Florida is one of the most popular and fastest-growing states in America. With a thriving population, there are plenty of opportunities to start a bakery business!

In this post, we’ll cover everything you need to know about how to open a bakery in Florida, including what it takes to get started, the necessary licenses and permits you’ll need for your new business venture, and some tips on where you should set up your bakeshop.

Florida State of Small Business Outlook

Small businesses are estimated to create 70% of 1.5 million jobs and account for 43.5% of the Florida economy

Small businesses are important to growing the state’s economy and supporting employment needs. The top five Florida industries are agriculture, international trade, manufacturing, tourism, and information technology.

Learn more about the outlook for small businesses at the Florida SBDC website here

Baking Industry Statistics & Trends

Looking at the Bakery Industry: its average growth in the United States over the past five years has been 1.9%. The market for baked goods is expected to continue to grow. Bakery products make up 2.1% of the gross domestic product of the United States.

There are approximately 7,000 retail bakeries in the USA, which have combined revenue of over $3 billion. Thus the average income per bakery is about $450,000.

The global baking industry is valued at $455.921 billion in 2019 and will reach a value of more than 584 billion dollars by 2026 with the growth rate anticipated to be 3.62%.

The top trends in the baking industry according to a report by Brandessence:

• Increasingly Health-conscious consumers
• Use of Alternative Flours and plant-based substitutes
• Interest in Middle Eastern Ingredients & Fermented Flavours

Step 1: Research Your Baking Business Idea

All great businesses start with good ideas.

One of the best ways to get profitable business ideas is to review my lists of new business ideas such as small-town business ideas or home-based – lots of which are in your chosen industry and niche.

Another way to find your next startup business idea is to experiment with my fun tool –  Business Idea Generator.  Creative ideas are a great way to stimulate your entrepreneur’s brain and get your creative juices flowing. The button on this tool will provide you with new concepts for products, services, or side hustle businesses that can help do just that!  

Test Your Business Idea

Now that you have researched your idea, it is time to test its viability. It’s important not to invest in an idea until we know for sure whether or not it will be profitable!

Serial entrepreneurs should always test their ideas before investing too much time and money.

As a serial entrepreneur, I have done tons of business idea testing. Some ideas passed, but lots failed. But I am sure glad that the ones who didn’t were only small investments while my newfound confidence in myself was more valuable than anything else!

Below are the best ways I have found to test new product ideas. Get the full list of my 10 best ways to field test your business ideas here.

• Visit Trade Shows with Your New Products
• Ask Others for Constructive Feedback
• Run A Short Testing Ad Campaign
• Stage a Focus Group Session

Market Research  – Your Business Ideas

All successful businesses MUST provide a service or product that is needed by the customer in order to thrive.

The adage, “The customer is always right,” has never been truer than in today’s economic climate. To thrive amidst the competition of cutthroat industries and an ever-changing market landscape, your business needs to be able to meet its customers’ demands

Find out if your new business idea will solve problems that customers are willing to pay for by thoroughly researching the marketplace.

Begin by asking the following questions to study the market, competition, location, and target customers’ needs and wants.

Learn if the Market NEED & WANTS Your New Product or Service

• What problem, need or desire is being solved by your product?
• Who are the people, or companies, that have this problem? Why do they have the problem? What are they trying to achieve?
• How are they answering this problem now, without your new startup? What products and services are they using?
• What are other companies offering for this need – similar or dissimilar products to your business ideas?
• Where does your new firm fit into the marketplace?
• What is your point of difference, competitive edge, over established companies? Why should people buy your product instead of what they are using now?

Step 2: Name Your Baking Business

Business Name Registration in Florida State

Florida DBA (Doing Business As) Company Name Laws

Running a business under a different name, than your personal legal name, is sometimes necessary for privacy or branding reasons.

Florida law says that you must advertise your business name in a newspaper that is located near where your company is headquartered.

It is not necessary to register a fictitious name in Florida when forming a corporation, limited liability company, or limited partnership. Read more about Florida business naming regulations and apply here

For sole proprietorships, the DBA must be registered only if the owner does not intend to use their own last name, or when there is a discrepancy between how someone’s business appears on paper and what they actually want it called.
Here is an example below:

Jane’s Bakery – MUST file a DBA – Doing Business As – with the state of Florida

Jane Doe’s Bakery – DOES NOT have to file a DBA (because she is using her legal last name in her business name)

Get inspiration for naming your bakery from my big list of the best bakery name ideas here

How to Name Your New Business

How to Name Your Business so Customers Remember Your Brand

A company’s name is one of the most important parts of a business but picking out an appropriate and catchy company name can be tough. Here are my best tips for coming up with names that will stick in people’s minds!

Make a List of Keywords

The words and phrases that your prospective customers type into internet search engines to find companies like yours.  Add other towns, states, and countries to your search to find similar firms, outside of your marketing area for inspiration.  

Don’t use another firm’s exact name, just use those names to brainstorm your own unique brand name.

• Use market level words such as industry names (ie catering, plumbing) and see what comes up
• Brainstorm a list of related keywords (example for Bakery – sugar, sweet, dough, icing, fluffy, etc)
• Try your competitive advantage term (ie faster, cheaper, cooler, closer) to find interesting concepts
• Your value proposition, innovation, or special feature is a good source to build memorable names (example – Evernote – Remember Everything)
• Outside of Your Industry – Step back and look for an interesting combination of words from outside the industry such as Apple (a fruit) for electronics.

Play with Words for a Great Brand Name

It can be difficult to think up a catchy name for your brand-new business venture. Here are my best tips on coming up with company names that will get people talking about how amazing your products are:

Take that list of keywords and you created using my tips above and then play around until you find that perfect new startup name.  

Combine Two Words – Blend real names of two or more owners into an interesting compound business name. Learn the many ways to combine names in my article here. 

Acronyms – An acronym is different from a name made up of initials and creates a new word. An example of an acronym name is LEGO (short for Leg Godt – danish for “play well”) pronounced as one word.

Use this online tool to brainstorm some creative acronym business names.

Wordplay and Puns – Puns are jokes that exploit the different meanings of words – a play on words. They can make funny and catchy business names.

Some examples of business name puns; Cake my Day, Live Free or Pie, and Food Mood. Have fun and get business name inspiration with this free Pun Generator tool.

More Business Naming Tips: How to Come Up with a Catchy Business Name

Get Inspired with List of Business Names

To help inspire you I have written lists of catchy business names for lots of types of companies and different industries. Check out these unique business name ideas that are not taken and available!

Step 3: Meet Your Florida Legal Requirements: Government Registration, Licenses & Taxes

Choose Your Business Structure

Before starting a new business, entrepreneurs should make sure they’re following all the legal regulations of starting and operating a small company. It’s important to stay on top of government paperwork as well as taxes in order to avoid any setbacks or penalties later down the line.

Next, we will cover the legal requirements for business registration with your State and tax regulations. There are IRS rules to take into consideration as well when you’re starting a new venture that needs to be determined before getting the right business licenses or permits in place.

Establishing legal compliance with your new company will allow you to focus on growing the business.

Legal Business Entity Types – Explained

Your business is considered an entity or an organization in the eyes of the law and government, this means that you need to have a structure such as Sole Proprietor DBA, Corporation, LLC a limited liability company in which you run your business from.

The entity you choose to operate your business will dictate the legal protection afforded to it, which in turn dictates how much personal liability you face.

Here is how to determine the best legal structure for your new startup business such as sole proprietorship, partnerships, corporations, or trusts.  

There are many types and variations to business structure.  Depending on which kind of business you intend to run, how the day-to-day operations will be carried out, and various other factors, a particular business structure may be of more value to you than another.

Legal Business Formation Entity Types

• Sole Proprietor
• DBA – Doing Business As
• Partnership
• Corporation
• S Corporation
• Limited Liability Company (LLC)
• Non-Profit (Not for Profit)  Corporation

Sole Proprietor

A sole proprietorship is the business formation most adopted by individuals.  It is also the form of business that carries the most liability for the owner—a single owner, personally responsible for the sole proprietorship.  

For sole proprietors to be legally allowed by law, they can either use their legal personal name or take the optional route of obtaining permission from local authorities first in order for a DBA.  

A sole proprietorship is a legal structure like LLC or Corporation, and a DBA isn’t. A DBA means you can operate your business with a trading name different from your registered, legally registered personal name.

DBA – Doing Business As

The “doing business as” or DBA is a legal requirement for businesses operating under different names than their legal name.

In order to operate legally, you need to register with the proper state agency and file an assumed name certificate that states who owns your company. The only time this may not be required is if both owners are using their actual last name on any products they sell – in which case no one needs approval from anyone else!

Sole proprietorships and general partnerships are legally required to file DBAs, but almost any business entity type could benefit from having one. This is because a DBA can serve as an important form of protection when conducting business; for example if someone becomes liable for damages that occurred during the course of their company’s operations, they may be able to claim that liability was due solely to personal actions or decisions which were not related in anyway with the corporation.

Partnership

A business partnership is a legal relationship that can be formed by any written agreement between two or more individuals.

The partners and investors invest their money in the business, with each partner benefiting from any profits, taking responsibility for losses sustained.

One of the best ways to do start a business is with a partnership. It can reduce costs and help you reach your financial goals faster. The advantages of this are that it builds trust among the partners, and allows them to handle tasks more efficiently while sharing in profits.

Business partnership resources:

How to find a good partner

Business partnership types – advantages & disadvantages

How to split profits in a small business partnership

Limited Liability Company (LLC)

A popular form of business structure is the limited liability company referred to as an LLC. Each state has its regulations regarding the LLC, to clarify how it differs from the other previously mentioned business formation types, let’s start by defining the LLC.

An LLC can be thought of as a hybrid structure.  It is sort of a mix between a corporation and a partnership.  One might think of it as a partnership that insulates the owner’s liability to some limited degree, but similar to the corporation’s structure.

Read my advice about whether an LLC would be a good legal business entity for you here

Incorporation

Some businesses should incorporate, most notably those seeking venture capital and manufacturers. Other firms should not incorporate such as small one-person companies, often referred to as solopreneurs and those with low capital do not deal in products or services that could be dangerous to your customers. 

Next we will discuss incorporation as a business entity and the different types of corporations options.

S Corporation

An S Corporation differs from a regular corporation in that it chooses to pass credits, deductions, income, and losses through to the shareholders.  These shareholders would add these to their income tax.  It enables the business to simply pass along the numbers to the owners (shareholders) and act as intermediaries.  

C Corporation

A corporation is a quite different creature from a sole proprietorship.  In the United States, a corporation is a sort of virtual entity.  A corporation takes on rights and abilities like a person – that’s why it uses the word “corp” as in the corporal body.  The difference is that it features the ability to exist perpetually, quickly transfer interests, and provide limited liability for the corporation’s shareholders (owners).

Read my advice about whether a corporation would be a good legal business entity for you linked below:

Business incorporation resources

Differences Between LLC and Corporations Compared (S-Corp and C-Corp)

FAQ: How are Corporations Taxed?

LLC vs Corporations: Which is Best for Your Business?

Non Profit Corporation (Not for Profit)

A nonprofit organization is one that meets the IRS requirements for tax-exempt status because they provide a public benefit and have social missions.  Nonprofit organizations include hospitals, universities, national charities and charitable foundations that give back to the community for the common good.  

Nonprofits must serve the public good in some way. They do not distribute profit to anything other than advancing their own organization’s efforts for an even better future–one of which will be more abundant and prosperous.

Nonprofit organizations exist solely as tools with one goal: to provide a meaningful service or product that benefits society at large while also benefiting themselves by providing them with opportunities such as personal development, education, networking, etc., all aimed towards creating a world without poverty.

A not-for-profit organization is one that does not earn profit for its owners. All money earned through pursuing business activities or donations goes right back into running the charity.

Not-for-profits are not required to operate for the benefit of the public good according to law. A not-for profit can simply serve its own goals without benefiting anyone else’s interests, this is often done by ‘selfless’ people who don’t want any compensation whatsoever and believe they’re doing what’s best in their communities

When a business becomes a partner, it should register with all states where the partnership does business to be in compliance.

If you are interested in setting up a non-profit, or not-for-profit, check out my expert tips here.

Learn more in my guide: How to Start Your Small Business Legally – Important Legal Requirements

Register Your Business with Government and IRS

Get Your Federal and State Tax IDs Number

The State where your business headquarters are located AND your chosen business structure determine how you will need to register your business.

While not every business must be registered with the government, I recommend that you do so to take advantage of the legal and tax benefits – plus get personal liability protection from business debts and lawsuits.

Once you properly register your company you will be issued an employer identification number, or EIN for short. You need this number – even if you are working alone, self-employed or hiring only subcontractors and no employees.

An EIN number is the business equivalent of your personal social security number and is used in various steps like opening up an account at a bank or paying taxes. Not all states require that you get one, but it might be worth getting if there’ll likely be more tax-related things coming ahead of time.

Registering your business with state and local governments is usually as simple as registering your company name.  Here’s how to do register our business in your state:

Florida State: LLC Formation Requirements

Name Your Florida LLC: Legal Requirements

This is how to form an LLC – Limited Liability Company in the State of Florida.

Choosing an LLC name is the first part of setting up and running your business in Florida. There are certain naming restrictions in Florida that you will need to abide by, but it’s also important for potential clients to be able to search for your company easily on the internet.

BUT Remember, your LLC name does not have to BE your business name or MATCH your website name. Your LLC name is your company’s legal entity name while your business name is your brand name to market to your customers.

Thus, your LLC name can be My Company LLC and your bakery store name and product names can be Sally’s Scrumptious or Downtown Bake Spot.

Learn more about how your LLC name and your company brand name do not need to match in my in-depth guide here

 Follow the naming guidelines for a Florida LLC:

• The name must be distinguishable on the records of the Department of State.
• The name must include Limited Liability Company, LLC, or L.L.C

Learn more about Florida State LLC naming regulations on the official state website

Is the name available in Florida? Make sure the name you want isn’t already taken by doing a name search https://dos.myflorida.com/sunbiz/search/

Don’t forget to search for – and register – your domain name FIRST to be sure you can use your brand name online. Search and get a free domain here at my recommendation Bluehost

Apply for Your Business Licenses and Permits

You are responsible for making sure your business has the proper federal, state and local licenses and permits to operate legally. A pivotal part of this process for many entrepreneurs is determining what type of licensing they’ll need.  Here are two ways to research which business liceneses and permits you will need in your State and for your specific industry startup:

1. FREE online business license lookup tool
2. Low-cost business license research service

Online Business Lookup Tool – FREE

Business licensing is something that people often overlook when setting out on the entrepreneurial path–particularly those who have never started any kind of company before. 

At Incfile they take the guesswork out of how to obtain a business license and the necessary permits which their easy-to-use business license look up tool here Yes its free.

Simply select your State and niche industry and in second you will know precisely which licenses you require. Plus you will get links to permit application and helpful guides.

Business License Research Package – LOW COST

You must understand how important it is for complying with local laws can be even if you’re not physically located within city limits! One example is meeting all requirements related to commercial zoning regulations like getting approved by your town council (as well as municipal planners).

Furthermore, don’t be fooled; your corporation or LLC may need more than one license to operate fully at the state level.

Here you can get the most up-to-date, state-specific information about exactly which business licenses you must obtain based upon certain factors such as industry type or whether it’s an online endeavor rather than brick and mortar shop.

Protect Your Company’s Intellectual Property Assets

If your new businesses develops new inventions, manufacturing processes or products you will want to protect your intellectual property with patents, trademarks, and copyrights issued by the US patent and trademark office.

Learn more in my article – What is Intellectual Property and Why it’s Important to Your Business

State of Florida Business Licenses & Permits Laws

When setting up your business, you may need to get special permits and license depending on the type of business.

Obtaining your Business License has never been this easy! No guesswork, and we’ll do the paperwork for you. Apply today at Incfile.com.

Florida State Bakery Food Licensing Regulations

Home Bakery Licensing

There is confusion about bakery licenses in Florida since home bakeries do not require permits because they are considered cottage food establishments BUT storefront and commercial bakeries do require permits (which we discuss next section). These types of home food purveyors have different laws than a standard storefront or commercial bakeries.

Setting up a Florida cottage food business is easy. You do not need a license or permit, and the state does not inspect your kitchen.

Know that your bakery will be limited to a specific list of food type items as listed below and these stringent rules:

Florida State Cottage Food Law Basics

• You can only sell cottage foods in Florida. You cannot sell it across state lines.
• Cottage food operators may sell products from their website, but they cannot mail them.
• Cottage food products must be delivered directly to the consumer or an event.
• Cottage food producers are not allowed to sell wholesale.
• Cottage food operators must properly package and label their foods. They are allowed to serve free samples for tasting, but the samples must be packed in a prepackaged form.
• A cottage food operation must follow all applicable county or municipal laws regulating the preparation, processing, storage, and sale of cottage food products.

Approved Cottage Food Products in Florida State

• Loaf bread, rolls, biscuits
• Cakes, pastries, and cookies
• Candies and confections
• Honey
• Jams, jellies, and preserves
• Fruit pies and dried fruits
• Dry herbs, seasonings, and mixtures
• Homemade pasta
• Cereals, trail mixes, and granola
• Coated or uncoated nuts
• Vinegar and flavored vinegar
• Popcorn and popcorn balls

Read more about Florida cottage food laws here

Storefront or Commercial Bakeries: Obtaining a Food Establishment Permit

If you want to open a food place in Florida, you must get a permit from FDACS.

FDACS issues three different types of food establishment permits: retail, wholesale/manufactured, and medical marijuana treatment center edibles.

To learn the details and how to apply, please select the right permit type link for your new business below.

Retail

Wholesale/Manufactured Food

Hemp Food Establishments

Medical Marijuana Edibles

Business Taxes – Sales & Income

As a new business owner, you must pay two types of taxes: sales tax and income tax.

Income Taxes for Businesses

Taxes are unavoidable in your business, but luckily this handy resource can help guide you.

The first thing you need to know is what kind of business tax system your company falls under. Your firm’s legal entity type (LLC, Corporation or Sole Proprietorship) will determine your tax bill and payment due date.

Sales Taxes

There are two types of taxes that you need to collect from your customers in the US.

·       Sales Tax – This sales tax applies to certain kinds of tangible products as well as services.

·       Use Tax – Use tax applies to products or services purchased out of state for use in the state.

Sales taxes are charged on most products, and also levied on services.

Florida State Sales Tax Law

Every single sale in Florida is taxable unless exempt. The tax must be included as part of the price and charged at the time of purchase.

The general rate is 6%. However, the rate for amusement machine receipts is 4%, commercial property licenses are subject to 5.5% taxation, and electricity has a 6.95% sales tax.

Many Florida countries may have a discretionary sales surtax. Get detailed information about taxes by city and county here:

Step 4: Write Your Bakery Business Plan

No doubt you’ve heard the old saying of one of my heroes Winston Churchill, “if you don’t plan – you are planning to fail”. 

Nowhere is this truer than when starting a business.

Starting a business without any planning is one of the most common mistakes entrepreneurs make. Spare yourself the substantial loss of money, time, and much heartache by taking the time to write a business plan. A well-written business plan is one way you can invest in your future success!

The importance of writing the plan is not entirely in its finished product, but what you discover about your business as you prepare it. During the process of writing your business plan, you will uncover aspects of your business strategy that will not work.

Far better for your startup success and survival that you discover these weaknesses on paper – NOW – then adjust your business model accordingly- than to encounter these problems in your company costing time, money – and quite possibility your company survival.

Think of your business plan as a map for your entrepreneurial journey. You would not set out on a long hike across unknown territory without a field guide and a detailed map.

So, don’t dive into a new business and spend money, time and emotional energy without a map – your business plan.

Your business plan must answer these 9 critical questions:

1. What is the purpose of your business?

2. Who are your target customers?

3. What are the benefits of doing business with you?

4. How do you plan to reach these customers?

5. Where will your company be located and what type of facilities will it need?

6. What kind of employees will you need, and how many people should work for your company at first?

7. Do you have any competitors in this market space, and if so, who are they and what differentiates them from each other and from yourself?

8. What does success look like for this business in one year, five years, and ten years from now?

9. What are the most important tasks that need to be completed before launching a new product or service?

Read my review of business plan software and learn about some great free options here

More helpful resources to write your business plan

Business Plan Musts – For Loan Approval

Questions Winning Business Plans Must Answer

10 Critical Items Your Business Plan May be Missing

Step 5: Calculate Your Finances and Fund Your Bakery Business

This is an important stage where you will calculate financial projections to determine if your business idea is profitable and determine your pricing strategy. Also, you will need to ascertain the amount of capital you will need for both your startup costs and ongoing working capital.

Calculate Your Startup Costs

Two Types of Startup Costs – Setup and Operational

First, you need to know that there are two distinct types of costs, those you will incur as you set up your company (Set up Costs or Startup Costs) and those that will continue to be expensed as you operate (Operational Costs, Expenses and Working Capital).

Set Up Costs

One time investment to open your store or launch your website includes such items as legal business formation, building renovations, and manufacturing equipment.

These are easier to calculate. You will research each item and simply add up the list for your total set up costs.

Operational Costs

Ongoing expenses to continue business operations including rent, supplies, employee salaries – and most importantly working capital. These costs are more difficult to calculate because they have many more variables. As your sales increase so will your labor and material and inventory needs.

Read my article about how to correctly calculate your startup and operational costs here.

Forecast Sales & Expenses

The next step is to forecast your sales and expenses and generate a business budget.

I have a that I say that is funny but also true.  I tell all new entrepreneurs to take their financial projections and cut their sales in half and double their expenses.

Then, if the numbers show that they will make money they should go forward to launch their business.  Certainly, simplistic, but it illustrates that most entrepreneurs overestimate their sales and underestimate their expenses to their own detriment. 

Here is the right way to create a business budget.

Define Working Capital Requirements

From one entrepreneur to another, you need to get wise about working capital, today, if you plan to keep your business doors open. Because the #1 reason for business failure is lack of working capital. Don’t become a business failure statistic.

Working capital refers to the funds that help you meet the daily expenses and needs of running your business, such as payroll or paying for software, tools and supplies.

From a business management perspective here’s all that you need to know about working capital in my article about what it is, the amount you need, how to manage it like a pro, and if you are short on working capital how to either get financing and how to reduce your working capital needs without a loan.

Determine Your Prices

Begin your financial planning by determining your best pricing.  Pricing your product and service is a bit of an art science.  There are multiple ways to determine your best price, cost plus and market demand & supply.

There are different methods to calculate your prices for your new startup business based on multiple factors such as market demand, competitive prices, and costs expenses.

These are the most often used pricing strategies for small business with recommendations for which methods fit different types of businesses. 

Premium Pricing

This method is when you price your product higher than your competitors. This technique is often used at product launch to create a high-value perception in your customer’s minds.

Incfile makes entrepreneurship easy. Get started with $0 LLC today!

Market Penetration Pricing

This concept is to gain buyers by offering the lowest prices on goods and services to enter a crowded marketplace. It is common for entrepreneurs to use this technique initially. If not planned and executed carefully this is the most dangerous type of pricing strategy for your bottom line and business survival.

Psychology Pricing

By utilizing the power of people’s emotions to buy is the key to success with this pricing strategy. Many consumers consider the price of a particular item a major purchasing factor.  Use this to your advantage by reducing your price a little and changing your buyer’s minds a lot. You have all seen the $199 specials, which are only $1 less than two hundred but seem to be a better bargain.

Read my full article about how to best price your products and services here.   

Fund Your Business

Now that you have a great business idea, you will need money to get started in your new venture.

While there are some businesses that you can start with almost no money some are even free.  Most startups require some form of a business loan or capital investment.

Startup Funding Resource List

Here are some good ways to fund your startup launch. Personal savings

• Loans  – Personal and business
• Credit Cards (Read my entrepreneur tips here first)
• Crowdfunding
• Partners & Investors (Read my article Business Partnerships 101)
• SBA Loans  
• Small business grants – (Read my list of startup grants with applications here)
• Product Licensing – (Read my article about how to sell your business idea here)

Read my full list of 17 Proven Sources For Startup Capital

TIP: If you need to finance your small business consider top recommendation for small business startup loans – Kabbage.com. Read my review of Kabbage loans with verified customer reviews and experience

Step 6: Pick Your Business Location in Florida

Choosing the right location for your firm is one of the most important decisions you will make at the onset of your business launch.

Take your time and do your homework of research and planning, before committing to a lease on retail, restaurant, or office space. Study the demographics of the area and surrounding towns, your competition nearby, and much more. Here are the questions you need to ask before signing a lease:

7 Questions to Determine if Location is Good for your Business

1. Image – Does this spot project the brand image you desire?
2. Competition – Are neighboring businesses competition or complementary?
3. Labor – Will you be able to find employees easily, or is it too far to commute?
4. Growth – Is there room for future expansions?
5. Vendors – Are vendors able to deliver here efficiently and at a reasonable cost?
6. Security – What is the crime rate?
7. Zoning – Is this location zoned for your type of business activity?

Helpful resources:

Leasing your first office? Negotiation pointers

Step 7: Buy an Bakery Insurance Policy

Get Business Insurance Policy

Running a business is risky. Injury, natural disaster, or lawsuit can force you out of business and leave your family without income! Business insurance protects against these unforeseen risks to keep things running smoothly so the company doesn’t have to close its doors due to an accident or major incident.

Think about it. If your business gets sued, you will lose money that could have easily been prevented by purchasing the right insurance policy!

Insurance Regulations: Federal IRS, State, and City

The protections you get from choosing a business structure like an LLC or corporation typically only protect your personal property and even that protection is limited.

In today’s world, it is impossible to protect everything. Even with the most comprehensive coverage in place, there are still many gaps that can leave your business exposed if you don’t have adequate insurance protection for both personal and business assets as well!

There are a number of aspects to consider when determining the right type and level of business insurance. For example, you will need different coverage if your company employs other people than just yourself or is within certain industries.

The federal government requires every business with employees to have workers’ compensation, unemployment, and disability insurance; however, there are many additional types available depending on factors such as industry size among others which make it difficult for employers who want their employees protected against all potential risks from liability exposure that could arise from something they do at work like slip-and-fall accidents or even injury caused by faulty equipment in an industrial setting.

To navigate the complex world of business insurance needs I recommend the Coverwallet easy-to-use tool here that will quickly tell you exactly what insurance policies you need and provide competitive price quotes from top insurers.

Step 8: Open a Business Bank Account

To accept customer payments, cash, checks or credit cards, your business will require a separate bank account from your personal or family bank accounts.

Please do not make the beginner entrepreneur to run your business through your personal account. You will be making it harder on yourself since it will be tougher to manage transactions, reconcile checking accounts and prepare your tax returns.

All small business experts and the Internal Revenue Service recommend the separation of business and personal bank accounts. By opening a business account, you make this possible. Read my article about how to open your new business bank account here

Additionally, having a business bank account is an important credibility factor to make your business idea a legit company and not just a dream. Also, for corporations, LLC’s and so forth, a separate and individual bank account will be necessary.  

Depending on the bank and type of account required, several business days may be needed to get things set up, so don’t wait until the last minute to get things set up.

Set Up Your Accounting Software System

Whether you’re starting a sole proprietorship or an LLC, having the proper accounting setup is essential.  It is far better to have your bookkeeping established right from the start rather than find out down the road that you’ve done things wrong and now owe money to the IRS.

I learned this the hard way in one of my early ventures. Start bookkeeping with your second dollar – the first dollar you put in a frame over the door or on your desk

Depending on the particular business formation type you have chosen, there may be reporting requirements for the accounting, especially payroll and taxes, that require regular and ongoing attention. Consult the IRS for your tax payment and reporting schedule.

I recommend the easy to use, but flexible enough for growing companies, software Freshbooks. From sending email invoices, accepting credit cards, and tracking expenses it simple, effective, and affordable. Check out the discount sale here.

Step 9: Build Your Bakery Team

Unless the business is completely automated, personnel (employees, freelance or subcontractors) will likely be required.  After all, it’s good old-fashioned hard work that built American business.  And it will continue to be the labor of people that make businesses succeed.

In the case of hiring staff, there will be certain legal considerations that must be taken into account.

• Staff hierarchy – Are management in place?  Who runs the various business operations?
• Deductions & taxes – Accounts with the IRS setup?  Software or accounting in place for payroll?
• Health care and benefits – Are your staff protected?
• Working conditions – Does the working environment comply with all state regulations?

Use this new hire checklist from the experts at Freshbooks

Step 10: Select Your Vendors

Choosing the right supplier for your business is vital. If your supplier isn’t reliable or doesn’t provide high-quality products, your company will struggle to deliver well-priced goods and services that meet your customers’ expectations.

So how do you choose the right supplier? Review these criteria to select the best possible suppliers for your products, components, or raw materials.

1. Lead time
2. Delivery Schedule
3. Shipping Fees
4. Minimum order quantity
5. Dropshipping capabilities
6. Quality assurance methods
7. Payment terms
8. Credit line accounts
9. Return policy
10. Communication standards

Here are my best tips on  how to find affordable wholesale sources

Negotiate Lower Supplier Prices

Negotiating is a crucial skill for any business person. In many cases, you are the only one in your company who can negotiate with suppliers and vendors on price.
Here are tips on how to negotiate lower material and inventory prices from your suppliers and vendors. Remember every dollar you save on your supply bill is another dollar of profit!

1. Negotiate with suppliers and vendors to lower material and inventory prices – don’t accept the list price
2. Know the market price for materials, products, or services – do some research before contacting vendors
3. Research other companies that offer similar goods or services in your industry
4. Find out what competitors are paying for materials and inventory
5. Ask about volume discounts if you buy a lot of materials from one supplier – BUT do not overbuy because startup companies need to avoid tying up a large amount of capital in materials.
6. Know what your bottom line is before negotiating and don’t be afraid to ask for it
7. Be prepared to walk away from a deal if you can’t get the price you want

Learn How to Establish and Build Your Business Credit – 8 Easy Steps

Step 11: Create Your Bakery Brand and Advertise

Branding Your Business 

Branding your business involves more than just naming the company. It also involves having a custom-designed logo, a signature font, unique company colors, and even a slogan for your business.  Here’s how to use branding to make your products and company memorable.

Get Your Perfect Logo Design

Can you think of a major business without a logo? Bet you can’t!

That’s because major brands are built on the foundation of strong logos, the single most important visual element of branding.

So, you know that you need a standout logo for your company. But how to create one?

Learn how I created my newest brand logo in this comprehensive 99designs step by step tutorial complete with over an over-the-shoulder video series.

PS (save $99 on your order with my exclusive coupon code here) .

Publish Your Company Website

Take your reputation online and build a company website.

Your prospective customers are increasingly turning to the internet for answers but not everyone goes through the necessary steps of getting online for their company. Get a competitive advantage and start your website early in your launch.

Websites are a fantastic way to interact with current and potential customers. They offer the customer easier ways to reach out, make an inquiry, or simply get your name out there.

Using a quality vendor – I recommend Bluehost – and a pre-done WordPress template (of the hundreds to choose from) you can get online in days for a super reasonable price – under $5.00. During this promotion, you can even get a FREE domain name included from my preferred vendor Bluehost.

Set Up Social Media Profiles

You may not have the cash to launch your new business, but you can still make a name for yourself with social media. Use it as an outlet to tell people about what’s coming and offer coupons when that time comes!

Depending on your target audience, certain social media platforms will be more beneficial than others. Check out this report of the most popular social media platforms and user demographics . Match your target customer with the site they frequent most and focus your efforts there first. 

Reserve your company name on the best social media sites instantly at Knowem for one low price.

Advertising Your Products

Advertising comes in many forms, from billboards to a website to a storefront sign.  In the good old days, there was a focus on flyers, and today it’s social media.  Regardless of the method, getting your business name out is essential to growing your client base.

Defining a solid strategy for advertising and setting an advertising budget is a significant step for any business. Here are some low-cost advertising ideas to get you started:

1. Advertise on social media platforms like Facebook and Twitter
2. Get your business listed in the phone book or online directories
3. Ask for referrals from friends, family, and acquaintances
4. Write a catchy slogan that will catch people’s attention when they see it or hear it in passing
5. Create a Facebook page for your company and post content related to your business
6. Use Google Adwords to advertise on other websites
7. Write an article about your business and submit it to relevant blogs or magazines
8. Design flyers that are eye-catching, informative, and easy to read
9. Print business cards printed and hand them out to potential customers
10. Advertise on social media sites like Facebook, Twitter, or Instagram
11. Put up flyers around town with your contact information
12. Place ads in local newspapers – display or classified service directory
13. Send direct mail to potential customers with coupons
14. Start an email newsletter campaign with the goal of building relationships with current and future cust