bakery shop business plan in philippines

How To Start a Bakery Business in the Philippines: A Beginner’s Guide

Pinoys love to eat bread. It’s a staple food in the country second only to rice. For this reason, the bakery business in the Philippines is one of the most profitable ventures you can invest in.

Let’s find out the ins and outs of opening a bakery business in the Philippines and whether or not it’s the right business idea for you.

Go back to the main article: Best Small Business Ideas in the Philippines with High Profit

Table of Contents

Who should start a bakery business, 1. monthly rent, 2. equipment, tools, utensils, 3. ingredients.

• 4. Delivery Vehicle (Optional) 

a. Cost of Utensils

B. equipment, c. raw materials/ingredients, how much does a bakery business earn, 1. evaluate the reason why you want to open a bakery business, 2. take up baking courses, 3. perform basic market research, 4. find a good location, 5. decide whether to franchise or go on your own, 6. secure the required permits and certifications, 7. start small, 8. buy baking equipment, 9. know your ingredients, i. direct cost, ii. indirect cost, iii. production cost, b. sample product pricing (pandesal business), 11. hire employees, 12. learn how to innovate, tips and warnings.

Full-time entrepreneurs with experience in baking either through a previous job in a bakery or paid hands-on training.

How Much Capital Is Needed To Start a Bakery Business?

Initial investment ranges from ₱50,000 to ₱ 150,000 depending on the monthly cost of rent, equipment, utensils, ingredients, and business permits . Let us discuss every expense you will incur as you start your bakery business.

Unless you have your place, rent will be one of your bakery’s fixed costs. If you’re aiming to place your business in an urban city or populated areas like malls, schools, churches, or jeep/bus terminals, you need to prepare at least ₱10,000 for rent. 

Meanwhile, rental fees are much cheaper in rural areas, towns, or small barangays which might cost only at least ₱5,000. 

You must have a budget of ₱40,000 – ₱100,000 for baking equipment 1 . Estimated prices of some baking equipment are listed below.

• Stainless gas ovens with 2 – 12 plates cost ₱18,000 to ₱30,000
• Stainless steel banca ( pasong ) costs ₱3,500 to ₱5,000 depending on sack capacity
• Display rack ( estante) costs at least ₱10,000 to ₱16,000. You can also purchase smaller bread racks that cost ₱3,500 – ₱4,000
• Dough roller costs ₱35,000 and above depending on horsepower
• Other baking tools and utensils include rolling pin, dough cutter, weighing scale, measuring cups, spoons, and spatula with a total cost of not more than ₱2,000. 

There are stores that sell baking equipment packages which are usually cheaper than buying one at a time. Furthermore, you may also consider acquiring second-hand equipment from previous bakery owners as long as they are still in good shape. 

These include flour, sugar, egg, and salt which might cost you not more than ₱2,500. 

4. Delivery Vehicle (Optional)

You may also want to invest in a motor vehicle that enables you to deliver your bread products. A motorcycle together with a sidecar is priced at least ₱90,000.

Sample Breakdown of Investment Requirements (Pandesal Business)

The total capital needed to start a bakery business also depends on what type/s of bread you’re planning to sell. If you’ll exclusively sell plain or malunggay pandesal, for example, the cost to put up the business will be significantly lower since its ingredients are inexpensive and readily available (see the table below to have an idea of how much money you need to start a pandesal bakery).

What Are the Pros and Cons of Having a Bakery Business?

• Filipinos love to eat bread any time . At breakfast, they love eating pandesal and monay with a hot cup of coffee. Come merienda time, they usually snack on sweeter bread varieties like ensaymada, mamon, cheese bread, and pan de coco, washing it down with a cold bottle of their favorite soft drinks.  If you are to open a bakery business in the Philippines, bread and beverage are the perfect combos to sell.
• You have ready buyers regardless of the social class you’re trying to target. For the masa , classic Filipino bread is a proven best-seller. The higher-end market, on the other hand, buys more expensive varieties like hamburger buns, French bread, and cinnamon rolls.
• People buy convenience. The working class is too busy (or broke) to sit down in a fine dining restaurant to eat. They want an affordable food product to satisfy their cravings like bread that they can easily buy from a bakery and bring wherever they go.
• It’s more demanding than a food cart business or other food businesses that require smaller capital. Apart from the initial investment, you also have to invest a lot of your time, dedication, and patience to see through the tough times. That’s why people who start a bakery business in the Philippines without any passion for bread-making rarely succeed.
• With lots of bakeries around, setting up a new one means facing a lot of competitors. It might be challenging to offer something new or high-quality to entice potential customers.

Earnings from a bakery business depend on your daily number and type of bread produced, number of sales, and the cost of ingredients used. Generally, the minimum profits of a small bakery business range from ₱1,000 – ₱2,500 per day.

For instance 2 , a bakery with 1 sack of first-class flour (25 kilos) can create a 50-kilogram dough that can produce around 1,670 pieces of pandesal (assuming each piece is at least 30 grams). The average market price of pandesal is ₱2, so if you use one sack of flour per day to produce pandesal , your total revenue is around ₱3,400. The estimated total cost of ingredients used for this amount of pandesal is ₱1,900. Hence, the profit from a sack of flour of pandesal per day is around ₱1,500.

If your bakery produces a variety of bread types, there is a higher chance of earning more. You can pump up your profits up to ₱2,500 daily 3 . However, beware of the risk of experiencing a loss due to additional ingredient costs if you’re planning to produce more bread types.

How To Start a Bakery Business in the Philippines: 12 Steps

Running a bakery business in the Philippines is challenging.

Money is not the be-all and end-all of opening a bakery. You also need the knowledge capital that will help you manage the minute details of this food business.

If you’re just here for the money without the passion, training, and expertise needed, you might quit in the face of struggles. Know your purpose and start from there.

Starting a bakery business is different from baking cookies at home. You can learn the latter through YouTube tutorials and books about baking.

Baking for a lot of people, on the other hand, requires you to scale everything up.

People love to buy from bakeries that produce a hundred or thousand pieces of bread with the same taste. And this consistency can be achieved if you hire bakers who know about business-scale baking.

But what if one or all of your bakers suddenly quit? Unless you also know how to bake, your bakery business will inevitably stop operation.

Fortunately, there’s no shortage of schools or training programs that can teach you hands-on baking experience.

Flour mills provide free or paid baking courses as part of their marketing efforts. The knowledge and skills they teach are recommended for aspiring bakery business owners because their seasoned instructors teach not only hands-on baking experience but also the business side of it.

One month of training experience should be enough to equip you with the tools you need to start running a bakery business.

The following is a list of baking schools owned and operated by flour mills:

• A baking school in BF Homes, Parañaque City run by Pilmico Foods Corp .
• Maya Kitchen in Makati City is owned by Liberty Flour Mills.
• A baking school in Cebu City run by General Milling Corp.

If you’re planning to open a bakery that will exclusively offer pandesal, you can grab the training opportunities offered by these institutions:

a. Department of Science and Technology – Science and Technology Information Institute (DOST-STII)

Address: Gen. Santos Ave. Upper Bicutan, Taguig, Metro Manila

Tel. Nos.: (632)837.2191 to 95 / Telefax: 837.7520

Email: [email protected]

Website: http://www.stii.dost.gov.ph

b. Techno Learning Resources and Community Empowerment Livelihood Center, Inc. (TLRCE)

Address: Room 504, De Oro Bldg., EDSA-Boni Ave., Mandaluyong City, Metro Manila

Tel. Nos.: 84259217 / Mobile: 0998-791-7090 and 0917-378-4224

Facebook Page: TLRCE Livelihood Center, Inc.

Assuming that you’re planning to open a bakery business with small capital, you don’t need to spend a lot of resources on market research.

You can do it on your own by asking people about their favorite bread, observing their behavior, and studying the products and pricing strategies of your close competitors (if there are any).

The results of your market research should reveal the following:

• Your target market and the type of products that suit them . If you live in a rich neighborhood, serving French bread and other high-end varieties makes a lot of sense. However, it won’t work in a bakery located in Tondo or smaller barangays in provinces where people prefer pandesal and other cheap bread they’ve become accustomed to.
• Your competitors and how to differentiate your bakery from theirs. Competition is good if you look at it as a sign that there’s a demand for your product. In the case of bakeries, your competitors can help you understand whether there’s enough profitability, learn about the products that make them profitable and get ideas on how to make your bakery better than them.

In order for your bakeshop to flourish and recoup the initial investment faster, you must put it up in a residential area where there’s a great amount of foot traffic.

Ideally, the bakery business should be located where your house is, so you don’t have to worry about paying monthly rental fees. However, you can still rent a space as long as there’s enough foot traffic to justify it.

Good locations for a bakery business include:

• Near the entrance of or within residential areas with at least 2,000 households
• Jeepney, taxi, or tricycle terminals

In any food business, the first few months or years are always the toughest.

Without prior experience, you will be left to your own devices. Therefore, you are more likely to commit many mistakes along the way.

But with grit, you can get through this phase and let the experience become your teacher.

For starting entrepreneurs who want to minimize risks, you can franchise a bakery business with a ready system and proven track record.

Although the franchise fee may cost more, you will also worry less since packages–like the ones offered by  Kambal Pandesal 4 of San Miguel Mills–already include baking equipment, marketing support, and free site assistance and monitoring.

Each option has its pros and cons. Weigh the risks carefully and decide based on your level of experience and capital.

By legalizing your business, you can focus more on growing your business instead of worrying about the law running after you.

Related: How to Register a Business in the Philippines: The Ultimate Guide

Bakery businesses in the Philippines need all of the following permits and certifications:

• Business name registration in the Department of Trade and Industry (DTI) if you will run the business on your own (single proprietorship) or in Securities and Exchange Commission (SEC) if the bakery is owned by a partnership or corporation.
• Mayor’s Permit or Residence Certificate & Sanitary Permit from the local municipality where the bakery business is located.
• License to Operate (LTO) as a “food manufacturer” or BFAD Certificate from the Bureau of Food and Drugs (BFAD).
• Tax Identification Number (TIN) from the Bureau of Internal Revenue.

When putting up a bakery business in the Philippines, expect to incur several mistakes and losses in the beginning.

Hence, it’s a smart move to start with whatever little money you’ve got. It’s better to act on your ideas early even with limited resources than let perfectionism paralyze you.

One advantage of starting small is you are able to test the market and learn which products sell the fastest. You will also learn the nitty-gritty of starting a bakery business without the need to open a big business from the get-go.

Remember, it’s better to start a pandesal bakery and expand later on than to start big and downsize eventually for lack of business strategy.

As your business grows, so will you. And once you’re ready for expansion, you can buy more expensive equipment for mass production and add more bread products to your inventory.

A significant percentage of your capital will be spent buying baking equipment. Since you’ll be using them daily, you must meticulously choose products that can withstand daily operations.

Depending on the size of your bakery business and the type of baked products you’ll be selling, you’ll need all or some of the following baking equipment:

• Baking trays
• Bread crusher
• Bakery oven
• Dough mixer
• Bread slicer

To help you get the best value for your money, remember these suggestions when shopping for baking equipment:

• Explore your options. Compare products in terms of price, features, and technical support. Don’t settle on one product right away without talking to different dealers.
• Buy equipment based on your daily target output. If you will be baking 1,880 pieces of pandesal, for example, you need a mixer and an oven that both can handle and process one bag of flour.
• Choose baking equipment made by local manufacturers since they can offer technical service immediately in case the equipment breaks down. In contrast, not only is imported equipment more complicated and expensive, but its manufacturer is also more likely based abroad and won’t be able to provide technical assistance right away.
• When buying second-hand baking equipment, ensure their quality is still up to snuff. One option would be to buy used equipment from baked shops that have recently expanded. Since they’ve used their old equipment for years, they can attest to their quality and offer them to you at a great discount.

The quality of the ingredients you use affects the price and taste of the baked products. Fail to pick the right ingredients, and your products may end up too bland, too expensive, or both.

In terms of cost, the price of baking ingredients fluctuates depending on demand and competition.

To keep the price of your baked products affordable despite the unpredictable market, choose locally-produced flour instead of imported varieties. The former is cheaper, fresher, and more consistent in terms of quality.

Alternatively, you can take inspiration from Yelly’s Bakeshop 5 which capitalized on bread made from vegetables. By replacing flour with mashed squash or malunggay leaves, they’ve been able to cut costs and also offer healthier, tastier, and cheaper products to their consumers.

Regardless of the type of ingredients you use, it’s important to remember that people buy bread regularly because of its familiar taste. Switching to cheaper ingredients may save you money in the short term, but the buyers you can potentially lose due to a change in taste make it not worth it.

Keep the quality of your ingredients and the process of making your products consistent. People buy quality so only give them quality all the time.

10. Price Your Products Strategically

Regardless of your target market, the price of your products should give you a good profit margin. After all, you won’t call it a business if you price them too low that you are no longer able to profit from it.

As mentioned previously, the ingredients and the formulation you use have a significant influence over how much your baked products will cost.

Under normal standards of baking a loaf of bread, one sack of flour can produce as much as 81 loaves weighing 550 grams each. If you sell it at ₱40 per loaf, you can get a gross revenue of ₱3,240.

Subtracting the overhead cost as well as the cost of materials and packaging amounting to ₱2,536.13, your gross profit margin would be ₱703.87 per bag.

a. Sample Product Costing (Pandesal Business)

The profit margin will be relatively higher if you sell pandesal that requires fewer and cheaper ingredients.

A bag of flour can produce approximately 1,800 pieces of pandesal weighing 25 grams each. Seling it at ₱2 per piece will give you a total sales of ₱3,600 per sack. From the gross earnings, you will deduct the taxes, manpower, rentals, and other overhead costs.

Even if you learned business-scale baking from the training schools or programs you enrolled in, you can’t do everything on your own.

As your bakery business in the Philippines grows, it will be indispensable to find honest, hard-working people who will take care of the daily operations while you attend to things that matter more.

Finding the right people to man your bakery business can be a matter of trial and error. You need to find experienced bakers and employees who know how to work around a bakery and will never resort to pilfering.

It’s your responsibility to teach them how to properly handle the products and ingredients. One breach in sanitation or the standard baking procedure can negatively affect the final products and eventually the reputation of your business.

To motivate your workers to do their jobs well, you should also do your part. Pay them well and treat them like a family without blurring the line between the employer-employee relationship.

Remember, a happy employee is a reflection of how you run your bakery business. And the more happy employees you have that go the extra mile for their jobs, the more happy customers you’ll gain in the long run.

With the bakery business in the Philippines becoming more saturated, you can never afford to be complacent.

Innovation means constantly upgrading your products or service to stand out from the competition. While your competitors watch your every move, innovation keeps you a few steps ahead of them through new products and ideas.

Previously, you were introduced to Yelly’s Bakeshop which uses vegetables instead of flour to make its nutritious bread. This unique selling proposition sets them apart from others who follow the same traditional baking techniques.

Whether it’s through improving customer service or offering products not found anywhere else, a bakery business should never stop conceptualizing, implementing, and testing ideas that will make them more memorable for its consumers.

• Focus on providing good products and top-notch service. Only use quality ingredients and keep the taste of your products consistent. Put yourself in your customers’ shoes and imagine how you want to be served. When all bakeries offer the same products, the only way to have an edge over others is to offer good service. Require your employees to wear proper uniforms and smile at every customer regardless of social status. Leave a good first impression, and you’ll earn repeat customers in no time.
• Be a hands-on bakery business owner. Provided that all the aspects of the bakeshop are taken care of, hard work is what will make the business last. As Metring Cuevas 6 of Cuevas Bakeshop reveals, a bakery business should be run round-the-clock because bread is a delicate product to sell. It’s not a business for the lazy so don’t open a bakery business unless you’re ready to commit your time and effort to make it a success.
• Market your bakery business to nearby stores . If you’re selling buns (monay ) or similar bread types, nearby stores may order a bulk of these bread products from your bakery. This is an effective strategy not just to introduce your product in the market but also to earn higher from wholesale orders. 
• Monitor the quantity of ingredients used in bread production. Set a target quantity of bread to produce given a certain amount of ingredients. For instance, ask yourself how many can you produce for every sack of flour. Keeping track of your usage of ingredients prevents excessive costs due to wastage.
• Bakery Equipment Canvassing. Price in the Philippines as of June 2019 [Video file]. (2019). YouTube. Retrieved October 05, 2022, from https://youtu.be/d90xsK7Qjv0.
• Jaruda, A. (Producer). (n.d.). Totoo ba na malaki ang kita sa bakery business? [Video file]. Retrieved October 5, 2022, from https://youtu.be/za4G4bjA19Y
• Magkano ang kinikita ng isang pangkaraniwang bakery? [Video file]. (2021, October 21). Retrieved October 5, 2022, from https://youtu.be/16oYmEVwGKI?t=478
• About Us. (n.d.). Retrieved October 7, 2022, from http://kambalpandesalfranchise.weebly.com/about-us.html
• My Puhunan: Nutritious bread from Yelly’s Bakeshop [Video file]. (2016, November 23). Retrieved October 7, 2022, from https://youtu.be/tWQXjpid61g
• History of Cuevas Bakery [Video file]. (2020, April 22). Retrieved October 7, 2022, from https://youtu.be/sKy1fil2h1M?t=35

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How To Write a Bakery Business Plan in 9 Steps

Learn how to write a bakery business plan, section by section. Get inspiration from examples of other bakeries.

If you consider yourself a talented baker with entrepreneurial dreams, starting a bakery is an excellent business idea you can do from home or from another brick-and-mortar space.

But before you launch into how to start a food business with your baking prowess, it’s important to write a bakery business plan.

Below, learn how to write your bakery business plan, section by section, using this business plan guide as a base. Follow along by downloading this business plan template and modifying it to fit your needs.

Why you need a bakery business plan

Not every business starts out with a formal plan, but those that do have an easier road to success. There are a few key benefits to writing a bakery business plan:

Objectively evaluates your business ideas

Writing a business plan helps you objectively evaluate your food business ideas —and researching and documenting your ideas allows you to take a step back and see if there’s really an opportunity there.

Builds a blueprint for moving forward

Your business plan serves as a roadmap for moving forward. Writing a business plan can identify the next steps you need to execute your idea. You can keep referring back to your business plan to make sure you’re on track for your original vision.

Helps figure out what you need

The process of writing a bakery business plan will also show you your gaps and needs. Listing exactly what you need to start your bakery business can show you what you’ll need to do to make it a reality.

Helps you get capital

A business plan helps you get capital, even if it’s a home bakery business plan. You won’t be able to secure funding for your business —whether from investors, lenders, banks, or even crowdfunding —without a business plan for your bakery.

Bakery business plan template

A bakery business plan sample template is immensely helpful, especially if you don’t consider yourself a writer. When you start with a template, you can see every section that you need to complete. Templates can also offer prompts to help you figure out what to say and how to say it.

This free business plan template , for example, offers a framework to simplify the job of writing out a business plan, so you can operate with confidence. It helps you analyze the market and understand how much time, money, and resources you’ll need to start and scale your bakery business.

How to write a bakery business plan

• Executive summary
• Company overview and description
• Market analysis
• Management and organization
• Products and services
• Customer analysis and segmentation
• Marketing plan
• Logistics and operations plan
• Financial plan and projections

1. Executive summary

The executive summary section of your bakery business plan summarizes the document and its contents. Remember, this is meant to highlight what’s to come in your business plan, not serve as a summary of your business idea.

Focus on your business’s core strength to draw in your reader. Keep it concise and to the point—you don’t want to lose your reader before they reach the meat of your baking business plan. Think about a hook to grab your audience’s attention.

Remember your target audience for the business plan and cater the executive summary to their needs. You might even have a few different versions of your executive summary to appeal to different readers, such as investors, lenders, or business partners.

The executive summary should be about a page in length and answer the following questions:

• What is your brand?
• What does your bakery do?
• What does your bakery want to do?
• What is the following text about?
• Why should your audience care?
• What highlights should readers be excited about?
• What do you sell and how is it different from your competitors?
• Who are your customers?
• What is your marketing strategy?
• What is your current and projected financial state?
• How much money do you need to get started?
• Who is involved in the bakery?

2. Company overview and description

This part of your bakery business plan should drill down further into your business idea. Here, you’ll want to identify your bakery’s business structure — sole proprietorship, li imited liability corporation (LLC) , general partnership, etc.—and business model .

You’ll also use this section to talk about the baked goods industry and about your specific niche within it—whether you’re offering keto-friendly, gluten-free, or otherwise lifestyle-specific items; cakes; catering; frozen desserts; savory pastries, etc. Cape Whoopies , for example, sells gourmet whoopie pies made in Maine. Its bakery business plan would make note of that in the company description section.

The company description should also outline your vision and mission statement and your value proposition . Your vision and mission statement encompass what you hope to do with your bakery, and your value proposition sums up why people would want to buy from you.

Use this section to talk about your team, including key personnel and their salaries. The bakery La Monarca , for example, would identify its two founders as well as any board members or employees.

Finally, list your short- and long-term business goals. Your business goals should be quantifiable and measurable, eliminating subjectivity. You’ll also want to put an estimated timeline for your business goals and when you hope to accomplish them.

3. Market analysis

The market analysis section of your bakery business plan quantifies how big your potential market is and validates that there’s enough demand for your business.

This section of the bakery business plan should explore the following:

• Industry trends
• Laws and regulations for the food industry
• The demographics of your target customer
• Where, why, and how they shop
• The size of your target market
• The price people are willing to pay for what you sell

You may also include a SWOT analysis , which identifies your strengths, weaknesses, opportunities, and threats, as well as a competitive analysis , outlining the competitive landscape and where your bakery fits in.

business structure of your bakery and whether you’ve elected to incorporate as a sole proprietorship, a limited liability corporation (LLC) , a corporation, or something else.

Don’t stress over the name of your bakery business too much yet—you don’t have to use your official incorporated name as your public-facing name forever. You can always file for a DBA (doing business as) or just publically drop the “Inc.” or “LLC” at the end of your name. Balkan Bites , for example, is technically an LLC called “Balkan Bites LLC.”

You’ll also want to include information about the makeup of your team, even if you plan to run the business yourself. Here are some other people and entities you might include:

• Owner . Who is the owner of the bakery?
• Business partner(s) . List and identify the role of any business partners you plan to work with. Make sure you note the ownership percentage breakdown.
• Management team . It helps to visualize the team with an organizational chart to show how roles and responsibilities are structured and contribute to your bakery’s bottom line.
• Financial advisers . Maybe they’re not in-house, but you might have contracted financial advisers or accountants helping you to manage finances.
• Employees . Even if you don’t plan to open your bakery business with employees, you might have plans to hire staff in the future. Make note of that in this section.

5. Products and services

In the products and services, you’ll list which products and services you’ll sell through your bakery. You’ll likely sell something like cakes, cookies, chocolates, pies, or even baking kits, and potentially branded merchandise products .

As far as baked goods go, consider more narrowly defined niches within the overarching bakery niche. For example, products that are tied to a specific culture, like a bakery that specializes in Italian cookies or French pastries, or event-related baked goods, like wedding or birthday cakes, all present excellent niches. You could also offer gluten-free, sugar-free, organic, or dairy-free goods.

The business plan should cover how many different types of products you’ll offer, and if you plan to release new recipes, or limited-edition or seasonal items.

You’ll also want to consider other non-bakery items. Dough Dealer , for example, doesn’t actually do any baking, so it doesn’t sell any baked goods. Instead, it sells kits with baking supplies online, as well as merchandise. You can do the same thing with a print-on-demand company .

6. Customer analysis and segmentation

The customer segmentation section of your bakery business plan should discuss the different groups of shoppers you intend to target with your bakery. Include the following information about each of your segments:

• How old they are
• Where they live
• Where they work and what they do
• Education level
• What technology they use
• Their values, beliefs, and opinions
• Common behavior patterns
• How they shop

Here’s what a customer segmentation section might look like: Levain serves a few distinct geographic markets in Puerto Rico, including San Juan, Aguadilla, Mayagüez, and Rincón. Each of these regions represents a specific customer segment for the bakery, and they may have different shared characteristics. So Levain adjusts its promotional and marketing strategy according to its audience.

7. Marketing plan

Your marketing plan is a high-level overview of how you plan to promote your bakery. The marketing plan should outline which channels you plan to use for marketing and advertising, as well as any budgets you might have. At a minimum, this section of your bakery business plan should define the following:

• Price : How much your products cost and why.
• Product : What you’re selling and how you differentiate it from other goods in the market.
• Promotion : How you’ll get your products in front of your ideal customer.
• Place : Where you’ll sell your products, including online and in-person.

Zero-sugar cookie brand Sundays used email marketing to promote its bakery business and build buzz pre-launch. The brand allowed people to subscribe so they would be alerted when the online store launched. This approach is also an excellent tactic for email list-building .

Here are some more resources to help assemble the marketing section of your bakery business plan:

• How to Build a Marketing Plan That Actually Works
• 7 Inspiring Marketing Plan Examples (and How You Can Implement Them)
• Driving Growth: 12 Best Marketing Strategies Any Small Business Can Execute

8. Logistics and operations plan

Your logistics and operations plan outlines exactly how you’ll create and sell products and fulfill orders. Be sure to address each of the following:

Identify where you’ll purchase the raw ingredients you need to make your baked goods and where they’re produced. Will you purchase anything pre-made from suppliers or make everything from scratch?

Outline whether you’ll make, wholesale, or even dropship your products. Describe how long it takes to receive raw ingredients and how long it takes to produce your baked goods. You’ll also want to think about a contingency plan: How will you handle a busy season or an unexpected spike in demand?

Where will you and any team members work? Do you plan to have a physical retail space as well as the bakery? If yes, where? Will they coexist or exist in different locations?

List which tools and technology you require to get you up and running: think items like ovens, mixers, refrigerators, etc., as well as business tools like a POS system or card reader. You’ll even list items like lightbulbs, counters, and anything else you’ll need to purchase to open your bakery.

Shipping and fulfillment

Will you be handling all the fulfillment tasks in-house or will you use a third-party fulfillment partner? Will you have a space for in-person shopping or pickup?

How much raw ingredients will you keep on hand, and where will they be stored? How much finished product can you keep on hand, and where? How will you ship products to partners if required, and how will you approach inventory management ?

The bakery Wildgrain , for example, operates on a subscription-based business model. The brand outlines how it works on its website, information that would also be suitable for the logistics and operations section of its bakery business plan.

The sourdough bakery Florets offers a subscription plan as well as in-person pickup at its Auckland-based bakery location or at a weekly farmers market.

The Protein Bakery also has a few methods for fulfillment. Customers can visit its New York City–based retail shop or order online, and other businesses can also purchase its products wholesale.

9. Financial plan and projections

The financial plan shows possible funders that you’ve done your math homework and crunched the numbers to figure out how much money you need to launch, how much you need to operate, and whether you can turn a profit.

The financial plan typically includes the following financial statements :

• Income statement
• Balance sheet
• Cash flow statement

Here’s a spreadsheet template that includes everything you’ll need to create the above financial statements, including some sample numbers. Just edit it as needed.

When putting together your financial plan and statements, be realistic and specific. While you want to be optimistic about your projected success, it’s equally important to be pragmatic. Use the information you’ve learned developing other parts of your bakery business plan to calculate accurate, achievable numbers.

Launch your bakery business with Shopify

Starting your new venture with a successful bakery business plan is a surefire way to set yourself up for success from the get-go. Your bakery’s business plan will keep you and your team accountable and aligned with your vision and goals.

When you’re ready to launch, build your website on Shopify. With Shopify, you can seamlessly integrate your retail and ecommerce tech stack to maintain complete control of your growing business.

Bakery business plan FAQ

How do i start my own bakery business plan, how much money can you make owning a bakery, what equipment is needed for a bakery.

• Food processor
• Dough proofer
• Dough sheeter
• Bread slicer
• Refrigerator and/or freezer
• Baker’s rack
• Baking pan and dishes
• Bowls, measuring cups, spoons, spatulas, etc.
• Pastry bags
• Work counters
• Dry storage

Is a bakery business profitable?

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How to Start a Bakery Business in the Philippines 

Disclosure: Small Business Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments’ or businesses’ websites. Please get in touch with us directly for any discrepancies.

Starting a bakery business in the Philippines can be an exciting and rewarding venture. With the right planning, preparation, and execution, you can turn your passion for baking into a profitable enterprise.

In this guide, I will walk you through the essential steps to launch and manage your own bakery business successfully.

Why Start a Bakery Business?

When and where to start, step 1: define your business plan, step 2: register your business, step 3: set up your bakery, step 4: develop your menu, step 5: source ingredients and establish supplier relationships, step 6: recruit and train staff, step 7: implement effective marketing strategies, 1. offer customization options, 2: focus on quality and consistency, 3. prioritize customer service, 4. embrace technology, key takeaways.

Running a bakery business offers numerous benefits. Firstly, it allows you to indulge in your passion for baking while sharing your delicious creations with others. Secondly, the bakery industry in the Philippines is thriving, with a high demand for freshly baked goods. Finally, owning a bakery can provide a stable income and the opportunity for growth and expansion.

Timing is crucial when starting a bakery business. Consider the local market demand, seasonal factors, and competition. As for the location, choose an area with high foot traffic, such as commercial districts or near schools, offices, or residential communities. Ensure that the space is well-equipped with the necessary facilities and meets health and safety regulations.

How to Start a Bakery Business in 7 Steps

Develop a comprehensive business plan that outlines your bakery concept, target market, products, pricing, marketing strategies, and financial projections. A well-structured plan will guide your decision-making process and attract potential investors or lenders.

Visit the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC) to register your business name and secure the necessary permits and licenses. This includes securing a Mayor’s Permit, Barangay Clearance, and Food Handler’s Certificate.

Source high-quality baking equipment, furniture, and supplies. Create an inviting and functional layout for your bakery, including a display area, production space, and storage. Invest in a reliable point-of-sale (POS) system to streamline your sales and inventory management processes.

Craft a diverse menu featuring your specialty baked goods, such as bread, pastries, cakes, cookies, and desserts. Ensure a balance between classic favorites and unique offerings that differentiate your bakery from competitors. Consider catering to specific dietary needs, such as gluten-free or vegan options, to broaden your customer base.

Identify reputable suppliers for high-quality ingredients and establish reliable relationships with them. Opt for local suppliers whenever possible to support the local economy and ensure freshness. Maintain a well-managed inventory to minimize waste and control costs.

Hire skilled and enthusiastic bakers, pastry chefs, and customer service personnel who share your passion for baking and delivering excellent customer experiences. Provide thorough training to ensure consistency in product quality, food handling practices, and customer service.

Develop a strong online presence through a professional website and social media channels. Utilize digital marketing techniques, such as search engine optimization (SEO), email marketing, and social media advertising, to reach and engage your target audience. Build partnerships with local businesses and participate in community events to increase brand visibility.

Examples and Tips for Successful Bakery Business

Allow customers to personalize their orders for special occasions or dietary preferences. Offer custom cakes, pastries with personalized messages, or themed baked goods to cater to different celebrations and create a unique experience.

Ensure that every product leaving your bakery meets high-quality standards. Consistency in taste, texture, and presentation will build customer trust and loyalty.

Train your staff to provide exceptional customer service. Positive and friendly interactions with customers can leave a lasting impression and drive repeat business.

Explore online ordering systems, delivery apps, and loyalty programs to enhance customer convenience and retention. Embracing technology can streamline operations and expand your reach.

• Starting a bakery business in the Philippines offers a rewarding opportunity to turn your passion for baking into a profitable venture.
• Consider market demand, location, and timing when planning to start your bakery.
• Follow a step-by-step guide to set up your business, including registration, acquiring permits, sourcing equipment and ingredients, developing a menu, and hiring staff.
• Implement effective marketing strategies and prioritize customer service to attract and retain customers.
• Embrace customization options, focus on quality, and utilize technology for success in the bakery industry.

Now that you have a comprehensive understanding of how to start a bakery business in the Philippines , it’s time to take action. Embrace your passion, follow the steps outlined in this guide, and create a successful bakery that brings joy to your customers and prosperity to your entrepreneurial journey.

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How to Start a Bakery Business in the Philippines

Last Updated: April 5, 2022 Approved

wikiHow is a “wiki,” similar to Wikipedia, which means that many of our articles are co-written by multiple authors. To create this article, 13 people, some anonymous, worked to edit and improve it over time. There are 7 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. In this case, 90% of readers who voted found the article helpful, earning it our reader-approved status. This article has been viewed 122,406 times.

Are you planning to put up a business? Why not try a bakery? It is profitable, can be started at home and allows the owner to grow the business gradually as his capital, interest and knowledge of the business increases. With bread being the country’s second staple after rice, the bakery business is one of those ventures that is sure to bring multiple returns with just a minimal investment. By taking the time to learn the craft, you too can start your own bakery business and potentially make good money out of it. Filipinos love to eat bread and the business minded should keep this in mind. Pandesal is the usual breakfast fare most Pinoys can’t do without before starting their days. Snacks are usually a few slices of bread taken with coffee, soft drinks or fruit juice. An aspiring bakery businessman should therefore have these two products in his list and expand from there. In fact, any true-blue Pinoy should be able to recall a morning of eating hot pandesal with his or her family, an afternoon of eating siopao with friends, or the surprise of opening his or her lunch box at school and seeing a large, puffy, creamy ensaymada. In the Philippines, breads are not just for eating. They are a tradition.

Expert Q&A

• You don't need Millions of Pesos to start a bakery business. Start small, there are many bakery business opportunities who are enabling Franchise or even Partnerships for example Kambal Pandesal of San Miguel Mills. They offer low-cost bakery business which is affordable to all Filipinos, and take note they also have equipments in their Package, Free- Site Assistance and Monitoring to their Business Partners which will make it easier for the owners to handle their business easily because of the ready-made system. Call 0916-131-4764/0999-998-1553 and Start your Own Kambal Pandesal Bakery Business Thanks Helpful 64 Not Helpful 12
• To know how will you serve the people in your business, simply imagine yourself as a customer, How do you want to be treated? What are the breads that you'll buy? How will they be served? What are the gazes and treatment of the employees? Thanks Helpful 60 Not Helpful 11
• Do the Survey. Ask people what are the top 10 breads they'll pick whenever they'll buy in a bakery, In this way you are minimizing the costs as well as satisfying the tastebuds of your customers Thanks Helpful 51 Not Helpful 12
• Don't focus on the present. Remember if your business is not doing good at the present moment. It's okay, we've been there, as long as you see the Vision, just continue. Take a look at your business, what are the things you need to change, how can you improve your Sales, yourself. The Secret to Success according to Charles Haanel is Service. Be Patient. Thanks Helpful 53 Not Helpful 8

Things You'll Need

• Pen, Paper, A little imagination, company for partnerships, money, Internet Connection, patience, focus, consistency and love

You Might Also Like

• ↑ https://www.bbc.co.uk/bitesize/guides/z84kq6f/revision/1
• ↑ https://www.anz.com.au/business/start-run-grow-business/start/the-importance-of-location-in-business/
• ↑ https://www.inc.com/jeff-haden/15-reasons-you-shoiuld-start-your-own-small-business-today.html
• ↑ https://www.business2community.com/customer-experience/12-ways-learn-customers-01990097
• ↑ https://www.entrepreneur.com/article/272808
• ↑ https://www.entrepreneur.com/article/284799
• http://discarte101.wix.com/kambalpandesal#!blog/c7pa

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How to Start a Baking Supply Business Philippines

Have you ever thought about starting your own bakery supply business in the Philippines? If so, then today’s handy guide on how to start a baking business will guide you in the right direction to accomplish your business goal.

We will cover some important areas to start a baking supply business in the Philippines, including the market and the finances, but for those interested in a business plan, head over our free business plan PDF template, which can be downloaded a the top of this page.

Table of Contents

Steps On Starting A Baking Supply Business Philippines

1. analyze the baking market.

Before starting any business, surveying the market is important. It can help you determine the challenges in your target market. The same goes on ways on how to sell baking supplies online. To start, future baking supply business owners need to talk to the bakeries located in their target location. 

A baking supply business can be profitable if the business satisfies the clients’ needs and diligently serves them. Performing a market survey can help you figure out how to help these bakeries do their jobs more easily.

2. Create A Baking Supply Business Plan

It does not matter if you plan to be an online home-based baking business owner or have a store when making a bakery business plan. Future business owners can think of this as their map. Therefore, a bakery business plan should be meticulously made by placing all the details in various categories. 

Here are some of the elements you can include in your business plan .

3. Registration Of A Baking Supply Business In The Philippines

One of the crucial steps in the process of how to start a baking supply business Philippines is obtaining the needed documents to operate legally. Owning a bakery supply store or being a baking supply distributor in the Philippines requires the same legal requirements. If you are not a Filipino passport holder, find out more about registering a business in the Philippines here.

Since bakery supply business owners will store edible ingredients such as chocolate compounds, cake mixes, essence, and chocolate compounds, among many others, baking supply business owners have to be registered. 

Please note that depending on the city where you will operate your business, there can be more or different requirements.

4. Pick Your Location For Your New Baking Business

Suppose you are opening a home-based baking business in the Philippines. In that case, you may wish to investigate the delivery part of the business and see how it will affect your business location.

5. Order Baking Supplies In Bulk

A great way to order from baking wholesale suppliers in the Philippines is to list the primary baking supply categories, such as the ingredients and equipment. Then, you can choose the products you want to stock on for every category.

Another helpful tip at this stage when looking at how to start a baking supply business in the Philippines is to determine how you want to start….

6. Build Your New Baking Business Team

It is best to get employees who offer great customer service and have knowledge about baking supplies and tools. You can also ask for help if you know someone who has a home-based baking business in the Philippines, as they will likely know culinary school students or people who have worked in kitchens. 

If possible, baking supply business owners can provide matching uniforms for all the employees as the business grows.

7. Market Your New Business

How to sell baking supplies online philippines, 1. purchasing ingredients, equipment, and supplies.

When baking supply business owners purchase products and equipment in big quantities, they can get a better deal from baking suppliers – wholesale suppliers in the Philippines. 

Some baking ingredients need to be refrigerated. Therefore, one way on how to sell baking supplies online is to consider temperature and delivery when deciding on what baking products to get. 

2. Aim To Make Your Online Products Too Good To Refuse

After understanding what your products can offer, you can use the information to create engaging product captions. Quality descriptions are important in the ways on how to sell baking supplies online in the Philippines.

The ideal product description highlights the benefit of the products and their features. Moreover, addressing the needs and concerns of your target audience can help, such as trying to determine how your product can make their lives easier or better.

Product descriptions with good conversion have a CTA or call-to-action. You can use CTAs such as “On sale for a limited time only, Purchase today!” ….  it’s essential to carry out keyword research to have improved rankings on search engines and selling sites such as Shopee and Lazada .

3.  Using Stories And Recipes

To perform marketing using storytelling, you could create a narrative to tell your message. Your aim is to make potential customers reading your story feel inspired to purchase your product. This will also help them better understand your baking supply products and create trust with your business. 

When planning your baking supply business, you might have thought about how your ingredients can make customers bake something wonderful in the comfort of their own homes?…  You could include something special and extra to improve your stories, such as recipes and baking tips.

Baking Supplies Wholesale Suppliers Philippines

How much does a bakery supply business cost in the philippines.

The total amount you need to start a bakery supply business in the Philippines will depend on the scale of your business and how aggressively you wish to grow in the upcoming years.

Nonetheless, to start a small bakery supply business in the Philippines at home, you need to have at least 50,000 Pesos. On the other hand, if you are looking to start a small bakery business in a warehouse or storefront, then the scale of the business will be much larger, and as a result, 200,000 Pesos or more will be needed.

Please note that the above estimates are valuations when calculating how much it cost to start a bakery supply business in the Philippines, which means that the prices can be higher or lower depending on your location and scale of business. For example, if you are an entrepreneur starting this business at home, the cost will be much lower compared to a new corporation with a team of 25.

• Sample Business Plans
• Food, Beverage & Restaurant

Bakery Business Plan

Ready to turn your love for baking baked goods into a successful business?

To ensure that your business endeavor happens to be a flourishing one, write a business plan specifically crafted for your unique bakery business.

From helping you finalize the bakery location to evaluating the financial position of your business- a detailed plan uncovers every detail essential to kickstart a successful bakery business.

Writing a business plan can get complicated. With this step-by-step guide, you will have all the information essential to write a bakery business plan . Also, download our free bakery business plan template and modify it to fit your needs.

Ready to dive in? Let’s get started.

Key Takeaways

• Conduct a detailed industry analysis of the bakery market to understand market trends, target market, and the growth scope of your business.
• Outline the business goals and devise a business strategy that is in line with your bakery’s branding image.
• Analyze the competitive landscape of your business and identify local businesses that will offer direct and indirect competition to your business.
• Make calculations, assumptions, and projections to form key reports such as income statement, balance sheet, Cash Flow statement, and Break-even analysis.
• Determine the operations of your bakery business by outlining the procedures, processes, and equipment required to kickstart the business.
• Determine the baked goods and services you will sell through your bakery business.

Why is a bakery business plan important?

A business plan helps achieve your business objectives by creating a roadmap that will guide your bakery business in a strategic direction. An actionable well-drafted plan offers an in-depth view of your business idea and are a few benefits you must know:

• A business plan instills clarity in your business idea. All the ideas that were messed up in your mind start getting a clear point of view once you start writing a plan.
• A business plan is your checklist to understand what different aspects of the business need- the resources, equipment, manpower, licenses, etc.
• It helps crystallize your business vision and what it aims to achieve in the bakery market.
• A business plan optimizes the bakery operations and brings down the operating expenses by ensuring the resourceful allocation of bakery resources.
• A plan evaluates the financial aspects and viability of your bakery idea before you actually invest money in the business.

And, of course, a well-crafted plan will get you essential funds to get started in the bakery market. Moving forward, let’s craft a spectacular plan for your bakery business.

How to Write a Bakery Business Plan: A Complete Guide

From writing an executive summary to creating your financial plan- let’s decode the key elements of writing a business plan.

1. Get a business plan template

Before you start writing a business plan, consider getting a sample template to simplify the entire plan writing process.

A lot of information goes into writing a comprehensive business plan. Addressing all the key components in brief details is a challenging task.

However, by using a template, you can add structure to your plan. Not only that, it will help you organize the information clearly in a cohesive manner. With appropriate prompts, you will know exactly what to write in each section.

We know you would start searching for a template. Well, the Upmetrics business planning template is perfectly relevant and suited for your bakery business. It’s intuitive, modern, and available for free download.

Need Assistance Writing a Bakery Business Plan?

Get Upmetrics’ business plan template, import data directly into the editor, and start editing using Upmetrics AI Assistant.

Start Planning Now

2. Write an executive summary

The executive summary is a concise description of your entire bakery business plan. It highlights the key findings and entices the reader to delve further into your business plan. So make sure to keep it interesting.

A well-drafted executive summary includes an answer to every question, a potential investor might have.

For instance,

• What is the core objective of your bakery business?
• What are the pain points of your target customers and what solutions can you offer?
• What type of baked goods will you offer?
• What is your target market?
• What is your marketing strategy?
• What are the financial highlights of your bakery business?

As you start writing, remember that the executive summary should summarize the plan and not your business idea.

Lastly, fit your compelling summary description in 1-2 pages.

3. Conduct a competitive and market analysis

The market analysis section paints a clear picture of your ideal target market, bakery industry trends, and your competitors in the market. In a way, this section is your chance to validate the potential success of your bakery shop.

The market analysis section of your bakery plan must include:

Market share, growth potential, and industry trends

Identify your targeted available market (TAM) through thorough market research and determine your share in the bakery market. Analyze the emerging trends in the bakery market and assess your growth potential as a retail bakery.

Understanding of the target market 

Who will be your potential customer at a bakery shop?

It gets much easier to succeed in the market when you have a clear understanding of who your target customers are.

In this section of customer analysis, you will create a buyer’s persona of your ideal customer by understanding their psychographic and demographic details.

Competitor analysis

This is an equally important part of the market study, where you evaluate the position and competitive landscape of your bakery shop.

Begin by identifying your top competitors and evaluate your strengths, weaknesses, opportunities, and threats against other bakeries. Establish your competitive edge and show the potential investors that your business stands a promising opportunity in the competitive market.

Want to Perform Competitive Analysis for your Business?

Discover your competition’s secrets effortlessly with our user-friendly and Free Competitor Analysis Generator!

4. Prepare a company overview

The company overview section of a bakery’s business plan is a brief description of your bakery business concept, its legal structure, location, and value proposition.

Be creative and write a compelling section that can propel the readers’ interest in your business idea.

Wondering what to include in your bakery’s company overview section? Let’s check:

• Type of bakery business: retail bakery, specialty bakery, cloud bakery, mobile bakery, etc.
• Business structure: Sole proprietorship, LLC, partnership LLC, corporation, etc.
• Mission statement
• Value proposition
• Quantifiable business goals and milestones
• History and background of the bakery, if applicable
• Partnership and ownership structure
• Name of owners/ partners
• Operating hours
• Service style

Drill down to details and make this section an engaging read.

5. Describe your products and services

After describing your bakery structure and mission statement in the previous section, you will now outline the product and service offerings of your bakery shop.

As a bakery business, you may sell a variety of delicious baked goods such as pastries, cakes, fresh bread, cookies, tarts, pies, donuts, sweet buns, etc. Add this to your product section and also non-baked goods such as savory snacks, coffee, etc, if it’s on your menu offering.

Specifically mention, if you will have products for special diets, i.e. gluten-free, keto-friendly, sugar-free, vegan baked goods, etc.

6. Bakery store design and layout

An effective bakery business plan must include a blueprint of your bakery shop’s layout and design to demonstrate the bakery’s concept practically to the readers.

Mention your bakery size and the space allocated for the back of the house and front of the house operations. Also, explain how the proposed layout will increase the efficiency of your business operations in great detail.

In this section, you will also talk about the decor and theme that will create a warm ambiance for your target audience. Keep in mind that the decor should reflect the branding image you want to create in your target market.

Offer an immersive experience to the readers while explaining this section.

7. Prepare a bakery marketing plan

The marketing plan offers a detailed outlook of marketing strategies you will use to market and promote your bakery shop. Consider it as a roadmap that will guide you in building a brand of sustainable value in the market.

So how do you build a perfect marketing plan?

Begin by identifying the marketing channels and different types of digital marketing campaigns that will work best for your potential customers. Now, allocate the monthly budget to different marketing activities. Lastly, devise a marketing strategy for each channel with a clear plan of action.

Here are a few marketing strategies that are popularly used by successful bakery businesses:

• Social media platforms for brand development
• Email marketing for promotional offers
• Video content such as easy baking recipes, tips, tricks, etc
• Online workshops and live sessions
• Influencer marketing
• Tasting events and sampling
• Customer testimonials

Now detail all your plans in this section and show your investors that you have a solid way to establish your business’s popularity in its target market.

8. Outline your organizational structure

In this section of your bakery business plan, you introduce the management team and employees at your shop. Also, highlight the organizational structure and hierarchy of employees in the organization.

Begin by introducing the owners and their role in your organization. Highlight their experience in the bakery industry and the key skills that can benefit the business.

Introduce your talented baker and their role in recipe development and standardization. Show their experience in the baking field and prove their asset worthiness.

Draw a clear flowchart depicting the flow of authority and responsibility in your bakery business. It is your chance to show the investors that you have a team and knack to take this business on a successful path.

9. Create a logistics and operational plan

The operations plan of your bakery business plan is a strategic document highlighting the processes, procedures, and resources needed to efficiently run your bakery shop.

A well-planned operations plan is like a business manual that has answers to all the questions one might have while running a bakery shop.

Wondering what to add to your operations plan? Well try to include answers to the following questions to make it detailed and comprehensive:

• Physical facilities: What will be your bakery location to produce bakery goods? Will you serve customers from that location or a different shop? Are you planning to sell the bakery goods online?
• Suppliers: Where will you get the raw materials and supplies for producing bakery goods? Who will supply non-bakery items like scones, sandwiches, and savory snacks?
• Inventory: Where will you store the raw material and ingredients? What will be the shelf life of these ingredients? How will you manage the stock levels? What are the minimum thresholds for different items and how long it takes to stock them?
• Production: Who will bake the goods? How long is the process? Will everything be made fresh or in batches to be stored for a few days? Will there be recipe cost cards for each menu item? How will you meet an unexpected spike in demand?
• Bakery Equipment: What type of bakery equipment will you require? Will there be a POS system at your store? What other technologies will you use? How will you take online orders?

The amount of precision here will help you regulate your operating expenses once the bakery starts serving the customers. Proper planning is advisable at this stage.

10. Create a Financial Plan

And now comes the most exciting part for investors- a financial plan. The figures in financial statements are helpful in determining the viability of your business idea. So this section holds a considerable weightage in terms of whether you will get funding or not.

To ensure you create a comprehensive financial plan, including financial projections for these key components:

• Cost of starting a bakery shop
• Sales forecast
• Revenue projection
• Operating expenses
• Pricing strategy
• Income statement/ Profit & Loss statement
• Break-even analysis
• Cash flow statement
• Balance sheet
• Business ratios

In this section, you will also evaluate your funding requirements and identify the funding sources for your business. i.e. bank loans, SBA-guaranteed loans, angel investors, and personal savings.

Having realistic financial projections at hand will help you realize your financial goals while evaluating the sustainability of your bakery business.

However, creating the projections for all these elements from scratch can get overwhelming. Additionally,  you also need to work on visuals and graphs to add impact and clarity to your plan.

Well, there is an easy way. Create your plan with the Upmetrics Financial forecasting tool . This tool will generate key reports and visuals that can be easily downloaded and added to your plan.

We hope this sample plan will guide you in writing a perfect business plan. Now, let’s move forward and check the industry trends ruling the bakery world.

Bakery Industry Highlights 2023

Before you open a bakery, here are some latest highlights from the bakery industry, you may find helpful:

• Bakery market size: The US bakery market size was valued at $99.47 billion dollars in 2023. It is projected to grow at a CAGR of 2.08% between 2023-2028.
• Retail Bakeries: According to IBIS World , there are 8,780 independent retail bakery shops in the US.
• Bakery consumption: In 2022, Americans consumed 8.6 billion kilograms of cake and pastry goods, a sizable amount compared to other countries.
• Bakery trends: There is a growing trend of providing healthier alternatives, i.e. gluten-free baked goods in the bakery market. The organic and gluten-free baked goods market grew by 2.45% in 2022.
• Market Saturation: 55% of commercial bakery revenue in the US is generated by 3 major players- Grupo Bimbo, Flower Foods, and Campbell Soup.
• Specialty bakery market: The US Specialty bakery market share is expected to grow by 10.54 billion US dollars by 2026.

Download a sample Bakery business plan

Need help writing your own bakery business plan? Well, download our bakery business plan pdf and write your plan section-by-section with utmost precision.

Upmetrics templates are perfectly suited for entrepreneurs who need a little help to kickstart their business planning. Import the data into the editor and start planning.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Write your business plan with Upmetrics

Optimize your business planning with Upmetrics .

With more than 400+ business plan examples , we offer invaluable guidance to help you write a cohesive business plan.

Whether you are writing a business plan to strategically grow your business or attract investors, Upmetrics’ invaluable resources like AI assistance, forecasting tools, and step-by-step guides will serve you perfectly.

Let’s bake a recipe for success together.

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Frequently asked questions, what should be included in a bakery business plan.

An effective bakery business plan must include:

• Executive summary
• Business overview
• Industry and competitors analysis
• Bakery goods and services
• Bakery design and layout
• Operations plan
• Key management team
• Financial bakery plan

How long should my bakery business plan be?

A bakery business plan should be not more than 15-20 pages including graphs, visuals, and charts. You are likely to lose the interest of investors with a lengthy plan. However, keeping it extremely short is also not favorable, as it would not cover important details. So try using crisp content for your business plan.

Can a bakery business plan template help in setting clear business objectives and goals?

Absolutely yes. A template offers a variety of prompts that will help you to write each section clearly and cohesively. Moreover, you will get a variety of bakery-specific examples that shall help in clearly determining your goals and objectives.

Do I need to have financial projections in my bakery business plan?

Yes, financial projections are important to assess the viability and profitability of your business idea. If you are planning to seek investor funds, this section is of crucial importance. Investors will evaluate the financial section and determine whether to invest or not.

Can I use the same bakery business plan template for different locations?

Yes, you can. However, you need to alter the content of your business plan for different locations and target markets by making specific modifications.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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• How to Start a Home Baking Business in the Philippines: A Step-by-Step Guide
• Post author: Mervin Manalo
• Reading time: 40 mins read

So you’ve finally decided to act on those compliments and advice from your friends and family to take your baking hobby to a professional level? That’s great! Spoiler alert: we’ll teach you how to start a home baking business in the Philippines in this post. We’ll also include tips on how to start a bakery from home, including how to start an online bakery from home and how to make a home baking business plan.

Do you think most baking pros are prevented from turning their passion into a business because of the staggering running costs of a store? If you find yourself in a similar situation, you should consider opening a bakery business at home!

Once you catch the baking bug, it isn’t easy to stop. So, why not start your little bakery or baking business from home? The best part? The running costs are relatively low, and the process is much easier!

Let’s learn what it takes to start an online bakery from home so that you can deliver those scrumptious gooey cookies to hungry bellies!

Why Start a Home Baking Business in the Philippines

If you love baking and have the means to start a business, you already have great reasons to open a home baking business.

While those two are just icing on the cake, time has proven that baked goods are a hit in the country. In fact, baked goods sold in the Philippines amount to a whopping $2 billion (112,369,000,000 PHP) each year.

Additionally, Forbes projects that the global bakery products market will grow from $416.36 billion (23,389,023,000,000 PHP) in 2021 to $590.54 billion (33,173,584,500,000 PHP) by 2028.

This increased demand for baked goods comes from people’s preference for convenience and affordable prices. Because of urbanization, many people have hectic lives that leave them little to no time to make their own meals. As a result, they opt for ready-to-eat food like bread and other pastries.

As long as baked goods remain a huge part of the Filipino diet, starting a home baking business will always be a great idea.

Pros of Starting a Home Bakery Business

Before we jump to the hows and whats, let’s help you understand the perks of opening a home bakery business. Here’s why an online bakery from home is a profitable venture:

Filipinos’ Love for Baked Goods

Our love for bread is embedded in our culture, making a home baking business a great idea. Traditional Filipino bread and sweets, like the soft and fluffy ube cheese pandesal or the sweet and buttery ensaymada , are things most Filipinos can’t live without.

By selling these familiar favorites, you get to tap into a steady demand.

Demand for Unique, Homemade Treats

People are becoming more mindful of their health, which led many to choose homemade, healthy, or artisanal treats over their supermarket counterparts.

Social media platforms played a huge role in this through eye-catching, Instagrammable baked goods. By starting your baking business at home,  you can easily experiment with different recipes and presentation styles that cater to this demand. Doing this also sets your products apart from those sold in supermarkets and bakery chains.

Lower Startup and Operational Costs

Unlike opening a physical bakery, starting a home baking business requires lower capital and ongoing costs. For one, you don’t have to rent a commercial space or industrial baking tools and equipment . You can also focus your capital more on high-quality ingredients and effective marketing strategies.

Flexibility and Scalability

Running a baking business from home allows you to be your own boss. You can set your own schedule, work at your own pace, and call the important shots.

This setup also works well if you want to start small. You can first focus on a niche product or market and scale based on your customers’ demand and feedback. This lets you grow your business while reducing risks and costs.

Easier Marketing Through Digital Channels

The Philippines is the social media capital of the world and you can use this to your advantage. Digital marketing tools let you market your products without having to put up billboards or TV ads. Additionally, the ad targeting on social media platforms like Facebook and Instagram is so great you can quickly get eyeballs there. They’re also more cost-effective compared to traditional ads like print and TV.

A Supportive Community of Home Bakers

The community of home bakers is thriving in the Philippines, thanks to the brave souls who pursued their passion for baking. If you start a home baking business, you can easily find a supportive network of small business owners.

Joining these communities can give you valuable business insights, mentorship, and opportunities for collaboration. Whether it’s through social media groups, local business associations, or informal networks, you can easily connect with other entrepreneurs who can offer support and inspire you in the Philippines.

How to Start an Online Bakery From Home

Since you want to start an online bakery from home, we’re assuming that your love baking and do it well. If people often ask you to bring a dessert to dinner or supply desserts for an event, your baked treats are likely delicious, if not irresistible.

While baking skills matter, there’s so much more than goes into starting an online bakery from home. It calls for research, planning, marketing, and more. Here ar the steps in starting an online bakery from home:

1. Create a Home Baking Business Plan

Whether your home bakery business aims to fuel your passion or supplement your monthly income, it is always wise to develop a business plan. A proper home baking business plan can be a guidebook to steer your home bakery toward success. And don’t forget, it should be pandemic-proof.

A home baking business plan should contain the following elements:

Company Description, Logo, & Mission

You need to finalize and plan a piece of detailed information about your online bakery from home. Once your business starts operating, you’ll need to mention the types of bakery products under your roof and a mission statement.

Will your home bakery business deal with fresh bakery products such as cakes and cupcakes, or only cookies, muffins, and other extended shelf-life products?

Before you start your operations, you should specify the scope of your online bakery from home to keep things simple and manageable. Additionally, designing your bakery logo is also a part of the process.

Business Name

The next critical thing is coming up with a business name. Choose a lively business name that reflects your mission and values. Moreover, the business name you choose should have a scope for expansion. We also suggest you start with a quirky and unique name if you need to trademark it in the future.

Regardless of whichever name you choose for your business, it should be clear that you deal with baked products. Lastly, the brand name should be short & sweet and easy to remember.

You can use several online brand name-generating tools to get excellent inspiration for your home bakery. Once you finalize the name, you’ll have to use it while registering your online bakery from home.

2. Set Up the Space

To get your home bakery business up and running, you’ll need the necessary baking equipment. It would help if you considered equipping your kitchen with a blast freezer, stand mixers, heavy-duty oven, and other professional-level baking tools based on your menu items.

Moreover, there are also small kitchen items that are mandatory for baking. For instance, you might need new cookie cutters, cake stands, and cake levelers. You might also have to invest in modifying and outfitting your kitchen. The existing kitchen might not have enough countertop space for prepping.

3. Do Market Research

Another essential aspect of your bakery business plan is your target market and population. You have to identify your niche and target customers with the best products! How will your home bakery better cater to customers compared to your rivals? What needs or wants are your bakery products fulfilling for your customers?

The location of your home bakery also affects your bakery sales. You should also monitor current trends in the world of baking. For example, people are currently obsessed with miniature cupcakes on social media.

Based on your market research, you might want to limit the products of your bakery or baking business at home to dream cakes , fancy birthday cakes, or celebration cakes.

4. Obtain Permits and Food Licenses

Depending on your geographic location, the permits and licenses will significantly vary. It would help if you relied on your local state laws to determine the food licensing and permit process. Many states make it mandatory for businesses of all sizes to comply with local health codes since it involves consumables.

If you are planning to open a home bakery business in the Philippines, these are the permits you might require:

• You’ll need to procure a Tax Identification Number (TIN) from the Bureau of Internal Revenue.
• Secure a Residence Certificate & Sanitary Permit or Mayor’s Permit from the local municipality of home bakery business address.
• BFAD Certificate from the Bureau of Food and Drugs (BFAD) or License to Operate (LTO) as a “food manufacturer.”
• You’ll also require business name registration in the Department of Trade and Industry (DTI) as you’ll be running the home bakery business on your own.

5. Define a Clear Business Structure

Most new home bakery business owners mistake not establishing a clear business structure. It is essential to finalize the type of business structure you require. The business structure will also determine how you pay your taxes.

Typically, most home bakers want to start as sole proprietors. A sole proprietorship is one of the typical business structures. But remember that if your home bakery business absorbs employees or new business partners, you’ll have to alter the business structure.

If you expand your home bakery business in the future, you also might need to move out and require a physical outlet for your bakery business.

6. Create Sales and Marketing Plans

Sales and marketing are two essential aspects of any business. You need to figure out ways to attract and retain your consumers. Do you plan to rely on referrals to get your home bakery business going? Also, do you know any local eateries that want to host your products?

One of the first aspects of your marketing plan should be to have a user-friendly website or point of communication. It is best to have a web designer look into the website development process. You’ll also require marketing materials such as business cards and engaging content to keep the customer flowing!

Here are some marketing routes for an online bakery from home:

• Social media and online marketing
• Word of mouth
• Bake sale day at local venues and events

7. Strategize and Finalize the Prices

You should think about the pricing of your menu items thoroughly. The rates you set at the beginning of your business will determine the first impression of your consumer. You don’t want to charge too high as it can deter many customers from picking your online bakery products. On the other hand, you don’t want to underprice and reduce your profit margin significantly.

Home bakers should also consider their efforts, time, and other resources to set up a home bakery. You can extend the benefits of reduced overhead costs to your customers. Remember, you can create your bakery’s USP in taste and variety instead of pricing.

You can consider the following figures while deciding the price of baked goods for your home bakery:

The yield of your recipes: How many cupcakes or cookies can one typically produce?

• Cost of ingredients: How much do you spend buying flour, eggs, cocoa, sugar, and others?
• Cooking time and expertise level: You should not waste your pro-like baking skills for minimal costs! Make sure to consider your baking expertise and dedicated cooking time and divide it with the recipe yield to find the labor cost per piece.
• Cost per serving: You can find the cost per serving by dividing the price of ingredients by the yield per recipe.

8. Promote Your Home Baking Business

Having products to sell is a great start. But with some marketing, you can get more people excited about your products.

For one, you can sell on Instagram. Instagram is a visual social media platform where you can easily post and share pictures of your beautiful cupcake designs , minimalist cakes , and more.

You can also do special promos to encourage people to share your images and videos. You can also incentivize people to engage with your brand through a special giveaway. TikTok is another platform where you can share your behind-the-scenes process.

You can also go old-school and hand out brochures to people. Then, you can give a loyalty card to people who already bought from you to encourage them to buy again. For example, you can use a “buy one get one free” offer. Plus, some free samples never hurt. Just think about it, when people taste how incredible your baked treats are, they’ll likely buy more.

To get your online bakery from home off the ground, your target market has to know that it’s open. Here are some ways to market your online home baking business.

Word of Mouth

Being active in your community doesn’t just let you market your products. It lets you build relationships with potential customers as well. If these people buy your products and love them, they’ll return for sure. They’ll even be your marketing soldiers and spread the word about your amazing products.

Social Media

Thanks to the digital era we live in, you can easily create a Facebook, Instagram, and TikTok page for your home baking business. You can post about upcoming products and other promos to encourage people to follow you. Once you gain followers, make sure to post consistently so people don’t forget about you.

Local Markets

Seasonal local markets are a hotspot for home baking business owners. For a few days, you can sell at local markets to encourage more people to try your products. You can even give free samples to entice people to visit your stall. And don’t forget to display your page handles and contact information so people can contact you once the fair’s over.

Recipes For Baked Goods You Can Sell From Home

Want some easy-to-follow recipes for products that sell easily? Check out the recipes we made for you below:

Imagine a soft, fluffy bread topped with butter, sugar, and grated cheese. Looks so delicious, right? Now open your eyes and let us tell you more about this treat.

Ensaymada is a perfect blend of sweet and savory. It’s an easy sell because it offers people a nice texture and amazing taste. Ensaymadas also appeal to those who want a taste of Filipino tradition.

Check out our ensaymada recipe here

Chocolate Chip Cookies

These classic, gooey cookies studded with melt-in-your-mouth chocolate chips are another hit in the Philippines. After all, who doesn’t love a good old chocolate chip cookie?

Plus, they appeal to all ages, which increases your chance of selling more. Their popularity and the nostalgia they bring make them a surefire hit in home bakeries.

Check out our chocolate chip cookie recipe here.

Bavarian Donut

Do you want a fluffy donut filled with a smooth, creamy custard and dusted with powdered sugar? Chances are, your customers do, too.

Bavarian donuts are an easy sell because they’re a luxurious treat that offers a satisfying texture and rich flavor. Despite this, they’re affordable, making them perfect for those who want to indulge in something special without breaking the bank.

Check out our Bavarian donut recipe here.

Ube Cheese Pandesal

A modern twist on the traditional Filipino pandesal, this baked good is filled with vibrant purple yam (ube) and creamy cheese. Ube cheese pandesal works well for an online bakery from home because of its unique flavor and eye-catching color. They also appeal to fun eaters and fans of Filipino cuisine.

Check out our ube cheese pandesal recipe here.

Filipinos love anything smooth and creamy. Enter the leche flan. This smooth, silky, creamy dessert will wow any dessert lover. In addition, leche flan is a dessert staple in the Philippines known for its nice texture and sweet, caramelized topping, making it an incredible crowd-pleaser.

Check out our leche flan recipe here.

We’re not done with the custard-based desserts yet. The egg pire is a classic Filipino dessert with a smooth, custard filling on a buttery, flaky crust. It’s a great option for a home baking business because of its comforting, homemade appeal. People also love this nostalgic treat because it reminds them of nice moments during childhood.

Check out our egg pie recipe here.

Puto With Cheese

Steamed rice cakes that are light, fluffy, and topped with a slice of salty cheese, puto is another item worth adding to your home bakery lineup. People love puto with cheese because it gives them a unique taste experience, blending sweet, savory, and cheesy flavors. Puto also appeals to those who want a gluten-free, traditional Filipino snack.

Check out our puto with cheese recipe here.

Red Velvet Cupcakes  

As its name suggests, red velvet cupcakes are red, velvety cupcakes with a slight cocoa flavor, topped with luscious cream cheese frosting. People love them for their nice appearance and luxurious taste. They’re also perfect for special occasions or as treats to brighten anyone’s day.

Check out our red velvet cupcake recipe here.

Cassava Cake

You may be fooled by the name, but this one isn’t chiffon-based. It’s just as delicious though.

Cassava cake is a hearty and moist cake made from grated cassava (yucca root), coconut milk, and sugar. Cooks often top it with a custardy layer. It’s another great sell because of its soft, sticky texture and sweet, creamy taste.

Check out our cassava cake recipe here.

Japanese Cheesecake

Known for its light, fluffy texture that melts in your mouth, the Japanese cheesecake is another easy sell for home bakers. People love this subtly sweet and incredibly soft cheesecake, thanks to its airy texture and refined flavor profile. Those who love lighter, less dense dessert options also love this treat.

Check out our Japanese cheesecake recipe here.

Investments for Starting a Home Bakery

It is a wide belief that you can start a home bakery with minimal investments, such as buying an oven and ingredients, but there’s more to it. Even with a home bakery, there are several costs involved in starting a bakery or baking business at home. Here’s a breakdown of home bakery business investments:

• Space: If you are 100% sure that your kitchen can handle the heat of your online bakery from home, you’re good to go. Apart from the kitchen, you also require space for arranging and storing your raw materials and baked items. So, if you need additional space for storage, stocking, or preparation, you’ll have to account for those costs as well.
• Licenses: The licensing part depends on your local government rules and regulation. The Philippines requires many documents and permits, which we have already discussed above.
• Equipment: Based on your daily sales expectations, you’ll need to determine the size of ovens, refrigerators, and equipment such as mixing bowls, spatulas, baking tins. Once again, the tools will depend on your menu items. You’ll have to consider the variety of baking products and accordingly purchase baking equipment.
• Ingredients: You’ll need to make a monthly shopping list for ingredients depending on your menu items. Some baking ingredients are cheap and readily available. However, it might be costly and challenging to source unique baking ingredients.
• Marketing: You need logo designs, business cards, letterheads, and more such marketing materials. Though most of these are highly affordable, the marketing costs will grow as the business expands.
• Packaging: Food packaging is one of the most significant parts of the bakery business. Whether you are delivering doorstep or takeaways, the packaging should be impressive. Packaging involves paper carry bags, cake boxes, liners, muffin boxes. For starters, you might need to invest money to maintain a stock of at least 100 pieces of each packaging material.
• Miscellaneous Costs: Various costs such as transportation are tricky to factor in as they depend from individual to individual. The miscellaneous costs also account for varying prices of monthly materials.

Unlike a home bakery business, starting up a small-sized bakery can require extensive investment. There is no hard and fast rule for the investment amount for opening a small bakery. The cost of opening a small bakery largely depends on multiple factors such as the size of the store, location, equipment costs.

One of the best parts of being a home baker is that you have very little investment and a whopping revenue. Considering that your home bakery business is at its peak, you can earn anywhere between $3500 to $5,300 in a month. The average recorded monthly income for bakers is around $5,389. However, note that the monthly payouts of a home bakery depend on several factors such as sales and menu pricing.

One of the critical aspects that determine the success of every home bakery or baking business at home is the menu pricing. Incorrect pricing can jeopardize your business and leave the customers with a negative impression. It would be best to consider the overhead costs while pricing your baked goods. After you’ve summed up the amount for each baked item, make sure to add some extra amount to make sure you earn profits. All in all, fix the pricing at something that is a win-win for your business and its customers! To check your pricing, you can use of recipe cost calculator .

Read More Interesting Articles from HICAPS

• 12 Small Business Ideas Philippines
• 5 Most Common Mistakes New Entrepreneurs Make
• Why Filipino Entrepreneurs are Important for the Economy
• 5 Ways to Add Value to Product For A Successful Bakery Business
• Dream Cake Recipe
• The Ultimate Guide: Types of Coffee Beans to Brews
• mL to Grams Conversion Chart in Baking
• 7 Importance of Website for Small Business Success

Final Words

We all know that rice is a staple in every Filipino household—but one can also argue that so is bread. Pinoys enjoy having pandesal for breakfast, ensaymada for merienda, and a whole box of warm buko pie for pasalubong.

If you feel passionate about baking (or just really consider baked goods as an indispensable part of your diet) and need a profitable small business idea that you can turn into a building block for your business empire, a bakery may just be the right match. The universe may be sending you a signal to finally take a slice of the pie and claim a share of this thriving market.

Read on to learn how to start a bakery business, why you should go for it in the first place, and what fundamental actions you need to take to bump up your success rate.

One of the significant perks of opening a home bakery business is that you don’t need to go through the hassle of finding and setting up a store. If the kitchen in your home is big enough, you can operate from there. Also, some rules and regulations home business owners have to follow.

Check with the local government for the licensing and permit requirements. Once the legal part is over, you have to invest some efforts into market research and building your brand. With our guide, you’ll have assistance in every leg of your journey to start a bakery or baking business at home .

Just in case you need help in creating your cake contract, read this article: Cake Contract Terms and Conditions .

Good luck with your new venture!

About HICAPS

Over the years, HICAPS has helped bakers and businesses make delicious products by offering ingredients like ChiffonAide Cake Oil , Magic Whizk Instant Whipping Cream , Red Velvet Emulco Flavor and Color , Ube Yam Emulco Flavor and Color , and HICAPS Buttercream Prime Butter Blend .

HICAPS also provides tools and resources to valued partners such as the FREE Marketing Strategy For Bakery Business E-book and dealer locator that helps look for baking supplies stores near me .

Want more free tips and tutorials? Follow us on Facebook at Hicaps Mktg. Corp. and on YouTube at HicapsTV .

Want to be one of our valued partners? Fill this form out. Looking forward to talking to you soon!

• About the Author
• Latest Posts

Mervin Manalo is a Chemical Engineer who graduated from De La Salle University in Manila, Philippines. He has over 20 years of experience in the food industry and currently serves as President and CEO of HICAPS Mktg. Corp., a provider of prime baking ingredients.

He also attended a mini MBA program at Guthrie-Jensen, which helped him broaden his business knowledge and skills. Under his helm, HICAPS expanded its business and helped more clients grow thru the years. He loves technology and new trends and is always looking for ways to improve his products and services.

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How to Start Bakery Business in Philippines: Paano magtayo at magpatakbo ng Panaderya?

Ang tinapay ay isa sa mga pangunahing pagkain ng mga Pilipino. Maliban sa bigas, isa ito sa mga mabentang pagkain. Kaya naman, isa ito sa mga hanapbuhay na mataas at mabilis ang kita. Kung pagaaralan ang pagtatayo ng isang bakery ng mabuti, maaring kumita ng marami. Bago pumasok sa ganitong business, isipin mabuti kung ito ay kahihiligan mo at kung mabibigyan mo ito ng sapat na oras o panahon. Maaaring gumawa ng mga listahan ng mga bagay na magaganda sa pagkakaroon ng isang bakery at mga challenges na maaaring maranasan. Sa ganitong paraan, makikita mo kung mas matimbang ang mga magagandang bagay na makakamit sa pagkakaroon ng bakery.

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Bakery Business Plan

Start your own bakery business plan

Jolly's Java and Bakery

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

There is a shortage of coffee spots where customers can get high quality coffee and freshly baked pastries in a higher income market in Washington state.

JJB offers a broad range of coffee and espresso products, all from high quality imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail.

Because Washington has a cool climate for eight months out of the year, hot coffee products are very much in demand. During the remaining warmer four months of the year, iced coffee products are in significantly high demand, along with a slower but consistent demand for hot coffee products. Much of the day’s activity occurs in the morning hours before ten a.m., with a relatively steady flow for the remainder of the day.

Competition

Competition in the local area is somewhat sparse and does not provide nearly the level of product quality and customer service as JJB. Local customers are looking for a high quality product in a relaxing atmosphere. They desire a unique, classy experience.

JJB is a bakery and coffee shop managed by two partners. These partners represent sales/management and finance/administration areas, respectively. The partners will provide funding from their own savings, which will cover start-up expenses and provide a financial cushion for the first months of operation.

Expectations

JJB anticipates sales as shown below during the three years of the plan. JJB should break even by the fourth month of its operation as it steadily increases its sales. Profits for this time period are expected to be relatively low in the first two years, increasing somewhat in the third. We are projecting investment of $140,000 from the two founders.

Financial Highlights by Year

Financing needed.

Startup requirements:

• Startup expenses of $64K including $3K legal, $20K location premises renovation, $40K expensed equipment, and $1K other. These show up as negative retained earnings in the initial balance because they are incurred before launch.
• Starting cash in the bank of $70K. (in initial balance)
• Other current assets of $12K (in initial balance)
• Long-term assets of $65 (in initial balance)
• $110K initial investment from founders (Shows up in initial balance as Paid-in Capital.)
• $100K 10-year loan from SBA (in initial balance)
• $1K in accounts payable at startup. (in initial balance)

Problem & Solution

Problem worth solving.

There is a shortage of coffee spots where customers can get high-quality coffee and freshly baked pastries in a higher income market in the southwest area of Washington state. 

Our Solution

JJB offers a broad range of coffee and espresso products, all from high-quality Columbian grown imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail.

Target Market

Market size & segments.

JJB focuses on the middle- and upper-income markets. These market segments consume the majority of coffee and espresso products.

Local Residents

JJB wants to establish a large regular customer base. This will establish a healthy, consistent revenue base to ensure the stability of the business.

Tourist traffic comprises approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.

Current Alternatives

Leading competitors purchase and roast high quality, whole-bean coffees and, along with Italian-style espresso beverages, cold-blended beverages, a variety of pastries and confections, coffee-related accessories and equipment, and a line of premium teas, sell these items primarily through company-operated retail stores. In addition to sales through company-operated retail stores, leading competitors sell coffee and tea products through other channels of distribution (specialty operations).

Larger chains vary their product mix depending upon the size of each store and its location. Larger stores carry a broad selection of whole bean coffees in various sizes and types of packaging, as well as an assortment of coffee- and espresso-making equipment and accessories such as coffee grinders, coffee makers, espresso machines, coffee filters, storage containers, travel tumblers and mugs. Smaller stores and kiosks typically sell a full line of coffee beverages, a more limited selection of whole-bean coffees, and a few accessories such as travel tumblers and logo mugs. According to the most recent data available, industry retail sales mix by product type was approximately 73% beverages, 14% food items, eight percent whole-bean coffees, and five percent coffee-making equipment and accessories.

Our Advantages

The retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine climate in southwest Washington stimulates consumption of hot beverages throughout the year.

JJB wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure stability of the business. In addition, tourist traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.

Keys to Success

Keys to success for JJB will include:

Providing the highest quality product with personal customer service.

• Competitive pricing.

Marketing & Sales

Marketing plan.

Our marketing is rooted in the quality of the experience, to generate good word of mouth and repeat visits. That should generate good reviews on Yelp and Google Maps and similar review platforms. 

Of course we will pay attention to reviews and work with promotions to encourage reviews without being too blatant about it. 

We will also keep an up-to-date Facebook page and Twitter persona with regularly updated content. We will be slow to do promotions over social media, emphasizing useful content instead. Some of that will include community content. 

Locations & Facilities

JJB wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure the stability of the business. In addition, tourist traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market. JJB will have a storefront that is easily accessible from 2 different highways. 

Milestones & Metrics

Milestones table.

Key Metrics

Of course, the main metrics are the obvious ones: sales, direct, costs, expenses, and cash flow. But we will also be watching for units, customers, and social media metrics including Facebook likes and Twitter follows.  

Ownership & Structure

JJB is incorporated in the state of Washington. It is equally owned and managed by its two partners.

The company intends to hire two full-time  managers, one pastry chef and 3 part-time baristas to handle customer service and day to day operations.

Management Team

Personnel Table

Financial Plan investor-ready personnel plan .">

Revenue forecast.

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

We will be financing initial assets of $65,000 long-term assets (equipment, etc.) and $12,000 current assets plus initial inventory and the early months before break-even occurs. 

Sources of Funds

Two owners each investing $70,000. Total startup investment is $140,000

Projected Profit & Loss

Projected Balance Sheet

Projected Cash Flow Statement

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Tips on Starting a Bakery Business in the Philippines

Updated: March 21, 2024

Bread is a staple food everywhere. In the Philippines, it is consumed as much as rice every day, especially during breakfast and merienda.

Hence, starting a bakery business is a promising venture. And fortunately, it doesn’t require a lot of capital to put up your own panaderya in your local area.

If you’re hoping to go into the bread business, then below are some tips that can help you start a bakery business in the Philippines.

Basics of Running a Pinoy Bake Shop

Before anything else, you need to ask yourself if this is the type of business you really want to put up and manage in the long run.

After all, this will be a responsibility that you will handle every day. So it’s important to have an interest in baking and bread preparation if you want to be successful in this business.

First of all, you have to study the specifics of the Filipino bakery industry. You need to know how you can successfully sell pan de sal and other bread products in your area. Do your homework – research.

Putting up your own bakery requires baking skills and knowledge in bread and pastries. You can enroll in baking lessons or training offered by TESDA or other culinary schools. Do not decide to start a bakery business if you don’t know how to bake. Knowing the baking process will make things easier for you as you manage your business.

It may take one month or so before you can learn how to bake. Make sure you’ll get a certificate after the training to show as proof to your customers. This will attract more customers because certificates from formal training vouch for your familiarity with the business.

Hands-on training will help you develop your baking skills. You can work with flour mills in your area to fully understand how things work. Remember, practice is better than theory. So go ahead and discover how you can enrich your baking knowledge through local baking courses.

Also, it’s important to find a good location. Some decide to put up their bakery business in their house. This is a practical decision since you don’t need to rent a place for your bakeshop. You just need to register your business and you’re good to go.

Food businesses like bakeries require human traffic. That means it’s advantageous to put it up in residential areas, near schools, the local market, and adjacent to hospitals. Terminals are also an ideal place to put up your bakery business.

Furthermore, develop your products that are appealing to your target market. You can research the best-selling baked products of other shops to see if they will work for you.

For example, if you are planning to put up a bakery in Manila, then sell bread that Manilenos like such as ensaymada, monay, tasty bread, and of course, pan de sal. Experiment and see what would appeal to your customers.

One basic rule in all businesses is to start small. Do what you can and use what you have. It’s not even advisable to loan a big amount of money if you’re not sure how to run your business yet.

If your business is growing, that’s the time you can expand your products and branches. Decide on the right equipment you will use and buy supplies as needed. Do not overspend.

• Some of the equipment you need includes bakery oven, dough mixer, bread crusher, bread slicer, and baking trays. Canvas before deciding to buy these essentials.
• Maintain the quality and consistency of your products.
• Good tasting bread will always attract customers. Focus on your ingredients and recipes. Be consistent in the taste of your products.
• Learn from the people who buy your products. You can improve your current offers to get more customers.
• Consider local regulations in your area. Secure your business permit, DTI certification, and other important documents.

As you grow your business, manage your resources well. Be thrifty and prudent in all your transactions especially if it involves your money. Aside from time, you also need to be responsible for your duties as the boss.

Be patient in understanding your business. The first steps are always the hardest. So you need to be passionate when dealing with people that can help you to become successful in the bakery business.

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Yung auntie ko meron tatlong bakery isa nalang ngayon ang natira. Mejo mahirap mag manage ng bakery lalo na kapag wala kang first hand experience o alam sa pag gawa ng tinapay. Once na umalis ang panadero mo magclose talaga ang store for days na wala pang kapalit. So best dito sa mga may plan mag bakery ay mag aral din ng baking at pastry.

Sa bakery business po ba papano ma compute ang interest o tubo ? Sa per sack of flour ba?

Starting a bakery business at first is hard, you need proper training, proper people and most of all proper equipment. Talagang nasa execution mo pano mo mapapatakbo e. In terms of supply and equipment, yan ung magiging body kit kumbaga ng business mo, without that mahihirapan ka. I have been running bakery businesses na for years din with the help of Felusa or Usabal Enterprises. Sila nagsusupply ng equipments ko and ovens ko here in QC. Nung bumili ako ng ovens humingi narin ako ng konting tips dun sa owner on what to do para ma prolong ung business. And naging okay naman, that was 4 years ago. Kaya kung plan niyo magstart ng business with proper equipment and mindset, try talking to Tom Usabal of Usabal Enterprises in Marikina. Baka matulungan nila kayo. Equipment palang sobrang laking tulong na 🙂

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The 12 best coffee shops and best cafes in Khimki

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Khimki, Moscow Oblast, Russia

Khimki is a city located in Moscow Oblast, Russia, which is situated about 23 kilometers northwest of Moscow. It is one of the most significant industrial centers in the region and has a population of approximately 253,000 inhabitants as of 2021. The city is connected to Moscow by the Moscow-St. Petersburg highway and the Moscow Central Circle railway.

One of the most beautiful areas in Khimki is the historical center, which is known for its well-preserved buildings from the 19th and 20th centuries. The area is home to the City Hall and the City History Museum, as well as several beautiful parks and green spaces. The housing prices in this area are on the higher end due to the historic charm and central location. The average price for a one-bedroom apartment in the historical center is around 50,000 rubles (about $675) per month. The transportation is convenient with several bus and minibus routes connecting the area to the rest of the city. This area is generally safe, with low crime rates.

Another area worth mentioning is the recently developed residential district of Yaroslavsky. It is located in the eastern part of the city and is known for its modern and comfortable living spaces. The area has a large park with several playgrounds, bike paths, and sports fields. The housing prices in this area are more affordable compared to the historical center, with the average rent for a one-bedroom apartment being around 30,000 rubles (about $400) per month. The transportation is also convenient, with several bus routes connecting the area to the rest of the city. The safety of this area is also high, with low crime rates.

The Sokolniki neighborhood is also a popular residential area in Khimki. It is located in the southwestern part of the city and is known for its green spaces, which include several parks and forests. The housing prices in this area are slightly higher than in Yaroslavsky, with the average rent for a one-bedroom apartment being around 35,000 rubles (about $470) per month. The transportation is convenient, with several bus and minibus routes connecting the area to the rest of the city. The safety of this area is also high, with low crime rates.

Khimki is known for its diverse industry, which includes metalworking, chemicals, and construction materials. The city has several large industrial plants, such as the Sheremetyevo International Airport, which is one of the busiest airports in Russia. The city also has several shopping centers and entertainment complexes, such as the MEGA Khimki Mall, which is one of the largest malls in the region.

The people of Khimki are known for their love of sports, with football, ice hockey, and basketball being the most popular. The city has several sports clubs, such as the Khimki Basketball Club, which is one of the most successful basketball teams in Russia. The city also has several well-known public figures, such as the musician and composer Andrey Makarevich, who is known for his work with the band Mashina Vremeni.

Khimki is a beautiful city with a rich history and culture. The city has several outstanding areas, each with its own unique charm and character. The housing prices in the city are generally affordable, and the transportation is convenient, making it a great place to live. The city is known for its diverse industry, sports, and entertainment options, making it a great place to work and play.