14 Things You Need To Know Before Starting a Bakery Business


Are you planning to start your bakery business? You have got a diploma in bakery still wondering how to start? Read this article.

1.      Planning

Write down your bakery business plan to streamline the decision-making and save your finances. Determine which type of bakeries you want to establish i.e. retail, wholesale, online, home bakeries, etc. Following are the important sections to be included in this plan –

·       Summary

·       Business Overview and Description

·       Industrial Analysis

·       SWOT Analysis

·       Business Offerings

·       Operations Plan

·       Ownership Structure

·       Financial Analysis

·       Marketing and Advertising Plan

A plan is a solid foundation for a business to set milestones and keep it running successfully for years.

2.      Budget

Another significant point to consider is to determine the total cost involved in setting up a bakery business. It can be determined based on factors – location, licensing, billing POS, equipment, staff, marketing, and more.

3.      Location

Choose the space in a well-known market ensuring it is clearly visible and accessible. Make sure that proper electricity, water supply, and drainage facility are available. Check the crime rate to ensure safety and security. After finalizing the location, draw up and negotiate an appropriate lease agreement. Don’t forget to get NOC (No Objection Certificate) from the landlord.  

4.      Menu

Decide the menu ensuring you offer the best and unique from others. Consider seasonal dishes and analyze regional or worldwide trends based on your goal.

5.      Customers

No matter how much effort, time, and money you’ve spent to start a business, everything will go in vain if you can’t reach your target customers. So, first, find your ideal customers and try to make them happy and completely satisfied. Ask them for feedback for better improvement.

6.      Permits and License

In total, there are 5 licenses required to open a bakery business. These are FSSAI or Food License, GST Registration, Police Eating House License, Local Municipal Corporation Health License, and Fire License.   

7.      Buy Essential Equipment

Once you finalized the bakery type and size, purchase all the essential equipment. The major one includes a deep fridge, baking equipment, storage utensils, cleaning warehousing, working table, display sales, planetary mixers, dough preparation, cylinder, and oven.

8.      Branding and Marketing

It is believed that words speak louder than actions. The same thought is applied in the bakery business. No matter how much time you’re giving in the kitchen preparing delicious dishes, it does not benefit you higher if nobody knows about it. So, create its branding and promotion in the relevant market to create awareness among potential customers. The marketing campaign, blogging, and social media marketing are some tactics to create a unique identity and market your business.

9.      Manpower

Create a team to get additional support. Get experienced staff including Head Chef, Cashier, Chef De Parties, Support Chef, Housekeeper, and others.

10.  Creative Front End

Design an appealing front end or display area ensuring proper storage to engage the customers’ attention.

11.  Know your Rivals

Find your competitor and their offerings. Provide better value than your rivals in terms of taste, price, and customer service.

12.  Grand Inauguration

Host grand opening by giving some discounts and exciting offers to convince customers and turn them into regular buyers.

13.  Go Online

Create your online presence and make online orders as demand for online delivery is rapidly increasing.

14.  Keep Patience

Setting up a bakery business requires hard work. So, be ready for sacrifices and keep some patience because every business needs time to pick up.

KSE is a leading institute offering the best course to help students make a career in the bakery field. For more details, you may contact us via phone call, email, or visit the website. So, go ahead.