Bakery Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Bakery Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Bakery business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready!
- Complete Industry Research
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PDF Format
- Meets SBA Requirements
Bakeries are very popular businesses in small towns and large cities. People love baked goods and as such the year is a continued demand for these products on a daily basis. Most bakeries are able to remain profitable in any economic climate given that they’re able to provide their baked goods not only to the general public but also to commercial enterprises as well. The barriers to entry for a new bakery are moderately low given that there is not a tremendous amount of capital needed to start these businesses. Typically, the startup costs for new bakery range anywhere from $25,000-$200,000 depending on whether or not the business is going to maintain a very large-scale retail facility. In high-traffic urban areas, the startup costs are generally considered higher given the higher rental expense.
Investors, financial institutions, and banks are usually very receptive to lending and providing capital for new bakery operations. This is due to the fact that much of the capital sought is usually used for the acquisition of tangible equipment. Additionally, the gross margins generated by bakery usually range anywhere from 75% to 85% depending on the types of baked goods offered to the general public. If an entrepreneur is looking to raise capital for their new business than they are going to need a bakery business plan. This business plan should include a three-year profit and loss statement, balance sheet, cash flow analysis, breakeven analysis, and business ratios page that a lender or potential funding source can review in order to make a lending or a investment decision. In addition to the financial information, a well-developed market research study should also be conducted. This should include information regarding other bakeries that may be competitors, population size, population density, effective market radius, median household income, median family income, and other pertinent information that relates to the demographics of the market in which the bakery will be launching its operations.
A bakery marketing campaign had marketing plan should focus significantly on developing ongoing relationships with restaurants, hotels, bars, and hospitality businesses that will place recurring purchase orders with the business on an ongoing basis. By maintaining these ongoing purchase order relationships – most bakeries are able to remain profitable at all times given this highly predictable sugar revenue. Beyond these relationships, a bakery should also maintain an extensive presence online. This includes not only developing a proprietary website but also maintaining profiles on popular social media platforms such as Facebook and Twitter. As it relates to the proprietary website, information regarding the location, products offered, pricing information, catering information, and related service information should be included. As it relates to social media, profiles that allow individuals to write reviews should be established so that the bakeries developed a strong brand name within its market. As many people now use both Internet searches as well as social media to find local businesses – it is imperative that a new bakery ensures that its brand names extremely visible within any local market.
Beyond the business plan and marketing plan, a bakery SWOT analysis should also be developed. This analysis should encompass the strengths, weaknesses, opportunities, and threats that are normally associated with a bakery. As it relates the strengths, bakeries are able to generate highly predictable streams of revenue from their sale of baked goods coupled with moderately high gross margins. For opportunities, ongoing relationships with hospitality and food and beverage businesses are one of the ways that a bakery can rapidly expand its revenues starting at the onset of operations. Pertaining to weaknesses, within any market there are usually a number of other bakeries that operate in a similar capacity. As such, an owner operator must look for ways to differentiate their location from that of competitors. Relating to threats, there’s really nothing outside of a drastic economic recession that would impact the revenues of a bakery business.
1.0 Executive Summary
The purpose of this business plan is to raise $125,000 for the development of a bakery while showcasing the expected financials and operations over the next three years. The Bakery, Inc. (“the Company”) is a New York based corporation that will provide sales of pastries/fresh breads as well as catering services to customers in its targeted market. The Company was founded by John Doe.
1.1 The Operations
The Bakery intends to provide an expansive array of cakes, pies, breads, cookies, and desserts to its target market. The business intends to acquire a 1,000 square foot facility that will house the retail shop and the baking equipment.
The business will also provide catering services to parties and corporate events. This is an important source of revenue for the business. At the onset of operations, the business will partner with local event planners that will use the Bakery as its primary source for baked goods.
The third section of the business plan will further describe the services offered by the Bakery.
1.2 The Financing
Mr. Doe is seeking to raise $125,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following:
- Development of the Company’s Bakery location.
- Financing for the first six months of operation.
- Capital to purchase ovens and baking equipment.
Mr. Doe will contribute $25,000 to the venture.
1.3 Mission Statement
The Bakery’s mission is to become the recognized leader in its targeted market for baked goods including cakes, pies, breads, and cookies.
1.4 Management Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the baking industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Revenue Forecasts
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals and event planners within the target market.
2.0 The Financing
2.1 Registered Name and Corporate Structure
Bakery, Inc. The Company is registered as a corporation in the State of New York.
2.2 Use of Funds
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of Bakery, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Bakery. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Operations
Below is a description of the baked products offered by the Bakery.
3.1 Baked Goods
The primary source of revenue for the business will be the pies, breads, cakes, cookies, and other baked goods that the business will produce in house with its baking equipment. The Company intends to acquire a 1,000 square foot facility from which to conduct its baking operations.
3.2 Catering
The Company will also generate secondary revenues from catering services for large scale events hosted by individuals, corporations, and businesses within the Company’s targeted market.
4.0 Market and Strategic Analysis
4.1 Economic Analysis
This section of the analysis will detail the economic climate, the bakery industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic condition as a result of the COVID-19 pandemic is rapidly improving. Interest rates have remained low, which has led to substantial improvement in the economy. Although there are issues with inflation, the US Federal Reserve has indicated that they are willing to adjust monetary policy to combat this issue. The economy is moving back towards normal at this time.
4.2 Industry Analysis
The retail baking shop industry has experienced a healthy level of growth over the past decade. The U.S. Economic Census estimates that there are over 25,000 individual stores that are operated by 3,500 companies in the United States. This number is expected to increase at a rate of 5% per annum. While the growth rate of the number of establishments has increased 5% per year, the revenues generated per establishment have increased at a rate of 10% per year.
4.3 Customer Profile
The Bakery’s average client will be a middle to upper middle class man or woman living in the Company’s target market. Common traits among clients will include:
- Annual household income exceeding $50,000
- Lives or works no more than 15 miles from the Company’s location.
- Will spend $10 per visit to the Bakery.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Bakery intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Bakery.
5.1 Marketing Objectives
- Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
- Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.
- Establish relationships with food vendors and event planners within the targeted market.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Bakery to easily reach people within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public.
The Bakery will also use an internet based strategy. This is very important as many people seeking local businesses, such as bakeries, now the Internet to conduct their preliminary searches. Mr. Doe will register the Bakery with online portals so that potential customers can easily reach the Bakery. The Company will also develop its own online website.
The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the baked goods that the Company is selling.
5.3 Pricing
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Overview
6.1 Organizational Chart
6.2 Personnel Budget
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
• The Bakery will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $125,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Financial Highlights
In the event of an economic downturn, the business may have a decline in its revenues. However, baked goods are relatively inexpensive and people will continue to demand these goods. As such, only a severe economic downturn would result in a decline in revenues.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
