Everything You Need to Know About Starting a Bakery

 

Everything You Need to Know About Starting a Bakery

Bakeries are everywhere these days, but why? Because they’re delicious, of course! Who doesn’t love a good homemade muffin or cupcake on their birthday, or a comforting piece of banana bread when they’re feeling down? If you’ve got the entrepreneurial spirit and you’re looking to start your own business, starting a bakery could be the perfect fit. But how do you get started? Where do you begin? We’ve got all the information you need right here in this article on everything you need to know about starting a bakery!

Business Setup

If you’re planning on selling your baked goods wholesale, you’ll need to set up as an LLC or S-Corp. If you plan on operating from a storefront, you’ll have several more steps to take—this can be overwhelming for some first-time business owners, but consulting with an attorney will help ensure that your business is set up properly. Operating as an independent contractor can also be an option for businesses without brick-and-mortar stores.

 On any of these platforms, however, you should start by opening a separate bank account in your company name and securing appropriate insurance coverage (general liability, workers compensation, and others). Next, pick a name and secure an Employer Identification Number (EIN) from the IRS. Once you've done all of that, there are still plenty of additional items to consider before opening shop (taxes! licenses!

Risk Management

Every business venture involves some level of risk. In fact, without taking risks, you will never see big rewards. This means that if you want to be successful in your own business, it is important that you take calculated risks. Evaluate each one carefully and make sure it aligns with your vision for success. 

Be confident about every choice you make and feel comfortable enough with your decision so that even if things don’t go exactly as planned, you can still learn from them and have fun along the way! If you were starting an executive search business, where would you start? What do you need? Where would you find leads? Research companies similar to yours; what are they doing well?

 How much should someone pay for those services? What makes your business unique from others like it? If someone asks me how long I’ve been providing executive recruiting services (over 10 years), does that answer convey that I’m reliable or boring?

Growth Strategies

1. There are two key growth strategies for a startup—one internal and one external. The internal growth strategy for your company is learning how to operate more efficiently, focusing on finding ways to grow from within (think: expand customer base by reaching new customers through social media campaigns).
2.  An external growth strategy looks at ways in which you can reach new customers through partnerships or similar opportunities that would fit your brand or product.
3.  For example, an Instagram influencer who focuses on baking might offer free products in exchange for future promotion of said products.
4.  When you launch a new product, you want it to stand out in your customers’ minds. If people can’t recall your product easily or correctly, they won’t be able to purchase it again.
5.  A good way to make sure that happens is through marketing strategies. Learn about different marketing strategies and how they work for businesses today.

How to Start a Bakery from Scratch

Running your bakery can be incredibly rewarding, especially when you get to watch the sweet smells of the baked goods entice customers into your store. But before you open your doors and try to turn your bakery into the next big thing, there are several things you need to do to ensure success. Start by learning how to start a bakery from scratch by following these steps.

Write a business plan

Writing a business plan helps formalize your idea and can streamline the business-creation process by getting you to sit down and think things through methodically. And, yes, plans are (often) worthless, but planning is everything. Many entrepreneurs say they rarely look at their plan once they’ve launched—but they’ll also tell you there’s value in thinking through and researching your idea; writing a business plan is the perfect canvas for this exercise.

Obtain loans and startup capital

You’ll need funding for your bakery. Banks, venture capitalists, and other sources of startup capital will want proof that your business is viable and potentially profitable, which means you’ll need to prepare a convincing business plan. ... Ask friends and family for money: These are people who believe in you and your idea, so they’re more likely to help fund it—and their contributions may be tax-deductible.

Lease a commercial space

Before you can open your bakery, you need to find a suitable place for it. Keep in mind, though, that your kitchen shouldn’t be smaller than 500 square feet or larger than 5,000. Though there are many options out there for commercial real estate – retail spaces are popular choices – check with your city’s zoning board first before settling on one.

Apply for permits and licenses

Before you open your doors, you’ll need to ensure that your bakery complies with local zoning laws and related regulations. In some cities, licensing procedures take only a few days; in others, it can take up to three months. Either way, make sure you have time set aside before opening day so that you don’t have any surprises.

Layout your bakery equipment order

Take into account delivery time frames and plan accordingly. For example, your oven might be delivered months before you need it (depending on what brand or model you purchase). You may want to ask about any expedited shipping options. You’ll also want to decide whether you’re planning on installing your equipment yourself or hiring contractors for assistance.

Initial Public Offering (IPO) stock option strategy

The type of stock option that is most often used by start-up firms is called an initial public offering (IPO) stock option. It is essentially a way for a company to raise money without selling ownership in its firm. As compensation for their investment, investors are given IPOs, which are options that can be traded like stocks on Wall Street or other securities exchanges.

Create sales strategies for your local market.

There are many parts involved in setting up and running a bakery. You’ll need an area in which to set up shop, ingredients with which to bake your goods, and employees who know how everything runs. While these three areas are very important, it’s also vital that you start making sales calls.

Ensure compliance with food standards

Before you start, make sure you adhere to all health and safety regulations. While most new small businesses are regulated by their local county or city governments, food service establishments (like bakeries) must be approved by your state’s department of health. ... Apply for a Business License: Obtain and fill out all necessary paperwork for your state government.

Selling bread as an unaccredited baker

If you want to start selling bread but don’t want accreditation, consider becoming an unaccredited baker. You will probably have fewer customers than an accredited bakery, and you will probably have less prestige. But these things might not matter if your goal is simply to have your own successful business. If it is worth it for you to start with accreditation, then that's what you should do!