BAKERY BUSINESS

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Running a Bakery business entails production and sale of baked products such as cakes, biscuits, bread, scones, doughnuts etc. For the finished products, you will need to have a distribution channel – direct delivery to customers, through retail stores and restaurants.
Obviously you need to know how to bake in case you are running the business yourself. You will need to know the right ingredients and baking technique for the various products to ensure they are of the highest quality. If baking is your passion and you want to be directly involved in production, you can get relevant training from several institutions.

Staff requirements:
The alternative is for you to employ people who will do the baking while you handle the business side of it. In this case you will need to employ bakers, waiters, delivery people and cleaners.
Start-Up Costs:
  • Rent
  • Purchasing ovens and mixers, Cooling racks, Utensils
Oven
  • Tables and chairs (if you intend to set up a café)
  • Packaging Materials for delivery or service
  • Display counter
  • Microwave
  • Fridge
  • Business Licenses
Recurring Expenses:
  • Ingredients (flour, eggs, sugar, yeast, etc.)
  • Utilities (electric, gas, water)
  • Advertising/Marketing
  • Salaries
  • Rent
Advertising
To get customers, you’ll need to make them aware of your existence and what products you offer. This can be done by word of mouth, flyers, posters, adverts in print media and online. Go straight to the local retailers and talk them into taking your products. You’ll need to give them a good offer either on price or quality to convince them to take your products.  When you open your bakery you can offer free samples to potential clients to hook them onto your products.
Niche Market
You can take advantage of the increased health awareness of consumers by offering them healthy products by adding nutritionally valuable ingredients. Products such as brown bread, millet and sorghum based products are in vogue. For those who are watching their weight or have qualms about wheat product, these alternatives will be welcome.

Market
You need to decide how you are going to sell the products. There are two models for marketing. You can set up a café with tables and chairs where you can serve the products directly to the customers or alternatively, you can deliver the products to supermarkets, and retail shops. Local retail shops and kiosks are a good source of market for your products. You can also combine the two models comfortably.
Growth potential
Revenue is dependent on several factors including location, cost of supplies, and style of baking. If you get a good location in town, with high traffic, then you will not have problems marketing. You can also ensure that your baked products are uniquely flavored and of very high quality and this will earn you loyal customers who will do the marketing for you through word of mouth.
If you set up a café or you decide to sell the product directly at your bakery, you can also offer complementary products such as soft drinks, tea, and coffee to increase your income levels.