A bakery as a business is an opportunity to realize your wildest ideas, so the question arises, how to open your own production, is it profitable or not to bake and sell bread on your own?

The production of bread and bakery products is a process that will always find its consumer. How many famous sayings are dedicated to this hearty and tasty product! People living in the former Soviet Union eat absolutely everything with bread - it’s tastier and more satisfying.

Fresh bread in a big city today is quite difficult to find. Most people are accustomed to purchasing this product in supermarkets, where its quality does not always meet the necessary requirements. It is not worth talking about the variety of pastries in such stores - you are unlikely to find a fresh, still warm bun that you can please your family with.

A bakery can be found in almost every major city and even a small village. Large enterprises cover a vast territory, therefore it is much more difficult for them to comply with all the preferences of their consumers - here there is an emphasis on mass production and providing all categories of citizens with bread that is in demand.

At the same time, the profitability is obvious - private production and coverage of a smaller number of people will help satisfy the needs of almost everyone, while giving the consumer the right to choose from a sufficiently large assortment. Your own bakery can be a real gift for both a small village and a large city, where people have long missed fresh pastries.

Relevance and prospects

A bakery is a multifaceted process that requires detailed market research and good advertising. If the quality of your product is high, and the location of the store is convenient, the consumer himself will make a good advertisement - information will be passed from mouth to mouth, and a casual passer-by will not be able to pass by.

Mini-manufacturing is profitable because it is much easier for him to adapt to the immediate desires of customers and rebuild his equipment. Bread baking can be just the beginning of a big business - the store doesn't have to be limited to just this product.

The key to successful trading will be the assortment. Every person wants to pamper themselves not only with simple bread, suitable for any dish, but also with original pastries, dietary products and confectionery. In this case, the amount of baked product will depend on demand.

The bread business will be successful if you choose the right premises not only for cooking, but also for the sale of the product, provide it with the necessary equipment and raw materials, and, of course, find a baker who can be considered a master of his craft.

A creative approach does not hurt - experiment, add something of your own to production, and very soon your brand will become recognizable, and the production of products will reach a new level.

As a sample, you can download for free.

Starting capital and documents

The bread baking business requires an initial investment - you will have to fork out for renting a room, purchasing equipment, and salaries of employees. All costs will depend on the scale of production you are planning. For a small bakery, three hundred thousand rubles can often be enough, but with increased volumes, the amount can grow several times.

At the initial stage, it is important to understand the calculations regarding the opening of production. A home business will require a much smaller amount than a full-fledged bakery. Costs for the year will consist of the following categories:

You can register as a sole proprietor and open your own business on simplified terms, or you can expand your opportunities and create a limited liability company. Planning and spending are not much different, but each type has its own characteristics:

1. An individual entrepreneur is legally responsible for the activities of the enterprise, and in the event of high costs and low profitability, the baking business will suffer serious financial losses. If the business is profitable, the project justifies itself.
2. Registration of a person as an individual entrepreneur takes place without the intervention of lawyers in a short time, and a limited liability company involves the services of a lawyer.
3. as an individual entrepreneur is much cheaper at the stage of registration and registration of a legal entity.
4. It is much easier to bake yeast-free bread and any other products and sell it with registration as an LLC. So you can easily change the field of activity, practically without limiting your capabilities.
5. Bakery products produced under the registration of an LLC will receive greater interest from partners.

So it is much easier for a businessman to deal with registration and, if desired, liquidate a business.

The documents

It is important to collect the following papers:

• Documents confirming the examination and establishing compliance with sanitary standards.
• Certificate of Conformity allowing trade in bakery products of own production.
• Documents received from the fire inspectorate on the fire safety of premises.
• Permits for the supply and sale of raw materials, products, bread machines, large production equipment.

It is necessary to collect a package of documents immediately after paying the rent, as this will reduce the time before the opening of the project and allow you to realize your ideas as soon as possible.

Choice of direction

In order to determine the type of activity and correctly calculate your strength, you must first take care of the direction in which your company will operate.

Today, a mini-bakery is the best option, if only because large enterprises have long occupied the niche of such trade. If there are small costs, you can take the business to a larger level, but for this you need to develop a project in detail.

If there is a large-scale production of a product in the city, and your plans include baking an analogue, it is unlikely that you will quickly make a good profit and be able to steal a client. In this case, you will have to reduce the cost of the project, reduce the cost of goods and wages for employees.

One of the popular destinations is a mini-bakery that makes unique products that are very different from those produced by a large brand. For example, pastries do not have to be sweet - many use cheese, garlic, and even meat products.

The best option would be to combine a bakery with a cafe or a fast food restaurant, where customers can not only buy fresh buns, but also enjoy them in a cozy atmosphere. At the same time, the menu should include a full-fledged lunch for all categories of consumers, including young children. Do not forget about dietary products.

room

Starting even a mini-bakery from scratch is quite difficult, since it is from scratch that you will have to do absolutely everything - look for a room that is suitable in size, make repairs in it, carry out the necessary communications and connect equipment.

It is unprofitable to arrange a small production in a large room - if you have a lot of unused space, you will simply spend extra money on rent. The room must be suitable in size and type.

At the same time, it is worth thinking about domestic places where employees can spend personal time at lunch, as well as a locker room and a bathroom in which all communications for washing hands and cleaning hair will be carried out.

From a small room, you can make a sale through a small window or mini-hallway - this way you save space, but you can perform all the functions of the organization, comfortably serving customers. The project with small ovens does not require a lot of space, but bread from the Russian oven and bread from the tandoor require separate rooms for the production of products.

Quality equipment, just like a good room, is the key to the success of your organization. You can buy it gradually as needed and possible, or you can buy everything at once. The project of a small bakery involves the following positions:

Position name		approximate cost
1.	Bake	800 000 rubles
2.	dough mixer	280 000 rubles
3.	Flour sifter	20 000 rubles
4.	pastry table	4000 rubles
5.	electric mixer	4000 rubles
6.	Dough proofing equipment	55 000 rubles
7.	Dough rolling machine	40 000 rubles
8.	Hood	20 000 rubles
9.	Blender	3000 rubles
10.	electric stove	20 000 rubles
Total:		1246000 rubles

It is not recommended to purchase low-quality equipment, as it endangers not only the product, but also fire safety. In addition to the above, you will have to purchase additional furniture, showcases and cash registers for the sale of products.

Video: how to open a bakery - step by step instructions.

Staff

The employees of the bakery and the adjacent store are people who will provide the consumer with a tasty and high-quality product, as well as provide polite service at the time of purchase. At the same time, each employee should know his job well so that there are no misunderstandings in the future. Pay attention to education, work experience and the presence of a health book.

Note! Specialists are not allowed to work without a valid sanitary book.

Among the key employees that should be in every bakery, the following positions should be present:

1. Production technologist.
2. Cleaning woman.
3. Accountant.
4. Bakers.
5. Loader.
6. Packer (optional).
7. Driver.
8. Salesman.

The payback directly depends on both the production technology and the type of product manufactured by a particular enterprise. At the same time, you should not save on advertising and equipment - these are the factors that guarantee you a profit in a short time. Payback calculation must be done in advance in order not to lose money, for this it is recommended to hire a qualified specialist.

And the most important factor- high-quality elite bread is more and more in demand.

Features of creating a mini-bakery

A mini-bakery is a limited company specializing in baking and selling bakery products. Although it is difficult to give an exact definition of the "mini-bakery" format in terms of production volume, since it includes production facilities that produce up to 10 tons of bread per day and by activity: it can be a small confectionery shop, a small enterprise for baking bakery products or the production of frozen products.

In any case, the relevance of this business is high - this type of product is in stable demand: everyone needs bread and always. But demand is an abstract concept. Baking even the most unique and delicious bread itself is only half the battle. The main thing is to find your buyer and present your products to him. But this type of business will not bring large incomes: according to economists, the average profitability is 10%. The profitability of my mini-bakery is slightly higher due to the factors described below.

Definition of prospects

If, in general, the prospects for the bakery industry are high, it is necessary to weigh whether they exist in the future, theoretically conceived so far, mini-bakery. That is, it is necessary to build an enterprise strategy at the initial level. Starting to engage in this type of business, a person, as a rule, rents one room where both the workshop and the point of sale are located. We will consider this provision as a basic one, and theoretically build the entire sequence of mandatory actions.

Legislative norms and acts

Do you need to start with the registration of an enterprise - an individual entrepreneur or an LLC? If the future mini-bakery is planned to have several owners, then, of course, it is necessary to open an LLC. If there is only one owner, then it is quite enough to issue an IP. Then you need to open a bank account, register with the tax authority and register cash registers. To implement a mini-bakery, the following OKVED codes are enough:

• 15.81 - "Production of bread and flour products of non-durable storage";
• 15.82 - "Production of dry bakery products and flour confectionery products with long shelf life";
• 52.62 - "Retail trade in stalls and markets";
• 52.63 - "Other retail sale outside stores".

But if even a small area with tables is supposed, then you need to add:

• 55.30 - "Activity of restaurants and cafes".

But in general, counting on a certain development of the business, it is worth considering the inclusion of additional OKVED codes, which will reflect the possibility of activities in the intended areas. In any case, the main activity of the enterprise should be production.

The taxation system is easier and more productive to choose the simplified tax system. Moreover, in the "income" column, that is, 6% of deductions from them, because if at the beginning of the mini-bakery's operation the expenses are at least somewhat comparable with income, then subsequently the calculations in the "income minus expenses" column will become unprofitable. This is quite possible, since it is unlikely that at first the staff of one mini-bakery will exceed 100 people, and the income will be more than 45 million per year.

Required permits, agreements, certificates and licenses

These documents are necessary for any enterprise trading or producing food products. There are a lot of them, but they must be drawn up in accordance with the standards and in order to avoid problems with various structures:

1. Permission from the city authorities to carry out this type of business on their territory;
2. Draw up a project of the premises and coordinate it with the Sanitary and Epidemiological Service. In the same place they receive without fail a "Sanitary and epidemiological conclusion for production";
3. Next, you should conduct trial baking and learn the "Sanitary and epidemiological conclusion for products";
4. The next step is to obtain a certificate of conformity from the Federal Agency for Technical Regulation and Metrology;
5. Permission from the fire inspectorate;
6. Permission from the environmental inspectorate.

• contracts for preventive measures (disinfection, deratization, disinsection);
• contracts for the export and disposal of solid waste;
• regulatory documents for a mini-bakery;
• contract for laundry services for washing workers' overalls.

You may also need other documents and forms - it all depends directly on the regulations of the local authorities and business conditions in the region.

It may take a couple of months to complete all the necessary documents, but the process can be accelerated by contacting a specialized company. Although I had to pay for this, this amount turned out to be significantly less than the costs of downtime (equipment downtime, employee salaries, rent of premises, etc.).

Premises and location

The choice of premises should be based on two components: the first is the requirements of the SES, the second is the optimal location of the point for the sale of goods (near large transport and shopping centers). The requirements of the SES are quite objective:

• the room should not be a basement;
• the presence of household and utility rooms (warehouses, toilet, shower room, wardrobe);
• the ceiling must be whitewashed;
• the walls are tiled up to a height of 1.75 m;
• floors - waterproof;
• ventilation of adequate power (artificial and natural) is installed;
• availability of communication systems: sewerage, hot and cold water.

If you rent a separate room, its area must be at least 50 square meters in order to place the necessary set of equipment. It is possible, by concluding an agreement on joint activities, to use the free spaces of a restaurant, shop or cafe. The most important thing is the location, which will be well passable by a large mass of potential buyers.

By concluding an agreement with a cafe that has been operating at this place for 5 years and is located at the crossroads through which walking people go to shops and business, from work and to work, you can initially ensure the influx of new mini-bakery customers.

Bakery equipment

A mini-bakery requires 2 types of equipment: for the production of products and trade. Production equipment can be purchased full cycle and incomplete. For a complete one you will need:

• dough mixing machine;
• bake;
• proofing cabinet;
• table for cutting dough;
• baking trolley;
• flour sifter;
• dough sheeter.

Prices for equipment are fairly standard for most manufacturers. But you can find used ones, respectively, their cost will be lower. If the equipment is rented, then it is worth initially agreeing on its subsequent purchase. All manufacturers of bakery equipment provide training for customer personnel to work with their equipment.

When organizing the production of an incomplete cycle, kneading the dough is excluded. At the same time, costs are reduced significantly, since the mini-bakery directly only bakes and sells products. In this case, you only need an oven, a freezer and a showcase.

Commercial equipment of a mini-bakery includes:

• cash machine;
• safe;
• showcase;
• cabinets for finished products.

In addition to business equipment, you need to purchase furniture and household items. For example, by renting a room in a cafe, you can conclude an agreement with them for the use of their equipment, which will also reduce start-up costs.

Staff

In the production of bakery products, the following staff is required:

• technologist;
• baker;
• seller-cashier;
• cleaning woman;
• accountant.

Each employee must have a medical book and, despite the fact that manufacturing companies provide staff training, have an appropriate diploma, as well as work experience. The qualification of mini-bakery workers is the quality of the product, and, consequently, the level of demand for it.

If a mini-bakery produces up to half a ton of products per day, you can get by with a baker-technologist and a sales assistant-cashier. If the volumes exceed 2 tons per day, then you will need: a technologist, 3 bakers and a cashier.

Raw material

The main raw material for production is, of course, flour. It is better if it is of the highest grade, but if there are quality additives, you can use the first grade. Wholesalers can find flour for an average of 10 rubles per kilogram. It is not worth going to the enterprises of the flour-grinding industry - he is unlikely to be interested in the volume of purchases of a separate mini-bakery. In addition to flour, you will need: pressed yeast, egg powder or eggs, vegetable oil, salt, sugar. If we talk about confectionery, pies, belyashi, chebureks, samsa, then the variety and consumption of raw materials will depend on the recipes developed by the production technologist.

You need to look for suppliers who are able to offer the most optimal prices for raw materials, as well as looking for long-term contracts. Such suppliers are interested in the duration of work, which means they will offer quality goods on favorable terms.

Conceptual-assortment aspect

In today's market there is a huge selection of bakery products and it is hardly possible to surprise a modern buyer with something. The opening mini-bakery should have some special, its own specialization. These can be products with a reduced calorie content, with bioadditives, with a special sourdough, with whole grain additives or national types of bread. It is better to bake in small batches, constantly calculating the demand for a particular type of product. You really need to find your niche in the market.

For example, in the area where your mini-bakery may be located, a large number of people who come from the Caucasus and Asia live. They are accustomed to national types of bread. Russians also love to pamper themselves with these southern products. If you bet on chureki, lavash, samsa, khachapuri and other dishes of national cuisines, you will definitely not go wrong. By adding sweet pastries for tea to this assortment, we have secured a niche for ourselves, despite the fact that there may be other competitor bakeries in your area.

Business strategies in relation to the work of commercial enterprises

Nowadays, there is hardly a place if it is not a distant village where there are no trade enterprises, and they present various (certainly in demand) varieties of bakery products. The activities of a mini-bakery should take into account not only their range, but also their operating time, as well as the opening of new and closing old stores, the presence or absence of competitors (the same mini-bakeries), repairs, as well as the price range of similar products. A small enterprise may well, focusing on these factors, increase its income.

Seasonality of business strategy

Fresh bread bought in your favorite mini-bakery is in demand all year round, with some weakening of demand (for the city) in the summer months, since at this time summer residents (and country houses have a large number of townspeople) leave for their "estates". This factor must be taken into account when reducing the number of baking and staff for the summer.

For example, you have two female summer residents working in your state. They can be issued on a contract basis and their work is fully consistent with seasonality. In the summer they go to their beds and trees, also reducing the purchase of raw materials and the amount of baked products. Sweets for tea are almost not in demand, but the sale of ice cream provides an adequate income.

Features of advertising for a mini-bakery

Advertising is the engine of trade in any goods, including bakery products. The mini-bakery serves nearby houses, and, therefore, advertising must be appropriate. This is the distribution of leaflets in the nearby area, posting ads at the entrances, advertising on the sidewalk and - the most important of all advertisements - word of mouth.

A mini-bakery is an enterprise that manufactures bakery products and carries out retail sales.

The concept of the mini-bakery is baking fresh bread according to unique recipes, as well as creating a homely and warm atmosphere in which visitors can eat without leaving the cash register.

The target audience of the bakery is residents of neighboring houses, as well as people who take care of their health and prefer bread without artificial additives.

The main competitive advantage of the bakery is its favorable location, which allows it to cover two residential areas with a population of about 30,000 people.

The assortment of the mini-bakery includes three main areas: standard products, exclusive bread, as well as French croissants. Each direction consists of three product names. This structure allows you to meet the demand of the entire target audience, as well as get by with a minimum amount of production equipment.

The average check of a mini-bakery is 100 rubles. Permeability during the day can be up to 1000 people, which guarantees reaching full production capacity within 3 months of work.

2. Description of the business, product or service

The obvious advantage of opening a bakery is that despite the general decline in household spending on goods and services, the demand for bread remains stable. In addition, similar imported products increase in price, and products of domestic bakeries are not able to compete with bakery products in terms of taste.

In the production of baked goods, we focus on the quality of the products used and the preservation of the unique recipe of each product.

Bread sold in large stores is usually tasteless and contains a lot of vegetable fat and sugar. As for similar bakeries, they focus on making pies and practically do not have dietary products in their assortment.

The assortment is presented in three areas of baking: French pastries, branded bread for those who adhere to a healthy diet, Russian bread. In each direction, we produce three types of products.

3. Description of the market

The target audience of the project is divided into two segments:

• residents of nearby houses who find it convenient to buy fresh pastries in our bakery;
• people who follow a healthy diet, watch their figure and are interested in buying branded bread according to unique recipes.

The bakery competes with similar companies in the following ways:

• Product quality: it is necessary to use high-quality ingredients and a unique recipe for cooking.
• Price of products: typical products are sold at the average market price.
• The assortment is presented in three areas of baking: French pastries, branded bread for those who adhere to a healthy diet, native Russian bread.
• Location: residential quarter (yard type bakery), convenient parking (possible access from the main street).
• The presence of a window in the workshop, which allows the consumer to observe the process of preparing products

SWOT analysis of a mini-bakery

Strengths of the project	Vulnerabilities of the project
Product quality Range Package Location The ability to change the product range, respond flexibly to demand	Single dot, unrecognizable brand Lack of wholesale discounts from suppliers due to low production volumes Lack of mature supply channels
Opportunities and prospects	Threats of the external environment
The settlement of the area will provide an increase in the level of demand The size of the rented premises allows in the future to increase the volume of production, to purchase additional equipment, as well as to introduce a tasting room.	Lack of sustainable relationships with regulatory authorities Increase in prices for raw materials and primary products

4. Sales and Marketing

5. Production plan

The sale of goods is carried out in the trading floor. Delivery of goods at the project launch stage is not provided.

6. Organizational structure

At the stage of launching a bakery, as well as at the initial stage of operation, you can get by with a minimum number of staff.

Manager monitors the organization of the process of production and sale of products, is responsible for the continuous operation of the bakery and timely troubleshooting. In addition, he performs the functions of a freight forwarder, maintains document management, accepts cash every day, and determines the company's development strategy. Since the turnover of the bakery at the initial stage will be relatively small, it can be assumed that the combination of these duties is possible within the same position. This position assumes a 6-day work schedule from 10.00 - 19.00 with a lunch break of 1 hour.

Seller-cashier in charge of customer service and cash handling. Every evening, the salesperson-cashier fills out a special journal in which he registers cash, and also keeps a record of all transactions supported by the presence of checks. In addition, the seller-cashier accepts finished products from the workshop, puts the goods on the shelves, and keeps order on the trading floor. The working day of the seller-cashier coincides with the opening hours of the bakery and lasts from 8.00 - 20.00. Lunch break in the work of the seller-cashier is not provided, but since the flow of customers is not uniform, he has time to rest. Work schedule - 2 days of work alternate with 2 days of rest.

Baker starts at 6:00 am and ends at 4:00 pm. The baker fully controls the production cycle: from keeping records of raw materials in stock to the production of finished products. His responsibilities also include maintaining cleanliness in the workshop, timely write-off of spoiled products, as well as keeping logs for cleaning the hood. The baker's work schedule is 2 days of work alternating with 2 days of rest.

The salary of each employee consists of two parts: salary (a fixed amount) and piecework (percentage of revenue).

In the future, the possibility of introducing additional non-financial motivation for key personnel is being considered - additional training for cooks.

For reporting, we intend to use the services of an accountant on outsourcing.

With an increase in production, as well as the expansion of services provided, new vacancies will appear in the company: a driver, a cleaner, an administrator, a pastry chef.

A detailed payroll calculation, taking into account the bonus part and insurance contributions, is presented in the financial model.

7. Financial plan

Calculate the initial investment required to start a bakery. They amount to 1,589,811 rubles. Let's take a closer look at their composition.

Equipment:

Name	Quantity	Price for 1 piece	total amount
Cash machine	1	15 000	15 000
glass showcase	1	25 000	25 000
Cabinets for GPU	1	15 000	15 000
Safe	1	3 000	3 000
Bake	1	250 000	250 000
Fridge	1	40 000	40 000
dough mixer	1	50 000	50 000
proofing cabinet	1	40 000	40 000
flour sifter	1	25 000	25 000
Dough cutting table	1	35 000	35 000
dough sheeter	1	45 000	45 000
Baking trolley	1	40 000	40 000
Table for visitors	2	10 000	20 000
Chairs for visitors	6	2 500	15 000
Fire-fighting equipment	1	50 000	50 000
Other equipment	1	50 000	50 000
Total:			718 000

Not a single person has ever been without bread. Gone are the days when one bakery provided the whole city with fresh products. Now, private bakeries are gaining more and more popularity, which make the production of bread unique and unlike the rest. This is the perfect business! The demand for bakery products never falls. All that is needed is a competent and detailed business plan, investments, formulation development and the search for “your” customers.

Investments in business

Own business: bread production

First, the documentation. That is, first you need to register your activities - whether it will be an individual entrepreneur, or a state of emergency, or even an LLC - is a personal matter for everyone. But, for large-scale production, it would be better to design as an LLC. Prices for documentation in all regions are different. Approximately it costs 10-25 thousand rubles. Not to mention the fact that many instances should allow your activities (and here, as you know, you can’t do without investments, they depend on the appetites of the inspectors).

Secondly, the room. The production of bread requires a large area, because in addition to the workshop where baking will be carried out, there are also workshops where the dough will be kneaded, finished products will be stored before sale, as well as storage facilities. On average, about 70-120 squares of the total area.

In addition, it is worth considering in advance where your bakery will be located. If you plan to sell bread directly from it, then it should be located in a place where there is a high traffic of people.

On average, for a room (rent, purchase, repair) about 200-400 thousand rubles. In different regions, this figure can fluctuate both up and down.

Thirdly, equipment for the production of bread. There are options: either buy a new factory one, or use a used one. The first option is more expensive, but more reliable. The second one is less expensive. At the same time, there are no guarantees that the equipment will not “stand up” during operation, thereby disrupting all the work and ruining the raw materials. For new equipment will have to pay about 50 thousand dollars. Used will cost much less. The equipment includes:

This is the most basic list of equipment that will allow you to bake bread in volumes of 500-700 kg per day. The equipment also includes:

1. racks where the bread will be stored until it is sold,
2. racks where raw materials will be stored,
3. packaging machine,
4. scales,
5. knives, molds and other small inventory.

Fourth, it is worth spending money on raw materials in advance. Each bread production technology implies its own recipe, and hence its own raw materials, which will be included in the composition. It is important to think at the stage of developing a business project what type of bread you will be making. The ideal option would be a combination in the production of both traditional and popular types, and bread according to your own unique recipe (you can develop it yourself or with the help of specially hired technologists). Common in technology: processing of raw materials, kneading and proofing dough, baking. Suppliers of the starting material (raw materials) must be chosen very carefully, even meticulously - all products must be fresh, have a real expiration date, and most importantly, be delivered on time. After all, if the delivery of raw materials (the same flour) is delayed, then you will have nothing to bake from, which means that production will be idle.

Even if your idea is a mini-bakery, you won’t be able to avoid extensive investments. The only difference between a small workshop and a large one is the volume of finished products. But it so happened that small bakeries are more profitable in the face of fierce competition. This is ensured by the fact that their niche is unique - the production of such products that no one else has. The unique formulation works better and more productively than large volumes.

Income, profitability, payback

Having launched production, you should not expect instant enrichment. The buyer is quite capricious. Although, if your products can be of interest (again due to originality), then you can conquer the market quite quickly. In order for production and investments to pay off, you will have to wait about 2-3 years. By the way, it is very important to set the right price for finished products. Only a thorough study of the market supply and demand, the products of competitors can help here. Bread production can bring a stable income only when you take into account all the wishes of customers, while not working yourself into a minus.

The profitability of the project reaches 10-15%, but only with stable demand, production and gradual expansion of the range. The interest of the buyer must always be maintained. In addition, it is worth considering monthly expenses: wages to employees, payment of bills, purchase of raw materials, transportation of products. Net profit can be obtained about 100-150 thousand rubles a month. This is only at the initial stage. When you conquer the market, acquire constant demand, replenish the assortment, this figure can be increased.

Business pros and cons

The obvious disadvantage is a large investment, a long payback. But if your project is a mini-bakery, then the investment is a smaller amount, and the payback, on the contrary, is growing. This is especially true in those areas where, apart from the local bakery, there is nothing. Here the profitability of production can be many times greater.

The advantage of production is that business is always in demand. Finished products sell like hot cakes, literally and figuratively. Large investments always pay off with good dividends. In addition, such a business gives stability. Like it or not, bread will always be sold. And if you managed to firmly establish yourself in some niche, then you can safely count on constancy and profit. Another plus is that the business is not seasonal! It is relevant and popular all year round. Production is carried out on holidays and weekends. At the same time, holidays are the most “bread”. Demand for products is growing exponentially.

* Calculations use average data for Russia

1. PROJECT SUMMARY

The goal of the project is to create a bakery in Rostov-on-Don. The bakery is focused on the production of bakery products in small batches. The price segment is premium. The assortment is based on handmade products, mostly non-traditional: with the addition of vegetables, whole grains, and so on.

Sales are carried out through our own trading floor at the bakery, as well as through restaurants in the city of the corresponding price segment.

The competitiveness of the project is based on the originality of recipes and finished products, as well as the low level of competition in this segment. Despite the difficult economic situation in the country and the decline in the solvency of the population, the premium segment is traditionally the most resistant to negative market influences.

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The invested funds are used to purchase fixed assets (equipment for a bakery, commercial equipment), to organize a launch advertising campaign, as well as to form a working capital fund, which covers the losses of the enterprise until it reaches payback.

The main performance indicators of the project are given in Table. one.

Table 1. Key Performance Indicators

2. COMPANY AND INDUSTRY DESCRIPTION

According to experts, the Russian market of bakery products is developing at a faster pace and has a significant potential for growth and development in the near future, while the markets of Western countries are in a state of stagnation.

The main global trends include the following. In the coming years, demand and supply for bakery products are expected to increase in selected countries of South Africa. Also, active growth in supply is expected in a number of countries such as China, Vietnam and Turkey, while demand in these countries is at a fairly low level. A distinctive feature of demand in these countries is the shift in focus away from bulk to conveniently packaged products. In developed countries, there is a weak market growth or its stagnation - for example, in the UK, Germany, New Zealand and others.

The demand for handicrafts is growing. This trend today is largely characteristic of the Russian market. It provokes the opening of a large number of so-called "bread boutiques" - authentic bakeries of the "luxury" and "premium" segments.

Characteristic for the European market has recently become "healthy products" "without additives and preservatives", hypoallergenic, whole grains and others. Separately, one can note such a popular positioning as "eco-friendly packaging", which does not directly relate to the properties of the product itself, but also belongs to the environmental class. Taste preferences characteristic of Europe are: natural taste, natural taste with olive oil, garlic taste; sunflower seeds, cheese, rosemary are often used.

The decline in demand for traditional bakery products in Europe was partly due to the growing popularity of the snack format, i.e. products in convenient portion packs. These include, for example, instant cereals, breakfast biscuits, cereal bars and other products. Bakery manufacturers, in order to increase their competitiveness, are starting to produce ready-made toast and crackers as the most suitable products for breakfast.

The high demand for dietary products in Europe is also caused by the fact that the inhabitants of some countries are overweight, as a result of which they adhere to various diets, most of which require the absence of flour products in the diet. Analysts refer to such countries as Great Britain, Ireland and Poland. According to the results of surveys conducted by analysts, 65% of Britons believe that proteins help to feel full for a longer time; 54% believe that high protein content in foods contributes to weight control; 44% buy products with a high protein content as healthier.

An interesting feature of the European market is that sweet bread is considered a much healthier alternative to such treats as cakes, sweets, ice cream and so on. This feature allows bakery manufacturers to create new types, such as brioche or fruit bread, products containing berries, chocolate slices and others. At the same time, to enhance the marketing effect, a variety of cereals, sunflower seeds, pumpkins, flax, oatmeal are used in the manufacture.

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The opposite of fruit bread can be considered bakery products with the addition of vegetables - peas, carrots, sweet peppers, tomatoes. Such products are also considered healthy, and the packaging indicates that they are fortified with minerals, vitamins, dietary fiber, have a low glycemic index, and so on.

In Russia, bread has historically been one of the main products in the diet of the population, which is treated with special trepidation; it also belongs to the category of essential products. Despite a slight decrease in consumption growth rates, the bakery market continues to grow.

For the most part, the Russian market follows the main trends of the markets of developed countries, but with less intensity. Handmade bread, elite bakeries and unusual tastes are becoming more and more popular, but traditional types of bakery products remain the undisputed market leaders (90% of the total market volume). The reasons for this are: the lack of global marketing campaigns of manufacturers (and the lack of mass production of non-standard products) and the high cost of non-traditional products with declining purchasing power of the population. In 2015, the production of traditional varieties increased by 1.3%, while the production of non-traditional varieties increased by 7%.

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According to a study by Mintel analysts, most of the new products launched in Russia in 2014-2015 are positioned as GMO-free products that support heart function and normalize digestion. The leader of taste preferences is the natural taste without flavors; products with raisins, flax seeds, sunflower seeds, sesame seeds, and garlic are also popular.

The growing interest in Russia in a healthy lifestyle, which came from Europe, is today one of the main correctors of the industry's growth. On the one hand, it leads to a restriction of the consumption of traditional bakery products, on the other hand, it stimulates the development of the industry in the direction of developing new directions and creating new products.

Over the past decade, the volume of production of bakery products in the country has decreased from 8 million tons per year to 6.6 million tons. Unlike most food products, demand for the industry's products grows during periods of crisis. This is due to the fact that bread is a hearty, high-calorie product at a low cost. For example, during the 2008 crisis, the demand for bakery products increased significantly, and after the stabilization of the economic situation, it decreased.

Figure 1. Supply of traditional types of bread per capita, kg per person per year

The accession of the Crimea served as a certain driver of the growth of the industry. In this region, the production of bakery products is 50 thousand units per year. In recent years, the consumption of bread in the Northwestern Federal District has significantly decreased, which is probably due to the high cost of production due to the remoteness from grain-producing regions.

According to RBC research, in Russia, especially in the metropolitan regions, products from small bakeries that make so-called handmade bread are gaining popularity. Demand is growing not only at the expense of individuals, but also at the expense of restaurants who want to have high-quality bakery products in their assortment.

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In addition to small bakeries, which can be classified as small or micro businesses, large retailers such as Auchan, Okay, Perekrestok and others have their own bakeries producing non-traditional products. At the same time, small industries strive to improve quality, to use original recipes.

According to market participants, the daily revenue of a small outlet selling handmade bakery products can reach 50-60 thousand rubles on weekdays and 140-150 thousand rubles on weekends with a margin of 75%.

Using the example of a number of “handmade” bakeries that opened in the capital regions in 2014-2016, we can talk about the following indicators. The volume of investment costs is 7-9 million rubles. Operating expenses - 3.5-3.7 million rubles, the bulk of which is rent. The rest is utility bills, payroll, raw materials, packaging and logistics. The revenue in this case is 3.8-4.0 million rubles. Thus, profit (before tax) is 100 thousand rubles per month under the worst scenario, 500 thousand rubles under the best scenario.

A big problem for bakeries of the high price segment today is the quality of raw materials, primarily flour. The capital's bakeries buy flour in fairly remote regions - for example, in Perm, Orenburg, but the quality stability varies from batch to batch.

According to market participants, the most effective business model for a small bakery is a combination of wholesale and retail distribution channels. Creating your own retail network, of course, requires considerable costs, but significantly increases profitability. In some cases, we can talk about a two-fold increase in it.

One of the main problems for small bakeries can be a small range of products on offer. Given this factor, bakeries cannot always meet the demand for non-traditional products, which, in fact, are quite diverse.

Summing up, we can say that the bakery market in Russia has growth prospects. If the economic situation stabilizes, the demand for traditional products may fall, while the demand for non-standard products may increase. This will affect, first of all, the increase in the volume of the market in terms of money.

Thus, taking into account all the market trends, the project seems to be highly promising. In order to implement it, a new business entity is being created. At the time of writing the business plan, the enterprise has no history and no financial results.

The location of the bakery is Rostov-on-Don, the administrative center of the Southern Federal District and the Rostov Region, the largest economic, industrial, cultural center of the South of Russia, an important transport hub. The population of the city is 1.1 million people, the population of the Rostov agglomeration is 2.16 million people.

The bakery is organized in a rented premises in the city center, in close proximity to the intersection of the main transport routes, which makes it accessible to residents of various parts of the city. The bakery has its own sales area. However, the main volume of sales falls on the sale of products to premium segment restaurants.

3. DESCRIPTION OF GOODS AND SERVICES

The bakery produces molded and hearth bakery products, mostly of non-traditional type; some of them are positioned in the segment of products for a healthy diet. Wheat and rye-wheat, as well as yeast products are produced. All products are made exclusively from natural ingredients, without GMOs, as well as without additives, dyes, flavors and other additives.

The production uses ingredients from local producers - farms in the Rostov region, purchased directly. The production includes a full technological cycle, from sifting and loosening flour, kneading dough, to baking in an Italian-made oven, which ensures high quality of finished products by blowing hot air on a rotating cart.

The recipe of all products is completely original, developed by the initiator of the project, who has a culinary education and many years of experience in the field of public catering.

The range of the bakery includes more than 60 items, which can be grouped into several main categories. Since the main distribution channel is wholesale deliveries to restaurants, the wholesale price is given in the calculations; the income and expenses of the retail point of sale are determined by the average bill.

Table 2. Bakery assortment

	Name	Description
	Hearth bread in assortment (wheat, rye-wheat)	High quality traditional hearth bread in assortment, weight 600 g
	Ciabatta with Sun Dried Tomatoes	Italian wheat bread with olive oil and sun-dried tomatoes, weight 350 g
		Bread made from whole wheat flour with particles up to 1.5 mm, which allows you to save a maximum of taste and vitamins, weight 500 g
	French baguette	A classic baguette with a crispy crust and soft inside. Weight - 250 g
		Wheat bread with the addition of sunflower seeds, flax, sesame seeds in assortment, weight 600 g
	Croissant in assortment	Classic French croissant in the shape of a crescent, made of puff pastry and high-fat butter with fillings of various jams, assorted, weight 70 g

Table 3. Production costs and selling price

	PRODUCT / SERVICE	COSTS PER UNIT, rub.	TRADING MARGIN, %	UNIT COST, rub.
	Hearth bread in assortment
	Ciabatta with Sun Dried Tomatoes
	Whole grain bread in assortment
	French baguette
	Hearth bread with seed additives in assortment
	Croissant in assortment
	Average retail check

For retail customers, products are packaged in branded paper bags with the bakery logo and contact information. Delivery to wholesale customers is carried out on the personal car of the project initiator.

4. SALES AND MARKETING

The product range of the project is given in Sec. 3. Price segment - premium. The target audience is men and women with a high level of income (from 60,000 rubles per month), aged 30-50, mostly married, with children.

Products are sold both wholesale and retail. Retail sales are carried out through their own point of sale - a trading floor at the bakery; the project also cooperates with an online food delivery service. In general, retail sales account for up to 25% of the total volume, of which 15% is own retail, 10% is delivery service. Wholesale sales involve the sale of products to restaurants of a high price segment. The retail margin is much higher than the wholesale margin, which in monetary terms offsets the difference in sales volumes in physical terms.

Promotion is carried out both with the help of online tools and with the help of traditional offline advertising. Advertising articles are published in the most popular glossy magazines dedicated to leisure and style. The articles highlight the production process, positioned as "handmade", publish photos of production, talk about the beneficial properties of "handmade bread".

The website, as well as advertising pages on social networks (fb.com) and services (Instagram) are used as online tools. Bakery news, interesting culinary recipes are published, contests and drawings are held. Photos of the production process, finished products, photos of visitors are published on Instagram. There are also photo contests from customers of the bakery under the slogan "Bread on the family table".

An important promotion channel is also the online delivery service, which is actively engaged in advertising its services using banners (billboards), video advertising and Internet tools.

Key success factors for the project include:

Original recipes of the entire range

High quality of products due to the high quality of all components: recipes, ingredients, equipment, personnel

Quality stability

Convenient bakery location for retail customers

Demand for bakery products does not have a pronounced seasonality, but may have local fluctuations - depending on weather conditions, public holidays, and so on. A slight decrease in the consumption of bakery products is observed in the warm season, and a significant increase in demand - during the New Year holidays.

The study of the competitive environment showed that the level of competition in the city in this price segment is low. Of the enterprises that can be considered as direct competitors, today there are four cafe-bakeries on the market with small production volumes, selling products only through their own retail. In addition, there are two larger bakeries that have a similar positioning to the project; one of them has its own retail network, the second sells products both wholesale and retail, that is, it has a business model similar to the project. The price level of all competitors is comparable. At the same time, mini-bakeries are focused on one specific area of ​​the city in which they are located. The range of large bakeries is based on more traditional products. Thus, the project is in favorable competitive conditions.

Table 4. Planned sales volumes, units/month

	PRODUCT / SERVICE	AVERAGE PLANNED SALES VOLUME, units/month	PRICE PER UNIT, rub.	REVENUE, rub.	VARIABLE COSTS, rub.
	Hearth bread in assortment
	Ciabatta with Sun Dried Tomatoes
	Whole grain bread in assortment
	French baguette
	Hearth bread with seed additives in assortment
	Croissant in assortment
	Average retail check
			Total:	3 083 150

5. PRODUCTION PLAN

The bakery is located in a rented building in a shopping center in the central part of the city. The total area of ​​the premises is 75 m 2 , of which 54 m 2 is reserved directly for production, the rest is a trading floor and auxiliary premises. The room has all connected communications, meets all the requirements of sanitary standards.

The equipment is purchased from a federal supplier providing turnkey solutions for food production. Thus, delivery, installation and commissioning of equipment is carried out by its supplier; the supplier also conducts staff training. The duration of the process - from the order and payment to the finished line - 4 weeks.

The set of equipment provides the following processes:

Sifting, loosening flour

Dough kneading

Dividing and shaping dough pieces by machine

Final proofing of dough pieces in a proofer

Baking in a production rotary oven

The equipment supplier also provides services for the development of engineering communications and design of the premises. Finishing work is carried out by a construction team from Rostov-on-Don in accordance with the provided project. Commercial equipment is purchased from a regional supplier.

Ingredients for the project products are purchased only from regional producers - farms. All purchased products undergo strict incoming quality control, since the quality of the finished product depends on its properties, which is one of the main factors of the project's competitiveness.

Delivery of products to restaurants is carried out by the initiator of the project, on his own car. The collection and delivery of products to customers of the delivery service is carried out by the service on its own. Retail customers purchase products on the trading floor at the bakery.

6. ORGANIZATIONAL PLAN

The entire project implementation process can be divided into three main stages: the preparatory stage, the growth stage and the maturity stage. The exit stage at the stage of writing a business plan is not considered. The decision to exit the market is made by the project initiator based on a detailed analysis of the economic situation, the competitive environment, the financial results of the project and other factors.

The preparatory phase lasts 4 weeks. During this time, delivery, installation and commissioning of equipment is carried out. In parallel, a launch advertising campaign is being carried out, as well as staff recruitment.

The maturity stage implies the active development of the project, the formation of a pool of regular customers, up to reaching the planned sales volumes. After that, the stage of maturity begins, work within the planned financial indicators.

IP was chosen as the organizational and legal form of the project. For the project, a mixed form of taxation can be applied - for wholesale trade in the simplified tax system, for retail trade through its own outlet - UTII. However, in order to simplify reporting, a single form of taxation has been adopted - the simplified tax system with the object of taxation "income minus expenses" (rate 15%). You can read more about the choice of legal form and taxation of bakeries

All management and administrative functions are performed by the project initiator. He has all the necessary skills in the field of entrepreneurship, as well as culinary education and many years of experience in this field. The organizational and legal form is simple - all employees are directly subordinate to the project initiator. The functions of the deputy head are performed by the administrator, who controls the work of the trading floor, and also takes orders from wholesale customers.

The production schedule is a five-day working week, from 09.00 to 18.00. The trading floor is open daily from 10.00 to 21.00.

Production workers – bakers and auxiliary workers – are subject to particularly stringent selection requirements. At least five years of experience in the bakery industry is required, as well as compliance with the requirements for personal characteristics: responsibility, desire to learn.

Table 5. Staffing and payroll

	Job title	Salary, rub.	Quantity, pers.	FOT, rub.
Administrative
	Accountant
	Administrator
Industrial
	Production worker
Trade
	Sales floor seller
	Total:			$196,000.00
	Social Security contributions:			RUB 58,800.00
	Total with deductions:			$254,800.00

7. FINANCIAL PLAN

The financial plan of the project is drawn up for a five-year period and takes into account all the income and expenses of the project. Revenue refers to revenue from operating activities. Income from investment activities, as well as from the sale of fixed assets are not provided for by the financial plan. Revenue from the first year of project implementation – 29.0 million rubles; net profit after taxes - 11.4 million rubles. Revenue of the second year and subsequent years - 36.7 million rubles per year, net profit - 15.6 million rubles.

Investment costs - 4.6 million rubles. The main cost items are the acquisition of fixed assets, finishing work, as well as the formation of a working capital fund, which covers the losses of the project until it reaches payback. Own funds of the project initiator - 2.5 million rubles. The lack of funds is planned to be covered by attracting a bank loan for a period of 36 months at 18% per annum. The loan is repaid monthly in annuity payments, credit holidays are three months.

Table 6. Investment costs

	NAME	AMOUNT, rub.
Real estate
	Design and design of the premises
	Finishing work
Equipment
	Bakery equipment
	Shop equipment
Intangible assets
	Website development
working capital
	working capital
	Total:	4 555 604 ₽
	Own funds:	RUB 2,500,000.00
	Required borrowings:	2 055 604 ₽
	Bid:
	Term, months:

Variable (manufacturing) costs include the cost of acquiring raw materials and their delivery, electricity and water used in the production process, as well as the purchase of packaging for retail sales (Table 7).

Table 7. Variable costs

	PRODUCT / SERVICE	COSTS PER UNIT, rub.	TRADING MARGIN, %	UNIT COST, rub.
	Hearth bread in assortment
	Ciabatta with Sun Dried Tomatoes
	Whole grain bread in assortment
	French baguette
	Hearth bread with seed additives in assortment
	Croissant in assortment
	Average retail check
			Total:

Fixed costs include rent, utilities, advertising and a range of other costs, including depreciation. The amount of depreciation is determined by the straight-line method, based on the useful life of fixed assets and intangible assets of five years (Table 8).

Table 8. Fixed costs

A detailed financial plan is given in App. one.

8. PERFORMANCE EVALUATION

Evaluation of the effectiveness and investment attractiveness of the project is carried out on the basis of a detailed analysis of the financial plan, as well as simple and integral performance indicators (Table 1). To account for the change in the value of money over time, the discounted cash flow method is used. The discount rate is taken at the level of the risk-free rate - the yield of long-term government bonds is 10%.

Simple (PP) and discounted (DPP) payback period is 7 months. Net present value (NPV) - 5.4 million rubles. Internal rate of return (IRR) - 19%. Profitability index (PI) - 1.19. All these indicators indicate the effectiveness of the project and its fairly high investment attractiveness.

9. WARRANTIES AND RISKS

To assess all risks associated with the implementation of the project, all internal and external factors are evaluated. Internal risk factors include everything that can negatively affect product quality: recipe, equipment operation, personnel work, ingredients. Constant monitoring of these factors by the project initiator allows minimizing risks.

External factors include, first of all, the actions of competitors - both existing and potential new players. The price struggle is unusual for this price segment, therefore, presumably, the struggle will take place in the area of ​​improving the assortment, offering new products, as well as improving the quality of service. This scenario does not pose a threat to the project, as the project proponent has the necessary skills to continuously improve the product range. The level of service for retail customers is at a very high level. In addition, at the growth stage, an active formation of a pool of regular customers is envisaged.

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