Starting a new baking business
When it comes to starting a new baking business the key ingredient to your success is planning. The team at NBIA have extensive experience running a bakery business and are available to assist you wherever they can. Please feel free to call or email us with your queries or concerns.
Following is a list of considerations for your plan:
Your business plan is an important part of your success because it formalises the type of business you want to open. Your plan should contain an executive summary, company overview and description, market analysis, business offerings, management plan and ownership structure, marketing strategy, and financial projections. A strong business plan will help you get funding and simplify the opening of your new bakery.
There are many costs involved in starting up a bakery business and it is unlikely that you or your business partners will be able to fund the new business without a bank loan of some description. Make an appointment with your bank to discuss your business plan and what funding you will need. Consider fitting out your kitchen and front-of-house, insurance, wages, training, the cost of marketing, stocking your kitchen, and paying for utilities. Also bear in mind that it may take several months before your business is profitable so you may need a stash of cash to cover this time.
Once you have funds you can start looking for a commercial space for your bakery. The space that you need will vary depending on the type of bakery that you are going to open. You will need to consider things like accessibility, competition, size, location, and local demographic. Once you have found a suitable location you will need to hire a lawyer or solicitor to draw up and negotiate a lease.
A business in the food service industry is heavily regulated by state, federal, and local bodies. You will need to obtain some permits and licenses before opening your bakery. Check with your local laws and regulation to see what is specific to your new business.
Once you have secured a location for your new bakery you can begin designing and organising your kitchen, front-of-house, and signage. You should consider the baking process in your kitchen design and a front-of-house layout that allows your customers to browse and make a purchase with ease. If you will be having tables and seating now is the time to position them to allow customers to flow through easily. Engage a sign writer to design your signage to suit your location and target audience.
Hiring staff can be the most difficult exercise in the process and will depend heavily on they type of bakery you are going to open. In the kitchen you will need qualified bakers or pastry chefs and possibly unskilled workers for washing dishes and other such tasks. On the retail side you will need staff that know how to use a cash register and have good customer service skills. Remember, you may need to train staff to put together the perfect team.
Marketing your business doesn’t need to be complex and you should plan it out and have as many things as possible automated before you launch your business. You should consider who your audience is and where they will get exposure to your marketing. Set goals and track your progress so you know what works and what doesn’t. Start up your marketing before you launch your business so that the public is curious to find out what is coming. When you are ready to launch your business tell everyone (local newspaper, local radio, and the local community), people won’t show up if they don’t know you are there.