Whether you already run a home baking business or you’re just passionate about freshly baked goods, learning more about how to start a bakery business could set you up for a bright future dough-ing what you love.
You don’t need a bachelor’s degree to start a successful bakery and be your own boss, but – as is the case for all new businesses – you do need the right tools and equipment, startup capital, and a solid bakery business plan, amongst other things. Planning is essential!
Fortunately, All About Bakery Equipment exists to support as many bakery business owners as possible with equipment, services, and targeted advice. Read on to find out more about how to start a bakery business that wins customers.
TL;DR
- Your business plan is crucial to success – not only in the first few months after you start a bakery, but also in the long term.
- There are several steps in the process of setting up your brick-and-mortar bakery business, from finding a location and designing a layout to securing the appropriate permits.
- Once you have all the basics in place, the quality of your bakery menu and customer service will set your business apart from your competitors.
Research and Planning
Like so many business owners, you may decide to open your own bakery business based on passion and excitement, but without any supporting market research – and that’s why this first step is so important.
When you conduct market research, you will identify your target audience, competitors and market trends, and understand your chances of building a successful bakery business fairly quickly.
There are a few key stages in this market research process worth an investment of time:
Create a Business Plan
Once you know what you want to create, it’s time to turn your attention to the question of how to open a bakery – from the business concept and goals to the executive summary, market analysis and operational plan. The business concept should also be a launching pad for a business name if you don’t already have one in mind.
Choose Your Niche
Your bakery business plan needs to set out your specific market – whether you plan to specialise in artisanal bread, pastries, or cakes. Selecting a niche will also help to define your unique selling proposition – the thing that will turn one-off visitors into loyal customers who choose your bakery business over your competitors.
Get Serious About Financial Planning
How much does it cost to open a bakery? If you’re not sure, you’ll want to take your time with the financial aspect of your bakery business plan. This should include an estimation of overhead costs (equipment, location, ingredients, staff) and financial projections, including cash flow forecasts, as well as the financing options available to you.
This is also the time to consider the small business loans on offer, and whether they’re right for your business. If you’re unsure, it may be wise to contact the Small Business Association.
Choosing the Right Location
When securing a brick-and-mortar location for your new bakery, there are several important factors to consider; for example, you’ll want to set up your business operations in a place where there is high foot traffic, local demand, accessibility, and proximity to suppliers.
Consultation with a commercial real estate agent will set you on the path to finding the right retail space for your business.
Additionally, All About Bakery Equipment offers assistance with lease negotiations, site inspection, and cost analysis PRIOR to you signing your lease.
Then, once your lease agreement is in place, you’ll also need to work with local authorities to ensure that your bakery business meets local council regulations for plumbing, drainage, and exhaust systems, amongst other things.
Designing Your Bakery Layout
The right business layout is essential to efficient operations, allowing businesses to optimise workflow, maintain health and safety standards, and create the best possible customer experience.
This is particularly true for bakery and cafe hybrid business spaces, where the commercial kitchen space must leave room for customers to relax and enjoy the ambience.
At this stage, consulting with professionals is the best way to save on overhead costs and make the most of your commercial space; for example, All About Bakery Equipment offers a Bakery by Design service for layout planning, site inspections, and council-compliant designs.
Our team also provides a floor plan and legend design service, including additional requirements like elevated drawings and hydraulics, streamlining the process of attaining council approval.
Choosing Your Bakery Equipment
Those who plan to start their own bakery business often agree that choosing the right equipment is crucial for early and ongoing success – particularly essentials like ovens, planetary mixers, spiral mixers and display cabinets.
Although many assume that starting a new business means buying new equipment, baked goods taste much the same when made using refurbished equipment – and the best part is that All About Bakery Equipment offer Fully Refurbished equipment with a warranty for a lower price.
Setting Up Your Shop
One of the most time- and cost-intensive steps in going from a home bakery to your own bakery is fitting out the shop. Fortunately, the team at All About Bakery Equipment is equipped to take the hassle out of the setup with a full turn-key project management service, from conception to completion.
Securing Licensing and Permits
If you want to build a baking business that lasts, you’ll need local health and safety standards passed down from the health department, including food safety regulations, as well as council requirements and zoning laws.
What licenses are needed to start a bakery?
You’ll be required to hold the appropriate food business licenses, including a Food Safety license, as well as hygiene certificates and any other required permits, and pass a regular health and safety inspection, generally every six months.
There’s a lot to remember but with support from the team at All About Bakery Equipment, your baking business will undergo a rigorous planning and setup process that ensures compliance with local health and safety standards.
Hiring Staff and Training
Starting a bakery business means taking on many roles, from perfecting your baked goods and keeping customers happy to planning special events and handling business administration. Trying to do everything on your own is a recipe for disaster, so you’ll need to hire the right team of bakers, assistants, and customer service staff.
After hiring bakery staff, you’ll also need to train them on the use of your equipment, including the POS system – a process that is typically ongoing, particularly as equipment, regulations and techniques change over time.
Pleasant, well-trained staff keep customers coming back, making them a huge asset to your business and the driver of your success.
Creating Your Menu and Pricing Strategy
You will need to think about, and have a rough idea of your menu BEFORE you start looking for a location or doing your business plan, as this will affect the type of location, equipment & space you will need.
At this stage of planning, you should also consider a few different pricing strategies:
- Cost analysis: set your prices to cover your costs.
- Competitive pricing: set your prices to undercut your competitors, or position your business as a premium supplier.
- Ensuring profitability: activity-based pricing is based on customer demand and an in-depth understanding of what creates profits.
Marketing Your Bakery
The first step to marketing your bakery is knowing your target market.
All small businesses need to develop a strong, recognisable brand that represents a unique business entity, including a logo and colour scheme. All About Bakery Equipment can assist with the design process for these as well as the shop front design as a whole.
Once these design elements have baked to perfection, they can be used in all digital assets, including the website, social media pages and online ordering platforms, creating a consistent experience for customers.
Of course, the same design style should carry over to all other elements of the marketing strategy, including offline marketing such as local advertisements and flyers. In the offline space, it’s also wise to allow your customers to experience your best baked items through free samples, perhaps via a pop-up stall or food truck.
Then, once you and your baked goods have developed a stronger reputation and relationships with regular customers, you can ask for reviews and use their positive word of mouth to generate more business.
—
If your dream is to become a bakery owner, the tips we’ve covered above will take you from a home bakery to a bonafide small business.
The team at All About Bakery Equipment will guide you through everything you need to know about how to start a bakery business, from initial planning to long-term equipment maintenance and support – all you have to do is reach out to start the process with a consultation.
For advice and assistance you can trust on your journey to establishing your bakery business, contact the team at All About Bakery Equipment. To find out more about our Bakery by Design services or our new and refurbished bakery equipment, give us a call on 1300 099 011 or request a call back at a time that suits you.