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Home bakery business plan template

A home bakery plan is small in money but has to show you can sell legally from your kitchen, so this template opens with the cottage food steps and a few thousand dollars of start-up costs. The example is a made-up home baker in Texas selling cakes, cookies and bread by pre-order and at a Saturday farmers' market: a second oven and stand mixer, labels and boxes, a market tent, a part-time helper, and a forecast of six orders a day at a $35 average. Put in your own state's rules and numbers, and the template shows your monthly profit and break-even as a PDF.

Part of the free Restaurant business plan template.

Last updated 20 October 2026

  • Free
  • No sign-up to use it
  • Works on your phone

Write your plan

Fill in each section. The numbers add up as you type, and the plan stays saved on this device.

This is an example plan for a made-up business. Replace every section with your own, or .
1Cover
2Summary

Write this last: what you will open, where, and what you are asking for.

3The concept

What you serve, how, and why people will choose you.

4The menu

How big it is, what it changes with, drinks, set menus.

$
$
$
$
5Location

Where it is, the size, who is around it, and why it suits you.

6Target customers

Who they are, when they come, and what they want.

7Competitors
8Staffing
RolePeopleCost each a month
$

Cost each a month = pay plus anything you pay on top, such as employer taxes or pension.

Staff a month$800
9Start-up costs
$
$
$
$
$
$
$
$
$
Total start-up costs$8,950
Still to findLoan or investment$0
10Monthly running costs
$
$
$
$
$
$
Staff (from step 8)$800
Running costs a month$1,580
11Sales forecast and break-even
$
% of sales

Use your own numbers, without sales tax. The food and drink cost is what the ingredients cost as a share of the price; the recipe cost calculator works it out per dish.

Sales a month$5,040
Food and drink cost$1,764
Running costs$1,580
Profit a month$1,696
Orders a day to break even3
Months to earn back start-up costs6
Example plan
Business plan
Maple Lane Home Bakery
Hannah Brooks, owner and baker
Round Rock, Texas
Summary
Maple Lane will be a home bakery selling celebration cakes, cookies and sourdough from my own kitchen under the Texas cottage food law. Customers pre-order online and collect, I deliver locally myself, and I sell at a Saturday farmers' market. I am paying for the start-up costs from savings; this plan sets out whether it can grow into a shop.
Figures are the owner's own estimates, without sales tax.Page 1 of 4
Page 1 of 4
Maple Lane Home Bakery · Business plan
The concept
Celebration cakes and decorated cookies made to order, and a weekly sourdough bake for regulars. Everything is labelled with ingredients, allergens and the cottage food statement, and sold to people in person or delivered by me.
Type of businessHome bakery under cottage food rules, pre-orders and a market
The menu
Cakes in three sizes and six flavours, decorated cookie boxes, cupcakes by the dozen and two sourdough loaves on Fridays. Orders close two days before collection.
Sample dishes
Price
Celebration cake, 8 inch
$65
Decorated cookies, box of 12
$36
Cupcakes, dozen
$30
Sourdough loaf
$10
Location
My home kitchen, with a second oven and a separate shelf and fridge space for the business. Collection from the porch by appointment, delivery within 10 miles, and a stall at the Saturday farmers' market.
Target customers
Parents ordering birthday cakes. Neighbors and coworkers ordering cookie boxes for holidays and showers. Regulars at the market who pre-order bread for the week.
Figures are the owner's own estimates, without sales tax.Page 2 of 4
Maple Lane Home Bakery · Business plan
Competitors
Supermarket bakery They do well: Cheap, cakes on the shelf How we are different: Custom designs, baked to order Other home bakers on social media They do well: Beautiful photos, low prices How we are different: Clear prices, order online, labelled Bakery shop downtown They do well: Walk in and buy How we are different: Personal service, delivered locally
Staffing
Role
People
Each a month
A month
Part-time helper
1
$800
$800
Staff a month
$800
Start-up costs
Item
Cost
Second oven and stand mixer
$3,500
Pans, tools and cake boards
$1,200
Food handler course and registration
$150
Label printer, boxes and bags
$600
Photos, logo and order page
$500
First ingredients
$600
Market tent, table and signs
$400
Money for the first three months
$2,000
Total start-up costs
$8,950
Our own money$8,950
Still to find (loan or investment)$0
Figures are the owner's own estimates, without sales tax.Page 3 of 4
Maple Lane Home Bakery · Business plan
Monthly running costs
Item
A month
Packaging and labels
$250
Farmers' market stall fee
$200
Fuel for deliveries
$120
Card fees and software
$80
Extra gas and electricity
$80
Marketing
$50
Staff (see Staffing)
$800
Running costs a month
$1,580
Sales forecast
Orders a day6
Average order$35
Days open a month24
Sales a month$5,040
Food and drink cost (35% of sales)$1,764
Running costs a month$1,580
Profit a month$1,696
Sales a year$60,480
Profit a year$20,352
Sales a month = customers a day × average spend × days open. Profit is before tax and before the owner's own pay, unless it is in the running costs.
Break-even
Sales a month to cover all costs$2,431
Orders a day to break even3
Months to earn back the start-up costs6
Break-even sales = running costs ÷ (1 − food and drink cost %). Orders a day = break-even sales ÷ (average order × days open).
Figures are the owner's own estimates, without sales tax.Page 4 of 4

Check the costs behind each dish

The free recipe cost calculator works out what each portion costs, so your food cost and prices in the plan are your own.

Cost a recipe

How it works

  1. 1

    Read the example

    A plan for a made-up business of this kind is filled in, so you can see what goes in each section. Start a blank plan when you're ready.

  2. 2

    Fill in your sections

    Write about your idea, menu, site and customers. Add your staff, start-up costs and monthly costs; totals, profit and break-even add up as you type.

  3. 3

    Download the PDF

    Check each page in the preview and download one tidy A4 PDF with a cover. Your plan stays saved in this browser to come back to.

What to get right in a home bakery plan

  1. 1

    Write your state's cottage food rules into the plan

    Each state sets its own rules. In Texas, a cottage food operation may earn up to $150,000 a year in gross income, adjusted for inflation, and needs an accredited food handler course. Note your state's limit and steps in the location section.

  2. 2

    Label everything you hand over

    Texas requires a statement on the label that the product was made in a private home that is not subject to government licensing or inspection, and lets you register to print a number instead of your home address. Budget for a label printer from day one.

  3. 3

    Check how you may sell online

    Rules on online sales and delivery differ by state. Texas allows online orders when you, an employee or a household member deliver the food in person. Write down how customers order, pay and collect so the plan matches what your state permits.

Questions owners ask

Answered, plainly.

Far less than a shop, since there is no rent or fit-out. In the example, the start-up costs total $8,950, mostly a second oven, tools and packaging, plus three months of running money. List your own in the restaurant startup cost calculator.

It depends on your state. Many states let you sell some baked goods from home under a cottage food law, with limits on what, where and how much you sell. Check your state health department's page before you take your first order.

Cost the ingredients for each size from your recipes, add the box, board and your time, then your margin. The cake price calculator builds a price list by size, and the recipe cost calculator for home bakers costs each recipe.

Most take pre-orders with a collection date, so they bake only what is sold. An ordering page with your cakes, sizes and a pickup time lets customers order and pay without messages back and forth.

Checked against

  • Texas DSHS, Cottage Food Production Operations (read 20 October 2026)
  • Texas Legislature, SB 541 (89th, enrolled): $150,000 cap from 1 September 2025 (read 20 October 2026)

Also made for

  • Bakery business plan template
  • Recipe cost calculator for home bakers
  • Cafe business plan template
  • Restaurant business plan template

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