Bakery & Confectionary

Starting a bakery requires a mix of skills; you need to be an experienced baker and also an astute businessman, as success will require not only the skills to create attractive products but also the skills to run and grow the business with profit in mind. Location is absolutely key; baked goods are often bought at strategic intervals (breakfast, lunch). Despite the challenges, running a bakery can be very rewarding, and there is scope for regional expansion if you are successful.

Starting a bakery requires a mix of skills; you need to be an experienced baker and also an astute businessman, as success will require not only the skills to create attractive products but also the skills to run and grow the business with profit in mind. Location is absolutely key; baked goods are often bought at strategic intervals (breakfast, lunch). Despite the challenges, running a bakery can be very rewarding, and there is scope for regional expansion if you are successful.
Why start a bakery?

Bakeries are popular businesses because the sale of baked goods is not hugely affected by economic factors; products like bread will always be required, and in large quantities. They are also popular for first-time entrepreneurs because of the (comparatively) low start-up costs. It’s also easy to specialise – adding an additional service as a USP, such as wedding cakes – in order to bolster income and stand out from the crowd.
What types of bakery are there?

The most common type of bakery will offer a selection of fresh breads, along with savoury goods such as sausage rolls, and sweet goods like cakes and pastries. This wide product range helps create a substantial target market and increases the amount of business open to you. Some bakeries specialise in particular services, such as wedding cakes. These require more specialist equipment and skills, and can be costlier to make in terms of time and money, but if you can build up a reputation it’s a good way to supplement the day-to-day income of the bakery. Deciding on what services you want to provide is a key issue when considering starting a bakery.
What skills will I need?

Starting a bakery requires general business skills and the ability to bake. The former includes such things as managing profit and loss, keeping on top of the books, negotiating with suppliers and understanding cash flow. Your ability to bake is key because, in the early stages when things are tough, you need to be able to manage the shop yourself. If you have to hire a baker/manager, your costs will skyrocket while revenues will remain the same. Baking skills also allow you to understand the market more effectively, build stronger relationships with your clients, and innovate.