Mon, 11 Dec 2023

How to start a bakery business

28 Sep 2023, 16:59 GMT+10

If you have a passion for baking, by churning out the best cakes in your neighborhood, making sweet doughnuts, and even biscuits, you may be wondering if you could turn your talent into a profitable business.

Starting a bakery is just like starting any other business. You need a plan, a budget, a strategy and a vision. Below, we will like all the strategies that you need to start, plan, organize and run a successful bakery.  If you combine all these strategies with your baking talent, you will be on your way to have a successful bakery business that will run for years.

Remember, talent alone is not enough to make you successful. You need to implement a workable business model that will transform your talent into profit.

The type of bakery that you want

Before you even get into the details of creating a bakery, you may want to determine the type of bakery that you want. The type of bakery to start however depends on your talent, budget, and the ultimate goals that you have. However, you shouldn't make the decision on the type of bakery that you want to start in isolation. Instead, look at the national trends in the industry and they will give you an idea on what works and what doesn't. By doing so, look at what the current trends are and how they affect the bakery business.

Write a business plan

If you are looking to start a bakery business, it is wise to consider writing a bakery business plan. This is very important as it will enable you to look at this business from different angles. A business plan is an important tool in starting a business for it enables you to generate revenue, define your business, identify customer base, list expenses, and evaluate competition. With this, your plan will be well laid out so that you know what to do at each stage of creating the business.

As you write your business plan, it is wise to look at the financial requirement to be able to start a bakery business. This should include a list of equipment, supplies, and furniture that you need in the business. In addition to budgeting for the equipment, you need to set aside money to live on as your business gets established. T is a fact that most startups take time to turn a profit. Therefore, you need to figure out how you will survive before that time comes.

Get funds

When thinking of starting a bakery, you must know that you need a substantial investment in machinery, ingredients, furniture, hiring new employees, taking a lease, and finally marketing your business to the general public. All these actions require you to spend money. At this stage, you need to think of where your funding is going to come from.

One of the ways that you can fund a bakery business is through personal savings. Personal savings can be a great way to fund your new venture simply because they do not come with interests. However, this method of business funding can be very risky especially when things do not go in your favor. In such a scenario, you may end up losing your savings.

Secondly, you may consider taking out a loan to finance your bakery. This method is ideal when you do not have the money to finance your bakery. The good thing is that banks, online lenders and credit unions have different solutions aimed at financing small businesses. However, it is important to ensure that you have a good credit score and that you meet the monthly repayment requirements.

Find a space for your bakery business

If you are looking to start a commercial bakery, you need to have a public space where customers can visit you.  Furthermore, the space should have a kitchen where you can fit your oven and the other appliances that you need to run a successful bakery. You can rent a commercial kitchen space only if you do not want your customers to be walking through your premises. This can be a great option if your budget is tight and are not willing to spend a lot of money on a much bigger space.

To get the best space around, it's advisable to take your time and be picky. Compare process, location, space and the neighboring business before settling on one particular space. That way, you will have a convenient working space with assured walk in customers.

This is a very important thing considering that bakery businesses largely depend on both the walk-in customers and the orders. Also, it's wise to consider the legal necessities that are needed to start the business. This entails the licenses that you need to start a bakery in your area.

Get the licenses

The next stage in the process of starting your own bakery is getting the necessary licenses for the bakery business. These licenses depend on the jurisdiction in which you are operating in. Therefore, it's wise to conduct your own research to find out the type of permits and licenses that you need, based on your local jurisdiction.

  • One of the licenses that you need is the business license. This allows you to operate a business in your local area.
  • Next, you will need a food service license. This license certifies that your bakery business meets the necessary safety and health standards as stipulated by the law.
  • Purchase the equipment for your bakery
  • As you continue working on creating a bakery, you must get all the necessary equipment and appliances for the business. When doing this, you should ensure to
  • Get high quality appliances such as ovens, mixers, fridges, display cases, work tables, bakery smallwares, cash registers, and cleaning equipment.


Above, we have seen the tip for starting a bakery. With the right planning and strategy, it is possible to create a good bakery from scratch. However, you need the necessary information, appliances, licenses and furniture to start this business. Therefore, it is wise to put the above points into consideration as you start your bakery career, as that will help transform your talent into a business.

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