Start your own Business, open a small Bakery. Image Courtesy – https://bizfluent.com

If you want to open a small business, the bakery is the right business for you. To start a new project, everyone has to make a plan, thus it is necessary for you to make a business plan if you want to start a bakery business. A bakery business can give you a moderate to good revenue as this is a stable and profitable business.

A certain amount is required to purchase equipment to build a small bakery depending upon the capacity that you have to establish. You will also need to find a space, all the necessary documents, and even have to hire necessary staffs to run it.

Selection of required premises for a bakery

It is worth noting that the choice of a suitable room is the biggest and main concern that needs to be resolved to implement the business plan. You should immediately understand that the idea of ​​opening a small bakery from scratch is not the best, as you can spend a lot of money and time. Therefore, one of the possible options may be to use public catering establishments or free zones of shops.

To do this, you must conclude an agreement on the possibility of joint activities. If you have your own space or quite a big land, you can start very smoothly. To open such a small business as a small bakery, you need a room with an area of ​​60–120 square meters.

Care should also be taken on the proper place of the Production such as bakery products and pastries. Some important points you have to keep in your mind about the distance from the proposed point of sale, whether there are parking lots etc. Do not forget about the presence of potential competitors in the selected region.

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(i) Project Summary

The project aims to inaugurate a small bakery for the production and sale of bakery products in a city with a population of over 1 million people. The main source of income is the profit from the sale of bakery products.

For the implementation of the project, a room may be rented in a residential area of ​​the city, in close proximity to houses and a busy street. The total production area is 100 square meter.

There are several benefits of bakery business like Stable demand for products that is almost independent of the crisis, flexibility of production allowing consumers to adapt to tastes and market trends.

(ii) Description of industry and company

The bakery product is a daily-based product. Bread is one of the leading products of the bakery. According to the results of a social survey, 74% of the urban people consume bread daily. It shows that this segment of the food market is fairly stable.

(iii) Description of goods and services

The project includes the opening of a small bakery with the goal of producing and selling bakery products. Bakery products are defined as a healthy and nutritious food. That is why high-quality ingredients and unique recipe are used in the production of bread, which makes bakeries stand out in the market.

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(iv) Sales and Marketing

The target audience of the bakery is those who prefer healthy lifestyles and choose high quality and healthy bakery products. The target audience can be divided into two segments – 80% of the consumers are residents of nearby homes, and 20% are random passers-by and regular customers.

(v) Bakery Production Scheme

The following steps are included to open a bakery and streamline the production – management of space, labour, raw material, organizations for supplying raw materials, proper source of water, electricity, required equipment etc. These steps are almost the basic requirements for starting a bakery business.

(vi) Organizational Planning

The initial stage of opening a bakery is to register a business with government agencies and obtain permits for food production. To produce and sell food products, an enterprise must obtain a permit from SES for production. An SES concludes of finished products and a certificate of conformity. Before the production commences, the conclusion of fire inspection and environmental supervision must also be obtained.

(vii) Financial Planning

The financial plan takes into account all the income and expenses of the bakery. The span of the plan is a minimum of 3 years. It is planned that after this period the enterprise will need to expand the capacity of production and the range of products.

To start a project, you need to calculate the amount of investment. To do this, you need to determine the cost of repairing the premises, the initial requirement for purchasing of equipment, raw materials, and the statistics of working capital, which will cover the loss of the initial periods.

(viii) Possible risk

To assess the risk component of the project, it is necessary to analyze external and internal factors. External factors include threats related to the economic situation in the country and the markets.

The internal factors include increasing the prices for raw materials, unscrupulous suppliers etc. In the first case, there is an increased cost risk and, as a result, the selling price, which can negatively affect the demand. In the second case, the risk is associated with interruptions in production. By the right choice of suppliers and all necessary conditions included in the contract, it is possible to reduce the likelihood of these hazards which provide for the supplier’s liability in case of a breach.

So, if you have taken a mental preparation to start something for you, this plan is for you. Make a solid business plan and start a small bakery, be your own boss.