People need to eat, and people want to eat freshly baked goods. These two facts mean that bakeries and cafes are very popular business models for those who love working with their hands. If you are a baker at heart and are hoping to start your own business, then chances are you can make a real go at it and even find huge success during the process. The secret is keeping your running costs lower than your incoming profits. This may seem obvious, but the running costs can be sneaky. They can quickly add up when you aren’t expecting them, especially if you’re paying off loans or dealing with unexpected emergencies.
Kickstarting a thriving bakery business means going in with a strategic mind. It means not only planning on how to maximize sales and profit, but also how to manage your overhead and account for unexpected, emergency prices.
The good news is that you don’t have to do it alone. There is a wealth of online advice and help, even through your local business bureau. You can even hire a business consultant to help you ensure you do everything right.
Before you get to the specifics, however, it’s important that you understand the general structure of what you need to do. This will help you avoid getting caught up in the details and missing the big picture. So, to kickstart your very own thriving bakery business, you’ll want to start with this guide:
Master Your Craft
Working as a baker for a while is often recommended for those hoping to start their own business. Knowing what it’s like to work in a thriving bakery business is key, not just so you get ideas for your company. It’s hard to adjust to the high-volume, fast-paced thriving bakery or café business, so working on the ground can be instrumental in preparing you for what to expect and how to thrive in such a high-pressure environment.
Not only that, but you’ll learn intimately about running and managing such a business in your area. The tips in this guide can help keep you on track, but the exact steps you’ll need to take will need to be optimized for your precise location. This can be as specific as the neighborhood you’re in.
Learn how to create all the baked goods you want to sell, and take note of the experience and insider’s knowledge you’ve gained along the way, and use that to put together the ultimate business plan.
Outline Your Business Plan
You’ll want to use that experience to create a thriving business plan. This business plan should include your menu, how you intend to stand out, your aesthetic, and so much more. While you don’t want to create such a detailed plan that leaves no room for improvisation, investigating your competitors is a good idea. You need to be able to answer all the key questions that the SBA or other investor will ask about your business and how you plan to make money. Even if you’re going in self-funded, having a plan to launch and grow can make a huge difference in your success.
Identify Your Ideal Location
One of the most crucial factors in regard to opening up a bakery is your location. The ideal location for you will, ultimately, depend on who your customers are. If you want to sell mostly to consumers, for example, then you’ll want to be centrally located. A great spot, for example, is near a train or subway station. People on their way to work can pick up something quick from you on their way to fuel them up. The same can be said on the way back. Being near business locations or popular shopping spots is another great idea.
Of course, you can also sell to businesses. If you want to sell to businesses, you’ll need a larger space, access to parking, and, most importantly, a primary road. This proximity to a large road will help you deliver your goods to your customers every morning.
Getting Funding
Once you have a business plan and know where you want to launch (and therefore know the average rent you’ll need to cover), then it’s time to get funding. You can get a small business loan through the SBA or get a loan from a bank. You can and should also diversify your approach. Put some savings into your business, see if friends or family want to invest in your business (set up a payment plan to pay them back after you establish your business), and even consider crowdfunding. All of this can help you bring your business to life.
Putting Together the Ultimate Guide of Suppliers
Suppliers are going to make a huge difference in your operating costs. That’s why it’s important to find options like Ofi Spices where you can buy the quality ingredients that you need in bulk. Spices make up a huge portion of any bakery’s business model, and when you account for the sheer volume of spices that go into big batches of baked goods, you start to realize just how much you truly need. Buying in bulk is the bread and butter of any bakery business, so finding a spice supplier is essential. This is particularly true if you offer unique spice combinations that aren’t typically found locally.
Hiring On Those You Trust
It’s important to hire those who know how to bake but are most importantly, trustworthy. Hire on experienced bakers to help you bring your bakery to life. You can then hire on newcomers to train them after the fact, but only once you’ve got your business up and running. It’s going to take a lot of work to get your business in the swing of things, so do that with those you trust, then you can offer apprenticeships and the like to support the next generation of bakers.
Bringing Your Business to Life
You can make it with those trusted few next to you, alongside your funding, business plan, and great suppliers. Use social media to create a thriving presence online, encourage customers to share your bakery and review, and constantly reach out for new business opportunities by attending events or bringing on more B2B clients. It takes time, but great food goes far and can lead to a successful business model.
