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What to Include in a Home Bakery Business Plan


With a perfect bakery business plan and excellent baking skills, one can kick start her bakery business and make fruitful profits. A perfect plan is one of the most crucial things when starting any business. Here are a few things to let you know how to plan before staring a home bakery:

Target Audience

Before beginning any business, one must decide the target audience, i.e. for what type of audience are the bakery products geared towards. Are they for little children who enjoy eating freshly baked items or are they meant for adults who throw a dinner party for their friends?


The way you establish the home bakery depends on the budget. Decide what amount you are willing to spend for starting the bakery business. Depending on the budget, plan the equipment and items to be purchased. The minimal items that are required to start a bakery are mixers, ovens, display cases, cooling racks, baking dishes, wrapping material, boxes and cutlery.

Kitchen Space

Plan for separate kitchen space for baking the food. The rules and regulations of many states do not allow cooking items for commercial purpose from one's personal kitchen. Following good sanitary practices is also a must.

Research about the Market

Before you actually begin the bakery, spend sufficient time doing research about the different similar type of bakeries. Check for the number of items available, the cost of different items, quality of the items, etc. Also, find out what has been the hot selling baked goods and what has not been commonly available in most stores (but is asked for by customers). This will help you create a plan to distinguish yourself from the competition.

Purchase Plan

Collect information about different retail and wholesale shops. Find out the rates of food commodities at different stores. Buying bulk items from wholesale shops can work out to be cheaper. You can get quality products at a lower price.

Baked Goods and Prices

List out all the items that you would like to serve in the home bakery. Write down the commodities required for each item and their prices. Calculate the cost of making each item and decide the price of each item. The price must not be too low that you hardly make any profits, nor too high that no customer would buy it. Fix the charges so you get paid enough for all the time and effort you have put in. No business flourishes without aim and a proper target. Fix the target for each week and increase it as the business begins to grow.

Social Networking

For any business to flourish, it must be known to a large number of people. Before starting the bakery business, it is a must to plan building the social network, and introduce the bakery to wider range of people.

Licensing the Bakery Business

Many states require licensing of the home bakeries. Hence, obtaining a business license to your home bakery must be planned in advance. Some states also require inspection of the bakery by health departments. 

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