Starting a Bakery Business

April 15, 2006 by Leo   18,355 Views

One of the beauties of a home bakery is that you don’t need a heck of a lot of equipment to get you started. Just a stove, a few pans, some ingredients and that “special” recipe. If you want to get a little fancier, you’ll find a timer (to keep you from over or under cooking an oven full of goodies on those busy days when you’re preoccupied with more than you can remember) well worth its small investment.

Think Clean, Think Quality

When you operate a family-sized home business, you quickly realize that there’s no one to pass the buck to when you goof something up. You-or your family-alone are responsible for any slipshod work and, if you expect your enterprise to grow and thrive, you’re well advised to set high standards for yourself and to constantly make every effort you can to exceed them.

For example: If you, as we do, shell the nuts which go into your baked goods make double danged sure that you do the job with utmost care. People are finicky-and rightfully so-about the food they eat and, especially in today’s hard times, they want value for their money. Even one strand of hair, passed over and left in one of your pies or loaves of bread, could be enough to turn off your best customer.

Another example: Don’t be too cheap to invest a few pesos in giving your products a quality image. Plastic bags and even cake boxes can be purchased from paper wholesalers very cheaply. The cost, in short, is hardly anything at all compared to the atmosphere of care and the “guarantee” of cleanliness that such packaging adds to your goods.

Pricing Your Products

If your baked goods are really above average, don’t underestimate them. We’ve found (to our pleasant surprise), that the individual or family with something tasty to offer has no trouble commanding a fair price for his, her, or their products. There’s so much prepackaged and machine-made food on the market these days that genuinely mouthwatering goods are welcomed with open arms. If what you have to sell is really in demand, don’t be afraid to ask a premium price for it.

The problem with most bakery owners today is the frequent rising of raw materials since the main ingredient of bread, the flour, is imported. To offset the extra cost, it is better to reduce the size of the products rather than increase the price.

Work for More than Money

You cannot get rich instantly in the bakery business. But then, you don’t have to stop it when it’s coming. Be quite content for while as long as your little home enterprise guarantees your day-to-day survival, keeps you relatively independent of being your own boss, and leaves you free to pursue other interests.

Note: This is an edited article, the original source can be found here.

Estimated Investments

Machinery and Equipment: P150,000
Pre-operating expenses : P50,000

Basic Baking Equipments and Supplies

  • Oven
  • Tray
  • Slide bread roller
  • Bread cutter
  • Mixer
  • Sealer
  • Display cabinet
  • Bakery supplies (flour, sugar, oil, etc.)
  • Refrigerator

If you are in a tight budget, you can check for second hand baking equipment at buyandsell ads.

Some Marketing Tips: (taken from entrepreneur forums)
from harry_potter, chinito and brice

  • Try to reach out to the market oustside your area.
  • Account all of the expenses thoroughly.
  • Try to make some experiments. The bakery business is somehow dynamic that people want to taste other types of bread.
  • If possible, consign your products to other stores, “potpot” boys or other maglalako.
  • Reach out for the customers (for regular and potential customers) like making deliveries in the morning, making some posters or flyers of your bakeshop, magbahay bahay to offer you products this is is what you call information dissemination because of course who would buy in your bakeshop if the customers does not know your place or you exist.
  • Would be very particular of the quality of your products because a good product speaks for itself. The quality of your product will help you gain more customers thru words of mouth.
  • Know my competitors products, strongpoints and weakpoints
  • Market Penetration – prioritize all the customer around your area, they will be your based customer.
  • Sales Clerk – get your family involved with the business instead of hiring people. Save the payroll for something more important.
  • Come up with a specialty bread that only you are baking
  • Don’t always depend on your baker – study new techniques, try something different, something new.

More advice from Reyna Elena

Training and Seminars:

Baking Lessons, Research & Development ( including Product Testing), Made-to-order Cakes
ESF Cakes & Bread House
LS Bldg. 1767 Honradez St. cor. Miguelin St.,
Sampaloc, Manila
Tel. No.: 743-4262

Commercial Breadmaking and Bakery Management (30hrs/4days) 4,169

Directory of Food and Bakery Equipment Distributors and Dealers (Metro Manila)


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Comments

23 Responses to “Starting a Bakery Business”
  1. tellene says:

    . what problems are you facing when you startes to put up your bakery shop

  2. Jerwin says:

    Hi shadow.

    pede mo rin ba ako bigyan ng pricelist mo? eto po ang email add ko. jerwinolarte@yahoo.com

    thanks.

  3. liza matias says:

    I am interested to attend training on commercial baking. I am now serious to make it into business than hobby. I have attended 2 trainings but when I do it at home, I can’t make a good dough. Will TLRC training be easily rolledout into commercial use?

  4. lai says:

    Good Day! just want to know kung sino ang pwede mag supply ng “silicon moulds Fan shape for chocolate decor and rectangular Mousse cake moulds”?

    kindly email me at lailie_07@yahoo.com
    thanks..

  5. Alice-Bakery Machines Supplier says:

    We are Jinan Yart Foodstuff Machinery Co.,Ltd., which is one of the dynamic and professional manufacturers of bakery equipments of China. Our Bakery Machines includes: Spiral Mixers , Dough Sheeters, Rotary Rack Ovens, Electric Deck Ovens, Proffer, Toast Slicer, Toast Moulder, Bakeware, Racks, Water Chiller, Planetary Mixers, Fresh Milk Mixers, Semi-automatical Dough Divider and Rounder, Built-in Oven, Meat Slicer and so on.
    We have been exporting to many countries. Also we have won great reputation among customers both at home and abroad with high quality and full service.

    Sincerely hope we can establish long-term business relations! Please feel free to contact me via the MSN and Emails if you have any interest of our food processing machines. We will send you the quotation and detail information on your request.
    Your kind reply and comments are warm appreciated!
    Best Regards.

    Contact: Ms Alice

    Jinan Yart Foodstuff Machinery Co.,Ltd.

    MSN: popalice@msn.com
    Yahoo:popalice@yahoo.cn
    Skype:nalanxinzhi
    Email:popalice@gmail.com
    popalice@163.com

  6. We are Jinan Yart Foodstuff Machinery Co.,Ltd., which is one of the dynamic and professional manufacturers of bakery equipments of China. Our Bakery Machines includes: Spiral Mixers , Dough Sheeters, Rotary Rack Ovens, Electric Deck Ovens, Proffer, Toast Slicer, Toast Moulder, Bakeware, Racks, Water Chiller, Planetary Mixers, Fresh Milk Mixers, Semi-automatical Dough Divider and Rounder, Built-in Oven, Meat Slicer and so on.
    We have been exporting to many countries. Also we have won great reputation among customers both at home and abroad with high quality and full service.

    Sincerely hope we can establish long-term business relations! Please feel free to contact me via the MSN and Emails if you have any interest of our food processing machines. We will send you the quotation and detail information on your request.
    Your kind reply and comments are warm appreciated!
    Best Regards.

    Contact: Ms Alice

    Jinan Yart Foodstuff Machinery Co.,Ltd.

    MSN: popalice@msn.com
    Yahoo:popalice@yahoo.cn
    Skype:nalanxinzhi
    Email:popalice@gmail.com
    popalice@163.com

  7. Dear Friends,
    We are Jinan Yart Foodstuff Machinery Co.,Ltd., which is one of the dynamic and professional manufacturers of bakery equipments of China. Our Bakery Machines includes: Spiral Mixers , Dough Sheeters, Rotary Rack Ovens, Electric Deck Ovens, Proffer, Toast Slicer, Toast Moulder, Bakeware, Racks, Water Chiller, Planetary Mixers, Fresh Milk Mixers, Semi-automatical Dough Divider and Rounder, Built-in Oven, Meat Slicer and so on.
    We have been exporting to many countries. Also we have won great reputation among customers both at home and abroad with high quality and full service.

    Sincerely hope we can establish long-term business relations! Please feel free to contact me via the MSN and Emails if you have any interest of our food processing machines. We will send you the quotation and detail information on your request.
    Your kind reply and comments are warm appreciated!
    Best Regards.

    Contact: Ms Alice

    Jinan Yart Foodstuff Machinery Co.,Ltd.

    MSN: popalice@msn.com
    Yahoo:popalice@yahoo.cn
    Skype:nalanxinzhi
    Email:popalice@gmail.com
    popalice@163.com
    Add.: NO.678 Beiyuan Street Tianqiao Area,Jinan City,Shandong Province,China
    Tel:0086-531-82369378
    Fax:0086-531-82369378
    Mobile:86-13188871811
    Web: http://www.yart.com.cn/

  8. shyle says:

    to all suppliers!
    Please send in my email address the price lists of your products (baking ingredients and Materials). i need it as soon as possible. ty..

  9. rico says:

    kc and jona,

    I can help for your supply of bakery products, just call 655-51-24 and 657-9326. we are the supplier of bakery products and we are given free recipe collection for your cakes or pastries and other ingredients for you to use to start a business.

  10. jona says:

    im looking for supplier of bakery supplies. just email me

  11. kc says:

    leo,
    thanks for the website you’ve given!

    hey, i’m also particular about the flour, sugar,etc that will be used for starting up a home based business of pastries and cakes . anyone who could recommend a supplier? thankS!

  12. Leo says:

    @kc, the best source of bargain bakery equipments is on buy&sell mags. you can also try checking online on buyandsell.com.ph or sulit.com.ph

  13. kc says:

    hi! i’m looking for a supplier of bakery supplies..can i ask for a price list or website,contact numbers?..thanks so much!!!it would be a big help!@

    caseycan_22@yahoo.com

  14. honey says:

    shadow,

    pahingi din ako ng price list ng sugar and flour.
    pki send po sa honey_lagarde@yahoo.com.
    salamat!!!

  15. Leo says:

    Anonymous Says: 4/18/2006 02:30:00 PM

    I ran into this website http://www.karitela.com and it’s really interesting how they met and started a business. Yeap, bakery business. Can you imagine if we pull off one business together? If they can do it, why not us?

    Reyna Elena
    http://www.ofwcenter.com

    Eu-Leh Says: 4/18/2006 05:24:00 PM

    This post has been removed by a blog administrator.

    Eu-Leh Says: 4/18/2006 05:26:00 PM

    bakery is in my wishlist business, coupled with a grocery store on the side. hopefully soon.

    Anonymous Says: 7/14/2006 06:09:00 PM

    parang ang dami ko matutuhan here thx…

    Anonymous Says: 7/14/2006 06:10:00 PM

    im hoping to read more tips in dis site tnx

    shadow Says: 12/13/2006 06:59:00 AM

    Hi! gusto ko lng mag pa alam kung pedeng mag advertise kasi po dealer kami ng flour and sugar. Pero kung hindi po pede ok lng nag papa alam lng po.

    Eu-Leh Says: 12/13/2006 06:03:00 PM

    no problem shadow, sige advertise ka lang.

    Anonymous Says: 1/16/2007 04:14:00 PM

    hi shadow
    we have bakery business and we’re looking for other dealer of our needed ingredients. could you send me your price list and brand of your flour and sugr and other ingredients?

    pls reply to this email: voyettt@yahoo.com
    boyetski@yahoo.com.ph

    Mike Says: 7/05/2007 09:49:00 PM

    hi! shadow,
    bigyan mo ako ng mga pricelist at kung may website ka.interesado ako sa sugar at flour na benebenta mo,i’m planning to put a bakery business.kailangan ko ng mga supplier
    ofw ako sa libya taga bulacan ako. at ngayon nakaready na ang mga kakailangin ko.so please email me at
    mykejasan0629@gmail.com

    thank you very much

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