Do you always make killer cakes for birthdays? Or are you the one who churns out mouth watering donuts for the family?
If you’re planning to turn your baking talents into a profitable bakery, you’re at the right place.
We interviewed a few successful bakers who are always ready to share their best business advice.
This guide will walk you through everything you need to start and run a successful bakery. Here are seven ways to open and run a successful bakery.
Decide the kind of bakery you’d like to open
The first decision you should make is to decide what kind of shop you’d love to open. To start with, you need to access your goals, budget, and talents. Be sure not to get in a hurry about these decisions- always dive deep and stay abreast of the current trend in the bakery industry. Following any cupcake-focused TV shows?
Be sure to also do local market research to discover how current market situations might influence your target location and demographic.
From there: check out the following options and figure out which work for you?
You don’t have to open a physical bakery. Creating an online store could help. Employ a web designer to help create a killer website. Have the pictures of your works displayed on your website and create a payment method for customers to place their orders. You can do all these from your home comfort.
You can choose to create a small commercial space where you can have your customers walk up to and pick up their favorite baked goods. This is more like a managed counter.
You could specialize in selling certain kinds of baked goods. In such a situation, we recommend going for a specialty service. Hence you can decide to run your business from home or rent a commercial space. That’s totally up to you.
Sit down and dine is a growing trend in the bakery world today. You can decide to dive into this trend. Create a space where customers can order their baked goods and an extra spot where they can sit down, relax, and enjoy their order.
Create a business plan
Once you’re able to decide what kind of bakery you would love to open, next is to write a business plan. Business plans allow you to view your business from multiple angles. This way, you will be able to set your business goals, brainstorm revenue-generating ideas, list expenses, understand the customer base, and study your competitors.
Figure out your startup Capital
Finance is a crucial part of a business plan. You need to figure out your startup funds. You can start by compiling a list of appliances- from larger items like ovens and refrigerators to small-sized items like pans and utensils, always list out all the necessary tools.
Remember, you’re not going to make money overnight, so you must figure out how much you can afford to invest and how much will be left with you to survive until you start making profits. Also, make sure you have a baker business card.
Plan ahead for space
If you plan to run your bakery from home; chances are you already have the space figured out. But if you want to run a bakery shop, a formal spot with a kitchen and a public area should be your top priority.
I’ve seen some bakers decide to rent out a kitchen space only. This option is good if you don’t like the idea of customers walking through your shop. However, you’ll have to rent a kitchen that is larger and more equipped.
No matter your needs, be choosy. Test different products, compare their prices, and seek advice from neighboring businesses, and do a proper feasibility study of an area before making a choice. You could check out small business incubator programs that provide mentorship programs or business training at a discounted price. Also, consider the legal requirements-which usually vary among states-for example obtaining a license that allows you to bake out of your home.
Regardless of where you decide to start your bakery business, be sure to consider their good and bad and their respective costs.
Set your price
Many bakers calculate their retail selling price based on the supply cost and the time it took them to prepare the goods. However, this strategy is flawed.
Your price should also be determined by things like packaging, clean up time, and social media promotion time. The highest cost of starting a bakery is time. You might easily forget the time spent on preparing flowers before you were watching your favorite TV series while doing it.
Create a well defined family and friend policy
Before starting your bakery business, know that family and friends will likely request for a discount.
If you only plan to sell cookies and cakes as a side gig, you can give your boss or a neighbor a discount, but when you’re running a business, it’s different. Those family and friends who usually buy your cake at the cost of an ingredient would have to be made to understand that you are now running a profitable business.
Those who love you will understand that you are in this business to make a profit so you can pay your rent and feed the family. If you feel it’s worth it offering a 10% discount to your family and friends, that’s up to you, but regardless of your policy, be sure it is consistent.
When it comes to family and friends, you will need their assistance in your baking business. Starting a new business consumes time. The time you spent on baking is only a little of the commitment. You’ll have to promote your business, accept an order, assist customers with their questions, and do different administrative works.
It can be more challenging if you have no one to cheer you on. It could be your spouse, a mentor, your colleague, or just about anyone who believes in you.
Following these tips, you will be able to create and run a successful bakery.