2020 wasn’t a great year for most entrepreneurs. Some businesses even chose to shut down because of the bleeding money. Luckily, the year came to an end, and hope is on the horizon. With vaccines now available in a few places, you can see this global pandemic finally coming to an end.
It also means that a few businesses, like bakeries, can recover. Bakeries are usually a staple in many American neighborhoods. They are a go-to spot for holiday pies, birthday cakes, and tasty dishes to satisfy a sugar craving. This means starting a new bakery business can be a great endeavor. To help you successfully start a new bakery, here are tips you can consider:
1.Choose the Type of Business to Start
Among the important decisions to make is to determine the type of bakery shop you want to start. To achieve this, you may need to assess your goals, talents, and budget. It can be important to carry out local market research so as to determine how national trends may affect your demographic and location.
If you choose to start an online bakery, it means you will require a storefront to open the business. With just a killer website, some pictures of your work, and a few ways to place orders, you may run the business from home. Other types of business you may start include:
- Sit-down and dine
- Specialty service
- Counter service
2.Apply for a Permit
Individuals with Pennsylvania seller permits can manufacture and sell products directly to their customers. To get your permit, you must give a list of recipes, equipment, copies of product labels, packaging description, kitchen floor plan, and equipment.
If you are also planning to sell directly to consumers, restaurants, retailers, and cafes, you must get Type B licenses. However, the cost for these licenses is more and may require an inspection of your kitchen space.
3.Get a Startup Capital and Loan
When launching a bakery, there are a lot of costs, which you might need to put into consideration, like paying for utilities, leasing commercial space, and stocking your kitchen. As a result, you may need a significant amount of cash available to cover these expenses.
It can also take some months after starting the business to be profitable, so you may need money on hand to cover all the costs for several months after opening. Some of the financing options you can look into include:
- Small business loan
- A business line of credit
- Traditional commercial loan
4.Use Affordable Marketing Strategies
Since your bakery startup is in its nascent stage with small financial means, be sure to try some low-cost marketing strategies to reach out to clients. For instance, you may create flyers, which you may hand out to individuals passing by on the road.
Flyers are among the effective marketing tools you may use to capture the attention of individuals immediately. To engage people more with your content, ensure you make your flyer designs catchy and unique.
Whether you want to change your baking skills into a business, the solution can lie in starting a bakery business.
The journey would be different for every bakery entrepreneur, but your business is guaranteed to succeed with the right tools and solid plan.