4 Reasons Why Your Small Bakery Needs A Business Plan

Your Start-up Bakery business needs a basic business plan
Your Start-up Bakery business needs a basic business plan

I have been dealing with many individuals of late who either have small bakery startups or want to start, this is due to my baking short courses and startup training. I have gradually noticed something that is rather startling, most of them don’t have a business plan for their small bakery startups. I have also noticed that most of these startup entrepreneurs don’t seem to understand the importance of a business plan; even a basic one. This is a topic that I’ve covered in detail in my new book that will be available in December on starting a small bakery business successfully (Yay! – can’t wait to launch it). I believe it’s necessary to state the importance of a business plan hence the inspiration for this post ^_^. I will share with you four simple, yet very important reasons why you should have a basic business plan for your small bakery business.

  • It helps you have a focused menu by stating the products and services your bakery offers

This is very important since it helps you focus on your niche products and services while creating your small bakery menu. It is particularly important since having niche products will mean that you focus your business efforts to a specific market segment. This means that you’re able to use your marketing and sales resources to target the right type of customer for your baking business.

  • A Business plan helps you focus on your target market

In order for a small bakery business to be successful, it has to have an effective and realistic marketing plan. The first thing that will assure business success in your small bakery is knowing your target market. These are basically the type of customers you are targeting; the type of customers who are highly likely to purchase your baked goods and other services you provide. You can click on this link on a more detailed explanation on selecting a target market on my business blog. Knowing your target market will ensure that your marketing budget is measurable, selling to the right customers and doesn’t go to waste. This is another way of saving costs in your bakery business that will give you a higher chance of business success.

Focus your marketing efforts to your target market (Image: pixabay.com)
Focus your marketing efforts to your target market (Image: pixabay.com)
  • Helps you have a solid and sustainable financial plan to achieve business success

Another important part of your business plan is the financial plan. It not only states your business startup budget, it also states the amount of working capital you will require to sustain your small bakery business for the first few months of operation. Most entrepreneurs who start their businesses without a business plan find themselves running into cash flow problems within the first two months of operation and have to start finding solutions to their financial challenges. This reduces focus on your bakery business and may become quite a problem due to day to day cash demands such as production purchases. Make sure you plan ahead in order to avoid such challenges in your small bakery business; this will reduce your chances of business failure.

  • A business plan shows the blueprint and direction of your small bakery business

When you write a business plan for your small bakery, it states in a clear way the type of business set-up you have in place. It also shows the direction in which your business will take as you get started. Your plan states different aspects of  your bakery business such as what you’re selling, who you’re selling to, how you will produce and sell your products, as well as why you are selling (what problem you solve in the market). As  your business grows and expands – your business plan will change; however, it’s always good to have a starting point in which you can go adjusting as you encounter changes in the baking industry and/or with your business model. If you are a small bakery business owner or you’re thinking of starting one anytime in the future, I hope you have understood the importance of having a basic business plan. Have any questions on writing a basic business plan? Please feel free to comment below. If you want a more in depth understanding on how to start up a small bakery business successfully – please sign up for my book pre-sale list and you’ll be sure to get my first copies when it’s published and launched in December. For more information on small business bakery startups, please visit the ‘Baking for Business in Kenya‘ Page. Please share this post with your friends or anyone you feel will benefit from this information. Sharing is caring ^_^

Published by Amari

Baking with Amari offers learning experiences in form of short baking and cake decorating classes. We have a baking workshop at Discounts Arcade, Shop no. 51 on Ngong road (Adams Arcade area next to The Green House), in Nairobi that offers baking & cake decoration learning experiences for those who want to learn what bakers and cake decorators do in a practical/hands on Bakery kitchen. We have both online and practical/physical classes. We also offer baking business start-up training and group mentorship as well via our Baking for Profit Program. We also sell locally tested baking recipe books (soft copy & printed books).

3 thoughts on “4 Reasons Why Your Small Bakery Needs A Business Plan

    1. Hi, for the printed book – please purchase from Topserve Ltd (topserveltd.co.ke) for the e-book; you can reach out to us on no. 0701796688 (9 am to 5 pm: Monday to Friday) for full details please


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