When you have determined what sort of bakery you would like to open and what type of products you need to make, you can start getting into the specifics of starting a bakery. We broke down the process of opening a bakery to 9 simple steps which you can reference along the way as you design and open your new organization.
1. Write a Business Plan
The first step in establishing your new establishment ought to be to compose a bakery business plan. The company plan is an essential component of starting a brand new restaurant because it lays out what kind of business you need to start, how it’s likely to be organized, what sort of products that you’re likely to sell, advertising plans, and fiscal projections. There are seven main sections to a bakery business plan:
Your business plan serves as the foundation for your business, and a strong strategy can help you to get funding and make the practice of opening a brand new bakery easy.
2. Get Loans and Startup Capital
When starting a bakery, there are many costs that you will need to consider, like leasing a commercial space, obtaining insurance, outfitting your space with equipment, hiring and training a staff, stocking your kitchen, and paying for utilities. Because of this, you’ll need to get a substantial amount of money available to cover these costs. Furthermore, it might take a couple of months after opening to your bakery to become profitable, and that means you’re going to need money on hand to pay for costs for several months after launching.
It is unlikely that you and your business partners will have the ability to fund your new bakery on your own, so you are going to should take loans out. There are three common methods business owners get funding: commercial loans, business lines of credit, and small business loans.
Conventional business Loan: You can submit an application for a traditional business loan at any given local or major bank. This type of loan has lower interest rates and access to large amounts of funds but needs you to have a high credit rating and wait possibly for months to access the money.
Business Line of Credit: A credit line is similar to a credit card. You get approved to use as much as a specific amount, but you are only charged for the amount you use. In addition, as you repay the balance, you can get more credit. But, a line of credit doesn’t allow you to access just as much cash as other loan types and demands a greater lending standard.
Small Business Loan: Created by the Small Business Association, a small business loan is a kind of loan which intends to protect modest businesses and give them startup capital. Small business loans generally have lower rates of interest and are accessible to individuals with borderline credit. However, they need security and might take longer to be approved than other loan forms.
3. Leasing an Industrial Space
Once you’ve secured funding, you should start trying to find an industrial space for the bakery. The type of commercial area you’ll need will depend on the kind of bakery that you’re likely to start. For example, if you’re starting a food truck bakery, you’ll need to purchase the truck and you may choose to look into leasing space in a commissary kitchen. Retail bakeries will want to start looking for a space in a central location near their target market that also includes a front-of-house area.
Because wholesale bakeries promote their merchandise to businesses rather than customers, they can be found farther from the city center or populated areas. But regardless of the type of bakery you are opening, there are some things you’ll want to Think about when looking for commercial space:
- Proximity to Suppliers
- Size and Space Requirements
- Health Regulations and Zoning
- Security and Crime Rates
As soon as you’ve found a suitable location for your business, you may hire a lawyer to draw up and negotiate a lease with the landlord. To protect yourself from any possible problems when negotiating a lease, make sure you define the length of the rental, any raises in the lease that may be included, who will pay for any prospective renovations, and any utilities that are insured.
4. Permits and Licenses
The food service industry is heavily regulated on a federal, state, and local level, also there are a number of permits and licenses that you’ll have to attain before opening your bakery. The types of permits you’ll need will change based upon your place, so make sure you check your local regulations and laws to find out whether there are any particular laws that apply to your new business.
5. Designing a Design
After securing a place for your new bakery, then you can begin planning what gear you will need and how to organize your kitchen. Additionally, if your bakery has a front-of-house region, you’ll need to design a floor plan.
There are several different ways in which you can organize your kitchen and your equipment. But, there are four pieces which every bakery kitchen will have: cleaning, storage, food preparation, and meal cooking, and you are going to want to arrange your kitchen so that these four pieces flow together. Additionally, bakery-cafes and bakeries using a front-of-house area will also have a service station, in which they deliver the food to the customer.
You are going to want to lay your own kitchen based on the logical flow of food during the baking procedure. This begins with the storage space, then extends to the food preparation and meal cooking sections. After your baked products have been ready, you can serve them for your customers or bundle them. Eventually, your dirty dishes, pots, and pans will wind up in the cleaning station.
Your kitchen’s layout will also depend greatly on the space that you lease and the positioning of water and gas lines. You will also want to measure your distance and make certain you have enough space for all the necessary gear before you finalize your kitchen program.
Some bakeries are going to have a front-of-house area where customers can browse their selection of baked goods. Making an optimal layout in the front-of-house area can make your customers feel comfortable to navigate and help alleviate purchases. There are four main bakery layouts, each with their own unique benefits.