Here are the 11 key steps to start a successful bakery business.

1. SECRETS TO LAUNCHING
A SUCCESSFUL BAKERY

2. Most of the 26,000 bakeries in the U.S. are small, local operators
serving a limited geographic area. Some cater to consumers with
specific health needs, such as gluten intolerance or nut allergies,
while others produce niche products, such as handmade, artisan
breads or muffins.

3. TO RUN A BAKERY
SUCCESSFULLY, IT IS BEST TO
BE AN EXPERIENCED BAKER
WITH A PASSION FOR YOUR
CRAFT AND WORKING BUSINESS
KNOWLEDGE SPANNING
MANAGEMENT, ACCOUNTING
AND HUMAN RESOURCES.

4. With rampant competition, a bakery must be
prepared to meet the demands of its customers with
the highest of quality. To achieve and maintain
success in this demanding industry, a new bakery
must be thoroughly prepared well before its grand
opening.

5. Below are the 11 key steps to start a
successful bakery business.

6. NEED HELP
STARTING YOUR
BAKERY?

7. Choose your Bakery Type
You need to decide which type of bakery business you would
like to operate. You can opt to sell only cakes or breads,
muffins, donuts and other baked goods. Also, determine if you
will sell the goods to- go or allow people to sit down and eat.
Four type of establishments include:
• Online bakery
• Counter service bakery
• Full-service/dine-in bakery
• Specialty focus bakery

8. Have a (Business) Plan
A business plan is the essence of your bakery, and
a poor and unrealistic business plan will not earn
you any profits. A good plan will also attract
potential investors or banks for financing.

9. 1
3
2
Determine the Best
Location
Choosing a location is one
of the most important
factors for bakeries. The
following factors should be
considered:
• Potential traffic
• Demographics
• Accessibility
• Visibility
• Competition

10. Analyze the competition’s product
and service offerings, packaging
and visual displays in order to
recognize new industry trends,
missed opportunities and new
strategies to compete for
customers.
Know Your
Competition

11. MANAGE EXPENSES
TO INCREASE PROFITABILITY,
DECREASE EXPENSES THAT DO NOT
NEGATIVELY AFFECT QUALITY. THIS
MAY MEAN CHOOSING A DIFFERENT
SUPPLIER, PROCURING ENERGY
EFFICIENT APPLIANCES OR
TIGHTENING LABOR. ALSO, BE SURE
TO MINIMIZE FOOD WASTE AND KNOW
THE BEST TIME TO PURCHASE
SUPPLIES, AS WELL AS THE RIGHT
SUPPLIERS.

12. Ensure You Have the Right Supplies
You will need to own all the
essential supplies to help
make your baked goods
including:
• Commercial ovens
• Baking utensils
• Baking pans
• Refrigerators
• Display cases
• Baking equipment

13. Specialize
Differentiate yourself from
other bakeries. If your baked
goods are all-natural, nut-free,
egg-free, gluten-free, made by
hand, certified Kosher, vegan
or vegetarian inform your
target demographic via
marketing efforts.

14. Compete on Quality
Your success hinges on the taste of
your product. Therefore, don’t
compromise on the ingredients used.
Rather, your prices should reflect the
quality of the ingredients and labor.
not Price

15. Establish Quality
Control
Ensuring quality and
consistency in the kitchen is
essential for a successful
bakery. If it's not good enough,
don't serve it - it could ruin your
reputation.

16. Determine Price Points
Determine appropriate prices
based on costs and market
research. Pricing factors include:
Food costs
Portion size
Quality of ingredients
Labor costs
Competitor pricing

17. Market Your Product
Having a great product is only half the
battle- people need to know about you
in order to drive business.
Employ an integrated strategy that will
reach your target market segments.
Utilize marketing, public relations,
advertising and sales efforts to gain
brand recognition and ultimately drive
revenue.

18. Key Steps to Starting a Successful Bakery
1. Choose your Bakery Type
2. Have a Plan
3. Determine the Best Location
4. Know your Competition
5. Manage Expenses
6. Ensure You Have the Right Supplies
7. Specialize
8. Compete on Quality, not Price
9. Establish Quality Control
10.Determine Price Points
11.Market Your Product

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