In many countries, private bakeries are associated with a certain lifestyle, without which there is no confidence in future. Despite the fact there are hundreds of producers selling various croissants and buns in unlimited quantities in the supermarkets, people want to receive a good mood together with their baking. That’s why they tend to make orders in private bakeries.
Worldwide examples of successful bakeries
There are many manufacturers who succeeded on a bakery market. Hammerl is one of them. The history of this brand starts in 1862, when the founders opened a small bakery in the village of Hards. This business passes from generation to generation and nowadays you can find this brand in every major Austrian city.
Bridor, a French bakery in Rennes, is the main supplier to many supermarkets across Europe. Being a schoolgirl, Louis Le Duff dreamed to put her culinary creativity into practice. After ten years on the market, the small business turned into a large factory and today the products of this brand can be bought even in the United States. Presently, the brand develops the bio-organic business, since this trend is very actual in the current market conditions.
Bellsolà is a Spanish bakery, which began to work since the end of the twentieth century. Today, the automated lines produce bread, although once it used to be an ordinary bakery.
How to open your own bakery
Starting a new business, you should take into account the first and most important rule: a rule of market saturation. Count the number of bakeries in your area and think whether you can offer people something better. You can’t enter a big market opening a large bakery plant because this market segment is saturated. Noname bread brands are present in many countries in the world. In order to win a client, the path to a successful bakery business starts from the very bottom, i.e. a small private business.
What do you need to launch business?
We will not tell you how much the rent of premises costs. In different cities and countries, renting premises for production varies from $6000 per year. We will not indicate the maximum price too. The main thing you need to understand is that the higher the rent price, the more you have to sell. The one who owns the property or pays a small rent usually wins the competition.
Professional equipment for small businesses costs from 10 to 20 thousand dollars. This is a one-time expense that is transferred to the cost of finished products during five years.
The average business profitability is defined at 10-30%, depending on the amount of the company’s cost of rent. The bigger the cost, the more you need to produce and sell, which is even more important. If you pay 60 000 dollars per year for premises, then be ready to sell one product every minute. If you are not ready for such pace of sales, better look for the cheaper premises.
An alternative option is a private bakery in a grocery store. In this case, the bakery will sell products under the store’s brand name, enjoying a guaranteed flow of customers.
How to prepare a business plan for a bakery in Excel
You can download a ready example of a bakery business plan in Excel at our website. This is a free example of how to open a bakery, financing the costs at the expense of a loan. The business plan allows you predict your own cash flows for five years and describes the planned costs associated with the bakery performance.
It should be understood that the greater the production volume, the more employees should work. You can’t pay low wages to your employees, because it is the quality of the product that allows it to be sold. Employees must be well motivated. The marketing costs of such business are related to branding and include the manufacturing of a special packaging and the use of disposable packaging with logo. Consider also a creation of a website where one can order a product in advance or find useful information about it.