Are you thinking about starting a bakery business? If that’s the case, that could be a great idea.
Industry reports say that the retail bakery business makes more than $3 billion yearly, and the small commercial bakery business makes around $7.5 billion. This shows that running a bakery is very profitable, especially if you can consistently give your customers good products and develop new ways to reach them. Read on to learn more about why you might want to start a bakery.
You Can Follow Your Passion
If baking, whether that’s cakes for special occasions, artisanal bread, or specialty muffins, is your ultimate passion and you genuinely love to spend your time whipping up a storm in the kitchen, starting a home baking business might be the ideal thing for you to do.
There aren’t too many people who can live their lives in such a way that they can pursue their passions. This is an opportunity you shouldn’t pass up if you think you might be able to turn your love of baking into a successful business.
You Can Start Small
A bakery often doesn’t need ample space to operate. All you need is a good manufacturing facility, large enough to accommodate the preparation and baking of your goods. Of course, you only need a sizable area to set up shop and show off your interests, but you might not go down that route – perhaps you don’t have a shop front and take orders online, for example. This will minimize the space required and the cost involved.
After setting everything up, you only need to ensure the place is spotless to keep it from getting dirty. You can also save money on capital costs if you start from home. For example, your bakery business can begin as soon as you build shelves, a counter, cabinets, etc. You don’t have to worry about monthly rental costs, but you have to follow the rules for getting a license, and this will usually mean you need to factor in costs for commercial kitchen maintenance services.
There Is Potential For Growth
For many bakery owners, the ability to grow with demand is a significant selling point. It’s possible to expand your current location or relocate to more suitable premises if need be – you’ll be able to determine the right course of action once you see how successful you are and what kind of money you can afford.
When deciding whether or not to grow, it is essential to keep an eye on sales and take the cost of raw materials into account, as you don’t want to go too far too soon. Still, if you have a reasonable budget and know your figures, you’ll quickly see when the right time for expansion comes.
You’ll Learn How To Run A Business
There is sometimes a steep learning curve associated with opening a business, from acquiring the necessary permits and licenses to determining appropriate pricing and calculating the impact on profits. However, this isn’t necessarily negative because figuring out how to launch and manage a business is exciting and rewarding.
Starting a bakery business, whether in your own home or a store in a busy city, is the kind of business you can start with limited knowledge. That’s not to say you shouldn’t try to learn as much as possible before you launch, but it does mean that you can learn on the job, at least in part. Of course, this is not possible in some cases and some specific businesses, but baking allows this kind of flexibility, so you can get better as you go. This is especially true if you start your baking business as a side hustle.
You Can Create A Loyal Customer Base
People will naturally become loyal to your brand once they have tried and enjoyed your baked goods. As more people test out your bakery, you’ll have a regular clientele who will come to you whenever they need your products. They’ll tell their friends and family about the tasty treats they can get from you, and your reputation and number of customers will grow.
Not only that, but baked goods almost sell themselves. Assuming you have a storefront, of course, you can display all kinds of lovely cakes and pastries to tempt people as they walk past. On top of this, the smell of baked goods is also enticing, which can waft for quite a long way, bringing in even more customers.
Plus, social media is a great way to build a loyal customer base, which can work even if you don’t have a display because you work from home. For example, you can showcase images of your finished goods or videos of you making or decorating them. The more people see that you make everything yourself, the more they want to be involved.
There Is A Need For Specialist Bakers
Celiac disease and gluten sensitivity are becoming increasingly common in the developed world. Many people cannot eat conventional bread because they must stay away from all goods containing gluten at all costs. At most, a typical grocery shop will stock one or two bread varieties for these customers. By operating a bakery, you can immediately connect with a local community by catering to its specific needs, such as providing gluten-free goods.
This could become your specialty, giving the people who need gluten-free items, low-sugar products, or perhaps dairy-free options much more choice. They will be able to enjoy as many treats as those without food sensitivities can, and this alone will make you stand out and ensure you find more and more new customers.
The key is to do something different that people want, and if taking care of those who might otherwise have to go without or have minimal choices is what you can do best, it’s well worth doing.