5 Things You Should Know Before Opening A Bakery

You‌ ‌are probably‌ ‌are‌ ‌a‌ ‌great‌ ‌baker‌ ‌and‌ ‌want‌ ‌to‌ ‌take‌ ‌your‌ ‌skills‌ commercial ‌by‌ ‌owning‌ ‌your‌ ‌bakery, ‌but‌ ‌the‌ ‌shocking‌ ‌news‌ ‌is, ‌having‌ ‌the‌ ‌culinary‌ ‌skills‌ ‌aren’t‌ ‌enough. ‌ ‌

Opening‌ ‌a‌ ‌bakery‌ requires careful and deliberate planning. It‌ ‌is‌ ‌a‌ ‌process‌ ‌and‌ ‌each‌ ‌stage‌ ‌must‌ ‌be‌ ‌carried‌ ‌out‌ ‌carefully. ‌ ‌

We‌ ‌have‌ ‌compiled‌ ‌a‌ ‌list‌ ‌of‌ ‌six‌ ‌things‌ ‌you‌ ‌should‌ ‌know‌ ‌before‌ ‌opening‌ ‌a‌ ‌bakery. ‌ ‌

1) Find a Niche‌ ‌

Having‌ ‌the‌ ‌interest‌ ‌in‌ ‌starting‌ ‌up‌ ‌your‌ ‌own‌ ‌bakery‌ ‌isn’t‌ ‌enough, ‌ ‌you‌ ‌have‌ ‌to‌ ‌understand‌ ‌the‌ ‌

different‌ ‌types‌ ‌of‌ ‌bakeries‌ ‌that‌ ‌exist‌ ‌and‌ ‌the‌ ‌different‌ ‌customers‌ ‌they‌ ‌serve. ‌ ‌This‌ ‌will‌ ‌guide‌ ‌you‌ ‌in‌ ‌your‌ ‌business‌ ‌plan, ‌ ‌creating‌ ‌a‌ ‌niche‌ ‌and‌ ‌the‌ ‌amount‌ ‌of‌ ‌capital‌ you need. ‌ ‌‌

They‌ are two categories of bakeries:  

  • Retail
  • Wholesale‌ ‌

The‌ ‌two‌ ‌may‌ ‌serve‌ ‌the‌ ‌same‌ ‌kind‌ ‌of‌ ‌baked‌ ‌goods, ‌ ‌but‌ ‌what‌ ‌sets‌ ‌them‌ ‌apart‌ ‌is, ‌ ‌their‌ ‌needs‌ ‌and‌ ‌customer‌ ‌base. ‌ ‌

Retail Bakeries: ‌‌These‌ ‌bakeries‌ ‌sell‌ ‌baked‌ ‌goods‌ ‌directly‌ ‌to‌ ‌consumers. ‌ ‌Customers‌ ‌walk‌ ‌in‌ ‌and‌ ‌buy‌ ‌without‌ ‌relying‌ ‌on‌ ‌a‌ ‌middleman. ‌ ‌ ‌

Retail‌ ‌bakeries‌ ‌are‌ ‌further‌ ‌broken‌ ‌into‌ ‌different‌ ‌types:













They‌ ‌specialize‌ ‌mainly‌ ‌in‌ ‌pastries, ‌ ‌cookies, ‌ ‌bread, ‌ ‌cakes, ‌ ‌and‌ ‌tea‌ ‌and‌ ‌coffee. ‌ ‌There‌ ‌are‌ ‌dining‌ ‌areas‌ ‌where‌ ‌customers‌ ‌can‌ ‌sit‌ ‌and‌ ‌eat‌ ‌after‌ ‌buying‌ ‌baked‌ ‌goods. ‌ ‌Here, ‌ ‌Customers‌ ‌walk‌ ‌in, ‌ ‌buy‌ ‌baked‌ ‌goods, ‌ ‌then‌ ‌sit‌ ‌down‌ ‌at‌ ‌the‌ ‌dining‌ ‌area‌ ‌of‌ ‌the‌ ‌bakery‌ ‌to‌ ‌enjoy‌ ‌it‌ ‌with‌ ‌coffee‌ ‌or‌ ‌tea. ‌

Counter service:

There is no ‌dining‌ ‌area‌. Here, customers‌ ‌buy‌ ‌freshly‌ ‌baked‌ ‌goods‌ ‌at‌ ‌the‌ ‌counter‌ ‌to‌ ‌take‌ ‌home.

Speciality‌ ‌Bakeries:‌‌













‌‌These‌ ‌types‌ ‌of‌ ‌retail‌ ‌bakeries‌ ‌focus‌ ‌on‌ ‌one‌ ‌line‌ ‌of‌ ‌baked‌ ‌good. ‌ ‌

They‌ ‌create‌ ‌a‌ ‌niche‌ ‌for‌ ‌themselves, ‌ ‌and‌ ‌customers‌ ‌know‌ ‌them‌ ‌for‌ ‌that‌ ‌niche. ‌ ‌A‌ ‌specialty‌ ‌backer‌ ‌may‌ ‌decide‌ ‌to‌ ‌offer‌ ‌niche‌ ‌products‌ ‌such‌ ‌as‌ ‌gluten-free‌ ‌items, ‌ ‌ice‌ ‌cream‌ ‌cakes‌ ‌or‌ ‌cookies. ‌ ‌This‌ ‌makes‌ ‌it‌ ‌easier‌ ‌to‌ ‌succeed‌ ‌in‌ ‌this‌ ‌kind‌ ‌of‌ ‌bakery‌ ‌because‌ ‌offering‌ ‌niche‌ ‌products‌ ‌makes‌ ‌one‌ ‌become‌ ‌better‌ ‌in‌ ‌baked‌ ‌goods‌ ‌such‌ ‌that‌ ‌customers‌ ‌cannot‌ ‌find‌ ‌such‌ ‌goodness‌ ‌elsewhere. ‌ 

 ‌Wholesale Bakeries:

These‌ ‌types‌ ‌of‌ ‌bakeries‌ ‌do‌ ‌not‌ ‌sell‌ ‌directly‌ ‌to‌ ‌consumers. They‌ ‌market‌ ‌their‌ ‌goods‌ ‌directly‌ ‌to‌ ‌wholesalers‌ ‌such‌ ‌as‌ ‌supermarkets, ‌ ‌restaurants, ‌ ‌cafes, ‌ ‌etc.‌ ‌who‌ ‌in‌ ‌turn‌ ‌sell‌ ‌to‌ ‌consumers. ‌ ‌ ‌

Wholesale‌ ‌bakeries‌ ‌are‌ ‌usually‌ ‌large‌ ‌in‌ ‌size‌ ‌and‌ ‌require‌ ‌more‌ ‌labour‌ ‌and‌ ‌equipment‌ ‌because‌ ‌of‌ ‌the‌ ‌large‌ ‌market‌ ‌they‌ ‌market‌ ‌their‌ ‌goods‌ ‌to. ‌


2) Know What’s Trending in Baking‌ ‌

What‌ was trendy ‌a‌ ‌year‌ ‌ago‌ ‌is‌ ‌not‌ ‌what‌ ‌is‌ trendy ‌now. ‌ ‌There‌ ‌are‌ ‌many‌ ‌innovations‌ ‌in‌ ‌industries‌ ‌across‌ ‌the‌ ‌globe‌ ‌and‌ ‌the‌ ‌food‌ ‌business‌ ‌is‌ ‌no‌ ‌exception. ‌ ‌

Take‌ ‌time‌ ‌to‌ ‌find‌ ‌out‌ ‌what’s‌ ‌happening‌ ‌in‌ ‌the‌ ‌baking‌ ‌world. ‌ ‌Know‌ ‌what‌ ‌has‌ ‌changed‌ ‌and‌ ‌what’s‌ ‌on‌ ‌ground. ‌ ‌Ask‌ ‌questions, ‌ ‌check‌ ‌online‌ ‌to‌ ‌know‌ ‌what‌ ‌people‌ ‌crave‌ ‌for‌ ‌these‌ ‌days, ‌ ‌recommendations‌ ‌from‌ ‌health‌ ‌organizations ‌etc.‌‌Being‌ ‌trendy‌ keeps you relevant, ‌so‌ ‌stay‌ ‌updated to stay‌ ‌in‌ ‌the‌ ‌game. ‌ ‌ ‌

 ‌‌3) ‌ ‌Have‌ ‌a‌ ‌Business‌ ‌Plan/Create‌ ‌A‌ ‌Budget‌ 

Now‌ ‌that‌ ‌you‌ ‌have‌ ‌decided‌ ‌on‌ ‌the‌ ‌type‌ ‌of‌ ‌bakery‌ ‌to‌ ‌operate, ‌ ‌sit‌ ‌down, ‌ ‌and‌ ‌think‌ ‌out‌ ‌a‌ ‌good‌ ‌business‌ ‌plan. ‌ ‌

A‌ ‌business‌ ‌plan‌ ‌is‌ ‌the‌ ‌backbone‌ ‌of‌ ‌any‌ ‌business‌ ‌and‌ ‌it‌ ‌can‌ ‌either‌ ‌make‌ ‌or‌ ‌maim‌ ‌a‌ ‌business. ‌ ‌

A‌ ‌good‌ ‌business‌ ‌plan‌ ‌is‌ ‌not‌ ‌done‌ ‌in‌ ‌a‌ ‌hurry‌- it is a‌ ‌careful‌ ‌process. ‌ ‌If‌ ‌you‌ ‌do‌ ‌not‌ ‌know‌ ‌how‌ ‌to‌ ‌create a business plan, ‌‌it‌ ‌is‌ ‌advisable‌ ‌to‌ ‌hire‌ ‌a‌ financial expert. ‌ ‌

With‌ ‌a‌ ‌good‌ ‌business‌ ‌plan, ‌ ‌you‌ ‌know‌ ‌ahead‌ ‌of‌ ‌time, ‌ ‌the‌ ‌kind‌ ‌of‌ ‌bakery‌ ‌business‌ ‌you‌ ‌want‌ ‌to go‌ ‌into, ‌ ‌the‌ ‌structure, ‌ ‌marketing‌ ‌strategies, ‌finance, ‌etc.‌ ‌

A‌ ‌good‌ ‌business‌ ‌plan‌ ‌also‌ ‌reveals‌ ‌a‌ ‌good‌ ‌source‌ ‌to‌ ‌hire‌ ‌labour‌ ‌and‌ ‌the‌ ‌number‌ ‌of‌ workers ‌that‌ are ‌needed. ‌ ‌In‌ ‌general, ‌ ‌it‌ ‌makes‌ ‌the‌ ‌process‌ ‌of‌ ‌starting‌ ‌your‌ ‌own‌ ‌bakery‌ ‌business‌ ‌easier. ‌ ‌

Start with a ‌budget. It‌ ‌will‌ ‌help‌ ‌you‌ ‌get‌ ‌an‌ ‌estimate‌ ‌of‌ ‌the‌ ‌cost. ‌ ‌Before‌ ‌you‌ ‌can‌ ‌make‌ ‌a‌ ‌close‌ ‌estimate, ‌ ‌find out‌ ‌the‌ ‌costs‌ ‌involved‌ ‌in‌ ‌starting‌ ‌a‌ ‌bakery‌ ‌business. ‌

Some‌ ‌of‌ ‌these‌ ‌costs‌ ‌include‌ rent, ‌ decoration, ‌ ‌equipment, utility costs ‌etc.‌ ‌ ‌‌ ‌

4) Know Where to Get Capital

‌‌Now‌ ‌that‌ ‌you‌ ‌have‌ ‌an‌ ‌idea‌ ‌of‌ ‌the‌ ‌cost,‌ ‌weigh‌ ‌your‌ ‌financial‌ ‌strength‌ ‌against‌ ‌the‌ ‌estimate.‌ ‌If‌ ‌you do‌ ‌not‌ ‌have‌ ‌personal‌ ‌funds,‌ ‌consider‌ ‌looking‌ ‌for‌ ‌a‌ ‌secure‌ ‌source‌ ‌for‌ ‌funds‌ ‌and‌ ‌loans.‌ ‌

Be‌ ‌sure‌ ‌you‌ ‌trust‌ ‌these‌ ‌sources‌ ‌and‌ ‌that‌ ‌you‌ ‌can‌ ‌meet‌ ‌up‌ ‌with‌ ‌their‌ ‌terms‌ ‌and‌ ‌conditions. ‌ ‌

5) Know Your Customer

Define your customer base by their needs, locations and stylistic preferences.

Once ‌you‌ ‌know‌ ‌who‌ ‌your‌ ‌potential‌ ‌customers‌ ‌are, ‌ ‌create‌ ‌a‌ ‌strategy‌ ‌on‌ ‌how‌ ‌to‌ ‌reach‌ ‌them- online or offline. ‌

‌If‌ ‌you‌ ‌do‌ ‌not‌ ‌know‌ ‌how‌ ‌to‌ ‌create‌ ‌a‌ ‌marketing‌ ‌strategy, ‌employ‌ ‌someone‌ ‌to‌ ‌create‌ ‌it‌ ‌for‌ ‌you. ‌ ‌

Once‌ ‌you‌ ‌get‌ ‌these‌ ‌six‌ ‌things‌ ‌in‌ ‌place, ‌ ‌you‌ ‌are‌ ‌on‌ ‌your‌ ‌way‌ ‌to‌ ‌starting‌ ‌up‌ ‌your‌ ‌own‌ ‌bakery‌ ‌ business‌. ‌ ‌Do‌ ‌not‌ ‌do‌ ‌any‌ ‌of‌ ‌these‌ ‌things‌ ‌in‌ ‌a‌ ‌hurry‌ ‌and‌ ‌don’t‌ ‌assume‌ ‌you‌ ‌know‌ ‌it‌ ‌all. ‌ ‌

Every‌ step‌ ‌is‌ ‌a‌ ‌process, ‌ ‌when‌ ‌you‌ ‌get‌ ‌stuck‌ ‌at‌ ‌any‌ ‌stage,‌ ‌always‌ seek help from experts.

Good‌ ‌luck‌ ‌as‌ ‌you‌ ‌embark‌ ‌on‌ ‌the journey towards owning‌ ‌your‌ ‌own‌ ‌bakery‌ ‌journey. ‌ ‌ ‌



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