There are few things more gratifying than owning a bakery and cafe. The ability to wake up each day and create delicious pastries and coffees for people to enjoy is a true passion for many.
However, turning your passion into a successful business venture isn’t always easy. There are many essential factors to consider when opening a new bakery and café, from the initial planning stages to the day-to-day operations.
Ten Steps to Launching a New Bakery and Cafe
1. Choose Your Type of Bakery and Cafe
The first step in launching a bakery and cafe is to identify the type of business you want to launch. You might choose from the following types among others:
- Specialty bakery: These bakeries focus on perfecting one or two types of baked goods, like artisan breads or cakes.
- Online bakery: An online bakery sells its wares exclusively online, shipping them to customers all over the country.
- Cupcake shop: As the name suggests, these bakeries specialize in cupcakes.
2. Name Your Bakery and Cafe
Give your bakery and cafe an identity so people will think of it as a well-known and respected brand. You can take the name of your bakery and cafe from your industry, focus on a geographical location, or use your own name among other options.
The main goal for naming your bakery and cafe is to make it sound appealing and trustworthy so customers will be more likely to visit your business.
Read our article about choosing the right business name.
3. Determine Your Bakery and Cafe Business Model
There are several possible types of business models for a bakery and cafe including:
- Retail: Customers come to your bakery and cafe to purchase baked goods.
- Wholesale: You sell baked goods to other businesses like restaurants or grocery stores.
- Online: Customers order your baked goods online, and you ship them to them.
No matter which model you choose, ensure that it aligns with your business goals and the products you offer.
4. Choose a Legal Form for Your Bakery and Cafe
By incorporating your bakery and cafe, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.
The business structure you choose for your bakery and cafe business will determine the taxes you pay and which state or federal tax forms you need to file.
Read our article comparing the most common bakery and cafe business structures.
5. Write a Bakery and Cafe Business Plan
All bakery and cafe owners should develop a business plan.
A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team.
Read our article about how to write a bakery and cafe business plan.
6. Apply for the Necessary Permits and Licenses
There may be required licenses and permits you need to obtain before launching your bakery and cafe.
For example, all food businesses in the United States must comply with the Food and Drug Administration’s (FDA) food safety regulations These regulations cover everything from food labeling to storage and transportation.
You must also register your bakery and cafe business as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.
Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.
Read our article about obtaining the proper bakery and cafe business licenses.
7. Determine Your Budget & Apply for Funding as Needed
In developing your bakery and cafe business plan, you will figure out how much funding you need to start and grow your business.
If you have personal funds to invest in your bakery and cafe, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your bakery and cafe include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.
Read our article about the costs associated with starting a bakery and cafe to help you determine if funding is needed.
8. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your bakery and cafe, it’s essential to have the right technology in place to maximize efficiency. You need a computer with Internet access, and accounting software for tracking expenses and revenues.
You may also want to invest in a point-of-sale (POS) system, which will streamline the process of taking customer orders and payments. There are many different types of POS systems available, so do some research to find one that would be a good fit for your business.
9. Market Your Bakery and Cafe to Potential Customers
Before selling your goods, you must let the world know you exist. The first step is to create a website so people can learn more about your products and how they benefit them.
After you launch your website, start promoting it through social media channels like Facebook, LinkedIn and Twitter. Also consider networking with other people in the bakery and cafe industry through social media and blogs so they can help share your business.
You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Bakery and cafes should consider the following promotional strategies for which you should start getting prepared:
- Banners and billboards
- Catalogs
- Coupons
- Direct Mail
- Event Marketing
- Postcards
- Radio ads/TV ads/Infomercials
Read our article about how to market your bakery and cafe for more tips.
10. Get New Customers & Grow Your Business
When you promote your products, you’ll start to get interest from potential customers.
Make sure you’re ready to serve these customers. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your bakery and cafe.
Read our article about how to effectively grow your bakery and cafe to learn more.
Starting a Bakery and Cafe FAQs
Why Start a Bakery and Cafe?
There are many reasons to start a bakery and cafe. The most common reasons include the following:
- You have a passion for baking/cooking and enjoy being in the kitchen.
- You want to be your own boss and control your own destiny.
- You want to create a legacy that you can pass down to future generations.
What is Needed to Start a Successful Bakery and Cafe?
To start a successful bakery and cafe, you need the following:
- A great location
- The right equipment
- The perfect recipes
- The perfect marketing strategy
- The right people to help you grow your business
How Can I Start a Bakery and Cafe From Home?
You can start a bakery and cafe from home by following these steps:
- Get the right equipment.
- Find the perfect recipes.
- Promote your business through social media channels and online directories.
- Get new customers and grow your business.
How Can I Start a Bakery and Cafe Online?
You can start a bakery and cafe online by following these steps:
- Get the right equipment.
- Find the perfect recipes.
- Create a website to promote your products.
- Use social media channels to promote your business.
- Get new customers and grow your business.
What are Some Tips for Starting a Bakery and Cafe?
Here are some tips for starting a bakery and cafe:
- Find the perfect location.
- Get the right equipment.
- Find the perfect recipes.
- Promote your business through social media channels and online directories.
- Get new customers and grow your business.
Where Can I Find a Simple Checklist for Starting a Bakery and Cafe?
A simple checklist to use when starting a bakery and cafe is as follows:
- Choose Your Type of Bakery and Cafe: This should be based on what you are best at and how much experience you have. Remember to always keep your interests, skills, and experience in mind.
- Name Your Bakery and Cafe: This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
- Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
- Determine Your Bakery and Cafe Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write a Bakery and Cafe Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow.
- Apply for the Necessary Permits and Licenses: In most locations you will be required to apply for a business license and/or permits before you can begin operations.
- Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
- Get the Technology & Software Needed to Run Your Business Efficiently: You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
- Market Your Bakery and Cafe to Potential Customers: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the products they truly need.
- Get Customers & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your products.
Open a Successful Cafe and Bakery
Opening a bakery and cafe can be a great way to use your baking skills to generate income. The first step is to get the right equipment and perfect recipes. You should then promote your business through social media channels and online directories.
Finally, get new customers and grow your business. Remember to always keep your interests, skills, and experience in mind while following these tips to help you succeed.