THE COMPLETED BUSINESS MODEL CANVAS OF A BAKERY

Are you working on your bakery’s Business Model Canvas? Can’t you do it? Are you confusing “Business Plan” and “Business Model Canvas”? Have you ever heard of the value proposition? What do we mean by “key resources”?

In our business plan for a bakery, we provide you with a fully written example of a Business Model Canvas for a bakery.

Also, we present the nine categories of the Business Model Canvas of a bakery. First, we will explain to you what they correspond to. Then we give you other examples that correspond to a bakery’s reality. 

Finally, know that our team of experts constantly monitors the market. The documents of the complete package for a bakery (business plan, market study, executive summary, and financial forecast).

WHAT CAN A BUSINESS MODEL CANVAS OF YOUR BAKERY BE USED FOR?

Let’s start by clarifying the possible confusion between the following terms: “Business Plan,” “Business Model Canvas,” and “Business Model.”

The business plan is, as its name suggests, a plan that details a company’s strategy. This is a document found, for example, in the context of a funding application.

The Business Model describes the conditions, the ways, and the means with which a company plans to develop over the long term.

The Business Model Canvas, meanwhile, is a tool for formalizing a business creation project. In a way, you could say that the Business Model Canvas is a synthesized version of your bakery’s Business Model. VS’

Your bakery’s Business Model Canvas contains nine parts, each of which addresses an angle of your business model.

The tool makes it possible, in particular, to define the target customer segment, to present the solution offered by your bakery to meet the need expressed by the target, list the distribution channels that will be used, to record the characteristics of the customer relationship, to define your pricing strategy, formalize the different items of your economic model, identify the activities inherent in the operating cycle, identify the partners who will gravitate around the company, and formalize the costs inherent in the operation of your bakery.

We will tell you more in the rest of the article.

THE POSSIBLE VALUE PROPOSITION FOR A BAKERY

A value proposition presents itself as a promise. It is a company’s promise to a customer or market segment.

Simply put, this is why a customer should buy a product or service from that particular business.

Examples of the value proposition are: “a medical clinic with a free first consultation,” “a 100% vegan restaurant, open every day of the week”, or “a completely free application, which allows you to find a restaurant near you.”

A value proposition should clearly explain how a product or service meets a need.

To build a compelling value proposition, companies often conduct market research. In particular, this allows them to identify the messages that impact their target market most.

Successful value propositions avoid terms that are too “fashionable” and, above all, overused.

As for us, we often use 3-point formulations in our business plan templates. This type of structure allows the reader to quickly analyze the value proposition and grasp the characteristics of the product (or service).

The value proposition of your bakery will mostly depend on the type of business you choose to develop.

If you’re opening a neighborhood bakery, a compelling value proposition might be “bread any time of day, near you, for a good price.” But, of course, it also depends on the market segment you are targeting.

If you’re targeting a craft-minded demographic, a good value proposition might be “an artisan bakery near you.”

For it to be convincing, it must also target important elements for the consumer. For example, in the case of a bakery, the success factors are (among others) the location, the quality of the products offered, and the friendliness of the bakery.

Thus, you could develop a value proposition in this direction.

THE MARKET SEGMENTS OF YOUR BAKERY

Market segments are at the heart of your bakery’s success. With your business, you are targeting a specific audience. However, we will likely encounter different profiles among this audience. These other “groups” are called “market segments.”

Market segmentation is used to identify and form groups of individuals with similar characteristics. Segmentation is generally done when one is going to create his company at the time of the market study.

The homogeneity of a group of consumers is defined by the intersection of several criteria (age, income category, profession, place of residence, etc.). In addition, each group has its mode and consumption habits.

Also, each marketing message does not have the same effect, depending on the different groups. Thus, segmenting your market allows you to be more effective in your sales, marketing, and communication targeting strategy.

Without segmentation, it is impossible to know who you are talking to or how to reach these people.

To segment your customers, the easiest way is to conduct online surveys and questionnaires. It is also possible to refer to certain statistics issued by INSEE. With a field survey, you will discover the different profiles of people who will potentially come to buy bread from you.

You will also find out how much people spend on average when they go to their bakery, whether they prefer traditional bakeries or supermarkets, or even which pastries are the most popular. Each type of bakery has its market segment.

RELATIONSHIPS WITH YOUR BAKERY CUSTOMERS

Here we define the way you will communicate with your customers. There are several channels to maintain a relationship with its customers. Among these, we can cite the telephone, face-to-face meetings, emails, SMS, videoconferences, workshops, etc.

Your customer relationships have a single objective: to build their loyalty.

First of all, you will have to customize the exchanges. This is notably permitted by collecting information on them. For this, you can ask them to leave you their email address to keep them informed of your future promotions.

Then you need to make sure you’re delivering value to them. Your customers are bombarded with hundreds of low-value information daily. Change that. So, don’t send long and boring emails; moderate this frequency.

In the context of a bakery, there are several ways to communicate with its customers. First of all, you will inevitably meet them since they will come to buy their bread and pastries from you. You can also use the telephone to take orders possibly.

You can also use email, as we said above. Events are not to be excluded either: organize workshops in your bakery to learn how to make bread at home.

THE DISTRIBUTION

Distribution is how you distribute what you sell. This is to explain how a company’s customers will come into contact with its offer.

Still can’t see? We will give you some examples. For a clothing store, product distribution is done in-store. For an e-commerce store, the distribution of products is done via partners, who will take care of the delivery of the products. Finally, for a medical clinic, the service is delivered directly on-site.

In the context of a bakery, the distribution problem is quite simple to elucidate. Your customers usually come to your store to pick up their products.

But you can also offer a delivery system. Some bakeries will also develop an online store and a click-and-collect plan.

KEY ACTIVITIES

Key activities are those that your bakery undertakes to implement its value proposition. Key activities are strongly linked to key partners and key resources.

Indeed, it would help if you had partners to carry out these activities. But also require the use of resources (keys). An example to see more clearly: an insurance agency, to sell contracts (key training), will work with brokers (key partners).

As part of a bakery, there are several key activities. First, there is the preparation of bread and pastries and the sale or delivery of these food products.

KEY RESOURCES

Key resources are the means that your bakery must implement to function.

They are generally of 4 types: physical, intellectual, human, or financial. For example, a computer is a key resource for a self-employed person. On the other hand, technology is an academic resource that a company can possess.

What might be your bakery’s key resources? First, of course, one of your key activities is to make bread, so there are all the equipment and materials that allow this preparation.

We also think of an online platform if you are developing an online store on which your customers can place orders. Finally, we can mention your local, which will host your bakery activity.

THE PARTNERS

The key partners are those who will help you generate income. However, sometimes your suppliers will provide you with your key resources.

In some cases, the partners are those who provide the financial resource gaps (such as banks and investors). They are sometimes strategic partners, such as subcontractors or account managers.

Finally, there are outsourced activities, such as developing a website or accounting.

For a bakery, there are several key partners. We are thinking in particular of equipment vendors, who will provide you with everything you need to manufacture your products.

But also to traders in the region, with whom you may work hand in hand. You may also work with a delivery service. Finally, we can also mention your accountant, who comes to support your financial operations.

THE COST STRUCTURE

The cost structure is one of the most important parts of a bakery’s Business Model Canvas. It corresponds to all the necessary expenses of the company. The mandatory costs for the creation and development of the company are the basis of the economic model.

Note that there are two types of costs: variable and fixed.

The fixed costs always remain the same, regardless of the production volume. These include, for example, fixed charges such as rent, insurance premiums, or salaries paid to employees.

Variable costs are those that are affected when a company produces more. For example, purchasing raw materials for a restaurant is a variable cost.

In the Business Model Canvas of a bakery, you need to identify those who will have the greatest influence on your business. for more information, visit https://www.mbplans.com/bakery-business-plan/

There are several types of costs in the context of a bakery.

On the side of fixed costs, there is the rent of the premises (as well as current charges), salaries, accounting costs, etc.

As for the variable costs, there is the raw material you use to manufacture your bakery products. Remember that a Business Model Canvas is for mapping.

Thus, it would help if you did not list all your expenses but grouped them into broad categories. Write down the ones that will have the biggest impact on your bakery’s profitability.

REVENUE SOURCES AND PRICING MODEL

Perhaps the most important part of a bakery’s Business Model is Canvas. These are the main cash flows that will constitute the company’s turnover.

There are many possible sources of income for a company: the sale of goods, subscriptions, packages, loans, rentals, revenue from advertising, license sales, commissions received, dividends on investments, etc.

Revenue streams are the foundation of your bakery’s business model.

The pricing model is how you determine the price of your offer. It is not a question of detailing all the expenses and all the possible services. Once again, we seek to schematize. In this category, the reader of your bakery’s Business Model Canvas should understand how you will price your offering.

In a bakery’s case, the revenue sources and the pricing model are quite intuitive. Among the sources of income, there is, of course, the sale of bakery products.

There may also be the sale of other products (yours or those of partners, on which you earn commissions). Your pricing model will depend partly on your bakery’s market research and business plan.

Indeed, first, your pricing must be adapted to the budget of your market (obtained through market research). Secondly, it must be high enough for your bakery to reach its break-even point (amount received thanks to the business plan, and more particularly, thanks to your bakery’s financial forecast ).