A Collection of Resources Related to Starting a Bakery
So you’re considering starting your own bakery. There are a number of things you need to consider before moving forward because the following will determine what is needed.
What kind of baked goods are you planning to make? Will you make bread, pies, pastries, donuts, cakes, tarts, etc.?
How will you distribute your baked goods? Will you be selling in a retail environment or wholesale? Will your customer buy off the shelf in your bakery, or are you planning on having your product available in grocery stores? There are a lot of issues to consider.
For this post, the majority of the focus will be opening a bakery where you sell your baked goods to the local area.
What you need to consider:
Will you be setting up a café-style bakery for people to come in and possibly have a coffee, tea, or hot chocolate while enjoying some of your delicious baked goods? Or will you be strictly selling your products out the door?
If you’re selling out the door, will your bakery be a home-based bakery or a storefront?
Once you have all the above figured out, you can start to look into what you need to get started.
Is this what you want?
An important step when starting any business is knowing if it’s the right business for you. Make sure you’re getting into something you have a passion for, something you’re interested in, and something that you would do for free if you were financially set for the rest of your life.
Why would I work for free, you ask?
Good question — because starting and running a business isn’t easy, you have a lot of trial and error, and it may take years to become successful. So, if you are looking for instant success, you probably won’t find it. If you are willing to work for free, then you are dedicated to your business, you are passionate about it, and you’re interested in what you’re doing, so when problems occur, you’ll be looking for a solution rather than a way out.
Demand for Pastries
Once you have your heart set on opening your bakery, you need to check out the competition in the area. If there is a lot of competition, then you may not be able to get into the market, and a less competitive area may be a better option because, in order to succeed in an oversaturated market, you’ll need to bring something that your bakery can provide that others won’t or can’t.
Another issue to keep in mind when there is a lot of competition is that people compete on price, and when there is a price war going on, it becomes a test of endurance to see which business can last the longest. With low-profit margins and low revenue, it will be very difficult to keep the lights on!
If there is no competition, then either you hit the jackpot or others have tried and there is not enough of a demand to open a bakery in the area. With low demand, you’ll also have a hard time keeping the lights on.