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How to Open a Bakery (with Pictures), bakery business plan.#Bakery #business #plan

How to Open a Bakery

If you’ve ever dreamed of opening a bakery, your chances of success may be high: baked goods and bakeries are among the fastest-growing industries for small businesses. In 2010, bakeries accounted for 2.1% of the US GDP. [1] . You’ll need some planning and entrepreneurial savvy, but if you’re willing to work hard, you can make a name for yourself – or at least for your cupcakes and baguettes.

Steps Edit

Part One of Three:

Planning Your Bakery Edit

Bakery business plan

Bakery business plan

Bakery business plan

Bakery business plan

Bakery business plan

Bakery business plan

Bakery business plan

Bakery business plan

Bakery business plan

Bakery business plan

Part Two of Three:

Opening Your Bakery Edit

Bakery business plan

Bakery business plan

Bakery business plan

Bakery business plan

Bakery business plan

Bakery business plan

Bakery business plan





Business plan for a bakery: Pretty Little Cakes bakery, bakery business plan.#Bakery

Business plan for a bakery

Bakers of quirky, fun cupcakes with unusual flavours, our favourite being Raspberry Fudge!

Pretty Little Cakes Bakery is a start-up bakery that is located in Somerset West, Cape Town. Pretty Little Cakes expects to catch the interest of a regular loyal customer base with its quirky and fun corporate image, and unusual flavour cupcakes. The company aims to dominate the market in Somerset West due to the owner s industry experience and the lack of competition in town.

Pretty Little Cakes Bakery will offer a broad range of Cup Cakes with unusual flavours such as Rainbow Cupcake, Gingerbread flavour, Banana Rum, Rose Petal, Raspberry Fudge and trusted favourites like Red Velvet, Vanilla and Strawberry. The bakery will provide freshly baked cupcakes at all times during business hours and will also bake to order for orders larger than 12 cupcakes.

The cake industry has experienced significant growth in recent years in South Africa and especially in Cape Town. Pretty Little Cakes wants to establish a large customer base of regulars and will therefore have taste days on every first Friday of the month, where loyal customers can taste as many new flavour cupcakes as they like, for a set price. This will hopefully attract a steady stream of wedding planners and/or brides to be. This will ensure stability by creating a healthy and consistent revenue base.

Laura Fields has extensive experience in baking and has been supplying a large customer base from her home for the last 4 years. She will be assisted in Managing the bakery as a retail entity by her sister and partner, Samantha Taylor. Samantha has been the national buyer for the Wholesale Baking Company since 2004, and recently joined her sister at Pretty Little Cakes after investing in it.

Pretty Little Cakes have raised R150 000 between the two owners investments and have applied for a bank loan of another R50 000, bringing the Bakery s total capital to R200 000.

PLC expects sales of about R800 000 in the first year, based on previous sales from Laura s home business of selling cupcakes. Thereafter the owners anticipate an increase in sales of about 15% per year, as their bakery increases in popularity (this growth figure is based on market research conducted by JBC media group).

The main objective is:

Bakery business planTo become a local focal point of interest

Bakery business planTo break even by the end of the year.

Pretty Little Cakes aspires to offer high quality baked goods at a competitive price, that will create a loyal customer base.

The bakery hopes to become a cornerstone in the community by creating a neighbourhood atmosphere where patrons feel relaxed and become instant regulars.





How to Write a Bakery Business Plan #best #business #loans

#bakery business plan

#

Sugar and spice and everything nice that’s what bakeries are made of, right? The model looks easy enough when it seems like a new cupcake bakery opens every week.

Private research firm AnythingResearch.com listed bakeries and baked goods as its eighth fastest-growing industry hospitable to small business this year, saying “growth may be the result of people cutting back on larger entertainment expenses (e.g. vacations) and choosing instead to spend more on daily indulgences.”

Without the right recipe, however, dreams of getting a bakery off the ground could crumble like a cookie. This guide will show you how to perfect your recipe for success.

How to Write a Bakery Business Plan: Conduct a Market Study

There’s little doubt that bakeries are big. Bakeries, pastry shops, and bagel sellers are growing at a rate of 5 percent, according to AnythingResearch.com. To figure out if a bakery can provide you with a sweet payoff, however, you’ve got to have a plan.

Start with an in-depth market study that profiles the target customer base, current sales in the market area for the product category, pricing and product features of competitors, plans for differentiation in the proposed products and expected sales, recommends Kirk O’Donnell, vice president/education at the American Institute of Baking .

Next, after determining a research-based sales estimate, look at cost structure, which O’Donnell says starts with building and equipment. He suggests the following questions:

How much building space is needed?
What is the cost of the building space?
Do you need flexibility for expansion?
What is the specific equipment needed?
What is the cost of installation of equipment?
Will you need vehicles for transportation?

Once these costs are known, then costs of ingredients and packaging can be determined from sales projections and current commodity costs, O’Donnell said. But don’t forget staffing needs, transportation and distribution. Determine the number of people needed for production, sales, and their projected salary and benefits.

Finally, estimate all overhead costs and sources of income to help determine your required financing.

Sound like too much work? Maybe you can follow the route taken by Paul Sapienza, owner of Sapienza Bake Shop in upstate New York.

“I took over from my dad who didn’t ask for one,” he says, laughing.

How to Write a Bakery Business Plan: Software or Business Professional?

No need to worry about your lack of business school credentials. Online resources can assist in formulating your bakery business plan such as this sample on Bplans.com. The “Cupcakes Take the Cake” blog had an active discussion about a year ago featuring a video log of Cincinnati’s Funky Brick Bakery efforts to launch its business. And there’s software, such as Business Plan Pro, to help you along.

Neither O’Donnell nor Sapienza is completely sold on the software, however.

“The software that I have seen for bakery management normally focuses on inventory management, scheduling and record-keeping,” O’Donnell says. “In other words, (it’s) a help in managing a business, but not in writing a business plan.”

Sapienza, vice president of operations for the Retail Bakers of America. recommends paying a professional to write the plan or asking a b-school professor for advice.

Kevin VanDeraa, owner of Cupcake in Minneapolis, opted for a hybrid approach when developing his plan. He used software and took advantage of the local chapter of SCORE. which prides itself on being “counselors to America’s small businesses.”

“Partner with a small business association. There are a lot of free resources,” VanDeraa says. Most importantly, he suggests viewing the plan as an evolving document, not something to be filed away once the business gets going. “Go back to it and compare your estimates to your actuals,” he says, “and you’ll have a more realistic sense of how to move the company forward.”

Dig Deeper: How to Write a Great Business Plan

How to Write a Bakery Business Plan: What’s in a Name?

Never underestimate the pull of a good name.

When Adriano Lucas opened a New York City bakery called The Best Chocolate Cake in the World, the press, well, ate it up. The mini-chain, which only has one U.S. location, got mentions in both The New York Times and New York magazine before its grand opening in June. Hoards of hungry choco-holics consumed 400 cakes during opening weekend alone.

The key to a good name, according to BabyCakes NYC owner Erin McKenna, is one that strikes a good mix between “warmth and comfort.”

“The name needs to be short and immediately identifiable to the product, not trying to sound too girly or precious,” she said.

For VanDeraa, picking out the name was the hardest part.

“I wanted the name to convey both coffee shop and bakery, to imply you’re going to get both here,” he says. “I had to give it up for a while. I was just calling it ‘Minneapolis coffee shop.'”

Inspiration struck while he was having margaritas with friends. Cupcake was an immediate hit. “I was really lucky,” VanDeraa says. “It was before the trend.”

How to Write a Bakery Business Plan: Let Them Eat (cup)Cake?

Of course, VanDeraa is referring to the cupcakery explosion.

The much-hyped “Sex and the City” movie sequel helped to put cupcakes in the news again. Hello Cupcake in Washington, D.C. even had a cupcake/movie tie-in with specialty treats inspired by each character.

The popularity of cupcakes is good news for owners like McKenna, who opened her second vegan bakery, BabyCakes LA, in January. But even good news has its limits, she said.

“I don’t think cupcakes are the problem. The press swooning over them so much that people want to by nature reject them is the problem,” McKenna says. “If someone’s going to open up a cupcake bakery, I don’t think they should play up the adorability of it. Just have more a focus on the food.”

Van Deraa found in his market research that a standalone bakery concept didn’t appeal much to his target audience. They wanted soups and sandwiches, too, he said.

He adjusted his model. In addition to baked goods, Cupcake also serves breakfast all day, quiche, paninis, salads and soups. And six different categories of cupcakes simple, gourmet, premium, party line, baby and celebration.

The diverse offerings drive the business year-round, he says. In winter, customers come for the soup. Many come in daily for their morning coffee. Some have never even tasted the cupcakes, he said.

“It’s helped us as a business to have more offerings especially if there’s a diet fad,” he says, with a laugh. “That was a big stroke of luck.”

The bakery-and-restaurant model like Panera Bread and Dunkin Donuts is the more profitable model for most owners, Sapienza says.

“I’m aware that Mrs. Fields and Famous Amos started in the kitchen, but very few make the leap (to a successful business),” he says, adding that “cupcakes might be the exception to the rule.”

Whatever model you choose, don’t forget to add the following to your recipe: two cups of passion, an extra serving of hard work and an ounce of luck.





Organic Bakery Sample Marketing Plan – Marketing Vision #business #economics

#bakery business plan

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Marketing Vision

Orti’s Organic Bakery is built around the belief that eating a healthy, organic breakfast can have a significant impact on a person’s health and attitude, as well as the environment. Orti’s also believes that customers can have great tasting organic baked goods if the right attention is paid to sourcing, recipes, and consistency.

Orti’s Organic Bakery will launch a first location at Union Station in, in Wilder, to serve commuters and build a local brand which can be leveraged into additional locations in the coming years. Orti’s will build a following through advertising, referral marketing, and a loyalty program.

This marketing plan will allow Orti Franklin, the owner, to focus his marketing efforts by taking the long view, and looking for results on a daily and weekly basis to see that the chosen tactics are successful.

Get practical ideas and good models with dozens of examples of successful

marketing plans with Sales and Marketing Pro.

1.1 Goals

  • Devote at least 40 hours per month specifically to marketing
  • Obtain at least one speaking engagement per month related to organic food and living
  • Set up operations so that it is possible to take two weeks vacation in second year of operation

  • Achieve total annual revenue of over $300,000 in year 2
  • Achieve an average monthly transactions per customer of 6 by end of year 4
  • Achieve average monthly spend per customer of $36 by end of year 3

  • Raise funding to expand or franchise in the fourth year of operation after the concept and brand has been proven
  • Achieve 99.5% customer satisfaction (199 in 200 customers leaves satisfied)
  • Achieve 15% market of Union Station breakfast customers by end of year 3

  • Reach 5,000 e-newsletter subscribers by end of year 3
  • Achieve Orti’s Organic Bakery club membership of 3,500 by end of year 3
  • Have 15 business referral partners by end of year 3

1.2 Purpose

Orti’s Organic Bakery’s marketing plan is designed to document the path the business plans to take to work towards its ultimate goal of becoming a serious player in the Wilder area organic movement and to make a difference in the community by being a vocal proponent of organic eating and living. We truly believe that organic food is not a gimmick – it is a path to a healthier and more sustainable life. We also believe that customers need not give up good taste in order to eat healthily, as the right recipes can bring the two together.

1.3 Picture

If Orti’s Organic Bakery achieves its mission, the path will be paved for the business to open locations throughout the Wilder area. Not just organic devotees, but Wilder locals in general will come to know Orti’s Organic Bakery is synonymous with great tasting baked goods. In this future, the organic living market will grow and be a market force to be reckoned with and no longer a niche. Orti’s products will appeal to this organic living market as well as anyone seeking high quality baked goods.

Customer will seek out an Orti’s Organic Bakery location and find comfort in the consistent service and taste, and the transparency with which the business describes its ingredients and their sources. The customer won’t mind waiting a few minutes in line in order to purchase, and will enjoy sitting with a paper at the counter to enjoy their fresh scone, croissant, or bagel.

1.4 Gap Dashboard

The Gap Dashboard will be reviewed on a monthly basis and includes many key marketing metrics which are reviewed on a weekly basis:

  • Personal goal results are tracked by Orti Franklin directly to see that he is achieving recognition as an expert in the field, devoting ample time to marketing work, and achieving a sustainable work-life balance
  • Business goal result are tracked in the accounting system
  • Tactical goal results are tracked in the CRM system where all information related to these tactics is entered
  • Strategic goal results are tracked by Orti Franklin on a monthly basis, based on customer complaints (to determine satisfaction level) and financial reports from Union Station (to determine market share achieved)

Gap Dashboard





Dessert Bakery Business Plan Sample – Executive Summary #internet #business

#bakery business plan

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Dessert Bakery Business Plan

Executive Summary

Rutabaga Sweets is a dessert bar and bakery located in the Business Improvement District (BID) of Washington DC. We can loosely be described as a quick-service restaurant where customers sit around a bar and watch their desserts being made. The show, as well as the dessert, is our main selling point.

Rutabaga Sweets will hold true to its vision of being a new concept with an old fashioned feel in order to become a favorite spot for DC natives. As the reported national leader in money spent in restaurants, Washington DC is an optimal location for launching a new restaurant concept. Rutabaga Sweets also hopes to become a destination for the thousands of tourists, both American and foreign, who visit DC every year.

We plan to manipulate our location in the Business Improvement District to our utmost advantage. Both tax incentives and high traffic due to the MCI Center will give us an edge as a new business. As the BID fills up with new businesses over the next few years Rutabaga Sweets will receive an added boost of increased traffic. Therefore, we are aggressively planning for a 50% increase in sales the second year of business.

By creating a new niche in the restaurant industry, Rutabaga Sweets will increase sales by more than $145,000 over three years while maintaining a gross margin of 80%. Through a philosophy of “nothing but the best” regarding both product and service, Rutabaga Sweets will establish itself as an exceptional dessert bar in Washington DC. We also will gain a competitive advantage in take out and catered desserts.

This plan outlines our company concept, philosophy and forecasted financials. Rutabaga Sweets hopes to find seed money of $300,000 to launch our business in June of this year.

Need actual charts?

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1.1 Objectives

  1. Attain sales of $166,000 in the first year.
  2. Increase second year sales by 50% and third year by 30%.
  3. Expand to two stores by the third year of business.

1.2 Mission

Rutabaga Sweets is a hospitality company dedicated to providing high-quality desserts in a comfortable atmosphere for clients who seek a fun “gourmet” experience outside restaurants. We intend to make enough profit to generate a fair return for our investors and to finance continued growth and development in quality products. We also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas, and hard work.

1.3 Keys to Success

  • Dedication to the finest quality ingredients and “make it happen no matter what” customer service.
  • Ongoing employee education and recognition programs.
  • Give back to the community.

Your business plan can look as polished and professional as this sample plan. It’s fast and easy, with LivePlan.





Bakery Business Plan Sample – Executive Summary #business #link

#restaurant business plan

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Bakery Business Plan

Executive Summary

Jolly’s Java and Bakery (JJB) is a start-up coffee and bakery retail establishment located in southwest Washington. JJB expects to catch the interest of a regular loyal customer base with its broad variety of coffee and pastry products. The company plans to build a strong market position in the town, due to the partners’ industry experience and mild competitive climate in the area.

JJB aims to offer its products at a competitive price to meet the demand of the middle-to higher-income local market area residents and tourists.

JJB is incorporated in the state of Washington. It is equally owned and managed by its two partners.

Mr. Austin Patterson has extensive experience in sales, marketing, and management, and was vice president of marketing with both Jansonne Jansonne and Burper Foods. Mr. David Fields brings experience in the area of finance and administration, including a stint as chief financial officer with both Flaxfield Roasters and the national coffee store chain, BuzzCups.

The company intends to hire two full-time pastry bakers and six part-time baristas to handle customer service and day to day operations.

Products and Services

JJB offers a broad range of coffee and espresso products, all from high quality Columbian grown imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail.

The bakery provides freshly prepared bakery and pastry products at all times during business operations. Six to eight moderate batches of bakery and pastry products are prepared during the day to assure fresh baked goods are always available.

The retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine climate in southwest Washington stimulates consumption of hot beverages throughout the year.

JJB wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure stability of the business. In addition, tourist traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.

JJB expects to raise $110,000 of its own capital, and to borrow $100,000 guaranteed by the SBA as a ten-year loan. This provides the bulk of the current financing required.

JJB anticipates sales of about $491,000 in the first year, $567,000 in the second year, and $655,000 in the third year of the plan. JJB should break even by the fourth month of its operation as it steadily increases its sales. Profits for this time period are expected to be approximately $13,000 in year 1, $36,000 by year 2, and $46,000 by year 3. The company does not anticipate any cash flow problems.

Need actual charts?

We recommend using LivePlan as the easiest way to create graphs for your own business plan.

1.1 Mission

JJB aims to offer high quality coffee, espresso, and pastry products at a competitive price to meet the demand of the middle- to higher-income local market area residents and tourists.

1.2 Keys to Success

Keys to success for JJB will include:

Providing the highest quality product with personal customer service.





Bakery Business Plan Template – Download Free Sample #small #business #advice

#bakery business plan

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Bakery Business Plan Template

PandaTip: The beginning of an executive summary for a bakery should encompass the story of how you conceived the idea for your business and lay out the vitals – the name of the creator, the basic location at which it will be located, etc. It is just important that your reader comes away from the first paragraph knowing the most basic information about your business and if someone asked what you were doing, they could accurately answer that question in a sentence. Next, you should highlight what separates your bakery from other bakeries. Is there a certain design theme you will have amongst your baked goods? Do you specialize in gourmet cupcakes? Whatever it is you are doing to differentiate yourself and become a talking point for your potential clientele is going to be the most important detail of your business. Make sure it is well thought out and articulated within your business plan. Location is always important for a bakery but if you are going to be in a city, your location may be of particular importance as foot traffic can be a huge boon for your business. Thus, this should be at the forefront of your executive summary – for instance, will you benefit from patrons visiting restaurants in the area? Anything else you can think of that is relevant, put it in there. The goal of your executive summary is to paint a picture for your reader in a concise package.

Additionally, if you are looking for funding, you may want to place something similar to the following at the bottom:

In order to fulfill our vision we will require [AMOUNT] in capital, which will be allocated roughly according to the following table:

If we are fully capitalized, we hope to be profitable by [TIME].

PandaTip: If you are looking to raise capital you need to justify what you are asking for, otherwise it is going to be difficult to raise what you need. Think it through and itemize exactly what you need. Be sure to make healthy estimates but stay within reality. The number one reason businesses fail is undercapitalization so this may be the most important analysis you make.

PandaTip: Who do you envision coming into your bakery? Is there a nearby college from which you hope to attract students? Are you hoping for spill-over from nearby coffee shops and restaurants? The possibilities are limitless, but get to know the town in which you are located and determine who is most likely to patronize a bakery. This is the starting point in formulating your marketing plan.

PandaTip: Depending where you open your bakery, there are a variety of possibilities for competitors. Your most obvious competitors will be local bakeries, but unless you are opening in a city, it is unlikely that there will be many in your area (or you should probably choose a different suburban location!). However, your greatest competition may be supermarkets, which typically have large bakery sections.

Our Specific Marketing Plan

PandaTip: Going back to the clientele you envisioned, picture who they are one more time and determine the best ways to reach them. Again, if they are college students, then you might consider a strategic partnership with an on-campus organization or offer to sponsor a small event for free. Other possibilities are even strategic partnerships with nearby restaurants, delis, or the like. Someone might want a cupcake with their sandwich so you could offer a discount after purchasing a sandwich from the local deli. Be creative!

PandaTip: A bakery, more than perhaps any other type of food-serving business, is judged by its presentation. Make sure you have someone decorating your baked goods with an eye for aesthetics. There is no better way to separate yourself from those you are competing with than out-presenting them. It’s not likely that the local supermarket is employing a 5-star pastry decorator. Convey this not just through your words, but also through pictures. Don’t be shy about including tantalizing images of your decorated baked goods.

More than sweets, you may also offer breads or even items such as calzones. You should include a paragraph about each category you will offer but the important takeaway here is that you are including pictures of your products, no matter what they are.

PandaTip: This is where you start to get into the details of running your business behind the scenes. You will need to explain how you are getting your supplies, for what positions you need to hire, and other expenses that you have projected.

PandaTip: Describe from whom you will be ordering supplies and the arrangements that you have in place. In addition, for those suppliers you will need that you have not contracted with at the time of writing your business plan (and that may very well be every single one of them), describe the type of arrangement you will seek.

PandaTip: Managing the day-to-day of a bakery is an important task that will require the efforts of several different people no matter what type of bakery you are running. Discuss in this section, the number and type of employees that you will need, including details such as how many people need to be working during peak hours and how many will need to work in down hours.

PandaTip: Your jurisdiction may require that certain licenses be required to operate a food service business. If you have acquired them, you should include those that you have purchased, but if you have not and have identified those you will need, include those here as well.

PandaTip: You should make an effort to lay out your projected expenses with something like:

We expect our monthly outlay of expenses to approximate to the following:

This might be the most important part of your plan. You want to introduce to your reader the people behind the business. Include comprehensive profiles for your executive members (if you have any) your President, Treasurer, Head Chef, etc – and your Board of Directors. These profiles should have some flavor as well, while it is certainly vital to include information like education and experience, don’t be afraid to toss in some personal details, hobbies, family life, etc. Potential investors are going to feel more of a connection to a business if the human element is prevalent.

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How to Write a Bakery Business Plan #small #business #administration

#bakery business plan

#

Sugar and spice and everything nice that’s what bakeries are made of, right? The model looks easy enough when it seems like a new cupcake bakery opens every week.

Private research firm AnythingResearch.com listed bakeries and baked goods as its eighth fastest-growing industry hospitable to small business this year, saying “growth may be the result of people cutting back on larger entertainment expenses (e.g. vacations) and choosing instead to spend more on daily indulgences.”

Without the right recipe, however, dreams of getting a bakery off the ground could crumble like a cookie. This guide will show you how to perfect your recipe for success.

How to Write a Bakery Business Plan: Conduct a Market Study

There’s little doubt that bakeries are big. Bakeries, pastry shops, and bagel sellers are growing at a rate of 5 percent, according to AnythingResearch.com. To figure out if a bakery can provide you with a sweet payoff, however, you’ve got to have a plan.

Start with an in-depth market study that profiles the target customer base, current sales in the market area for the product category, pricing and product features of competitors, plans for differentiation in the proposed products and expected sales, recommends Kirk O’Donnell, vice president/education at the American Institute of Baking .

Next, after determining a research-based sales estimate, look at cost structure, which O’Donnell says starts with building and equipment. He suggests the following questions:

How much building space is needed?
What is the cost of the building space?
Do you need flexibility for expansion?
What is the specific equipment needed?
What is the cost of installation of equipment?
Will you need vehicles for transportation?

Once these costs are known, then costs of ingredients and packaging can be determined from sales projections and current commodity costs, O’Donnell said. But don’t forget staffing needs, transportation and distribution. Determine the number of people needed for production, sales, and their projected salary and benefits.

Finally, estimate all overhead costs and sources of income to help determine your required financing.

Sound like too much work? Maybe you can follow the route taken by Paul Sapienza, owner of Sapienza Bake Shop in upstate New York.

“I took over from my dad who didn’t ask for one,” he says, laughing.

How to Write a Bakery Business Plan: Software or Business Professional?

No need to worry about your lack of business school credentials. Online resources can assist in formulating your bakery business plan such as this sample on Bplans.com. The “Cupcakes Take the Cake” blog had an active discussion about a year ago featuring a video log of Cincinnati’s Funky Brick Bakery efforts to launch its business. And there’s software, such as Business Plan Pro, to help you along.

Neither O’Donnell nor Sapienza is completely sold on the software, however.

“The software that I have seen for bakery management normally focuses on inventory management, scheduling and record-keeping,” O’Donnell says. “In other words, (it’s) a help in managing a business, but not in writing a business plan.”

Sapienza, vice president of operations for the Retail Bakers of America. recommends paying a professional to write the plan or asking a b-school professor for advice.

Kevin VanDeraa, owner of Cupcake in Minneapolis, opted for a hybrid approach when developing his plan. He used software and took advantage of the local chapter of SCORE. which prides itself on being “counselors to America’s small businesses.”

“Partner with a small business association. There are a lot of free resources,” VanDeraa says. Most importantly, he suggests viewing the plan as an evolving document, not something to be filed away once the business gets going. “Go back to it and compare your estimates to your actuals,” he says, “and you’ll have a more realistic sense of how to move the company forward.”

Dig Deeper: How to Write a Great Business Plan

How to Write a Bakery Business Plan: What’s in a Name?

Never underestimate the pull of a good name.

When Adriano Lucas opened a New York City bakery called The Best Chocolate Cake in the World, the press, well, ate it up. The mini-chain, which only has one U.S. location, got mentions in both The New York Times and New York magazine before its grand opening in June. Hoards of hungry choco-holics consumed 400 cakes during opening weekend alone.

The key to a good name, according to BabyCakes NYC owner Erin McKenna, is one that strikes a good mix between “warmth and comfort.”

“The name needs to be short and immediately identifiable to the product, not trying to sound too girly or precious,” she said.

For VanDeraa, picking out the name was the hardest part.

“I wanted the name to convey both coffee shop and bakery, to imply you’re going to get both here,” he says. “I had to give it up for a while. I was just calling it ‘Minneapolis coffee shop.'”

Inspiration struck while he was having margaritas with friends. Cupcake was an immediate hit. “I was really lucky,” VanDeraa says. “It was before the trend.”

How to Write a Bakery Business Plan: Let Them Eat (cup)Cake?

Of course, VanDeraa is referring to the cupcakery explosion.

The much-hyped “Sex and the City” movie sequel helped to put cupcakes in the news again. Hello Cupcake in Washington, D.C. even had a cupcake/movie tie-in with specialty treats inspired by each character.

The popularity of cupcakes is good news for owners like McKenna, who opened her second vegan bakery, BabyCakes LA, in January. But even good news has its limits, she said.

“I don’t think cupcakes are the problem. The press swooning over them so much that people want to by nature reject them is the problem,” McKenna says. “If someone’s going to open up a cupcake bakery, I don’t think they should play up the adorability of it. Just have more a focus on the food.”

Van Deraa found in his market research that a standalone bakery concept didn’t appeal much to his target audience. They wanted soups and sandwiches, too, he said.

He adjusted his model. In addition to baked goods, Cupcake also serves breakfast all day, quiche, paninis, salads and soups. And six different categories of cupcakes simple, gourmet, premium, party line, baby and celebration.

The diverse offerings drive the business year-round, he says. In winter, customers come for the soup. Many come in daily for their morning coffee. Some have never even tasted the cupcakes, he said.

“It’s helped us as a business to have more offerings especially if there’s a diet fad,” he says, with a laugh. “That was a big stroke of luck.”

The bakery-and-restaurant model like Panera Bread and Dunkin Donuts is the more profitable model for most owners, Sapienza says.

“I’m aware that Mrs. Fields and Famous Amos started in the kitchen, but very few make the leap (to a successful business),” he says, adding that “cupcakes might be the exception to the rule.”

Whatever model you choose, don’t forget to add the following to your recipe: two cups of passion, an extra serving of hard work and an ounce of luck.





How to Write a Bakery Business Plan #start #a #business #ideas

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Sugar and spice and everything nice that’s what bakeries are made of, right? The model looks easy enough when it seems like a new cupcake bakery opens every week.

Private research firm AnythingResearch.com listed bakeries and baked goods as its eighth fastest-growing industry hospitable to small business this year, saying “growth may be the result of people cutting back on larger entertainment expenses (e.g. vacations) and choosing instead to spend more on daily indulgences.”

Without the right recipe, however, dreams of getting a bakery off the ground could crumble like a cookie. This guide will show you how to perfect your recipe for success.

How to Write a Bakery Business Plan: Conduct a Market Study

There’s little doubt that bakeries are big. Bakeries, pastry shops, and bagel sellers are growing at a rate of 5 percent, according to AnythingResearch.com. To figure out if a bakery can provide you with a sweet payoff, however, you’ve got to have a plan.

Start with an in-depth market study that profiles the target customer base, current sales in the market area for the product category, pricing and product features of competitors, plans for differentiation in the proposed products and expected sales, recommends Kirk O’Donnell, vice president/education at the American Institute of Baking .

Next, after determining a research-based sales estimate, look at cost structure, which O’Donnell says starts with building and equipment. He suggests the following questions:

How much building space is needed?
What is the cost of the building space?
Do you need flexibility for expansion?
What is the specific equipment needed?
What is the cost of installation of equipment?
Will you need vehicles for transportation?

Once these costs are known, then costs of ingredients and packaging can be determined from sales projections and current commodity costs, O’Donnell said. But don’t forget staffing needs, transportation and distribution. Determine the number of people needed for production, sales, and their projected salary and benefits.

Finally, estimate all overhead costs and sources of income to help determine your required financing.

Sound like too much work? Maybe you can follow the route taken by Paul Sapienza, owner of Sapienza Bake Shop in upstate New York.

“I took over from my dad who didn’t ask for one,” he says, laughing.

How to Write a Bakery Business Plan: Software or Business Professional?

No need to worry about your lack of business school credentials. Online resources can assist in formulating your bakery business plan such as this sample on Bplans.com. The “Cupcakes Take the Cake” blog had an active discussion about a year ago featuring a video log of Cincinnati’s Funky Brick Bakery efforts to launch its business. And there’s software, such as Business Plan Pro, to help you along.

Neither O’Donnell nor Sapienza is completely sold on the software, however.

“The software that I have seen for bakery management normally focuses on inventory management, scheduling and record-keeping,” O’Donnell says. “In other words, (it’s) a help in managing a business, but not in writing a business plan.”

Sapienza, vice president of operations for the Retail Bakers of America. recommends paying a professional to write the plan or asking a b-school professor for advice.

Kevin VanDeraa, owner of Cupcake in Minneapolis, opted for a hybrid approach when developing his plan. He used software and took advantage of the local chapter of SCORE. which prides itself on being “counselors to America’s small businesses.”

“Partner with a small business association. There are a lot of free resources,” VanDeraa says. Most importantly, he suggests viewing the plan as an evolving document, not something to be filed away once the business gets going. “Go back to it and compare your estimates to your actuals,” he says, “and you’ll have a more realistic sense of how to move the company forward.”

Dig Deeper: How to Write a Great Business Plan

How to Write a Bakery Business Plan: What’s in a Name?

Never underestimate the pull of a good name.

When Adriano Lucas opened a New York City bakery called The Best Chocolate Cake in the World, the press, well, ate it up. The mini-chain, which only has one U.S. location, got mentions in both The New York Times and New York magazine before its grand opening in June. Hoards of hungry choco-holics consumed 400 cakes during opening weekend alone.

The key to a good name, according to BabyCakes NYC owner Erin McKenna, is one that strikes a good mix between “warmth and comfort.”

“The name needs to be short and immediately identifiable to the product, not trying to sound too girly or precious,” she said.

For VanDeraa, picking out the name was the hardest part.

“I wanted the name to convey both coffee shop and bakery, to imply you’re going to get both here,” he says. “I had to give it up for a while. I was just calling it ‘Minneapolis coffee shop.'”

Inspiration struck while he was having margaritas with friends. Cupcake was an immediate hit. “I was really lucky,” VanDeraa says. “It was before the trend.”

How to Write a Bakery Business Plan: Let Them Eat (cup)Cake?

Of course, VanDeraa is referring to the cupcakery explosion.

The much-hyped “Sex and the City” movie sequel helped to put cupcakes in the news again. Hello Cupcake in Washington, D.C. even had a cupcake/movie tie-in with specialty treats inspired by each character.

The popularity of cupcakes is good news for owners like McKenna, who opened her second vegan bakery, BabyCakes LA, in January. But even good news has its limits, she said.

“I don’t think cupcakes are the problem. The press swooning over them so much that people want to by nature reject them is the problem,” McKenna says. “If someone’s going to open up a cupcake bakery, I don’t think they should play up the adorability of it. Just have more a focus on the food.”

Van Deraa found in his market research that a standalone bakery concept didn’t appeal much to his target audience. They wanted soups and sandwiches, too, he said.

He adjusted his model. In addition to baked goods, Cupcake also serves breakfast all day, quiche, paninis, salads and soups. And six different categories of cupcakes simple, gourmet, premium, party line, baby and celebration.

The diverse offerings drive the business year-round, he says. In winter, customers come for the soup. Many come in daily for their morning coffee. Some have never even tasted the cupcakes, he said.

“It’s helped us as a business to have more offerings especially if there’s a diet fad,” he says, with a laugh. “That was a big stroke of luck.”

The bakery-and-restaurant model like Panera Bread and Dunkin Donuts is the more profitable model for most owners, Sapienza says.

“I’m aware that Mrs. Fields and Famous Amos started in the kitchen, but very few make the leap (to a successful business),” he says, adding that “cupcakes might be the exception to the rule.”

Whatever model you choose, don’t forget to add the following to your recipe: two cups of passion, an extra serving of hard work and an ounce of luck.