How to Start a Bakery Business | FBOI

As more people have started opening their startup business, we have seen that the food business is on a rise too. More people have started following their dreams of opening a restaurant/café/bakery and have become quite successful as well.

This doesn’t mean that getting into the food business is a cakewalk. But yes, with proper planning and implementation, you can definitely start your food business and start earning from it well. Stumped on how to go start your bakery business?

Don’t worry, we understand how harrowing it can be to figure out the process of starting a bakery business. This is why we have listed down the steps that you need to follow to start running a successful bakery business of your own.

Steps for Starting a Bakery Business

Just follow these steps and you will have a functional bakery business in a short time.

Learn how to Start Your Own Bakery
Learn how to Start Your Own Bakery

Prepare a Bakery Business Plan

Before you start researching how to start a bakery business, you need to jot down a business plan to follow. This business plan will not only help you streamline the process but will also help you allocate the budget wisely and help you envision a business growth strategy.

In this bakery business plan, you need to note down the aim of your bakery business, information on the target audience, your operations and marketing plans, finance breakdown, and a lot more. Once you have a business plan prepared, it will be easy to implement it and get started with your bakery business.

Decide a Location for Your Bakery

One of the most important steps in starting a bakery business is deciding on the right location for your bakery business. Ideally, a shop in a high-end shopping street is a good option. Also, choose a location that is easily accessible on foot from the main road.

Make sure that your shop has enough space for a kitchen and a display area. If you are planning to set up a dine-in option then you would need additional space to set up the chairs and tables.

You would also need to consider the rent of the shop and choose a place which will easily suit your budget. Also, make sure that the bakery shop has proper drainage and water supply facility. Get all your legal paperwork in order and obtain an NOC from the property owner as well that he/she has allowed you to use the place as a food outlet.

Gather the Funding For Your Bakery Business

Once your business plan is ready and you have a suitable shop location in mind, you need to start gathering funds for your bakery business. You could get a loan from the bank or find investors for your bakery.

However, make sure that you get sufficient funds before you start constructing the bakery. And try to keep some savings aside for your personal use for the first couple of months when you might not make a lot of profit.

Gather all the Necessary Licenses

When you have the required funds ready for your bakery, you need to start applying for the mandatory licenses and permits.

Primarily, you will need 5 licenses – FSSAI license, Health Trade license, GST Registration, Eating House license, and Fire Department NOC. Make sure that you get all these licenses before you open your bakery otherwise there are chances that the government officials shut down your shop and levy a huge fine from you as well.

Apart from these major licenses, you would also need to get a signage license, music license, and so on.

Hire the Required Employees

Another important step in starting a bakery is hiring quality staff for your bakery business. And not just any staff members will do, you will need to hire an experienced and talented head chef, commi level chef, helpers, receptionist/cashier, and so on.

Depending on the size of your bakery, you would need the number of employees to run the bakery efficiently. You would also need to take into consideration their salary which will mostly depend on their skills and experience.

Buy the Necessary Equipment and Find Suitable Suppliers

One of the most important things to take care of is the equipment and supplies for the bakery. This would be a costly investment but an essential one. So, make sure that you invest in good quality equipment which is made up of stainless steel material.

You will need a refrigerator, cooling fridge, gas stove, oven, mixer, mixing bowls, utensils, and so on.

Apart from the equipment, you would also need to find good suppliers for your bakery business. These suppliers will be responsible for delivering raw materials like sugar, salt, dough, milk, cocoa powder, etc. regularly. So, choose a supplier which delivers quality goods and offers you a decent discount as well.

Create a Marketing Plan for your Business

Branding and marketing of a business are important for it to flourish. And well, the same applies to a bakery business as well.

Start by getting a professionally designed logo for your bakery and then prepare the menu and signboard using the same logo. Make sure that you add this logo on your packaging as well and invest some money in a good board display and advertisement pamphlets as well.

You can also get a well-designed website for your bakery business where you can show the products that are served at your establishment. If you have the manpower then you can add delivery services option as well to reach more customers.

And don’t forget to use Social Media channels to create a buzz for your bakery business. This will come handy when you open the bakery and hold events and parties at your establishment.

Take Care of Other Miscellaneous Stuff

Finally, spend some time on the miscellaneous items like a display storage area, POS system, online ordering app, mobile phone numbers, etc. If you want your bakery to look sophisticated and professional then you can make your employees wear a staff uniform as well.

And a good POS system will make it easy to generate invoices and keep a track of your inventory.

So, what are you waiting for? Go and open your dream bakery now! With these tips, you can definitely make your bakery successful in a short time! 


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