How to Create a Home Bakery Business Plan
I’m beyond excited that you’ve decided to take action to read this post because your life could be starting on a NEW path from here on out…
Deciding to create your Home Bakery Business Plan means that you are actively responding to your dream. Today your dream has officially started to become a reality.
Acknowledging that you are a baker at heart is extremely difficult in our corporate world. It’s frowned upon to pursue a career that’s RICH in CREATIVITY and IMAGINATION.
So I just want to give you a room full of applause for being brave enough to start accepting who you were made to be.
We are Home Bakers and the world needs us.
The world needs the comfort, joy and hope that pure home baking brings.
And that’s why I’ve made this post and FREE Workbook to help you create your own Home Bakery Business Plan!
I want to give you the jump start you need to start your Home Bakery.
Creating your business plan will give you a lot of insight into yourself, your ideal clients, what you want to bake and why you want to do it.
Most importantly it will help you figure out where you want to go…
Because “If you don’t know where you’re going, any road will take you there.”
By outlining where you want your business to go, you have a much greater chance at success because you will always be aware of where you are heading.
Your free Home Bakery Business Plan workbook is waiting for you in my free Resource Library. Follow this blue link to access the library and then download & print out your workbook 👉 Access your free workbook here!
Awesome! Let’s get stared!
YOUR HOME BAKERY BUSINESS PLAN
STEP #1: Your Executive Summary
It might sound super intimidating to create an “executive summary”, but don’t worry 🙂 An executive summary is super easy to create through answering a few questions. It’s basically just about WHAT you do and WHY you do it…
IF YOU HAVEN’T STARTED YOUR HOME BAKERY YET:
You might not be able to answer all of the questions below yet, BUT you can share your research and all the steps you’re taking to ensure your business’s success.
1. YOUR MISSION STATEMENT
What is the purpose of your Home Bakery? What value do you add to your city/town? Why did you start your Home Bakery Business?
2. HIGHLIGHTS OF YOUR GROWTH
What is the purpose of your Home Bakery? What value do you add to your city/town? Why did you start your Home Bakery Business?
3. YOUR PRODUCTS & SERVICES
Write down a short summary of the products & services your Home Bakery will offer in order to make your business profitable.
4. YOUR GOALS FOR YOUR HOME BAKERY
Time to dream, my friend! What are your goals for your Home Bakery?
What do you want your business to look like 1 year from now, 2 years from now and 5 years from now?
STEP #2: Your Home Bakery Business Description
Now we are going to dive into your business culture & brand which is something that EVERY business is either working on or has figured out.
1. WHAT SETS YOUR HOME BAKERY APART?
Why should someone buy from YOUR Home Bakery above others? What makes your business different?
2. THE PEOPLE YOU SERVE
Every business needs clients in order to survive and thrive! So it’s super important to define WHO your business’s ideal clients are:
How old are they?
What do they do for a living?
What do they care about most?
Why have they come to your baking business?
How can you help them?
What are their goals & aspirations?
What are their hobbies?
Which things make them happy?
3. YOUR HOME BAKERY’S CULTURE & BRAND
Another way to think of “culture & brand” is simply to see it as your business’s personality & looks; it’s the first impression that clients get from your Home Bakery Business…
When people interact with your Home Bakery, what do you want them to feel?
How would you describe your Home Bakery’s Personality?
What purpose does your Home Bakery serve?
4. YOUR HOME BAKERY’S ORGANIZATIONAL STRUCTURE
Organizational Structure simply refers to the legal definition of your business. If you are the only person working in your Home Bakery – which is pretty much always the case – then you are automatically defined as a “sole proprietor“.
Even if there’s one other person in your business who cleans for you or helps you out with deliveries or admin, etc. you are still a sole proprietor.
You’ll include this organizational structure definition when submitting your tax information each year.
If you decide to expand your Home Bakery in the future, you can do the necessary research to figure out whether you should register your business as a Partnership, CC, LLC, etc.
The motivation for changing your business to one of these other organizational structures is for financial reasons. If your business should go bankrupt while you are a sole proprietor, then YOU are by definition bankrupt as well.
But if you have an LLC, CC, etc. then only your business will be bankrupt and not YOU as a person.
This may sound like super scary stuff, but you don’t need to worry AT ALL, okay? Home Bakeries typically do not shuffle around tens of thousands of dollars each day so our risk is SIGNIFICANTLY lower.
We also typically do not buy like 5 company cars and employ 20 people and stuff like that.
Our Home Bakeries are small and safe 🙂
STEP #3: Competitor Analysis
Before launching your Home Bakery business, I encourage you to THOROUGHLY research your largest competitors (popular bakeries with staff) and other Home Bakeries in your city, town and suburb.
Doing this is important because it will enable you to make more informed decisions and chart your own, unique course moving forward that serves a REAL need in your community and beyond.
Be mindful when you’re researching & analyzing your competitors though…
It’s SO EASY to be swooped up in a wave of comparison when you look at other Bakeries; their high skill level, beautiful website & branding, EPIC social media…
Guard your heart and analyze with your HEAD. Be HAPPY for them because they’ve worked super hard to get to where they are.
They may be your competitors, but they are NOT your enemies.
ALWAYS BE HAPPY FOR OTHER BAKERIES. BAKERS SUPPORT EACH OTHER AND THEIR SUCCESS. PERIOD.
See these businesses as inspiration for where YOU could be in a few months! It’s 100% possible!! By completing this home bakery business plan you’re taking a GIANT LEAP towards your own success!
Also, I know all too well how tempting it is to just copy their cakes, their designs, their website design etc., but doing this will ONLY DAMAGE YOUR BUSINESS!!
They became successful by doing THEIR own thing and so will you if you do YOUR own thing.
Now, when doing your competitor analysis, you’ll want to take the following steps:
1. IDENTIFY YOUR COMPETITORS
Now you’re going to list of all of your competitors. Which other Bakeries bake goods that are similar to yours (or similar to what you want to bake in the future)?
Write down the Bakery’s name with links to their website & social media:
The Free Home Bakery Business Plan Workbook has very handy spaces for you to easily fill in 👉 Access your free workbook here!
If you’re brand new to the Home Bakery scene, then you may not know who your competitors are.
Here are a few ways to find them:
- Search on Google: This is the easiest way to find your competitors. Search phrases like “delicious cake [your town/city]”. You can even get more specific by searching for “home bakery [your suburb]” which will give you results for Home Bakeries closest to you.I encourage you to click through to look at all result pages from 1 – 4 to get a more thorough scope (and because Home Bakeries mostly not listed first).
- Search on Social Media: Social media – especially Instagram – is THE place to be for businesses today. Bakeries that are worthy competitors will have social media accounts. Search hashtags in Instagram like #[your city]cakes or #[your city]food. Or simply search for “Home Bakery [your city]”.
2. STRATEGIES & GOALS OF YOUR COMPETITORS
Cool, now that we know who your main competitors are we need to find out what their angle is for reaching their ideal clients – because you can learn from them and also readjust your own strategy accordingly.
What are they promoting? (Their products, services, lifestyles, feelings…)
What strategies do your competitors have in common? (Like Instagram lives, Facebook lives, certain types of promotions or giveaways…)
Which things set each competitor apart from the others on your list? (What do they do differently than all the rest?)
What goals do your competitors have? (I know you’re not a mind reader, but what assumptions can you make from analyzing their business? Sometimes Bakeries will even share their goals on their about pages on their websites…)
3. PRICE RANGE OF YOUR COMPETITORS
Check out the prices of all of your competitors for each different type of bake they sell. This will give you a better idea of what your future clients will be comfortable paying for baked goods.
4. STRENGTHS & WEAKNESSES OF YOUR COMPETITORS
Now that you’ve analysed each of your competitor’s websites, social media, products & services, you should have a pretty good idea of:
who they are,
what they are doing,
why they are doing it,
who they are doing it for and
where they are going with their business…
Let’s dig a little deeper. Use the next section on the home bakery business plan workbook to make a list of some of their strengths and weaknesses.
What are they super good at and what can they improve on or change completely?
STEP #4: Audience & Market Research
Back in STEP #2 of your home bakery business plan we identified and described your Home Bakery’s ideal client. Go ahead and look back to refresh your memory because now we’re going to dig deeper…
1. SURVEY YOUR AUDIENCE
Surveys are hands-down the best way to gather priceless insights into the minds and needs of the people you want to serve – especially because surveys are anonymous.
People tend to share their TRUE desires and thoughts a lot easier when they have the security of anonymity.
You don’t want your survey to be too long – because then people will be too lazy to answer the questions! Trust me… Keep it to 3 questions 😉
What are the best 3 questions you can ask your audience to understand their needs & desires better?
2. HOW CAN YOU HELP/SERVE YOUR AUDIENCE?
In Step #2 we covered your brand’s personality and in Step 3 we defined the brand personality of your Competitors. With this information in mind, here are a few questions for you…
How can YOU, as a unique human being & baker, help your audience?
What makes your Home Bakery different from all other Bakeries (big & small)?
In what ways can your Home Bakery’s unique qualities benefit your ideal client that’s different from all the other Bakeries in your town/city & suburb?
STEP #5: Your Home Bakery’s Products & Services
And now it’s time for the BEST part – your baked goods & services! Yay! 😄
These are the 2 things that will bring profit to your Home Bakery, so it’s super important to put thought, heart and proper planning into this…
1. YOUR MENU – THE BAKED GOODS YOU WILL OFFER
Which products do your ideal clients need? Refer back to the answers from your survey to get good ideas.
HOWEVER, I do believe that people are aware of what they want, but they aren’t necessarily always aware of what they NEED. So trust your own talents and passion on this as well…
2. THE BAKED GOODS YOU WILL NOT OFFER
Defining what you DON’T bake is just as important as defining what you DO bake. Which products will NOT be on your menu and why?
I’ve also got an amazing free guide for you in my Home Bakery Resource Library to help you find the perfect niche for your business. Join the library to get the free guide on finding your niche.
3. YOUR SERVICES – WHAT YOU WILL OFFER
Which services do your ideal clients need? Refer back to the answers from your survey to get good ideas.
Will you offer delivery? Are you considering to offer customization? Will you offer on-site catering or set-ups? Will you offer rental services for cake stands etc.? Get specific here.
4. THE SERVICES YOU WILL NOT OFFER
Defining which services you DON’T offer is just as important as defining which services you DO offer. Which services will you not offer and why?
5. HOW ARE YOUR PRODUCTS & SERVICES DIFFERENT?
Refer back to your competitor research: How are your products & services different from theirs? Is there anything you could add that would make your menu & services feel even more valuable than theirs?
This sure is a LOT of information to keep track of! You can easily have it all on hand by downloading your free Home Bakery Business Plan Workbook 👉 Access your free workbook here!
STEP #6: Your Home Bakery’s Sales & Marketing Strategy
Wow! Look how far you’ve come already – I’m so proud of you for putting in all this hard work to create your Home Bakery’s Business Plan…
It’s the first and biggest step you can take to start turning your Home Bakery dreams into a reality! 😄
The last step in your home bakery business plan is working out your sales & marketing strategy. Without a strategy there’s nothing you can do besides “waiting and hoping” your business will grow. A strategy makes it all REAL! Let’s dive in!
1. HOW WILL YOU MARKET YOUR BUSINESS & BAKES?
Take some time to consider which platforms and methods you want to use to market your business and baked goods…
Do you want to use a Facebook group, page or ads? Are there some local Food Markets you’d like to trade at? Do you have some contacts and connections who love your baked goods you can ask to “spread the word” via email or with a flyer?
Once you’ve decided on some methods, research them online for better results.
2. YOUR MARKETING SCHEDULE
It’s important to set a day and time aside for yourself to spend on Marketing – otherwise life will find a way of soaking up all of your time! When will it be?
3. LAUNCHING YOUR HOME BAKERY (IF YOU’RE NEW)
If you haven’t started your Home Bakery yet, it will help to create a “launch” strategy for your business. How will your business officially come into existence?
What are some things you can do to launch your Home Bakery with a bang and get people excited about what you bake?
4. HOW WILL YOU GROW YOUR HOME BAKERY?
You’ve made it to the last question! Congrats! This last section is about coming up with strategies to grow your business.
This doesn’t necessarily mean employing staff and moving to a larger facility (or opening a retail bakery) – unless that’s what you desire. This last section pertains more to how you will grow your profits and client base.
Will you outsource certain tasks like cleaning, branding, photography, deliveries, social media management, website building, etc.?
Will you expand your menu & services?
How will you look after your clients to keep them coming back?
Think about things that you can do to keep your Home Bakery Business growing and thriving.
And that concludes your Home Bakery Business Plan my friend! I’m so proud of you for taking action and taking this first step towards starting your baking business 😄
Now you might be wondering, what happens next?
The perfect next step for you is to check out my Ultimate Guide to Starting a Part-Time or Full-Time Home Bakery.