Tag Archives: Business Plan

How To Start A Bread Bakery Business

  1. Prepare a Business Plan

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    A business plan is not as scary as it sounds. Even if you don’t intend to source any capital from banks or investors, it is important that you organize your thoughts on paper. It doesn’t have to be complex or too elaborate, just something to keep your eyes on the big picture. The business plan will allow you to easily identify the obstacles and anything you may not have considered.
    Your business plan should consider the prevailing market price for the type of bread you want to produce and how much competition there is. You also need to estimate the profit you’re likely to make in the first, second and third years. Is it sustainable? Is it worth the time, effort and capital? It’s usually wise to keep 8-12 months working capital to adequately support a bread bakery business.

  1. You Should Know Enough About Bread

    Nobody says you must be a master baker to succeed in this business; you really don’t need to. However,  you need to know the basics and tricks of the trade if you want to survive in this business. Sign up for a bread baking course and learn the basics about measurements, recipes, flavours, packaging, branding and marketing. You should not give in to the temptation of thinking it’s enough to just hire a manager and have the bakery make you money. Your ignorance is likely to open you up to financial losses and eventual failure.

  1. Choose A Location That’s Close To Your Target Market

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    The types of bread in the African market appeal to different segments of consumers. You must ensure that the type of bread you intend to produce will find a sizeable market in your area. What kind of people live around you? Are they high, middle or low-income earners? Are they students, single people or households with families? Are they predominantly young or old people?
    If you live in a closely knit community like a residential estate or a university campus, it may be a great opportunity to run this business from your home kitchen.
    Look for newly established or developing suburbs and high traffic locations that have little competition. It’s also important to focus on areas that may not be well serviced, like industrial estates or high density office blocks where you can draw eager customers.

  1. Would You Need a Permit or License to Operate?

    Depending on your country and location, you may require a permit or license from a government establishment or Consumer Health office to operate a bakery. What are the requirements and standards for approval? Would you need to have specific equipment like fire safety tools? Is there a standard qualification you must obtain to be eligible for a permit? You must know these requirements in advance and take the necessary steps to ensure you get the approval you need to open your doors to the public.

  1. You Need to Use The Right Equipment

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    The size and quality of your equipment will depend on how much bread you intend to produce for the market and the amount of startup capital you have. It’s very important that you don’t spend too much on equipment at the beginning of this business. Look out for any good quality, pre-owned (second hand) bakery equipment you can find at a bargain price. The basic equipment you need  to start a bakery business include: an oven, mixer, dough moulds, dough divider, fermentation chamber (proofer) and maybe a bread slicer.

    Putting it all together…

    Because most people WILL eat bread most of the time, the bread business can be a very rewarding venture if entrepreneurs can find a large market with few competitors. With some creativity and higher quality, a new bakery can easily win consumers over from an established bakery. When properly planned and operated, bakeries can become a rich source of lasting income.

    If you believe this type of business will work for you, start working on a business plan and take action as soon as possible.

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5 Questions to Help You Choose the Best Business to Start in 2014

1. What is your level of preparedness?

The first key to finding the best business to start is you; and the reason is because building a successful business starts with you, the entrepreneur. Are you in the right mindset? Do you have what it takes to build a successful business?

I listed the entrepreneurial mindset here because it the fundamental key to starting, building and growing a business. The state of your mindset will determine how far you will go in the entrepreneurial process of building a business. Choosing the best business to start begins with you answering the following personal questions:

  • What is your risk bearing capacity?
  • Are you prepared to face business challenges?
  • Are you prepared to handle business failures?
  • What’s you perception towards making mistakes in business and life?

These are the type of questions you need to ask yourself before even deciding what business to start. These questions will reveal your mental preparedness for the entrepreneurial journey at hand.

2. How much Capital do you have?

The start-up capital you have access to, is another factor that will determine the best business for you to start. The best business opportunity for an entrepreneur with access to a $1,000 start-up capital will be quite different from that of an entrepreneur with a million dollars in start-up capital.

The best business to start for an entrepreneur with a $1,000 start-up capital may be an online niche store while the entrepreneur with the million dollar capital will feel that starting a gas distribution business or a manufacturing firm will be the best bet. So take note that your start-up capital is a predominant factor when deciding what business to start.

3. Who is on your Team?

The competence of the management team you have on board will determine the kind of business opportunity to pursue. If your business team has a track record of successes; then raising capital to pursue big projects will be a piece of cake. But if you are a solo entrepreneur, then your best business opportunity will be quite different.

4. How Strong is your Business Plan?

If you have the right plan, coupled with the right team and the right mindset; then you can pursue mega projects. But an entrepreneur who lacks the orientation of the use of a business plan will just bootstrapped his or her business on a shoestring budget. The extensiveness of both your personal and business plan will determine the kind of business opportunity you will pursue.

5. What Business idea do you have in mind?

Lastly, the best business to start varies from entrepreneur to entrepreneur based on the ideology of the entrepreneur and the prevailing circumstances. Your best business opportunity may differ from mine based on prevailing circumstances such as local trend, your passion, hobby, skill, geographical terrain, demographics, psychographics, demand, supply, economic policy, etc.

The best business to start for someone in Nigeria or China will differ from that of someone in United States, Canada or India. And most importantly, I listed the “business idea” last because it is the least important necessity to starting a business.

Remember, the world is filled with brilliant, million dollar ideas but the world lack savvy entrepreneurs. An average business idea with the right mindset, a strong business management team, and the right business plan will outperform an excellent million dollar idea with a poor mindset and a weak management team.

So when deciding what business to start, make sure you do your preliminary feasibility study. Also make sure that the right combinations are in place and when contemplating on the best business to start; be sure to take into consideration the five questions above and I will see you at the top.

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How To Write A Business Plan

Business Plan GuideNow that you understand why you need a business plan and you’ve spent some time doing your homework gathering the information you need to create one, it’s time to roll up your sleeves and get everything down on paper. The following pages will describe in detail the seven essential sections of a business plan: what you should include, what you shouldn’t include, how to work the numbers and additional resources you can turn to for help. With that in mind, jump right in.

Executive Summary

Within the overall outline of the business plan, the executive summary will follow the title page. The summary should tell the reader what you want. This is very important. All too often, what the business owner desires is buried on page eight. Clearly state what you’re asking for in the summary.

Business Description

The business description usually begins with a short description of the industry. When describing the industry, discuss the present outlook as well as future possibilities. You should also provide information on all the various markets within the industry, including any new products or developments that will benefit or adversely affect your business.

Market Strategies

Market strategies are the result of a meticulous market analysis. A market analysis forces the entrepreneur to become familiar with all aspects of the market so that the target market can be defined and the company can be positioned in order to garner its share of sales.

Competitive Analysis

The purpose of the competitive analysis is to determine the strengths and weaknesses of the competitors within your market, strategies that will provide you with a distinct advantage, the barriers that can be developed in order to prevent competition from entering your market, and any weaknesses that can be exploited within the product development cycle.

Design & Development Plan

The purpose of the design and development plan section is to provide investors with a description of the product’s design, chart its development within the context of production, marketing and the company itself, and create a development budget that will enable the company to reach its goals.

Operations & Management Plan

The operations and management plan is designed to describe just how the business functions on a continuing basis. The operations plan will highlight the logistics of the organization such as the various responsibilities of the management team, the tasks assigned to each division within the company, and capital and expense requirements related to the operations of the business.

Financial Factors

Financial data is always at the back of the business plan, but that doesn’t mean it’s any less important than up-front material such as the business concept and the management team.