bakery business plan kenya pdf

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Bakery Business Plan PDF Example

• February 28, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful bakery. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your therapy bakery’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a bakery business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the food&beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your bakery concept into reality. Let’s dive in!

Our bakery business plan is designed to encompass all crucial elements required for a thorough strategic approach. It details the bakery’s operations, marketing strategy , market environment, competitors, management team, and financial projections, ensuring a holistic view of the business’s path to success.

• Executive Summary : Offers an overview of your bakery’s business idea, market research , management team, and financial plans.
• Bakery & Location: Describes your bakery’s layout, features, and why its location is perfect for customers.
• Operations: Outlines daily bakery operations, including baking schedules, staffing, and ingredient sourcing.
• Key Stats: Provides figures on the size and growth of the bakery market.
• Key Trends: Points out new trends in the bakery industry, such as the rise in health-conscious and specialty products.
• Key Competitors : Discusses major nearby bakeries and how your bakery offers something different.
• SWOT: Analyzes strengths, weaknesses, opportunities, and threats related to your bakery.
• Marketing Plan : Outlines methods for promoting your bakery and keeping customers coming back.
• Timeline : Lists important goals and milestones from the beginning through the first year.
• Management: Shares info on who runs the bakery and their responsibilities.
• Financial Plan: Forecasts the bakery’s financial outlook over 5 years, including income, profit margins, and main expenses.

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Executive Summary

The Executive Summary introduces your bakery’s business plan, offering a concise overview of your bakery and its offerings. It should detail your market positioning, the range of baked goods and confectionery items you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your bakery will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your bakery’s unique selling points that differentiate it from these competitors. These could include special dietary options like gluten-free or vegan products, artisanal or locally sourced ingredients, or a particular specialty in certain types of baked goods.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the bakery’s success. This could involve their culinary expertise, business management experience, or community relations. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your bakery’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a Bakery, the Business Overview section can be concisely divided into 2 main slides:

Bakery & Location

Briefly describe the bakery’s physical environment, emphasizing its design, warmth, and the inviting atmosphere that welcomes customers. Mention the bakery’s location, highlighting its accessibility and the convenience it offers to customers, such as proximity to community centers, schools, or ease of parking.

Explain why this location is advantageous in attracting your target clientele, which might include local residents, businesses looking for catering options, or foot traffic from nearby shopping areas.

Detail the range of baked goods and products offered, from bread and pastries to custom cakes and specialty items. Outline your operational strategy, including sourcing of ingredients, baking schedules to ensure freshness, and any unique services such as custom orders or catering.

Discuss your pricing strategy , ensuring it reflects the quality of ingredients and craftsmanship involved and matches the market you’re targeting. Highlight any special offerings, loyalty programs, or community events that provide added value to your customers, encouraging repeat visits and customer loyalty.

Make sure to cover here _ Bakery & Location _ Operations

Market Overview

Industry size & growth.

In the Market Overview of your bakery business plan, begin by assessing the size of the bakery industry and its potential for growth. This evaluation is essential for grasping the market’s extent and pinpointing opportunities for expansion.

Analyze factors such as the increasing demand for baked goods, both traditional and innovative, and how consumer preferences are shaping the industry.

Key market trends

Continue by discussing recent market trends that are influencing consumer behavior and preferences in the bakery sector. This might include a growing interest in artisanal and craft baked products, the surge in popularity of gluten-free and vegan options, and the integration of international flavors and ingredients into traditional bakery products.

Highlight the demand for high-quality, fresh, and specialty baked goods that cater to diverse dietary needs and cultural tastes, as well as the trend towards more health-conscious and sustainable baking practices.

Key competitors

Next, examine the competitive landscape, which encompasses a variety of bakeries from luxury patisseries to affordable local bakeries, as well as the rise of home baking and online bakery businesses.

Focus on what sets your bakery apart, whether it’s through unparalleled customer service, a distinctive selection of baked goods, or expertise in a particular baking style or dietary niche.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for the bakery , highlighting Strengths (such as artisanal baking skills and a unique range of products), Weaknesses (including potentially high ingredient costs or stiff competition), Opportunities (for example, a growing interest in specialty and health-conscious baked goods), and Threats (such as fluctuations in raw material prices or changes in consumer spending due to economic conditions).

Marketing Plan

Next, formulate a marketing plan that details strategies for attracting and retaining customers through targeted advertising, seasonal promotions, a compelling social media presence, and engagement with the local community. Consider loyalty programs, baking workshops, and collaborations with local businesses as part of your promotional activities.

Finally, establish a detailed timeline that marks key milestones for the bakery’s launch, marketing initiatives, customer base development, and potential expansion goals. This timeline should guide the business towards achieving its objectives with precision and clarity, ensuring systematic progress in a competitive market.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the bakery’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the bakery towards its financial and operational goals.

For your bakery business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your bakery’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your bakery business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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• Executive summary
• Company overview
• Products and services
• Operation plan
• Market and industry overview
• Sales & marketing plan
• Financial plan
• Risk management plan
• Potential funding sources

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How to profitably open and run a bakery in Kenya

Bakery Business Plan: If you have always enjoyed baking cakes and making pies and also have many people who are always brought to your house by these goodies, you may consider opening up your own bakery so that you can start benefiting from this activity of baking that you enjoy so much. You can also bake bread and other snacks such as scones, biscuits etc.

Budget: Ksh. 350,000 

There are a few things that you need. The first thing is looking for the capital which will all depend on the size of the bakery which you want to open. For a start-up, I advise you go for what is absolutely necessary for starting off. Your capital will be used to buy vital baking equipment that you need, secure a premise and buy your inputs.

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Locating the premises for your bakery will depend a lot on your budget and target market. In most shopping centers and residential areas, you would be able to get a room that suits your needs. With about Ksh10,000 you should get a room that is big enough to accommodate your bakery. You may need to modify or add a few things but this will depend on your capability and needs.

Items Needed

There are items that you must have to set you off with your bakery. Some of them are indicated below.

Bakery Oven

This will be the main equipment you will need for your bakery. Ovens vary in prices, capacity and quality. You therefore need to be sure of what you would like to have. There are various types of ovens in the market that you can choose from which vary in price depending on capacity and its accessories. Companies such as Serviscope (E.A) Ltd in Industrial Area, Benham International and Nairobi Kitchen Care Ltd along Mombasa Road and DK Engineering off Airport North Road in Embakasi area stock a wide range of these baking ovens. The prices range from Ksh150,000 – 200,000.These companies will even advice you on the best bakery oven that will fit your requirements and budget, depending on the size of your bakery. Cheaper ovens costing Ksh 50,000 – 100,000 are available or can be fabricated around Kariobangi area or in most metal workshops.

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Proof Boxes

You will also need proof boxes, which will help in controlling temperatures of the dough and also for bread. These also come in different sizes, your choice will depend on the size of your bakery since there are proof boxes that can hold up to 20 pans. Proof boxes can go for as much as Ksh70,000. These can be fabricated in metal welding workshops but can also be bought from the above mentioned shops.

For hygiene purposes and decency, you should have neat uniforms for yourself and staff, if any. Aprons and headgear are available in local supermarkets and other clothes shops. With a budget of about Ksh5,000, you should be able to get a set or two of uniforms.

Other Items and equipment

Your bakery will also need other equipment and items such as dough mixers, sinks, working table and other small items like slicers, display counter, weighing scale, trays, decorating tools, baking utensils, and packaging paper. These are also available in the companies mentioned above and in local supermarkets. You will also need racks and trolleys, appropriate furniture, a sealer and if the budget allows, a small refrigerator. These smaller items can cost as much as Ksh180,000 when all are put together. Baking pans like the one shown below can be made in metal fabrication workshops around cheaply. Display counters can also be made according to your taste.

With the above equipment and items, you are ready to set up your small or medium bakery.

Do not forget to secure licenses and permits required for your bakery business from the local authorities. The authorities may need to visit your premises for inspection to ensure that you have adequate arrangements in place for health and fire, so be prepared for this.

Bakery Business Plan: Pros

• Financial benefits due to income generated as bakery products are fast moving.
• Does not need many pieces of equipment for a start.
• Easy to learn baking from many institutions around.

Bakery Business Plan: Cons

• Physically demanding.
• Some equipment may be very expensive to acquire.
• Long periods of power outage can adversely affect your business.

For your bakery to be successful, you have to be fully committed. This means that you have to be ready to wake up early in the morning so as to have the pieces of bread and cakes and other things that you make ready on time. Most bakeries sell more in the morning and this, therefore, means that you have to be up earlier than your customers. You should always bake fresh stuff because many people like fresh pieces of bread, rolls and many others. For you to be successful, you also need to be a good listener. Understand what the customers are looking for and try and meet their demands, as long as they are achievable since some demands can be hard to achieve. Once your customers and happy, you will also be happy.

Your distribution channels must also be well thought out. You can deliver to retail shops and supermarkets within your locality or sell off at your counter. With a few assistants, you can combine both. You could also decide to give a few samples to potential clients to hook them to your products. Remember to package your products inappropriate and neat material, well sealed to maintain good hygiene.

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How to Start a Bakery Business in Kenya

Most events, like weddings, graduations and birthday parties, cannot be complete without a cake. This makes the bakery business in Kenya a lucrative venture . To start a cake-baking business in Kenya, you need to have cooking and baking skills. If you like baking cakes, this is a great business idea . 

Write a Bakery Business Plan

To succeed in the bakery business, start by writing a bakery business plan . Make sure to capture startup costs, business location, strengths and weaknesses, risks, sources of bakery business startup capital, and marketing strategies. A business plan also outlines your projected profits. 

Requirements for Starting a Bakery Business 

The following is a breakdown of the items and equipment you need to start a bakery business in Kenya. 

1. Equipment 

• Commercial oven - Ksh 200,000
• Commercial bread slicer - Ksh 100,000 
• Countertop cake display - Ksh 150,000

2. Utensils 

• Electric hand whisk - Ksh 4000
• Nozzle set - Ksh 2,000
• Baking pans - Ksh 2,500
• Dough mixers - Ksh 1,000
• Icing spatula - Ksh 500
• Bakery oven- Ksh 30,000

3. Furniture

• Tables - Ksh 20,000
• Shelves - Ksh 10,000
• Stools - Ksh 5,000

4. Ingredients

• Wheat flour - Ksh 1,500
• Baking powder - Ksh 250
• Margarine - Ksh 2,000
• Icing sugar- Ksh 1,000
• Sugar, milk - Ksh 500
• Eggs - Ksh 350
• Baking powder - Ksh 100

Others requirements for a bakery business include charcoal, cleaning agents, packaging materials and labels, cleaning agents.

How Much Does it Cost to Start a Bakery in Kenya?

To start a bakery business in Kenya, you will need a startup capital of about Ksh 800,000. The amount of money you need largely depends on the business's size, its location, bakery equipment and bakery products to sell.

Find a Suitable Bakery Business Location

Find a strategic business location with a high population and where your business is visible. When looking for a business location, consider your budget , target market, safety and competition. Also, consider the size and space of the bakery and its proximity to suppliers.

Read more: How to start a butchery business in Kenya.

Get Bakery Business License and Permits

It is important that you run a legal bakery business. If you plan to start a full-fledged bakery, you need to register your business  name for Ksh 1,000. Registering a Limited Company bakery business will cost around Ksh 30,000.

You also need to get the following business licenses and permits ;

• A Single Business Permit . You can get this license from your County Government offices. Different counties charge different fees, but it is around Ksh 5,000 annually.
• A Kenya Bureau of Standards (KEBS) License. If you want to run a full-fledged bakery, you will need to get a KEBS License, which costs around Ksh 20,000.
• A Food Handling Medical Certificate. Those handling products in your bakery should be free from disease to prevent possible transmission. It costs Ksh 600 and is valid for 6 months.
• A Fire Safety Certificate. An inspector will inspect your business premises to ensure that, in case of fire outbreak, you have the equipment to fight fires. You will need to have equipment like fire extinguishers. The certificate costs Ksh 3,000 and is valid for a year.
• Food Hygiene Certificate. Your bakery business premises should be clean and safe for food preparation. The cost of the certificate is Ksh 300.

Market your Bakery Business

You need to let people know about your bakery business. You can promote your business by distributing fliers, pamphlets, and brochures. Social media marketing also plays a critical role in the success of your business. Choose the method that works best for you.

Is a Bakery Business Profitable in Kenya? 

Yes. There is a high demand for baked products, both for commercial and domestic use. With a suitable business location and proper marketing and pricing, most bakery businesses usually have a profit margin of 40%. People buy cakes for birthdays and weddings at high prices, while the cost of production is low. 

Also read: How to start a fast food business in Kenya.

Types of Bakery Businesses to Start 

1. retail bakery shop.

A retail bakery shop requires little startup capital . With a retail bakery shop, you can get both custom-order customers and walk-in customers. You need to rent a store where you will be baking cakes and also selling them to customers.

Its disadvantage is that you are likely to end up with left-over baked products. Therefore, make sure to only bake cakes depending on demand. 

2. Custom Cake Shop

A custom cake shop deals with custom orders only, unlike a retail bakery shop that deals with custom order customers and walk-in customers. When you make an order, you can pick it up then or later. It is a convenient baking business since orders are paid for in advance - a deposit or in full.

You don't want to risk having left-over products on bad business days. A successful custom cake shop requires aggressive marketing and great branding.

3. Home-based/ Online Bakery

A home-based bakery is one that you operate from your home. It has lower expenses, and you can slowly grow it over time. Your customers can visit your home to buy, or you can make deliveries to pick-up points.

It requires perfect and consistent marketing strategy. It is best to have a long term plan on how to expand the home based-bakery business.

4. Industrial Bakery

An industrial bakery require large startup capital since it produces baked good in bulk. This setup does not solely rely on walk-in customers. Clients include learning institutions, supermarkets and shops.

You can make huge profits if you reduce production costs. It is best you figure out how you will distribute your products to your customers.

For business consultancy, strategic planning, organizational development, market research, financial management & accounting, risk management and business plan writing at an affordable fee, please reach out to us through a phone call 0728 621 138 or WhatsApp , or email: [email protected]

The success of your bakery business depends on your level of commitment. Make sure to hear and deliver customer requests and instructions on how they want their cakes baked. Customers will always explain how they want their cakes and other products prepared. Excellent customer service is critical for the success of your bakery business. 

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Bakery Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Bakery Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Bakery Business Plan

You’ve come to the right place to create your bakery’s business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their bakeries.

A bakery business plan is a plan to start and/or grow your bakery. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan, and details your financial projections.

How To Write a Bakery Business Plan & Sample

The following information will provide a description of what to include in your bakery business plan along with links to an example for that section:

• Executive Summary – The Executive Summary section provides a high-level overview of your plan. It should include your company’s mission statement, as well as information on the products or services you offer, your target market, and your business goals and objectives.
• Company Overview – The Company Overview section provides an in-depth look at your company, including information on your company’s history, ownership structure, bakery location, and management team.
• Industry Analysis – Also called the Market Analysis, in this section, you will provide an overview of the industry in which your bakery will operate. You will discuss trends affecting the industry, as well as your target market’s needs and buying habits.
• Customer Analysis – In this section, you will describe your target market and explain how you intend to reach them. You will also provide information on your customers’ needs and buying habits.
• Competitive Analysis – This section will provide an overview of your competition, including their strengths and weaknesses. It will also discuss your competitive advantage and how you intend to differentiate your bakery from the competition.
• Marketing Plan – In the Marketing Plan section, you will detail your marketing strategy, including your advertising and promotion plans. You will also discuss your pricing strategy and how you intend to position your bakery in the market.
• Operations Plan – In the Operations Plan, you will provide an overview of your store’s operations, including your store layout, staff, and inventory management. It also includes information on your warehousing and distribution arrangements and a list of long-term milestones or business goals.
• Management Team – In this section, you will provide information on yourself as the talented baker, your team, your experience, and your roles in the company.
• Financial Plan – In this section of your bakery financial plan, you will include your financial statements: income statement, balance sheet, and cash flow statement. It also includes information on how much funding you require and the use of these funds.

Next Section: Executive Summary >

Bakery Business Plan FAQs

How can i complete my bakery business plan quickly & easily.

Learn more about writing a successful plan by using this bakery business plan template .

Where Can I Download a Bakery Business Plan Template?

Get a downloadable bakery business plan template here . 

What Are the Main Types of Bakeries?

A bakery can be retail or wholesale. A retail bakery sells baked goods directly to customers, while a wholesale bakery typically sells products to other businesses, like restaurants, grocery stores, specialty shops, and cafes.

How Do You Get Funding for Your Bakery?

Bakeries are most commonly funded with personal savings and bank loans. Credit card financing and angel investors are also popular forms of funding for bakeries.

Learn More:  Seeking Funding from Angel Investors vs Venture Capitalists

What Are the Main Sources of Revenues and Expenses for a Bakery?

The primary source of revenue for bakeries is its baked good sales. This includes deliveries and online orders. Sometimes bakeries also earn from bulk orders from wholesalers or special occasions.

The key expenses for bakeries are rent, wages and salaries, ingredients and packaging.

What are the Steps To Open a Bakery Business?

Opening a bakery business can be an exciting endeavor. Having a clear roadmap of the steps to open a business will help you stay focused on your goals and get started faster.

1. Develop A Bakery Business Plan - The first step in opening a business is to create a detailed bakery business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your bakery business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your bakery business is in compliance with local laws.

3. Register Your Bakery Business - Once you have chosen a legal structure, the next step is to register your bakery business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to open your bakery business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Bakery Equipment & Supplies - In order to start your bakery business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your bakery business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful bakery business:

• How to Open a Bakery Business

Where Can I Get a Bakery Business Plan PDF?

You can download our free bakery business plan template PDF here . This is a sample bakery business plan template you can use in PDF format.

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How to Start a Small Bakery Business in Kenya [Full 2024 Guide]

Here is the truth; starting a bakery business in Kenya can be very rewarding. If you didn’t know, this is one of the most profitable ventures you can start, even as a side hustle.

But there’s a problem. Starting a bakery might not be as easy as it sounds. There are several things you’ll need to understand before getting started. For instance, you’ll want to know what your customers need, the equipment to use, the most profitable products, and how to find the right location, licenses, and permits… it can all be frustrating if this is your first business venture.

But don’t worry. We have done our research and are going to show you exactly how to start a profitable bakery business in Kenya. We’ll show you what equipment you need, how to find a good location, how to register your business and get the necessary licenses and permits, and so on.

Let me write your business plan...

Not sure where to start your business and need a detailed roadmap? Looking to take your business to the next level? Do you need a well-crafted business plan that can guide your growth and set you on the path to success?

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Tap the button below to chat on WhatsApp or call 0713140158.

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Is a Bakery Business Profitable in Kenya?

Yes, a bakery business can be profitable in Kenya. According to reports, the bakery industry in Kenya has grown significantly compared to 10 years ago. People are depending on baked goods even more; so turning a profit is not going to be a big problem.

However, like any business, profitability is not guaranteed even though there is an insatiable market demand. The amount of profit you make will depend on several factors such as:

• Location: The location of your bakery will no doubt determine profitability. High-traffic areas or areas with a demand for baked goods can significantly boost your chances of success.
• Market Demand: Assess the local market demand for bakery products. Conduct thorough market research to understand your target audience’s preferences and needs.
• Competition: Evaluate the level of competition in your area. A competitive market may require you to differentiate your products and services to stand out.
• Quality and Variety: Offering high-quality and diverse baked goods can attract more customers and increase your profitability.
• Pricing Strategy: Set competitive prices that cover your costs while remaining fair to customers.
• Operational Efficiency: Efficient operations, including inventory management and cost control, can help improve profitability.
• Marketing and Branding: Effective marketing and branding efforts can help you build a loyal customer base and increase sales.
• Regulatory Compliance: Ensure that you meet all regulatory requirements, including licenses and food safety standards, to avoid legal issues that could impact your profitability.
• Financial Management: Carefully manage your finances, including budgeting, cash flow management, and financial forecasting.

How Do I Start a Small Bakery in Kenya?

Here are the exact steps you should follow when setting up your bakery business:

• Sharpen your skills 
• Register the business 
• Choose a location
• Get the necessary bakery equipment

Step 1: Sharpen your Skills

If you don’t know how to bake properly, then you need classes. The secret to acquiring an impeccable clientele base is to give them exemplary sweet treats. There is no need to have a client list before starting the enterprise.

When your first customers love what you are serving, they refer their family and friends to you. In a considerable period, the business will be booming. Baking classes are not very costly and do not take very long either.

If you trust your wits, try tutoring yourself with YouTube videos to perfect the art. Some good bakers are fully self-taught, it is not mandatory to go to school for it. However, it will cost you less than Ksh.20, 000 if you decide to get the classes.

Some of the best schools to learn baking  in Kenya include: 

• Utalii College 
• Boma International Hospitality College 
• Amari Baking Center 
• Nairobi College of Bread and Confectionery Technology 
• Valentine Cake House 
• Terrian Pastry & Baking School

Alternatively, you can find someone already in the business to train you. You can work under them for some time as you learn, then start your own business when you are confident in your skills.

Step 2: Register your Business 

First, you do not have to register your small bakery as a limited company. However, you still need to do online registration of your business name on Ecitizen. This will cost you Ksh.1000. The process is simple and has minimal waiting time. 

Registering your business does not only make it legit, but it also allows you to brand your products too. On top of that, you will need a business permit. Most business owners get permits from their local county government. The cost varies from one county to another, considering the type and location of the business.

Apart from that, you will also need to acquire some licenses. These are:

Food Hygiene Certificate

This certificate shows the whole premise is kept clean and hazard free. It ensures your clients that where you store and bake your goodies is up to standard. A Food Hygiene Certificate goes for a minimum of ksh.300 and is valid for one year.

Food Handling Medical Certificate

Whether you plan to have an employee or not, you need to ensure everyone involved in the baking process is free from diseases. That is where this certificate comes in. It is renewable every six months and costs Ksh.600.

Fire Safety Certificate

Most of the appliances you will use to bake use electricity. Therefore, you need to prepare yourself beforehand in case of a fire hazard adequately. This certificate is valid for one year and goes for Ksh.3 000.

Once you start making good returns, you can register it as a limited company for about Ksh.30, 000 and get a KEBS license for around Ksh.20, 000. This will turn your small bakery business into a fully-fledged business.

Step 3: Choose a Location

A small bakery does not need a lot of space. If you are on a tight budget, you can start baking from the comfort of your home. That way, you save some money on business permits and licenses. On the other hand, you can get a small room in a busy area for rent for Ksh.10, 000 or less.

If you rent a space, you must make it fit for baking. There are various bakery setup options; choose the one that suits you best. After setting that out, you must furnish it with the right, functional bakery equipment. More on that is below.

Step 4: Get the Required Bakery Equipment and Necessities

One rule in business is you should never get more than necessary for a startup. On this basis, we will divide our basic bakery equipment into three categories. That is;

• Appliances 
• Ingredients  

Mandatory electronics include an oven, electric hand mixer, and fridge, among others. The oven is the most expensive item on the list, going for about  Ksh.20, 000 to Ksh.30,000. You can start with a small fridge which you will get for less than Ksh.20, 000.

The electric hand mixer will cost you around  Ksh.4, 000. In total, you will spend roughly Ksh.50, 000 on appliances only.

There are several utensils you should buy. They range from baking pans to icing spatulas to a nozzle set to measuring cups. On average, you will use about Ksh.10, 000. That will cover these and any other essential utensils you will need.

Ingredients

Before getting the ingredients you need, you should figure out which baking niche you will be flowing with. Do you want to bake cakes only? Which type of cake? Will you mix with cupcakes, cookies, doughnuts, brownies, and rolls, for example?

Once you answer these questions, proceed to get whatever you may need. Survey the market, and go for the best deals you will find. Some basic ingredients every baker needs include:

• Wheat flour
•  Baking powder
•  Icing sugar
• Flavor Essence

While it is better to buy in bulk at lower prices, remember not to purchase more than what you need for a certain period.  You will need a total of around Ksh.15, 000 for all the basic ingredients.

Other Necessities

Currently, most bakers prefer to use an electric oven. That means your electricity bills will shoot up. So it is important that you put this into consideration while budgeting. You will also need to publish some fliers or brochures for advertising and showing the options you have to offer.

Not forgetting packaging materials and labels, among other subtle things you might need as you work. Finally, you will need to look the part. Get a good apron and a chef’s hat for you and any other employee you will have aboard. The cleaner and more professional you look, clients will trust your bakes.

Useful Tips to Grow Your Bakery

Once your certificates, skills, location, and basics are in check, open up immediately. Sometimes the best way to learn is on the job, so don’t procrastinate. Once your business is up and running, here are a few tips you can borrow:

• Your products are perishable, and people need them fresh . Bake them on order or in little batches equivalent to the customers you get daily.
• Your customers are always right . Strive to make sure you deliver what the client wants or even outdo their expectations. Consult with them if you lack something, like their fondant color. 
• Have affordable products but don’t overdo it . As much as you want customer-friendly prices, remember it is a business that needs to make profits to keep moving. Be reasonable and fair.
• Keep learning . As time goes by, learn to make new contemporary bakes as they come. That will ensure you remain relevant and do not lose your customers to your competition.
• Brand yourself and have a signature delicacy . Instead of baking different mediocre goods, why not a perfect one and possibly add in a secret ingredient? The goal is to have a bake that will help you build a brand.
• Offer delivery services . Take your pastry straight to the customers as they order. You can strike a deal with a delivery guy and pay him weekly or monthly, or per trip. Charge your customers a small fee, or make it free within your area. The convenience will draw you more customers.

So there you have it, all the know-how on how to start a small bakery in Kenya. As long as you check on all the factors above, you will be off to a good start. When you eventually start, keep the tips handy and watch your small bakery grow commendably.

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L.K. Nathans

I am a personal finance enthusiast and digital marketer. My work here is to help you navigate your financial journey and achieve your main money goals. Through Omoka Digital, I provide practical tips, strategies, and insights on budgeting, saving, investing, and debt management. My aim is to empower you with the knowledge and tools you need to make informed financial decisions and improve your financial well-being.

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How to Start and Run Your Own Small Bakery

January 23, 2018 Published by: Lucky Mwachi -->

Getting into entrepreneurship is becoming a popular trend among youth in Kenya. Starting a small bakery business is a profitable business idea you can explore especially if you have a passion for cooking. That said, owning a bakery business needs a lot of commitment and capital but it’s a great way to earn extra income. A bakery is also a good business idea because baked goods are quite popular and move quite fast. Baking also requires little to no formal training but if you need to sharpen your skills, you could consider taking a few baking classes.

If a bakery is a business you would like to get into, here is what you need to know.

1. Getting Started

Register the bakery – If your plan is to run your bakery as a full fledged business, you will need to register your company name (cost – approx 1000Ksh.), register your limited company (cost – approx 30,000Ksh.), get a KEBS licence (cost – approx Ksh. 20,000) and a single business permit (cost varies from county to county)

Licences – To run a bakery business, you’ll also need these licences;

 Food handling Medical Certificate – This certificate makes sure people who handle your food are free from disease. It costs Ksh. 600 and is valid for 6 months.

Food Hygiene Certificate – Valid for a year and starts at Ksh. 300 depending on the size of the business.

Fire Safety Certificate – Valid for a year and costs Ksh. 3,000.

2. The Business

Get Your Recipes Ready – Create a list of all the baked goods you intend to sell. Start with a few items and diversify to more products with time. Prepare a Menu. Prepare a Price list that puts in consideration the cost of ingredients, labor and any other expenses.

Get Your Ingredients Ready – Purchase all the ingredients you need; flour, sugar etc. Also purchase packaging materials, labels, boxes and anything else you’ll need.

Marketing – Find out your target market. Baked products sell quite fast in offices, schools, canteens and local kiosks. Where exactly is your demand?

Figure out how to grab the attention of your target audience by using specific marketing strategies like using fliers, posters, social media, etc.

Network – Attend relevant events, workshops and meetups organized by bakers groups in order to grow your networks.

3. Investment

Starting a small bakery will set you back any amount between Ksh.100, 000 – Ksh. 150, 000 inclusive of licenses and required business permits. Here is a breakdown of the basic items that you’ll need to start out.

Basic Ingredients (prices are approximated)

TOTAL INVESTMENT: 11,000 + 36,250 + 12,550 = KSH. 59,800

Depending on the quantity and demand of your baked products, you can make up to Ksh. 5000 a day.

Expected challenges

• Price fluctuations of raw materials like sugar, flour.
• Baked goods are perishable thus they need ready market when they are still fresh.

Just like any other business, starting a small bakery is not a smooth sailing venture. However, as long as you have figured out your target audience,  get the required equipment, get the required ingredients, have your recipes in place, figure out your workspace, get all the required licenses & permits and a marketing plan, you are ready to go.

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Professor Luvisia Digital

Business Plan for a Bakery Business in Kenya

Embark on the delectable journey of entrepreneurship with Professor Luvisia Digital Bakery. This business plan is your compass to navigate the sweet world of the bakery business in Kenya. Picture the aroma of freshly baked delights, the warmth of a cozy bakery, and the satisfaction of creating moments through irresistible treats. Before you dive into the flour and sugar, remember, this plan is a guide. Visit existing businesses, talk to experienced bakers, and absorb the nuances of the trade. Now, let’s whisk together the ingredients for your success in the bakery business. ( Note: I use my brand name as the Business name when writing these Business plans, consider creating your own business name).

Executive Summary

Mission Statement

Professor Luvisia Digital Bakery aspires to delight taste buds by crafting high-quality, visually appealing, and delicious baked goods for our community in Kenya.

Business Goals

1. Establish Professor Luvisia Digital Bakery as a trusted and beloved bakery brand.

2. Provide a diverse range of baked goods that cater to varying tastes and preferences.

3. Create a warm and inviting ambiance in our bakery to enhance the customer experience.

4. Foster community engagement and contribute positively to local events.

Company Description

Professor Luvisia Digital Bakery is not just a bakery; it’s a haven for those seeking an indulgent escape into the world of flavors. Our team of passionate bakers is committed to delivering not just baked goods but memorable moments of joy.

Bakery Business in Kenya

Market analysis.

Industry Overview

The bakery business in Kenya is a flourishing industry with a growing demand for fresh, high-quality baked products. Professor Luvisia Digital Bakery aims to carve a niche by offering a unique blend of creativity and flavor.

Target Market

Our primary focus is on families, working professionals, and event planners who appreciate premium-quality baked goods for daily indulgences and special occasions.

Competition

While the market has established bakeries, Professor Luvisia Digital Bakery stands out through innovative recipes, attention to detail, and a commitment to customer satisfaction.

Our bakery services include:

1. Artisan Bread: Freshly baked bread using quality ingredients.

2. Custom Cakes: Unique and personalized cakes for all occasions.

3. Pastries and Desserts: A delectable range of pastries and desserts.

4. Event Catering: Providing baked goods for events and celebrations.

5. You are free to add more products.

Business Model

Our business model is centered around the production and sale of high-quality baked goods through our physical bakery, online orders, and event catering services.

Marketing Strategy

Online Presence

Creating an appealing website and leveraging social media to showcase our products and engage with customers. [Estimated Cost: KES 30,000]

Word of Mouth

Encouraging satisfied customers to spread the word through referral programs and incentives.

Partnerships

Exploring partnerships with local cafes, event planners, and businesses for mutual promotions.

Local Advertising

Utilizing local advertising methods such as flyers, community notice boards, and local radio.

Sales Strategy

1. In-Store Sales: Offering a welcoming ambiance and exceptional customer service to drive walk-in sales.

2. Online Sales: Facilitating easy online ordering and delivery services for customer convenience.

3. Event Catering Sales: Tapping into the event market by offering catering services for special occasions.

  Startup Budget Allocation

1. Equipment and Ingredients: KES 40,000

2. Marketing and Advertising: KES 30,000

3. Permits and Legal Requirements: KES 10,000

4. Operating Costs (3 Months): KES 20,000

5. Contingency: KES 10,000

Capital Breakdown

Tools and Equipment

– Baking ovens, mixers, and utensils: KES 30,000

– Initial inventory of flour, sugar, and other ingredients: KES 10,000

– Website development and social media promotion: KES 30,000

Permits and Licenses

– Business registration and health permits: KES 10,000

Operating Costs (3 Months)

– Rent, utilities, and miscellaneous expenses: KES 20,000

Contingency

– Unforeseen expenses: KES 10,000

Financial Projections (First Year)

Revenue Projections

1. Months 1-3: Establishing brand presence and building a loyal customer base.

2. Months 4-6: Increasing sales through local advertising and online presence.

3. Months 7-12: Expanding revenue with event catering services and seasonal promotions.

Expense Projections

2. Marketing and Advertising:  KES 30,000

3. Permits and Licenses: KES 10,000

Risk Analysis

1. Market Trends: Changing consumer preferences may impact sales and demand for certain products.

2. Supply Chain Issues: Disruptions in the supply chain could affect the availability of key ingredients.

3. Competition: Increased competition from existing or new bakeries may pose challenges.

 Conclusion

As the aroma of fresh-baked dreams fills the air, Professor Luvisia Digital Bakery invites you to join us on this delightful journey. Follow us on all social channels as Professor Luvisia Digital, subscribe to our blog, and share in the joy of baking. For personalized business plans and bakery insights, email us at [email protected]. Let’s create sweet memories together!

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Starting a Bakery Business Plan (PDF)

A bakery can also be known as a pastry shop or a confectionary. When dealing with the bakery industry we are looking at products such as bread, cakes, pastries, cookies, muffins, and pies, amongst others. It is basically food products baked from flour or other grain meals. A bakery business is a very profitable venture if operated efficiently. It is not enough to be able to make good bread or cakes. A bakery business is an enterprise that requires resources and planning. The quality of your output is important. However, you also have to create an environment within which customers can access your products at great prices. At the highest level, the bakery business is capable of producing incredible profits and prestige. This article will outline how to start the bakery business, and the bakery business plan – PDF, Word and Excel.

Above all you should develop a passion for the enterprise given the hard work that is required of you. The great thing about this model is the possibility of transitioning from other corporate endeavors straight into bakery. Moreover, you can do it as a side business without hindering your other profession. The range of possibilities includes a family-owned and run home business. You can also become a major corporate entity that caters for major events.

Market Research

Before you go further along with the bakery business this must be your primary focus. Who do you intend to cater for? This question is your launch pad into ultimately coming up with a comprehensive marketing strategy for your bakery business. In fact, insights from your market research have ripple effects towards all other components in setting up the bakery business. You must appreciate the fact that you must niche which entails targeting a particular market. It’s not that easy to cater for the whole breadth of the market because that might be unsustainable due to high costs. Therefore you must be diligent enough to figure out which specific portion of the market you’ll target. When conducting market research you must closely study people’s eating out behaviours, check the age range dynamics and also analyse the levels of income of your prospective target market. This is why it is important to have a good bakery business plan before you start this business.

Location and Premises

This here is a component that’ll be greatly informed by your target market. You want a scenario where your bakery store is ideally located at a spot characterised by high volume vehicle and foot traffic. It shouldn’t just be about traffic only though; it must be close to or in an area where your intended customers are abundantly found. Another vital feature to consider is the availability of adequate and secure parking space and easy access to mass transportation. The best approach to take is to locate your bakery shop in an area close to other businesses that can lead to customer inflows for you. For instance, locating it at a shopping centre, shopping mall or central business district (CBD) creates prospects of regular customer inflows. The premises should be large enough to accommodate all your equipment, offices, and space for customers. Your bakery business plan should cater for the costs of buying or leasing the premises.

Competitive Analysis

There are already established bakeries wherever you might think to start a bakery business. There are also new and upcoming bakeries as well. Thus you cannot turn a blind eye to competition. You have to study all your competitors to figure out their business profiles. This entails their products and services, market shares, distribution network, operating times, payment methods, customer segments, and so on. A thorough look into all this shows you loopholes and market gaps.

You have to seek to build a bakery business that has several differentiators. Tweaking operating hours can become one of your differentiators. A strategic location can also be a differentiator. It could be a unique product range that can differentiate you. Maybe it could be allowing online orders, payments and offering home deliveries. All these aspects are best figured out after studying your competitors. Remember, consumers are always looking for convenience and cost savings.

Equipment for a Bakery Business

The bakery will require a variety of equipment. The fixed items will delve a lot into your initial capital outlay. This is because you will typically purchase big ticket items such as ovens, fridges, mixers, bakeware, bread slicers, display case and utensils. The costs of purchasing the bakery equipment should be included in your bakery shop business plan. You may consider purchasing preowned equipment as a way of cutting down your startup costs.

Permits/Licenses, Insurance & Business Bank Account

Permits/licenses.

The first thing is to register your bakery business. After that you must get properly licensed. A bakery business is in the food industry. In the food industry there are strict regulatory frameworks to adhere to. You will need to apply for a business license from the relevant often local (municipal) authorities. Prior to getting that food license your earmarked premises will be thoroughly inspected. It varies from place to place but there will be a long list of things your premises must have or satisfy. Some of the critical areas inspected or inspected for are drainage system, waste management system, ventilation system, sanitary facilities, and Hazard Analysis and Critical Control Points (HACCP), amongst others.

Insurance & Business Bank Account

There are so many things that could go wrong in a bakery. Important assets can get damaged or destroyed. There are several risks that can affect workers as well. The smartest thing to do is to get insured. Contact your nearest, reputable insurance provider and get the necessary guidance. This might seem unnecessary but when something happens in the future you will be glad you got insured.

Then buttress insurance by opening a business bank account for your bakery business. It helps make financial management easier. Most importantly it will help separate your personal finances from those of your bakery business. In the event something catastrophic happens with the bakery business, it will sink alone. It will not sink with you. This is a principle in financial literacy many people in business are yet to grasp.

Bakery products

There are so many different types of bakery businesses that you may want to explore. Your decisions are determined by four primary considerations:

• The amount of capital that you have
• Your skills and competencies
• The business aims, goals and objectives
• The tastes and preferences of your customers

Each of these factors can change throughout the planning and implementation process for the bakery business. Therefore, you need to constantly adjust your bakery business and product selection accordingly. You have a number of options and niches that might just suit your client base. Examples of products that your bakery can offer include bread, muffins, rolls, cakes, donuts, buns, pizza, tortillas, cookies, biscuits, pies, bagels, scones among others. The products you are going to offer should be included in your bakery business plan.

Staff And Management

The effective running of a bakery business requires a significant workforce. As a rule of thumb, your bakery staffing needs are always informed by your intended scale of operations. Some of the key areas in this business are operations management, financial management and inventory management. At the minimum you need pastry chefs, waiters, cashiers and logistics personell. Other required staff include accountants, supervisors, security team, stock controllers and managers, though this depends on the size of your bakery.

Your bakery should have sufficient number of well trained staff. This is because repeat purchases and ever-growing customer inflows are a product of swift and quality service from the staff. Having a small or skeletal staff makes it very difficult to provide swift service. Remember we are living in a fast-paced world where people don’t want to be kept waiting for too long. The salaries of all your employees must be catered for in the bakery store business plan.

Marketing Plan

An official launch is important.

Kick-starting your bakery business can get a boost from doing an official launch. This follows that you would have set up a website and social media accounts. This also follows that you would have been active and engaging with people online and on the ground. All that must culminate into an official launch along with a press release. You can offer free samples on the day as well. Adorn the place and make it lively on the day such that it attracts people. People generally love new outlets, new offerings, and free food. Your initial pricing should be penetration pricing. This means you price lesser than existing players to lure customers to your business. Make the most out of the official launch.

Used A Blended Marketing Approach (Offline And Online)

Afterwards the focus becomes building your audience online. By the way, incorporating online ordering and payments on your website will be a game-changer. Regularly post useful, fun, and informative content daily. Conduct online competitions with giveaways of your products or branded items. All your promotional material, be it physical or virtual, must be high definition. That is a must in the food industry if you want your marketing material to stand out. If your scale of operation is substantial consider potential bulk, recurring clients. Engage them with proposals on how you can be their supplier. These can be companies, food outlets, schools, and the like.

The market for bakery is huge and ever increasing. There is always huge demand of different types of  baked goods. The market for a bakery include individuals, families, hotels, guest houses , supermarkets, companies and organizations. Your bakery should have fair prices that keeps you in business. Do not be tempted to compromise on quality as a means of correcting errors in your budgeting process. Those entrepreneurs that are running local family businesses should be careful about giving discounts to loved ones. This is because they could end up destroying the bakery business before it gets a chance to establish itself. A proper marketing strategy should be included in the bakery business plan.

Keys To Profitability

Your choice of location is a major part of making your bakery business profitable. You ideally need a spot that has high human and vehicle traffic. If that is not possible then the important key becomes your distribution network. The other key is to cultivate a huge clientele mostly comprised of bulk and recurring customers. These are customers who require your products in bulk daily. Economies of scale are a major aspect; scale your operations sooner. Identify your major costs and manage, preferably lessen them. For instance, 60 percent of costs may go to raw materials and remuneration. Your product range must be diversified and comprehensive but informed by market demand. This will ensure you always have and sell fast-moving products. This is one of the best food industry businesses you can start. There is vast room to diversify. You can scale and can pivot if needs be. Best of all, the market for baked foods is always there.

Pre-Written Bakery Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the bakery business, we encourage you to purchase our well-researched and comprehensive bakery shop business plan. We introduced the business plans after discovering that many were venturing into the bakery shop business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global bakery business plan will make it easier for you to launch and run your bakery business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for bakery. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the bakery shop business.

Uses of the Bakery Shop Business Plan (PDF, Word And Excel)

The bakery shop business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your bakery business
• As a bakery shop business proposal
• Assessing profitability of the bakery business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Bakery Business Plan (PDF, Word And Excel)

The business plan for bakery shop include, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Industry Analysis
• Market Analysis
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in the bakery business fail, so that you can avoid their mistakes
• Ways to raise capital to start your bakery business

The bakery shop business plan package consists of 4 files

• Bakery Business Plan – PDF file (Comprehensive Version – 83 Pages)
• Bakery Business Plan – Editable Word File (Comprehensive Version – 83 Pages)
• Bakery Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 41 pages)
• Bakery Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the percentage markup, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Bakery Shop Business Plan (PDF)

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Get the Bakery Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your bakery business! Check out our collection of business plans  , and more business ideas .

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Download Now: Bakery Business Plan Templates for 2021

A bakery business isn’t that difficult to start but it comes with a lot of planning. You can’t just release all your baked goods overnight without carefully planning how you’re going to market and sell it. You will need to figure out your menu, where to get your supplies, the costing for each of your baked goods, and how to package them. You will have to jot everything down, lay the groundwork for all your needs, and set goals to meet them.

If your love and passion for baking have made you decide to put up a bakery, then you’re in the right place to figure out how to start on one. As with all other businesses out there, you will need a business plan and we’re here to help you how to make one.

Why Do You Need A Business Plan?

Do you need a business plan for a bakery?

A business plan is a guideline to help you figure out what direction your business is heading and what goals you want to achieve. It’s also a great plan to present to banks if you’re looking for a loan and for potential business partners if you’re looking for investors. But most of all, you need a business plan to help yourself. It will serve as your guide on how to achieve your goals and even compute your possible profit.

By the end of this guide, you’ll be able to draft up your business plan or you can use the template we’ll provide that’s available to download below.

Executive Summary

Start your bakery business plan with an executive summary section. This section is all about providing brief information on your business without getting all the details in. The goal of this section is to get the whole picture of what your bakery is all about at a single glance.

Just 2 to 3 sentences per category should be enough to express your ideas. You’ll get the chance to explain everything specifically in the later part of the business plan.

Introduction

Imagine having a booth at a food fair with dozens of other businesses right next to you. What are the things you can put on your sign that when a customer passes by they’ll be able to figure out what you’re selling in just a couple of seconds?

That is what you are going to write in your introduction. You are going to supply information that’s eye-catching, attention-grabbing, but also sticking to the realness of your bakery.

Related Reading: The 6-Step Marketing Growth Plan for a Home-Based Bakery

Here’s an introduction example you can follow:

Quick Bites is a bakery that offers a new take on the bread scene for New Yorkers on the go. All the buns are stuffed with delicious filling, both savory and sweet to satisfy a hungry tummy in need of that quick snack that’s conveniently packaged to eat on the run.

Just by reading that example, you’ll know that Quick Bites is:

• A bakery that supplies buns with filling that is either savory or sweet.
• Located in New York.
• Catered for people looking for a quick snack.

Capture your reader’s attention by keeping things light yet informative in this part of the business plan.

Company Description

Write a company description.

Every bakery business has a background. You’ll want to include how many years in the making has your bakery idea been going around and who is in charge of it. Will it be a partnership? Will you be doing the baking and managing at the same time? Putting in a little bit of your bakery’s background helps give the reader a brief understanding of what your business’s managing strategy is going to be.

The first thing on your mind when you decided on putting up a bakery is probably the menu. And though that’s quite exciting to draft up at once, you’ll have to decide on the services you’re going to offer first by figuring out what kind of bakery you’re going for.

Here is a guide to choose the type of bakery you want:

• Full service – This includes having your own space with a kitchen and baking area, a display area for your baked goods, and dine-in options with drinks such as coffee or tea.
• Take-out service – This is a type of bakery where you have a small space just to display your baked items and offer a drink or two. Customers can just line up and order your buns to go.
• Online – This type of business does not require any space. This is all done in your kitchen at home. Customers will just place their orders online and will pick them up or have them delivered.

By deciding this early on, you can have a clear image of what your bakery is going to look like and how it will operate.

Customer Focus

Cake bakery display case.

We know what you’re thinking: everyone is your potential customer. And though that is the goal, you still need to list down your target customers so you can focus on a certain product line to sell.

Take for example Quick Bites. As mentioned in the introduction, the bakery is for those who are looking for a quick snack to eat. Therefore, their target customers are mostly working people who do not have time to sit down for a meal and are looking for a convenient yet delicious food replacement while still having the time to work.

Related Reading: 101 Creative Bakery Names You Can Use Right Now

With this focus in mind, Quick Bites’ product line of filled buns fit this category since busy people can eat their buns with one hand only so they can focus on doing other things instead.

Again, be sure to keep this short. You can add in the details later on in the Target Market section of the business plan.

Mission Statement

Every business has a vision no matter how small it is. If you just plan to have a simple bakery up and running, you still have goals to meet. This is how businesses succeed since a mission statement allows owners and staff to be reminded of the direction they’re heading.

An example mission statement for Quick Bites would go like this:

Quick Bites’ mission is to serve a variety of freshly baked bread, particularly buns with different filling, that can satisfy a hungry tummy on the go. Our buns are nutritious and are packed with only real ingredients. No artificial flavors will be used and no preservatives are added. Our bakery is committed to making quick meals that are convenient to eat while working and we ensure that they are also healthy and affordable.

Company Concept

It’s time to get all the details down for your bakery’s concept. Think of it as the longer and more detailed version of your executive summary. This section is quite easy and fun since you can now list everything you’ve planned your bakery to have.

Will you be serving artisanal bread? How about puff pastries? Will you be including cakes? Will you also be offering coffee and tea? Will you be baking on the premises or will you have a commissary located somewhere? What are your operating hours?

All these things are important so list down everything you can think of that discusses what your bakery’s concept is going to be.

Market Analysis

Learn more about Jennifer Jacobs.

At this point, you’re probably wondering why you should care about analyzing the baking industry around you when all you want is to just bake your bread and sell them.

Well, let’s put it this way: baking bread might be easy but the selling part may be a little difficult if you don’t know your target market, the bakery business trend in your area, and the competition around you.

Target Market

Writing down your target market is easy since you already mentioned it above on your Customer Focus section. Just add in more details so you or anyone else who will read this will understand more about which group of people do you cater to.

Include the following in your target market list:

• Working-class or students
• Location (local office workers, neighborhood families, etc.)

Industry Analysis

To ensure your bakery is going to be a success, analyze the trend surrounding this type of business in the area you’re planning to open this up. For instance, if you’re like Quick Bites whose target market is the working class, then you’ll need to check the area around your planned bakery if this is a place where several offices are located.

You may also include a study on whether or not people like artisanal bread or healthy bread. This can help you check whether your planned menu can sell successfully or not.

For online bakery businesses, you can focus on the factors that people tend to look at when they’re ordering food online. This includes:

• The preferred number of days for pre-orders.
• Delivery times and rates.

Competitive Analysis

You’ll have to come to terms with the fact that you’ll have competition once you open your bakery business. That’s not entirely a bad thing. Having competition can help you analyze the prices for your baked items and it would also draw in interest from other potential customers. The trick here is to be better than the rest and that is why you are doing this business plan so you can succeed when you start selling your items.

If you are putting up a physical store, list down the bakeries surrounding your potential location. If you are an online store, you can also compare other online bakeries in your neighborhood.

You may even do a comparison. Write down the top three business names of your competitors, their strengths, and their weaknesses, and see where your bakery stands out.

Management Structure

Knowing the roles each person plays in your bakery business is important. It sets a clear and distinct understanding so that no arguments will happen in the future regarding their duties. This is particularly helpful when you’re in a business with a partnership so there are specific roles and duties indicated per person.

But even if you’re running the business on your own, it’s still important to write it all down so you’re aware of what else you need to do and if you need to delegate some tasks.

Related Reading: Learn how a Culinary Grad Built a $26k/Month Pastry Shop.

You can divide these into the following:

• Management Team – These are the people who will be running the business, those who will be in charge of sales and marketing, bookkeeping, filing and processing of legal documents, research and implementation, and ordering of supplies.
• Bakers – These will include the people in charge of baking your products.

For a bigger bakery with dine-in capacity, you may include these as well:

• Servers – These will include the people who will prepare the food to serve such as reheating bread or assembling them.
• Baristas – If your bakery is serving coffee, these are the people in charge of working the espresso machine.

However, some bakeries have their servers work as baristas at the same time so it’s important to state this clearly so your employees will know their duties.

• Cashiers – These people are in charge of manning the counter for any purchases.
• Clean-up Crew – These will include people who are responsible for cleaning the tables, dishes, and everything else that you need to sanitize your bakery.

Product Line and Services

Cake pops are a favorite at bakeries.

This section is the moment you have been waiting for. This is where you’ll place all the products you are going to offer in your bakery. Be it puff pastries, sandwiches, or artisanal bread, just be sure to write them all down. Be specific and indicate the prices as well.

Aside from your product line, you can include other services you wish to offer. Do you do wedding cakes? How about customized cakes? Would you be willing to supply bread to other businesses? Are you open to catering? Putting this all down in this section will help you organize your thoughts so you can put them into action carefully.

Sales and Marketing

A very helpful way to start marketing your bakery is to combine your target market and product line to bring attention to what you’re selling. For Quick Bites, since their target market is for people on the go, they can push how convenient their buns can be eaten while they’re walking on the street. They can also advertise the many flavors of buns they can offer from sweet fillings such as custard or jam to savory ones such as pepperoni, cheese, or vegetables.

Social media is also a great way to market your business. By putting up nicely photographed images of your bread and knowing the right trending hashtags to use, you can capture a huge number of followers.

But if there’s one marketing plan that’s overlooked by many, it’s taking advantage of the sense of smell. Freshly baked bread is pleasing to the senses and can entice customers to check out what you’re baking. So if you have a physical store, use the delicious smell of your baked bread by letting it waft out into the streets to lure passersby. You’ll be surprised just how fast people will flock to your bakery when you allow the scent of your baked goods to fill them.

Financial Plan

Red rose cupcakes.

We’re now on to the nitty-gritty part of the business plan. This includes where you’re going to get the money to fund your bakery and forecast the expenses and possible profit you’re going to make. Why is this important? It’s so that you’ll know early on if the concept, product line, and proposed services you’re going to offer in your bakery is profitable or not.

Keep in mind that you don’t really need a lot of money at all if you’re just starting your bakery business. As previous guest on the podcast Jennifer Jacobs explained , she spent the first few years operating a home-based bakery business. Jennifer operated her business for years while holding down a full-time job, before opening the doors to her first retail space. This is the path she recommends for other food entrepreneurs too.

Funding Request

The only thing you need to focus on this section is to ask yourself, where are you going to get the money to start your bakery? Whether it is a small online business wherein you’re the only one who will be doing the baking and selling, or it’s a big bakery with dine-in options and lots of staff, you have to be clear where to get the capital for all of this.

Getting a loan from the bank or inviting investors are a few options you can choose. This is also the reason why you’re making this business plan to convince them to give you a loan or to join in funding your bakery.

Financial Forecast

Bakery Food Truck.

You will need to list down all your planned expenses for your bakery. For a simple online bakery business, this includes:

• Refrigerator
• Packaging Materials
• Ingredients (flour, sugar, salt, butter, etc.)

If you are planning to open a physical store with dine-in options, you’ll also have to include these:

• Store signage
• Bread display rack
• Point-of-sale system
• Chairs and tables
• Trays, plates, and cutlery
• Espresso machine

You’ll also need to spend on your advertising materials whether these are in social media or print. The bottom line is, listing down all your proposed expenses can help you forecast the amount of money you need to start your bakery. According to professional bakers we interviewed for this piece, starting up a bakery costs $100,000 and $750,000. With these numbers, you can then set up a budget and start looking around for affordable equipment for your bakery.

Aside from your expenses, you’ll also need to do a break-even analysis so you know if you’ll be able to receive any profit from your proposed product line and services.

Operational Plan

Attention Bakery Founders: Download our Food Business Startup Kit for Startup Templates

Writing all your plans down is one thing but to set up a timeline for your operations is another. This sets the gears in motion for when you plan to execute your business.

Do a simple timeline following this example:

Date Plan [Insert Date Here] – Finalize the design and layout of the bakery and secure all rental documents such as permits and business registration.[Insert Date Here] – Start construction.[Insert Date Here] – Hiring and training of staff. You may also start advertising your bakery’s products and opening date.[Insert Date Here] – Start operations for the bakery.[Insert Date Here] – Achieve goals and reach break-even.

This is an example of a physical bakery store. For online bakeries, your timeline should be shorter and simpler.

This section is where most of your documentation to back up your business plan is included. You can also add photos of your bakery’s layout, your proposed design packages, and payroll plans.

Download Templates

Here are templates and real bakery business plan examples you can use as inspiration to setup your own business structure. These are available for download in PowerPoint, Google Docs, and PDF files.

• Bakery Business Plan PowerPoint  
• Bakery Business Plan Google Docs 
• Bakery Business Plan PDF
• If you are planning to open a physical store, be sure to delegate tasks. It’s fun to be hands-on with everything going around your bakery but you can’t manage the counter and be the baker at the same time. So appoint specific people for different roles but also have them multitask so you don’t hire too many people.
• Plan your menu accordingly. You do not want to bake a lot of bread and let them go to waste at the end of the day. Study the foot traffic around your area as well as your possible bestselling item. For instance, if Mondays are the busiest, then maybe you can double up on your recipes for a certain bread that everyone seems to like best. But you can slow it down on Tuesdays and focus on other items instead.

Don’t be intimidated in starting up your bakery and making this business plan. The point of the business plan is that it’s supposed to help you go through the finer details of your bakery. If the whole bakery business plan seems too complex for you then you just failed in understanding the purpose of it. It has to be easy to read and understand because it will serve as your guide.

Where are you planning to open your bakery? We’re just as excited as you are for this new adventure and look forward to hearing about the plans you put in place. Don’t forget to sign up for our free Food Business Startup Kit for exclusive interviews with bakery founders.

Want to start your own food business?

Hey! 👋I’m Brett Lindenberg, the founder of Food Truck Empire.

We interview successful founders and share the stories behind their food trucks, restaurants, food and beverage brands. By sharing these stories, I want to help others get started.

If you liked this story, sign up for our newsletter that includes our food business startup kit and most popular interviews sent straight to your inbox.

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About the Author: Brett Lindenberg

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