Starting a new business from the scratch is never an easy task. You have to be careful and smart and need to consider a lot of important elements to be successful in your new endeavor. As a result, a lot of people often give up on their passion before even giving their business idea a chance and in a place like Delhi, you see numerous entrepreneurs rising and falling down every day.
Recently, a lot of food enthusiasts have started getting into the food business and are opening up their own small restaurants and bakery shops to fuel their passion. In Delhi, it might seem a little overwhelming to start your own bakery business but it is certainly not an impossible task. The best part about opening a bakery business in Delhi is that you will find a wide range of people in this city so you can easily target your desired audience and then cater to their needs. The opportunities are literally endless over here.
However, we understand that opening your own bakery business for the first time can be a bit challenging and confusing so we have prepared this guide to help you out.
#1 Do a Community Research
Before you can start with any business, you have to first look at your market and see the feasibility of your business plan. The same is true for a bakery business. So, before you can even think of getting the investors and choosing the location, you have to perform a small research on the bakery business.
For this, you will need to search online and ask people around you to gather more information. You can also create a poll to get information on the number of people who buy from a bakery and the products that they purchase. Talk to other bakery owners and gather more knowledge on how their bakery fares in the area.
Once you have sufficient data, you need to check if opening a bakery is the right idea for you or not. Once you have analyzed the pros and cons of opening a bakery business, you can proceed to make a plan and decide on other important aspects of your bakery.
#2 Add a Unique Element
There are numerous bakery shops in Delhi which sell delicious and presentable desserts and baked items. So, why would customers want to come to your bakery shop? What is unique about your bakery shop?
This is an important question that you need to ask yourself when you are making a business plan. Your bakery shop has to offer a unique element to the customers to lure them in. It could be the theme of your bakery shop or the products of your bakery shop. For example, you could sell customized baked goods for movie fans and book fans or you could have a cozy and warm environment with several books and games in place so that others would find it fun to visit your little bakery. These little changes will make your bakery more appealing to your customers and will set your bakery apart from other bakeries in Delhi. For example, Decadenz in Gurgaon sells desserts in a jar which is a new concept and sets them apart from other bakeries in the town.
So, try to implement something unique like this and then finalize a business plan. Once you have decided the unique characteristic of your bakery, you will also need to decide on the products that you are going to offer to the customers. In the starting, only add baked products which you are confident about and have mastered in making. While offering new baked desserts is a good way to lure in customers, one wrong serving can leave you with a bad review and can really damage your reputation.
So, choose products which you are exceptionally good at and slowly add more products to your menu as and when you master the recipe for them.
#Perform the Financial Evaluation
The next step towards opening your own bakery is to evaluate your finances and see if you have enough funds to invest in your bakery business or not. Any business requires an initial investment and if you don’t have proper funding for it then it becomes highly difficult to set it up. So, determine your financial status and decide if you would need an external investment or not.
If you have enough money to start you bakery venture then you can simply go ahead. If not, then you would need to get the necessary funding before you can move on to the next business steps. For this, you will need to check your credit status and see if you are eligible for a loan or not. If you can get a loan from a bank or financial institution then apply for it. However, if you decide to get investment partners for your baking business then you will need to properly research and choose the right partners for your business.
Choose the right funding for your bakery business is a critical step so don’t try to rush it and consider all your options carefully before making a choice.
#Choose the Right Location
Now comes the next step. Choosing the perfect location for opening your bakery. This part depends mostly on the type of bakery that you are going to open if it is going to be a home bakery or a proper bakery shop with/without seating arrangement. If it is a home bakery then you would need to determine the area that you are willing to serve. This is extremely crucial because delivering baked products from Dwarka to Mayur Vihar Phase 1 will take hours and will seriously hurt your bakery business.
So, decide the area which you are willing to deliver and then be prompt about your deliveries and services.
If you are planning to open a bakery shop with/without seating arrangement, then you would need to look for a place where people are more likely to visit your bakery. So, if you are planning to open a bakery in East Delhi side, look for a place where there are no prominent bakeries and where more people are like to visit. For example, I.P Extension is a residential area in East Delhi so a bakery here would be beneficial for you or Atta Market in Noida where people often spend a day in shopping.
Also, make sure that your bakery shop is not far from your residing area as it would waste a lot of your time in commuting in Delhi. You will also need to consider the rent amount and then select a place according to your budget.
#Get the Necessary Licenses
Once you have rented the perfect space for your bakery, you need to start by taking the necessary permits in order to set it up. To set up your bakery, you will need FSSAI permit, Local Municipal Health permit, fire license, etc. to name a few. For these permits, you will need to pay the permit fee and fill in the paperwork and wait for the inspection of your baking space.
Once the inspection finds that your bakery space is safe and hygienic and is properly maintained you will get the required permits allowing you to open your bakery shop. Here are a few permits that you need to get prior to opening your bakery shop:
- FSSAI permit will give you the food license that is needed by all the food business in order to prepare food and will only provide you with a yearly permit. As a result, you need to renew your food license every year to ensure that you can keep cooking/baking food in your shop kitchen. However, you can get five-year permit to avoid paying the renewal fee every year and save yourself both renewal money and effort.
- You will also need to get Local Municipal Health permit by paying a fee and getting your space inspected before you can install your kitchen space.
- Another thing that you need to do GST registration for your bakery shop with the help of your Chartered Accountant or by taking help of someone who has already done this.
#Purchase the Required Kitchen Equipment
Once you have the necessary permits in place and have all the paperwork completed, you need to get the necessary kitchen equipment and baking tools. This means you will need to find a good quality oven, freezer, deep fridge, baking pans, etc. and you need to purchase several baking utensils to get started. Apart from this, you also need to invest in multiple mixing bowls, baking pans, cookie sheets, muffin pans, and so on so that you can prepare large batches of cookies, cupcakes, etc. at a time.
Avoid buying cheap kitchen equipment as this can often alter the taste of your baked item and will cost you a lot in the long term. If you don’t have enough funding to buy the best quality equipment then compromise a little on the working table, storage utensils, etc. but try not to compromise on the quality of your mixer, oven, freeze, and so on.
#Find the Right Vendors for your Bakery
Apart from getting sufficiently high-quality kitchen and baking equipment, you will also need to form a partnership with different vendors to get an ongoing supply of ingredients. This means that you will need to consult other bakery owners and then talk to different vendors and then choose a reliable and trustworthy supplier for your baker. Every bakery needs a continuous supply of fresh and good quality ingredients so don’t make just anyone your bakery supplier.
Choose a company which will deliver you fresh ingredients promptly and will not cost you a lot in the long term. A lot of bakers often think that getting ingredients from the supermarket is an easier and safer option but supermarket goods are not fresh and can often not produce a good and delicious dessert. This is why you need to find a supplier for your bakery shop.
#Take various Bakery Classes
Apart from setting up your bakery kitchen and getting all the equipment and ingredients ready, you also need to hone your baking skills. If you are going to be the primary baker in your business then you need to attend different baking workshops to learn more about baking and its different techniques. This will help you in mastering a particular baking dish or dessert and you will also learn new recipes that you can add to your bakery business.
Apart from helping you out with your baking skills, these baking classes help the users with some basic tips and hacks which comes handy when setting up your bakery business. There are also bakery management workshops which help new bakery business owners in setting up their business and in growing it successfully.
Make sure that you enroll in these workshops and classes before you start your bakery business and get the required information before you finally open the bakery shop. There are several baking workshops and management classes being held in Delhi so you shouldn’t have any problem in finding one. You can check out some established food blogs in Delhi for information on these workshops or check out the Delhi events in newspapers and Internet.
#Decide the Logistics
An important thing to consider when setting up your new bakery business is the logistics section. It doesn’t matter if you are opening a bakery shop or managing your bakery business from home, every bakery organization needs to have a logistics plan. A lot of home bakeries have a single person who bakes the cake and delivers it too and while this does save a lot of expenditure, it can become really tiresome too. So, make sure that you contact your family and friends to help you out or you can employ a single delivery person for your business.
Another thing that you need to decide is the mode of payment for your bakery shop. If you are running a home bakery then you might want to stick to COD and Net Banking options. Also, try to take advance for bulk orders to avoid getting cheated by the customers. However, if you have a proper shop setup then you might need to get a POS and billing software for your shop to keep a check on the inventory and for seamless money transfer. POS will make it easier for people with credit cards and debit cards to make the payment and will make it more convenient for customers to purchase baked goods.
#Hire Staff for Help
Once you have everything in place, you need to start hiring people for your bakery shop to grow your business. While you might think that you can start your bakery business alone and can take occasional help of your help, this is not always feasible. It is okay if you are a home baker, then you don’t need to hire any staff immediately. However, if you are opening a proper bakery shop in a crowded place then you need to be prepared and hire a few helping hands for the busy time.
No one would like a slow or sloppy service or a bakery shop with the cashier always busy so hire a few people for various tasks in your bakery shop. If you have a kitchen in your bakery shop then you might need to consider hiring a professional baker for your place. Also, if you are planning to be the head baker in your own bakery shop then you would need to hire a cashier, server, delivery guy, helper, etc. so that you can focus solely on baking fresh items. You cannot bake and manage the bakery at the same time.
So, try to hire responsible and trustworthy people who will easily manage your bakery and won’t take advantage of you too.
#Promote your Bakery Brand
Finally, you need to name your Bakery and then advertise & promote it on all the platforms. You can do this by printing pamphlets for your bakery and then distributing it in your area or you can give a small advertisement in the newspapers. Another efficient way would be by sending out invitation emails to your friends and family for the inauguration of your bakery shop. Send messages on WhatsApp, post pictures on Instagram, and try to spread out the word. Ask your friends and family to help in promoting your bakery brand and always make sure that you deliver the best to the customers. This is important because a lot of people leave reviews for the places they eat at on Zomato, Facebook, etc. and these reviews can really affect the image of your bakery.
If you have the means and time then you can also start a blog or a website for your bakery business and post the recipes or pictures of your latest baking adventures on it. You can also make it easier for customers to order your desserts and cakes through your website portal which is bound to make it more popular in Delhi. Mostly, try to post interesting photos and content about your bakery which will grab the interest of your peers and try to market your bakery properly on the various social media platforms.
#Attend Workshops and Meetings for Networking
Once your bakery shop is finally set up and initialized, it is important that you grow your network and meet more people to better your bakery business. This means that you will need to attend bakery meets and conventions and listen to other bakery owners and baking experts on how you can grow your bakery business.
You also cannot stop attending kitchen management and bakery workshops if you want to keep growing your bakery business and want to make it more successful. Always remember that growth is the key to success so always strive to improve your business by improving your services and products. Delhi is a competitive city where you will find numerous bakeries competing with you. So you need to stay one step ahead of all the other bakeries. Show your customers your unique services and keep making them come to your bakery shop again and again.
Once you follow all these above-mentioned steps, you will be able to start running a successful bakery in no time at all and will finally be able to fulfill your passion.