First Steps to Opening Your Own Bakery

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Are you looking to start a bakery? If yes, then you are in luck because more than 90% of Americans consume baked goods. This offers a large pool of potential clients that you can tap into and start a successful business. However, starting a bakery requires adequate planning for it to be a success. Here are four first steps to opening your bakery:

1. Bakery Products

Overall, bakeries provide various products ranging from breakfast doughnuts and Danishes to pies, cakes, and cookies. A number of bakeries specialize in one particular product catered to a particular target market. Determine your experience and strengths, then make an assessment of the market when deciding on the products to be offered. In case you plan to start a cupcake bakery, but there are several competitors providing cupcakes in your region, determine what will differentiate your products from the competitors’. You may provide giant-sized cupcakes, designer cupcakes, and special orders to differentiate yourself from others that are displayed in bakery racks.

2. Financing

Starting a bakery has some costs that are different from other small businesses. A well-stocked kitchen, ovens, and refrigerators can require a significant initial cost. You will also need marketing costs to advertise your business and a business license to sell pastries. If you want to buy a business that exists, weigh the cost of the purchasing the existing business versus these startup costs.

In order to make the suitable choice for you, determine the personal assets that you can contribute to the business and decide whether you can incur the initial cost on your own. Create a list of all assets, including vehicles, real estate equity, investment and savings accounts, checking, and any other. In the case you cannot afford the initial cost, consider the application for a business loan or solicitation of external investors. External financing may lead to financial obligations in the long run or limit management control but may be necessary to start your bakery.

3. Type of Business

If you want to retain sole legal, management, and financial responsibility for your business, a sole proprietorship form of business could be ideal. But remember that sole proprietors are personally liable for all legal and financial business obligations. In the case you would like to share these obligations, you can go for a different form of business like a limited liability company or a limited partnership. These business structures assist in the alleviation of some of the legal and financial burdens faced by a sole proprietor. Come up with business bylaws or formal partnership agreements for any form of business involving other people.

4. Marketing Plan

Form a written marketing plan comprising the ways you want to reach your target audience and accomplish sales. In order to make revenue, a business has to define their target customers and the communication methods to be employed to reach them. Additionally, research your local competitors and plan how you will differentiate yourself from them to make sales. Local resources like merchants’ associations, economic development corporations, and small business development centers can provide consumer and business demographic information to assist you in determining your target audience and assessing the competition.

These four initial steps to opening your bakery will see your business having a smooth start. They comprise the initial business plan that will see you through from beginning to the operation of your business. Also, don’t forget to look into POS trends so that you can choose the appropriate point of sale system for your bakery business. Happy baking!

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