Small Bakery Business Plan PDF [With FREE Sample Inside!]

Starting a bakery?

Developing a solid business plan is essential, but crafting one can be daunting and time-consuming.

This in-depth guide breaks down exactly:

• what to include in your plan
• providing a downloadable template
• real examples, and
• tips to get your bakery up and running smoothly.

Key Sections of a Small Bakery Business Plan

Creating a solid business plan is crucial when starting a bakery.

This plan outlines every component required to establish and grow your business.

Here are the key sections to include in your small bakery business plan:

Section 1: Executive Summary

The executive summary is a brief overview of your entire business plan. It highlights the key points of each section.

Though it comes first, it’s easiest to write this after completing the rest of the plan.

Keep it short and compelling. The executive summary should capture readers’ attention and make them want to learn more about your bakery.

Section 2: Company Description

This section provides background on your bakery company. Include details like:

Business name and address:

• Example Bakery Name: Sweet Treats Bakery
• Address: 123 Main St, Cleveland, OH 44102

Type of business entity:

• Sweet Treats Bakery will be registered as an LLC (limited liability company). This provides personal liability protection for the owners while still allowing pass-through taxation.

Mission statement and business philosophy:

• “Sweet Treats Bakery aims to spread joy throughout Cleveland by providing fresh, artisanal baked goods made with quality, local ingredients. We believe in giving back to the community and operating an ethical, sustainable business.”

Short background on founders:

• Sweet Treats Bakery was founded by Amanda Smith, a Cleveland native with 10 years of experience working in artisanal bakeries in France and Italy. She is a graduate of the Culinary Institute of America and is passionate about bringing authentic French and Italian baking techniques to her hometown. Amanda will serve as head baker and manage daily operations.

Section 3: Products and Services

Detail the products and services you will provide. For a bakery, this includes:

Types of baked goods:

• Breads – Sourdough, baguettes, focaccia, milk bread, brioche, etc. Breads range from $3 – $7 per loaf.
• Pastries – Croissants, danishes, muffins, scones, cinnamon rolls, etc. Pastries range from $2 – $5 each.
• Cakes – Carrot cake, chocolate cake, red velvet cake, lemon cake, etc. 6-inch cakes are $35 and serve 6 people. 8-inch cakes are $45 and serve 10 people.
• Pies – Apple pie, pumpkin pie, pecan pie, key lime pie, etc. 9-inch pies are $25 each.
• Cookies – Chocolate chip, oatmeal raisin, peanut butter, sugar, etc. Cookies are $2 each or $15 per dozen.

Expense	Estimated Cost
Bakery equipment (ovens, mixers, etc.)	$10,000 – $15,000
Ingredients and packaging	$5,000 – $10,000
Rent (including security deposit)	$2,000 – $5,000 per month
Licenses and permits	$500 – $2,000
Starting inventory	$5,000 – $10,000
Marketing and advertising	$2,000 – $5,000
Insurance	$2,000 – $8,000
Professional fees (accountant/lawyer)	$1,000 – $5,000
Total	$27,500 – $60,000

Ingredients used:

• We source flour, eggs, milk, butter, and produce from local farms within 50 miles of our bakery. Our chocolate, nuts, spices, and other specialty ingredients are sourced from small-batch suppliers around the world.

Baking methods:

• All items are baked from scratch onsite daily using classic techniques. Our bread involve long fermentation and traditional oven hearth baking for artisanal quality.

Custom baking options:

• We provide specialty cakes and desserts for weddings, birthdays, celebrations, and corporate events. Customers can choose designs, flavors, and decorations.

Additional offerings:

• We serve Intelligentsia coffee, Harney & Sons tea, local kombucha, and craft soda. Customers can enjoy baked goods onsite or takeaway.

Section 4: Market Analysis

Thorough market research is required to assess the viability of a bakery. This section outlines:

Customer demographics and target market:

• Cleveland has a population of 400,000 with a median age of 35. Our target demographic is middle and upper-middle-income adults aged 25-50.

Competitor analysis:

• There are 5 existing bakeries in our target market area in Cleveland. Our differentiators are a specialty in French/Italian technique, locally sourced ingredients, and elegant cafe ambiance.

Market size and trends:

• The bakery industry has average annual sales of $3 billion nationwide. Sales are projected to grow steadily at 2% per year over the next 5 years.

Industry outlook and growth projections:

• Artisanal bakeries represent 15% of the overall bakery market but are the fastest-growing segment, increasing at 6% per year. Industry profit margins average around 12%.

Section 5: Marketing Plan & Sales Plan

The marketing and sales plan outlines how you will promote your bakery and attract customers. Cover your:

Branding strategy:

• Create a warm, nostalgic brand identity with a custom logo, packaging, and slogan: “Taste the Love in Every Bite”.

Pricing structure:

• Use premium pricing for high-quality ingredients but offer seasonal promotions.

Advertising methods:

• Website and SEO – Hire a web developer to optimize the site for local SEO terms like “Cleveland bakery”.
• Social media – Post photos of products and offer deals on Instagram and Facebook. Run targeted ads.
• Print ads – Place ads in local magazines and newspapers highlighting the grand opening.

Retail strategy:

• Sell products online for pickup and delivery within 20 miles. Partner with 3-5 local cafes to supply baked goods wholesale.

Section 6: Operations Plan

This section details the day-to-day running of your bakery. Include information on:

Business location and facility requirements:

• We will lease a 2,000 sq ft retail space in downtown Cleveland. It requires commercial ovens, ventilation, a 3-compartment sink, a grease trap, an ADA bathroom, and parking for 10 cars.

Production equipment needs:

• Major equipment needed includes 2 deck ovens ($15K each), a 20-qt mixer ($5K), a dough sheeter ($3K), a proofing chamber ($2K), plus small wares.

Suppliers and supply chain:

• Flour from City Flour Mill (2x weekly deliveries), eggs and dairy from Farmer’s Coop (weekly), and specialty ingredients from online suppliers like Valhrona Chocolate.

Expense	Estimated Cost
Cost of goods sold (ingredients, packaging)	30-50% of sales
Rent	$2,000 – $5,000
Payroll	$2,000 – $10,000
Utilities	$500 – $1,500
Marketing	$500 – $1,500
Insurance	$150 – $600
Accounting	$200 – $500
Total	$5,350 – $19,100+

Operating schedule and staffing requirements:

• Open Tuesday to Sunday, 7 am – 7 pm. Closed Mondays. Staffing requires 2 bakers, 3 counter servers, 1 dishwasher, and the owner as head baker and manager.

Licenses and permits required:

• General business license, food handler licenses for all staff, health department kitchen permit, fire department safety permit.

Section 7: Management and Organization

Provide details on your management team and organizational structure.

Identify:

• Key personnel and owners
• Staff positions
• Professional advisors – accountants, lawyers, etc.
• Organizational hierarchy

Section 8: Financial Plan & Projections

The financial plan is incredibly important for securing funding and managing ongoing finances. Cover:

Startup costs:

• Estimated startup costs are $65,000, including:

• Lease deposit: $10,000
• Renovations: $15,000
• Equipment: $25,000
• Initial ingredients/packaging: $5,000
• Licenses & permits: $2,000
• Marketing materials: $3,000
• Initial insurance: $2,000
• Contingency fund: $3,000

Month	Estimated Sales
1	$5,000
2	$7,500
3	$10,000
4	$12,500
5	$15,000
6	$20,000

Funding sources:

• We will invest $20,000 in personal savings and seek a small business loan for $40,000.

Cash flow projections:

• In Year 1 we estimate monthly revenues of $30,000 and expenses of $22,000, resulting in $8,000 in positive cash flow.

Revenue forecasts:

• Annual revenue is projected to be $360,000 in Year 1, growing to $550,000 by Year 3.

Profit and loss projections:

• Net profit is projected at 15% of revenue per year after expenses. This equates to a $54,000 profit in Year 1.

Section 9: Appendix

The appendix includes any supporting documents that provide further insight into your business. This can include:

• Photos of products, store location, etc.
• Key personnel resumes
• Market research data
• Legal documents – leases, contracts
• Letters of support from suppliers etc.

Download the Small Bakery Business Plan PDF

A sample PDF business plan is a great way to get started on your plan. You can download a free template here:

This professionally formatted PDF includes sample text, helpful tips, and space to input your details. Use it as a guide for structuring and preparing your plan.

Full Business Plan Example: Sweet Treats Bakery Business Plan

Executive Summary

Sweet Treats Bakery is a new bakery starting in Cleveland, OH aiming to be the leading provider of high-end baked goods in the area.

Amanda Smith, a graduate of the Culinary Institute of America, will leverage her 10 years of experience in top bakeries to introduce authentic French and Italian baking to Cleveland.

Sweet Treats will differentiate with artisanal quality, locally sourced premium ingredients, and elegant café seating. Products include breads, pastries, cakes, pies, and cookies ranging from $2-$45. Startup costs total $65,000 funded through loans and personal savings.

Revenue is projected at $360,000 in Year 1 with a positive cash flow of $8,000/month. Sweet Treats will change the bakery landscape in Cleveland through quality and service.

Company Description

Sweet Treats Bakery will be registered as an LLC located at 123 Main St, Cleveland, OH 44102. Our mission is to spread joy in Cleveland by providing fresh, artisanal baked goods made with quality, local ingredients.

We believe in giving back to the community and operating an ethical, sustainable business. The bakery is founded by Amanda Smith, a graduate of the Culinary Institute of America who brings 10 years of experience in bakeries in France and Italy.

Her expertise in traditional French and Italian baking techniques sets Sweet Treats apart. Amanda will serve as head baker and oversee all operations.

Products and Services

Sweet Treats Bakery provides a wide selection of baked goods freshly prepared onsite daily. Our offerings include:

• Breads – Sourdough, baguettes, focaccia, etc. Breads range from $3 – $7 per loaf.
• Pastries – Croissants, danishes, muffins, scones, etc. Pastries are $2 – $5 each.
• Cakes – Carrot cake, chocolate cake, red velvet cake, etc. Cakes range from $35 – $45.
• Pies – Apple pie, pumpkin pie, pecan pie, etc. Pies are $25 each.
• Cookies – Chocolate chip, oatmeal, peanut butter, etc. Cookies are $2 each or $15 per dozen.

We source flour, eggs, milk, and produce from local farms within 50 miles. Our chocolate, nuts, and spices come from small-batch suppliers around the world.

Custom cakes and desserts are made to order for special events. The bakery serves Intelligentsia coffee, Harney & Sons tea, local kombucha, and craft soda. Customers can enjoy items onsite or takeaway.

Market Analysis

Cleveland has a population of 400,000 with a median age of 35. Our target is middle and upper-middle-income adults aged 25-50.

The bakery industry sees $3 billion in annual sales nationwide, growing at 2% per year. Artisanal bakeries represent 15% of the market but are the fastest growing at 6% per year with 12% profit margins.

Cleveland has 5 competing bakeries currently. Our differentiators are specialty French/Italian techniques, quality ingredients, and elegant café.

Marketing Plan

Sweet Treats will focus on the following marketing strategies:

• Branding – Logo, packaging, and slogan to match our nostalgic, craft positioning.
• Pricing – Premium prices for high-quality with seasonal promotions.
• Web presence – Optimized website and SEO to drive local traffic.
• Social media – Instagram and Facebook for photos, deals, and paid ads.
• Print ads – Local magazines and newspapers for the grand opening.
• Retail – Online ordering for pickup/delivery within 20 miles. Wholesale supply to 3-5 local cafes.

Operations Plan

Sweet Treats will lease a 2,000 sq ft space in downtown Cleveland. Buildout will require commercial ovens, ventilation, a 3-compartment sink, a grease trap, an ADA bathroom, and parking for 10 cars.

Major equipment includes 2 deck ovens, a 20-qt mixer, a dough sheeter, and a proofing chamber. Flour, eggs, and dairy will be sourced from local farms while specialty ingredients come from national suppliers.

The bakery will be open Tuesday to Sunday from 7 a.m. to 7 p.m. and closed on Mondays. Staffing requires 2 bakers, 3 counter servers, a dishwasher, and the owner as head baker/manager.

Required licenses and permits include a general business license, food handler license, health department kitchen permit, and fire department safety permit.

Management & Organization

Amanda Smith, founder and head baker, will oversee all bakery operations. An assistant baker will be brought on as demand grows.

A social media manager will handle digital marketing and content. Accounting and legal needs will be outsourced.

Financial Plan & Projections

Estimated startup costs total $65,000 including lease deposit, renovations, equipment, ingredients, marketing, licenses, insurance, and contingency. We will invest $20,000 in personal funds and seek a small business loan for $40,000.

Year 1 revenue is projected at $360,000. With expenses of $22,000/month, this results in a positive monthly cash flow of $8,000. Net profit is expected at 15% of revenue. Revenue is forecast to grow to $550,000 by Year 3.

Short Sample Small Bakery Business Plans

Reviewing plans from existing bakeries can provide inspiration and insight. Here are two sample plans for small bakeries:

Example 1: Sally’s Sweet Treats Bakery

Sally’s Sweet Treats is a new bakery in suburban Cleveland, Ohio aiming to be the top specialty cake provider in the region.

Their plan highlights expansion goals to open multiple locations in the coming years.

It includes franchising as a strategy for growth and leveraging corporate partnerships for ongoing revenue.

Example 2: RJ’s Artisan Baked Goods

RJ’s Artisan Baked Goods is a startup bakery launching in Portland, Oregon.

Their plan focuses on leveraging the booming artisanal food scene in Portland.

It emphasizes high-quality, locally sourced ingredients and scratch baking methods.

They have a specialization in artfully decorated wedding cakes.

Next Steps After Completing Your Small Bakery Business Plan

Once your business plan is complete, follow these next steps:

• Review the plan with a small business advisor, accountant, or lawyer to get professional feedback.
• Begin establishing your brand identity – logo, packaging, and marketing materials.
• Research locations and assess options to secure a commercial kitchen and retail space.
• Apply for required licenses and permits.
• Seek startup funding through loans or investors if needed.
• Connect with suppliers for ingredients, packaging, and equipment.
• Start hiring staff and training.
• Plan your grand opening!

FAQs On Small Bakery Business Plan PDF