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Agriculture Business Plan Sample

Start your agricultural farming business with this sample business plan.





Thinking of starting your own farm? Make sure you have a detailed business plan to start with. Start your agricultural farming business with this sample business plan.

1. Executive Summary

Botanical Bounty is an existing farm dedicated to the production of botanical perennials. Botanical Bounty has been formed as an Oregon-based Limited Liability Corp. (L.L.C.) located outside of Albany, Oregon.

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Botanical Bounty is working hard to become a leading producer of botanical plants for the natural supplement industry as well as plant nurseries. By leveraging a well thought out business plan executed by a skilled management team, Botanical Bounty will generate over $216,000 in year three sales.

Keys to Success

Botanical Bounty has identified three keys that will be instrumental in their success. The first is the implementation of strict financial controls. By having the proper controls, production efficiency will be maximised.

The second key will be the never ending pursuit for the industry’s highest concentration levels of botanical ingredients in each plant. The third key is the recognition and implementation of the philosophy that 100% customer satisfaction is required to ensure a profitable business.

Profits are a by product of satisfying customers, not the other way around.


Botanical Bounty is a 10 acre farm that concentrates on the growing of botanical medicinals. Botanical Bounty has chosen five plant species that have significant market demand as well being well suited for growth in the Willamette River Valley.

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Botanical Bounty will feature: Echinacea – an immune system booster; Ginseng – a source of energy; St John’s Wort – for mild depression; Skullcap- for inflammation; and Ginger – a stomach soother.


Botanical Bounty has three distinct customers: Supplement companies, processors of botanicals for supplement companies, and nurseries that resell the plants. The first two customers purchase the plants for use in their products which they ultimately sell to the end consumer.

The market for natural supplements is quite exciting. Surveys show that over 158 million consumers (over 55% of U.S. population) use dietary supplements.An estimated 115.3 million consumers buy vitamins and minerals for themselves, and 55.8 million purchase them for other members of their family, including children.

Consumer surveys consistently find that nearly half of all Americans now use herbs – a statistic that is particularly remarkable when we realise that today’s herbal products industry is just over a quarter century old.

Management Team

Botanical Bounty will be lead by the husband and wife team of David and Sue Nealon. David brings a wealth of business and project management skills to the company. While working at Yahoo!, David was responsible for the successful launch and market lead capture of Yahoo!s driving directions section. Utilising these skills, David will be responsible for the business operations of the farm.

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Sue, with a background of plant biology will be the driving force of the operation, growing the highest active ingredient content plants in the country. Additionally, because of her wealth of knowledge, she will be the leader of the sales department.

Financial Plan

Botanical Bounty began as a hobby for David and Sue two years ago. Over the last two years they have worked out all of the bugs related to production. Additionally, they are now quite hungry to succeed, creating one of the premier botanical perennial farms in the country.

To finance our growth and full-time production, we need to purchase $35,000 worth of new equipment as long-term assets. To that end, we are seeking a $100,000 10-year loan.

Sales forecasts conservatively indicate that $190,000 revenue will be generated in year two, rising to $216,000 the following year.

1.1 Objectives

The Botanical Bounty has identified several objectives for the business:

  1. Become a leading supplier of botanical perennials for the health/vitamin industry.
  2. Reach the point of sustainable profitability.
  3. Enjoy work while making a good living.

1.2 Mission

It is Botanical Bounty’s mission to become the leading provider of botanical perennials to the health/vitamin industry. This will be accomplished by providing quality plants at fair prices while exceeding customer’s expectations.

1.3 Keys to Success

Botanical Bounty will adhere to three keys that will be instrumental in its success:

  • Strict financial controls.
  • The never ending pursuit of the highest concentration of botanicals in every plant.
  • Ensuring that all customer’s needs are met and they are satisfied with the purchased products.

Related: Conducting a Business Plan Market Analysis

2. Company Summary


Botanical Bounty is an Oregon based perennial farm that grows a variety of botanical medicinal perennials. The company has been formed as an Oregon L.L.C. The farm has been in existence for two years now, initially operating as a hobby as rather than a profit producing business.

2.1 Company History

Botanical Bounty has been in operation for two years. Initially it was started as a hobby where Susan could use her plant biology skills while covering some of the costs. The Nealon’s were able to achieve this lifestyle due to a windfall that David received as a result of exercised stock options.

After the second year, the Nealon’s decided that although they had the money to live on for many years, it would be irresponsible to needlessly spend it so they got serious about the business and made a concerted effort to become profitable.

Botanical Bounty has chosen the Willamette River Valley as an ideal place to grow perennials. Botanical Bounty has 10 acres of land which they use for production. During several of the winter months, production is moved into their green house for propagation. Botanical Bounty employs a drip irrigation system for all of the plants.

2.2 Company Ownership

Botanical Bounty is an Oregon L.L.C. owned by David and Susan Nealon. The L.L.C. business formation has been chosen as a strategic way to shield the Nealons from personal liability.

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3. Products


Botanical Bounty offers a range of botanical perennials (plants where the root structure remains, allowing the plant to regrow every year). Botanical perennials were chosen for two main reasons.

The first is the medicinal value that they offer, therefore the plants have a positive contribution to society by improving people’s health. The second reason is that the market for medicinal herbs is a very strong industry with excellent growth, ensuring demand for their plants.

Botanical Bounty will offer the following excellent:


Echinacea was used extensively by Native Americans and the early settlers also adopted its use.

It has been used for years in alternative medicine to support the immune system, and to purify the blood, especially during season changes and during the cold and flu season.

Scientific studies have confirmed the presence of natural chemicals, echinacosides, which increase white blood cell activity.


Ginseng stimulates and increases endocrine activity in the body. Promotes a mild increase in metabolic activity and relaxes heart and artery movements. Stimulates the medulla centres and relaxes the central nervous system.

St. John’s Wort

St. John’s Wort has been used as a medicinal for thousands of years, but has only recently been studied for its medicinal value.

Now proven to have many highly active compounds including rutin, pectin, choline, sitosterol, hypericin and pseudohypericin. The flowers and leaves are medicinal as analgesic, antiseptic, antispasmodic, aromatic, astringent, cholagogue, digestive, diuretic, expectorant, nervine, resolvent, stimulant, vermifuge and vulnerary.

Some compounds of the plant have been shown to have potent anti-retroviral activity without serious side effects and they are being researched in the treatment of AIDS.


Skullcap is a powerful medicinal herb, it is used in alternative medicine as an anti-inflammatory, abortifacient, antispasmodic, slightly astringent, emmenagogue, febrifuge, nervine, sedative and strongly tonic.

Some valuable constituents found in the plant are scutellarin, catalpol, other volatile oils, bitter iridoids and tannins. Scientific studies are proving this to be a valuable plant in many areas for mental disorders.

Skullcap is used in the treatment of a wide range of nervous conditions including epilepsy, insomnia, hysteria, anxiety, delirium tremens, withdrawal from barbiturates and tranquilisers.


Ginger roots and dried herb are medicinal and edible, it has a spicy, hot, crispy, taste and can be eaten fresh in small quantities in salads, used as a relish, a condiment, or made into a sauce for meat, especially good on chicken, or used to make ginger candy.

Widely used as an alternative medicine ginger contains the valuable constituent aristolochic acid, scientific study shows it to have anti-inflammatory, antiviral, antitumor activity, cures warts in some cases and is a broad-spectrum antibacterial and antifungal.

Botanical Bounty sells these excellent perennials in plant form for the botanicals to be extracted by their customers. Botanical Bounty concentrates on producing the healthiest plants which have the highest concentration of active botanicals.

Related: How to Write a Funding Proposal

4. Market Analysis Summary


Botanical Bounty has identified three main customer groups: supplement companies; botanical processors; and other nurseries. The customer segments are distinct enough to be able to target each one differently.

The industry that Botanical Bounty produces for has been undergoing consolidation for several years now. Botanical Bounty will be able to serve the industry by leveraging their competitive edge of healthy, potent plants.

4.1 Market Segmentation

Botanical Bounty has identified three different target market segments which they will sell to:

Supplement Companies

This customer group manufactures botanical supplements for their own label products.

The companies purchase the plants and extract the active ingredients and transform them into sellable products for their own brand. There are a handful of large companies that operate in this market space.

Ten years ago there were many different ones but through consolidation the industry has grown in size but decreased in the number of different players.


These customers purchase the the plants, extract the botanicals and either sell the concentrated botanicals to the end producers or they themselves produce the supplement and sell the final product to other companies for their private label products.

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In essence they are the subcontractor for the supplement companies. These companies therefore are one layer within the manufacturing system and do not sell to the end consumer. They act as a supplier/processor for the retail brands.

Other Nurseries/Garden Centres

This customer group purchases the plants which they in turn sell at retail to the individual end consumer. The typical consumer is a health conscious individual who is interested in either extracting the botanical from the plant immediately or growing the plant in their own garden for future use.

4.2 Target Market Segment Strategy

Botanical Bounty has chosen the three market segments based on the consistent demand for botanical extracts. While there are other potential customers, they are smaller, less consistent in terms of demand, and more difficult to reach.

Related: Target Market Worksheet

The supplement companies, processors, and to a smaller degree the nurseries are attractive customers due to the their consistent demand and typical long-term contract needs. There is significant value to these customers for a grower to consistently offer the same high level of active botanicals in each plant and to be able to meet the needs of large volume, long duration contracts.

4.3 Industry Analysis

The botanical perennial growing market is typically concentrated in several regions around the U.S. which have optimum growing conditions.

While there are a couple mega farms, on the whole, 78% of the U.S. production comes from growers with 5-20 acres of land. Approximately 23% of botanical extracts are grown abroad and imported into the United States.

Reasons for botanical growth to occur overseas is typically based on the type of herb and its ability to grow better in the respective region.

The market for supplements is huge and growing:

U.S. Supplement Market

Surveys show that over 158 million consumers (over 55% of the U.S. population) use dietary supplements. An estimated 115.3 million consumers buy vitamins and minerals for themselves, and 55.8 million purchase them for other members of their family, including children.

Consumer surveys consistently find that nearly half of all Americans now use herbs – a statistic that is particularly remarkable when we realise that today’s herbal products industry is just over a quarter century old.

The basic reason cited for dietary supplement growth is the desire for self-care. Consumers use dietary supplement products to help them achieve their self-care goals that arise out of a sense of alienation from the established health care system.

Results from a national survey conducted in 1999 by Men’s Health magazine show that consumers use dietary supplements as a means of ensuring good health. They also use supplements for very specific medicinal purposes such as treating and preventing serious illnesses, colds, and the flu; increasing mental sharpness; and alleviating depression.

The consumer’s desire for self-care and the widespread use of dietary supplements may cause problems for public health. An estimated 22.8 million consumers use herbal remedies instead of prescription medicine, and an estimated 19.6 million use them with a prescription product.

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In the past, except for vitamin and mineral products, dietary supplements, particularly botanical products, were sold mainly to adults in health food stores. In contrast, now such products are available in supermarkets, other retail stores, and on the Internet, making these products readily accessible to children and other vulnerable populations.

The Nutrition Business Journal estimated that in 1999, U.S. consumer sales of supplements over the Internet amounted to $142 million, almost three times the previous year’s total of $48 million.

The five main channels of distribution are: consumer-direct (includes direct mail/catalog, direct from sales representatives, multi-level marketing, Internet & infomercial/direct from television); food, drug, mass-market stores, health and natural food stores, healthcare professionals and practitioners, others.

4.3.1 Competition and Buying Patterns

As mentioned previously, competition takes two forms, farms similar in size and production capacity to Botanical Bounty and megafarms. The similarly sized farms range in size from 5-30 acres. The number of different herbs grown varies from a handful to upwards of 50.

The choice of plants grown is based on owner preference as well as location and the ability of the local growing conditions to support the different plants.

On the other end of spectrum is the megafarm. These farms have a similar range of species cultivated, however they differ greatly in production capacity. These farms are huge, typically not less than 100 acres, peaking at 300 acres. These growers however are few number.

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The buying patterns of the different customers are typically based on these variables:

  • Price
  • Availability
  • Ability to deliver consistently on long-term contracts
  • Significant % of active ingredients
  • Consistency

Click here to view this full business plan

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Food and Farming

Catering Business Plan Sample

Thinking of getting into catering? Make sure you have a detailed business plan to start with.





Thinking of getting into catering? Make sure you have a detailed business plan to start with. Use this example to compile your own.

1. Executive Summary

Fressen Catering is a kosher catering company that serves the Philadelphia market. Fressen offers creative, colourful, and unusual food options for kosher as well as the traditional standbys. The service offerings are quite a change relative to the existing kosher catering market which is quite stagnant.

Most people make the incorrect assumption that kosher food means ordinary, boring food. This assumption prevails throughout the Jewish community so there is not much demand for new offerings.

Fressen catering will inject new life into the kosher catering market, leveraging Chef Susan Cheflly’s culinary skills to develop creative new catering options.

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Susan’s advanced skills, industry insight, and a great market opportunity will allow Fressen Catering to reach profitability by month 11 and generate $395,000 in revenues for year three.

1.1 Objectives

The objectives for the first three years of operation include:

  • To create a service-based company whose primary goal is to exceed customer’s expectations.
  • To increase the number of client’s served by 20% per year through superior service.
  • To develop a sustainable start-up business.
  • To develop enough cash flow to pay all salaries as well as grow the business.

1.2 Mission

Fressen Catering’s mission is to provide the customer with the finest kosher catering.  We exist to attract and maintain customers.  When we adhere to this maxim, everything else will fall into place.  Our services will exceed the expectations of our customers.

1.3 Keys to Success

The key to success is to meet and exceed the customer’s needs in terms of quality of food and excellence of service.

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2. Company Summary


Fressen Catering, located in Philadelphia, PA will offer high-end kosher catering to the Philadelphia community.

Fressen Catering will serve parties of 25-300 people with high-end kosher foods that are currently only available in New York City. Fressen Catering will offer a large menu repertoire, from traditional favourites to creative inventions. All of the food and drink items served will be done under strict supervision of the Orthodox Rabbinic authority.

Fressen will rent space for the office and kitchen in an industrial area of Philadelphia. Renting in the industrial area will significantly lower the cost.

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Since the space will be used for food production it is not relevant for the store front to be aesthetically pleasing, or in a nice neighbourhood. Fressen Catering is forecasted to generate $395,000 in revenues for year three.

2.1 Start-up Summary

Fressen Catering will incur the following start-up costs:

  • Two commercial stoves with ovens.
  • Dishwasher.
  • Two sets of cookware.
  • Two sets of dishware.
  • One van with rolling racks built in (a rolling rack is a wheeled rolling cart system that is insulated for both hot and cold food).
  • Assorted serving trays and utensils, knives and cutting boards (two each).
  • Desk and chair.
  • Computer with printer, CD-RW, Microsoft Office, and QuickBooks Pro.
  • Copier and fax machine.

2.2 Company Ownership

Fressen Catering is a sole proprietorship owned by Susan Cheflly.

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3. Services


Fressen Catering will provide Philadelphia with high quality kosher catering.  The catering service will be for weddings, Bar/Bat Mitzvahs, and other assorted parties.

Kashrut is a specific, ritual/set of rules that applies to certain sects of Judaism in regards to food/drink preparation and consumption. A kitchen or catering service must be specially set up to provide kosher meals.

The explanation below regarding the prohibition of dairy and meat served together or made in the same kitchen by the same pots and utensils is the reason that Fressen Catering will require two sets of everything, including two stove top ranges and ovens.

The Hebrew word kosher means fit or proper as it relates to dietary (kosher) laws. It means that a given product is permitted and acceptable. The sources for the laws of kashruth are of Biblical origin and expounded in Rabbinic legislation.

These laws are codified in the Shulchan Aruch (Code of Jewish Law). Though a hygienic benefit has been attributed to the observance of kashruth, the ultimate purpose and rationale is simply to conform to the Divine Will as expressed in the Torah.

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Kosher and non-kosher meat, poultry and fish:

  • The Torah (Leviticus Chapter 11) lists the characteristics of permitted mammals and fish, and indicates the forbidden fowl. The only mammals permitted are those which chew their cud and are cloven hoofed.
  • The Torah does not list specific characteristics to distinguish permitted from forbidden birds. Instead, it details 24 forbidden species of fowl.
  • The Torah establishes two criteria in determining kosher fish. They must have fins and scales. All shellfish are prohibited. One, however, should not eat fish with meat.

Another element of Kosher meat consumption applies to the way in which the meat is slaughtered.  There are several different methods:

  • Shechita. Only a trained kosher slaughterer (shochet) certified by rabbinic authorities is qualified to slaughter an animal. The trachea and esophagus of the animal are severed with a special sharp, perfectly smooth blade causing instantaneous death with no pain to the animal.
  • Bedika. After the animal has been properly slaughtered, a trained inspector (bodek) inspects the internal organs for any physical abnormalities that may render the animal non-kosher (treif).
  • Glatt Kosher. Some Jewish communities or people only eat of an animal that has been found to be free of all adhesions. “Glatt” means smooth,  that the meat comes from an animal whose lungs have been found to be free of all adhesions. “Glatt Kosher” is used more broadly as a consumer phrase meaning kosher without question.
  • Koshering. The Torah forbids the eating of the blood of an animal. The two methods of extracting blood from meat are salting and broiling. Meat once ground cannot be made kosher, nor may meat be placed in hot water before it has been “koshered.”
  • Salting. The meat must first be soaked in salt.  After the salting, the meat must be thoroughly soaked and washed to remove all salt.
  • Broiling. Liver may only be koshered through broiling, because of the preponderance of blood in it. Both the liver and meat must first be thoroughly washed to remove all surface blood. They are then salted slightly on all sides. Then they are broiled on a perforated grate over an open fire, drawing out the internal blood.

One of the main tenets is the prohibition of meat and dairy in the kitchen together. The Torah forbids cooking meat and milk together in any form, eating such cooked products, or deriving benefit from them.

As a safeguard, the Rabbis extended this prohibition to disallow the eating of meat and dairy products at the same meal or preparing them on the same utensils. One must wait up to six hours after eating meat products before any dairy products may be eaten.

Fressen Catering will serve a wide variety of dishes.  This is offered for two reasons.

  1. The larger repertoire of menu items is a benefit to the customers.
  2. A large selection is required because meat and dairy cannot be mixed within the meal, therefore, in essence you have to have two different menus, one with dairy and one with meat.

Some of the menu offerings will be traditional kosher/Jewish meals such as beef brisket with potatoes and vegetables and a roasted chicken with rice and spinach. More inventive meals will also be offered to appeal to the higher end, more discriminating customers such as chicken pesto dishes or a red pepper coulis sauce, or maybe salmon with curry coulis and plum chutney.

Kosher catering is not cheap. The ingredients cost more, as well as the additional equipment that is needed to eliminate the mixing of dairy and meat products. Per person costs range from $45-110.

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4. Market Analysis Summary


The Philadelphia kosher catering market is an interesting one. There are several caters that offer services that are quite similar to each other in terms of price and menu options. For whatever reasons, there has been little demand by consumers to get caters to innovate their menu.

This is not too say that consumers would not welcome new kosher menu items, it is just that people have incorrectly made the assumption that kosher meals have to be boring. Fressen will occupy a niche in the kosher catering market that offers new, creative menu items, broadening people’s conception of kosher food.

This market consists of two target segments that are differentiated by household income.

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4.1 Market Segmentation

Fressen Catering has two distinct target populations:

  1. Middle class kosher clients. This group of people does not have huge amounts of disposable income, recognises that it is costly to sponsor a kosher dinner party, and is willing to incur the expenses, but will try to minimise them.
  2. Upper class kosher clients. This group has intertwined kosher values throughout their lives and is willing to spend whatever it takes to throw a high-end kosher dinner function.  Typically, this group is characterised by a wealthy one-income family where the male works and the female does not.  The female of the household typically thoroughly enjoys the planning of these events.

4.2 Target Market Segment Strategy

The target market segment strategy will not be significantly different to address the two different groups.

Both groups, regardless of income typically belong to the same group of religious congregations. Therefore, to reach the different groups does not require a distinctly different strategy.

What differentiation it will require is different menu offerings needed to satisfy the different groups. The upper-end menu items are cost prohibitive for the middle class target segment.

4.3 Service Business Analysis

The kosher catering business in Philadelphia is fairly unique.  At the low- to mid-price point of the cost spectrum, there are four other kosher caters.

These caterers tend to serve the part of the market that must have kosher food served at an occasion due to religious beliefs, but struggle to able to afford the cost variance between standard and kosher catering. All four of these caters have fairly standard menu offerings.

There is a fifth caterer that also serves the lower end of the market (defined as middle class) but serves the high end of the market as well.  Although there is a large wealthy population in Philadelphia that follows the laws of kashrut, they have been underserved.

4.3.1 Competition and Buying Patterns

As stated in the previous section, there are four other kosher caterers that serve the low to middle end of the market.  These caterers compete to some degree on cost (due to budget constraints of some clients), but more so on service.  The quality and the serving of the food are the main areas of service that the caterers compete on.

There is one high-end caterer who will compete with Fressen.  This caterer, while serving the upper-end market, does not provide its clients with upper-end service. This company is not a strong competitor because of their overpriced service offerings relative to the service provided, and its business has been declining over the last few years.

Lastly, one competitor for the high-end market is kosher caterers from New York City.  When cost is no object, there are many people that are willing to pay the additional cost of bringing in the caterer from NYC.

The buying habits of consumers of kosher catering is to some degree price sensitive at the middle end of the market. Between two different service providers, the middle class group will choose the service provider with the best services.

However, cost is certainly an issue and some of the caterers are not even options because they are priced out of this consumer groups price range.

Related: Competitor Analysis Example

The buying habits for the high end of the market is price insensitive. Choices are made by menu offerings, reputation, and attention to service.

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Food and Farming

Bakery Business Plan Sample

Get baking with this bakery sample business plan.





Thinking of starting your own bakery? Are you the next great baker? Make sure you have a detailed business plan to start with. Use this example to compile your own.

1. Executive Summary


Jolly’s Java and Bakery (JJB) is a start-up coffee and bakery retail establishment located in southwest Washington. J

JB expects to catch the interest of a regular loyal customer base with its broad variety of coffee and pastry products. The company plans to build a strong market position in the town, due to the partners’ industry experience and mild competitive climate in the area.

JJB aims to offer its products at a competitive price to meet the demand of the middle-to higher-income local market area residents and tourists.

The Company

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

Mr. Austin Patterson has extensive experience in sales, marketing, and management, and was vice president of marketing with both Jansonne & Jansonne and Burper Foods.

Download: Free Business Plan Template Download

Mr. David Fields brings experience in the area of finance and administration, including a stint as chief financial officer with both Flaxfield Roasters and the national coffee store chain, BuzzCups.

The company intends to hire two full-time pastry bakers and six part-time baristas to handle customer service and day to day operations.

Products and Services

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.

The bakery provides freshly prepared bakery and pastry products at all times during business operations. Six to eight moderate batches of bakery and pastry products are prepared during the day to assure fresh baked goods are always available.

The Market

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.

1. 1. Mission

JJB aims to offer high quality coffee, espresso, and pastry products at a competitive price to meet the demand of the middle- to higher-income local market area residents and tourists.

1.2. Keys to Success

Keys to success for JJB will include:

  • Providing the highest quality product with personal customer service.
  • Competitive pricing.

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2. Company Summary


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.

A ten-year Small Business Administration (SBA) loan will cover the rest of the required financing. The company plans to build a strong market position in the town, due to the partners’ industry experience and mild competitive climate in the area.

2.1. Company Ownership

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

2.2. Start-up Summary

JJB is a start-up company. Financing will come from the partners’ capital and a ten-year SBA loan. The following chart and table illustrate the company’s projected initial start-up costs.

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3. Products


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.

The bakery provides freshly prepared bakery and pastry products at all times during business operations. Six to eight moderate batches of bakery and pastry products are prepared during the day to assure fresh baked goods are always available.

4. Market Analysis Summary


JJB’s focus is on meeting the demand of a regular local resident customer base, as well as a significant level of tourist traffic from nearby highways.

4.1 Market Segmentation

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 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.

4.1.1 Market Analysis

The chart and table below outline the total market potential of the above described customer segments.

Related: Conducting a Business Plan Market Analysis

4.2 Target Market Segment Strategy

The dominant target market for JJB is a regular stream of local residents. Personal and expedient customer service at a competitive price is key to maintaining the local market share of this target market.

4.2.1 Market Needs

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.

Related: Target Market Worksheet

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.

4.3 Service Business Analysis

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.

Coffee drinkers in the Pacific Northwest are finicky about the quality of beverages offered at the numerous coffee bars across the region.

Despite low competition in the immediate area, JJB will position itself as a place where customers can enjoy a cup of delicious coffee with a fresh pastry in a relaxing environment.

4.3.1 Competition and Buying Patterns

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.

Related: Doppio Zero: Paul Christie & Miki Milovanovic

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.

During fiscal year 2000, 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. Technologically savvy competitors make fresh coffee and coffee-related products conveniently available via mail order and online.

Additionally, mail order catalogs offering coffees, certain food items, and select coffee-making equipment and accessories, have been made available by a few larger competitors. Websites offering online stores that allow customers to browse for and purchase coffee, gifts, and other items via the Internet have become more commonplace as well.

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Food and Farming

Specialty Baker Sample Business Plan

Starting up a specialty bakery requires a detailed business plan similar to this sample.




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Speciality Baker Business Plan

Executive Summary

Morningstar Bakery is a new organic bakery specializing in gluten, wheat and dairy free products. Within the last three years there has been significant increases in demand for these bakery products. This can be explained to a large degree by the fact that up until recently Americans have had food allergies that have been undiagnosed. It has been only in the last few years that medical doctors have begun to diagnosis food allergies correctly. What was once an unknown problem that affected so many people with no recourse has become a manageable ailment that is easily dealt with through modification of diets. This is very positive for both those people that are affected as well as bakeries such as Morningstar that specialize in these products.

The Products

Morningstar offers a wide range of exciting products. The first group is spelt breads, muffins, and pastries. Spelt is used as there are far fewer people that are allergic to this grain. Yeast allergies are also common and Morningstar offers a menu of yeast free breads. Dairy free muffins and pastries are offered for vegans. Lastly, egg free breads, muffins, and pastries are offered.


Morningstar will focus on three distinct customer segments. The first group is the Allergy group. This segment is growing at 15% a year with 32,000 potential customers. The second niche is the Doctor group. This segment is also growing at 15% with 14,200 potential people. The last group is the Dieters group. This segment is typically making modifications to their diet based on their desire to lose weight. This niche also is growing at 15% with 48,000 possible customers.

Management Team

Recognizing the importance of human capital, Morningstar has assembled a strong management team. The team is led by Donna Sharp. Donna comes to Morningstar with 10 years of baking experience. In addition to her industry specific experience, Donna has had 2 years of management experience. Donovan Bailey brings financial skills to Morningstar after a 15 year CPA career. Tara Juniper-Reid will lead the marketing efforts having participated in her own PR firm. Lastly, Lucy Hamilton will be on the team as an assistant baker with over five years of experience.

Morningstar is an exciting opportunity that combines, fresh baked goods with spelt, yeast free, dairy free, and egg free products, addressing the recent need for these new products. Demand for these products is expected to grow exponentially as medical doctors become more and more aware of food allergies Americans are afflicted with. Profitability is forecasted to occur by month three. Through a combination of a strong management team, a solid business model, and exciting, market demanded products will allow Morningstar to quickly gain market penetration and cash richness.

1.1 Objectives

  • To establish a working storefront for Morningstar bakery.
  • To develop the strong presence in the community needed to support sales goals.
  • To develop a full menu by the end of the second quarter.

1.2 Mission

Morningstar Bakery aims to be a cornerstone in the community creating a neighborhood atmosphere where customers feel comfortable and become instant regulars. We are sensitive to the often over-looked population of allergy sufferers and cater to their needs for healthy, delicious baked goods. We seek fair and responsible profit, enough to keep the company financially healthy for the long term and to fairly compensate owners and investors for their money and risk.

Company Summary

Morningstar Bakery will be located in downtown [Name omitted] in a historical building. This downtown district is a very popular destination because of the historical architecture for weekenders and tourists. It is also a prime location for all the employees of the surrounding downtown businesses. The bakery sells non-wheat and other health specific breads, sweets and pastries to the surrounding community every Tuesday through Sunday.

2.1 Company Ownership

Currently Morningstar Bakery is a sole proprietorship owned by Donna Sharp. Eventually, as the company becomes established, Morningstar Bakery will apply to be incorporated.

2.2 Start-up Summary

The primary expense to establish the Morningstar Bakery is the mortgage loan estimated at $175,000 to purchase the vacant space on [Name omitted] street. The building was previously used as a bakery and we plan to buy the used equipment along with the space. This cost is also calculated into the loan estimate. Donna Sharp intends to invest $7,500 of her savings to cover the other cost of start-up.

These costs include:

  • Advertising brochures.
  • Bakery ingredients.
  • Insurance.
  • Bakery accessories, i.e. paper bags, cartons, etc.


Morningstar Bakery provides non-gluten baked goods and pastries to diet-conscious and wheat-allergic consumers. Special considerations are made for all common food allergies such as dairy, yeast, wheat, and eggs.

Example of goods:

Spelt breads, muffins and pastries
Spelt flour is the most common wheat-alternative flour as it has the same characteristics as wheat which provides similar taste, consistency and behaviors creating goods that are just as good as any wheat baked good.

Yeast-free breads
Many people have an allergy to yeast, or have been warned by their doctors not to eat it. We provide a line of yeast-free breads.

Dairy-free muffins and pastries
Most breads do not require any dairy products, so they are not a consideration. Muffins and pastries most often require butter. To avoid this, we use a soy substitute.

Egg-free breads, muffins and pastries
Eggs are most common in muffins and pastries. Applesauce can be used as a substitute as it provides the same amount of moisture that is required.

Market Analysis Summary

Our target market includes people who are health conscious and/or have common food allergies. This is a niche market since most bakeries do not cater to these needs with the exception of high-fiber diets.

4.1 Market Segmentation

Our target market consists of three groups:

The Allergy Group
According to Health Magazine, one out of five people suffer from a common food allergy, however many bakeries do not cater to their needs.

The Doctor Diet Group
For health reasons, many people are warned off certain foods by their doctors because of high cholesterol and blood pressure. Currently the main killer in the U.S. is heart disease according the American Heart Association. Many Americans aged 50+ are going on special diets to prevent heart disease.

The Diet Craze Group
According to Self Magazine, the year 2000 saw 20 new diet fads that discouraged certain foods such as wheat and dairy. The best selling book on the New York Time list for health was the “Blood Type Diet” which encourages readers to eat only non-gluten flours such as spelt, and to avoid dairy. While this target market is quite large, it is ever fluctuating since most people who diet yo-yo between different diets (Self Magazine September 2000).

4.2 Target Market Segment Strategy

In our target market, we will mainly focus on the “allergy group” since they are the most prevalent and steady of customers. We expect that the “doctor diet group” and the ‘”diet craze” group will make up a smaller portion of our customers. We have not listed “regular customers” as a target group since the customers who do not fit into any of our groups are too varied to segment. We are specifically filling the needs of the “allergy group” so we expect the most business from this group.

4.3 Industry Analysis

Morningstar bakery competes in the Food Services Industry. In addition to competing with other organic and non-wheat bakeries, it competes with all restaurants, delis, bakeries and supermarkets for a share of its customers’s food dollar. Morningstar is most concerned with competitors who differentiate their products and services with a healthy, organic focus. Because this group is so large, Morningstar has chosen to limit its analysis to other gluten-free bakeries.

4.3.1 Competition and Buying Patterns

Currently there are two bakeries in town that provide non-wheat goods.

Great Harvest Bread Company

Strengths: Makes spelt bread, muffins and cookies every Monday, Wednesday and Friday. Well-established bakery in town. Sells breads in local grocery stores.

Weaknesses: Does not provide a wide selection of non-wheat goods. Furthermore the texture and flavor of their spelt goods is very dense and flavorless. They use whole spelt bread which makes a denser, crumby consistency bread. We use white spelt in our spelt breads and other goods which has a texture and flavor similar to wheat.

The Sweet Life Patisserie

Strengths: Makes spelt bread, muffins and brownies every day. Will make custom-ordered non-gluten cakes.

Weaknesses: Does not produce a wide selection or large quantity of non-wheat goods. Their main focus is wheat goods.

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