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What You Need to Know Before You Start Your Bakery

by Kenny ChenNovember 8, 2019November 10, 201901253
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Over the years, bakery has always been one of the most popular food service establishments. People don’t just get bored with this pastry awesomeness that makes it a really good business option that you can try out. Even if you have no background in culinary, you don’t have to worry.

Opening a bakery is not something so simple yet it isn’t very complicated as well. As long as you have the commitment and determination to get it started, then you probably will make it.

In this article, you will find the steps and several tips on how to start a bakery of your own.

Well, let’s get started.

First, think about what kind of bakery that you want to open. There are several different types of bakeries and they also serve different kinds of customers. Primarily, there are two types of bakeries which are retail bakery and wholesale bakery. Let’s get into it one by one.

Retail Bakeries

This is the most common type of bakery that most people are already familiar with. Bakery cave, counter service bakery, bakery food trucks, specialty bakeries, and home bakeries are the few examples of retail bakeries. Each has its own advantages and disadvantages that you need to learn prior to making decision.

Wholesale Bakeries

This type of bakery sells baked goods to businesses such as grocery stores, restaurants, cafes, and others. Wholesale bakeries are larger than retail bakeries because they have to meet the commercial customers’ demands and produce in a higher volume. Compared to retail bakeries, wholesale bakeries require higher startup costs. You need to prepare your menu, banner, poster, etc to start promoting your bakery business offline and online.

Business Plan

Now, after deciding on a type of bakery that you want to open, you should plan it. Making a business plan is very important to create a fair perspective of your business and determine the right strategy in commencing your business. In creating a business plan, delve into these seven sections:

  • Executive Summary
  • Company Overview and Description
  • Market Analysis
  • Business Offerings
  • Management Plan and Ownership Structure
  • Marketing and Advertising Strategy
  • Financial Projections

Loans and Startup Capitals

To run a business, surely you need to have enough funds to start and run it. There are many costs that you need to consider in the bakery business. One of the most common ways for people to earn startup funds is by taking out loans. Either commercial loans, business lines of credit, or small business loans. Calculate the cost that you need and the number of sales that you need to make to reach the break-even point and gaining revenue, plan your finances carefully. This is one of the most important keys to a successful business.

Get a Space

Of course, you need a place to operate your business in. Retail bakeries need to be more accessible by customers and they need to be in places that are closer to them. However, wholesale bakeries can be located a little farther. But make sure that ease of transportation and accessibility are still good enough in the location.

Permits and Licenses

There are some permits and licenses for food service industry, and they are usually heavily regulated. In order to open a lawful business that is reliable, you will need to comply with the requirements of obtaining the permits and licenses according to your local laws and regulations.

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