If you are planning on starting a bakery then you are about to make a life-changing decision either for the best or for the worst. That is because the process can be both long and tiring. Plus, it requires patience, dedication and also a huge investment. But don’t freak out just yet.
We interviewed some of the top bakery owners in the country and asked them what they wished they knew before opening a bakery. Avoid these pitfalls and the process might become a whole lot simpler for you.
1. A business plan is a must
Irrespective of your business type, creating a thorough business plan is a must and we do not mean knowing it all in your head, you need to put it all onto paper.
If needed, get help from your friends, family and even social media followers but don’t blindly opt to follow them. Your plan should typically involve your cost, the staff you want to hire, location, marketing strategy, equipment list, menu, etc. (pretty much anything and everything related to the bakery).
One major benefit of having such a detailed plan is that getting a loan from banks becomes a breeze as it instills confidence that you can pay them back.
2. You don’t necessarily need a business partner
If you are the sort of person you likes to handle the reigns and make all the decision yourself then we would recommend you avoid having a partner.
Only opt for a partner if you are willing to give a degree of decision making power to them and share your profits. This can be either 50/50 or 40/60 depending on the time, effort and money they are willing to put in.
Also, make sure you have detailed out an exit plan so there are no confusions related to assets as it can turn ugly and even more so if the partner was a family member.
3. Costing your products right in key
Costing your products right will ultimately decide whether your bakery is profitable or not and this is why you have to do it right. Not many baking schools will teach you costing except for the best bakery course in Delhi which means you will most likely have to hire professional help.
The profit margin with each product should be around 70% to 80%. People are always willing to pay higher for better quality as seen with brands like Choko La and L’Opera. so if you think you can deliver even better than your competitors, do not shy away from pricing your products higher either.
4. Patience is important
Any business, to a large extent, is like being in a relationship. You will have to nurture it as every step. There will be days when you will be deeply disappointed and there will be days it will feel like the best thing ever.
Building a reputation in the community takes time and being grateful and humble goes a long way. Reach out to your friends, family and the community to help you with the process. Take their feedback into account and make changes whether it is to the bakery or the recipe.