Starting your own bakery can be a daunting task.
You might be worried about the costs involved, about hiring the right team, not knowing if you have enough skills to actually do it and then the looming tension of actually having to bring customers to your doors.
However, if you have three things dialled in, it’s not as hard as it seems.
How Much does it Cost to Start Your Own Bakery/Cafe Business?
Different bakery business plans will have different capital requirements but if you want to set up a retail bakery location then you’ll need somewhere around 8-15 lakhs in capital.
However, our recommendation would be to start with a virtual kitchen for a much lower cost and see if you can really work out the getting customers part.
Here are our suggested bakery business models for each budget:
0-5 Lakhs – Virtual Kitchen/Cloud Kitchen or a Home Bakery Model
5-10 Lakhs – Virtual Kitchen with a Delivery Aspect with a specific menu catering to a very specific audience.
10-20 Lakhs – A small retain location with an integrated kitchen and delivery model
25+ Lakhs – A bigger retail location that can seat 15-30 people at once with a bigger menu.
3 Things that you really need to Start Your Own Bakery
If we were being honest about it, the only three things that you need to start your own bakery/cafe business are:
Sure you can hire skilled bakers but understanding yourself what it takes to make a good product and sell in the market will give you the advantage of not having to depend on anybody but yourself for the success of your business.
Moreover, if you don’t know what it takes to make a great cake then you wouldn’t know how to pick the right chef for your team.
There are a lot of ways to improve your skills. You could go online on Youtube and start there but if you want to most time-efficient way to learning all the skills you need then we’d recommend joining a course like Truffle Nation’s Baker’s Certification course which teaches you all of the base categories of baking.
If you’re more ambitious then, you could also go for the Baker’s Diploma course they offer which covers more advanced baking techniques and categories.
Once you have the products you want to sell and the skills to bake those products, it all comes down to how well you can drive new customers to your business.
There are a lot of different ways to you can use to drive new people to your bakery/cafe:
- Get listed on Zomato/Swiggy/UBer Eats
- Run ads on Google for your local area
- Start a page on Instagram and promote pictures of Instagram-worthy dishes that you serve at your bakery
However, you must realise that building a brand is a slow and gradual process so unless your bakery is based in a very traffic location or unless you have a new concept that people would drive to just to try out, it will take quiet some time to build a loyal customer base.
Truffle Nation does offer it’s diploma students personal 1-1 positioning and marketing consultation for anyone who’s launching their own businesses.
The final thing would be capital investments. Getting registered, licences and equipment will require some amount of capital.
Now you can considerably cut down on the cost of buying your own equipment by renting out a pre-built, licensed kitchen from companies like Cloud9Kitchens but if you’re 100% confident in your business plan and you have the money to spend then Setting up your own kitchen would definitely be advisable.
Below I’ve mentioned all the links and resources you’ll need to start your own bakery/cafe:
- A list of all important Equipments You’ll Need
- Cloud9Kitchen’s Shared Kitchen Spaces
- Truffle Nation’s Certification Course
- Truffle Nation’s Diploma Course
- How to Get Listed on Zomato, Swiggy and UberEats
- A List of All Licenses you need to start your bakery business
- List of Bakery Ingredient Suppliers in Delhi/Mumbai/Bangalore/Hyderabad
Step-by-Step Plan to Starting Your Bakery
Step 1: Prepare a Business Plan for your Bakery
The first thing that you need to do is prepare a blueprint of your bakery plan so that it is easier for you to execute it when the time comes. You need to start by a name for your bakery which will help you in the branding process.
Also, decide the kind of products and services that you are going to offer. Is it going to be an online bakery, home bakery, or a bakery shop? And what kind of baked goods are you looking to sell?
Once you have finalised all these details, you can move on to the funding part of your business.
Step 2: Analyse your Financial Status and Figure Out Funding for your Bakery
This is yet another crucial step that you cannot skip out on. Before you start buying a place or equipment for your bakery, you need to assess your financial situation. This will help you prepare a budget for your bakery and will decide whether you are going to start a shop or a home bakery business.
Check your credit report and understand the chances of getting a loan. Try to find investors and creditors for your bakery and approach them. Once you have tangible money to start your bakery, you can start with the other business details.
Step 3: Choose a Location for your Bakery
Now, if you are opting to start a bakery shop then you would need to choose a location for your shop. This will depend on a lot of factors like convenience, market reach, market price, etc.
You would want to choose a location which is popular and doesn’t have many bakery shops for your competition. At the same time, you have to find a place which would be affordable and convenient for you to reach from your home.
Step 4: Get the Proper Licensing and Registrations for your Bakery
After deciding on the location and securing the shop, you need to focus on getting the proper licenses to start your bakery. You will need to get a food license, Municipal Corporate License, fire license, etc. for your place.
And you would also need to get the GST registration done for your shop so that you don’t face any issues later on. Don’t worry, getting these licenses is not very difficult and you will find plenty of information online on how to apply for them.
Step 5: Buy Necessary Equipment and Arrange Raw Materials
Once you have the proper licensing and registrations in place, you can start purchasing baking equipment and materials for your bakery. You will need to get basic equipment like stand mixers, mixing bowls, ovens, etc. and you cannot compromise on the quality of the equipment.
Apart from the equipment, you will also need to find a long-term vendor to purchase raw materials like flour, sugar, cocoa powder, eggs, milk, etc. which you would need for baking. Again, don’t compromise on the quality as the baking materials quality can make or break your bakery.
Step 6: Hire Some Help to Run your Bakery
After setting up the equipment and procuring a vendor, you need to look for staff to help you run the bakery. If it is a small bakery then you might need to hire just 1-2 servers and 1-2 bakers to help you out in your bakery.
However, if you are starting a big bakery then you would need to hire a head chef, servers, helpers, delivery executive, and so on to keep your place running smoothly. Make sure that you hire qualified and experienced bakers for your bakery who you feel comfortable around.
Step 7: Promote and Market your Bakery Correctly
Once you have all the things in place, it is time to starting marketing your bakery in the neighborhood so that people will know about it. Get a professionally designed logo and display board to hang outside your bakery and distribute your bakery menu pamphlets to lure in people.
In the start, you will also need to create a buzz on the Internet using social media accounts so that more people are aware of your bakery.
Step 8: Improve and Learn from your Mistakes
One of the most important steps is to learn from your mistakes and keep working on them. If a product doesn’t work or a marketing strategy isn’t really fruitful, then brainstorm and come up with a new idea to implement in your bakery.
Of course, your bakery won’t become famous overnight but if you take the feedback from your customers and implement those changes, then you will have a successful bakery business in no time at all.
Step 9: Take Bakery and Management Workshops
Finally, don’t be overconfident and take regular workshops in baking and business management so that you can make your bakery better. Talk to other bakery owners and learn what works and doesn’t work for them.
Don’t hesitate to ask for help from baking and bakery experts. Trust me, this will help you in the long run and will ensure that your bakery becomes quite popular in some time.
Yes, starting your own bakery is not a light decision but if you make a plan and stick to it, you will find running a bakery as easy as baking a cake.