Bakery Business Plan, Bakery Marketing Plan,
Financial Plan – Bakery Guide 101.
Phase 1 – Opening a Bakery 101 – Setting up a Bakery, first things first is to write a Bakery Business Plan.
Bakery Guide 101:
Bakery Business Plan,
Bakery Marketing Plan &
Bakery Financial Plan
Do you have a passion for baking bread and other goodies or perhaps you have a flare for creating pastries, cakes & sweet or savoury treats.
Have you worked in a bakery, helped run the family bakery or completed training or a vocational course in baking and would now like to open your own bakery.
Before deciding to open your own bakery what are some of the tips that can help make the whole process easier.
We have collated research & findings from various customers as well as analysing industry research to create this
easy user friendly guide to Opening a Bakery.
First things first is to write a Bakery Business Plan,Marketing Plan & Financial Plan before opening your bakery.
Some of the main factors to think about and address before opening your bakery are as follows:
Bakery Business Plan – Bakery Marketing Plan
How are you going to price your baked goods? Are you going to be aiming at the high end of the market in which case you should look to produce
premium products using quality fresh baking ingredients, or are you looking at producing and selling wholesale if so you will need to do some research
to see how to price your products – what prices are currently being charged in the industry for similar products.
Once you have decided that you are going to open a bakery you will need to determine what type of bakery you are going to set up,
are you going to open a niche bakery such as an artisan bakery, a gluten free bakery; a natural bakery, an organic bakery, a raw food bakery,
a large scale commercial bakery or are you going to purchase a bakery franchise such as Bakers Delight or a Brumby’s Bakery.
If you are opening a niche bakery, you will need to ensure that the niche you choose will work for your target market & that you choose the correct
location (place) to open your bakery.
Many large supermarkets now offer freshly baked bread in house, as such there is no point opening just another bakery down the road from a large
supermarket unless you are going to offer something different – you need to determine what your niche is going to be, your unique selling point,
as you do not want to be competing on price alone.
There are many differentiating factors that you can choose from to differentiate your bakery from competitors bakeries,
you just need to determine what these are going to be before opening your bakery & then ensure that you follow this through when setting up your
bakery across all your marketing and branding touch points
– including the products you make and sell, the price you charge for your products, through to how you market your products.
Tips: Keep up to date with the latest food eating trends, other points of difference are open a bakery with an international influence such as a
French Bakery, an Italian Bakery or a bakery with an emphasis and focus on another nationality.
See how a customer of ours is doing just that
a Kosher – French Bakery – specialising in challuh bread & doughnuts. They also specialise in sourdough & organic baked goods,
they are based in Sydney, NSW.
Or another customer – Traditional Iraqi Bakery who specialise in baked goodies & treats from Iraq located in NSW.
How are you going to promote your bakery – are you going to have an opening party to let all the locals know about your new bakery, are you going to
run promotions, print flyers, use social media, have a website, hold an event to raise money for a local charity or sponsor relevant local events both of
which are always great marketing initiatives for a local bakery.
Tips: Brain storm various ideas to see how you are going to promote your new bakery and be sure to include approximate pricing for each option,
once you have decided which options you are going to include create a mini action plan with goals, objectives & a time frame for each option.
Place – Location
Next you will need to determine where you are going to open your bakery, are you going to open your bakery in one of the major cities, Sydney,
Melbourne, Brisbane, Perth, Adelaide or perhaps one of the smaller cities such as the Gold Coast, Northern Territory, ACT (Australian Capital Territory).
You may opt for a regional bakery in one of the towns, local to where you live.
Next you will need to determine if you are going to be opening your bakery in a shopping center, a high street or on a business park.
Are you planning on producing and supplying baked goods Australia wide or just locally?
Tip: These are just some of the things to think about in terms of Place – Location. The best way to determine what will work best for you is to do some
See how this customer opened a bakery in a regional town in South Australia (SA)
Or how this customer opened in the city Perth, Western Australia (WA)
Next step is to think about who you want to sell to, who are your customers going to be. Define your target market (which group of customers are you
going to be aiming your product offering to?) Define your customers persona (create a summary of your key customer, who they are, predominant age
group (age group range). Where do they likely to live? What products are they are likely to buy, how much money they are likely to spend on a product).
You can take this a few steps further to assist with your marketing & branding endeavors which will enable you to ascertain where & how to market –
promote your bakery. A few examples of things you can look into include What do your target market read? Which publications, which online media
channels are they likely to frequent. How are they likely to spend their leisure time? What activities are they likely to partake in?
You need to find out who your competitors are now and possible competitors moving forward. You need to determine the local competition & possible
competition further afield.
If for example you are planning on opening a bakery in a small country town where there are no supermarkets, you would not have to worry about
competing with in store bakeries, though you need to know if there are any bakery franchises in the area where you are thinking of opening.
If so you will need to investigate to see what products they are selling and the price they are selling products for.
Bakery Business Plan
Your Bakery Business Plan should also include your vision, mission, objectives & keys to success.
Market Analysis for your Bakery
As part of your marketing analysis where you look at Price, Product, Promotion, Place, Customer & Competitor for your new business venture you
should also do a SWOT analysis & a basic financial plan.
SWOT Analysis for Bakery Business Plan
Next thing to do is a conduct a mini SWOT analysis – SWOT stands for strengths, weaknesses (which are both internal – meaning that you have control
Versus Opportunities & threats (which are both external & if you are aware of them beforehand you can plan for them and be prepared with various
strategies to implement moving forward an in to the future.
Examples of Strengths:
Strength – Trained in fermenting & baking skills & techniques at a bakery school in London
Strength – Bakery going to specialise in artisan hand crafted breads & goodies using traditional fermenting techniques.
An example of a weakness:
One of the challenges is setting up a bakery business where there are other established bakeries already set up,
though we are opening a bakery that has a very strong focus and emphasis on gluten free & natural ingredients
which is a huge differentiating factor to our competitors.
Examples of Opportunities:
There are unlimited opportunities available including:
- Lots of people eat bread on a daily basis – so there is huge market potential.
- Opening a specialised niche bakery specialising in guluten free and natural baked goods – the number of people with food allergies & intolerance’s
is significantly increasing each year
Example of a Threat:
Outsourcing of baked goods overseas including countries like China by some of the large brands in Australia,
though many customers in Australia are very passionate about supporting local Australian grown and Australian made
produce also current foods scares from China are a major deterring factor to customers which can provide us with significant opportunities.
Bakery Financial Plan
Financial Planning & Analysis
Start up budget & expenditure
You should do a basic financial analysis to determine what all your costs are going to be versus the ongoing expenses you are likely to incur.
Define your sources of income
Define what all your sources of income are going to be within your bakery – for example:
- Providing a home delivery service to customers
- Selling freshly made tea & coffee in the bakery – available for customers to sit down or takeaway
Once you have identified your budget, expenditure, financial projections, you can work out your sales forecast – how much of each item/product range
you are planning on selling per day/week.
versus how much money you are going to charge per product & how many products you would have to sell in order to break even and then to make a
profit after paying all your outgoings / expenses.
Some other points you will need to look into & consider –
Are there vacant shops available where you can open a bakery. Do they have council approval to open & operate a food establishment.
What is the rent like in the area? Is it costly to rent a premises.
What about your opening times – Think about when you are going to open – which days of the week, and what are your opening times going to be?
Do research, one of the quickest & easiest ways nowadays is to do research online so make sure you spend a bit of time doing some online research.
The other very important factor is to physically go to the area you are planning on opening your bakery – speak to people in the area as well as
prospective customers. Speak to other businesses in the area and also spend a bit of time to see how busy the area is particularly if you are going to be
selling to the public.