Everyday, a new entrepreneur from across the world has a new business idea. These business ideas also happen to be generated from hobbies and passions. Turning what you love to do during your free time into an income stream is always a smart decision to make.
Are you a talented baker? Do you have entrepreneurial dreams? But did you know when starting a bakery business you are required to make a bakery business plan? To find out what a business plan is and how to make one for your business, we at founderactivity have listed the essential elements for you below.
If you want to access our article on How to start a bakery, click here.
What is a business plan?
A business plan is a document you prepare stating the intentions of the business operations and how you plan to achieve your set goals for the business. For your bakery business, a business plan is essential since it outlines the path you wish to see your business go. The video below will explain further as to what a business plan is.
KEY TAKEAWAYS
• A business plan be used to set ground for the goals and objectives of a business.
• You can use a business plan to attract investors.
• The management to recognize short term and long term plans of the business.
• Helps identify the weaknesses.
Importance of a business plan
Your well thought out bakery business plan will be your recipe to success. If you do not have a prepared business plan for your bakery, it is possible that further into operations problems may start to occur.
Your bakery business plan is important because it helps you recognize:
- Vision and Mission
- Goals and Objectives
- Promotion
- Market space
- Your customers
- Demand
- Marketing goals
- Marketing strategy
- Implementation
How to write a business plan
The followings are the important elements when writing a bakery business plan.
- Executive Summary
- Company Overview and Description
- Market Analysis and Competition
- Management and Organization
- Business Menu and Services
- Customer Analysis
- Marketing Plan
- Operations Plan
- Financial Plan and Projections
1. Executive Summary
The first step of writing your bakery business plan, you will come across the executive summary as the top most element. It will serve as highlights of the entire document you are preparing.
You have to mention factors like what the vision and mission of your bakery business is. This will help the people who look at your business plan. The executive summary should be attractive since this will be what your investors will have in hand when looking at your business.
For investors, questions like why would your target audience care and what do you sell or how is it different from your competitors will pique their interest. It can include products and services you offer, and how your target audience will be attracted.
You can download an example executive summary below.
2. Company Overview and Description
The company overview will consist a little more detail information on the business. Such as the history of your bakery or what you are planning to do for your business to be historical. The business entity should be revealed accurately as to whether the business is a sole proprietorship, partnership or an LLC (limited liability company).
You should mention what products and services you will offering a bakery business and also how does it stand out from your competitors. You should also include details of management staff. What they do and how will help your business reach its targets. Or are there any particular special services they can offer that is unique.
List your short term and long term business goals and they are quantifiable or measurable. Also add a timeline for these targets or goals as to when you want to achieve them.
3. Market Analysis and Competition
Your market analysis include the overview the market your bakery business decides to operate in. It should also mention how your bakery business will be fitting into an existing industry. It will have how big your target market is, what your target audience prefers and your bakery business serves.
What trends are famous and how it can be used to attract your audience. This will validate your investors and your management to work hard and cater to the bakery marketspace.
4. Management and Organization
Developing a proper management plan in your bakery business plan is a crucial factor. This will monitor how the business structure works and runs in bakery. Depending on the business structure, there can be several owners. If so, in this part of the business plan, you can mention what their ownership offers and how many shares are divided among the owners.
You can also plan ahead of investment to show your long term plans for your business. At this point, it solidifies that your business is fit to run.
You can download an example business products and services below.
5. Business Menu and Services
This sector will specify what kind of products your business will have on its menu and what services you will offer. You can mention all your products in detail and what it entails. You can also mention what you offer that is different compared to your competitor. It could be an ingredient or your method of making your product.
Your bakery can even cater your products to a particular segment. The gluten-free, sugar-free and nut-free customers since they will have limited options when you compare with your competitors. Your bakery business can also a product that is unique to your business and can only be made your bakery. This could look very attractive on a business plan for a bakery. To give your products more uniqueness, you can make bakery items similar to the culture where you decide to locate your business.
The services that a bakery could offer can be seating and dining space. You could this experience unique to your business. You can play music in the background or have a local singer entertain your customers.
You can download an example business products and services below.
6. Customer Analysis
When making the customer analysis for the bakery business plan, you have to mention how you have identified your target audience and how the bakery will cater to them individually. You have the possibility to categorize your customers by how old they are, where they live, where they work or what they do.
This way you can recognize their common behavior patterns and what the consuming patterns are. Using that information, customize your bakery products to be able to cater to them individually. You can also use a certain demographic area and apply your customer analysis to the products you decide to produce.
You can download an example marketing plan below.
7. Marketing Plan
Your marketing plan is the detailed overview of how you will create and how each product you decide to sell will reach your target audience. We also have provided a video on how you can sell your bakery items to your target audience.
When making a marketing plan, always be sure to use the 4 P’s. They are price, product, promotion and place. These are the most common pillars for a strong marketing strategy.
Using this technique to price your bakery products by the costs and how the costs are build should be mentioned in the business plan. The products you offer, in detail and what makes them unique from your competitors. The methods you use to promote and raise awareness among your ideal target audience. Advertising you for your bakery business should be attractive to pull in customers. You should ways you will sell your products such as online or in person, for your products to reach its customers.
You can download an example marketing plan below.
8. Operations Plan
Your operations plan will include how the production the bakery items and how your management team will be delegated to do each task. The inventory needed for the production process, who they will be ordered from and when on the day of deliver. Your suppliers must provide you details of how the raw materials are produced so you will know that products are of good quality.
The process and method of your production of bakery items will be mentioned in this part of business plan. Your production can be wholesale or retail. This is an important step because this will determine how you will be able to produce bakery items as per to the demand of your customers.
Your bakery facilities will also be mentioned in this part of the business plan. The space you and the staff will be working should enlist of all the bakery equipment. Equipment you will need to have an up and running business. Do you plan to sell your products online or do you plan to have a retail space to reach your customers? If you decide to sell directly to your customer, you will need to include the location and the working space available for your bakery.
9. Financial Plan and Projections
For final part of your bakery business plan is the financial plan and projections. Your financial plans will include the startup costs and the expenses your bakery business will incur to function.
The income and expenses of your business can be recorded in the income statement that will properly show you at the end whether your business has incurred a profit or loss. To monitor the capital within the business, a statement of financial position can be used. The cash flow statement will record the liquid cash that flows in and out of your bakery on a daily, monthly or yearly basis.
Your financial projections in your financial may be the most attractive part of your business plan to any potential investor. The financial projections helps them understand the amount of capital of you will need to keep the bakery business functioning.
It will outline the costs and how much your bakery can bring in income which will determine the strong potential for the business to be successful.
You can download an example financial plan below.
In conclusion, we have provided the full guide on how you could strategically plan how you should make your bakery business plan. Your bakery business can thrive once it follows a set path. The set path will align with the bakery business plan you have created. You will be able to look out for future obstacles and know how to dodge since you have planned ahead.
Tastes as sweet as a dream.
