Interested in small bakery business ideas? If YES, here is how to start a bakery business with no money and no experience. How much does it cost to start up?
How to Start a Bakery Business
Bakery business is one business where there is never a shortage for customers. Its products which include bread, cakes, donuts and a host of snacks are needed for breakfasts, fast food and as appetizers. So long as people continue to exist, no matter what part of the world they belong to, the demand for bakery products will always be high.
The baked products vary according to location depending on the types of food mostly consumed there, but the constant feature common to all is that most cultures have some particular foods that are baked.
The bakery business is ever booming and expanding as the global population increases. And you, the baker can take advantage of these vast opportunities to set up a profitable and thriving bakery business which will in the long run provide a needed service and at the same time, generate profits to its owner.
Do you have the mind of going into the bakery business and need guidance? So many still think bakery business is all about bread. But bakery entails much more than the production of bread.
According to Wikipedia, “a bakery is an establishment that produces and sell flour based food baked in an oven such as bread, cookies, cakes, pastries and pies.”
You can now see that the bakery business has many other facets apart from the bread production aspect. So, this article is going to look into the different bakery business that one can start. Read on!
So, are you passionate about baking? Or have you ever wondered how you could turn your passion into tangible profits, then, this article is just for you.
The Planning Stage
As with every other business, opening a bakery starts with proper planning, this planning includes areas such as knowing your niche. Here, niche means your area of specialty. This is crucial because having a particular specialty means that you will only have to bake only specific products.
Assessing your talents passion and also the budget at your disposal is very key in the decision making process of starting a bakery business. It will do well to consider the type of bakery business you want to enter into. The following are some areas of bakery business;
1. The Counter Service Bakery
Here, it means that customer will have to walk into a bakery hall and pick up baked goods over the counter and pay for them. It is usually managed by an employee, and the goods are displayed behind the counter for customers to easily make choices on the products to buy. This is a very common type of bakery service.
2. The Sit-down Bakery Service
This is usually in form of a diner where customers walk into and order any bakery product of their choice and enjoy either with friends or alone. Here, they do not need to carry the products home as convenient eateries are provided by the bakery where customers can comfortably enjoy their snacks. This is a growing trend in the bakery business world.
Cake business entails, baking and selling of varieties of cakes for different occasions. In Nigeria, cake making is a lucrative business because a lot of events and celebrations happen every now and then.
And hardly is any these events and celebrations complete without the cutting of a cake. So, if you are skilled at making cake or you have an interest in it, you should consider starting a cake business.
BAKERY BUSINESS PLAN
Decide if the Business is for You
The first step in starting a cake business is to determine whether you have interest in it or not. Though cake business is quite profitable, it requires some arduous processes that can make you to easily give up if you are not passionate about it. So you have to decide if the cake business is for you or not.
Are the Resources (Capital) Available?
This is crucial to business success. Finance is necessary for the take-off of most businesses, especially a bakery business. Things like equipment, office space, furniture, payroll and a host of other things need to be considered when opening a bakery business.
Someone with the interest of going into this line of business will have to ask him/herself if they are financially ready to commence business. It is never advisable to plan based on unavailable finance, hoping that when you begin with the little available, more money might later come.
Also, you will not immediately start expecting to benefit from profits. It takes some time for businesses to stabilize before you start reaping the profits. Hence, do you have enough finance to sustain you during the period of infancy of your business? This has to be seriously considered before committing capital. Therefore, plan with capital at hand.
To start the business, you need to get the necessary skill in cake making. I advise that you start out small. Instead of starting with an expensive training, you can start with a low cost training or you can self-train yourself by getting training resources online or watching you tube videos.
The idea of doing this is to test waters and see if it is something that you can actually do. After the basic training, if you are still interested in the business, you can then take it further by getting advanced trainings.
After doing the basic trainings and getting the needed skills, the next thing you should do is to test run the business by launching it out in a small way. Start by intimating your friends and loved ones about your cake.
When you bake make sure you reserve some extras to share to people around. If they like it, you can then market it to them. Offer free samples of your cakes for a public event like fundraising events, church anniversary or birthday celebrations.
If your cakes are irresistible enough, people will approach you for business. Contact event planners and party organizers and send the free sample of your cakes to them so that they can help you get referrals.
Bake cupcakes in small batches and start marketing it supermarket, provision stores and fast foods. You can also leverage on the social media by sharing the pictures of your cake. Also, try to get testimonials from people about your cakes and post it online.
From response you got after doing all these, you can then determine whether to start the business on a large scale or not.
Start the Business
If you got a successful result after you have done test run, the next thing to do is a feasibility study. Research about the requirements of setting up the business, research about the equipment and resources you will need. Most importantly, draw out a bakery business plan.
All these with enable you to rightly position your business. Armed with the necessary knowledge, you can then launch out.
Biscuits, cookies and pastries Business
This is another bakery business that is very profitable. In this era of busyness, a lot of people don’t have time to cook good meals and even sit down to eat. So they resort to quick fixes like biscuits, cookies and pastries that they can eat on the go. You can start this business by following the processes I explained for the cake business.
Bread is one of the popular staple foods. People love bread, because, unlike other foods, it does not require any preparation, it is also easily available and relatively affordable.
The recent increase in the price of rice and other foodstuffs has made the demand for bread increasingly high and this in turn has lead to increase in the price of bread. So, if you are looking for a profitable business to do, you can try out bread business.
How to Start Bread Business?
The first thing to do is to research about the business procedures and most importantly the start up cost. This will help you to determine if it is something worth your investment and time.
You can do this by getting resources online or volunteering to work in a standard bread bakery where you can get practical insights on how the business is done.
Get the Skill
The next step is to learn how to make bread. You can do this by enrolling in a training institute or taking a bread making course online and watching YouTube videos. Make sure you just don’t learn about the production aspect; make sure you learn about other important aspects such as marketing, packing, and branding.
Be open minded and creative about what you are learning. Much more than what you are being taught by your instructors, learn further. Think about how you can produce better bread that will be more appealing than that of your competitors, think about better and more effective marketing strategies.
Research on to create different bread recipes that will give you a unique selling point. Also, do a research on, how to brand and package your products in a way that is unique and cost effective. Doing this will make your bread business stand out and give you an edge as a new entrant in the industry.
Create a Business Plan
A business plan is very vital to the efficient running any business. This is because it enables you to properly document whatever is needed for the successful running of your business and also to keep records of happenings so that in-depth knowledge about the workings of the business and where improvements are needed are made properly utilized to further consolidate gains already made.
Creating a bakery business plan will help you to have a foresight about the business. You can get free samples of bread bakery business plan online that you can use as template. Alternatively, you can hire a credible professional to help you draw up a business plan.
Launch out your Business
Raise the capital require to start the business. Register your business. Find a suitable location for the business. This must the close to your target market. Get the basic and necessary equipment like industrial oven, baking pans, bread slicer, milling machines, mixer etc. Get competent hands to work with you.
Start production. You can start by introducing different varieties of bread or just a single type of bread with a unique flavor that will be very appealing to the customers. This will make your product stand out.
If you are planning to start this business, you can choose from the different kind bakery business that I shared. It is a profitable choice that you won’t regret.
Is there Available Space?
This is needed to start a bakery business. If you do not want to start from home, then looking for a commercial space has to be properly done. It also involves issues with licenses; an operating license is necessary to allow you to operate out of your kitchen
How do you Handle Friends and Family?
This is a delicate situation, especially for those who had earlier on enjoyed your free services. Having a friends and family policy in place to balance business with your relationships is very important.
Putting in place a discount policy for friends and family of say, 10% will sure do the trick. Making them realize the difference between what you do now and how you did previously will surely make them understand that you have a family to feed and a business to run, and no one is offended.
Consider Getting an Approval from the Food and Drug Control Agency
Getting approval from regulatory agencies in your country is a key factor in setting up a bakery business. Any serious entrepreneur should always make sure he does not cut corners as that will be breaking the law and possibly endangering the lives of his/her clients.
Because bakery products are consumables, the bakery has to be approved to have met the set standard for operation. When this happens, there is more faith by the customers on the products they are buying.
Too much discounts can cause serious harm to your business. Before you decide how much discount you will like to use, you first have to have knowledge on your profit margin, making sure that after putting in a discount, you still have the potential to make profits. This is because profits are the bedrock of any business establishment.
The above tips provided are very key in setting up any viable bakery business, as without these, the bakery business will not stand the test of time and meaningful proceeds from such a business will only be a mirage.
Businesses need a careful guidance system, from the period of planning to eventual implementation to ensure their survival, and these tips will greatly enhance your success as a potential baker.