If you are the one who bakes all the killer family birthday cakes and makes pastries for kids, it’s time to put the skills in the business. Many of you might think starting a bakery is hard and it needs a lot of capital, true it needs capital but it’s not impossible. Here is a brief guide on how to start a bakery business.
Plan your bakery
Before applying for a small business loan in Singapore, you need to decide what kind of a bakery you are planning to open. There are several types of bakeries such as online bakeries, specialty service, and sit down bakery or counter top bakery. Online bakeries are the once where you need the highest amount of planning and coordinating. You need a higher capital to start because you need to get a proper service team and an IT team to handle the website and the orders. And to deliver them you need to plan a delivery team. Counter top bakeries are the easiest, you need to find busy venue. Location is everything in the counter top bakeries, it is better if you can find a location near an office or school. Sit down bakeries are where you provide sitting space for the customers. Specialty bakeries are where you specialize in one type of item. Your capital needs and other business and marketing plans will be based on the type of bakery you want to open.
Write the business plan
This is the blueprints of your business; you need to write a proper business plan, including an explanation on your products, the target customers, and financial forecast. Business plan should be very convincing since you will need this to apply for any loan. If you are not very capable of doing this on your own, you can get a professional to help you do this. The document needs to be very accurate in terms of the product profiling.
Price the products
Once the starts up funds are sorted out, you need to calculate how much are the fixed costs and the variable costs, in order to accurately price your products. Usually the price should include the cost plus margins of the business. However if you are not very good at doing this you need to consult a management accountant to do the costing and the pricing for the baked goods. Product pricing is very important as all the bakes goods won’t be sold exactly so you need to account for that if you are running a counter top bakery or a sit down bakery. If it’s an online bakery this won’t be much of an issue since you are working per orders.