Want to sell fresh baked bread? Consider opening your own bakery.
Bread bakeries are usually warm, inviting environments that provide people with delicious and healthful nourishment. However, having a quality product is not the only key to success within the industry. People preparing to open a bread bakery must dedicate themselves to researching the local market, raising funds and managing resources, in addition to baking great bread. Owners should also believe in themselves and be committed to making their businesses successful. As of 2008, existing bakeries reported an approximate 20 percent reduction in profits attributed to a national economic downturn that continues to persist as of 2011.
Instructions
1. Research your market. Observe existing bread bakeries and take note of where they fall short. Think of ways that you can provide a service or product that they are not providing. Issues surveys and use social media to gauge people's interest in your products. Consider the viability of niches like organic foods and gluten-free foods. Use your research to develop a concept and name for your bakery. Consider investing in a small food cart where you can test your product firsthand before committing to opening a large-scale company.
2. Create a business plan. The business plan will include a mission statement that clarifies your company's specific purpose. The mission statement will communicate not only that you bake bread but will also convey what sets your bakery apart from others. In addition to the mission statement, the business plan will include an analysis of your market research, a sample menu, a production schedule, a detailed explanation of start-up costs and financial projections for around 5 years of operation.
3. Acquire funding. When you seek funding, you will submit a copy of your business plan. Many entrepreneurs fund themselves with personal savings and donations from family and friends. However, bakeries normally need several thousand dollars to get off the ground. Apply for loans through banks and credit unions. Consider seeking out foundations related to your bakery's mission and apply for grants. Additionally, specific grants may be available to women in business and people with specific ethnic or educational backgrounds.
4. Apply for a business license and tax ID number. Requirements for business licenses differ by county but normally include completing a form and paying a fee. You may apply for a tax ID number on the Internal Revenue Service website.
5. Select an appropriate location. Make sure that you choose somewhere that is accessible to your customers and affordable for you. If you decide to rent a facility, make sure you can lock-in your rate. Before committing to buy or rent, contact your county to schedule and complete all initial property inspections.
6. Purchase equipment. In addition to the specific tools of your trade and perishables, some counties require you to have specific equipment. For example, Colorado's Tri-County Health Department mandates that all food businesses have a three-compartment sink, a mop sink, ventilator hoods, hand sinks based on the number of employees, restroom facilities based on the number of customers, a water heater, a grease interceptor and commercial refrigeration. Contact your county's Health Department for specific details about your equipment needs.
7. Plan your launch. This step involves hiring and training all staff, designing the interior of your bakery, preparing all items that must be immediately available and printing menus. It also entails scheduling an additional health inspection and spreading the word about your business through press releases, printed announcements and social media. Consider planning a grand opening event with music and door prizes to generate extra enthusiasm and publicity.
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