WorldExecutivesDigest.com | The Complete Guide on How to Start a Bakery | Are you trying to learn more about how to start a bakery? If yes, you should check out our detailed guide by clicking right here.
Your cakes are the talk of the town. Whenever you send them with your child to the school bake sale, they are the first thing to sell out. Everyone asks you when you’re going to start your own bakery.
You’ve never put much thought into that question until about the fifth bake sale. Why not drop your boring 9-5 to follow a pastime that you love? The only problem is that you’re not sure how to start a bakery.
We have you covered on that front. Check out this guide for a few basic steps that will help you get your business up and running.
Ask Yourself What Kind of Bakery You Want to Open
Before you can begin writing up your business plan, you’ll have to figure out what kind of bakery you want to open up. Your decision will be heavily based on how much funding you manage to get and of course, what your goals are.
If you can’t afford a building at all, you can always spring for an online business. Create a website and allow people to make their selections right from the comfort of their homes.
If you only have enough funding for a small building, consider a counter service. You’ll make the baked goods in the store and allow customers to come up to the counter to pick them up.
If you get approved for a rather large loan, a sit-down service is a viable option. It’ll be a place where people can grab a doughnut and chill for a little while.
Write Up Your Business Plan
Now that you’ve figured out what kind of business you want to open, you can start writing up your business plan. In this plan, you’ll define what your goals for the business are.
You’ll crunch numbers to figure out how much money you’ll need to get started. You’ll analyze your area and take a hard look at your competition and target market.
Obtain Your Funding
In your business plan, you’ll also write down where you’re going to be getting your funding. As far as loans go, you have a few options.
First, there’s the basic traditional commercial loan. You can go to almost any bank to start the application process and the interest rate will be pretty low if you get approved. This type of loan will give you the most amount of money but you’ll need a high credit score and you may have to wait months before getting approved.
A business line of credit is basically a credit card with a certain approved amount on it that you can spend on the things you need for the bakery. As you pay off the loan amount, you’ll get access to more money and don’t worry, the interest rate will be low. You won’t be able to get a lot of funding but it will be enough to get your business started.
If you don’t have a high credit score, you should try for a small business loan. The requirements aren’t as high as traditional commercial loans and the interest rate won’t be unmanageable. We will say that you might have to offer something up as collateral.
Shop Around for a Space to Work Out of
You’ve got the money in your hand and are ready to rent out your workspace. If you’ll be working out of your home, this process is already done for you. If you’re not working out of your home, consider the following tips.
Even if you fall in love with a building, don’t commit yet. Look at a few different spaces so you have multiple price quotes to play around with. Visit the shops that surround the building that you’re considering.
Check to see how much competition you have in the area. Do your research before sinking your money into a building that may or may not work for you.
Get Your Permits and Licensing
Before opening up your bakery for business, you have to get your permits and licensing out of the way. If you don’t you’ll be shut down before you can sell your first cupcake.
The paperwork you need will vary depending on the area you’re in so make sure to check with your local law office for specifics.
While you’re doing paperwork, you should also get bakery insurance. It will protect your small business in the event something unfortunate occurs.
Order Your Equipment
You can’t do anything without baking equipment. You’re going to need commercial mixers, tables to put the mixer and other equipment on, dough scales, and refrigerators.
Of course, your kitchen should be organized so invest in storage and shelving. You can’t sell raw dough to customers so you’ll need an oven to bake your food in.
Speaking of your food, think about display cases so customers can physically see what you have to offer. Lastly, wash stations are important for keeping yourself and your equipment sanitary.
Marketing Your Business
You could have the best cakes in town but if nobody knows about them, it’s not going to do you much good. You’ve got to market your product.
Startup a blog that you can link to your social media account. Use your social media page to promote your bakery and tell people about specials and discounts as well.
Partner up with business groups in your area. You’ll be able to create lasting relationships with other businesses and do some networking.
How to Start a Bakery That’s Successful
If you bake delicious cakes it may benefit you financially to figure out how to start a bakery of your own. Purchasing a building and selling your cakes aren’t the only steps that should be in your plan. You need well thought out goals, funding, and marketing ideas to make your dream a reality.
Did these tips help you get your bakery business up and running? Check out our blog daily for more posts like this one.