how to start a small bakery business

bakery business


The demand for bakery products is increasing day by day. 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 products have always been needed in every home

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 for bakery business:

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  successful bakery business, 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 location for bakery business that
is next to a mall, college, school, office, then you grab more customers.

Products for bakery business:

These 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.

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.


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:





Gas stove and cylinder









Measuring spoon and cups



Pan and storage utensils



Mixing bowl, Pastry brush, rolling pin




Rs.30,000 (approx.)


Required raw material for bakery business:

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
  • ·       
  • ·       
    Salt and sugar
  • ·       
    Unsalted butter
  • ·       
  • ·       
  • ·       
    Vegetable oil
  • ·       
    Pure vanilla extract

To run a small budget 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

Infrastructure for bakery business:

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

  • Chairs
  • Table
  • Display bakery case
  • Storage rack

Pay attention to the display and packaging:

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 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?


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 business, a license is required. When you run a business
that has a direct impact on public health, it is mandatory to get a license.

Required cost for bakery business:

Many factors are important to run a proper 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:

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

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.
You can have a profit of 30% to 50%.

Marketing of your business:

Offline marketing:

Marketing is a great medium to tell people about your
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  business
at a minimum costing. Google My Business is a free tool. Google lets you add
your  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.


·   Take special care of
hygiene, create product manufacturing, so that the customer will see the

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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