Indeed, find a good location for your bakery to offer a wide variety of products (bread and pastries, pastries, light catering products, etc.) and to meet customer demand. Your bakery can quickly generate attractive profits.

 

However, before opening your bakery, you must start by establishing an adequate business plan.

 

Indeed, during the drafting of the business plan, all the strategic aspects of your future bakery are fixed. This document will also be useful for financing your business.

 

How to write a good business plan for your bakery?

What turnover can your establishment generate?

How do you make the provisional budget for this type of business?

Where is the break-even point for a bakery?

How to succeed in the financial part of the business plan of your future establishment?

 

We answer all these questions in the following article.

 

To optimize your chances of success, you can also use our business plan that we have designed for a bakery.

 

Finally, know that our team of experts constantly monitors the bakery market. The summary of his working hours can be found in the documents of the complete package to open a profitable bakery.

BUILDING A BUSINESS PLAN FOR A BAKERY

SHOULD YOU DRAW UP A BUSINESS PLAN BEFORE OPENING A BAKERY?

Of course, writing a business plan before opening your bakery will allow you to:

– understand the dynamics of the bakery market

– follow the evolution of customers’ consumption habits

– identify the success factors of a bakery

– effectively segment your customers

– determine consumption habits

– build an attractive value proposition for your bakery

– analyze the weaknesses of competing bakeries

– identify potential assets for your future business

– establish a 3-year development plan for your business

– develop a suitable marketing plan for a bakery

– analyze the risks related to your activity and the market

– prove the future profitability of your establishment

 

You can meet these objectives by using our business plan for a bakery.

WHAT DOES A BAKERY BUSINESS PLAN CONTAIN?

A business plan contains many figures, data, studies, and analyses. Therefore, it is essential to structure and organize these elements well.

 

The introductory part corresponds to the “Market Opportunity.” This part presents the characteristics of the bakery market, the latest innovations and trends, and the factors that make a bakery successful.

 

The following part corresponds to the “Presentation of the Company,” which will allow us to explain the particularities of your bakery. This part also presents the value proposition of your bakery. Finally, it ends with your presentation as manager of this future business.

 

Then comes the “Market Research” part, which will be used to study market segments and competing bakeries. This part also contains a SWOT analysis, a tool to summarize the strengths and weaknesses of your bakery while presenting the external opportunities and threats.

 

The part we call “Strategy” will allow us to outline a 3-year strategy, with the steps that will enable you to have a profitable bakery. It also includes a marketing plan to attract and retain customers for your bakery.

 

Finally, this business plan introduces a “Finances” section, which will present the detailed financial strategy of your bakery.

HOW TO MAKE THE EXECUTIVE SUMMARY OF A BAKERY?

If you want to build a convincing Executive Summary, you must take up the essential points of the business plan for a bakery.

 

Note that the Executive Summary of a bakery is a document that must be brief and concise.

 

The term “Executive Summary” is often confused with the term “business plan.” However, these last two do not mean the same thing.

 

Although these two documents are linked, the Executive Summary is the document that summarizes the essential points of the business plan. In other words, the Executive Summary represents an introduction to the business plan.

AND THE MARKET STUDY OF A BAKERY?

First, note that the business plan and the market study are two very different documents.

 

To successfully craft this document, use our bakery market research template.

 

The business plan contains a summary of the main elements revealed by the market study.

 

To succeed in your market research, use our market research template designed for a bakery.

 

In the “Market Study” part of our business plan for a bakery, we find in particular:

– updated data on the bakery market

– the latest developments in the bread distribution sector

– the market segments of a bakery

– the SWOT matrix for this type of establishment

– the analysis of competing bakeries

– examples of competitive advantages adapted to this market

 

These elements are fundamental and will allow you to develop a strategy profitable for your bakery.

 

Reminder: the market study is present in the complete package for a bakery, alongside the business plan, the financial forecast, and the executive summary.

THE ESSENTIALS OF A BAKERY BUSINESS PLAN

WHAT IS THE BUSINESS MODEL OF A BAKERY?

A bakery’s business or economic model is the manufacture and sale of bread and other pastries.

 

Generally, a bakery manufactures various bread, pastries (croissant, brioche, etc.) and possibly pastries, catering products (quiches, pizzas, etc.), or even snack products (sandwiches, salads, etc.). ). In addition, the baker generally ensures the selection of the raw materials, the manufacture, and the cooking of the products in compliance with the rules of hygiene and food safety.

 

It must also ensure that it diversifies its product offering to meet the needs of its customers and follow consumer trends. Thus, this job requires management and planning skills.

 

In the business plan for your bakery, you must integrate your business model into the Business Model Canvas.

 

Our business plan, specially designed for a bakery, contains a Business Model Canvas adapted to the reality of a bakery.

WHAT ARE YOUR BAKERY’S MARKET SEGMENTS?

In your bakery business plan, you should present your market segments. Examples of market segments for a bakery are individuals, caterers, or restaurants.

 

The market study of your bakery makes it possible to identify this audience and its different segments.

 

The business plan we wrote for a bakery presents the market segments specific to this sector.

HOW TO STUDY THE COMPETITION FOR A BAKERY?

As we did in a bakery business plan, you need to address the topic of competing bakeries.

 

Also, you will need to discuss their strengths, then compare your bread and pastry offers to theirs.

 

Your business must distinguish itself by presenting competitive advantages.

 

To simplify, competitive advantages are all the assets that will allow your bakery to stand out from the competition.

 

How to find competitive advantages for your bakery? To do this, identify the weaknesses of competing bakeries. It can be limited opening hours, unfriendly staff, or a cold and unpleasant atmosphere.

 

These shortcomings inevitably lead to a little frustration among their customers. It’s up to you to offer better service:

• An ideal location
• The presence of a car park nearby
• Even the development of a tasting area

These are examples of competitive advantages for your bakery.

 

Finally, identify opportunities and threats in the competitive environment in your bakery’s SWOT analysis. This tool allows you to summarize the strengths and weaknesses of your bakery.

 

This SWOT is present in our business plan designed for a bakery. It is written and editable. You will also find the competitive advantages of a bakery in this document.

WHAT MARKETING PLAN FOR A BAKERY?

Show the reader of your business plan that you have a long-term vision by establishing a 3-year development plan.

Here are the kinds of actions that should be included in your business plan:

– Create partnerships with local businesses (groceries, butchers, tobacconists, etc.).

– organize events (bread preparation workshop, tasting day, etc.)

– diversify the range of bread and pastries offered in your bakery

– develop new offers (organic products, gluten-free products, etc.)

– offer the possibility of ordering online and Click-and-Collect

– open a new bakery in another city or another district

– develop in new markets, for example, by becoming a caterer

– hire qualified bakers and pastry chefs

– offer regular discounts to loyal customers of your business

– buy out competing bakeries

– develop your bakery’s presence on social networks

THE FINANCIAL FORECAST OF A BAKERY

HOW TO CALCULATE THE FORECAST TURNOVER OF YOUR BAKERY-PASTRY?

To calculate a bakery’s income, you must first identify the average basket of expenses for each customer in your business.

In the case of a bakery, it should be around 5-10 euros. This amount will mainly depend on the prices charged in your bakery, the variety of products on sale, and the various promotional offers.

Now you need to estimate the number of potential customers who are likely to buy from your bakery.

Launching your bakery will probably take some time before you acquire a significant number of customers. However, this number will increase over the following months (thanks to your marketing and communication efforts). As a result, it is not uncommon to see a rise in a bakery turnover by 15% each year during the first years after opening the business.

Either way, you need to increase your income in the financial part of your bakery business plan.

For an accurate and personalized estimate of your bakery’s income, use our financial forecast for a bakery.

In this financial forecast, you select assumptions, turnover, profitability and all other economic indicators update automatically. In addition, a verification system automatically indicates the corrections to obtain relevant forecasts.

HOW TO SUCCEED IN THE PROFITABILITY STUDY OF A BAKERY?

THE STUDY OF THE BREAK-EVEN POINT OF YOUR BAKERY

The break-even point represents the amount of turnover your bakery must generate to cover all its expenses.

What turnover must be generated to reach this break-even point? How many days per year will it take for your bakery to be profitable? Our financial model for a bakery will help you answer these questions.

The profitability of a bakery is essentially based on two factors:

– the turnover generated by your bakery

– the current expenses of your bakery

HOW TO INCREASE THE TURNOVER OF A BAKERY?

You need a solid marketing strategy to attract customers and set your bakery apart from the competition.

The marketing strategy is a process of study and reflection that allows your bakery to meet existing demand. We mentioned some of these points in the last part.

The complete marketing strategy can be found in our business plan for a bakery.

HOW DO YOU REDUCE THE EXPENSES OF A BAKERY?

The profitability of a bakery is also based on another variable: expenses.

If you want to maximize your bakery’s profits, you’ll need to find ways to minimize expenses.

However, a nuance must be made. Being frugal with your bakery’s starting budget isn’t always a good idea.

For example, it is better to plan a large budget for hiring a good team, as well as for the purchase of quality equipment and materials.

However, you will have to pay attention to the current loads of your bakery.

For example, a major item of expenditure will be the purchase of raw materials. In this case, you can optimize the quantities produced to limit unsold items and thus avoid waste.

As for building a team, the payroll generally represents more than 40% of the annual turnover of a bakery. Particular care must therefore be taken when analyzing this item of expenditure.

Generally, the budget devoted to marketing and communication should not exceed 3% of the turnover of your bakery (except during the first months of activity, during which you must make yourself known).

In your bakery’s cash flow plan, don’t forget to keep an eye on your taxes.

The financial forecast adapted to bakeries indicates the budget allocated to each type of expense.

WHAT ARE THE TABLES, RATIOS, AND FINANCIAL INDICATORS OF A BAKERY BUSINESS PLAN?

If you wish to present a serious financial analysis to a potential financial partner, here is what should be found in the business plan of your bakery:

– estimates as to turnover

– a provisional income statement

– an accounting balance sheet out of 3 years

– a provisional cash budget

– performance indicators

– details of the WCR

– the financing plan

– initial expenses

– graphs and financial ratios