Bakery Business is eyed as attractive and lucrative business among various other businesses related to F&B sector worldwide. The bakery business is one of the oldest businesses that initiated to fulfil the need of food in form of bread. With the advent of various technologies and machinery, businesses have performed several experiments in F&B sector and have created wide variety of cakes, pastries, cookies and other delicacies.
The preparation of the business plan for the bakery business begins with the requirements of the customers and market research.
The following sections explore the planning process of a bakery.
Steps to Plan a Bakery Business
- The planning for establishing a bakery business will initiate from market research with the help of experts and technology
- The primary step is to study with the advanced tools of artificial intelligence and data analytics experts along with the social media patterns the behaviour of the consumers in the particular area
- The structure of the plan will be decided according to the research and study conducted
- The second step is to decide the infrastructure and location
- There are multiple options, such as a large retail-based bakery or a small outlet in the busy streets for accessibility
- The planning can also include in-house cafe for a bakery or restaurant, whichever is more popular in a particular area
- The next step would be to create a financial plan for the business to calculate all the important factors, such as profitability, expenditure, revenue generation, break-even points, etc.
- It is highly recommended to take help of a experienced financial expert in making precise and accurate calculations regarding the financial goals, requirements and expectations from the business
- The bakery business is completely dependent on customer satisfaction. Any single issue regarding bad/stale food, lack of hygiene and misbehaviour with the customer can ruin the entire business
- One of the most important steps is to hire skilled staff with F&B experience
The importance of good management has grown substantially due to the rise of food delivery platforms, such as Swiggy, Zomato and Uber Eats
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Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs
|Axis Bank||14.95% - 19.20% p.a.||Apply Now|
|Bajaj Finserv||9.75% - 30% p.a.||Apply Now|
|Flexiloans||1% per month onwards||Apply Now|
|HDB Financial Services Ltd.||Up to 36% p.a.||Apply Now|
|HDFC Bank||10% - 22.50% p.a.||Apply Now|
|IDFC First Bank||10.50% p.a. onwards||Apply Now|
|Indifi||1.50% per month onwards||Apply Now|
|Kotak Mahindra Bank||16% - 26% p.a.||Apply Now|
|Lendingkart||12% - 27% p.a.||Apply Now|
|Mcapital||2% per month onwards||Apply Now|
|NeoGrowth Finance||19% - 24% p.a.||Apply Now|
|Tata Capital||12% p.a. onwards||Apply Now|
|UGRO Capital||9% - 36% p.a.||Apply Now|
Note: Business loan interest rates are updated as on March 2023.
Intelligent Strategies for Bakery Business
- The basic necessity of the bakery field is innovation and experimentation
- The business owner needs to hire specialized chefs that have all the capability to create outstanding and unique delicacies, such as jumbo cakes and fruit pastries, etc.
- The business owner must meet the existing and experienced bakery owners about the exact requirements of the particular regions along with the common problems and day-to-day issues they face
- The owner must avail the options of financial assistance provided by the banks and other financial agencies with lower interest rates and flexible repayment options
The plan must include a digital marketing strategy and social media marketing strategy by taking help of a digital marketing expert
Market Research and Analysis
- The unique bakery products must reach the public and it is very important to collect the reviews of the customers about the same.
- Many real-world examples prove that bakery business has a high potential of aggressive expansion and generally is converted into a brand name
- The most important step would be to make feasible and economically viable partnerships with existing and popular food delivery platforms such as Zomato, Swiggy and Uber Eats, so as to deliver the bakery items to the preferred location and the doorsteps of the customers in lesser time.
- The use of digital tools is preferred to increase the efficiency of the services, especially in busy hours when the time of processing is very less and most of the customers demand quick service.
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Important Facts regarding the Bakery Business
- Owner or the investor must be very transparent about the type of bakery business it wants to start
- Nowadays, there is also a trend of performing retail business especially in the field of bread and similar delicacies due to their very high daily demand in public and small food businesses, restaurants, take-away, etc.
- Many of the bakeries have transformed into manufacturing industries generating revenue running into millions and provide thousands of livelihoods
- The plan must be very precise and advice of the existing successful bakery owners must be practically implemented in the plan
- The financial details can be discussed with various finance experts
- The most important step is the execution phase where things that are on the piece of paper becomes reality and comes into action