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What Do I Need To Create A Bakery?

What Do I Need To Create A Bakery?

Of all of the elements that must come together to make your dream of opening a bakery a reality

, a some stand out as worthy of some detail to get you started on the right foot.

Suppliers

Most of the ingredients of your baked goods are relatively standard, but that doesnt mean you shouldnt shop around for the best suppliers. Since you will be working in high volumes relative to an individual consumer, you will want to purchase directly from distributors of flour, sugar, salt, eggs, and other ingredients who can deliver bulk order in larger packages. Buying from a supermarket will likely be more expensive due to their pricing and to the time it takes to provide your businesss resale certificate time and again to remove sales tax from your purchases.

Once you find distributors who serve your region, try to balance the need to work with as few as possible (saving time and headaches) and to have consistently high-quality ingredients. Working with smaller suppliers mean a more personal relationship (your purchases will be more important to them and get you better service) but often bigger businesses can be more consistent or reliable if they have longer track records.

Location and Licenses

Your location can work for you or against you, so think hard before choosing. Look at it in terms of foot traffic, accessibility to your intended customers, and the quality and tone of the neighborhood. Also, make sure that the intended location is zoned for commercial use and double-check this fact with the local government.

Start the process of getting your business licenses as soon as you are settled on a location. These may include work licenses for your renovations, your standard business license, and a health department license for food service. If local government does not make it easy to find out the requirements for what you will need or how you can get these licenses, consider hiring an expert to help push you through the process.

Business Plan and Capital

The business plan is your primary ticket to funding, but will also give you much greater insight into how you should manage the bakery. Raising the capital you need to launch and survive until you are cash flow positive is the end goal of the plan. You are likely looking at over a hundred thousand dollars to cover the build out of your location, purchase of equipment, licenses, initial marketing, and working capital to get you up and running. It may be much easier to patch together this funding from a variety of sources than to get a lump of money from any one investor or source.

by: Eric Powers
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What Do I Need To Create A Bakery?