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FAQs
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How do I write a business plan for a bakery?
Write a description of your bakery. ... Write your market analysis to justify the demand for your baked goods. ... Write what baked goods you will sell. ... Detail the bakery's management. ... Write your marketing plan, which is what you will do to get customers to come to your bakery. ... Make your financial projections. -
How do I start my own bakery business plan?
Write a Business Plan. ... Obtain Loans and Startup Capital. ... Leasing a Commercial Space. ... Permits and Licenses. ... Designing a Layout. ... Ordering Equipment for Your Bakery. -
Are bakeries profitable?
A profitability of a bakery is on average ranges from 20% to 50%. -
How do you come up with a good bakery name?
DO Make It Clear You're a Baking Business. ... DO Give Yourself Room to Grow. DON'T Choose a Name That Belongs to Someone Else. ... DO Consider Using a Family Name. DON'T Use Confusing Words. ... DO Choose Puns with Care. ... DON'T Be "Kute" with Spelling. ... DO Consider the Downside of Shock Value. -
How do I start my own bakery?
Write a Business Plan. The first step in opening your new establishment should be to write a bakery business plan. ... Obtain Loans and Startup Capital. ... Leasing a Commercial Space. ... Permits and Licenses. ... Designing a Layout. ... Ordering Equipment for Your Bakery. ... Hiring and Training Staff. ... Marketing and Advertising Strategies. -
How do I start a home bakery business plan?
Form a Vision. First things first. ... Budget. You're in the process of signNowing your home kitchen and getting insured. ... Establish Consistency. You want your customers to enjoy the baked goods that they love and keep coming back for. ... Know Your Target Audience. Who doesn't love sweets and baked goods? ... Get the Word Out. -
Can I sell baked goods from home?
Can I Sell Cakes from My Own Home? In short, yes you can. However, if you decide to do this as a business, you will need to meet certain requirements as ultimately the public \u2013 your customers \u2013 need to be kept safe from any potential harm.
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Signed bakery business plan template
[Music] starting a bakery business guide how to start a bakery business this video is designed to help you plan and start a bakery business it will walk you step-by-step through all the essential steps of starting your own bakery business in addition in the description below this video you'll find a link to a page where you can download a business plan template in ms word format this is a high-quality full-blown business plan template complete with detailed instructions and all related spreadsheets it will allow you to prepare a professional bakery business plan in building your pathway to profit with a bakery business you need to consider the following questions what services do I provide where is my market who will buy who is my competition what is my sales strategy what merchandising methods will I use how much money is needed to operate my firm how will I get the work done what management controls are needed how can they be carried out and many more now we are going to help you discover the answers to all those questions bakery business marketing when you have decided what business to start you are ready to consider another important part of your business marketing successful marketing starts with the owner you have to know the merchandise you sell and the wishes and wants of your customers you can appeal to the objective is to move the stock off the shelves and display racks at the right price and bring in sales dollars determining the sales potential in retail business your sales potential depends on location like a tree a store has to draw its nourishment from the area around it the following questions should help you work through the problem of selecting a profitable location in what part of the city or town will you locate in the downtown business section in the area right next to the downtown business area in a residential section of the town on the highway outside of in the suburbs in a suburban shopping center on a worksheet right where you plan to locate and give your reasons why you chose that particular location now consider these questions that will help you narrow down a place in your location area what is the competition in the area you have picked how many of the stores look prosperous how many look as though they are barely getting by how many similar stores went out of business in this area last year how many new stores opened up in the last year what price line does competition carry which store are stores in the area will be your biggest competitors again write down the reasons for your opinions also write out an analysis of the area's economic base and give the reason for your opinion is the area in which you plan to locate supported by a strong economic base for example are nearby industries working full-time only part-time did any industries go out of business in the past several months our new industries scheduled to open in the next several months when you find a store building that seems to be what you need answer the following questions is the neighborhood starting to get rundown is the neighborhood new and on the way up are there any super highways or throughways planned for the neighborhood is Street traffic fairly heavy all day how close is the building to bus lines and other transportation are there adequate parking spaces convenient to your store are the sidewalks in good repair is the street lighting good is your store on the sunny side of the street what is the occupancy history of this store building does the store have a reputation for failures have stores opened and closed after a short time why have other businesses failed in this location what is the physical condition of the store what service does the landlord provide what are the terms of the lease how much rent must you pay each month attracting customers when you have a location in mind you should work through another aspect of marketing how will you attract customers to your store will you pull business away from your competition it is in working with this aspect of marketing that many retailers find competitive advantages the ideas that they develop are as good as an often better than those that large companies develop image a store has an image whether or not the owner is aware of it for example throw some merchandise onto shelves and onto display tables in a dirty dimly lit store and you've got an image shoppers think of it as a dirty junky store and avoid coming into it your image should be concrete enough to promote in your advertising and other promotional activities right out on a worksheet the image that you want shoppers and customers to have of your store pricing value perceived as the key to pricing the only way a store can have low prices is to sell low priced merchandise thus what you do about the prices you charge depends on the lines of merchandise you buy and sell it depends also on what your competition charges for these lines of merchandise your answers to the following questions should help you to decide what to do about pricing in what price ranges are your line of merchandise sold high medium or low what services will you offer to justify your prices if they are higher than your competitors prices if you offer credit well your price have to be higher than if all sales are for cash the credit costs have to come from somewhere plan for them if you accept credit card payments what will it cost you will you have to add to your prices to absorb this cost customer service policies the service you provide your customers may be free to them but you pay for it for example if you provide free parking you pay for your own parking lot or pick up your part of the cost of a lot you share with other retailers make a list of the services that your competitors offer and estimate the cost of each service how many of these services will you have to provide just to be competitive are there other services that would attract customers but that competitors are not offering if so what are your estimates of the cost of such services now list all the services you plan to offer and the estimated costs total this expense and figure out how you can include those added costs in your prices without pricing your merchandise out of the market advertising advertising was saved until the last because you have to have something to say before advertising can be effective when you have an image price range and customer services you are ready to tell prospective customers why they should shop in your store when the money you can spend for advertising is limited it is vital that your advertising be on target before you think about how much money you can afford for advertising take time to determine what jobs you want to do for your store list what makes your store different from your competitors list the facts about your store and its merchandise that your advertising should tell shoppers and prospective customers when you have these facts listed and in hand you are ready to think about the form your advertising should take in its cost ask the local media online ads newspapers radio and television and printers of direct mail pieces for information about the services and results they offer for your money how you spend advertising money as your decision but don't fall into the trap that snares many advertisers who have little or no experience with advertising copy and media selection advertising as a profession don't spend a lot of money on advertising without getting professional advice on what kind and how much advertising your store needs when you have a figure on what your advertising for the next 12 months will cost check it against what similar stores spend no single expense items should be allowed to get way out of line if you want to make a profit your task in determining how much to spend for advertising comes down to the question how much can I afford to spend and still do the job that needs to be done in store sales promotion to complete your work on marketing you need to think about what you want to happen after spects get inside your store your goal is to move stock off your shelves and displays at a profit and satisfy your customers you want repeat customers and money in your cash register to encourage people to buy self-service stores rely on layout attractive displays signs and clearly marked prices on the items offered for sale other stores combine these techniques with personal selling lists the display counters racks special equipment and other fixtures figure the cost of all fixtures and equipment by listing them on a worksheet draw several layouts of your store and attach the layout that suits you to the cost worksheet determine how many signs you may need for a 12-month operation and estimate that cost also if your store is a combination of self-service and personal selling how many sales persons and cashiers will you need personal attention to customers is one strong point that a store can use as a competitive tool you want to emphasize in training employees that everyone has to pitch in and get the job done customers are not interested in job descriptions but they are interested in being served promptly and courteously nothing is more frustrating to a customer than being ignored by an employee decide what training you will give your salespeople in the techniques of how to greet customers show merchandise suggest other items and handle customer needs and complaints buying when buying merchandise for resale you need to answer questions such as who sells the line to retailers is it sold by the manufacturer directly or through wholesalers and distributors what delivery service can you get and must you pay shipping charges what are the terms of buying can you get credit how quickly can the vendor deliver filling orders you should establish a source of supply on acceptable terms for each line of merchandise and estimate a plan for purchasing as follows 1 how many days or weeks does it take the supplier to deliver the merchandise to your store to who pays youth the buyer the supplier freight or transportation costs are a big expense item three what is the suppliers policy on filling orders that is do you have to buy a gross a dozen or will the supplier ship only two or three items how long does it take for the delivery to get into your store stock control often shoppers leave without buying because the store did not have the items they wanted or the sizes and colors were wrong stock control combined with suppliers whose policies on filling orders are favorable to you provides a way to reduce walkouts the type of system you use to keep informed about your stock or inventory depends on your line of merchandise and the delivery dates provided by your suppliers your stock control system should enable you to determine what needs to be ordered on the basis of one what is on-hand to what is on order and three what has been sold your accountant can help you set up a system that is best for your business inventory control is based upon either a perpetual or a periodic method of accounting that involves cost considerations as well as stock control when you have decided what system you will use to control stock estimate its cost you may not need an extensive and expensive control system because you do not need the detailed information such a system collects the system must justify its costs or you will just waste money and time on a useless effort stock turnover when an owner buys reasonably well you can expect to turnover stock several times a year what is the average stock turnover per year of your line of merchandise how many times do you expect your stock to turnover behind the scenes work in a retail store behind the scenes work consists of the receiving of merchandise preparing it for display maintaining display counters and shelves and keeping the store clean and attractive to customers the following analytical list will help you decided what to do and the cost of those actions first list the equipment for example a marking machine for pricing shelves a cash register you will need for one receiving merchandise to preparing merchandise for display three maintaining display counters in shelves and for keeping the store clean next list the supplies you will need for a year for example rooms price tags and business forms who will do the backroom work and the cleaning that is needed to make a smooth operation in the store if you do it yourself how many hours a week will it take you will you do these chores after closing if you use employees what will they cost on a worksheet describe how you plan to handle these tasks list and analyze all expense items in the same manner examples are utilities office help insurance telephone postage accountant payroll taxes and licenses or other local taxes if you plan to hire others to help manage analyze these salaries put your plan into dollars at this point take some time to think about what your business plan means in terms of dollars this section is designed to help you put your plan into dollars the first question concerns the source of dollars after your initial capital investments in a retail store the main source of money is sales what sales volume do you expect to do in the first 12 months startup costs list the following estimated start-up costs fixtures and equipment starting inventory decorating and remodeling installation of equipment deposits for utilities legal and professional fees licenses and permits advertising for the opening accounts receivable operating cash other costs whether you have the funds say in savings or borrowed the money your new business will have to pay back startup costs keep this fact in mind as you work on estimating expenses and on other financial aspects of your plan expenses connection with annual sales volume you need to think about expenses if for example you plan to do sales amounting to $1,000,000 per year what will it cost you to do this amount of business how much profit will you make a business must make a profit or close here's a list of possible expenses you will need to take into account payroll and other employee expenses occupancy expenses office supplies and postage advertising telephone bad debts delivery insurance taxes other than real estate in payroll interest depreciation other than real estate supplies legal and accounting expenses dues and subscription travel buying an entertainment in classified expenses cash forecasts a budget helps you to see the dollar amount of your expected revenue and expenses each month then from month to month the question us will sales bring in enough money to pay for the stores bills the owner must prepare for the financial peaks and valleys of the business cycle a cash forecast as a management tool that can eliminate much of the anxiety that can plague you if your sales go through lean months is additional money needed suppose at this point that your business needs more money than can be generated by present sales what do you do if your business has great potential or is in good financial condition as shown by its balance sheet you will borrow money from a bank most likely to keep the business operating during startup and slow sales periods the loan can be repaid during the fat sales months when sales are greater than expenses adequate working capital as needed for success and survival but cash on hand or the lack of it is not necessarily an indication that the business is in bad financial shape a lender will look at your balance sheet to see the business's net worth of which cash and cash flow are only a part the balance sheet statement shows a business's net worth financial position at a given point in time say at the close of business at the end of the month or at the end of the year control and feedback to make your plan work you need feedback for example the year and profit and loss statement shows whether your business made a profit or took a loss for the past twelve months don't wait 12 months for the score to keep your plan on target you need readings at frequent intervals an income statement compiled at the end of each month or at the end of each quarter as one type of frequent feedback also you must set up management controls that help you ensure that the right things are done each day in week organization is needed because you as the owner cannot do all the work you must delegate work responsibility and authority the record-keeping systems should be set up before the store opens after you're in business it is too late the control system that you set up should give you information about stock sales receipts and disbursement the simpler the accounting control system the better its purpose is to give you current useful information you need facts that expose trouble spots outside advisers such as accountants can help stock control the purpose of controlling stock is to provide maximum service to your customers your aim should be to achieve a high turnover rate on your inventory the fewer dollars you tie up in stock the better in a store stock control helps the owner offer customers a balanced assortment and enables you to determine what needs ordering on the basis of one what is on hand to what is on order and three what has been sold when setting up inventory controls keep in mind that the cost of the stock is not your only cost there are inventory costs such as the cost of purchasing the cost of keeping stock control records and the cost of receiving and storing stock sales in a store sales slips and cash register tapes give the owner feedback at the end of each day to keep on top of sales you need answers to questions such as how many sales were made what was the dollar amount what were the best-selling products at what price what credit terms were given to customers receipts break out your receipts into receivables money still owned such as a charge sale in cash you know how much credit you have given how much more you can give and how much cash you have with which to operate disbursement your management controls should also give you information about the dollars your company pays out in checking on your bills you do not want to be penny wise and pound foolish you should pay bills on time to take advantage of supplier discounts your review systems should also give you the opportunity to make judgements on the use of the funds in this manner you can be on top of emergencies as well as routine situations your system should also keep you aware that tax monies such as payroll income tax deductions must be set aside and paid out at the proper time breakeven break-even analysis as a management control device that approximates how much you must sell in order to cover your costs with no profit and no loss profit comes after breakeven profit depends on sales volume selling price and costs break-even analysis helps you to estimate what a change in one or more of these factories will do to your profit put your plan into action when your plan is as thorough and accurate as possible you are ready to put it into action keep in mind that action is the difference between a plan and a dream if a plan is not acted upon it is of no more value than a wishful dream a successful business owner does not stop after gathering information and drawing up a business plan as you have done in working through this guide use the plan you thank you for watching please like this video
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