In the last 365 days or more, I’ve watched retailers queue and struggle to buy bread from bread sellers. Some days many will not be able to buy and on some days, they will be met with the disappointment of waiting.

This observation gave me an insight into opening a bakery business, but I do not have the required skills and passion to venture into it. Someone within my business locality took advantage of it and opened a bakery business that is flourishing today.

A bakery business is lucrative if your products are of quality because I don’t eat any how bread and people don’t also. To make your business flourish, your products must stand out. Consider the quality of bread produced by some fast food companies like Hoeffers, Genesis, etc.

Many times when you go to buy bread at Shoprite, you’ll be in a queue. This tells you that the demand for bread is high if the quality is acceptable.

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Disclaimer: The names and figures used in this business plan are fictitious. You are required to replace the highlighted names and company names to suit your requirements. The costs provided do not reflect the current market prices as prices are changing continuously. You are therefore required to replace the prices using the current market price within your business locality. This Bakery business plan is thus a model or template you’ll use to create your own plan. It will help you create a business plan for the Bakery business to secure funds and operate effectively. However, by using this business plan, you are not guaranteed success or profit as declared on the plan. Your expertise and management styles will help you reach success. Moreover, if you are new to the bakery business, I will advise you to get the requisite training before investing your funds.

Click on this link to download the complete Bakery Business Plan.

Bakery business - Quality bread — Photo by Marianna OLE on Pexels.com

EXECUTIVE SUMMARY

The company name is a start-up bakery retail establishment located in Umuahia, Abia State. The company name expects to catch the interest of a regular loyal customer base with its broad variety of 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.

COMPANY NAME aims to offer its products at a competitive price to meet the demand of middle-to higher-income local market area residents and tourists. COMPANY NAME is incorporated in Nigeria by Corporate Affairs Commission. It is equally owned and managed by its two partners.

Mr. Christabel has extensive experience in sales, marketing, and management, and was vice president of Christabel Schools. Mrs. Name of person brings experience in the area of finance and administration, including a stint as a chief financial officer in Gloss Nigeria, Ltd. The company intends to hire two full-time pastry bakers and six part-time staff to handle customer service and day-to-day operations.

COMPANY NAME offers a broad range of coffee and pastry products, all from high-quality imported coffee beans. COMPANY NAME caters to all of its customers by providing each customer with coffee and pastry 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.

COMPANY NAME 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 the stability of the business. In addition, tourist traffic is expected to comprise approximately 25% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.

COMPANY NAME expects to raise N2,000,000.00 of its own capital and to borrow N3,000,000.00 as a 3-year loan. This provides the bulk of the current financing required. COMPANY NAME anticipates sales of about N8,230,100.00 in the first year, N11,955,700.00 in the second year, and N13,978,750.00 in the third year of the plan. COMPANY NAME should break even by the fourteenth month of its operation as it steadily increases its sales. Profits for this time period are expected to be approximately N568,909.25 in year 2, and N1,051,883 by year 3. The company does not anticipate any cash flow problems.

BUSINESS OVERVIEW

1.1 Mission

The company name aims to offer high-quality coffee 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 the Company name will include:

Providing the highest quality product with personal customer service.
Competitive pricing.

1.3Company Summary

The company name is a bakery and coffee shop managed by two partners. These partners represent sales/management and finance/administration areas, respectively. The partners will provide light funding from their own savings, which will cover pre-startup expenses. A 3-year loan will cover the rest of the required financing. 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.

1.4 Company Ownership

The company name is incorporated by Corporate Affairs Commission. It is equally owned by its two partners.

1.5 Start-up Summary for Bakery Business

Company name is a start-up company. Financing will come from the partners’ capital and a 3-year loan. The following chart and table illustrate the company’s projected initial start-up costs.

START-UP REQUIREMENTS
START-UP EXPENSES	(N)
Legal	150,000
Premise and Renovation	500,000
Expensed equipment	350,000
Other	100,000
Total Start-Up Expenses	1,100,000.00
START-UP ASSETS
Cash Required	1,000,000
Other Current Assets	400,000
Long-term Assets	2,500,000
TOTAL ASSETS	3,900,000
TOTAL REQUIREMENTS	5,000,000

START-UP FUNDING
Start-up Expenses to Fund	1,100,000
Start-up Assets to Fund	3,900,000
TOTAL FUNDING REQUIRED	5,000,000
ASSETS
Non-cash Assets from Start-up	2,900,000
Cash Requirements from Start-up	1,000,000
Additional Cash Raised	0
Cash Balance on Starting Date	1,000,000
TOTAL ASSETS	5,000,000
LIABILITIES AND CAPITAL
LIABILITIES
Current Borrowing	0
Long-term Liabilities	3,000,000
Accounts Payable (Outstanding Bills)	0
Other Current Liabilities (interest-free)	0
TOTAL LIABILITIES	3,000,000
CAPITAL
Planned Investment
Savings	2,000,000

Loan	3,000,000
Additional Investment Requirement	0
TOTAL PLANNED INVESTMENT	5,000,000
Loss at Start-up (Start-up Expenses)	(1,100,000)
TOTAL CAPITAL	900,000
TOTAL CAPITAL AND LIABILITIES	3,900,000
Total Funding	5,000,000

PRODUCTS

Company Name offers a broad range of coffee and pastry products, all from high-quality grown and imported coffee beans and flour. Company Name caters to all of its customers by providing each customer with coffee and pastry 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. Some of our products are:

Bread cake
Bread
Pies
Cake rolls
Coffee drinks
Beverage drinks

2.1 Equipment and Material Requirement

The following plant and equipment are required for to start our baking and coffee making outlet:

¾ deck electric oven
Industrial burner
Electric milling machine
Dough mixer
Automatic slicing machine
Paster roller
Deep freezer
Coffee making equipment
Standard scale
Packaging and serving equipment
Tables and chairs
Power generating plant

Some of the major raw materials include:

Columbian coffee
Beverage products
Flour
Baking powder
Sugar, salt & milk
Fondant, yeast & baking fat
Water