Once you start your home bakery business , you will find that demand for your product is continually increasing.
Pay a visit to your accountant, you are going to want to set up a business entity and get appropriate licensing which may involve the local Health Department. Be sure to keep your business finances separate from your personal transactions so that the accountant and tax man are pleased. Do not tempt the tax man to do an audit as they are time consuming and often turn out to be a nuisance, especially if an assessment is issued and you owe money.
A Business plan will have to be developed, you will need to have an idea as to where you want to take this venture, and how you are going to get there. You will need to develop a marketing plan to start your home bakery and also a cash flow statement, especially if you are going to want to get new equipment for your home bakery business such as a commercial mixer or new baking oven by borrowing from your bank. While it takes some time to prepare these items, it will be well worth the time expenditure as it will guide you and also impress the bank loans officer.
Your baking area will have to be sterile or you are going to get complaints. Start your home bakery by using whatever disinfectants are necessary to sterilize your equipment and all surfaces. After all, you want to have great confidence in your product.
Assemble some equipment, you are going to need a large mixer and after a while, as you expand your business you will want to acquire a small commercial mixer with dough hooks, this will be an immense time saver as you increase production.
As you build sales, you will have to acquire several baking pans as you will be making a few batches of bread at a time. I suggest that you go for quality when purchasing these as they are going to be heavily used. The mixer and the bread pans are going to pay for their coat many times over. To start your home bakery on a solid footing, it is best to plan these expenditures as sales grow.
In addition to your equipment you are going to need ingredients, this area in addition to electricity are going to be your major expenses. At first, as you start your home bakery business on a limited basis, you will be able to use some supplies from the grocery store, as time goes on and you increase sales, you are going to want to buy inventory in larger quantities and at lower prices. Perhaps there is a wholesaler that you can negotiate prices with. You will want to be using good quality ingredients, sometimes those are more expensive but they are well worth it to satisfy your customers.
Marketing to Start Your Home Bakery Business
Marketing your product. People love fresh baked goods, especially bread. It will take you a little time to tell your friends of your venture and they will want to sample your products. Once they have experienced fresh bread, they will tell their friends and you have a referral business starting.
A few business cards and flyers will be about all you need to distribute as your business will grow fast enough as people talk about it. Of course you will use your email and website to do some marketing and mention your new business to each person you speak with. As you start your home bakery business you may wish to have some special wrappers prepared for your products with your bakery name printed on them.
As time passes you will want to experiment with adding nutritious items to your products, flax, sesame seeds, customers will pay a little more for enhanced bread, they will be pleased to purchase your product that is free of the preservatives found in most store-bought bread.
There is a beginning for you to start your home bakery business, it will take a few days to get some orders and if you are able to spend some good amount of time telling people about it, you will soon be so busy that you have no time left in the day.
Sources of Financing
It may well be that your small business is going to need more financial resources than you have at this time and that you are going to require outside financing. You also may want to lease equipment or to factor your accounts receivable. You may want to learn about small business loans or you may wish to find suitable business credit cards.
I wish you every success!!
- American Bakers Association
- The Canadian Encyclopedia : Bakery Industry
- Health Canada Food and Nutrition