How to Start Up a Bakery Business
When Debbie Fields decided that her recipes were too good to keep under wraps, she did something that was unprecedented: she took trays of her cookie samples to her community mall and handed them out, making certain nibblers knew where to get more. Fields' moxie and delicious products quickly launched the brand that prompted signature bakeries across the land. If you're inspired to follow in her footsteps, remember that it was her unique style that made her a household name. Find your own hook and you'll be up to your apron in flour and butter in no time.
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Things You'll Need
- Business plan
- Retail storefront
- Commercial baking equipment
- Commercial refrigeration equipment
- Worktables
- Supplies and ingredients
- Permits and licenses
- Insurance
Instructions
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Ask yourself if you've got the stamina it takes to launch your bakery enterprise. You'll have to get up with roosters to pop dough into ovens so everything in your pastry case tastes as fresh as it looks. You'll be purchasing commercial bags of flour and sugar and industrial-size lots of butter and other perishable ingredients. If you can't lift these plus-size bags, cans and other containers, make sure you have a deputy baker on staff from the day you open your doors.
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Formulate whatever type of business and marketing plan you're comfortable with drawing up so you have some direction and focus for the long haul. Use a professional approach by writing a SWOT analysis: List your strengths, weaknesses, opportunities and threats. If that makes no sense to you, find other business plan models on the Internet or hire someone with business savvy -- and in particular, bakery business savvy -- to write the plan. This start-up assistance could be the best investment you make.
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Pursue financing from a bank or personal sources. You'll need rent money, commercial equipment, supplies that run the gamut from ingredients to letterhead, pastry and cake boxes, trays and dependable refrigeration systems. Include on your list of necessities a power generator so you don't lose a fortune in perishables should a power outage occur. Expect to spend cash for a build-out if your landlord isn't willing to partition the retail space you're renting. You'll need plenty of worktables for pastry prep. Finally, you may have to spend some cash on plumbing. Water, sinks and wash stations are critically important to the health and sanitation of your business.
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Track down permits and licenses. Food service establishments are subject to a wide range of rules, regulations, codes and inspections by governmental authorities that may range from the health department to the fire department. Serving food has its own unique risks. You'll be subjected to a lot of paperwork, but once everything is signed and sealed, you'll receive occupancy and other certificates you'll be required to hang on your walls. Once you're up and running, expect periodic inspections.
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Cover all of your legal and insurance bases. You'll need coverage to replace equipment and supplies in the event of a fire or flood, protection against damage to physical property caused by other catastrophic occurrences, liability coverage for potential lawsuits initiated by patrons who claim your baked goods made them sick or worse. Consult with a lawyer and an experienced commercial insurance broker to discuss all aspects of your insurance needs. Err on the side of caution. You can always modify your coverage down the line.
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Purchase top-of-the-line equipment -- but it needn't be brand new. You'll need commercial ovens, huge dough mixers, pressers, proof cabinets and boxes, industrial racking systems for cooling breads, cakes, doughnuts, cookies and other products. A site like Bakery Equipment.com can simplify your life by offering you one-stop shopping for the aforementioned plus display cases in nearly every size. You also can order such staples as bowls, utensils, decorating equipment and the boxes, bags and tissue you'll need to serve, bag and box your wares.
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Use your imagination when you decorate your bakery. Come up with a theme that works nicely with your name or your baking specialty. Choose something that's clever, whimsical, memorable -- unforgettable. Paint your walls in soothing ice cream colors and don't make the mistake of hanging lots of art or photos. Your pastries will be all the scenery required. If you plan to allocate a small amount of room in your bakery so shoppers can enjoy a pastry with coffee or tea, choose tall bistro tables, but forget the chairs so nobody lingers.
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Keep your introductory and grand opening events within your budget. Schedule a grand opening that's an "invitation only" splash for members of the local media and the chamber of commerce, local politicos and members of charitable boards. Marketing schemes come and go, but word of mouth continues to be the very best way to promote a new business -- in your case, both literally and figuratively.
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