Starting a Bread Bakery From Home
If your homemade bread is popular among friends and family, you may consider starting a homemade bread business. The business will require you to make items from the comfort of your kitchen to sell to people. This will reduce overall overhead costs as there is no need for an expensive storefront or hiring many sales people. It will also allow the entrepreneur to spend time at home with family.
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Things You'll Need
- Business Plan
- Start-up funds
- Tried and Tested Recipes
- Permits and Licenses
- Supplies and Equipment
Instructions
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Find out if the state allows the operation of home-based bakeries. As of June 2010, only eleven states in the United States allow home-based bakers to sell their baked items to the public.
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Draft a business plan that focuses on the home bread business. This must include all goals, objectives, and targets of the business. The business plan would include details of strategy that would be used to reach goals. It would also include details of the money that is needed and how the start-up capital would be raised. It will also discuss the strategy by which the business would be marketed to potential customers. This plan would be required for business registration.
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Name the business. The name must be able to reflect the aims, motto, or ethics of the business. Consider personalizing every aspect of the business. Print the name of the business on big foil stickers and stick them on all papers that are used by the business. Also, stick the sticker on packaging of all items that are sold.
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Convert your present kitchen into a commercial kitchen. The inspection team from the health department would be able to brief you on the requirements to be termed as a commercial kitchen. The Food and Drug Administration has strict regulations about food businesses starting at home. This is to ensure the food is safe for human consumption. Apart from the usual measuring cups, mixing bowl, eggbeater, food processor, you will require specialized pans for breads that allow multiple items to be cooked simultaneously. Investing in some commercial bread-making equipment will reduce the time spent in the kitchen by the baker, as this equipment is able to churn out large batches of dough in comparison to home kitchen equipment. If resources are low, consider buying second-hand equipment. If you plan to deliver the items, you will need a vehicle. You will also need proper space for storage of ingredients.
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Visit the local government office to inquire about the licensing that is necessary to start such a business. Various business permits are required to operate a business. You will be required to make an administrative fee payment for the documentation checking and processing. Since it's a food-related business, the business would need to be registered with the Food Regulatory Specialist Department. Hire the services of an attorney if you are unsure of the requirements.
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Open a separate checking account with a bank for the business. This will make tax filing easier at the end of the year. Hire the services of an accountant who would be able to discuss all tax-related information.
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Research your favorite bread recipes. Get friends and family to taste your recipes and select a few. A dozen recipes should be good enough to start with.
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Diversify the product range that you sell through the business at a later stage. Consider baking other items apart from bread. Try cookies, cakes, muffins, pies, etc., in addition to the bread.
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Ensure all breads that come from the bakery remain safe and fresh. Do not forget to mention the ingredients on the packaging. Some people may be allergic to certain ingredients.
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Decide a fixed pattern for replenishing the supplies, including ingredients and other items such as cleaning supplies. This can be done on a weekly or monthly basis. Consider setting contracts with wholesalers for all buying needs. Ensure cleanliness and hygiene is never ignored in the kitchen. Your kitchen can be given a surprise visit by the concerned authorities.
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Advertise the business as much as possible. Ensure everyone in the neighborhood knows about your home business. Pack samples of your breads and take them to the local restaurant, clubs, cafeterias, shopping areas, grocery shops, and allow customers to try them for free. They may be more likely to order from your home business if they have already tasted the breads. Consider speaking to local cafes, catering companies, and restaurants, as well. They too might be interested in ordering your breads. In that case, you must be ready to take up large orders.
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Consider selling your baked breads at flea markets, farmer's markets, festivals, special events, craft shows. This will increase the customer base to some extent.
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Networking is the key. Promote your business through your social contacts. Donate breads to charitable organizations to display your goodhearted spirit. You will be surprised how fast word-of-mouth advertising travels.
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Use promotional tactics, such as giving out promotional coupons to customers. For example, for every purchase they make, stamp their cards. After ten purchases, they would be given a free cookie or voucher. This will motivate them to come to your bakery and not go to others.
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Hire trained and experienced staff. A baking business is definitely not a one-man show. You will surely require help at some point of time.
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Keep sale receipts in place. You will be required to pay sales tax on all items that are sold. The receipts will be helpful for amortizing the purchases when the tax return is filed at the end of the year.
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References
Resources
- Photo Credit baking image by GiGiZ from Fotolia.com
