From Passion to Profit: How to Build a Thriving Commercial Bakery Business
In a commercial bakery, it’s your job to supply large orders of baked goods to other businesses, including supermarkets, restaurants, and cafes. Many people go into the commercial bakery business because they love the act of baking, but it takes a great deal more to be successful in this field than being a good baker. The good news is that you can get some tips on how to help your commercial bakery business thrive. Just keep reading to find out more.
1. Market research / create a business plan
The first thing you’ll need to do to run a commercial bakery is plenty of research and planning. You should never go into business without first doing market research to prove there is a genuine need and market share for what you are offering.
Once you have completed your market research, you will need to come up with a comprehensive business plan. This means it needs to be more than just a single page, and it needs to show as much detail as possible, including predicted costs, revenue and profit for at least the first 5 years. This will then give you a clear objective to work to, as well as make it easier to source funding should you need it.
2. Get your permits
Baking is an industry that is heavily regulated for safety reasons, and that means you won’t be able to operate without the proper permits. The type of licenses and permits you’ll need will depend on your location, so be sure to check with your state government before beginning the process.
3. Lease a commercial bakery space.
The next step will be to lease a commercial bakery space and stock it with the right equipment. You may be able to find a space that has all the ovens, racks, and workstations you need, or you may need to purchase specialist items and production lines.
4. Source the best supplies and suppliers.
Once you have all the space and equipment you need, it’s time to source your supplies. In this case, the supplies you’ll need will mainly be baking ingredients such as flour, sugar, and the like. However, you may also wish to consider using high-quality alternatives like inverted sugar syrup, which can be a cost-effective way to add sweetness to your products. Considering cost when it comes to ingredients is important because the profit margins tend to be pretty tight in the baking business, and any way to increase them can have a seriously positive impact on your success.
5. Marketing and promoting your bakery.
If your commercial bakery is to be a successful company, then it will need marketing and promotion like any other business. After all, you have to let the right people know what you have to offer if you want to sell your goods.
This means you will need to make sure your business is properly branded and that you promote it via the most relevant channels. Because a commercial bakery is a B2B enterprise, the best marketing channels are usually LinkedIn, SMS, email marketing, events and conferences, and content marketing.
