Business plan of your own pastry shop or mini bakery with calculations
Wondering how to open a mini baker? The process of implementing this business is divided into several stages, each of which is discussed in detail in this article.
♦ Initial investment: 475,000 rubles ♦ Payback period for business: 18-24 months ♦ Project profitability: 45-60%
A mini-bakery is a small-scale enterprise that produces and sells an extremely diverse range of baked goods.
Most often they are found in a large organization: in a supermarket, coffee shop, etc.
But for a novice entrepreneur, the option of opening a mini-bakery in a separate room will be considered.
The business implementation process is divided into several stages, each of which will be discussed in detail in this article.
Mini-bakery business plan: planning
Historical fact: Bread was invented by mistake over 7,500 years ago. The first loaf was made by an ancient Egyptian who accidentally left a mixture of flour and water in a warm oven overnight. When he returned, he found a soft dough, much more appetizing than the hard tortillas he was trying to make.
Mini-bakery project summary
More recently, any bakery products were produced in special factories on an industrial scale.
But time is ticking, and modern private entrepreneurs are ready to squeeze the giants with their mini-bakeries.
Why not, if this business idea helps not only to realize your creative inclinations, but also to generate impressive income?
What methods of additional income for the production of bakery products will you choose: a store or a cafe?
Are you planning to bake bread and other baked goods, but have no idea what business format is best for you? Check out an overview of several bakery varieties to help you decide which one is best.
If you want to start creating your own business small and are considering the option of mini-production, then you will need a small area - from 20 to 60 sq. meters, where all the production equipment will need to be located.
This type of business has limitations not only in terms of space, but also in terms of production capacity and product range.
The volume of production of bakery products here can reach 10-50 kg / hour and will amount to 3-8 tons in 1 shift, in 2 shifts - 6-16 tons per month. And you can produce from 2 to 12 types of products - it depends on the selected equipment.
The advantages of a mini-bakery include:
- small initial investment in the business and quick payback;
- minimum requirements for floor space;
- no need for independent trade organization.
- dependence on a limited circle of customers;
- limited assortment;
- small production capacity.
It is important to include bakery market analysis and research in your bakery marketing plan to provide future investors with evidence that your project has the potential to be successful. Below are a few general marketing strategies to help you achieve your bakery's goals before and after opening day.
When doing market research for your bakery, you should focus on collecting primary and secondary data. Primary data is collected through direct communication with your potential customers and determining the competition. If you're not sure where to start, there are companies you can hire to do your primary research.
One way to collect primary data is to offer your products on a smaller scale, for example, at a farm stand or in a kiosk. This way, customers can try your products and leave a review before you open your store. It will also help you understand how and with what products you can attract customers in the future.
Secondary Survey is the collection of data from external sources, including censuses, trade associations and other local organizations. This information includes demographic information that is critical to determining the target audience for the bakery.
Business bakery from scratch: defining the target audience of the bakery
Who will help open a bakery business from scratch, of course, your target audience. Your bakery's target market refers to the specific customers or businesses you want to sell your wares to. By identifying your target market, you will eventually be able to know what your niche will be. This can be one of the main keys to success in any area of business. When defining your market, it is important to be as specific as possible. Start with a broad one, such as defining who you want to do business with. Most bakeries will sell goods to customers in their store, while some will only sell to other businesses such as eateries, restaurants and cafes. Nowadays, you also have to consider what geographic area you want to serve and the type of customer in that area. Once you've completed your research and identified your target audience, it's time to start doing market analysis. This is especially important for potential investors.
It is important to pay attention to the following points:
- What is the average income in this area?
- How much do locals spend on eating out?
- What other bakeries charge for groceries which will you suggest?
Bakery Marketing and Its Tools
Bakery marketing is clearly planned and sequential actions that allow you to structure your activities for the future growth of your business. Since you already have the perfect bakery startup location as well as delicious products, it's time to let everyone know that you are open for business. Consider including the following steps in your marketing plan after the bakery officially opens.
Set your marketing goals. As your bakery is entering its first few days of operation, it is important to set your marketing goals. They are designed to help you achieve the sales goals that you previously set in your bakery business plan. Setting these marketing goals gives you the standard for achieving your future results. This will help you understand if your strategies are working or if you need to try something else.
- How many hours per month are you planning to devote to marketing your business?
- Which social media channels will help you attract your target audience?
- How many subscribers are you planning to have social media by the end of the year?
- How many trades are you planning per month? What will be the average income from these transactions?
- What percentage of the bakery market in your area do you expect to have by the end of the year? In two years? Five years?
A mini-bakery business plan with calculations can be ordered from specialists or drawn up independently. It describes in detail the future assortment, the audience for which the company is designed, the price range and other subtleties. A ready-made bakery business plan takes into account the possibility of expansion or franchise, helping to increase the profitability of the business.
Planning: Things to Consider
The confectionery business plan necessarily includes:
- a detailed description of the future assortment;
- analysis of the audience and prices of competitors;
- a list of required equipment, taking into account the expansion of production;
- advertising and promotion;
- calculation of estimated income;
- profitability of the project;
- the possibility of expanding production, selling a franchise, working with retail.
The preparatory stage is given at least 2 months. Ideally, you need to take into account the seasonality, study all competitors, which include not only mini-productions, but also large bakeries, own bakeries at stores, cafes and pastry shops.
Before making a business plan, you need to study the range of competitors. Such a mini-research will help to understand what types of baked goods are in demand, which is clearly lacking in the market. You should not rely on products that are produced by most bakery factories. The highlight of a mini-bakery can be grain bread, pastries with the addition of nuts, spices, dried fruits, honey and other natural ingredients. Some enterprises include national specialties in the list of products: Georgian or Armenian lavash, Ossetian pies, Tatar pastries.
The assortment of the confectionery-bakery must include at least 10 varieties of pastries. However, too wide a choice will be more a minus than a plus. In this case, the percentage of utilization increases, and it will be difficult for the same client to decide, and he may simply refuse to purchase. Having selected successful positions, it is important to ensure their continued presence in the sale. The client must be sure that he will always be able to buy the baked goods he likes.
Audience and price range
Prices in a private bakery are usually slightly higher than in a regular store. You can expand your buying audience and attract low-income but larger segments of the population with the help of special promotions and markdowns. For example, it is worth selling yesterday's baked goods for half or even a third of the price, forming sets in which each bun or cake will cost less than the same item purchased separately. Such promotions must be widely advertised. They do not bring a loss, because part of the products is disposed of in any case. However, expired products cannot be sold, this threatens with serious sanctions and even the closure of the bakery.
Step-by-step instructions for opening a bakery
One of the most popular trends in recent years is mini-bakeries. The boom in this segment is largely due to a change in the culture of bread consumption: residents of large cities, especially millennials, are increasingly preferring fresh baked goods over cheap mass-produced products.
According to NPD Group, from December 2021 to November 2021, the number of visits to Moscow bakeries increased by 28%, in St. Petersburg this figure was 16%. Last year, the average bill in Moscow bakeries was 156 rubles, which was about half of the average bill for restaurants (278 rubles).
Most of the guests at bakeries are women (65%) and families with children. The share of “take-away” sales in this segment is quite large - as a rule, it is two times higher than in other HoReCa segments.
Depending on the distribution channel and organization of production, mini-bakeries can be conditionally divided into several types:
- Full-cycle bakeries that manufacture products at the point of sale.
- Bakeries that bake products from a partner's ready-made semi-finished products.
Bakeries that only manufacture products and deliver finished products to points of sale.
Bakeries that supply finished products and semi-finished products frozen to points of sale.
Finding a room and choosing a location