Financial Tips on Opening a Bakery
If your dream has always been to open and operate your own bakery, what’s stopping you?
If you’re worried about the financial logistics of being a bakery business owner, following these simple steps can simplify the process.
Budget Basics
The first step you need to take to open your own business, bakery or otherwise, is to figure out what you can spend. You should figure out what you’ll need to spend to get the business up and running. You’ll also need to estimate your monthly break-even point and focus in on that to star t with. It can be hard to forecast the numbers correctly, but you should be putting forth your best efforts. Once you have the “start” numbers nailed down, you’ll be able to start purchasing equipment (be sure to check out our bakery equipment financing page!) and obtaining retail space.
Focus on Marketing
Marketing is the cornerstone to a successful business so you should be using word of mouth, local ad sales, and commercial spots to sell your bakery. A major part of your finances should go towards marketing because that is how you will establish customers. A great and inexpensive way to spread word of mouth is to offer products at smaller local events such as a fundraiser or a school sporting event.
Be Aware of Branding
Branding is different from marketing, and when you’re starting off, you shouldn’t be putting a ton of funds into branding. You can brand your coffee, your napkins, and so forth, but it is an expensive and upfront cost. As long as your customers walk out the door with a menu and a phone number when you first open up, that is enough. Spend money on branding when you’re a little more established.
When opening up a bakery, you’ll also need to budget for equipment. Visit Empire Bakery Equipment for all of the bakery equipment you’ll need to open your own bakery.