Why Is a Bakery Shop A Good Business To Start

If you find yourself craving a sweet treat or just like creating them and trusting the process, a bakery might be a great business for you to start. But what are the advantages to starting your own bakery? 

A bakery is a good business to start if you want to follow your passion for baking, want to follow a simple business model, find a niche in your community that you can fill, want to work with your community, and want to sell items that people crave. A bakery is also a creative endeavor that you can start small.

What are the advantages to starting a bakery? Are there any disadvantages? What should you know before starting a bakery? Read on to find out more. 

You can follow your passion for baking.

Why Is a Bakery Shop A Good Business To Start.

One of the main draws of starting your own bakery is being able to follow your passion for baking—and sharing it with the rest of your community. If you love to bake and have your own secret recipes, or if you’re great at cake decorating, or just simply love to bake and need a reason to do it full time, starting a bakery is a great business for you. 

A bakery is a fairly simple business model. 

While no business is easy to start, a bakery has an easy set up and business model that you can follow that can be much easier than other types of businesses. If you’re looking to start a business and don’t know what you want to do, a bakery can be an easy decision to make. Through starting your own business is never easy, you can learn through this process how to open and run your new business. That being said, make sure you continue to use and create your business plan. Planning ahead will make your life and business run smoother, and it will help you blow past any possible issues you may face as you create your business. 

Six Must-Have Items To Sell In Your Bakery

You can fill a niche or need in your community. 

We’ve all seen those videos on social media of people making fantastically decorated cakes or cookies, and so can you. Have you found a need like that in your community and have the skills to do so? You can fill that need and make a profit, too. Utilizing social media posts can be just as fun as creating your items themselves, and you can join that niche in whatever they’re posting about. 

You can participate in your local economy and community. 

Because you’re looking to start a local small business, you can leverage that in your community. People love small businesses and they love to support them, so becoming one of them yourself is a great way not only to reach people in your community but also make money. What’s so great about making money locally? It can help spur your local economy—when the money stays local, it just continues to feed that growth. 

Theres no need to start a large businessa bakery can start small. 

Because you don’t need to take up too much space—at least a kitchen and a way to sell your items—you can start small. Whether it’s out of your home or in a smaller commercial space, you can use just the right amount of space—and therefore not have to spend too much money on space that you don’t need. 

Startup Cost for a Bakery. (Is it Expensive to Start a Bakery)

Creating a bakery is a creative endeavor. 
Why Is a Bakery Shop A Good Business To Start.

Whether you’re in it for the sweets or want to share your cookies with the world, no matter what, creating these items is a creative process. Not only can you be challenged on the day-to-day basis by creating new and exciting recipes, but you can challenge yourself on how to market your items to the public. How do you share your items online? What kind of photos do you take? All of these parts of your business are considered creative, and you too can broaden your horizons on what it means to be a baker. 

Bakeries sell goods that people want and crave.

When it comes to baking, everyone wants some sort of baked good product at some point. Whether it’s a cake for a birthday, a dozen cookies just for fun, or a gluten-free bread loaf to eat day to day, everyone eats baked goods. You can tap into that market through your own bakery. 

Are there disadvantages to starting a bakery?

Just like with any business, you can face certain disadvantages when starting your bakery. 

  • Hours are long and early. Expect to be baking in the early hours of the morning, and in many cases, you’ll be there late at night, as well to prep for the following morning. 
  • Running a small business can be stressful. Just like with any small business, all the decisions land on you. 
  • Costs can get expensive and can vary. Depending on inflation, inventory, and the state of the economy, you may be paying more and more for your supplies. 
  • Items spoil. You’re working in an industry of time, and baked goods can spoil if they’re not sold in a proper time frame. 
  • There are many regulations to follow. Because you’re working in the food industry, you may find yourself in a lot of red tape. 

Regardless of the challenges, just knowing these disadvantages can give you enough time to plan for them. Make sure you rely on others to help you through the stressful process. Create a budget that gives you enough wiggle room just in case. Work with local food kitchens or sell your day-olds on clearance to make sure your items don’t spoil. Use experts to make sure you have all the requirements filled for your business. These are all surmountable disadvantages that you can negate just by proper planning. 

Top 6 Best Selling Baked Goods in a Bakery

What do I need to know before starting my bakery?

Before you consider opening your doors of your bakery, there are certain things you need to know and check off your list. 

Why Is a Bakery Shop A Good Business To Start.
  • Create your business plan. You may not believe that you need one, but make sure that you plan your business from beginning to its future. 
  • Get some experience. Whether it’s working for a commercial bakery or just working for your local bake shop, it doesn’t matter. Get some experience working in a bakery before you consider starting your own. You’ll know what red flags to look for, what unexpected challenges may arise, and you can plan for them in your own business. 
  • Dont be afraid to ask for help. Whether it’s hiring an assistant to help you do all your planning or an accountant to do your books, you don’t need to be worried about asking someone for help. Everyone has different skill sets, and if you find yourself lacking in one, consider hiring on someone to do that work for you. 
  • Create a budget. While this may seem like a no-brainer for most, make sure you create a viable budget from the beginning. Find out the prices of your suppliers, determine how much other businesses are charging for the same items, and determine how much you need to spend to stay afloat. 
  • Stay organized. Whether you’re writing down your recipes or you’re saving your receipts, make sure you stay organized throughout the entire process. You don’t want to start your own business and then try to find information months or years later with nothing to show for it.
  • Be patient. Creating your own business takes time, and starting your own bakery is no exception. When you’ve made your decision to start your own bakery, make sure you have the time and patience to sit down and make the hard decisions. In the long run, you’ll benefit from taking your time. 

Why a Bakery is a Retail Type of Business

Frequently Asked Questions

What type of business is a bakery?

A bakery is considered a retail business, but there are many subtypes to a bakery as well. You can be a wholesaler bakery, where you sell to other bake shops, who then sell your items. You can also be considered a restaurant or in the food service industry, especially if you provide areas for your customers to sit and consume your items. 

How much money would it take to start a bakery?

When starting your own bakery, expect to pay $10,000 to $50,000 in start up costs. This allows for you to spend capital on your building space, permits and licenses, insurance, furniture and appliances, marketing, and a way to sell your items, along with inventory and staff. 

How can a small bakery compete with larger bakeries with more money?

It doesn’t just come down to what you’re making, but how you make it and what you stand for. Many customers search not just for quality products, but for quality businesses and people. They want to make relationships with those that they purchase from—stay focused on providing the highest quality items and customer service, along with giving back to your community. Larger scale bakeries don’t always do that, but as a small business, you can have the opportunity to do so. 

To learn more on how to start your own bakery business check out my startup documents here

This blog post is provided for informational purposes only. The information contained is not intended to constitute legal advice or to substitute for obtaining legal advice from a qualified attorney.