How to open a new bakery shop?

There are many people out there who dream of opening and running their own bakery shop. Starting a bakery shop takes a lot of commitment than just dreaming. Most people who try it fail in their efforts as soon as they realize that the endeavor is not as simple as they thought it would be.

Here are 5 steps to open a bakery shop:

Step 1: Select the kind of bakery you’d like to open

The first thing you’ll need to do is decide on the type of bakery you’d like to open. Do you want to open an online bakery shop or a counter service bakery ? Will you be selling specialty cakes or baked goods or a combination of both? In addition, determine if you will just sell baked goods “to go” or allow people to sit down and eat. In order to make a good decision , you will want to assess your budget, talents as well as goals. Do enough research on trends in the baking industry and don’t rush. Take your time before making up your mind.

Step 2: Draw up your business plan

Once you make a decision on the type of bakery shop you want to start, you need to lay out a business plan. This will help you define your business and your goals. Find an ideal name for your bakery shop and decide if the bakery shop will be a single proprietorship, partnership or corporation. Register your business with the state and obtain the necessary permits and licenses to operate. As part of your business plan, you’ll need to assess your start up costs and examine your financing options. List all the expenses, identify customer base, and examine competition level in the industry. You will also need to compile a list of essential equipment, from baking equipment, shelving, ovens, utensils, pans, and commercial fridges.

Step 3: Decide on the location

Find the most ideal location for your bakery shop. The best location would be one which has many potential customers. Use your city’s demographic data to identify the best location where you can operate your bakery shop. Alternatively, you can conduct a market survey and find out what potential clients look for in a bakery shop. Choose a location size that can comfortably accommodate baking equipment, storage, counters, tables, and chairs.

After you’ve found a good location, consider hiring competent workers. You will need bakers, cleaners, waitstaff, among many others. Determine the number of people you’ll need to bake, serve and perform accounting duties. Hire experienced workers if at all you want to succeed in your business endeavor.

Step 4: Set the right price

Setting the right price for your baked goods will depend on the ingredients and raw materials used, packaging, and cost of other supplies. Besides, prices should take into account things like promotional expenses, time taken to make the baked goods, cost of the premises, and other additional costs.

Step 5: Launch the bakery shop

Once you have taken care of all the above-mentioned steps correctly, its time to launch your bakery shop with a grand opening celebration. Advertise the launching day by posting ads on newspapers, radio commercials, digital marketing, social media and handing out flyers. Consider giving out free baked goods with your label attached. Give out business cards and flyers with your business name to attendees.

Overall, to operate a successful bakery shop, you must be dedicated in finding out what attracts customers. Invest in research and stand out from your competitors.