SECRETS TO LAUNCHINGA SUCCESSFUL BAKERY

Most of the 26,000 bakeries in the U.S. are small, local operators serving a limited geographic area. Some cater to consumers with specific health needs, such as gluten intolerance or nut allergies, while others produce niche products, such as handmade, artisan breads or muffins.

TO RUN A BAKERY SUCCESSFULLY, IT IS BEST TO BE AN EXPERIENCED BAKER WITH A PASSION FOR YOUR

CRAFT AND WORKING BUSINESS KNOWLEDGE SPANNING

MANAGEMENT, ACCOUNTING AND HUMAN RESOURCES.

With rampant competition, a bakery must be prepared to meet the demands of its customers

with the highest of quality. To achieve and maintain success in this demanding industry, a new bakery must be thoroughly prepared well

before its grand opening.

Below are the 11 key steps to start a successful bakery business.

NEED HELP STARTING YOUR

BAKERY?

Choose your Bakery TypeYou need to decide which type of bakery business you would like to operate. You can opt to sell only cakes or breads, muffins, donuts and other baked goods. Also, determine if you will sell the goods to- go or allow people to sit down and eat. Four type of establishments include:• Online bakery• Counter service bakery• Full-service/dine-in bakery• Specialty focus bakery

Have a (Business) PlanA business plan is the essence of your

bakery, and a poor and unrealistic business plan will not earn you any profits. A good plan will

also attract potential investors or banks for financing.

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Determine the Best LocationChoosing a location is one of the most important factors for bakeries. The following factors should be considered:• Potential traffic • Demographics• Accessibility• Visibility • Competition

Analyze the competition’s product and service

offerings, packaging and visual displays in order to recognize new industry

trends, missed opportunities and new strategies to

compete for customers.

Know Your Competition

MANAGE EXPENSES

TO INCREASE PROFITABILITY, DECREASE EXPENSES THAT DO NOT NEGATIVELY AFFECT QUALITY. THIS MAY MEAN CHOOSING A DIFFERENT

SUPPLIER, PROCURING ENERGY EFFICIENT APPLIANCES OR

TIGHTENING LABOR. ALSO, BE SURE TO MINIMIZE FOOD WASTE AND KNOW

THE BEST TIME TO PURCHASE SUPPLIES, AS WELL AS THE RIGHT

SUPPLIERS.

Ensure You Have the Right Supplies

You will need to own all the essential supplies to help make your baked goods including:• Commercial ovens• Baking utensils• Baking pans• Refrigerators• Display cases• Baking equipment

Specialize

Differentiate yourself from other bakeries. If your

baked goods are all-natural, nut-free, egg-free, gluten-

free, made by hand, certified Kosher, vegan or

vegetarian inform your target demographic via

marketing efforts.

Compete on Quality

Your success hinges on the taste of your product.

Therefore, don’t compromise on the ingredients used.

Rather, your prices should reflect the quality of the ingredients and labor.

not Price

Establish Quality Control Ensuring quality and consistency in the

kitchen is essential for a successful bakery. If it's not good enough,

don't serve it - it could ruin your reputation.

Determine Price PointsDetermine appropriate prices based on costs and market research. Pricing factors include:Food costsPortion sizeQuality of ingredientsLabor costsCompetitor pricing

Market Your ProductHaving a great product is only half the battle- people need to

know about you in order to drive business.

Employ an integrated strategy that will reach your target market

segments. Utilize marketing, public relations, advertising and

sales efforts to gain brand recognition and ultimately drive

revenue.

Key Steps to Starting a Successful Bakery1. Choose your Bakery Type2. Have a Plan3. Determine the Best Location4. Know your Competition5. Manage Expenses6. Ensure You Have the Right

Supplies7. Specialize8. Compete on Quality, not Price9. Establish Quality Control10.Determine Price Points11.Market Your Product

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