to avoid technical language, industry jargon, and buzzwords. This will help you attract more investors to your business.
Here are a few things to consider in this regard:
- Mention whether you will create new recipes or upgrade existing ones.
- Do your products include specialty items?
- Mention your sources of ingredients and equipment or from where you buy them.
- How are your bakery items different from those of your competitors?
5. Plan of Operations: Description of Everyday Operation of Your Bakery
This section includes an explanation of how you plan to create and sell your bakery products. Here, you will need to give details about your suppliers, production process, business facilities, bakery equipment, shipping, inventory, etc.
Identify where you will purchase your raw ingredients from and make baked goods. Furthermore, write about how you will make and sell your products. Also, mention how you plan to keep on in times of high demand or any unavoidable negative circumstances.
Apart from that, this section also consists of a brief description of your facilities. Also, give a brief description of your space and branches, if any. You also need to describe the equipment and tech tools that will be present in your bakery facility.
This section must also consist of details about your selling process and shipping. Hence, provide details about fulfillment partners if you are working with a third-party delivery service. However, if you want to offer deliveries on your own, mention that as well.
Additionally, provide details about your inventory –
- Where will you store your raw materials?
- How much of your final products can you keep?
- How will you ship your products (if necessary)?
Basically, you will have to give details about your inventory management system.
6. Marketing and Sales Strategy to Bring in and Convert Customers
According to Shopify.com, “Your marketing plan is a high-level overview of how you plan to promote your bakery. The marketing plan should outline which channels you plan to use for marketing and advertising, as well as any budgets you might have.”
Basically, you need a strong marketing and PR strategy to prosper in the market and get new customers. Here, mention the steps you intend to follow as you take on your potential guests. Apart from that, give a description of all the platforms and ways you will use to market your products and services. Also, give a description of how you will use various social media platforms, websites, and SEO marketing to promote your bakery business.
7. Management Team: Describe the Management Structure of Your Company
TouchBistro adds – “This section is where you expand on your business goals, including what the management team will look like and what technology you’ll need. For your team, you should provide details like whether you will be hiring full-time or part-time staff, what their roles will be, and at what hours your bakery will be open.”
Here, you will need to provide details of your management strategy and how your organization runs. Furthermore, you must also introduce the management team and its members. Also, do not forget to mention their qualifications and experience.
This section must also include the requirements of human resources and a description of them. Here, too, provide a description of the legal structure of the company.
8. Financial Forecast: Make Financial Projections of Your Bakery
Indeed.com states – “The financial section of your business plan explains how you anticipate bringing in revenue. If you need funding for your business, this section also describes the sources and amounts for that funding. Include your financial statements, an analysis of these statements and a cash flow projection.”
Here, you will need to outline the cost of your ingredients, equipment, salaries, technologies, etc. Basically, you have to provide financial projections of your day-to-day operations. Furthermore, you will also need to include your financial documents like financial analysis, income statement, balance sheet, and cash flow statement.
Hence, after you have given details of your business expenses, you need to give a project of your profits. However, you need to make sure your projections are realistic at the same time.
Factors to Consider Before Creating Your Bakery Business Plan
The following are some of the factors you need to consider before you create your bakery business plan:
- Make sure your plan is realistic.
- It must contain all the necessary financial and legal documents.
- You must mention all the leaders present in your management.
- Be detailed about your marketing strategy.
- Be clear about the required investments in the business. This will help you in acquiring loans better.
- Make realistic projections for your business.
Wrapping Up
Hope this article was helpful for you in getting a better understanding of how to create a bakery business plan. However, while making the business plan, make sure you include all the necessary details and keep your plan realistic. Make sure you are clear about your target audience and your products. This will allow you to get loans faster. Do you have more ideas to add? Consider using the comments section to share them.
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