How  to start  your own  bakery

To  start  a bakery  following  factors  have to be checked . The first  and the foremost  decision
one has to take is to

Franchise  a known brand and process

Build a  new   bakery

Purchase old bakery and renovate

Start a small bakery  from home .

Depending on the financial budget one has  to take decision  .Do take your accountant  views
on this . All other legal and government  related jobs has to be completed prior to operations .
Few  actions like registration , taxes and water and electricity connections  ,No objection for
authorities to start  bakery in that particular  area

The  Four  Most  Important  M' s  of any business  which  are applicable to bakery business are .

Man

Bakery  requires  skilled  bakers  either you hire bakers or learn bakery  skills from  good
professional bakery schools/institutes . Other s could be expert accountants/sales/procurement
people if you plan to  run bakery on  a bit larger scale .


Money

Finances  has to be arranged as first step open an  current account in  nearby bank . Check
with the accountant on amount of money you would require  for raw material , packaging
material , fuel
overheads . To avail  finances you can source it from  bank loans , personal savings , credit
card loans  , business loans, partners money  or going public . One important point to note here
is to that break even could be achieved through  cost optimisation in all cost element s.


Machine

Machinery  required  for bakery production can be  procured either new or second hand .For
new start ups I would recommend to buy  second hand  equipment  and once sales increases
we can go for  new and latest machinery . Few examples -oven , mixers , depositors ,slicers
and packing machines


Material

Raw material has to be procured at  most competitive  price to maintain the margins .
Basic ingredients for bakery are flour , fat , sugar , salts , butter , ammonium bicarbonate
,sodium bicarbonate , yeast  etc . Where as  packing material are flexible packaging material
like  hdpe , ldpe , bopp , trays and carton boxes.




Once we have got new bakery at place and finances arranged  we have to work on  marketing
and popularising brand  to increase sales . Following   are most important  4P s  of marketing




Place

You have to be very carefull while selecting  the location of your bakery as earlier sales would
happen  most of the time on the shelf .Later once it becomes popular consumers would ask for
home delivery .You must prefer busy markets ,  educational institutes , multiplexes or malls or
residential areas  .Do a small surveys of your existing competitors in that area . Lesser the
competition better are the chances of your bakery being successfull.



Product

Conduct  a survey  on bakery product which  are  in demand or popular .Do it by your self or
take professional help in finding out  the product . You can create a niche product  are start
popularising  it .



Pricing

Once you start manufacturing these products you have to price your produt such as it recovers
all cost with reosanable profit .Also check your competitors pricing . Prices shouldn't  be very
high neither they should very low .




Promotion

Word to mouth is the best advertisement and is free .maintain good quality and service people
would  start coming up to your shop . Throw a party among friends on inauguration ,distribute
pamphlets ,brochure and leaflets to  nearby areas .Put aside  some budget for ads on local
newspaper



Costing

Here  are  few  terms  you need  to calculate  or know  before putting  your money  on

Total fixed  cost

which  includes   cost related to  plant and machinery  , equipments & machinery  and utility
equipments .


Working capital

The amount required intially for  a  intial  period    to run  the manufacturing unit



Total  capital  investment

The value  which takes into account  the fixed assets and working capital require  to start
operations .


Cost  of production

Includes  cost of raw material , overheads such as interest , depreciation , wages , fuel ,
electricity  etc .


Profit  sales ratio

Rate of  Return On  Investment ( ROI)

Break  Even  Point

Payback period













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