bake - January 2018 - 6

management

Writing A Business Plan
Lynn Schurman, co-owner of Cold Spring Bakery, decided

Finding the right location is another critical decision.

years ago to become a bakery owner because she wanted to

"Sometimes looking where there is a need for a cake shop is

gain control of her life and her business. Then she learned the

part of your business strategy." Other important questions to

cold hard facts. "There are certain skill sets you need to run a

examine are who is your competition and what equipment will

business," she recalls of the valuable lesson learned during the

you need. Schurman recommends going big with refrigera-

early years of managing her family's Cold Spring, Minnesota-

tion, which means that a walk-in freezer and walk-in cooler are

based business, a popular cake shop in the state.

musts. Know the answers to questions like what's the biggest
batch you can do to be the most efficient.

Her advice now to aspiring cake decorators who want to open
their own retail shops?

Further, know your market and how to reach potential
customers. Know the demographics of the neighborhood you

"If you want to continue to be a decorator, you are going to

want to serve: age, income levels and other factors. "The target

have to ﬁnd someone to do the things you don't want to do,"

age for wedding cakes is 18 to 34, and moms are also very

she says.

important for the wedding cake business," Schurman says.

Accounting, training, managing staff and other non-decorating

And there is the essential question: Where will you get capital

tasks fall into the realm of what cake decorators may not think

to fund your business? For many, a home equity line of credit

about when considering the idea of starting their own busi-

is going to be necessary because banks require a personal

ness. Yet those are the skills that are more likely to determine

guarantee.

whether you ultimately become a success.
on credit cards because it will prove to be a long road ahead to

your business, bakery experts like Schurman agree. And don't

recoup the interest and charges.

think that if you already have a business you don't need a
written business plan. Every detail of your business should

Schurman and her family have successfully managed Cold

be mapped out - on paper - including short- and long-term

Spring Bakery, originally known as the Home Bakery, since it

ﬁnancial goals and even business succession plans.

was founded in 1946 by Melvin and Floss Schurman. In 1985,
the bakery was bought out by sons Dale Schurman and Bryan

Who will lead your business into the future? If you don't write it

Schurman along with his daughter-in-law Lynn Schurman.

down, you may be taking a big risk.
Additional production space was added in 2000, and in 2013,
For starting a business, Schurman recommends a detailed

the business added a second retail location with the Cold

list of what products you are going to make, what your costs

Spring Bakery Connection in Waite Park.

are going to be, and how you are going to sell. "You can't be
everything to everyone," she says as words of warning. "Decide

The Cold Spring Bakery sells 45 percent of its products retail

what you're going to make. Figure out ahead of time what your

and 55 percent wholesale, primarily through small supermar-

primary products are going to be and when to say no."

kets in the area. The bakery employs about 75 people.

06 < JAN 2018 | bakemag.com

©CHEKUNOV ALEXANDR - STOCK.ADOBE.COM

Experts agree that it is never a good idea to start your business
That's why writing a business plan is the blueprint for building
http://www.bakemag.com
bake - January 2018

Table of Contents for the Digital Edition of bake - January 2018
