How to Start a Bakery | Step By Step Guide For Beginners
How to Start a Bakery | Step By Step Guide For Beginners
Can you turn flour, egg, yeast etc. into something that is quite great to taste? If Yes, do you make stippends or good cash from it? Or Have you thought of making extra cash from this great gift of yours? Well, if you are not making money from it, then you’re probably have not harnessed all the fruit your gift comes with.
If you’re ready to turn your talents into a profitable bakery, you’ve come to the right place.
This guide is meant to give you all the ingredients you need to plan, start, and grow a successful bakery.
To get your piece of the pie, combine these tips with your impressive baking talents and you’ll be on your way to success.
Select the kind of bakery you’d like to open
Before you start your journey of becoming a billionaire, you first need to choose your area of specialization. the kind of bakery you’d like to open is one of the foremost decisions you’ll have to make. To do this, you’ll have to assess your talents, capital, and goals. Be sure you’re not making this decision in a bubble—you will want to have your ear to the ground on trends in the industry—remember the cupcake shop craze?
It’s important to do local market research to figure out how national currents will affect your particular location and demographic. From there: take a look at the list below and decide which one is right for you.
- Online. You don’t need a storefront to open a bakery. You can start out online. With a killer website, pictures of your work, and a way to place an order, you can run it from your home.
- Counter service. With a small commercial space, customers can walk in and pick up baked goods from an employee-managed counter.
- Specialty service. If you plan to specialize in a certain kind of baked good, a specialty service is your best option. Whether you run the business from your home or rent a space is up to you.
- Sit down. More owners are trying to capitalize on the sit-down and dine option. It’s a growing trend in the bakery industry right now. Picture a space that has both an area to order baked goods and spot to sit and enjoy them.
Write a business plan
When you are done making up your mind on the type of bakery you want to open, next up is to create a business plan. This will force you to look at the business from every angle. It will help you define your business, set goals, find ways to generate revenue, list expenses, identify your customer base, and examine your competition.
Assess your startup funds
As earlier mentioned, start up cash or capital is another key thing you need to fix. You’ll need to make a list of equipment, from appliances like ovens and refrigerators, to smaller items like utensils and pans. Make sure you create a full list of tools. The equipment will be a one-time hit, but you’ll also need money to live on while the business gets established.
You won’t make profits overnight, so you need to sit down and figure out when you’ll break even and how much money you’ll need to survive until that time.
Find A Space – If Necessary
If you’re running a bakery from your home, you’ve already got your space figured out. If you plan to invite customers into your shop, you’ll need a formal spot with a kitchen and an area for the public. Some bakers decide to rent out commercial kitchen space only. It’s a good option if you don’t want customers to walk through your shop, and just need a bigger, more equipped kitchen.
Whatever your needs, be picky. Shop around, compare prices, talk with neighboring businesses, and research the area to make sure you find the right space. Do not forget to consider the legal necessaries—such as obtaining a license to bake out of your own kitchen.
Wherever you decide to run your bakery, be sure to think through the pros and cons and their related costs.
Price your baked goods
Most bakers base their retail price points on the cost of supplies and the time it takes to make the goods, but some others believe this formula is flawed.
Your prices should include things like clean up time, packaging, and time spent promoting your business on social media. “The biggest hidden cost in a bakery is time. It’s easy to forget the time you spent making flowers because you were watching TV while you did it.”
Have a defined friends and family policy
Before you sell your first scone, be aware that friends and family will probably ask for a discount.
When you’re selling cakes and cookies as a side gig, it’s fine to give the neighbor or the even your ex a discount, but when you start your business, it’s different. “All those wonderful people who previously bought cakes off of you for the cost of ingredients are going to need to be re-educated about what you’re doing now,”
Those who really love and support you will also understand your need to feed your family and pay your rent. If you want to offer a 10 percent discount to friends and family, that’s fine, but whatever your policy is, make sure it’s consistent.
Speaking of friends and family, a support system is crucial in the baking business, Opening a business is time-consuming. Time spent baking is only half the commitment. You’ll need to market your business, take orders, help customers, and do an array of administrative tasks.
If you don’t have someone cheering you on, it can be hard. Whether it’s your spouse, a colleague, or business mentor, you need someone in your corner.
How To Find And Retain Customers
For every business, there is one ingredient every successful business needs? Customers. This next segment will help you find and retain customers.
Be the best, the first, or the only one
Be original. These two words might seem like generic advice, but to survive, you can’t be a carbon copy of your competitors. Be the best, the first, or the only one baking the kind of treats you make.
Know what kind of competition you have in your area and work to set yourself apart.
Never stop experimenting relentlessly to create recipes that taste amazing, know they are free of animal by products, gluten, pesky preservatives and all that other nasty stuff.
Be prepared to market your product
You can spend all day and night in the kitchen creating the next best cake, but if no one knows about it, it doesn’t matter. That’s why you have to set aside time and money to market your business.
Being a fabulous baker doesn’t guarantee success. “You also have to be a fabulous marketer too.” Too many bakers get wrapped up in technique, but “perfect ganached edges mean nothing if you have no actual orders on which to have perfect ganached edges.”
Here are a few low cost or free marketing ideas:
Use social media: Social media is a great way to promote your business. If you’re short on time, pick one social media site and post consistently.
Join groups: As with any business, networking can bring in more customers. Join local business groups like your chamber of commerce or small business association and forge relationships.
Focus on your customers
Your customers are your key to success. Happy customers become repeat customers, so work to make each customer experience memorable, Batiste says.
Ask your customers for feedback, talk with them at the counter, and ask for product suggestion once in a while. Make the customer experience count. “That’s the best way to get repeat customers and money in the register.”
Grow your bakery
Once the bakery is up and running, you can start thinking about growth. We’ve got a few tips to make sure it continues to thrive.
- Diversify: Most bakeries are busy during the warm months. Shoppers that are out and about are likely to wander into your shop on sunny summer days. Plus, summer is full of parties like graduations and weddings. The end of the year will be busy too, as the holidays are always a hectic time for bakers.
- Hire help: When the orders pile up and you need more hands in the kitchen, you’ll have to make your first hire. Don’t hire anyone immediately and put new hires on a probation period. You want to make sure they are trustworthy and have the capability to learn.
- Don’t forget about marketing: Your initial marketing strategies will hopefully result in a steady stream of repeat customers, but that doesn’t mean you should let up on your marketing efforts. Try new marketing tactics