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How do I Start a Bakery Business?

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  • Written By: Jeremy Laukkonen
  • Edited By: Allegra J. Lingo
  • Last Modified Date: 13 November 2016
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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.

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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.

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.

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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