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Simple Steps for Creating a Business Plan for Your Cake Business

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A business plan is an extremely valuable documents for every single type of business out there, from multi-million pound turnover businesses to one woman bands to yummy home cake businesses. Business plans are the roadmap to success.

Simple Steps For Creating a Business Plan

Guest post by Pia Cato

Pia Cato’s (Make Money With Cakes) website | twitter | facebook | pinterest

Now, they can be as simple or as comprehensive as you like. The comprehensive plans tend to be best if you’re looking for investment (banks, crowdfunding, venture capitalists) or if you’re opening a business with a partner/s. As it is only natural that they will want to know about every single aspect and precise detail about your business so that they can understand what you want to achieve and why they should invest or join as a business partner.   


Investment or Partnership

However, if you’re not looking for investment or partnership then I suggest the simple variety.  I have had personal experience of creating comprehensive plans as well as creating simple ones. I feel that for home bakers and home cake design businesses the simple one is perfect.  

Below I have detailed how to create your simple business plan and what headings you need (and why you need them) as well as an example to help so that you can create your own version.  

It may be simple but it is still a hard-hitting document that covers where you want to be in the next three years and most importantly, helps you to focus on what you need to achieve in your current year in order to meet your vision.  


How to Create Your Simple Business Plan

YearWrite down the current year.2016
VisionA simple one or two sentences outlining what you want to achieve within the next three years.To be one of the leading luxury cake designer for couples marrying in the Kentish countryside ( 60 mile radius of Tunbridge Wells).
MissionA short paragraph outlining what you will do to meet your vision.I will provide excellent customer service and personal touches for couples commissioning their wedding cake from my business so that they have a truly memorable experience from start to finish. I will hone my baking and decorating skills through courses and self-taught activities.  Couples will find my business through my website, social media, leading wedding magazines and google searches as well as through top wedding venues and wedding planners in the area. Each Autumn/Winter and the Spring/summer season I will launch a new collection of wedding cake designs to add to my portfolio to keep my ideas fresh and on trend.
Target CustomerDetail who your target customer is, what they like, what they want.  

If you have more than one target customer detail all of them.

Female, age 25-35, mid to  high disposable income, appreciates the finer things in life, works and lives in London with her fiancé,  wants to marry in the countryside, dreams of a Pinterest style wedding, is active on Instagram, owns the latest smart phone and tablet, wants a cake that is unique to her special day. Loves to socialise with friends and family. Enjoys frequent weekends away both in England and abroad with her fiancé.
Business Goal/s  and tasks (for the current year)I suggest having no more than 3 business goals at a time. This is a simple document, you don’t want to overload your plate!
For each goal you create outline the tasks you aim to complete in order to achieve your goal.
Once you have completed your goal you can remove it and add a new one.

Attend a ‘Sharp Edges’ cake covering course.

*Research sugarcraft schools

*Book course

*Publish on social media that I am excited to be going.

* Attend course (take pictures, push to social media, blog about it)

Create a website that can be viewed easily on a mobile phone.

*Research DIY methods Vs hiring a web designer

*Commit to one method

*Create a list of websites that I like the look of.

Numbers (for the current year)

  • Projected Sales
  • Expenses
You need to keep an eye on the numbers within your business, not just the sales but the expenses too.

This part of the plan gives you an overview of the total number of sales you want to achieve within the current year as well as the expenses that will occur.

Remember your sales should be higher than your expenses.

Please note this figures are just guesstimates, every cake makes expenses and turnover will be completely different depending on their situation. 

Remember to add:

Projected Sales:

Type of Cake:

3 Tier Wedding Cake

Average Price:


Number of Yearly Sales:

40 (approximate 3 -4 per month)

Turnover of Yearly Sales:


Projected Yearly Expenses:

Marketing/Advertising: £1000.00

Business Insurance: £130.00

Car Insurance (or portion of): £250.00

Phone/Internet (or portion of): £240.00

Bookkeeping Fees: £240.00

Proportion of Electricity/Gas/Water: £300.00

Proportion of Rent/Mortgage: £2,000.00

Ingredients & Supplies (this will fluctuate depending on number of cakes): £4,800

Drawings/Wages: £12,000.00

Total: £20,960.00

Future Opportunities and IdeasAs a small business owner, I am sure you are constantly thinking of new exciting new ideas or being presented with thrilling opportunities for your business. But hold fire. Do these ideas and opportunities align with your current year’s business goals?
If yes, great, work them into your strategy.
If no, to avoid going into the black hole of ideas and opportunities, which could actually jeopardise your business and your health (think increased overwhelm, stress and confusion). Jot them down in this section and review them at a later date.
*Introduce Luxury Birthday Cakes

*Create a Recipe Book

*Open a Cake Shop


Once you have completed your plan it is important to read it and review it regularly, at least once a month. Your business plan is a working document so it can be updated, it can be tweaked and if one of your goals isn’t doing what it should be put a time limit on it, then remove or pivot if need be.


Good luck with writing your simple business plan.

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