Ultimate Guide to Start a Bakery Business & Run It Profitably

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Do you want to start a bakery business in India? Then you must read this article as we are going to discuss many things about bakery business that can help you start a bakery business in India and run it profitably. So let’s discuss in detail how you can start a bakery business.

Food businesses are one of the most profitable kinds of businesses. Baked products such as cakes, cookies, etc have a good demand among the people due to their deliciousness. The importance of bakery products such as cakes has grown to the extent that they have become an integral part of the celebration of almost every kind.

So starting a bakery business is a good idea. If you are a skilled baker you can start your own bakery business anytime with a good investment. But to run it profitably you must create your own bakery business plan. Just as every business you need to have a proper marketing strategy in place so that your bakery makes

Choosing the Type of Bakery Business:

Before you think of a marketing strategy you need to choose the type of bakery you want to start whether a wholesale bakery business or a retail bakery business. Wholesale Bakery Business requires you to have a lot of investment as you need to invest a lot in various kinds of bulk baking equipment and staff. Moreover, you need to have a lot of experience in baking because you need to co-ordinate many bakers.

Starting a retail bakery business is easy as you would need low capital to invest and not much experience needed as in the case of the wholesale bakery business. So the following are some of the kinds of retail bakeries you can start.

1. Home Bakeries:

This is the best way to get started with the bakery business especially when you want to test the profitability in a particular location. You can test what bakery products have good sales among the people living in that area so that you can estimate your profits. Moreover, you don’t need to have much investment.

So this could be a possible option to test and then convert this into a big business by investing in equipment etc based on the demand for the bakery products in that area.

2. Specialty Bakeries:

Specialty Bakeries don’t offer many kinds of baked goods to their customers. They usually accept orders only on specific baked goods for a period of time and deliver them to their customers.

For example, cakes are made in many bakeries that offer other baked items as well. But in the case of specialty bakeries, they usually make only wedding cakes or personalized cakes which make them unique as they are specialized for such cakes.

Moreover, the baked products offered by the specialty bakeries are much better compared to the ones ordered from normal bakeries both in taste and design. So people prefer to order from this kind of bakeries rather than the regular ones even though it may cost them a higher price. Not just cakes but also specialize bakeries can offer special pastries, cookies, etc as well.

3. Bakery Cafe:

Starting a bakery cafe requires having a good amount of space to have dining tables and chairs. Generally, these offer various beverages like tea or coffee and soft drinks along with baked products such as cakes, cookies, etc in their menu.

These can generate much revenue because of the fact that you can upsell many things as people can peacefully sit and eat. The only constraint with the bakery cafe is to find a perfect location with a good amount of space that can attract many people to come inside the bakery cafe.

4. Online Bakeries:

Online Bakeries have become a trending type of bakery business. You just need to start a website with the images of all the products that you offer along with a payment gateway integrated into the website to collect the payments online. Later you just need to bake the product and deliver it to the customer.

This way you can reduce your costs on paying huge rents for space in a good location and have your kitchen at any place where the rent is minimum.

Now you just need to choose the kind of bakery business that would suit you based on your skillset, money you can invest, etc. Once you are done with selecting the type of bakery you need to create a bakery business plan by taking various factors into consideration before you start your bakery business.

Bakery Business Plan in India:

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To make a business plan for your bakery business, you must check and decide about various factors that can help you run the bakery business successfully. Let’s discuss some of the factors that you need to consider while making a plan.

Factors to Consider:

1. Location:

You need to select the space smartly for the bakery business to run it successfully. Check if there are any competitors nearby and see the number of people buying from them. You also need to figure out whether the market is too saturated with many bakery businesses or a particular competitor is so strong attracting the entire people there.

Choosing the right location can definitely increase your revenue and profits so that you can get back the initial investment made to start the bakery. Especially if you are planning to start a bakery cafe then you must check whether you can get enough space for having the dining area for your customers apart from the space required for your baking.

2. Equipment Needed to Start a Bakery:

Every bakery needs to have good technology equipment so that you can bake the products faster and serve them to your customers easily. Moreover, the equipment required will depend on the type of products that you going to sell in your bakery as baking different products require you to use different baking tools.

You need to select all such equipment required ahead and get the estimated costs for them so that would be helpful in estimating the capital required to start the bakery business.

3. Staff Required:

Depending on the type of bakery, you need to hire the specifically skilled professionals along with a few others who have experience baking. To make your bakery fully operational you would definitely need people for both baking and other activities such as receiving orders, washing the dishes, etc.

Moreover, it helps you identify the amount of money required to pay their salaries so that you can calculate how much revenue you must generate to become profitable.

4. Licenses:

Every food business must have to obtain all the licenses required and ensure always that they are present in the bakery. Depending on the location you might need to get different kinds of permissions so you must check what are the licenses required in your locality to start a bakery business. Licenses cost you a good amount of money to invest and you must get them.

5. Investment:

To start a bakery business, based on the amount of money required for various things such as rent for the space, baking equipment, salaries of staff, costs of licenses, etc you must estimate the minimum amount of initial investment required.

If you have low capital to invest then either gets a loan for your business or else partner with few other bakers so that you can get started with the bakery business.

6. Business Plan:

After taking all the above factors into consideration you must create a business plan estimating your monthly costs and revenue goals to gain profits from the bakery business. Also, you need to plan your marketing strategy based on the kind of bakery you are going to start. Let’s discuss in detail about the marketing strategy for the bakery business.

7. Marketing Strategy for Bakery Business:

Depending on the customer base of your business you need to plan who is your probable customer and the best methods to reach out to those people for receiving orders for your bakery. Also, you need to check the competitor’s pricing strategies which are working for them.

Advertising about the business is also a good method to attract more customers.

Importance of Advertising:

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 Advertising helps you reach many people so that you can build brand awareness and get more customers. Not just traditional advertisements but also you must advertise about your business on various digital platforms such as social media, YouTube, etc

This is a digital world where people spend most of their time online so you must maintain your presence on social media platforms to communicate better with your audience. Digital Marketing Services such as Instagram marketing, facebook marketing can be highly helpful to drive sales from digital platforms.

Thinking whether Bakery Business Would Be Profitable or Not?

Yes, it is profitable in 2020 with the right marketing strategy and setting realistic revenue goals for your bakery business. You just need to plan and estimate all the financial aspects ahead so that you can get profits from your bakery business.

How a Bakery Course from Chef IBCA can help you start a bakery business?

Remember to make your bakery business attract more customers you must bake items that are of top-notch quality. You must bake unique delicious items by preparing various advanced recipes which are not offered by other bakeries. Through this, people will come again and again to buy the products from you that can actually help in generating more sales for your business.

Chef IBCA offers best bakery courses in Delhi with advance level programs that can help you to become a top-skilled baker upgrading your current baking skills to the next level so that you would be able to bake advanced delicious recipes for your customers making unique bakery products.


So I hope after reading this article you would be able to start a bakery business and run it profitably by considering all the factors discussed above. You need to estimate your financial aspects carefully such as your investments, expenditures and setting up realistic revenue goals to achieve in your business.

If you want to gain more experience in baking and learn various advance level recipes then advance level professional baking classes in Delhi offered by Chef IBCA might be a good choice. You will learn a lot of advanced baking recipes and gain enough experience in baking to make your own recipes. Please feel free to contact us for more details about the course.

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