If you love to bake and want to be your own boss it might be a good idea to start a bakery. But if you want to be able to run your bakery and pay your bills, you'll need to start with some smart planning and a realistic idea of how much money you can earn. You're not likely to get rich running a small bakery. However, you can provide a wonderful service to your town, indulge your love for baking, and make plenty enough money to get by.
The first decision you need to make is whether you want to take up a franchise, purchase an existing bakery, buy a new one or start one out of your home. If you're purchasing an existing bakery, find out why it's being sold and check the equipment. But whatever you plan to do, it's better to seek professional advice before taking the plunge. Ascertain the initial investment that'll be required and the kind of profits you can expect.
A bakery business takes time to grow and prosper, so make sure that you have sufficient working capital to sustain yourself until then. Consult your accountant to make projections about capital requirements, overheads and potential revenues. This is where a detailed business plan will come in handy.
The most vital thing to consider while starting a bakery is the location. Ensure that the location has a wide potential customer base. Around 1,000-2,000 families should serve your purpose. Also, you need to size up your competition. Find out how many established bakeries are already operating in the vicinity. This should tell you whether it's viable to begin another bakery in the area. While deciding on a location, also figure out if there are schools, colleges or movie theatres in close proximity. Competition is not necessarily a bad thing. Competition may also unintentionally end up sending business your way. It's all about how you use your marketing strategy to turn your competition into an advantage.
Bakeries have to adhere to all the rules and regulations of any other food service business. You'll need to go through all the steps to open a normal business, plus you'll need to meet health board requirements, pass an inspection, and meet any other requirements. If you want to have an outside seating area, you'll need to get permission for that too.
Expect to pay a lot for advertising until you build up a regular clientele. Invest in good business cards, brochures, ads in telephone books, and ads in local newspapers or magazines. If you can possibly afford it, include a coupon for a free cupcake or cookie.
If you need to start small, consider starting your bakery in your home. Your overhead will be less, which can help with cash flow when you first start out. But if you're not going to have a retail location, you'll need to make partnerships with local restaurants, coffee shops, and possibly even other local bakeries.
Smart pricing is going to be critical to your success. People will pay for quality, but the quality has to be there. Refer to your business plan for how to price your products. If you are going after extremely high-end clientele, put all your money into the quality of your goods, deliver a superior product, and people will be willing to pay for it.
Operating a bakery requires a great deal of work, thrift and planning. But it can also be very gratifying when you see your dreams turned into reality. With the right dose of effort and skill you can have your cake and eat it too.
The first decision you need to make is whether you want to take up a franchise, purchase an existing bakery, buy a new one or start one out of your home. If you're purchasing an existing bakery, find out why it's being sold and check the equipment. But whatever you plan to do, it's better to seek professional advice before taking the plunge. Ascertain the initial investment that'll be required and the kind of profits you can expect.
A bakery business takes time to grow and prosper, so make sure that you have sufficient working capital to sustain yourself until then. Consult your accountant to make projections about capital requirements, overheads and potential revenues. This is where a detailed business plan will come in handy.
The most vital thing to consider while starting a bakery is the location. Ensure that the location has a wide potential customer base. Around 1,000-2,000 families should serve your purpose. Also, you need to size up your competition. Find out how many established bakeries are already operating in the vicinity. This should tell you whether it's viable to begin another bakery in the area. While deciding on a location, also figure out if there are schools, colleges or movie theatres in close proximity. Competition is not necessarily a bad thing. Competition may also unintentionally end up sending business your way. It's all about how you use your marketing strategy to turn your competition into an advantage.
Bakeries have to adhere to all the rules and regulations of any other food service business. You'll need to go through all the steps to open a normal business, plus you'll need to meet health board requirements, pass an inspection, and meet any other requirements. If you want to have an outside seating area, you'll need to get permission for that too.
Expect to pay a lot for advertising until you build up a regular clientele. Invest in good business cards, brochures, ads in telephone books, and ads in local newspapers or magazines. If you can possibly afford it, include a coupon for a free cupcake or cookie.
If you need to start small, consider starting your bakery in your home. Your overhead will be less, which can help with cash flow when you first start out. But if you're not going to have a retail location, you'll need to make partnerships with local restaurants, coffee shops, and possibly even other local bakeries.
Smart pricing is going to be critical to your success. People will pay for quality, but the quality has to be there. Refer to your business plan for how to price your products. If you are going after extremely high-end clientele, put all your money into the quality of your goods, deliver a superior product, and people will be willing to pay for it.
Operating a bakery requires a great deal of work, thrift and planning. But it can also be very gratifying when you see your dreams turned into reality. With the right dose of effort and skill you can have your cake and eat it too.