Bread, in its various, wonderful forms, remains a staple in the diets of many. If you feel passionate about providing happiness through the medium of food, opening a bakery could be a pretty fulfilling (and lucrative) idea.
With the nation's demand for bread staying consistently high, the bakery market is a safe one to enter - but that's not to say you shouldn't weigh up the pros and cons of setting up a bakery before you get started.
To help you do this, you'll need to create a business plan for your bakery. Not sure how to go about drafting up a business plan? No worries at all, simply read our guide below to make your bakery business plan a reality...
What type of bakery should I open?
With a global turnover of 11 billion euro, the bakery market is booming. From artisan bakeries to chain bakeries (such as Greggs and Gails) and more industrial bakeries, there's room for many different entrants on the market.
For a real chance of success, however, you need to make it clear from the outset what your concept will be. Would you like to open a small, independent bakery that specialises solely in bread, or identify with an already existing chain that offers a wider range of treats such as croissants and pastries?
These are simple questions, but they will determine the direction your bakery takes and how it operates in the long run, but also how you will put it together in your bakery's business plan.
The location in which you intend to set up shop will strongly influence the type of bakery you'd like to set up. Consumers' preference for bread varies across different areas - so it's important to get to know your local clientele and what they're after - whether they have a real penchant for sourdough or prefer classic French baguettes.
Things to keep in mind when writing your bakery's business plan
Regardless of which type of bakery you'd like to set up, you'll need to carry out market research. This will help you develop an understanding of the needs of your target market, as well as the current state of the industry.
Your success will be highly dependent on the location you choose. If you're situated in a rural area, it might be an idea to strike up a partnership with the local supermarket to supply them with some of your stock. In more built-up areas, proximity to a busy shopping street is key.
It's also important to think carefully about whether you'd like to be associated with an established bakery chain. Belonging to a franchise will allow you to benefit from operational support as well as an already dedicated clientele, both of which will greatly reduce the risk of your business. You can also choose to take over a bakery to make it easier and already have an established clientele.
Also remember that you won't be on a regular 9-5 schedule. Weekends are the most profitable time of the week for bakeries, as well as holidays and during school breaks - so make sure to factor this in when writing up your recruitment plan.
This rhythm will also have repercussions on your supply and inventory management to take into consideration in your bakery's business plan. Because the raw materials of your bakery are perishable, you'll have to stock up on products more regularly than a grocery shop may. So take these costs into account when creating your financial forecast.
What should a bakery business plan contain?
To put it simply, a bakery's business plan is a document containing:
- A financial forecast (highlighting the financing requirements to start the business and the expected profitability of your project)
- A written part presenting its strengths and the company's objectives for the coming years
Your bakery's business plan is particularly important as it will enable you to check that your business can be profitable. It's also the document you’ll use to present your project to the bank and potential investors to secure the capital needed to launch - so having a professional and reliable business plan is key.
Every good bakery business plan begins with an executive summary - which is the equivalent of a cover letter for your bakery business plan. The aim here is to introduce your business project to investors in as engaging and concise a way as possible, encouraging them to read on and learn more about your exciting venture.
You then have to present your business in detail, including its strengths and the risks associated with the industry. You do so by breaking your plan down into several parts.
First, you'll identify the structure of your company (including its owners, shareholders, location, and legal form), before explaining the products or service you're offering.
You'll then carry out the market research for your bakery, present the business' marketing strategy and give an overview of the operational running of the business - including details on suppliers and the recruitment plan.
Finally, the last part of a bakery's business plan is devoted to the financial forecast. A financial forecast is a presentation of the cost assumptions included within the business plan. Using a sales forecast, cost structure, and a series of financial statements, the financial forecast tells investors everything they need to know about how profitable your business is likely to be.
What tool should I use to write my bakery business plan?
If you're not used to writing business plans, another good solution would be to use online business plan software.
There are several advantages to using specialized software:
- You are guided through the writing process by detailed instructions and examples for each part of the plan.
- You can be inspired by already written business plan templates
- You can easily create your financial forecast by letting the software take care of the financial aspects for you.
- You get a professional document, formatted and ready to be sent to your bank.
If you are interested in this type of solution, you can try our software for free by clicking here.
Business plan template for a bakery
Need a little inspiration? Then why not check out our bakery business plan template.
It will give you a better understanding of how to frame your own business plan, as well as what investors are looking for.
That's it for now, we hope this article has helped you better understand how to write a bakery business plan. If you have any questions related to setting up your business, please do not hesitate to contact us.
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