How to Open a Bakery

According to a private research firm, baked goods and bakeries were in the top 10 of fastest-growing industries for small businesses in 2010. So, if you’re a skilled baker with entrepreneurial skills, opening a bakery may be a lucrative step. You’ll also need to understand how to plan a startup and effectively run a company in order to generate enough revenue to stay in business and make a living. Read the following steps to learn how to open a bakery.


  1. Decide what type of bakery you want to open.
    • There are bakeries that only sell baked goods, those that sell sandwiches and coffee to go or some that have a seating area where customers can eat breakfast or lunch.
    • Choose whether you want to sell conventional baked goods, organic baked goods, gluten-free baked goods, or vegan (e.g. egg and dairy-free) products.
  2. Research the competition in the area to find out if there’s a demand for the type of baked goods you want to sell. For example, if the local supermarket sells conventional, organic and vegan baked goods at reasonable prices, you might not be able to compete. But, you could open up a new market if you open a bakery with a pleasant seating area and offer specialty baked goods and fresh sandwiches.
  3. Draw up a business plan. Make sure you carefully calculate the costs of your location, equipment, supplies, staff, taxes and marketing. Balance them against your projected income to determine how much profit you’ll make over the first few years.
  4. Review your business plan with an accountant, who will probably find additional expenses you overlooked. An accountant will also tell you how the costs of a startup can affect your tax returns.
  5. Raise the necessary capital for opening a bakery. Ask your bank for a business loan or talk to private investors to raise the money.
  6. Register your business with your city and apply for a sales permit to sell baked goods.
  7. Choose the location for your bakery. Make sure it’s easily accessible, has plenty of traffic and meets all safety requirements.
  8. Buy your equipment and have it professionally installed to make sure everything is safe and up to code. You’ll need scales, bowls, pan racks, ovens, mixers, butcher block tables, display cases, and refrigerators.
  9. Decide which baked goods to sell at your bakery and determine which ingredients you need.
  10. Interview and hire employees. Make sure they are friendly, efficient and trustworthy.
  11. Call the local Consumer Health Services agency and have your bakery inspected for health safety.
  12. Buy all necessary ingredients for your baked goods, such as flour, yeast, eggs, sugar, raisins and butter.
  13. Prepare your baked goods. Make sure they look and taste as good as possible to draw in customers.
  14. Advertise your bakery in the local newspaper, on flyers and online.
  15. Open your bakery.



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