Are you about to start your own cake making business? here is an example of a complete feasibility study for a cake making business plan template that you can use for FREE .
Ok, so we’ve covered all the requirements you need to start a cake making business. We also took it a step further by analyzing and writing a sample cake making marketing plan template, supported by actionable guerrilla marketing ideas for custom cake businesses. So let’s move on to the business planning section.
Why start a custom cake making business?
If you are a baker or even a pharmacist, it is easy for you to take the risk of making a personalized cake because the same ingredients and processes used in making regular cakes are the same as in making cakes, except for the size difference.
The main ingredients used in making personalized cakes are flour, butter, sugar, eggs, frosting and cake decorations. The unique thing about making cakes to order is that it is your creativity that can set you apart from the competition.
Without a reasonable doubt, a custom cake making business is truly a lucrative business as you can run the business with your family members from your kitchen, keeping your operating costs to a minimum. Moreover, if you are able to provide a strategic high traffic location for your store opening, you can be sure that you will make good profits with your cake making business.
On top of that, if you decide to start if you are into custom cake making, then you should conduct a feasibility study as well as market research. This will allow you to correctly locate a business in a community or city with the right demographics and then get started. Another very important business document that you shouldn’t take for granted when starting your own business is a business plan.
Below is a sample cake making business plan template that can help you write your own successfully without hassle.
Sample Custom Cake Making Business Plan Template
- Industry overview
Custom cake making is part of the frozen cake and confectionery industry, and players in this industry produce a variety of cakes, frozen sweet pastries, including soft cakes, cheesecakes, donuts, pies and cookies, and more.
If you watch the industry closely, you will agree that the industry started off in a bleak way. Rising health awareness, changing consumer tastes and competition from fresh baked goods are dampening demand for traditional industrial products.
In response to these trends, industry operators have focused on reformulating their existing desserts with healthier, higher quality ingredients. In addition, operators have also experimented with new flavor combinations while simultaneously releasing unique varieties that target a wider range of health-conscious consumers.
The production of frozen cakes and confectionery, of which the production of personalized cakes is a part, is indeed a thriving and profitable industry in most countries of the world. It is a major sector of the United States economy and generates over $ 6 billion annually from more than 228 registered and licensed frozen pastry and confectionery companies scattered across the United States of America. .
The industry employs around 21,720 people. Experts predict that the industry will grow by 0.8% per year between 2013 and 2021. The companies that hold the lion’s share of the market available in the industry are Conagra and The Schwan Food Company.
A recent report published by IBISWorld shows that the frozen pastry and confectionery industry has experienced difficult operating conditions over the past five years. Changing food trends and preferences are increasingly turning consumers away from frozen or otherwise processed foods and towards fresher alternatives.
Concerns about unhealthy ingredients and the naturally high calorie content of cakes and pastries make the industry even more difficult to exploit. However, the makers of frozen pies have responded quickly to changing consumer tastes by launching dozens of new dessert varieties and flavors to appeal to a wider range of health-conscious consumers.
One of the factors that motivates future entrepreneurs to get into custom cake making is the fact that you can start a small business from the comfort of your kitchen, without purchasing heavy equipment. All you have to spend are cake baking ingredients and related materials.
In fact, you can start by providing your usual cakes to a household in your area, or you can even open a small store / kiosk in front of your house and start selling your personalized cakes. If you are hardworking and lucky enough, you can start providing contracts for events (parties, wedding ceremonies, etc.) from the start. This is why it is so important to team up and make strategic business alliances with event managers and wedding planners.
If you are planning to start your own cake making business in the United States, you need to make sure to follow. in-depth market research and feasibility studies. But above all, a custom cake making business is a lucrative business, especially if you are creative and ready to jump into the affordable market in your area.
Summary of a personalized cake business plan
Sandra Langton ™ Custom Cakes, Inc. Is a standard cake production company to be based in Medford, Oregon, USA. Although we intend to start with our own small bakery, this in no way prevents us from maximizing our potential in producing personalized cakes.
Our business goal is to be the number one choice in all the communities where we will sell our personalized cakes. We are extremely creative which is why we will offer cakes with different designs, themes, flavors and packaging to attract them to our target market.
Our own bakery and delivery network will be tailored to our ideas of what a typical bakery business should look like. When it comes to hygiene, we have developed plans, processes and structures to make sure we are always on top of our game. We were able to get permits from all relevant departments in Oregon.
We have developed plans for the continuing education of our employees, as well as for communicating with industry stakeholders to bring their quotas on how bakery equipment and accessories should be designed to meet the ever-changing demands. evolution of the industry.
The demand for regular baked goods and other baked goods is not going to drop anytime soon, so we have plans on hand to explore all available markets in the communities where we intend to sell our personalized cakes. In the near future, we will ensure the creation of a wide range of distribution channels through franchising.
Our strong point is Sandra Langton ™ Custom Cakes, Inc. is the unique taste of the different flavors of the cakes we sell. There is hardly anyone who tastes our cakes and doesn’t want to come back and do more shopping.
Sandra Langton ™ Custom Cakes, Inc. will continually demonstrate her commitment to sustainability by actively participating in our communities and incorporating sustainable business practices where possible. We will deliver on our responsibility to the highest standards, meeting our customers’ needs exactly and fully.
Our plan is to make our custom cake business the leading brand throughout Medford, Oregon and also be in the top 2 custom cake brands in all of Oregon for the first 5 years of our business.
It may sound like too big a dream, but we hope it will certainly come true because we have done our research and feasibility studies and are convinced that Medford is the right place to start this type of business.
Sandra Langton ™ Custom Cakes, Inc. founded by Ms. Sandra Langton. She has extensive experience in the food and confectionery industry in the United States before starting her own cake making business.
- Our products offer
Sandra Langton ™ Custom Cakes, Inc. We work with all types and tastes of cakes. We will be baking and retailing custom cakes in different designs, themes, flavors, and packaging, just to appeal to our target market. Here are some of our unique cake products:
- Cooking (eg Danish, French)
- Sweet yeast products
Our standard business vision for the production of made-to-order cakes is to become the number one choice around Medford and to become the number 2 leading company for the production of made-to-order cakes in Oregon on the occasion of our 5 th anniversary.
- Our mission statement
Our mission is to create our own cake making business that will grow from a home bakery to a standard bakery whose products can be found throughout Oregon and the surrounding states.
- Our corporate structure
As part of our plan to build the most popular cake making business in Medford, Oregon, we planned to get it right from the start, which is why we are committed to hiring people. competent.
The type of cake making business we intend to create and the business goals we want to achieve are what communicated how much we are willing to spend to ensure the creation of a standard in-house bakery, hire a dedicated workforce and build a reliable distribution network. … Below is the business structure we will build on Sandra Langton ™ Custom Cakes, Inc .;
- CEO (owner)
- Bakery manager
- Sales and Marketing Officer
- Drivers / distributors
Roles and responsibilities
Head baker / CEO – CEO (owner):
- Improves management effectiveness through recruitment, selection guidance, training, coaching, counseling and disciplinary guidance transfer values, strategies and goals; distribution of responsibilities; plan, monitor and evaluate performance and develop incentives
- Creates, communicates and implements the vision, mission and general direction of the organization, that is, leads the development and implementation of the overall strategy of the organization.
- Responsible for setting prices and signing commercial transactions
- Responsible for providing business advice
- Responsible for signing checks and documents on behalf of the company
- Measures the success of the organization
- Responsible for overseeing the proper functioning of the bakery
- The part of the team that determines the quantity and design of custom cakes to be produced daily
- Develops lists and budgets for bakery supplies
- Controls the entire cooking process
- Responsible for training new bakers
- Ensures continuous quality maintenance
- Plans a strategy that will lead to increased efficiency of bakers
- Responsible for training, assessment and assessment of the workforce
- Provides a constant flow of raw materials (flour, sugar and other packaging materials, etc.) to the bakery, and an easy flow of finished products (personalized cakes) to the market
- ensures the operation of equipment by meeting preventive maintenance requirements; call for repair.
- Ensures that the bakery always meets the expected safety and health standards.
Head of sales and marketing
- Manages external research and coordinates all internal sources of information to retain the best customers of the organization and attract new ones
- Models demographic information and analyzes transactional data volumes generated by customer purchases
- Recognize, prioritize and contact new partners, as well as business opportunities, etc.
- Responsible for overseeing implementation, advocating for client needs and communicating with clients
- Develops, implements and evaluates new plans to grow sales
- Documents all contacts and customer information
- Represent the company at strategic meetings
- Helps increase sales and business growth
- Responsible for preparing various flavors and styles of cakes and other baked goods.
- Responsible for the preparation of all dishes. ual or unskilled bakery jobs
- Responsible for the operation of packaging and packaging machines
- Perform any other task assigned by the bakery manager
Accountant / Cashier
- Responsible for the preparation of the financial statements, budgets and financial statements of the organization
- Provide management with financial analysis, development budgets and accounting. reports
- Responsible for financial forecasts and risk analysis.
- Perform cash management, accounting and financial reporting
- Responsible for the development and management of financial systems and policies
- Payroll manager
- Ensures compliance with tax laws
- Manages all financial transactions for the organization
- Serves as internal auditor for the organization
Distribution van drivers:
- Fast delivery of customer orders
- Carry out missions for the organization
- All other tasks assigned by the bakery manager
- Responsible for constant cleaning of the bakery
- Ensures toiletries and supplies are not scarce
- Any other task assigned by the bakery manager.
SWOT Analysis of Custom Cake Manufacturing Business Plan
As a result of our commitment to excellence, we were able to bring in some of the best business consultants in Medford, Oregon to review our business concept, together we were able to explore business opportunities and access our- same to make sure we have what we need to run our business. a standard cake making company which can compete favorably in the industry.
In view of this, we were able to assess our strengths, weaknesses, capabilities, and threats we may face in Medford Oregon, as well as other cities where we intend to sell our personalized cakes. Here’s a look at what we got from our SWOT analysis by Sandra Langton ™ Custom Cakes, Inc .;
Our strength lies in the fact that we handle all shapes and flavors of bespoke cakes. We have a state-of-the-art bakery that allows us to meet the demand for bespoke cakes, even if the demand has tripled overnight or we have a large order in an emergency.
Another factor that counts on our advantage is the experience of our CEO; she has significant experience in the industry as well as a good enough academic qualification to match the experience that has made her one of the top professionals in the United States of America.
Having our own cake making business in town along with other baking companies can be a challenge for us as we enter an already saturated market. In fact, the location we choose may be our weakness. But nonetheless, we plan to start with a big bang.
The possibilities open to us are endless: a lot of people consume cakes on a regular basis every day, and everything we are going to do to get them is already worked out.
The threat we are likely to face is with consumer health issues regarding cakes and pastries that have impacted the industry. To combat this we will continue to support sales by experimenting with new fragrances and of course experimenting with natural ingredients in response to growing health awareness.
Unfavorable government policies and the economic downturn are another threat we are likely to face. Usually an economic recession affects purchasing power / purchasing power.
BUSINESS PLAN MARKET ANALYSIS ON NEGOTIATION PLANS
- Market trends
In the bakery and confectionery industries, bakers often try to outsmart each other. There is no doubt that custom cake makers are extremely creative, so they can come up with cakes with different designs, themes, flavors and of course different packaging just to appeal to their target market.
With the speed at which people are becoming health conscious, custom cake makers are experimenting with natural ingredients in response to growing health awareness. Faced with this growing challenge, the trend is that operators will continue to support sales by experimenting with new flavors. External factors such as disposable income per capita and the healthy food index could affect industry performance and trends.
- Our target market
One There is certainly no demographic or psychographic constraint on the target market for personalized cakes. Adults and children alike eat cakes; demographics cover everything, so you can find personalized cakes at wedding receptions, birthday parties, kids’ parties, prom, baby shower and more.
This shows that the target market for personalized cakes is wide and far reaching, you can create your own niche for specific purposes. We retail a wide range of bespoke cakes for the following groups of people:
- corporate organizations
- Churches and other religious centers
- Event planners and wedding planners
- Everyone who resides in our target location
Our competitive advantage
First, the fact that anyone with baking skills can start their own cake making business means the business is open to everyone. the industry is therefore expected to be very competitive. There’s hardly a bustling community or even a street where you won’t find one or a few people selling cakes.
As a baking company, we know that obtaining a competitive advantage requires a detailed analysis of the demographics of the region and the nature of existing competitors. And even if you are successful at first, new competitors can enter your market at any time to steal your loyal customers. Therefore, we will not hesitate to adopt the successful strategies of our competitors.
We’re going to be one of the very few specialty pastry companies in Medford, Oregon that can boast of product differentiation, an ability to adapt to change and deliver contracts instead of key resources.
Another competitive advantage we have is the vast experience of our management team. Thus, the wide range of cakes and other products that we produce, our extensive and reliable distribution network and of course our excellent culture of customer service will certainly be a strong point for our company.
One thing is certain, we will ensure that in the future we will open our offices in different cities in the United States of America and also sell our franchise.
Personalized cake business plan and sales strategy
- Source of income
Sandra Langton ™ Custom Cakes, Inc. created with the goal of maximizing industry profits in the United States. America and we will do our best to do our best to retail all shapes and flavors of custom made cakes As part of our strategy of generating multiple streams of income in line with our core concept
- frozen bakery products (except bread and rolls)
- Frozen pie
- Frozen donuts
- Frozen pies
- Frozen pastries (eg Danish, French)
- Frozen crumbs
- Frozen knives
- Frozen sweet yeast foods
We are well positioned to tap the available market in the United States and are very optimistic that we will achieve our goal of making enough profit in the first month of operations and moving the business out of Medford-Oregon to other American states.
We were able to study the frozen cake and confectionery industry, we analyzed our chances in this industry and were able to make the following sales forecasts. Sales forecasts are based on information collected locally and certain assumptions found in startups in the United States of America.
The following is a sales forecast for Sandra Langton ™ Custom Cakes, Inc. based on our business location and competitive advantage;
- first year: $ 150,000
- second year: $ 250,000
- Third year: $ 700,000
NB . This forecast was made on the basis of what is available in the industry and on the assumption that there will be no major economic downturn and no competitor will come to the same place as ours during this period. -above. Please note that the above predictions may be lower and at the same time higher.
- Marketing strategy and sales strategy
Before choosing a location to launch Sandra Langton ™ Custom Cakes, Inc., as well as a custom type of cake flavors, we conducted extensive market research and feasibility studies so that we could enter the affordable market in cities where we intend to position our business.
We have detailed information and data that we have been able to use to structure our business to attract the number of customers we want to attract at any given time, and also to make our products compete favorably with other top customers. . cake brands in Medford, Oregon.
We have hired experts who know the industry well to help us develop marketing strategies that will help us achieve our business goal of capturing a greater percentage of the available market in Medford. So Sandra Langton ™ Custom Cakes, Inc. Take the following sales and marketing approach to sell our wide range of cake flavors:
- Showcase our cake brand by sending introductory emails to residents, vendors, and other interested parties in Medford and other cities. in oregon
- Open our party cake making business to grab the attention of residents who are our primary targets.
- From time to time participate in roadshows in targeted communities to sell our products
- Promote our products in local newspapers, local TV and radio stations
- List our products and products on the yellow ad pages (in local directories)
- Internet to promote our own brands of cakes
- Do direct marketing and sales
- Encourage the use of word of mouth marketing (referrals)
Development of a business plan for the production of personalized cakes and advertising strategy
Regardless of the standard, with a wide range of flavors and products that can compete favorably with other top brands in the United States of America, we will continue to increase our advertising for all of our products and brands.
Sandra Langton ™ Custom Cakes, Inc. We have a long term plan to open outlets in various locations across the United States of America and to sell our franchise. We will therefore deliberately create our brand to be welcomed in Medford before we leave. to other cities in the United States of America. America. These are the platforms we intend to use to promote and advertise Sandra Langton ™ Custom Cakes, Inc .;
- Place advertisements in print (community newspapers and magazines) and electronic platforms
- sponsor relevant community programs
- use on the Internet and on social media platforms such as; Instagram, Facebook, Twitter, etc. To promote our brand.
- Install our billboards strategically in major Oregon cities
- Take part in roadshows from time to time in targeted communities
- Distribute our leaflets and leaflets in targeted areas
- Place our Flexi banners in strategic positions where we intend to get customers to start patronizing our personalized cakes.
- Make sure all of our employees are wearing our tailor-made clothing and that all of our official cars and vans are personalized and branded.
Our pricing strategy
Generally, pricing for made-to-order baked goods and similar products such as frozen cakes and baked goods is possible, so there is no need to use detailed pricing strategies.
As such, our prices will be in line with what is available in the industry, but we will ensure that our custom cakes will sell for slightly below average prices for the first 3-6 months. We have developed business strategies that will help us operate with low margins within 6 months; it’s a way to get people to buy our brands.
- payment methods
Payment policy accepted by Sandra Langton ™ at Custom Cakes, Inc. everything is included as we are well aware that different customers prefer different payment methods as they wish, but at the same time we will ensure that the financial rules and regulations of the states United States of America be respected.
Below are the payment options offered by Sandra Langton ™ Custom Cakes, Inc. will provide its customers;
- Payment by bank transfer
- Cash payment
- Pay by credit card
- Pay by online bank transfer
- Payment by check
- Pay by mobile money transfer
With this in mind, we have chosen banking platforms that will allow our customers to pay for our personalized cakes without any stress on their part. Our bank account numbers will be available on our website and in promotional materials.
- Start-up costs (budget)
When it comes to creating a custom brownie, there are many factors that affect the amount needed to successfully launch a business. Factors such as where you are going to start the business, the size of the baking business you want to open, like the number of outlets / stores, etc., and of course the condition of the business. economy when you intend to start the business …
We know that no matter where we are going to start our own cake business, we will need to complete most of the points listed below;
- US Business Registration Fee $ 725.
- Budget for legal fees, insurance, permits and licenses $ 3000
- The amount required to create the standard is the home bakery and facility renovation, including $ 30,000.
- Expenses for the purchase of kitchen / bakery equipment and gadgets (industrial ovens, refrigerators, smoke detectors, televisions, microwave ovens, saucepans, aluminum foil, sound system, tables and chairs, etc.) USD 15,000.
- Other start-up costs, including office supplies ( $ 500 ) and telephone and utility bills ( $ 2,500 ).
- Operating expenses for the first 3 months (employee salaries, bill payment, etc.) $ 20,000
- The monthly cost of supplying flour and other baked goods is $ 1,000.
- Website launch costs $ 600
- The opening of the party costs $ 5,000
- Additional fees (business cards, signs, advertisements and promotions, etc.) USD 5,000
Based on our research and feasibility report, we would need an average of US $ 100,000 to start a small but standard baking business in Medford, Oregon, USA.
Creation of seed capital for Sandra Langton ™ Custom Cakes, Inc.
Sandra Langton ™ Custom Cakes, Inc. Is a privately held company owned and funded by Ms. Sandra Langton. It does not intend to welcome external business partners, so it has decided to limit the sources of start-up capital to three main sources. These are the areas in which we intend to generate our seed capital;
- Generate part of the start-up capital from personal savings and sell shares
- Source of concessional loans from family and friends
- Apply for a bank loan
NB . We managed to get around $ 20,000. ( Personal savings of $ 15,000 and Family member preferential loan of $ 5,000 ), and we are in the process of securing a line of credit of $ 80,000 from our bank. All documents and documents have been signed and submitted, the loan has been approved and the amount will now be credited to our account at all times.
Sustainable development strategy and extension of the Custom Cake Business Plan
The future of a business lies in the number of its regular customers, the skills and competence of their employees, their investment strategy and their business structure. If all of these factors are missing from the business, then soon after the business closes,
one of our primary goals for launching Sandra Langton ™ Custom Cakes, Inc. is to build a business that will survive on its own cash flow without having to inject funds from external sources upon the official launch of the business. . We know that one way to gain acceptance and gain customers is to retail our wide range of cakes for a little less than what is available in the market, and we are well prepared to survive at most. low arrival.
Sandra Langton ™ Custom Cakes, Inc. will ensure that the right foundations, structures and processes are in place to ensure the well-being of our staff. Our corporate culture aims to take our business to the next level, and the training and retraining of our employees is at the top.
We know that if this is done we can be successful in recruiting and keeping the best hands we can get in the industry; they will be more interested in helping us build our dream business
Checklist / step
- Company name availability check: complete
- Company registration: complete
- Opening of corporate bank accounts: complete
- Point of Sale Security (POS): Completed
- Opening of Mobile Cash accounts: complete
- Opening of online payment platforms: completed
- Application and obtaining of the tax identification number: in progress
- Application for business license and permit: Completed
- Purchasing business insurance: complete
- Room rental and construction of its own bakery: in progress
- Feasibility studies: completed
- Fundraising from family members: complete
- Bank loan applications: in progress
- Preparation of the business plan: Completed
- Compilation of employee handbook: complete
- Drafting of contractual documents and other relevant legal documents: under development
- Company Design Logo: Done
- Printing of packaging, marketing and advertising material: in development
- Recruitment: in progress
- Purchase of necessary furniture, shelving, shelves, computers, electronics, office equipment and CCTV systems: In progress
- Creation of an official website for the company: In progress
- Building information for online and community businesses: ongoing
- Health and Safety and Fire Safety Agreement (license): protected
- Planning to open or launch a participant: in progress
- Establishment of a business relationship with suppliers – wholesalers / sellers of ingredients for making cakes and packaging materials, etc .: ongoing
- Purchase of vans: complete