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How To Start Bakery Business As A Beginner

If you want to setup a bakery business, even if you don’t know how to bake, here’s your step by step guide as a Beginner. In Nigeria, bread is one of the staple foods. That goes for all the bakery products. They are now staple in our lifestyle.

Sometimes the challenge is the thinking you should know how to bake before you can venture into bakery business. To start a bakery business, you only need to think like an investor. However, having the knowledge of baking is an advantage.

The market for bakery products is very huge and competitive as well. But you can choose to stand out with your own delicious recipes. Anyone can win in the bakery market. It’s not a first come takes all. A new entrant can sweep the entire market to its favour if you know what to do.

Understanding Bakery Business

Bakery business involves the production and sale of food made out of flour and prepared in an oven. These foods include bread, cake, pies, cookies, biscuits and pizza.

The bakery business is interesting. It involves a wide variety of products. Some bakery industries specialise in a collection of flour-based products while some only specialise in just one, for example, a bread bakery.

As a beginner, bakery business is lucrative and gives you a certain freedom to an extent to work from your home. If you’re a huge fan of baking and work-at-home jobs, you can start a bakery business at home even as an online business.

You can also transform your kitchen or garage to a mini bakery and shop with tables and chairs to accommodate those who want to sit and eat.

Tips On Setting Up Your Own Bakery

#1 – Get started with the kind of shop and business you want. Take your time with this. This step involves your view and the idea of your bakery. What does it look like in your head? Sketch it out.

  • Do you want to work from home?
  • Do you think a shop is the best for you?
  • What are your preferences?
  • What are your ideas?
  • How do you want your bakery business to be?
  • Answer these questions yourself to help you figure things out.

#2 – Make a plan, like every house before it’s built, and every business before it starts, a plan must be drawn. If you can do it yourself, get a business consultant to do it for you. Once you have figured out your strengths, weaknesses and preferences, write them down. Draw it out. More than keeping them in your head, it’s better to have a sketch on paper.

This plan should include your start-up cost, the amount needed to start your business. Also, include the specificities of your business. These include the products you’ll be making, their prices or price range of you don’t know it yet and all the equipment you need to start your business.

#3 – Map out your pricing plan. Formulate a plan you’ll use to figure out the price of each of your products. The factors to consider when choosing a price should include the time spent preparing the product, the price of ingredients, the time spent publicizing your business, and packaging.

Time is money. The time spent on a baked food or a batch of baked foods should be accounted for.

#4 – Find a space. Your space is your kitchen or garage if you’re working from home. If you would be owning a shop, be patient and be selective in your search for the perfect one. The right space should pay for itself overtime.

#5 – Marketing: Before you start baking, especially if you’re home-based, announce your business to the world. Or your community at least.

Use mouth to mouth and person to person mechanisms to inform people of your new bakery and the kind of goodies you make. Make sure you accompany your talk with beautiful pictures of your goods or printed flyers.

You can also spread the word via social media platforms like Facebook, Instagram and WhatsApp.. Send digital flyers to your friends, family and followers and make them send it to their friends and followers too. To further brand your bakery and increase your publicity, open social media accounts for your business.

#6 – Storage: A fridge or freezer is important in your bakery business. Baked products need to be preserved because they have a short lifespan which can only be extended by freezing them.

Buy the right cooling storage system. The regular home fridge may not be most ideal. But if that’s what you have , ensure it’s the type that has temperature control. Baked products have their proper cooling temperature for storage. Avoid letting them freeze above the required temperature.

Startup Cost And Requirements

The start-up cost of a bakery business is required to cover the necessary pieces of equipment, ingredients and the cost of a shop (if you would be getting one). The start-up cost depends on how large you’re starting. If it’s a small in-house business, it would cost less and the opposite for a larger business.

Pick your cost level based on the size of the bakery business you. If you are starting small, know what’s needed and invest only on such equipments for a small startup. You can upgrade as the business grows.

Types of Bakery Equipment

There are several pieces of equipment used in bakeries. The following are five classes of bakery equipment:

Cleaning Equipment: These includes equipment used to clean used and dirty equipment. Examples are dishwasher, soap and sponges.

Preparation Equipment: The equipment in this class are the ones implemented in the preparation of the baked goods. Examples are mixing bowls, cookie cutters, electric whisks, spatula and tables or boards for kneading.

Baking Equipment: This includes equipment used in the baking process. They include baking tins and trays.

Exhibition Equipment: These equipment are used to exhibit baked goods. They include display containers or boxes and display racks.

Storage Equipment: These are equipment used to store ingredients and baked products. They include freezers for perishable items and shelves for non-perishable ones.

Types of Bakery Products

The number of bakery products is inexhaustible. More new pastry ideas are being created everyday. You too can create yours. However, you can also explore some popular local pastries around the world and give your customers something new.

There are many types of bakery products but below are just a few popular ones.

  1. Bread
  2. Cakes
  3. Muffins
  4. Cookies
  5. Pizza
  6. Dessert
  7. Pastries
  8. Biscuits

Highest Demand Bakery Products

The bakery products with the highest demand are bread and cake. Bread is a popular choice of food eaten all over the world. Bread can be served in different ways and with a variety of accompaniments.

Cakes are consumed as desserts, breakfast and during celebrations. But depending on your target customers, the best products might not be bread or cake. For example, if your target customers are people planning events, pastries like small chops, buns and cakes may just be what is best offered to them.

You just have to identify your own best bakery products based on your target customers.

Challenges of Bakery Business

There are many challenges of bakery business, from setup cost to picking the right location, and creating the best user experience. But the top three challenges that stands out are about staffing, waste management and customers knowledge-base.

Getting The Right Staff:

The staff of a bakery is as important as that of any business. The staff is needed to serve customers, produce baked products and do deliveries. A bakery business with few staffs than needed would need to source for more.

Minimizing Waste:

Waste is one of the major challenges in a bakery business. Scrapings from cakes, leftover pastries and dough are some examples. To prevent wastage, cake scrapings can be sprinkled as toppings on cakes and the leftover dough can be collected and used to make an additional baked product or frozen for later.

Customers with little knowledge of gluten-free products:

This may come as a challenge to a bakery since most people wouldn’t buy what they know nothing about. This challenge can be curbed by letting the staff (waiters) briefly explain what it means to the customers.

Digital Marketing For Baked Products

It’s more easier to promote your bakery business using digital platforms. It creates even the best word of mouth of publicity that you need. Moreover, with location based advertising you can reach only those who are within reach to buy your bakery product.

You can find a lot of bakery marketing ideas online. Most bakery businesses explore the potentials of Instagram, Facebook and WhatsApp. You can also expand it with a website for quick ordering.

Selling baked products online makes it easier and faster for customers to make a choice of what they really want from the collection of finished bakery products you post online.

Conclusion

Starting a bakery business is profitable, interesting and satisfying. If baking is something you love to do, owning a bakery business means you get to do what you love every day.

However, whether you can bake or you just invest in bakery ideas, horn your skills well and create mouth-watering baked goods with varieties. Customers love to change their taste. Create bake products that doesn’t exist before.

Finally, don’t be afraid to venture into unknown territories of the baking world. You can create eating areas for customers who would love to just take a seat and enjoy some pastries and a chilled soft drink. You can’t go wrong with great ideas for your bakery business.

Chinedu David
Chinedu David is a business consultant with experience in oil & gas, hospitality, IT & telecom, consumer products, business strategy, marketing and distribution. He was the telecom editor for SuccessDigest for over a decade. And founded Mystore, one of the indigenous online marketplace in 2013. Drop a comment below and he will respond to your query. He can also be reached via email: nedu@myblog.com.ng or Call/Text/WhatsApp: 07087770518
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2 Comments
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