How to Buy a Bakery & Cash Flow $170,000/year in 2023

Finder makes money from featured partners, but editorial opinions are our own. Advertiser disclosure

For many entrepreneurs, the idea of owning a bakery is an attractive proposition. Bakeries can generate cash flow anywhere between $17,971 and $600,000 a year, with an average cash flow of around $158,770.31 annually.

Here are the details on the revenue and cost to acquire a bakery, plus how to purchase a bakery in 2024. And, we include the best financing options for funding your business.

How much does a bakery make?

The average bakery* has an annual net cash flow of $158,770.31. This equates to roughly $13,230.86 a month over a span of a year. However, the profitability of your bakery business comes down to its location, size, rent, wages and more.

Chart: Cash flow range of bakeries currently listed for sale

Copy link to chart

Bakery	Annual net cash flow
1	$17,971
2	$19,733
3	$25,000
4	$27,497
5	$32,002
6	$32,173
7	$32,282
8	$36,874
9	$37,126
10	$37,873
11	$40,000
12	$41,923
13	$42,594
14	$42,915
15	$43,000
16	$50,000
17	$54,000
18	$54,000
19	$54,764
20	$56,000
21	$58,434
22	$59,901
23	$60,000
24	$60,000
25	$60,000
26	$60,000
27	$60,717
28	$61,308
29	$63,373
30	$65,000
31	$69,225
32	$70,496
33	$72,000
34	$75,000
35	$75,000
36	$75,000
37	$80,000
38	$81,146
39	$82,365
40	$86,000
41	$86,857
42	$88,000
43	$93,772
44	$95,000
45	$99,000
46	$99,000
47	$100,000
48	$100,000
49	$100,000
50	$100,000
51	$100,560
52	$101,939
53	$102,804
54	$106,289
55	$107,851
56	$110,000
57	$110,000
58	$111,076
59	$111,869
60	$114,946
61	$115,000
62	$115,024
63	$120,000
64	$120,000
65	$120,000
66	$120,916
67	$122,182
68	$125,000
69	$126,090
70	$129,504
71	$130,000
72	$133,000
73	$133,369
74	$140,000
75	$140,000
76	$143,000
77	$145,791
78	$150,000
79	$161,000
80	$163,000
81	$163,000
82	$163,399
83	$164,234
84	$165,519
85	$168,010
86	$168,056
87	$168,793
88	$169,520
89	$171,286
90	$175,000
91	$175,000
92	$175,000
93	$175,000
94	$175,000
95	$177,000
96	$177,982
97	$183,000
98	$194,458
99	$196,050
100	$206,080
101	$215,952
102	$219,000
103	$237,737
104	$247,381
105	$250,000
106	$250,001
107	$261,769
108	$271,608
109	$271,642
110	$272,485
111	$275,500
112	$275,640
113	$276,280
114	$279,000
115	$290,000
116	$300,000
117	$303,000
118	$356,706
119	$363,687
120	$364,338
121	$375,000
122	$428,233
123	$441,404
124	$509,051
125	$519,390
126	$545,365
127	$550,283
128	$575,000
129	$600,000

How to buy a bakery

Find a bakery for sale. You can find bakeries for sale locally or online. Online you can search "bakeries for sale near me" to find a list of business or broker websites that lists bakeries for sale. It's important to also take note of your finances by knowing how much you have saved towards the purchase of a new business, as well as how much you may need to borrow to buy the business.
Figure out what the business is worth. Use various valuation methods to get a general idea of the fair market value of the business you're trying to buy to make sure you're getting a good deal.
Do your due diligence on owning and operating a bakery. You'll want to weigh the pros and cons before taking the jump. Consider important factors that can affect the profitability of the business you're buying such as location, equipment, utilities and maintenance.
Get a business loan and make an offer. Unless you have a lot of cash on hand, you'll need a business loan to finance the purchase of a bakery. Check out our top picks of lenders for a bakery business loan. Once you're ready to buy, contact and negotiate with the seller or agent of the business and finalize your offer. It may be helpful to have a lawyer look over any negotiations and final contracts.

Our top picks for a bakery business loan

Go to site

Required time in business: 6+ months
Required monthly revenue: $10k+
Min credit score: No credit needed

Go to site

Required time in business: 6+ months
Required monthly revenue: $8k+
Min credit score: 520+

Go to site

Required time in business: 6+ months
Required annual revenue: $60k+
Min credit score: 550+

Cost of buying bakeries

The average bakery for sale costs $516,912.42*. Although prices vary widely depending on the location, the age of equipment and whether you're purchasing real estate as part of the deal. Many are listed well below the average price, and some are much higher than the average price, especially in urban locations.

With the average annual cash flow of a bakery at $158,770, you can expect to make back your investment in roughly 3.26 years - this translates roughly to a 30.72% APY.

Chart: Cost of bakeries available for sale

Copy link to chart

Bakery	Annual net cash flow
1	$35,000
2	$60,000
3	$65,000
4	$65,000
5	$70,000
6	$75,000
7	$75,000
8	$89,000
9	$95,000
10	$95,000
11	$99,000
12	$99,000
13	$99,000
14	$105,000
15	$110,000
16	$125,000
17	$125,000
18	$125,000
19	$125,000
20	$139,455
21	$145,000
22	$145,000
23	$149,000
24	$149,000
25	$149,000
26	$149,999
27	$150,000
28	$150,000
29	$150,000
30	$159,000
31	$159,000
32	$160,000
33	$160,000
34	$169,000
35	$169,900
36	$169,999
37	$170,000
38	$175,000
39	$175,000
40	$175,000
41	$195,000
42	$195,000
43	$195,000
44	$196,000
45	$199,000
46	$199,000
47	$199,000
48	$200,000
49	$200,000
50	$210,000
51	$210,000
52	$225,000
53	$225,000
54	$225,000
55	$225,000
56	$230,000
57	$239,000
58	$239,000
59	$245,000
60	$250,000
61	$250,000
62	$250,000
63	$250,000
64	$265,000
65	$275,000
66	$279,000
67	$285,000
68	$288,000
69	$289,000
70	$289,000
71	$299,000
72	$299,000
73	$299,000
74	$300,000
75	$324,000
76	$324,000
77	$325,000
78	$325,000
79	$335,000
80	$349,000
81	$360,000
82	$395,000
83	$399,000
84	$399,900
85	$400,000
86	$405,000
87	$410,000
88	$415,000
89	$425,000
90	$450,000
91	$450,000
92	$495,000
93	$499,000
94	$499,000
95	$500,000
96	$550,000
97	$550,000
98	$550,000
99	$575,000
100	$575,500
101	$576,000
102	$649,950
103	$650,000
104	$695,000
105	$700,000
106	$740,000
107	$750,000
108	$759,000
109	$795,000
110	$895,000
111	$899,000
112	$900,000
113	$923,000
114	$999,999
115	$1,000,000
116	$1,098,000
117	$1,200,000
118	$1,395,000
119	$1,400,000
120	$1,500,000
121	$1,550,000
122	$1,700,000
123	$1,750,000
124	$1,800,000
125	$2,100,000
126	$2,400,000
127	$2,500,000
128	$2,850,000
129	$6,950,000

Cost, revenue and cash flow of a bakery

The average price-to-cash flow (P/CF) ratio of a bakery business is 3.26. The P/CF ratio measures how much cash a company generates relative to its price. You might've heard of the term price-to-earning ratio (P/E ratio) before, which is a more commonly known ratio. Essentially, this measures how much you are paying for each dollar of the company's earnings.

The average operating cash flow margin of a bakery business is 0.18. The operating cash flow margin can be calculated by dividing operating cash flow by revenue. The operating cash flow margin reveals how effectively a company converts its sales to cash.

The average price-to-sales (P/S) ratio of a bakery business is 167%. The P/S ratio measures the revenue of the business divided by the cost, which indicates the percentage of the revenue you are paying for the company. Typically the lower the percentage, the better. However, it's best to look at a company's P/S ratio in comparison to the P/S ratios of similar companies in the same industry.

Chart: Cost, revenue, and cash flow breakdown of the lowest priced bakeries currently listed for sale

Copy link to chart

Bakery	Cost	Revenue	Cost flow
1	$35,000	$22,299	$17,971
2	$60,000	$335,398	$42,915
3	$65,000	$175,000	$75,000
4	$65,000	$360,000	$60,000
5	$70,000	$224,848	$19,733
6	$75,000	$150,000	$56,000
7	$75,000	$504,212	$54,764
8	$89,000	$202,884	$37,126
9	$95,000	$310,000	$40,000
10	$95,000	$314,364	$42,594

Chart: Cost, revenue, and cash flow breakdown of the highest priced bakeries currently listed for sale

Copy link to chart

Bakery	Cost	Revenue	Cost flow
1	$6,950,000	$11,046,107	$250,001
2	$2,850,000	$2,400,000	$575,000
3	$2,500,000	$4,270,398	$441,404
4	$2,400,000	$1,279,229	$363,687
5	$2,100,000	$1,607,000	$356,706
6	$1,800,000	$1,916,877	$545,365
7	$1,750,000	$3,100,000	$600,000
8	$1,700,000	$1,714,084	$550,283
9	$1,550,000	$3,620,497	$519,390
10	$1,500,000	$2,900,000	$303,000

Steps to buying a bakery

Buying this type of business involves finding one for sale, running the numbers and getting the right financing.

1. Search business listings

Start your search by Googling "bakeries for sale near me." This brings up a list of business or broker websites with this type of business for sale in your area. From there, you can search listings and contact the seller or agent to get more information. Loopnet.com, Bizbuysell.com and us.businessesforsale.com are also good places to start your search.

2. Determine what the business is worth

Determining what a business is worth is both an art and a science. While this is by no means a complete list of the valuation methods available, you can get a general idea of the fair market value of a business with these calculations.

Times revenue method. This is calculated by taking the revenue generated by a business over a certain period times a multiplier. The multiplier depends on the industry. For example, a retail company may be valued at 2.45x revenue, while a restaurant may be valued at 2.12x revenue.
Liquidation value. This value is calculated by adding up everything a business owns, including real estate, equipment and inventory, and then subtracting the company's liabilities and debts. This can give you a rough estimate of what a business is worth, although it doesn't take into account future earnings.
Discounted cash flow method. This calculation is based on projections of the future cash flows of a business, then discounts them to today based on inflation. It's a complex calculation best determined by using an NPV calculator.

Always consult with a qualified financial advisor if you have questions. In particular, look for a professional with the Accredited in Business Valuation (ABV) designation, which means they specialize in business valuation.

3. Do your due diligence

In addition to understanding what a particular business is worth, it's important to take into account the pros and cons before signing on the dotted line.

Here's a list of the top factors to consider:

Location. The most successful businesses are located in areas with a lot of retail stores and traffic. However, consider the type of customers you foresee frequenting your establishment and their specific needs.
Equipment. If your business requires special equipment, new equipment is more expensive upfront but can bolster your bottom line with reduced energy costs, less maintenance and more customers through the door.
Competition. Consider the local competition and what sets your business offering apart.
Utilities. If your business relies heavily on electricity, gas, water, trash and sewage services, you'll want to analyze the availability of these services and their costs carefully.
Insurance. This is a must-have for any public-facing business. You'll want to make sure you have sufficient coverage to pay for a range of unforeseen circumstances.
Maintenance. Who will do the repairs, mop the floors or answer the phone? While this business can be a part-time operation, no business is maintenance-free.
Security. Depending on the location, your business may require extra security features, like cameras.

As with any large business purchase, be sure to educate yourself thoroughly about buying and running that type of business. Many online resources are available from experts who can offer in-depth guidance for your particular industry.

4. Get financing and make an offer

Business loans come in a wide range of flavors, but the most commonly used types for buying a new business or business assets include SBA loans, like the SBA 7(a), 504 and microloan lending programs, equipment loans or personal loans. These loans are offered by banks, credit unions and online lenders.

Online business loan marketplaces like Lendio, Lendzi and Businessloans.com can also be a good place to start your search. You'll want to compare multiple loan types across several lenders to find the best deal.

Dive deeper: Average business loan rates by type

How to finance a bakery

Bakeries can be financed with these options:

Personal finances. Cash from savings, an inheritance or from selling another business can be an ideal way to finance your purchase.
SBA loan programs. The SBA 7(a) loan program could potentially be used to purchase this type of business. To qualify, you need to have a 700+ score, a minimum 20% down payment and financial statements from the business of interest.
Personal loan. Because they don't have a time-in-business or revenue requirement, personal loans can be another way to finance your purchase, especially if you can get a competitive rate.
Equipment loan. Equipment loans can sometimes be used to finance this type of business equipment, depending on the business's eligibility. But it may be trickier to get an equipment loan if your business is a mostly cash business or considered a restricted business.

Tip: If you're going for an SBA loan to purchase your business, try to find a preferred SBA lender to help push your application through faster.

Steps to get a loan for a bakery

Here are the steps to apply for a business loan:

Check your eligibility. This step involves checking your personal score and determining if you have any collateral to pledge if you choose a secured loan.
Gather your documentation. These typically include bank statements, tax returns, the business's financial statements and a personal guarantee.
Complete the application. Fill out the full application, upload documents or link your financial accounts and review the application for accuracy.
Wait for approval and funding. Next, you need to wait for approval and funding. SBA loans can take weeks to months to process.

Dive deeper: How to get a business loan

Where to buy a bakery

We've found bakeries publicly listed for sale in the following states. Updated daily.

State	# of bakeries for sale
Arizona	2
California	6
Colorado	6
Connecticut	7
Florida	16
Georgia	1
Hawaii	1
Idaho	1
Illinois	3
Iowa	1
Maine	1
Maryland	2
Massachusetts	3
Michigan	6
Minnesota	2
Mississippi	1
Missouri	4
Montana	1
Nevada	2
New Jersey	12
New Mexico	2
New York	28
North Carolina	4
North Dakota	1
Ohio	3
Oregon	3
Pennsylvania	3
South Carolina	5
South Dakota	3
Tennessee	2
Texas	12
Virginia	3
Washington	3
Wisconsin	1

The annual cash flow of the bakeries range from $17,971 to $600,000.

Chart: Cash flow of bakeries that are currently listed for sale

Copy link to chart

Bakery	Annual net cash flow
1	$17,971
2	$19,733
3	$25,000
4	$27,497
5	$32,002
6	$32,173
7	$32,282
8	$36,874
9	$37,126
10	$37,873
11	$40,000
12	$41,923
13	$42,594
14	$42,915
15	$43,000
16	$50,000
17	$54,000
18	$54,000
19	$54,764
20	$56,000
21	$58,434
22	$59,901
23	$60,000
24	$60,000
25	$60,000
26	$60,000
27	$60,717
28	$61,308
29	$63,373
30	$65,000
31	$69,225
32	$70,496
33	$72,000
34	$75,000
35	$75,000
36	$75,000
37	$80,000
38	$81,146
39	$82,365
40	$86,000
41	$86,857
42	$88,000
43	$93,772
44	$95,000
45	$99,000
46	$99,000
47	$100,000
48	$100,000
49	$100,000
50	$100,000
51	$100,560
52	$101,939
53	$102,804
54	$106,289
55	$107,851
56	$110,000
57	$110,000
58	$111,076
59	$111,869
60	$114,946
61	$115,000
62	$115,024
63	$120,000
64	$120,000
65	$120,000
66	$120,916
67	$122,182
68	$125,000
69	$126,090
70	$129,504
71	$130,000
72	$133,000
73	$133,369
74	$140,000
75	$140,000
76	$143,000
77	$145,791
78	$150,000
79	$161,000
80	$163,000
81	$163,000
82	$163,399
83	$164,234
84	$165,519
85	$168,010
86	$168,056
87	$168,793
88	$169,520
89	$171,286
90	$175,000
91	$175,000
92	$175,000
93	$175,000
94	$175,000
95	$177,000
96	$177,982
97	$183,000
98	$194,458
99	$196,050
100	$206,080
101	$215,952
102	$219,000
103	$237,737
104	$247,381
105	$250,000
106	$250,001
107	$261,769
108	$271,608
109	$271,642
110	$272,485
111	$275,500
112	$275,640
113	$276,280
114	$279,000
115	$290,000
116	$300,000
117	$303,000
118	$356,706
119	$363,687
120	$364,338
121	$375,000
122	$428,233
123	$441,404
124	$509,051
125	$519,390
126	$545,365
127	$550,283
128	$575,000
129	$600,000

*Based on 129 bakery that are listed for sale from businessesforsale.com.

Sources

businessesforsale.com

Compare business loan options for a bakery

Compare and find the right business loan for you.

1 - 6 of 6

Name	Min. Amount	Max. Amount	APR	Requirements
Olympus Business Capital Finder Score: 4.4 / 5: ★★★★★ Olympus Business Capital Finder Score: 4.4 / 5: ★★★★★	$500	$250,000	Not stated	Been in business for 6 months registered with the state, active and open bank account in business name, have $10,000 of revenue each month	No credit needed. Funding up to $250,000 with a variety of finance options to best fit your business needs.	Go to site Compare	loading Fetching your data...
$10M+ funded! Lendio business loans Finder Score: 4.8 / 5: ★★★★★ Lendio business loans Finder Score: 4.8 / 5: ★★★★★	$1,000	$10,000,000	Varies by lender	Operate business in US or Canada for 6 months or more, have a business bank account, minimum 520 personal credit score, at least $8,000 in monthly revenue.	Submit one simple application to potentially get offers from a network of over 75 legit business lenders.	Go to site More Info Compare	loading Fetching your data...
Fundera business loans Finder Score: 4.9 / 5: ★★★★★ Fundera business loans Finder Score: 4.9 / 5: ★★★★★	$2,500	$5,000,000	Varies based on lenders	$60,000+ of annual revenue, 550+ personal credit score, in business for 6+ months	Get connected with short-term funding, SBA loans, lines of credit and more.	Go to site More Info Compare	loading Fetching your data...
Fora Financial business loans Finder Score: 4.5 / 5: ★★★★★ Fora Financial business loans Finder Score: 4.5 / 5: ★★★★★	$5,000	$1,500,000	Varies	6+ months in business, $25,000+ gross monthly sales, no open bankruptcies	Get qualified for funding in minutes for up to $1,500,000 without affecting your credit score. Best for companies with at least six figures in annual revenue.	Go to site More Info Compare	loading Fetching your data...
National Funding business loans Finder Score: 4.6 / 5: ★★★★★ National Funding business loans Finder Score: 4.6 / 5: ★★★★★	$5,000	$500,000	Undisclosed	In business 6+ months and make at least $250,000 in annual sales. Other loan types have additional requirements.	Working capital loans and equipment financing, some high-risk industries may be eligible.	Go to site Compare	loading Fetching your data...
American Express® Business Line of Credit Finder Score: 4.4 / 5: ★★★★★ American Express® Business Line of Credit Finder Score: 4.4 / 5: ★★★★★	$2,000	$250,000	N/A	Minimum FICO score of at least 660 at the time of application, have started your business at least a year ago, and an average monthly revenue of at least $3,000	Access lines of credit for your small business even if you aren't currently an Amex customer.	Go to site More Info Compare	loading Fetching your data...

Thank you for your feedback!

To make sure you get accurate and helpful information, this guide has been edited by Megan B. Shepherd as part of our fact-checking process.

Written by

Kat Aoki

Writer

Kat Aoki was a personal finance writer at Finder, specializing in consumer and business lending. She’s written thousands of articles to help consumers make better decisions on their home loans, bank accounts, credit cards, cryptocurrency and more. Kat is well versed in working with leading brands in the real estate, mortgage and personal finance industries, and her expertise has been featured on Forbes Advisor, Lifewire and financial comparison sites like iSelect and realestate.com.au. She holds a BS in business administration from California State University, Sacramento and enjoys hiking and yoga in her spare time. See full bio

Kat's expertise

Kat has written 187 Finder guides across topics including:

Mortgages
Home equity loans
Mortgage refinancing

More resources on Finder

4 tips to get funding for women-owned businesses Best commercial truck financing of 2024

More guides on Finder

Revenue-Based Business Loans: How Do They Work?
Get the capital your business needs to grow with repayments that adapt to your revenue.
5 Best Business (Merchant) Cash Advances in 2024
Compare business cash advances from a variety of lenders and the pros and cons of each option.
6 Best Alternative Business Loans: Faster & Easier
Compare alternative business lenders and loan types, including business lines of credit, invoice factoring and equipment loans.
National Business Capital: No Restrictions, Fast Loans
Get a business loan to grow your company. ✓ High maximum loan amounts ✓ No restrictions on loan purpose ✓ Quick turnaround time ✓ High approval rate
6 Best Instant Approval Business Lines of Credit
Compare some of the best lenders that offer instant approval business lines of credit and the pros and cons of each.
6 Best Startup Business Lines of Credit in 2024
Compare business lines of credit, the requirements needed to qualify and other types of business financing.
Medical Practice Loans: 8 Types to Consider
Compare top business financing options to fund a medical practice.
BHG Financial Business Loans Review: Low Max Loan Amount
BHG Money is a nonbank lender that offers investment, debt consolidation, startup and healthcare-related loans to licensed professionals. Borrow up to $250K with minimal requirements.
Shopify Capital Review: Easy But Potentially Costly Cash
Current merchants may be able to take advantage of a loan with extremely flexible repayments
Fora Financial business loans review
Get funding of up to $500,000 with the benefit of early repayment discounts for qualifying borrowers.

Ask a question

Click here to cancel reply.

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

How to buy a bakery

The cost, revenue, and profitability of starting a bakery business, including how to get a loan to start a bakery.

How much does a bakery make?

Chart: Cash flow range of bakeries currently listed for sale

How to buy a bakery

Our top picks for a bakery business loan

Cost of buying bakeries

Chart: Cost of bakeries available for sale

Cost, revenue and cash flow of a bakery

Chart: Cost, revenue, and cash flow breakdown of the lowest priced bakeries currently listed for sale

Chart: Cost, revenue, and cash flow breakdown of the highest priced bakeries currently listed for sale

Steps to buying a bakery

1. Search business listings

2. Determine what the business is worth

3. Do your due diligence

4. Get financing and make an offer

How to finance a bakery

Steps to get a loan for a bakery

Where to buy a bakery

Chart: Cash flow of bakeries that are currently listed for sale

Sources

Compare business loan options for a bakery

Kat Aoki

More guides on Finder

Ask a question

Advertiser Disclosure