How to start your own bakery
To start a bakery following factors have to be checked . The first and the foremost decision
one has to take is to
Franchise a known brand and process
Build a new bakery
Purchase old bakery and renovate
Start a small bakery from home .
Depending on the financial budget one has to take decision .Do take your accountant views
on this . All other legal and government related jobs has to be completed prior to operations .
Few actions like registration , taxes and water and electricity connections ,No objection for
authorities to start bakery in that particular area
The Four Most Important M' s of any business which are applicable to bakery business are .
Bakery requires skilled bakers either you hire bakers or learn bakery skills from good
professional bakery schools/institutes . Other s could be expert accountants/sales/procurement
people if you plan to run bakery on a bit larger scale .
Finances has to be arranged as first step open an current account in nearby bank . Check
with the accountant on amount of money you would require for raw material , packaging
material , fuel
overheads . To avail finances you can source it from bank loans , personal savings , credit
card loans , business loans, partners money or going public . One important point to note here
is to that break even could be achieved through cost optimisation in all cost element s.
Machinery required for bakery production can be procured either new or second hand .For
new start ups I would recommend to buy second hand equipment and once sales increases
we can go for new and latest machinery . Few examples -oven , mixers , depositors ,slicers
and packing machines
Raw material has to be procured at most competitive price to maintain the margins .
Basic ingredients for bakery are flour , fat , sugar , salts , butter , ammonium bicarbonate
,sodium bicarbonate , yeast etc . Where as packing material are flexible packaging material
like hdpe , ldpe , bopp , trays and carton boxes.
Once we have got new bakery at place and finances arranged we have to work on marketing
and popularising brand to increase sales . Following are most important 4P s of marketing
You have to be very carefull while selecting the location of your bakery as earlier sales would
happen most of the time on the shelf .Later once it becomes popular consumers would ask for
home delivery .You must prefer busy markets , educational institutes , multiplexes or malls or
residential areas .Do a small surveys of your existing competitors in that area . Lesser the
competition better are the chances of your bakery being successfull.
Conduct a survey on bakery product which are in demand or popular .Do it by your self or
take professional help in finding out the product . You can create a niche product are start
popularising it .
Once you start manufacturing these products you have to price your produt such as it recovers
all cost with reosanable profit .Also check your competitors pricing . Prices shouldn't be very
high neither they should very low .
Word to mouth is the best advertisement and is free .maintain good quality and service people
would start coming up to your shop . Throw a party among friends on inauguration ,distribute
pamphlets ,brochure and leaflets to nearby areas .Put aside some budget for ads on local
Another P which is critical for success of your bakery is " Packaging"
Attractive and convenience packaging are important to attract consumers plan few innovative
way to pack your products . Drive promo in gift packs during festive season
Here are few terms you need to calculate or know before putting your money on
Total fixed cost
which includes cost related to plant and machinery , equipments & machinery and utility
The amount required intially for a intial period to run the manufacturing unit
Total capital investment
The value which takes into account the fixed assets and working capital require to start
Cost of production
Includes cost of raw material , overheads such as interest , depreciation , wages , fuel ,
electricity etc .
Profit sales ratio
Rate of Return On Investment ( ROI)
Break Even Point
|Bakery Products - wide forms of
bakery products are available to start
with . you can pick one or can make
sevelar product at your bakery
Start a automated bakery
plant . Buy - Ebook
Ebook on manufacturing
biscuit , bread , wafer , cake