Starting a home-based bakery is a complex matter. There are many facets to small business start-ups that may not be obvious to you initially; and it is important to understand that time and costs vary according to the complexity of your business.
There are a few questions you need to ask yourself before starting your home bakery business plan:
- Can your idea work?
- Do you know your market?
- Do you know about your competition?
- Will you be able to operate the bakery “solo”?
- Do you know all of the licensing and regulatory information associated with starting a home bakery business?
- Who will support you in your effort?
- Where will you purchase your wholesale products?
- What is your “back-up” plan should you not be able to bake or deliver a product?
Here are 7 keys to success
Consider your suitability:
Are you really suited to operating your own small business? Consider starting a business where you already have industry or management experience. Can you bake? How well? Are you a good troubleshooter? Studies show that those starting a completely new venture have a higher risk of failure. If you are starting a home bakery, ensure that you are continually learning new skills and researching your industry. This is one of the reasons we post workshops, classes, industry trends and resources on the HomeBasedBaking.com Facebook page.
Consider your idea:
Assess the merit of your business idea and determine whether people will be willing to pay money for your product or service. Will you tell customers you’re a home-based operation? How will you secure confidence that you are serious about your craft? To what extremes are you willing to go to showcase the professional aspects of your business? Take a peek at Maine’s Cakes and Cookies owned by Diane Purkey who has been in business for more than seven years.
Consider your market:
It’s a little known fact to many small business owners but you really do need to consistently reaching your customers, because you require customers to survive. No sarcasm here, you will soon learn that a lot of marketing is needed to help establish a name for yourself. Branding, marketing and advertising are an essential part of your bakery success and these are all ongoing tasks that need constant attention.
Consider your competition:
Look into what your competition does to capture the market. You will need to do that and more to stay competitive. There are some communities that are over saturated with home-based bakers and cake decorators. How you stand out from the competition will be the key to your success.
Consider the environment:
Try to keep in touch with what is happening in your industry, the general trends and the overall economic situation so you can take into account factors that might affect you success. Recently there were to government officials asking for guidelines concerning what makes up “tolerable” amounts of gluten in gluten free products. If you are a gluten free baker, this is definitely something you need to watch and know!
Consider your finances:
Keep accurate and up to date financial records and manage your cash flow. A close eye on performance means you can address problems straight away rather than leaving it too late. If you are not a good bookkeeper, hire one or invest in a good accounting program, it will be worth its weight in gold.
Consider your start-up:
Make sure you have enough money to cover your start-up cost. If you cannot afford to purchase what is needed to start your home bakery, obtain the license or purchase supplies and ingredients, you may want to reconsider and start a savings plan or locate a small business loan or angel fund. The quickest way for any small business to go under is to be under financed. Remember, it takes money to make money.
If you have questions about starting your home bakery business complete the contact form or email HomebasedBaking.com.
