How to Start a Bakery Business From the Ground Up?
Choose a location and space
Since you are going into production, the main criterion for location selection must be compliance with health and safety standards. Here are the main ones:
- A bakery can’t be located in the basement of an apartment building or in a semi-basement.
- Premises must have a waterproof floor.
- Availability of water supply and sewerage.
- Presence of air conditioning and ventilation.
- Separate room for storing products (flour, oil, etc.).
- Changing room.
When choosing between several options, be sure to consider that you will have to prepare it for health inspections: some options will be excluded right at the start (for example, all basements). If you are planning to open a bakery in a small or mid-sized town, look for a busy environment and good visibility. Pastries always need to be fresh so products have a very short shelf life. So you need to sell products as quickly as possible to avoid leftovers and write-offs.
Register the business
After selecting the premises, you will start the process of bakery registration. Most entrepreneurs surely agree that one of the most troublesome moments in business development is the official registration. The paperwork requires a considerable amount of patience, time, and eagerness. The number of and the way to obtain permits and licenses always depend on the state and the structure of your business, which we discuss in more detail in the article How to start a restaurant business. To figure out what documents are necessary for your city and state we recommend you check out the U.S. Small Business Administration and License Suite websites. They provide all the necessary information about where to get licenses and how much it will all cost.
Here is a list of the main steps that are needed for legally opening a bakery:
- A general business license
- Employer Identification Number (EIN)
- Register your business name with the secretary of state
- Register with the federal government or get a federal tax ID.
- Certificate of Occupancy
- Health Department Permits (food service license, building health permit, employee health permit)
- Fire Department Permit
- Seller's Permit
Environment of the bakery
To begin with, you need to find a chef or food technologist who will be in charge of equipment purchasing, and controlling the workflow organization process. The person you hire for this job should be reliable and skilled in everything that goes with choice of equipment, brands, etc.
Used equipment is always risky for a business, especially at the very beginning. But this doesn’t mean you must choose the most expensive items for your bakery. It is essential to take into account equipment maintenance costs, which depend on the quality of the equipment itself. If you purchase equipment from a reliable company, which provides all the necessary guarantees, then you will significantly reduce service costs. Professional equipment must meet quality and sanitary standards. It isn’t worth saving on this: once you’ve bought a good tool, you’ve made an investment in your business: Only high-quality equipment pays off and brings in the revenue. Let’s divide bakery equipment into two categories: basic and additional. And don’t forget to choose your perfect bakery POS system.
Basic equipment of the bakery machinery:
- Flour sifter
- Dough Mixers
- Dough Presses
- Dough Dockers
- Dough Sheeters, Rounders and Dividers
- Proofing Cabinets
- Bakery Ovens
- Additional equipment:
- Baking trays
- Holding Cabinets
- Work Tables
- Washing equipment
- Climatic equipment