Are you a bakery whiz? Do you love to bake delicious cakes and desserts?
If yes, then you might be thinking about starting a home bakery which isn’t just fun but quite fulfilling as well. Sure, it is not easy to start a home bakery. You have to look at several aspects of home bakery business before you deep dive into this.
But trust me, if you have a good business plan in place, then you will be able to successfully run your home bakery and will actually be able to make a profit as well. And the best part is that home bakery requires a low overhead so, you won’t need a lot of money to start it.
Here is everything you need to know to start a home bakery and turn your passion into a money-making venture.
Prepare a Home Bakery Plan
The first thing that you need to do is come up with a business plan which you can refer to through the setting up process. Start with your bakery mission mentioning the type of products that you are planning to make and sell, specialization details, bakery business name, market research information, and a lot more.
This plan will act as a blueprint for your bakery business so make sure you make it as detailed as possible. Include the ingredients and equipment that you will need in your home bakery so that you don’t forget anything later on.
Once you ready a plan, half of your work is done and just the implementation of the bakery business plan is left.
Get the Necessary Licenses and Permits for Home Bakery
Before you start gathering the equipment and stuff, make sure that you know what all licenses you need to start your home bakery. These licenses and permits often vary, depending on your location, so do proper research and apply for the licenses beforehand.
Mostly, you would need a Food license, Health trade license, NOC from the Fire department, GST registration, etc. to get started. Also, make sure that before applying for the licenses, your food and kitchen follows the health and safety standards else you might be denied the licenses.
Decide on the Products and Pricing
Before you start investing in the equipment and ingredients, you need to decide on a product line for your home bakery. Determine what all bakery products you wish to sell at your home bakery and then figure out adequate pricing for it. Think carefully about the pricing as your customers will start expecting the same pricing for all your products.
Make sure that you price it such that you make a decent profit out of it. Consider the ingredients cost, equipment cost, time, and effort before you decide on a price. A lot of home bakers make the mistake of pricing their products too low which can result in lower income and profits.
Buy the Necessary Equipment and Ingredients
A home bakery without proper baking equipment won’t go far as you would not be able to produce quality goods. This is why it is important that you invest in proper, quality equipment like a stand mixer, oven, mixing utensils, storage utensils, and so on.
Apart from that, you will also need to get the ingredients for the baking recipes so that you can make the desired products at home. A good idea would be to a supplier/vendor who provides you quality raw materials like sugar, milk, dough, chocolate, and so on. This will ensure that you never run out of the materials and get a good discount on the ingredients so that you make more profit.
Set up a Storage Area at Home
Another thing that you would need to do is set up a separate storage area for your baked products. If you don’t have a proper storage area, then the chances of your baked products and raw materials getting spoilt increases greatly.
For this, you would need a large refrigerator to store all your dairy products like milk, eggs, butter, etc. to keep safe and fresh. And you would also need separate storage space for your finished products where they won’t become stale and will stay fresh for at least a couple of days.
Prepare a Marketing and Advertisement Plan
Once you have your home bakery set up ready, it is time that you focus on the marketing and sales plan for your home bakery business. How are you going to attract customers and build a relationship with them?
Well, one of the best ways to do this is by creating an online presence for your home bakery using the website and social media channels. Make an easy-to-read website for your home bakery listing down the products that you offer. It would be a good idea to pay a professional website developer to make a website that is catchy and dynamic.
You can also give discounts and coupons at regular intervals to get more customers to buy from your home bakery.
Also, create a page for your home bakery on social media channels like Facebook, Instagram, Twitter, etc. Here, share pictures of your products so that it reaches more people who might end up buying products from your home bakery.
Define a Medium for Placing Order
Another thing which you need to figure out is how the customers can place their orders at your home bakery. Will it be an online ordering portal or an offline ordering system?
If you are planning to take online order then you would need to tweak your website to include the option of online payment and cart system as well. You can also take orders via phone or Social media channels depending on the mode which is best suited for you.
Figure Out the Logistics for your Home Bakery
Finally, you need to determine how you are going to deliver the products to your customers. For local deliveries, you would need to hire a delivery person so that you can focus on fulfilling the orders on time.
So, you need to evaluate the time and the money that would go in each delivery as well. Make sure you include all these costs in the product price and plan well ahead for your deliveries.