1. Determine the type of bakery you want to open.
What kind of bakery do you want to start? To do this, you have to consider budget, talents and goals. There are generally four types of bakeries (listed below) and figure out which option is right for you.
• Online Bakery: You don’t need a storefront to open a bakery. You can start out through the internet with a killer website, pictures of your work, and a way to place an order, then you can run a bakery from your home. Bakers have found it a way to provide baked goods at a lower cost.
• Counter Service Bakery: In a small commercial space, customers can walk in and pick up baked goods from an employee-managed counter.
• Sit Down Bakery: A lot of bakeries nowadays are trying to attract more customers and gain more profit by allowing their customers to dine inside the bakeries. They provide clean seating and waiting services, also menus with a selection of food their customers can choose from. These bakeries are like cafes, as they add coffee beverages and other refreshments, but that they still would mostly specialise in baked goods.
• Specialty Service: There are bakeries that specialise in certain types of baked goods. Usually, the products customers purchase from these types of bakeries are those that are pre-ordered.
2. Make your business plan.
Once you know what kind of bakery you’ll open, you need to create a business plan. By creating a business plan, you’ll push yourself to look at the business from every angle. This plan will define your business, set goals, create a plan to generate revenue, list expenses, describe your customer base, and examine your competition.
3. Invest for the supplies you need.
You’ll need to compile a list of equipment that you’ll need to make baked goods. Make sure you create a full list of tools, from appliances like ovens and refrigerators, to smaller items like utensils and pans. The equipment will be a one-time hit, but you’ll also need money to live on while the business gets established. You won’t generate revenue overnight, so you need to sit down and find out when you’ll break even and how much money you’ll need to survive until that time.
4. Price your baked goods.
Most bakers are basing price points on the cost of supplies and the time it takes to make the goods, but Green says this formula is flawed. According to her, prices should include things like clean up time, packaging, and time spent promoting your business on social media. The biggest hidden cost in a bakery is time. There’s nothing worse than realising afterwards that you earned 50 cents an hour on a fabulous creation.
5. Find support.
Opening a bakery is time-consuming. Time spent for baking is only half the commitment. You’ll need to market your business, take orders, help customers, and do an array of administrative tasks that will all demand your time. If you don’t have someone cheering you on, it can be hard. Whether it’s your spouse, a colleague or business mentor, you need someone in your corner.
If you’re planning to open your own business, get an inspiration from the best cake and pastry shops in Australia.