How to Start a Bakery

It takes quite a bit of skill with an oven to be able to bake goods on a commercial scale.

Many people dream of being able to start a bakery, but don't know where to begin. Throwing caution to the wind and starting a new business, whether it's a bakery or something else, can be an overwhelming experience. It takes a special mindset to navigate the challenges of business ownership, and it takes quite a bit of skill with an oven to be able to bake goods on a commercial scale. However, with a little determination and a lot of hard work, you can succeed at running a bakery and make your dreams come true.

Things You'll Need

• Strong business plan
• Financing
• Baking equipment and supplies

Instructions

1. Weigh your options and put thought into the type of bakery you would like to own. You could have a traditional bakery, with breads, cakes, cookies and pastries, or you may want to open a franchise bakery business. You could even open a niche bakery that specializes in bagels or cupcakes.

2. Write a business plan for the bakery you want to start. A written business plan acts as the building blocks for the foundation of a successful business. Many websites have free business plan templates. Stick to your business plan as your bakery grows, and you will have greater chances of maximizing your success.

3. Find financing for your business. The details of your business plan should give you a detailed overview of the funds required to get your bakery up and running. The initial start-up costs will likely be the biggest part of your budget, but there also will be recurring monthly costs, such as rent and salaries. Determine how much money you will require for your first 12 months of operation, and find a way to obtain the funds. Many new business owners borrow money from family and friends. Others are capable of getting personal loans or small business loans from their banks. A select few are able to obtain private investment from a venture capitalist.

4. Find out what types of licenses and certifications are necessary to start a bakery in your community. Contact the license commissioner in the municipality where you plan to operate your business as a starting point, as well as a representative of the Board of Health. Next, speak with an attorney or certified public accountant who has experience helping new business owners get started.

5. Find a suitable location for your business. Your bakery ideally will be located in a convenient location that has a decent flow of traffic. The more people who are exposed to your business, the more likely you are to have someone stop by to make a purchase. Avoid choosing locations too close to direct competitors.

6. Acquire your baking equipment. If you have purchased an existing bakery or moved into a building that was formerly a bakery, you probably will be partially equipped. Otherwise, you will need to make sure your location has adequate walk-in cooler space for storage, baking ovens, mixers, pots, pans, bowls and display cases. Create a checklist in advance, ideally while you are working on your business plan, and make sure that you have every item on the list.

7. Hire a staff. If you are going to start a small bakery and do much of the work yourself, you will need only a minimum staff. If you have no experience in a commercial bakery, you probably will want to hire professional bakers, leaving you to manage paperwork and greet customers in the storefront. Plan your staffing needs around the size of the bakery you will start, and hire based on experience.

8. Advertise your bakery's grand opening. The amount and methods of advertising will depend on the budget you have for promotion. Local newspapers and local radio are two cost-effective methods of announcing your grand opening.

Tips & Warnings

• A useful tactic for a new bakery to obtain repeat business is to print business-card-style coupons that are good for one free cookie. Any time someone comes in with children, give a card to the children. Children can be great motivators to get the parents back in the store, and once there, the person may buy several things.

Resources

• New York Guides: Here's What It Really Takes to Start Your Own Bakery
• Entrepreneur.com: Business Idea Center - Bakery