Home Bakery Business Proposal Letter

Running a business from home takes a lot of skill, patience, and business knowledge. It is far more difficult to run a business from home than to run it in a professional setting and with more than one employee. In the initial days, the entire responsibility of the business may fall on the baker, and he may have to bear financial losses entirely by himself.

A baker may opt for a home business if he thinks he is talented and has to offer something different to the market. However, for any business to run successfully, a baker running a business from home will require a well-thought business plan. A good marketing strategy also needs to be put in place and some investment should be available to buy the raw material for his bakery.

Alternatively, a home baker may make a business proposal with a company or a professional bakery. He can supply his baked good to the bakery daily for a fixed sum of money per day. This will have many advantages, for example, he will not have to worry about marketing his product and will have a fixed daily wage instead of a wage only on days his items sell.

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For this business proposition to work, he needs to write a convincing proposal letter to the company or a bakery to buy his baked items daily in bulk. The following points should be kept in mind before writing this business proposal letter

  • Make sure your items are appropriate for the market. You can make an analysis of the bestselling bakery items by visiting bakeries in your area regularly. You need to make sure that your food items would be sold and the company that agrees to do business with you won’t have to bear the financial loss. Try to pick items that will be most profitable, for example, donuts and pastries usually appeal to people of ages so they would sell more.
  • Try to convince the buyer of how your product is different from other competitors in the area and how this business proposition could be profitable to both parties.
  • Offer a reasonable buying price to them initially. This price can go up depending on the sale of your baked goods through their bakery.
  • Be polite and convincing. Always remember that there is always another baker out there that they can hire. You have to make sure that you stand out amongst your competitors in order for this business proposition to work.

Here is a sample home bakery business proposal letter.

Sample Letter

To
Ms. Julia Stiles
Sales Manager
Julia Bakery and Co.

From
Amanda Houston

7th September 20XX

Subject: Home bakery business proposal letter.

Dear Ms. Julia,

Good day. I would begin this letter by appreciating your bakery business and the quality of the food items your bakery has maintained throughout the years. I am a small home baker based in Green Street. I have been making cakes and donuts for the past seven months and have made quite a lot of loyal clients through this small business. I have a degree in culinary arts from the Juilliard Culinary school. I specialize in making rainbow icing for cakes which is not available anywhere else in the area. My clients are also particularly a fan of my donuts which are light and fluffy.

I am looking to expand my business in the East England area. As your bakery is well reputed and known for good quality items, I would like to make a business proposition with you. I offer to supply 15 cakes and 100 donuts every day to your bakery at a wholesale rate. I have attached a document stating the price of all the items I can provide. We can start with cakes and donuts and then add more items to the menu later as per your requirement. This business affiliation will help bring my regular clients to your bakery and will help me expand my business beyond my hometown.

Please feel free to contact me for any further details at [email protected] Looking forward to hearing from you

Regards

Amanda Houston

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Home Bakery Business Proposal Letter

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