Strategies for Success in Small Business Bakeries: A Business Plan

Abstract

Creations Café & Dessertery will be a small bakery/café serving a variety of baked goods and desserts as well as coffee, other beverages, and a limited menu of light meals. It will also serve as a venue for local art, showcasing art regularly in the establishment and during events. The café will strive to be a third-place (a location where people spend their time outside of home and work) where people can hang out, study, meet, view art, and participate in events while enjoying quality sweets in a homey environment.

This business is in the Coffee & Snack Shops industry (NAICS 722513). The industry has grown 5.8% in the last five years and major trends include innovation, health, and convenience. The café will create innovative products to meet customer needs and interests.

Marketing will be done mostly through social media and by word-of-mouth. The café will be marketed as a third-place for those who enjoy sweets and art. The primary target will be 18-34 year-olds with disposable income.

The café will be proactive to prevent any foreseeable issues that may arise and emphasize the continuing improvement of internal processes. An enjoyable and well-functioning work environment will be sustained by organization and transparency. Suitable people will be hired initially and trained consistently. The staff will comprise of barista/cashiers, bakers, and managers. All employees will be encouraged to share concerns and ideas.

An ideal location for the business will be in a relatively affluent and densely-populated area. The building will need to be in a convenient location and be large enough to comfortably house a kitchen, service area, dining area, bathrooms, office area, and storage area.

Rachel Rockas will be the owner and serve as one of the managers. The owner will contribute $20,000 to the initial capital and a bank loan of $50,000 is desired to cover the start-up expenses. Initial start-up costs come mainly from the equipment and furniture needed to produce and sell products. Revenue will be generated from food and beverage 5 sales, and expenses will mainly arise from building operations, inventory, labor, depreciation, and loan payments. The café is projected to make a profit of about $86,000 in its first year operating.