Following are major areas for investment for bakery business
Home made bakery products.
The easiest way to do business in bakery products is to start it from home .You can have limited customers and with unique recipes you can supply products like cakes,cookies , biscuits for personal occasions like birthdays , kitty parties, marriages ,meetings ,seminars and official functions of both govt or private firms.
Here investors can put up big automated plants for wide variety of bakery products. The volumes are very high and caters mass population of different geography . This models is useful for people with large amount of finances and interested in long term and brand building exercise .Automated plants requires plant and machinery with higher levels of supply chain networks with functions like sales & marketing , procurement , finance and production ,etc .Employee numbers are very high .
When people or enterpreneur has finance constrains then can opt for small bakeries which caters for local and close areas for sales .cost of advertisement are low .Can have direct relationship with customer and can produce tailor made products for customers . Business could be good if products are innovative and quality superior to beat branded products produced by bakery manufacturers .You might have seen people waiting for fresh bakery products outside of bakeries.
It applies for firms with idle capacity to produce ,companies with brand equity ,investors with finances. Many manufacturers are ready to manufacture for third party .Advantage of this model is that one doesn't require plant and machinery ,land and employees liabilities to do business.
Export/ Import -Trading
This model is the simplest form of doing bakery business with either exporting bakery products to different countries by buying from ones own country or Importing bakery products from other country and distributing to ones own country. Disadvantage is that the margins are limited and doesn t carry any brand equity.
This bakery business model is similar to any other food retail chains like mcdonalds ,starbucks , barista ,kfc etc. Entrepreneur has to build one central bakery from where these retails chain would get their supplies or bakery products can be out -sourced from other bakeries.T hese retail outlets are gaining popularity now days as customers can have their favorite product at one place and enjoy it with great ambiance. This is very good model for doing business as one can charge premium price for the products .
Bakery courts in malls/supermarkets/multiplexes
This is similar to retail chain concepts only difference is that bakery court is in rental space but footfalls are very in these kind of food courts as people love to eat their shopping spree. Families come together and enjoy food in these kinds of courts.
Online shops
The net savvy entrepreneur can launch website store and can sell various bakery product. The basic advantage is that investment is low and products are available 24x7x365 days .
A very promising business opportunity is available for bakery industry that is of special bakery products for pet animals .These can be tailormade for dogs ,cats and other animal .Even these bakery products can be mixed with animal feeds. The popularity of dog biscuit is a good example.