A step by step guide on how to start a small bakery business

Bakery business plan:

Bakery products have always been needed in every home. The demand for bakery products is increasing day by day and the growth of bakery business is increasing. You can also run a bakery business from home. The place where biscuits, cakes, pastries and breads are made or saved is called bakery.


Bakery business
Bakery business


You need to have a passionate as well as a good knowledge of food ingredients and creativity. There are many online and offline professional courses and training available that teach booking related things professionally.

Location and market research:

If you are looking for a commercial place, you need time market research to decide the location to open a bakery. Market research is about the market around your location. For the  business to be successful, it is necessary to locate more than just marketing, which depends on market research.

The Bakery business you run at will be yours or rented? If it is rented, try to make sure that the rent does not exceed Rs.15,000-20,000, then your total investment will increase. Try to set the bakery location that is next to a mall, college, school, office, then you grab more customers.

Bakery products:

Bakery business products come in many types like cake, pastry, bread, cream roll, biscuit and also different types like red velvet cake, vanilla cake, chocolate cake, white bread, brown bread etc. keep a menu in mind, while keeping your bakery menu in mind, keep an eye on your customer's assets, investment and market.


Bakery business
Bakery business


You can also customize the product as you want different types of product for different occasions like wedding, birthday, farewell which can increase your sales.

Bakery equipment:

To run a bakery you need a lot of equipment like commercial oven, mixer, measuring pan etc. Here is a list of some basic equipment list and what they cost:

S.No.

       Item

Price

1

Gas stove and cylinder

Rs.2,100

2

Oven

Rs.15,000

3

Mixer

Rs.10,000

4

Measuring spoon and cups

Rs.300

5

Pan and storage utensils

Rs.1400

6

Mixing bowl, Pastry brush, rolling pin

Rs.1200

 

   Total

Rs.30,000 (approx.)

 

Required raw material:

You can also buy raw materials from your area's retail shop or wholesale market which will be cheaper which will reduce your investment. There are some basic products required for making bakery items like cake, pastry, bread etc. Here are some basic product listings to get started with small budget.

  • ·        All-purpose flour
  • ·        Baking soda
  • ·        Baking powder
  • ·        Yeast
  • ·        Salt and sugar
  • ·        Unsalted butter
  • ·        Eggs
  • ·        Milk
  • ·        Vegetable oil
  • ·        Pure vanilla extract

To run a small budget Bakery business, you can start with a minimum investment of Rs.50,000 to Rs.70,000, including machine, raw material, infrastructure, license, water and electricity bill, transportation, marketing etc.

Bakery infrastructure:

We need less furniture to start a small budget bakery. Now let's talk about which important furniture required for our bakery business plan;

  • Chairs
  • Table
  • Display bakery case
  • Storage rack

Pay attention to the display and packaging:


Bakery business
Bakery business



The customer decides by looking at the displayed product whether it is on the online website or in the display bakery case on bakery. You can use ready made packets for packaging . They should be properly bound and slightly hardened which will reduce the chances of soft material spoiling. Inn boxes price approx. Rs.3 / box for a hard page.

Pricing of your products:

When pricing a product, keeping in mind the customer. As your Bakery business is new, keep the price low to attract the customer and decide the price, do the time market research correctly and pay attention to the innumerable things. What is the minimum and maximum costing of the same product as you?

Bakery license:

To run a Bakery business, you need a government-issued license that assures you that you are following the rules and standards set by the government. For which you have to go through the canonical process. For a small budget bakery business, a license is required. When you run a business that has a direct impact on public health, it is mendatory to get a license.

Required cost for the bakery business:

Many factors are important to run a proper Bakery business and total investment depends on these factors. You can open a bakery at home or in a commercial space, use equipment, use raw materials, work with manpower (water), electricity bill, transportation, storage, marketing and license etc. par investment.

Required staff:

In order to run a Bakery business, you will definitely need a helping hand because it is quite difficult to manage it alone. It depends on how many staff you need. You should pay the employee keeping in mind your customer base and capital. An employee who communicates with a customer has good communication skills, such as a customer who is happy with your hospitality.

Profit margin:

Bakery products give you a margin of 25-30%. If the total cost of making a cake is 200 then you can sell the cake at 25% margin i.e. 250 rs according to the market. Biscuits and bread have a margin of 40-50% and you don't have to spend much effort to sell them because this daily is their product. That way, you can earn up to 8,000-15,000 rs. The Bakery business can have a profit of 30% to 50%.

Marketing of your business:

Offline marketing:

Marketing is a great medium to tell people about your Bakery business. Offline marketing through pamphlets, holding. Pamphlets cost approx. up to Rs.1000 and the cost of holding will be around Rs.5000. Offline marketing has become costly and less effective nowadays.

Online marketing:

With online marketing you can promote your bakery business at a minimum costing. Google My Business is a free tool. Google lets you add your Bakery business to Google listings. The advantage of this is that whenever someone searches on Google, where is the bakery or if they want to find your shop directly under your name, then it will be very easy to find all the details of your shop on Google.

Make a website:

Create your own bakery website that costs approx. Rs. 1,000 can promote. You are updating it and you can place an order through it.

Social Media:

You can also create Facebook, Instagram page, you can also do online marketing.

Tips for bakery business:

·        Take special care of hygiene, create product manufacturing, so that the customer will see the cleanliness.
· Choose the recipe according to customer response, keep up the good work.

·        Pay special attention to customer hospitality, pay more attention to constant customer.
·        There will be special offers, discounts, promotions and sales.
·        It is necessary to store raw material properly as this material may be damaged and you may incur losses. This requires a storage box that comes in different sizes and prices.
You can also put the recipe on the bakery website and the customer will be amazed
.

 

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