How to Open a Bakery: A Business Plan

Written by miko holt
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How to Open a Bakery: A Business Plan
Opening a bakery requires a business plan that communicates goals. (bakery image by Alexey Stiop from

There are many ways to put action into your dreams of opening up a bakery and writing a business plan is the first step. A start-up bakery can be challenging, however the effective business plan can help you secure the financial resources you need. Your business plan is a living document, says author and lecturer, Dr. Timothy Faley in his article “Creating Your Business Plan.” By using a basic outline, you can communicate to investors and banks how and in what ways your bakery will be profitable.

Skill level:


  1. 1

    Write an executive summary. The executive summary page should discuss business growth plans for the future, according to “Anatomy of a Business Plan.” Include eight to ten sentences describing your bakery, include a mission statement. For example, you could write, “ABC Bakery will supply high-end, delicate pastries, catering to exclusive clients.”

  2. 2

    Write a business description. Include the proposed location of your bakery and times of operation. An example statement might be, “ABC bakery will be located in the downtown district and our hours of operation will be Monday-Saturday, 8:00 am to 5:00 pm.”

  3. 3

    Include a products and services page. List all the goods you plan to sell include your proposed price. Write a one-paragraph narrative statement that walks your reader through your proposed price list.

  4. 4

    Write a market analysis. Research and provide a breakdown of at least three competitors. List company name, hours of operation, types of goods they sell, phone number and web address (if applicable). Include one sentence underneath each competitor that explains their position in the market. A sample statement might be, "ZZZ bakery does not cater to wedding parties and does not provide home delivery."

  5. 5

    Write a sales and marketing summary. List marketing strategies. Choose and include business cards, word of mouth, radio advertisements, phonebook adverting or the use of social media. For example, you could write, “ABC bakery will advertise in the local classified section of the 'Daily News' for six weeks.” Choose at least four marketing strategies.

  6. 6

    Create a management profile section. Include information on each employee. Write name, title, and any special skills that this person possesses. Here’s an example, “Maria X, Wedding Cake Decorator, 20 years of making and decorating wedding cakes for local residents.

  7. 7

    Create a budget spreadsheet. Include all proposed costs associated with your bakery. List the cost of rent, utilities, phones, equipment, supplies, website fees, marketing cost and payroll. It is permitted to estimate in this section. Include a line for start-up money you will be contributing. Include tangible and intangible items.

Tips and warnings

  • Proofread and spell check the document for clarity.
  • Include a table of contents so readers can easily navigate your business plan.
  • Some business start-ups hire an accountant to draft a financial projection forecast.

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