This article will take you through the process of starting your own wholesale bakery business. We will cover everything from initial planning and funding to marketing and sales strategies.
Here are ten steps you can take to build a wholesale bakery business.
Ten Steps to Launching a New Wholesale Bakery Business
1. Choose Your Type of Wholesale Bakery Business
The first step to launching a wholesale bakery business is to identify the type of business you want to launch. You might choose from the following types, among others:
- Product Bakery: These bakeries make and sell various baked goods to customers.
- Service Bakery: These bakeries provide baking services to customers, such as custom cakes or specialty breads.
- Online Bakery: These bakeries sell their baked goods online, through a website or other e-commerce platform.
2. Name Your Wholesale Bakery Business
Give your wholesale bakery business an identity, so people will consider it a well-known and respected brand. You can take the name of your wholesale bakery business from your industry, focus on a geographical location, or use your own name among other options.
The main goal of naming your wholesale bakery business is to make it sound appealing and trustworthy so customers will want to do business with you.
3. Determine Your Wholesale Bakery Business Model
There are several possible types of business models for a wholesale bakery, including:
- B2C: Business to Consumer
- B2B: Business to Business
- Subscription: Customers pay a monthly or yearly fee for access to your baked goods.
- Crowdfunding: You raise money from backers in exchange for rewards, such as baked goods.
No matter which model you choose, make sure that it aligns with your business goals and the products you offer.
4. Choose a Legal Form for Your Business
By incorporating your wholesale bakery business, 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 wholesale bakery will determine the taxes you pay and which state or federal tax forms you need to file.
Read our article comparing the most common wholesale bakery business structures.
5. Create a Wholesale Bakery Business Plan
All wholesale bakery 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 wholesale bakery business plan.
6. Apply for the Necessary Permits and Licenses
Before launching your wholesale bakery business, you may need to obtain the required licenses and permits.
For example, if you sell packaged goods, you will need to obtain a food license from your state’s department of agriculture. If you have a physical retail location, you will need to obtain a business license from your city or county.
It is important to research the specific licenses and permits required for your wholesale bakery business in your state and local municipality.
Read our article about obtaining the proper wholesale bakery business licenses.
7. Determine Your Budget & Apply for Funding as Needed
In developing your wholesale bakery business plan, you will figure out how much funding you need to start and grow your business.
If you have funds to invest in your wholesale bakery business, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your wholesale bakery business include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.
Read our article about the costs associated with starting a wholesale bakery business to help you determine if funding is needed.
8. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your wholesale bakery business, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access, and accounting software for tracking expenses and revenues.
You may also want to invest in software for managing a bakery business. Many great options available can help with tasks such as product management, order management, and customer relationship management.
9. Market Your Wholesale Bakery Business to Potential Customers
Before selling your products, 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 wholesale bakery 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. wholesale bakery businesses should consider the following promotional strategies for which you should start getting prepared:
- Develop a press kit including a press release and high-resolution photos of your products
- Attend trade shows related to the wholesale bakery industry
- Participate in local business events
- Engage in marketing tactics like handing out free samples or baking demonstrations
Read our article about how to market your wholesale bakery business 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 wholesale bakery business.
Read our article about how to effectively grow your wholesale bakery business to learn more.
Starting a Wholesale Bakery Business FAQs
Why Start a Wholesale Bakery Business?
The wholesale bakery industry is growing faster than the retail bakery industry. This is because people are busier than ever and don’t have time to bake their goods. As a result, there is an increasing demand for convenient, high-quality baked goods that can be purchased in bulk.
What is Needed to Start a Successful Wholesale Bakery Business?
To start a successful wholesale bakery business, you need a great product, the right technology and software, an efficient production process, and a promotional strategy to attract new customers.
How Can I Start a Wholesale Bakery Business From Home?
You can start a wholesale bakery business from home by getting the proper permits, establishing efficient production processes, and marketing your products to potential customers.
How Can I Start a Wholesale Bakery Business Online?
You can start a wholesale bakery business online by creating a website, promoting your products through social media, and networking with other businesses in the industry.
What are Some Tips for Starting a Wholesale Bakery Business?
Here are some tips for starting a successful wholesale bakery business:
- Find a niche market: When you’re first starting out, it’s important to focus on a specific niche market to stand out from the competition.
- Develop a strong branding strategy: Your brand is what will make you recognizable and memorable to potential customers.
- Create a detailed business plan: A business plan will help you map out the steps you need to take to start and grow your business.
- Invest in the right technology and software: There are specific tools and software that will help you run your wholesale bakery business more efficiently.
Where Can I Find a Simple Checklist for Starting a Wholesale Bakery Business?
A simple checklist to use when starting a wholesale bakery business is as follows:
- Choose Your Type of Wholesale Bakery: 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 Wholesale Bakery Business: 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 Wholesale Bakery Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write a Wholesale Bakery 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 Wholesale Bakery Business 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.
Summary
Starting a wholesale bakery business can be a rewarding and profitable endeavor, but it’s important to do your homework first. Ensure you clearly understand the steps involved, from finding the right location to obtaining the necessary permits and licenses. Invest in the right technology and software, and create a strong branding strategy. And finally, focus on marketing to the right potential customers. You can build a successful wholesale bakery business with careful planning and execution.