How To Write A Business Plan

Now that you understand why you need a business plan and you’ve spent some time doing your homework gathering the information you need to create one, it’s time to roll up your sleeves and get everything down on paper. The following pages will describe in detail the seven essential sections of a business plan: what you should include, what you shouldn’t include, how to work the numbers and additional resources you can turn to for help. With that in mind, jump right in.

Executive Summary

Within the overall outline of the business plan, the executive summary will follow the title page. The summary should tell the reader what you want. This is very important. All too often, what the business owner desires is buried on page eight. Clearly state what you’re asking for in the summary.

Business Description

The business description usually begins with a short description of the industry. When describing the industry, discuss the present outlook as well as future possibilities. You should also provide information on all the various markets within the industry, including any new products or developments that will benefit or adversely affect your business.

Market Strategies

Market strategies are the result of a meticulous market analysis. A market analysis forces the entrepreneur to become familiar with all aspects of the market so that the target market can be defined and the company can be positioned in order to garner its share of sales.

Competitive Analysis

The purpose of the competitive analysis is to determine the strengths and weaknesses of the competitors within your market, strategies that will provide you with a distinct advantage, the barriers that can be developed in order to prevent competition from entering your market, and any weaknesses that can be exploited within the product development cycle.

Design & Development Plan

The purpose of the design and development plan section is to provide investors with a description of the product’s design, chart its development within the context of production, marketing and the company itself, and create a development budget that will enable the company to reach its goals.

Operations & Management Plan

The operations and management plan is designed to describe just how the business functions on a continuing basis. The operations plan will highlight the logistics of the organization such as the various responsibilities of the management team, the tasks assigned to each division within the company, and capital and expense requirements related to the operations of the business.

Financial Factors

Financial data is always at the back of the business plan, but that doesn’t mean it’s any less important than up-front material such as the business concept and the management team.

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How to Open a Bakery

According to a private research firm, baked goods and bakeries were in the top 10 of fastest-growing industries for small businesses in 2010. So, if you’re a skilled baker with entrepreneurial skills, opening a bakery may be a lucrative step. You’ll also need to understand how to plan a startup and effectively run a company in order to generate enough revenue to stay in business and make a living. Read the following steps to learn how to open a bakery.

Steps

1. Decide what type of bakery you want to open.
   • There are bakeries that only sell baked goods, those that sell sandwiches and coffee to go or some that have a seating area where customers can eat breakfast or lunch.
   • Choose whether you want to sell conventional baked goods, organic baked goods, gluten-free baked goods, or vegan (e.g. egg and dairy-free) products.
2. Research the competition in the area to find out if there’s a demand for the type of baked goods you want to sell. For example, if the local supermarket sells conventional, organic and vegan baked goods at reasonable prices, you might not be able to compete. But, you could open up a new market if you open a bakery with a pleasant seating area and offer specialty baked goods and fresh sandwiches.
3. Draw up a business plan. Make sure you carefully calculate the costs of your location, equipment, supplies, staff, taxes and marketing. Balance them against your projected income to determine how much profit you’ll make over the first few years.
4. Review your business plan with an accountant, who will probably find additional expenses you overlooked. An accountant will also tell you how the costs of a startup can affect your tax returns.
5. Raise the necessary capital for opening a bakery. Ask your bank for a business loan or talk to private investors to raise the money.
6. Register your business with your city and apply for a sales permit to sell baked goods.
7. Choose the location for your bakery. Make sure it’s easily accessible, has plenty of traffic and meets all safety requirements.
8. Buy your equipment and have it professionally installed to make sure everything is safe and up to code. You’ll need scales, bowls, pan racks, ovens, mixers, butcher block tables, display cases, and refrigerators.
9. Decide which baked goods to sell at your bakery and determine which ingredients you need.
10. Interview and hire employees. Make sure they are friendly, efficient and trustworthy.
11. Call the local Consumer Health Services agency and have your bakery inspected for health safety.
12. Buy all necessary ingredients for your baked goods, such as flour, yeast, eggs, sugar, raisins and butter.
13. Prepare your baked goods. Make sure they look and taste as good as possible to draw in customers.
14. Advertise your bakery in the local newspaper, on flyers and online.
15. Open your bakery.

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What Is a Bakery Concept Statement?

A business concept statement summarizes the focus of your new business, particularly how it differs from competitors. A bakery concept statement presents the focus of that bakery, such as wedding cakes, artisan breads, pastries or a particular target audience, as well as the overall business concept that sets that bakery apart from other bakeries in the area.

Purpose

Your bakery’s concept statement lets potential lenders or investors know more about your business. It should provide a clear view of why your bakery will be successful, even if local competitors are larger or cheaper, to convince these sources to lend or invest money for your start-up or operating costs. The business concept can also help set you apart from competitors in your customers’ eyes, so it should provide a compelling reason for them to buy your products over others.

What to Include

A bakery concept statement should include the basic information about what your bakery is and does, how it is unique, and who it serves. The latter should include the location as well as your target customer demographic. You should also include when the bakery will open for business, its operating hours, and the basics of your marketing plan. You don’t need to include specific financial numbers in the concept statement, but note where and how you intend to market your bakery, such as at wedding expos for a wedding-cake-focused bakery or through local coupon books for a neighborhood full-service bakery.

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