Bakeries bring happiness and warmth to their communities. Customers, though, are not the only ones who stand to benefit from this small business. The business owner also has a lot to gain from opening a bakery. Imagine serving tasty treats to hardworking and amazing people.
Putting up a bakery, however, will require a lot of hard work. If you want to succeed, you’ll need to come up with a solid plan to get your food business off the ground and get customers walking to your shop or store.
Here are a few suggestions to help you launch a great baking business in your local community:
- Think About the Kind of Bakery You’d Like to Open
Do you want to open a food truck? A counter-style bakery? A home bakery? If you’re unsure how to go about this, start by evaluating your goals, budget, and talent.
Make sure that you are not making this decision in a bubble. You’ll want to pay close attention to the national trends in the baking industry. This means that you need to do local market research to find out how these trends affect your demographic and particular location.
2. Secure Business Funding
Putting up a bakery shop can be a costly endeavor. After all, you need money to pay for baking tools and equipment, such as mixers, rolling pins, flour, high-quality stainless steel sheet pans, and ovens. If you need some help getting the capital you need, take note of the following options:
- Equipment Financing – You’ll want to consider this option, as bakeries require a lot of equipment. Given that the equipment will serve as the collateral for the loan, they’re easier to qualify for when you compare the loan with other financing options.
- Business Line of Credit – This gives you access to a maximum credit limit that you can borrow for whatever business expense you may have. You’ll only pay interest on the amount of money you borrowed from your credit line. What’s more, you don’t need stellar credit scores to qualify, making this financing option appealing to new businesses.
- Startup Business Loans – Searching for the right funding for a new business can be tough. Enter startup business loans. They can be anything from a small business grant to a microloan from the Small Business Administration (SBA). Take note, though, that SBA loans aren’t easy to qualify for, especially if you’re applying as a new business. These loans, however, are a highly coveted option primarily due to their long repayment terms and low-interest rates.
3. Price Your Baked Goods Appropriately
Some bakers base the price of their deliciously baked treats on two elements: the time required to make the goods and the cost of supplies. This formula, however, is flawed. When pricing your baked goods, make sure that you take into account other stuff, including the time spent promoting your business, packaging, clean-up time, and labor.
4. Use Social Media to Your Advantage
Social networking websites, such as Facebook, Linked In, and Instagram, can capture and attract an immense crowd who are using these platforms. When launching a bakery business, make sure that you invest time, money, and energy into social media marketing. Create business pages and spread the word about your bakery through various platforms. Engage prospective customers by giving them discounts or freebies when they drop by your store.
5. Brand Your Bakery
Great branding is essential to the success of your bakery. The packaging, taglines, music, logo, and color can all tell the story of your business to the world.
There’s no reason your baking business can’t make a big splash thanks to wonderful business branding. When working on the branding of your bakery, make sure that you concentrate on the following:
- Names of your products (ex. Chocolate chip cupcake)
- Color and design scheme
- Name of your business or brand
Ask yourself this question, “What story does your brand want to tell to customers?” Then, use that story you’ve produced to guide the branding decisions of your business. Make sure that your story is unique and special.
Also, you’ll want a logo and name that is easily recognizable. The same should hold true for your packaging and dÃ©cor.
6. Find Support
Launching a business can be time-consuming and exhausting. The time spent baking is only half the job. You’ll also have to spend time helping customers, taking orders, marketing your business, and doing an array of administrative tasks.
As a budding business owner, you don’t have to do everything alone. Find someone who can cheer you on or help you in the business. This can be your spouse, a colleague from work, or a business mentor.
If you enjoy baking, you can turn your passion into profit by launching a bakery. Just make sure that you follow these tips to help you start a bakery business that will delight customers and earn you good revenue.