Before You Start Writing Your Bakery Business Plan

By: Adams Brad


Bakeries are places that smell of yummy chocolate, freshly baked biscuits and breads, and sweet cakes, tarts, and pies. For the owner of the bakery, all the sweetness boils down to satisfying his customers and making them come back for more. Competition in a bakery business is too much. While it may appear that there is space for everyone, there could be more to the situation.

A bakery could just be a bakery and not a confectionery. Bakers can supply to different confectioneries in a particular area. For those who operate as both, the feedback for their products will come directly from the consumers. Not all of them have a dining space. This is also an important factor for the customers walking in. At different times, their requirements would be different. Before you start your bakery or even commence with a Bakery Business Plan, there are many things that need to be decided upon.

Let’s take a look at a few:

Things To Consider

• Bakery or Confectionery: The very first decision should be regarding what you will start off as. If your dream is to have a confectionery with a small dining space, you can immediately start as a confectionery. Many confectioners decide to integrate backwards at a later stage. Alternatively, you can start as bakery and then, as you grow, have a confectionery as well.

• Location and Space: Location plays a very important role in any kind of food business. A central location in the town is an obvious advantage, but must be compared with the kind of investment required. Strategic locations are expensive and could be a burden on your budget. Think practically to make the right choice.

The same goes for space. Bakeries do not need a very strategic location. They just need enough space. If you have plans to have your own confectionery soon, look for a space that allows you to expand when you need to. You can also consider a change of location when you grow. That totally depends on how it fits into your budget. Discuss these points with your business consultant.

• Investment in Equipment: Another major investment area would be the equipment. For a bakery, you would need a number of bakery appliances like refrigerators and ovens. Include all the important costs related to expensive appliances in your budget.

• Accurate Revenue Estimation: It may seem like a highly profitable business venture, but you must get down to the truth. Talk to those who are in this business. Margins are low for bakeries. Profits are dependent largely on revenues and revenues are dependent on volumes. Be cognizant of the scenario before you sit down to the planning.

You need to see all these points in totality. There should be clarity on what you want. How it will happen is the next stage. This preliminary understanding will help you get a clearer picture of things. It should help you decide what do you want and in what order. If you are unable to decide, mull over things and discuss them with industry experts. Once you are decided, you can start off with your bakery business plan.

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