6 steps to launch your bakery business
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Planning to start a bakery business in India? Do you know that the demand to start a bakery business in India has steady growth in the industry for a couple of years? Even though there are large baking companies, small baking companies in India are also growing equally. At present, people started their bakery business from home to find success in it. It doesn't mean that all baker business leads to success. Having a good quality product with the right business plan and right marketing plan will make the bakery business grow.
In this article, we are going to explore how to start a bakery business from home and shop efficiently.
Create a Business Plan
The Bakery Business Plan
A business plan is the first step in starting your bakery business. A business plan helps you clarify and organize your goals, strategies, financial needs, and ideas for your bakery business. If you can't make up your mind on which step to start with, a business plan template is an answer. Managing a bakery is not as easy as it sounds.
The bakery business plan holds,
Bakery business plan summary:
This summary is the bakery overview. It includes a mission statement, a brief history of the bakery if it’s an existing bakery, a review of your bakery's legal structure and ownership, and the plan for your bakery business.
Overview of a business:
The overview of your bakery business plan should include, the bakery business concept, and the various services you offer. It must hold the bakery layout, type of service, the bakery sample menus, and finally the management team.
This is one of the objectives for your bakery business. With this process, you can analyze the competitors, your right target location, and the target audience.
The SWOT Analysis will guide you to estimate the Strengths, Flaws, Opportunities, and Hazards related to your bakery business.
This plan will tell your bakery business operations such as a menu, managing staff, service you're going to offer, raw material procurement, and types of orders you're taking.
This type of business plan should have operating costs, cash flow statements, fixed and routine costs, and so on.
A marketing plan will help you reach the right target audience for your business. The right marketing plan will result in your super-duper business growth.
Location & Manpower
Location for your bakery business
Location is a major part of your bakery shop if you are going to start physically. It should have wide public transportation stops. Starting a bakery shop with a high footfall area is recommended. There are areas with high footfall and fewer shops. Pick a location that satisfies your needs. If you are planning to start a bakery shop from home, then go for it. But make sure to know about your business in your local area.
If you are going for the online store, make the website user-friendly. List all your bakery products with a nice website design, to attract the customer.
Rent for a bakery business place can be as small to big based on your business plan. It may cost Rs 10,000 to Rs 10 lac based on the city, location, and your bakery shop size. Make sure, it is not more than 4% of sales on the safer side.
Manpower requirement for bakery business
Some may plan to begin the bakery shop from home as an individual, some as partners, and others as a company of more than two. Based on the size and the investment of your bakery shop, appoint employees. If you began your bakery business as high-end, then you need Head Chef, Chef De Parties, Commi level Chef, and Helpers, plus Service Boys and a Cashier. The count of 15 members is the approximate manpower count. Their salary depends on their respective experience.
If you like to grow your business professionally, a staff uniform can be preferred. Most bakery businessers will not prefer staff uniforms. Make sure all your staff associates look fine, hygienic, and well dressed.
License for the Shop
License requirement for bakery business
As a small businesser, to start your bakery business, there are some permits and licenses. Only by completing these formalities, your cake business or bakery business is acceptable. Here is the list of formalities to complete before you start your business.
Apply for any in-state mandated licenses and food passes from the health department.
Choose your small business operating structure, like a corporation, partnership, limited liability company, or sole proprietorship.
To start your bakery business, you need 5 licenses: FSSAI license, GST Registration, Local Municipal Corporation Health License, Police Eating House license, and a Fire License.
A food license can be applied for online through www.fssai.gov.in website. Businessers can also use agencies for the complete paperwork and license process. They charge Rs.5000 for the whole process. Make sure to avoid renewal fees every year. The FSSAI license for 5 years is RS. 15,000. Find out how to get the FSSAI License for your bakery shop here.
With the guidance of charted accountants, GST registration can be done for your bakery business. Find how you can do GST Registration for your Bakery business here.
With the support of your local Municipal Health inspector, you can get your Municipal Corporation’s health license fee. The cost might take Rs.3000
After installing the fire extinguisher cylinders, you can obtain your fire license. The cost might take 1,000-2,000.
Dive for Advertising
Advertise your bakery business
Yes, you have plotted a perfect place for your cake or bakery shop. You built your physical store successfully. What's next? Now you need to create your bakery business brand awareness, i.e you should make people know about your bakery shop to reach more audience. For potential customers, you need to work hard with smart moves.
Use flyers to brand
Try to plan for an inauguration function
Reach out manually to your potential customers
Increase your social media presence
Try to execute an ad campaign by focusing local area
Add your bakery business on Google My Business
Place your bakery business in local newspapers
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POS System with Online Store
Install your POS & Billing Software
Choosing a POS system for your bakery business is another important part. Try to pick the POS Billing software for a bakery business that holds your needs with the online store. SNAPOS is one of the best POS software for your bakery and cake business. It is more inexpensive in the POS software market. You can start your bakery business with an online store, and manage customers effortlessly.
Accounting Software for your Store
Software for Inventory Management
You can also try using some simple accounting software like mybooks if you would go for an advanced option without an online store. For easy GST, inventory management with low stock alert, accounts payable and receivable, multi-business, multi-user role access, barcode billing, 25+ report with lots and lots of features, if you would like to focus more on accounting, go for accounting software like mybooks.