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How do I Start a Bakery Business?

Jeremy Laukkonen
Jeremy Laukkonen

In order to start your own bakery business, you will typically need to perform some market research, locate a source of financing, and obtain the proper license. If you do not already possess a knowledge of baking, you may want to retain the services of a trained baker or pastry chef. Depending on the type of bakery business you want, you may choose to operate out of your home kitchen or locate a commercial facility. During the planning stages, you will typically also want to decide on whether you will offer a wide range of products or focus on bread, pastries, cupcakes, or other specialties.

The initial process of starting any bakery business will typically consist of market research. During this time you may want to examine both local demand for baked goods and the competition. If a successful local bakery happens to be up for sale, that will typically be the fastest route into the business. Other options are to start your own bakery from scratch or to open a franchise. There are typically additional costs associated with franchising, though the name recognition may help you get business in your early days.

Bread in a bakery.
Bread in a bakery.

After you have verified the demand for your products in a particular area, you can look for a location. If you have a well equipped kitchen, you may consider starting out there and working from home. You will otherwise need to find a commercial space that can accommodate the necessary ovens and other equipment. If you will be delivering your baked goods to cafes, grocery stores, or other locations, you will also want to find a space that has a loading dock or other easy means to get orders into your delivery vehicles.

It's important to learn all of the food safety guidelines before starting a bakery.
It's important to learn all of the food safety guidelines before starting a bakery.

Another important step in starting any bakery business is financing. After you have obtained a business license, opened a bank account, and put together a business plan, you can start looking for money to start the business. Many banks and financial institutions offer small business loans if you lack the personal finances to get things started. You may also look for private investors. The local chamber of commerce can be a good starting point when looking for financiers.

Bakeries may serve donuts.
Bakeries may serve donuts.

As you get ready to open your bakery business, you may want to alert the local community that you will soon be offering fresh baked goods. Interest may be generated by placing an advertisement in a local newspaper or circular, distributing flyers, or handing out business cards to friends and acquaintances. You can also contact local businesses to see if they would be interested in carrying your products, though you may wish to wait until you have samples or good word of mouth from existing customers.

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    • Bread in a bakery.
      Bread in a bakery.
    • It's important to learn all of the food safety guidelines before starting a bakery.
      By: Goran Bogicevic
      It's important to learn all of the food safety guidelines before starting a bakery.
    • Bakeries may serve donuts.
      By: contrastwerkstatt
      Bakeries may serve donuts.
    • A bakery business might focus on pastries and desserts.
      By: Tesgro Tessieri
      A bakery business might focus on pastries and desserts.
    • Homemade pies might be featured at a bakery.
      By: jamierogers1
      Homemade pies might be featured at a bakery.
    • Many bakeries that specialize in artisan breads have storefronts and sell directly to their customers.
      By: sepy
      Many bakeries that specialize in artisan breads have storefronts and sell directly to their customers.
    • Starting a small business often entails obtaining a loan.
      By: angelo lano
      Starting a small business often entails obtaining a loan.