Bakery business plan

Business plan

One of the main positions in the food industry market is baking bakery products.

According to statistics, about 5 billion dollars worth of such products are produced annually!
The share of private bakeries is not large and is about 15-30%, and in more developed European countries this value reaches 70%.
Thus, it is difficult for small bakeries to resist the waters, compared to large bakeries.

The main advantage of such small bakeries is a different range of products, because they can produce products at a fast pace according to a unique recipe that will be exclusive and cannot be compared to those provided by large enterprises.

In this regard, it will be a pretty good decision to open your own bakery, but in order to organize the smooth and productive work of all components of the enterprise, it will be useful to draw up a bakery business plan.

Bakery Business Plan: Marketing, Sales and Personnel

If you can ensure the production of unique bakery products, then you will not even notice competition from large bakeries, because the demand for such products is large, and large manufacturing giants will not be able to quickly rebuild their production technology for this kind of baking, unlike a small mobile bakery enterprise.

The main thing in the bakery business is to provide the consumer with exactly what he needs.
At the moment, dietary products are in great demand.
But in order for your products to be bought, you need to talk about it, that is, make an advertisement for your brand.

A great option would be to open your own store to sell your own products, but the catch is that this will be expensive in the initial stages of the enterprise.

In general, you can sell your products through contracts with supermarkets, shops …

Bakery Business Plan: Expenses

In order to control the operation of all equipment in the bakery, about 2-4 workers are needed. They can work in shifts.

Start-up and running costs include:

  • Renting a room for equipment placement — about 60 thousand dollars per month for an area of ​​150-200 sq.m.
  • The necessary equipment (cabinets, racks, containers, tables, machines for production) — within the framework of 500 thousand dollars.
  • Electricity costs are close to $100,000.
  • Raw materials — from 5 to 10 thousand dollars per ton of industrial raw materials.
  • Salary to employees — 30-50 thousand dollars.

Usually small bakeries of this kind make about a ton of products in one day.
The profitability of such an enterprise will be 30-60%.

Bakery business plan: the risk in starting a business like this

In order for this business to be profitable and effective, you need to take into account the marketing aspect and take care of the needs of consumers.

If you do not deal with these aspects, then a small bakery will not bring much income.

Also, the risk lies in the payback of the enterprise, because it will be difficult to stay afloat in the first 1-2 years after the start.