How to Start Business Bakery With Successful Results
In the food and beverage business world, the bakery is one of the popular varieties. While it can help you to express your creativity with food, it also provides different challenges for the business owner. If you come from a non-culinary background opening bakery business can be even more challenging than before. So, here are presented the steps on how to start business bakery to help you open your own bakery and dive down to the business world.
Getting to know the bakery types
It is important to understand the types of bakeries before you go on how to start business bakery. this will determine who will be your customers. The types of bakeries are generally divided into two categories, wholesale and retail bakery.
1. Retail bakery
This type of bakery is the most common one. They sell the bread and baked goods to the customers directly. They can come in different types such as bakery cafe, bakery food trucks, counter service, specialty bakeries, and home bakeries.
2. Wholesale Bakery
Different from the retail in which it sells directly to the customers, wholesale bakeries market their goods to other businesses such as restaurants, cafes, delis, and grocery stores.
Wholesale types usually much larger than the retail types. This is because they need to fulfill the demands of commercial customers. They also do not have to be located in some strategic area but they must produce massive numbers of baked goods so what they need is a larger space filled with plenty of equipment for baking. This can result in a high cost for a startup.
Steps in starting a bakery business
Now that you know the types of bakeries and decided what is yours going to be, it is time to get into the detail steps on how to start business bakery.
1. Business plan
A business plan acts as a foundation for all kinds of businesses not to exclude a bakery business. Inside a business plan are the layout of the type of business, the structure, what products to sell, strategy for marketing and also the projection of the finance.
The main sections of a business plan include an executive summary, overview, and description of the company, analysis of the market, offerings from the business, ownership structure and management plan, advertising, and marketing strategy, financial projection.
2. The startup capital
In a startup of any kind of business, there should be costs to cover. In starting a bakery, the costs you need to consider are for the equipment, hiring the staff, leasing space, stocking kitchen, utility payment and also for insurance. That is why you need a certain amount of money as your capital. If you and your partner have not enough money to cover it, it is time for you to take loans.
3. Commercial space
When the funding issue has been covered, now you can start finding a place for your bakery. In choosing space it is depending on what type of bakery you want to have. For example, if you want to open a retail bakery, then you must find a place in a central location, and wholesale bakery should find a large space and it can be located far from the center or area with dense population.
4. Licenses and permits
You need to gain certain permits or licenses first before you open your bakery. This is because regulations are heavy in the food industry. The types of licenses and permits will be different based on the location where you are. Conduct proper research on the regulations and laws to see what kind of permits you need for opening your bakery business.
5. Layout design
When you found the space and location where the bakery will be placed, you need to design the layout for your bakery. This includes the equipment that you need and the organization of your kitchen. If you have a retail type of bakery and there a front house area on it, then it is necessary to have a floor plan.
6. Bakery equipment
The type of equipment you will order is depending on what type of baked goods you will produce. And a specific type of equipment will change based on the type and size of your bakery. The list you need to consider in choosing the type of equipment is the dough preparation, storage, baking equipment, sales and display, ware washing and cleaning equipment.
7. Hiring staff
The number of staff you have will depend on the bakery type and size. You can hire one or two people with formal training experience to supervise the baking process and make sure that the job is done correctly. However, you can hire unskilled people for the washing work, ingredients mixing, packaging and all other work that do not need special experience and skill. In other types of bakeries such as specialty, you will need someone whose skill and experience are qualified in completing special tasks in certain bakery making.
8. Advertising and Marketing
There are several major steps in the marketing strategy for your bakery. You must first conduct the research for the market, then write an analysis of the market, set the marketing goals, determine the advertising strategies, and create social media existence. These steps will do well on retail bakeries, but for a wholesale bakery, it will be different. Wholesale bakeries must focus more on the competitors. Find out what restaurants or grocery stores and approach them to make a deal.
9. The opening
The last one on how to start business bakery steps is the opening. Advertise the grand opening of your new bakery to create interest from people. Let them know when and what to expect in your grand opening such as a great discount. A successful opening will hopefully get you a good start in the business and create loyal customers.
One way to create a successful bakery business is to have a detailed plan and to follow it. In case of a problem with laws and licensing, make sure you have all the documents and get all the required licenses Keep everything organized and make sure being thorough will keep you prepared even when you find obstacles get in the way of your business.