How To Write a Bakery Business Plan in 10 Steps (2025)

The bakery industry is set to boom over the next year. 

A recent survey found that 53% of bakery owners anticipate significant revenue increases in 2025, while 74% expect a notable rise in profits. 

This upbeat outlook is due to a lucrative combination of innovation, automation, and expansion.

Now might be a great time to start a bakery business—but before you launch, you’ll need a solid business plan.

Below, learn how to write your bakery business plan section by section, using our business plan guide as inspiration. 

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Why write a bakery business plan?

• Objectively evaluate your business idea
• Build a blueprint for taking action
• Help raise capital
• Prepare for potential challenges

Not every business starts with a formal plan, but those that do have an easier road to success. Writing a bakery business plan can help you:

Objectively evaluate your business idea

Writing a business plan helps you objectively evaluate your food business ideas—and researching and documenting your ideas allows you to take a step back and see if there’s really an opportunity there.

What makes your bakery idea unique? Who are your ideal customers? Are there enough of them to support your business? Putting these answers on paper helps you sharpen your vision and determine if your unique selling proposition (USP)—or if it needs tweaking before you dive in.

Build a blueprint for taking action

Your business plan serves as a roadmap for moving forward. Writing a business plan can identify the next steps you need to execute your idea. Do you need a loan for equipment? A space to bake? A social media strategy? Listing exactly what you need to start your bakery business can show you what you’ll need to do to make it a reality. You can keep referring back to your business plan to make sure you’re on track for your original vision.

Help raise capital

A business plan helps you get capital, even if it’s a home bakery business plan. You won’t be able to secure funding for your business—whether from investors, lenders, banks, or even crowdfunding—without a business plan for your bakery.

Prepare for potential challenges

All businesses will hit a bump in the road at some point, and a business plan can help you prepare. By thinking through potential risks—like ingredients soaring in price or seasonal sales dips—you can plan ahead with solutions so you’re not left scrambling. 

Bakery business plan template

A bakery business plan sample template is immensely helpful, especially if you don’t consider yourself a writer. When you start with a template, you can see every section that you need to complete. Templates can also offer prompts to help you figure out what to say and how to say it.

Our free business plan template gives you the framework you need to create a professional business plan quickly. It helps you analyze the market and understand how much time, money, and resources you’ll need to start a business. 

How to write a bakery business plan

1. Executive summary
2. Company overview and description
3. Market analysis
4. Business structure
5. Products and services
6. Customer analysis and segmentation
7. Marketing plan
8. Logistics and operations plan
9. Financial plan and projections
10. Pricing strategy

1. Executive summary

The executive summary section of your bakery business plan summarizes the document and its contents. 

Focus on your business’s core strength to draw in your reader. Keep it concise and to the point—you don’t want to lose your readers before they reach the meat of your baking business plan. Think about a hook to grab your audience’s attention.

Consider your target audience for your business plan and cater the executive summary to their needs. You might even have a few different versions of your executive summary to appeal to different readers, such as investors, lenders, or business partners.

The executive summary should be about a page in length and answer the following questions:

• What is your brand?
• What does your bakery do?
• What does your bakery want to do?
• What is the following text about?
• Why should your audience care?
• What highlights should readers be excited about?
• What do you sell and how is it different from your competitors?
• Who are your customers?
• What is your marketing strategy?
• What is your current and projected financial state?
• How much money do you need to get started?
• Who is involved in the bakery?

2. Company overview and description

This part of your bakery business plan should drill further into your business idea. 

Use this section to talk about the baked goods industry and the niche you’ll carve out within it. For instance, you might plan on offering keto-friendly, gluten-free, or otherwise lifestyle-specific items; cakes; catering; frozen desserts; savory pastries, etc.

Cape Whoopies, for example, sells gourmet whoopie pies made in Maine. Its bakery business plan would make note of that in the company description section.

The company description should also outline your mission statement and your value proposition. Your mission statement explains what you hope to do with your bakery, and your value proposition sums up why people would want to buy from you.

Use this section to talk about your team, including key personnel and their salaries. The bakery La Monarca, for example, would identify its two founders as well as any board members or employees.

Finally, list your short- and long-term business goals. Your business goals should be quantifiable and measurable, eliminating subjectivity. You’ll also want to put an estimated timeline for your business goals and when you hope to accomplish them.

3. Market analysis

The market analysis section of your bakery business plan quantifies how big your potential market is and validates that there’s enough demand for your business. Consider exploring industry trends, local laws and regulations, gaps in the local market, and a competitive analysis to pinpoint where your bakery fits into the competitive landscape. 

You may also include a SWOT analysis, which identifies your strengths, weaknesses, opportunities, and threats.

4. Business structure

How your business is legally set up affects how much personal risk you take on, how you’re taxed, and how you can grow your bakery in the future. The two most common structures for small businesses on a budget are: 

• Sole proprietorships. If you’re starting small (like a home bakery or testing your recipes at local markets), a sole proprietorship could be the easiest option. It’s simple to set up and gives you complete control over your business. The catch is you’re personally responsible for any debts or liabilities. 
• Limited liability companies (LLCs). An LLC is relatively easy to set up and it separates your personal finances from your business. So, if your bakery faces unexpected costs or legal challenges, your personal assets are protected. An LLC also gives you flexibility in how you’re taxed, which can be useful when your business grows. 

This section of your business plan should outline which structure is most appropriate for your business and explain how you’ll structure it. 

5. Products and services

In the products and services section, you’ll list which products and services you’ll sell through your bakery. You’ll likely sell something like cakes, cookies, chocolates, pies, baking kits, and potentially branded merchandise products. You’ll also want to consider other non-bakery items. Dough Dealer, for example, doesn’t actually do any baking, so it doesn’t sell any baked goods. Instead, it sells kits with baking supplies online, as well as merchandise. You can do the same thing with a print-on-demand company.

Use this section to thoroughly explain your niche, how many different types of products you’ll offer, and if you plan to release limited-edition or seasonal items.

6. Customer analysis and segmentation

The customer segmentation section of your bakery business plan should discuss the different groups of shoppers you intend to target with your bakery. Include the following information about each of your segments:

• How old they are
• Where they live
• Where they work and what they do
• Education level
• Hobbies
• What technology they use
• Their values, beliefs, and opinions
• Common behavior patterns
• How they shop

For example, Levain serves a few distinct geographic markets in Puerto Rico, including San Juan, Aguadilla, Mayagüez, and Rincón. Each of these regions represents a specific customer segment for the bakery, and they may have different shared characteristics. So Levain adjusts its promotional and marketing strategy according to each local audience.

7. Marketing plan

Your marketing plan is a high-level overview of how you plan to promote your bakery. The marketing plan should outline which channels you plan to use for marketing and advertising, as well as the budget you can start the business with. 

8. Logistics and operations plan

Your logistics and operations plan outlines exactly how you’ll create and sell products and fulfill orders. Be sure to address each of the following:

• Suppliers. Identify where you’ll purchase the raw ingredients you need to make your baked goods and where they’re produced. Will you purchase anything pre-made from suppliers or make everything from scratch?
• Production. Describe how long it takes to receive raw ingredients and how long it takes to produce your baked goods. You’ll also want to think about a contingency plan: How will you handle a busy season or an unexpected spike in demand?
• Facilities. Where will you and any team members work? Do you plan to have a physical retail space as well as a bakery? If yes, where? Will they coexist or exist in different locations?
• Equipment. List which tools and technology you require to get you up and running; think items like ovens, mixers, refrigerators, etc., as well as business tools like a POS system or card reader. You’ll even list items like lightbulbs, counters, and anything else you’ll need to purchase to open your bakery.
• Shipping and fulfillment. Will you be handling all the fulfillment tasks in-house or will you use a third-party fulfillment partner? Will you have a space for in-person shopping or pickup?
• Inventory. How much raw ingredients will you keep on hand, and where will they be stored? How much finished product can you keep on hand, and where? How will you ship products to partners if required, and how will you approach inventory management?

The bakery Wildgrain, for example, operates on a subscription-based business model. The brand outlines how it works on its website, providing information that would also be suitable for the logistics and operations section of its bakery business plan.

The sourdough bakery Florets offers a subscription plan as well as in-person pickup at its Auckland-based bakery location or a weekly farmers market.

The Protein Bakery also has a few methods for fulfillment. Customers can visit its New York City–based retail shop or order online, and other businesses can also purchase its products wholesale.

9. Pricing strategy

This section of your business plan shows you can balance profitability with customer expectations. It outlines how you’ll set prices for your products and why your pricing strategy makes sense for your business. A few different variables will go into your pricing approach: 

• Your costs. Include everything from ingredients and packaging to rent, utilities, and labor. Once you have a clear picture of your expenses, figure out how much you need to charge to cover costs and still make a profit. 
• Your competition. What are similar bakeries charging for their products? Use this information to ensure your prices aren’t too low or extraordinarily high.
• Your customers. Are they looking for budget-friendly treats, or would they pay more for homemade, artisan goods?
• Your discounted offerings. Will you offer loyalty cards, holiday specials, or day-old baked goods at reduced prices or wholesale pricing? Detail how these strategies will work without cutting into your profits. 

10. Financial plan and projections

The financial plan shows possible funders that you’ve done your homework and crunched the numbers to figure out how much money you need to launch, how much you need to operate, and whether you can turn a profit.

The section typically includes the following financial statements:

• Income statement. An income statement is a financial statement that reports a company’s financial performance, detailing the company’s income and expenditures over a specific period.
• Balance sheet. A balance sheet is a financial statement that shows a business’s assets, liabilities, and stockholder equity and is shared either on a monthly or quarterly basis. The main benefit of a balance sheet is to know what a business is worth.
• Cash flow statement. A cash flow statement is a financial statement that summarizes the inflows and outflows of cash transactions during a given period of business operations.

Here’s a spreadsheet template that includes everything you’ll need to create the above financial statements, including some sample numbers. Just edit it as needed.

When putting together your financial plan and statements, be realistic and specific. While you want to beoptimistic about your projected success, it’s equally important to be pragmatic. Use the information you’ve learned in developing other parts of your bakery business plan to calculate accurate, achievable numbers.

Examples of successful bakery businesses

Here are a few real-world examples of bakeries that have successfully carved out a niche: 

1. Magnolia Bakery

Magnolia Bakery taps into the charm of a classic old-school bakery with pastel colors, cozy interiors, and warm customer service. Its branding is instantly recognizable and evokes a sense of nostalgia, making it feel timeless and approachable. Customers feel like they’re stepping into a neighborhood bakery, even if they’re visiting a chain location in a bustling city.

But Magnolia hasn’t just stopped at in-store sales. 

It has opened an online store, shipping its signature banana pudding and other products across the globe. It also sells branded merchandise like cookbooks and bake-at-home kits.

2. Tartine Bakery 

A San Francisco icon, Tartine is celebrated for its artisanal bread, pastries, and commitment to high-quality, local ingredients.

At the heart of Tartine’s success is its founders, Chad Robertson and Elisabeth Prueitt, who are world-renowned for their skill and dedication. Tartine’s bread is particularly legendary and made using a slow, meticulous process that prioritizes flavor, texture, and quality over efficiency. The attention to detail—like long fermentation times and sourcing the best flour—sets its baked goods apart from the competition.

3. Porto’s Bakery 

Porto’s story began with Rosa Porto, a Cuban immigrant who turned her passion for baking into a thriving family business. 

The bakery’s menu reflects its heritage, featuring Cuban classics like guava cheese strudels and pastelitos (savory meat pies). This cultural authenticity gives Porto’s a unique identity that other bakeries don’t have.

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Porto’s has grown carefully, with locations concentrated in Southern California. This strategic approach has meant the business has kept its quality and brand identity while building a loyal local following. Each location is designed to handle high volumes without sacrificing service or quality, so that each and every customer has a positive experience.

Launch your bakery business with Shopify

Starting your new venture with a successful bakery business plan is a surefire way to set yourself up for success from the get-go. Your bakery’s business plan will keep you and your team accountable and aligned with your vision and goals.

Before you dive in, it’s a good idea to choose a business name, register your business, and get any business licenses you might need.

When you’re ready to launch, build your website on Shopify. With Shopify, you can seamlessly integrate your retail and ecommerce tech stack to maintain complete control of your growing business.