Do you need help starting a cake shop? If YES, here is a sample cake Business Plan.

If you love making beautiful cakes, why not consider generating some income with your skills? We are interested in helping you achieve this. It is unlikely that you have stumbled onto this article.

Do you love cake baking and would love to start a cake baking business? Do you know that this type of bakery business does not require much startup capital, resources, and tools?

To succeed in the cake baking business involves lots of creativity, time, and hard work.


Good business skill is also needed to manage a cake business as you will be dealing with people and need to be customer friendly while also making a profit. It is your experience with past customers that will want to make them refer you to their friends and family members.

Here is a sample business plan for starting a cake-making company.

  • You Need a Cake Business Plan

Don’t think because you may be starting small and the cake business does not involve too many resources so you won’t be needing a business plan. No business became successful without a business plan whether big or small.

You will need to draw out a bakery business plan for your cake business. This is the first thing you need to do when starting a cake business. Your business plan doesn’t need to be dictionary-size, a 2-3 page of how you wish to operate the business would do.

It must contain everything from the startup cost, operational expenses. to how you intend to market the business etc.

  • Create A Website/Fliers

To attract more customers to your cake business, you need to create a colorful website containing cake design pictures with prices for your cake business. Ensure you create a menu on your website that includes all categories of cakes and your pricing, include email address and phone number, live instruction for placing orders at the bottom.

You also will need a business card and fliers for your cake business. It also needs to be as colorful as your website.

Include your website URL to your business card and fliers as well.

Use them to promote your cake business to potential customers and let them know about your services and the benefits of them patronizing your services. Partner with event planners as they can also be a source of customers for your cake business. Be ready to give them some cash for any referrer though.

  • Secure Permits and Regulations

Any business that involves the stomach is regarded as a health business. So, the business needs to secure permits from the ministry of health or any regulatory body assigned for this kind of business in your city or state.

Use a memorable and creative cake shop name that will attract the attention of your target market for registration, apply for any necessary licenses, and make sure you look into all other legalities such as insurance, a business bank account, safety, and health requirement.

  • Have a Good Location

For a business to be successful, you need a good strategic location, an area that attracts pedestrians and should be easily located by your client.

Rent a store that is spacious because you need a lot of space to bake and also decorate baby shower cake, cupcakes for friends and family, weddings, birthdays, etc.

Think about the number of orders you can execute successfully in your workspace; your client should be able to move around freely too.

  • Search for Suppliers

Another thing you need to secure before starting a cake business is suppliers for your cake ingredients.

Search for supplies, ingredients, equipment to get your cake business started. Buy ingredients in large quantities if you have a large amount of supply or order.

It is not good to give excuses to your customers that you are short of ingredients for cake baking. It kills the business without you knowing.

  • You May Need Additional Help

As your cake business grows, you may need to hire an additional hand to help in either baking the cake or decoration the cake. The helper will also help with other things like delivery of the cake to customers if needed.

  • Stock Up with Equipment and Be Organized

You need to ensure your kitchen is well stocked up with equipment and with all the baking and decorating tools.

This will make your work easier, faster and finer with little or no stress, there should be ventilation and enough space for the equipment, ensure you keep a good diary system, set up a bookkeeping system on paper or software, and also a general admin/filling system for invoices and client record.

  • Have Good Resources

Starting a cake business is not cheap but u can start small, you need to have resources to start and stay in business, building a successful business is a lot like building a beautiful cake, you need to consider how much you will be able to make a profit in a week so that u can cover up expenses otherwise you will run ragged in no time with little or nothing to show for it.


But if you have, and fall under this category, this cake business plan sample may be what you have been waiting for.

Through this sample, we guide you through the process of creating a good plan for your cake business.
There is a misconception among a few that a plan is only used for sourcing financing for businesses.

In reality, your plan is your roadmap towards arriving at your destination. In other words, it helps you reach your goals much easier. In order not to dwell too much on this, let’s get to business!

Executive Summary

Mabel Cakes is a unique bakery business that specializes in making different types of cakes. We make occasion-specific products as well as customized cakes for our clients.

Whether it be an anniversary, wedding, remembrance, prom, graduation, or birthday ceremonies, we have our customers covered. We are a new business that will commence operations from home.

The founder Mabel Mathews is a licensed caterer that will start this cake business from her kitchen. Located in Trenton, New Jersey, our humble beginnings do not in any way limit the vision we have for our business.

We have set out definite steps to be taken that will eventually lead to an expansion. This will require us to hire a new outlet eventually.

  • Products and Services

Mabel Cakes will bake all types of cakes for a variety of functions. We also consider clients having health challenges.

All of these are factored into the products we offer. In addition to these, we will be providing training services for people who will want to learn some cake baking skills from scratch as well as those whose desire is to update their baking knowledge.

There are lots of innovations in cake making and designs. We will constantly be in the loop with every new development in the industry.

  • Vision Statement

Although we are a small cake business, this does not limit our vision for growth. We will be moving out of our current location within a year of starting a business.

We will begin franchising our cake business in 3 years. This is a growth strategy we will adopt. Before then we intend to build a reputable brand through the provision of excellent products.

  • Mission Statement

Client satisfaction is of the utmost importance to our existence.

We hold the philosophy that the client is king. The key to our success is to build our business around the customer by understanding what cake designs and will excite our customers and what will not.

We also understand that people have differences in perception of what constitutes an excellent product and what doesn’t.

Our mission is to integrate all of these into providing the best services and products.

  • Financing

To launch our cake business, the financing needed has been realized through savings to the tune of $200,000.00.

This has been specifically kept aside for this purpose. Within 2 years, we will be applying for a loan of$850,000.00 for the expansion of our services.

This will be used for the purchase of equipment and increasing our production capacity through effective marketing.

  • SWOT Analysis

This analysis of our operations is essential to how much success we achieve. An independent business consulting service was paid to carry out this evaluation. The following are findings made;

  • Strength

We are driven by an understanding of the industry to provide quality cake products to our clients. There has been an increased preference for exotic and appealing cake designs.

The future of the cake business belongs to the most creative entrepreneurs. We possess a healthy dose of these characteristics.

  • Weakness

It will take a longer period to get to our ideal levels where we will be considered for major cake-making contracts. Although this seems like a long way off, we are committed to attaining this goal.

  • Opportunity

We have the opportunity to expand our market through the process of satisfying our available market. In other words, by building a cake brand known for excellence, bigger opportunities will unfold to us.

  • Threat

A threat we face is an over-saturation of cake makers. In such a situation, there will be more supply than demand which will affect profitability. A good thing is this seeming threat seems a long way off.

  • Sales Projection

As a cake business, understanding our sales potential enables us to redouble our efforts towards achieving enhanced profits.

As a way to measure our profit potential, we have done a 3-year sales projection that has turned out positive as shown below;

  • First Financial Year $90,000.00
  • Second Financial Year $210,000.00
  • Third Financial Year $450,000.00


  • Competitive Advantage

We are situated in a strategic location where their demand for cakes is high.

This is due to a concentration of catering, rental, and events planning businesses. We have even gone the extra mile by building strategic partnerships with these businesses to promote our services.

  • Sales and Marketing Strategy

Marketing is important to how much success we achieve. We will incorporate the most effective forms of marketing that fit our needs.

These will include word of mouth, adverts in newspapers and magazines, and the use of social media marketing.

  • Target Market

Our target markets will consist of events planners, families, colleges, and religious organizations.

There has been a steady rise in demand for care services by these segments of society. We will not restrict ourselves to these alone.

We will be happy to add even more possible clients as well.

By now you should have gained a better understanding of things needed in a cake business plan.

This cake business plan sample has attempted to get straight to the point by focusing on some of the most overlooked areas of a plan. You should use this sample to carefully write your plan without rushing the process.

Leave a Reply

Your email address will not be published. Required fields are marked *