The demand for baking businesses has significantly grown in the last few years, with many entrepreneurs choosing to sell cupcakes, cakes, and cookies from home or within a small retail space.
Are you the one who makes cakes for everyone’s birthday, or perhaps you’ve always dreamt of giving up your day job and opening your own bakery? If you’re ready to turn your flair for baking into a profitable business, you’ve come to the right place.
Starting your very own bakery may seem like a bundle of fun, but there’s a great deal of work involved if you want to turn your dream into a reality. Here’s an overview of what it takes to set up your own bakery:
Decide on the type of bakery you’d like to open
One of the first major decisions to make is determining the type of bakery you’d like to open, dependent on your skills, budget, and interests. It would be sensible to carry out some market research within your local area to give you an idea of where there’s a niche, and if there are any competitive businesses on your doorstep.
Some of the business options you could consider include:
- Counter service
- Sit down and dine
- Specialty celebration service
Once you’ve decided on a bakery niche, it would be wise to create two items to begin with, to determine what’s profitable and what’s popular amongst your customers, before building your list of items.
Write a business plan
It’s fundamental to write a clear and concise business plan that forces you to look over your business idea from every viewpoint; including finances, long-term goals, and marketing techniques.
Start-up costs are one of the major pointers that needs close attention within your business plan, as you’ll have to determine where you’ll retrieve the adequate funds to get your business up and running. Many entrepreneurs use their own savings initially, while others are lucky enough to secure investors through their impressive business plan.
To work out your costs, compile a list of all of the equipment you’re going to need (refrigerator, oven, blender, simple utensils and ingredients) alongside the rental costs of your workplace premises and the extra money you’ll need to live on before generating a profit.
Shop around for energy bills
As a bakery business, one of the largest expenses you’re likely to encounter is your monthly/yearly outlay on energy bills. The price of gas, in particular, is set to rise dramatically in the coming years; therefore, it should be in your best interests to find the best prices to save you money upon first starting out. Rest assured, an energy price comparison site such as Utility Bidder does the hard work for you, by comparing gas prices from the best suppliers and securing a long-term business contract.
Obtain laws and permits
It’s essential to find out the laws and regulations within your area when it comes to the food industry. Attain any licenses and permits needed to get up and running, by making an inquiry to your city or county officials and find out if you need to accumulate a food tax.