Thinking of opening your own bakery? If so, you’re on the right track: by 2030, the bakery products market should be a $289.9 billion industry.
At first glance, this seems like the perfect mix of business and pleasure. If you’re already baking for your family and friends, you’re aware of the power of your gift. So why not share it with others while making a buck off it?
Unfortunately, things are rarely that simple. Want to ensure this plan works? Read on for a list of the biggest mistakes when opening a bakery!
1. Ignoring Market Research
First things first: is there a demand for a bakery in your neighborhood? This will allow you to identify your target customers as well as their needs and preferences.
Market research also helps you study your competitors. For example, let’s say there are already two bakeries near you making a decent profit. How will you differentiate your business and offer something unique?
2. Using Low-Quality Ingredients
In any food business, having quality ingredients is essential. The same is true for owning a bakery. The taste and flavor of your baked goods is the main thing that will keep your customers coming back for more.
Let’s say you want to focus your efforts on making custom cakes. If so, you’ll need things like fresh fruit, real vanilla extracts, and premium chocolate. These ingredients have a huge impact on both taste and texture.
3. Not Hiring the Right Staff
Working in a bakery requires a specific skill set. Experience and qualifications matter, but don’t base your hiring decisions solely on them. You’ll also want your employees to have the right attitude and work ethic.
A cake decorator, for instance, must be able to collaborate with other team members. Your counter staff needs solid communication skills. If you want a successful bakery, take your time to hire the right people.
4. Underestimating the Costs
Opening a bakery takes more than having great recipes. You’ll need to pay for food costs, equipment costs, utilities, rent, and so on. You’ll also need the right insurance coverage, such as bakery insurance from PolicySweet.
Not sure if you can afford all these expenses? Take note of everything you’ll need and create a realistic budget. Don’t forget to include something on the side for unexpected costs like repairs and emergencies.
5. Disregarding Customer Feedback
Once you open a bakery, you might assume that most of your work is done. The truth is, this is only the beginning. If you want to keep your doors open, you must listen to customer feedback and make the right changes.
There are many ways to get feedback, from social media reviews to in-store surveys. The important part is making the effort to do it. The more you know about customers’ preferences, the easier it is to make informed decisions.
Avoid the Biggest Mistakes When Opening a Bakery
The bottom line: avoiding the biggest mistakes when opening a bakery is as simple as doing research and offering quality baked goods. Baking can be an exciting venture, but getting into it without a business plan is asking for trouble.
Interested in more advice on how to start a profitable business? Keep reading our Business section!
