After you decide what type of bakery you want to open and what sort of products you want to sell, you can start thinking about how to open a bakery. We’ve broken down the steps you need to take to start a bakery into 9 simple steps that you can refer to as you plan and start your new business.
1. Write a Business Plan to Start a New Business.
You may need to borrow money to get started. Commercial loans are typically the best option for small businesses.
First and foremost, you need to create a bakery business plan. Business plans are an integral part of starting a new restaurant, because they tell you what kind of business you are planning to start, what kind of products you want to sell, how you will market them, and what your customers will pay for them. There are seven main sections to a bakery business plan: Executive Summary. Business Description. Management plan. Financial projections.
A good business plan is crucial in order to get the money you need to start a bakery. Here are some basic steps that you should take to get the money you need.
- Business plan. You will want to set up a business that is an accurate description of who you are and what your company will be.
- Market analysis. You need to find out what sort of market your business will be in before you start opening it.
- Business opportunities. What You Can Offer to Customers.
- Managers and shareholders decide what type of business you want to start and what type of products you want to make.
- Marketing and Advertising Strategy. When you decide what kind of bakery you want to open, plan out the details of your business plan.
- Get a Business Loan: Whether you need a business loan to start a bakery or not, there are several ways to get the money you need.
- Your Business Plan; Get Business Loans; Build a Business Line of Credit for your Business.
The business plan for your bakery business is very important, because it helps you get the funding that you need. It also helps you hire staff and get insurance.
2. Obtain Business Loans and Start Up Capital.
There are many costs involved in starting a bakery, such as renting a commercial space, buying insurance, hiring and training employees, purchasing food and other supplies, and paying for utilities. There are many costs that you’ll need to cover, so make sure that you have a good amount of money available to cover these expenses. In some cases, your new bakery won’t start making money until a few months after opening its doors, so you’ll need a large amount of money to cover those costs.
It is unlikely that you and your business partners will be able to finance the cost of opening a bakery on your own, so you’ll need to take out loans to get the money that you need. There are three ways that small businesses are able to obtain funding: business loans, business lines of credit, and small business loans.
You can get a traditional commercial loan by applying to any major or local bank. These loans are designed to help small businesses get access to very large amounts of capital quickly. However, you will need to have a strong credit score in order to receive the money. It could take many months to receive the money.
Business Line of Credit: A business line of credit is just like a business credit card. You get approved for a business loan that lets you borrow money to purchase things. But the money you receive will only be used to pay your bills. If your balance is a credit card, you can get an interest-free line of credit in the form of a revolving credit card. When you pay it back, you can get additional credit in the form of business lines of credit. But a business line of credit doesn’t allow you to borrow as much money as other types of loans, and lenders are often more stringent in their lending standards.
Small Business Loans: Small business loans are a type of loan that aims to protect small businesses and provide them with capital to help them start their businesses. Small business loans can help you get the funds you need quickly. They typically have lower interest rates and are available to people who have bad credit. They need collateral to be approved, and it may take more time to be approved than other types of loans.
3. Renting a commercial space.
After you secure enough cash to open a bakery, you can begin to look for a commercial space. You’ll need a commercial space for your bakery, depending on the type of business you want to open. You’ll need to purchase a food truck and rent a kitchen at a local restaurant. Retail bakeries will want to find a space that’s centrally located near their target customers and that has a good front-of-house area.
Wholesale bakeries sell their products to businesses and not to customers, so they can be located further from cities and towns. There are many different types of bakery businesses that you can open. Some of the things that you’ll want to consider are the type of space that you need and the proximity to suppliers.
- Proximity to suppliers. In order to be as close as possible to your suppliers, you need to have a space that has easy access to the internet.
- Specify the kind of space you will need.
- Health Requirements and Zoning.
- Safety and Crime Rates. You’ll want to know what factors will affect your business and your customers.
After you’ve found a suitable location for your bakery, you can hire a lawyer to help you put together a lease agreement with the landlord. When you start negotiating a lease for a bakery, include specific details about the type of lease that you’re negotiating, any increases in rent that you want to make, and who will pay for any potential renovations to the property.
4. Licenses and permits.
If you have the necessary permits and licenses, you can start your business immediately.
It’s important to understand that the foodservice industry is heavily regulated at the federal, state, and local levels. There are certain permits and licenses that you will need to obtain before you open your bakery. You’ll need to obtain many different types of permits and licenses depending on where you live, so be sure to check your local laws and regulations to see if there are any local laws that apply to your business.
5. Designing a Business Plan.
You’ll need to find a suitable location to open your bakery, and you’ll need to consider a few things like what equipment you’ll need and how you’ll set up your kitchen. If you are planning to open a bakery with a front-of-house area, you will need to plan a floor plan for that area.
A Back-of-house Area Layout helps you organize your storage areas and store equipment.
You can organize your kitchen by using different types of kitchen cabinets and other kitchen equipment. There are four main areas that every kitchen in a bakery must include: storage, food preparation, and cooking food. You’ll want to arrange your kitchen so that all the four areas are connected. Because many bakery-cafes and bakeries have a front-of-house area, there is also a delivery area for customers to receive their food.
You will want to plan your kitchen based on the way food flows during the baking process. It all starts with the storage area and then it goes onto the kitchen area and the cooking areas for the meals. When your baked goods are ready to serve, you can either serve them to your customers or package them for delivery. Eventually, all of your dirty dishes, cooking pots, and other household items will end up at the cleaning station.
Kitchen layouts will depend a lot on what kind of space you lease, and the location of your water and gas lines. You will need to measure the size of your kitchen to determine if you have enough space to install the necessary equipment.
Designing a Storefront Location and Building a Storefront for Customers to Look At.
Some bakeries have an area where customers can shop from a nice selection of baked goods. Create a layout that allows customers to easily look around your bakery and choose from a wide selection of foods. This will allow customers to feel comfortable and easily buy items. There are four types of bakery layouts, each of which has its own advantages.
Straight Floor Plan: Your display cases are placed in straight lines to make it easy for customers to move around and look at the various products that you have for sale.
Floor Plan with Curved Displays: This plan uses curved display cases to create an upscale appearance.
Using a diagonal layout in your bakery allows customers to easily move around the bakery.
You can use a combination of any or all of the different floor plans to maximize your space.
6. It is important to order the necessary equipment for a bakery to operate successfully.
Equipment that you will need for your bakery will vary depending on the type of baked goods that you will be making. You will need specific equipment to make different types of cookies and other baked goods in your kitchen. But if you’re baking fresh bread, you may not need any baking equipment. You may need different types of equipment depending on what type of bakery you have and the size of your bakery, but there are still several purposes that you will want to fill with the equipment that you buy.
This includes equipment that allows you to mix and shape dough, like mixers, kneaders, dough sheeters, and dough scales. You will need cabinets that allow you to hold your dough while you prepare it, as well as refrigerators that allow you to freeze dough when you are not ready to use it.
Storage is important to keep your kitchen organized. Shelving and racks to store everything are essential for any bakery. If you often need to carry large bags of flour and sugar, you should invest in a few big trucks and dolly carts to help you move these heavy bags around your kitchen.
Heating Equipment: Convection ovens are great for baking bread because they give you crisp edges and bake evenly. You may want to bake a lot of artisan bread in a deck oven to get a nice browning on the top of your products. Wholesale bakeries may be looking for high-output ovens, such as those that roll-in racks or have revolving ovens that continually bake products.
Displaying the right display cases for your bakery products will help you increase your sales. You can choose to have your baked goods in cabinets that are self-serve or fully serviced, depending on your needs. You need to store and display your products in special display cases, as well as a variety of boxes and packaging for your baked goods.
Cleaning and Wiping Down Sinks: A large sink with 3 recessed compartments is ideal for a kitchen. But, be sure to order hand washing stations for all of your employees, and other cleaning supplies such as cleaning soap, dish soap, and sponges.
Bakery tools and small appliances.
In addition to large appliances, you may need other essential tools for your bakery, such as mixing bowls, storage boxes, whisks, kitchen aids, and aprons. We have compiled a list of essential bakery equipment to help you make sure you have everything you need.
7. Training Your Staff. When it comes to hiring and training new bakers, there are many things you need to do.
If you have a large bakery, you may need to hire a large number of employees to handle the daily tasks. Retail bakeries may hire and train people to take orders and run the cash register. Most of your bakery staff will be in the back-of-house area, where they will be baking and preparing the food.
You should have someone that has professional training or is well-versed in baking to oversee the baking process. You may also want to hire some non-skilled employees to help with cleaning dishes, mixing ingredients, and doing other jobs that don’t require any specific experience or expertise.
Some bakeries may need professional pastry chefs and other staff to take care of certain tasks. For bakeries that bake wedding cakes, it will be necessary to hire skilled cake decorators. Bakeries that specialize in baking bread should hire a professional who is experienced at baking bread.
8. Marketing and advertising strategies.
If you are selling baked goods to a large wholesale market, you will need to invest in high-volume ovens that can handle high volumes of orders.
Before you open your bakery to the public, you need to begin planning your bakery marketing strategy. It is easy to plan out your bakery marketing strategy in five steps.
Conduct market research to find out what types of customers you are targeting. This includes researching the demographics of your bakery and competitors, as well as the niche markets that you are able to fill. Once you know who your target market is, you can begin to think about marketing and advertising strategies that will help you get the word out to that market.
Write a market analysis: This is a summary of what you learned from doing market research, and it should go into your bakery business plan. It should include information about the incomes of your target market, the type of products that they buy, and the prices that your competitors are charging.
It’s important to set realistic goals for the bakery and your marketing and advertising campaign. Goals you may want to set include how many followers you want to gain on social media and how many customers you want to have in a month.
What you want people to know about your bakery: There are many different ways you can advertise your business, and each method has its own benefits. If you live in a city that has many signs, putting up large billboards in the center of the town will be an easy and inexpensive way to advertise your bakery. You can choose traditional advertising options, such as newspaper ads and flyers.
Social media marketing is an excellent way for you to interact with your customers, create a buzz, and promote your grand opening or other special events. Many people will search for your bakery on the web and on social media before they decide to go in. So make sure you have a website and a social media presence.
Some of these techniques can be used for retail bakeries, but the marketing strategies for wholesale bakeries are very different. Wholesale bakeries should focus on analyzing what their competitors are doing and where local restaurants and grocery stores purchase their baked goods. Then, they can try to negotiate a deal with them. Then, they can reach out to potential customers and try to negotiate a price or a deal.
9. Are You Planning to Hold a Grand Opening?
If you just opened a bakery, the next step is to host your grand opening and show off your products. If you have a successful grand opening, people will think that your bakery is doing well and they will continue to come back. You should advertise your grand opening in order to bring people together and to let them know when your bakery is opening.
When people come to your bakery for a grand opening, make sure to offer discounts and other offers to get them to come in. You can give a discount to customers who first come in to your bakery to see what you have to offer. You can also give people who order a dozen cupcakes a free cupcake if they buy a dozen. You can provide samples of some of your most popular products to encourage customers to make a purchase.
Starting a bakery means beginning a new business that is different than opening a restaurant or other foodservice business. Stay organized and be thorough when planning to open a bakery. Creating a business plan and executing it carefully will help you get your bakery off to a good start.