Have you dreamed of the day you open your own bakery? Or maybe you have been working out of your home and find that opening a bakery to be the next logical step. The fact of the matter is, opening a bakery is a dream for many, but making that dream a reality requires time, money, resources, and often many rounds of trial and error before finding success.
Want to know what really makes a bakery successful? Here are five focus areas that are essential to know before opening your own bakery.
Write a Solid Business Plan
A business plan is every business owner’s roadmap to success. Specifically, writing a solid business plan is the first integral step in opening a bakery—or any small business. The business plan will cover every intricacy of your bakery, guiding you through every aspect of your operations. When writing a business plan, you must clarify your goals and overall vision for your bakery.
Your bakery business plan should include:
- Executive summary
- Company analysis
- Market analysis
- Marketing plan
- Operations plan
- Management Team
- Financial Plan
Depending on your experience, you may seek guidance in your plan more than you have anticipated. Friends, family, customers, and colleagues will all have their opinions on what they think is best, but don’t allow their suggestions to overwhelm you or cloud your vision.
A business plan is also essential if you plan to apply for a business loan. Investors want to be reassured that you have an organized, detailed plan before they invest in your business.
If you’re ready to start planning your bakery’s success, check out our all-encompassing guide, which gives you the exact information you’ll need to include for optimal planning. Not only does this guide provide a wide range of important questions you need to consider for each section of your business plan, but it also gleans insight into what might be important to any potential lenders. With the help of BakeSmart, we’ll work together to create a business plan that turns your dream into a reality.
Price Your Products Accordingly for Profit
One of the biggest mistakes bakery owners face when opening a bakery is failing to price their products correctly. What exactly do we mean by “correctly?” Well, your bakery’s prices should reflect many different factors of your business, from ingredient quality to inventory to production to operations, etc. You should price your products appropriately, ensuring that you can recoup costs, pay yourself, and earn a profit to maintain your longevity.
Know the Nitty Gritty: Licenses and Permits
The food industry is heavily regulated on a federal, state, and local level, meaning that you’ll have to lock in some bakery licenses and permits prior to embarking on the opening of your business. The credentials you’ll need will vary depending on your location; therefore, you should check your local laws and regulations to confirm if any specific requirements apply to your business.
Understand How to Track Your Financials
As a bakery owner, wearing many different hats is inevitable. However, there are some practices that require assistance from experts… we’re talking about finances. Before you begin staffing, hire a trusted bookkeeper (or administrative assistant) and an accountant. These external forces are the secret sauce to the success of your business—keeping you updated on bills, new tax laws, payroll, budgeting, and anything else you may need to know financially. They will break down your costs, so you know exactly how much you’re spending in order to maintain your operations and production.
Baking and creating delicious treats is where your time and energy should be spent! If you attempt to “do it all” yourself, you will get burnt out (no pun intended).
Choose Your Location Wisely
“Location, location, location” is a common mantra in real estate—for a good reason being that location is the one thing you absolutely cannot change (unless you move your business, of course). The best place to open your bakery is a location that is in proximity to the demographic you’d like to target, as well as your suppliers. It’s best to choose a brick-and-mortar location with high foot traffic, however, note that these locations are typically more expensive.
Regardless of the type of bakery you plan to open, consider these factors:
- Proximity to suppliers
- Space requirements
- Health regulations
- Safety in the area
Conquer the Chaos with BakeSmart
Our bakery software was created with retail bakeries at the forefront of our minds. We understand how much work it takes to keep a bakery running at peak efficiency. That’s why our software offers you complete control of every aspect of your bakery. At BakeSmart, we’ll help you focus on what you love to do, not what you have to do.
Let us help you conquer the chaos. Schedule a demo today and see how BakeSmart can help solve your bakery problems.