What do you need to start a bakery?

Things to know while starting a bakery

bakerywhy start a bakery

Starting a bakery is the dream. When you are passionate about baking, eating, and feeding people around you then follow your dream. Then start taking the action plan to make it a reality, by turning your passion for baking into business. 

Will you be needing a Culinary degree or a bachelor’s degree to own a bakery business? I guess NO. But having hands-on academic experience in both baking and business management will be a plus point for success. 

Bakery businesses should be having a variety of options for their consumers to choose from. Let us start with a low budget and kick-start the business with a wide range of ideas. But thorough research should be done. With proper planning and research a successful business can be taken care of. 

Let us start from the beginning. First, let us have an idea and create a business plan for the bakery, which should include the budget distribution, planning the development, and streamlining the operations. 

Writing down the business plan:

Every business plan should be having a structured business plan which helps you in keeping track of the checklist:

Secure funding: If the business will be needing funds from banks, investors, or lenders you will be needing a traditional business plan that gives a rough idea of the financial hook. 

Evaluate the idea: Even though people love bakery products, you need to know your business model closely, choosing the location, knowing the competitors, and having a target audience will help you to have track of your business.

To-do list: Write down all the actionable to-do list business plans which have the complete outlook of the business and work like a blueprint to make sure nothing is missing from the list.

Blueprint for a successful business: It helps you to outline all the plans that have been planned for how to run the business or what must be done to set up the business. 

How to start a bakery business:

  1. Business Overview: It should include the services you will be providing and the concept of the bakery business which should include the layout you are located in, and the services provided. 

  2. Bakery Business Plan Summary: a review of the bakery business's legal structure and Ownership, if it is an existing bakery then a brief history and accomplishments of it and the plans you have for the bakery business.

  3. Financial Analysis: It should include the cash flow of the bakery and profits and loss including, the operating costs, and recurring expenses. It will help to maintain the records of the bakery.

  4. SWOT Analysis: this will help you to have a record of the weakness and strengths of the bakery. And will help you to have an idea of opportunities and threats for the business in the future.

  5. Marketing Plan: It is an important factor in the business plan. It should talk about the customers' happiness and help you to attract more customers and build an image for the bakery. 

  6. Industry Analysis: It is an important factor before opening the bakery business. It will help you to understand your competitors and analyse the target audience. And it will help you to choose the right location for your bakery.

  7. Location: Choosing a location for your bakery business is one of the first and most important steps we should consider. Choosing the ideal location for your bakery should be the priority. Choosing the locations where there are colleges, offices, or malls. Ideally, it should be located on the ground floor so that it attracts the customer's attention and is visible to many people. Making sure that it has enough space and ventilation. And it would be a great idea if the kitchen is on level one and which can be divided into two floors, to construct a functioning kitchen and serving area at the another. But it depends on the space availability and the expenditure charges.

  8. Licenses: Get all the licenses required to open a bakery in India: The bakery business needs five licenses and those are the FSSAI license, GST Registration, local Municipal, Corporation Health License, Police Eating House License, and Fire License. 

  9. Manpower: To run the bakery functionally the need for manpower is important. It includes both hospitality and presentation of the bakery items. For a good high-end bakery, you need a Head chef, Chef De Parties, Commi level, and helpers to maintain the place's hygiene.

  10. Installing a POS and Billing Software: The software to have for a bakery or any other restaurant business. Make sure the system has features to manage the shelf life of the baked items, and robust inventory management as we have to handle perishable items.

  11. Register for taxes and obtain an EIN: All businesses will be different when it comes to tax, licensing, and employer requirements. Knowing about these things will help with time-saving mistakes and avoid costs.

  12. Decide on your Menu: Always have a unique menu with different options for the customers to choose from and varieties and fusions of different flavors. Follow the trend and customize the menu.

  13. Choose a business entity: Deciding the business entity is one of the first steps a bakery business should think of. For keeping a record of taxes and starting a business having a good entity will help you keep a record of the business.

           The different business entities structure are:

    • Limited liability partnership: Refers to the business structure's whereabouts and business are separate entities, which says that you are not liable for its debts or if sued.

    • Sole proprietorship: Don’t have to register a sole proprietorship business with your state. But still, you can take responsibility for the business because you and the entity business are one. 

    • General partnership: Works like an individual but for two or more people starting the business.

    • Limited liability company: Has the simplest tax structure of an individual proprietorship and forming an LLC provides limited liability protection.

  1. Host a grand opening: Host a grand opening and welcome your customers to the business. A successful opening of the bakery will take the bakery off to a new start and have loyal customers. Giving away special offers and discounts will be a good note of start.


The business plan made for the bakery business will help and work successfully in the future. Just don't rush things and the process; take it slow and steady. It will present unique opportunities and challenges from the start. Having a detailed business plan will help, following it perfectly and keeping the documents organized will help to get off to a good start.


Can I start a bakery business without experience?

Yes, we can open but it would be good to have someone to guide you and explain how to run the business

Which are the best locations to open a bakery?

The best location to run the business would be near bus stations, college areas, and workplaces. 

What are the types of equipment needed to start a bakery?

There are a few pieces of equipment that are very important to start a bakery they are ovens, microwaves and convection ovens, refrigerators, sinks, and dishwashers.

What are the skills required to open a bakery?

There are a few skills that should one should be having before starting a bakery that will be helpful those are business mind, handling accounts and financial matters, how to bake, and getting ideas to the room, being sportive.

What will be the minimum cost for starting a small bakery business?

It completely depends on every individual, the size of the business, the location, the products they want to sell, etc.

What is the manpower required to open a bakery?

It depends on the size of the bakery for baking they will be needing a chef for bread making, cakes, and bakery items. Few people to maintain the cafe, someone at the cash counter, and service people, Around 10 - 15 people will be needed to run a good functioning bakery.

Some innovative ideas for decorating the bakery.

There are many ideas right now in the market. We have many ideas rolling around us with all kinds of themes based on bakery or cozy bakery with outstanding ambiance and furniture. Making a homely environment or a Greece-based theme. Esthetics furniture and paintings, green will never be off the table.

Ideas for buying unique and stylish furniture for the bakery business.

There are a number of options available for selecting furniture in the market. The aesthetic designs, the most fashionable and comfortable sofas, customized chairs, and rustic furniture, stylish tables, and table covers, beautiful mirrors.

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