Business plan for the production of bread
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Using this sample bakery business plan as a template, you can easily create your own bakery business plan, fully tailored to your specific conditions.
Overview Section This business plan assumes the opening of a small bakery. The organizational and legal form of doing business is an individual entrepreneur. This form of doing business will save on taxes and simplify accounting and mutual settlements. The success of the project is assessed as very high, since the demand for bread and bakery products remains consistently high almost always. The main task at the first stage is to occupy your own low-competitive or medium-competitive niche.
Description of the enterprise It is planned to open a mini-bakery engaged in baking bread and bakery products and designed for round-the-clock operation.
Description of services This business plan assumes the organization of a mini-bakery that produces bread and bakery products and distributes them through retail stores - supermarkets, grocery stores within walking distance, kiosks.
Market Analysis In this section of the business plan, it is necessary to give a detailed description of the bakery market in your region (or locality), and not only direct competitors - mini-bakeries, but also medium and large manufacturers should be noted.
Production plan The first step in implementing a business plan for creating your own bakery will be finding and selecting a suitable premises. Note that the ideal premises are those located on the outskirts of the city. They are much cheaper if you own them, and the rental rates for them are much lower if you rent them (recommended). It is very important that the room is connected to electrical, gas and water supply networks or there is a possibility of such subsequent connection. The minimum size of the premises for a bakery is 60 square meters. In parallel with the search for premises, it is necessary to tackle the issue of purchasing bakery equipment. It can be either used equipment or a completely new domestic or foreign manufacturer. Note that there is domestic bakery equipment operating both from electricity (PK-16E oven) and gas networks (PK-16G oven). Such electric ovens consume about 12-15 kW of electricity, and gas ovens consume even less. The cost of such equipment for a bakery is about 600.00 rubles. We will calculate the specific cost of all equipment in the financial section of the business plan. In the meantime, we note that in general we need the following equipment: - a flour sifter - a kneader - a proofing cabinet - a bakery oven - filling dispensers - cutting tables All this equipment is now available from many manufacturers. Moreover, most manufacturers install, commission and start up equipment. After purchasing the equipment and its commissioning, you can proceed to the search for workers. For a small bakery with a productivity from 500 to 2021 kg of products per day, 4 workers working in 2 shifts are enough. In addition, you will need a driver to deliver bread to stores and a manager who is involved in the implementation and signing of contracts.
Sales plan This bakery business plan provides for the sale of finished products by the manager through retail stores by establishing an agreement and signing contracts. Delivery of finished products to the point of sale is carried out by a forwarding driver.
Financial Plan Next, we will look at the main financial aspects of creating a mini-bakery. Expenses: Rent of premises - 300.00 rubles per year Equipment - 500.00-2. 00. 00 rubles per year Personnel salary - 1. 40. 00 rubles per year Total: 2. 40. 00-3. 40. 00 rubles for the first year of work Income: Sale of bakery products - 3 rubles per unit of manufactured products - this is approximately from 6. 00 to 15.00 rubles per day, depending on the capacity of the bakery. This is from 120.00 to 450.00 rubles per month. Thus, it can be seen that the payback of this type of business is from 6 months to a year, depending on the productivity and the number of employees. Therefore, the bakery is a fairly liquid business with a short payback period.
We hope our bakery business plan helped you and thanks to it you will be able to organize your profitable bread production business and now you know exactly how to open a mini bakery.
By developing and implementing a bakery business plan, you can be almost sure of success, despite unstable economic times. By focusing on the production of high-quality essential products, which include bread, you can count on a steady income. The aroma of fresh pastries always attracts visitors to a private bakery or mini-cafe, where you can have breakfast and a snack at lunchtime or at the end of the working day.
What to write in the bakery business plan summary
A resume is the most important section of a bakery or pastry shop business plan. It summarizes the financial, organizational and strategic arguments for the proposed project and the products to be produced, designed to focus the attention of potential investors on the benefits of business participation. The resume opens a business plan, but it is drawn up after a thorough study of the niche, after all the calculations and the determination of the place of business by the novice entrepreneur. The information included in the resume should be based on the data in the subsequent sections of the business plan.
For better clarity, it is recommended to arrange the business plan in the form of a presentation.
Project goal and objectives
This section provides an opportunity for an entrepreneur to express his views on the products manufactured and their demand and benefits for the population of the surrounding areas. The following can be used as weighty arguments in favor of opening the production of bakery products:
stability of demand for bread;
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no chemical additives;
dietetic bakery products;
creating an atmospheric bakery-based diner;
Not a single person has ever done without bread. Gone are the days when one bakery provided the whole city with fresh produce. Nowadays, private bakeries are becoming more and more popular, which make bread production unique and different from the rest. This is the perfect business! The demand for bakery products never falls. All you need is a competent and detailed business plan, investments, formulation development and search for “your” customers.
First, the paperwork. That is, first you need to register your activity - whether it will be an individual entrepreneur, or an emergency, or even an LLC - everyone's personal business. But, for large-scale production, it would be better to register as an LLC. Prices for documentation are different in all regions. This costs approximately 10-25 thousand rubles. Not to mention the fact that many authorities must authorize your activities (and here, as you know, you cannot do without investments, they depend on the appetites of the inspectors).
Secondly, the premises. Bread production requires a large area, because in addition to the workshop where baking will be carried out directly, we also need workshops where the dough will be kneaded, finished products stored before sale, as well as warehouses. On average, about 70-120 squares of the total area.
It is also worth considering in advance where your bakery will be located. If you plan to sell bread directly from it, then it should be located in a place where there is high traffic of people.
On average for a room (rent, purchase, repair) about 200-400 thousand rubles. In different regions, this figure can fluctuate both lower and higher.
Third, equipment for the production of bread. Here options are possible: either buy a new factory one, or use a used one. The first option is more expensive, but more reliable. The second is less expensive. At the same time, there is no guarantee that the equipment will not "stand up" during operation, thereby disrupting all work and ruining the raw materials. For new equipment will have to pay about 50 thousand dollars. Used will cost an order of magnitude cheaper. Equipment includes:
This is the most basic list of equipment that will allow you to bake bread in volumes of 500-700 kg per day. Equipment also includes:
- racks where bread will be stored until sale
- racks where raw materials will be stored
- machine for packaging products
- knives, forms and other small equipment.
Fourth, it is worth spending money on raw materials in advance. Each bread production technology implies its own recipe, and therefore its own raw materials, which will be included in the composition. It is important, even at the stage of developing a business project, to think about what specific type of bread you will make. The ideal option would be a combination in the production of both traditional and universally demanded types, and bread according to your own unique recipe (you can develop it yourself or with the help of specially hired technologists). General in technology: processing of raw materials, kneading and proofing of dough, baking. Suppliers of raw materials must be chosen very carefully, even meticulously - all products must be fresh, have a real shelf life, and most importantly - be delivered on time. After all, if the delivery of raw materials (the same flour) is delayed, then you will have nothing to bake from, which means that the production will be idle.
Even if your idea is a mini-bakery, you will not be able to avoid extensive investments. The only difference between a small workshop and a large one is the volume of finished products. But it turned out that small bakeries are more profitable in a highly competitive environment. This is achieved due to the fact that their niche is unique - the production of such products that no one else has. The unique formulation works better and more efficiently than large volumes.
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Bread is the main food product that is bought regardless of the level of income, therefore, opening a bakery production is considered a profitable business.
On our website, we present to your attention an approximate business plan for a mini bakery, which will help not only to establish the production of baked goods, but also to organize the timely supply of raw materials, as well as to establish a sales market.
As a rule, the main task of this business is: stable income, quick payback, development.
The key to opening a bakery is the choice of premises. First, you need a room that is at least sixty to one hundred and twenty square meters. Secondly, the premises must meet certain requirements:
- The bakery must not be opened in basements or semi-basements;
- A waterproof floor must be provided;
- Walls must be painted in light colors on the level of 1.75 meters from the floor, the rest of the walls and ceiling must be whitewashed;
- Sewerage, hot and cold water must be available;
- There must be utility rooms equipped as a warehouse for finished products , raw materials warehouse, changing room for employees, restroom;
- A very important point is the equipment of the room with ventilation systems.
After you have found a room that meets all the necessary requirements and standards of the sanitary-epidemiological station, you must be issued a production certificate.
In the absence of this certificate, you are not entitled to manufacture products. In addition to the certificate for production, a certificate of a sanitary and epidemiological conclusion for the sale of products, a permit from a fire inspection, and a permit from an environmental examination are issued.
Without the listed package of documents, it is prohibited to start production and sell products.
In big cities, hot baked goods are in great demand among the population. Also, the townspeople love delicious pastries. Starting a bakery from scratch requires an initial investment and a business plan. What are the key features of this business and recommendations for a budding entrepreneur?
Prospects for opening a bakery
Back in the Middle Ages, there were always bakeries and bakeries in cities. City dwellers have always loved hot baked goods. This tradition has survived to this day. For some, fresh baked goods are a great way to have a quick bite, for some, flatbreads will be a good addition to the dinner table, while others will rightfully appreciate pastries. At the moment, in large cities, even fast food establishments cannot completely oust classic bakeries from the market, since many prefer more natural food. In addition, baked goods are often significantly cheaper than fast food. Therefore, a business in the production of hot baked goods is a profitable and promising direction that can bring stable profits.
There are currently a large number of bakeries. If earlier everything was standard and was limited to an ordinary kiosk selling pies or a tent where baked goods from tandoor were sold, now various directions are in trend.
Select an option
The concept of a classic bakery includes a small establishment (it could be a kiosk), where pies, buns and bread are made almost in front of the customer's eyes. They are immediately put up for sale there. In our country, baking from tandoor (this is a special rounded oven) and pies are especially popular. The first option is especially popular in Moscow and in regions where there are many Muslims among the population, for example, in Chechnya or Tatarstan. But baking pies is stronger in other Russian regions. In Moscow, pies used to be sold in subways near the metro until such kiosks began to be demolished.
Full and partial cycle production
At a full-cycle enterprise, the entire process takes place from start to finish: flour, sourdough, spices and additives are purchased. The product turns out to be original. This is a more profitable but also more expensive option. In an incomplete cycle, semi-finished products are bought, most often frozen, the business is baking and selling. For a budding entrepreneur, this is much easier, but the profitability will also be lower.
There are many franchise proposals for part-time bakeries. Is this a promising direction? The upside is that you don't have to invest in advertising - your brand is already recognizable. With a competent approach to your business, it is really possible to squeeze the maximum benefit out of this option. But it is unlikely that it will be possible to reach the level of profit of a full-cycle enterprise under a franchise.
A mini bakery can also be a home business option. It is attractive for its availability and lack of high costs. The main thing is to find customers and buyers who are ready to purchase your products. However, if you set up an online store, you can sell and deliver baked goods directly. In this case, for a successful business, you will need to offer the market a unique product.