A Detailed Guide On How To Start A Bakery Business In India In 2021
The demand for baked items has witnessed a steady increase in the last couple of years. Baked goods offer customers convenience and affordability, and the growing demand has led to a lot of home-bakers and chefs venturing into the bakery business. As per a report, the Indian bakery market is estimated to grow at a CAGR of 8.5% between 2021 and 2026 and is set to reach a value of USD 12.39 billion by 2026, thus making bakeries a highly lucrative restaurant format. In this article, we will talk in detail about how to open a bakery business in India.
Follow the below-mentioned steps to open a successful bakery business in India in 2021:
Five Things You Should Know Before Starting A Cake Business From Home
The life of a cake maker isnt for everyone. It has demands and pressures like no other job. There will be issues and problems that only your cake friends will be able to relate to. Its a lot more than just rolling out icing.
Its also a lot more admin than people think. I used to say I spent 75% of my time on my laptop, shopping for ingredients, drawing designs, talking to customers and only 25% actually making cakes!
I ran a successful cake business from home for many years, only closing my order books for good last summer to concentrate on other parts of my business full time. Here are my top five things I think you should know before starting a cake business from home:
What Is The Growth Potential For A Cake Business
The baking industry exceeded $50 billion in sales in 2016, with those numbers expected to grow exponentially in the coming years. Most cake business owners start out small, working out of their homes or a small public kitchen. Many choose to remain small and local, content with servicing the needs of their community. The opportunity is there, however, to expand your cake business based on your personal and professional goals. Once youve established a name in the industry, you could share your secrets with other aspiring bakers, opening additional locations in your area, or on a national scale.
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Step : Register For Taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It’s really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation .
You can learn more about small business taxes in these guides:
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
Proof Boxes For Bread Items
Yeast-risen bakery items need to rise effectively. A proof box is a humidity- and temperature-controlled sealed environment to enable that to happen. Some bakers use their ovens as a makeshift proof box, but if your oven is expected to be in use, then this wont work. Its also easier to dictate the rise with a proof box.
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Learn How A Cake Decorating Business Works
There are a lot of misconceptions about running a cake business.
People think its just a hobby, and you can bake or decorate a two tier wedding or birthday cake in an hour. Well, I dont know about you, but I sure cant.
While this may start out as a hobby for you, its definitely got the potential to become a full-fledged business.
To get there, youd have to really understand how the industry works.
Passion and a talent for artistic culinary creations are a must if youre starting a cake decorating business, but its not enough. You have to have the organizational and business acumen for success.
Fortunately, these can be taught.
Like any business, cake decorating takes hard work and long hours. But you can make those hours go by a little bit faster by learning the right way to run a cake decorating business.
And the best way to do that is to go work for a cake decorator!
Now, Im not saying go take a full-time job working 9-5 for some corporate store. If you have a friend whos been doing this for years, thats a great place to start. Or go talk to the owner of your local bakery and ask for advice or suggestions.
Look to understand how a cake decorating business can grow with more ovens and more help, and how that plays into your own vision for starting a cake decorating business.
It doesnt need to be for long, but you have to understand what starting your business looks like.
Learn secrets, tips, and techniques to make your business as efficient as possible!
Get The Appropriate Licenses And Permits
Each state will have different regulations, so you must check with your local government to see what business licenses and permits youll need to start a bakery in your area.
Even your city or county may require specific business licenses and permits. You should review the government websites for your state, county and city to make sure you have all the documentation you need. Your needs will vary depending on what type of bakery you start, but you may encounter the following licenses and permits when starting your bakery:
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Are They Good Enough
It might be a silly question to ask yourself but if you are looking to start making a little bit of money or even developing it into a full time business, you need to make sure that your cakes are delicious before you start your venture. Competition is fierce and you need to make sure it isnt just your family and friends liking your cakes to be polite! Perhaps attend a local bake sale at a school or church fete, ask for feedback and get genuine opinions of your cooking!
Choose The Right Accountant
Choosing the right accountant is an important business decision, so it’s vital that you do your own research and choose an accountant that’s most suitable for your business.
So how do you know if an accountant is a good fit for your business? The following assessment questions will help you evaluate an accountant and decide whether or not they’re a good fit for your baking business.
- Does the accountant have experience of helping cottage industry businesses? Look for an accountant who can demonstrate the skills and knowledge required to of support a small business.
- What are their qualifications, and are they regulated by a professional body, such as the Institute of Chartered Accountants in England and Wales ?
- Ask the accountant if they can provide testimonials from clients similar to yourself. Even better, ask if you can meet them to get their opinion directly.
- Find out how much their services will cost, and when they will bill you. Some accountants bill annually or monthly while others charge by the hour.
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Resources To Help Women In Business
There are many resources out there specifically for women entrepreneurs. Weve gathered necessary and useful information to help you succeed both professionally and personally:
- Funding
- Guides
- Support
If youre a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
Pieces Of Equipment For Your Cake Business
ByVondre Whaley | Submitted On July 25, 2007
If you have decided that starting a cake business from home is perfect for you, then you may have some initial questions. Overall, a cake business is relatively straightforward but chocked full of options when it comes to equipment and supplies. Let’s go over some of the general products you may need for your cake business and some of the extra specialty items you may enjoy having.
1. Heavy Duty Mixer – most people own a mixer but you may want to upgrade if you are planning on starting a cake business from home.
2. Pans – As you know, these come in all shapes and sizes. Your three basic include your circular, versatile or character shaped. Tip: Don’t skimp on good quality cake pans, it does make a difference!
3. Large, heavy duty cooling racks.
4. Turntables for decorating. Make sure they are sturdy!
5. Good, quality separators for multi-layered cakes.
6. A camera to take beautiful pictures of your cakes so future clients can see your work.
7. An air brusher is definitely an item that is not necessary. But, as your business grows and your cake decorating art develops, you may want to invest in one.
8. A projector for the more serious cake business entrepreneurs. This will help you intensify the designs that go onto your specialty cakes. Again, this is not a necessity but definitely a luxury for those who want it.
9. Bowls and spatulas for mixing!
10. Food colors for coloring!
12. Icing tubes, icing bags and accessories.
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Register Your Premises With The Local Authority
When you’re setting up a food-related business, you’re legally obliged to register your premises with the local authority’s environmental health service at least 28 days before you start trading. There’s no registration fee and your request can’t be refused, but someone from the local council may come to your home and ensure your food preparation area is suitable. To get the contact details for your local authority, use the food business registration tool on the governments website. You can also view our video on how to register your baking business.
What Is A Cupcake Business
Cupcake is a type of cake which originated from the united states, and is a small cake that is baked in small thin paper or aluminum cup and designed in different unique designed to serve just one person. Aside from the fact that it is a small cake, it still contains icing, candy or all other decorations that can be found in traditional big cakes. It is vital to note that cupcakes can also be called fairy cake or patty cake especially in places like England and Australia.
Reality is that, if you are a baker or even a caterer, it becomes easier for you to venture into cupcake business. This is so because the same ingredients and processes that are used in making the conventional large cakes are the same ingredients and processes that are used in making cupcakes except for the size difference. The basic ingredient that is used in cupcake making is flour, butter, sugar, eggs, frosting and cake decorations.
What Does It Take to Start a Cupcake Business Successfully?
Beyond every reasonable doubt, a cupcake business is indeed a profitable business because you can operate the business with your family members from your kitchen thereby cutting operational costs to the barest minimum. Hence, if you are able to secure a strategic high traffic location to open a shop, you can be rest assured to rake in good returns from your cupcake business.
Also Check: Wilton 1 2 Sheet Cake Pan
Essential Software And Tools
To get visibility of your core business operations from a centralized system, you should invest in an ERP software. This is a business management tool with a host of integrated applications to manage and automate various processes, from production to inventory to customer management and billing.
These are the most popular ERP suites, which are tailored explicitly toward managing a cake business:
Some other things that are useful for cake-baking include oven mitts or pot holders, so as not to burn yourself on hot pans coming out of the oven.
In addition to equipment and tools, you will also need ingredients and packaging material. Finding a grocery or local dealer is your best bet for finding good deals on bulk baking goods. You can easily buy the equipment listed above from or eBay, or from a local food and beverage supplies store near you.
How To Start A Cake Business
From birthday parties to weddings and other special occasions, cakes are an integral part of many celebrations. Industry innovations have made it possible for consumers to turn their confectioners dream into a reality and allow bakers to become more imaginative with their creations. Depending upon the business plan and overall goals of the entrepreneur, a cake business can be structured several different ways. Many business owners service the entire community, while targeting a specific niche market, based on their baking strengths and public need.
Learn how to start your own Cake Business and whether it is the right fit for you.
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2020-10-14
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Employ Workers When Necessary
In cake making business, you need as many hands as possible, especially when you start getting numerous orders that you might satisfy alone.
plus:
Always be time conscious, its key while running a business.
In todays world of instant gratification and high competition, you want to make sure your target audience get what they want at the right time and in the right place
because if you dont deliver, someone else will.
so even if its just people handling deliveries you can afford for a start, do it.
Hire Employees For Your Technical And Manpower Needs
Aside from relevant software applications such as CRM software applications, accounting software et al and perhaps POS machines, there is hardly any technicality involved in cupcake business. When it comes to operating a cupcake business, it is important to ensure that you acquire brand new bakery equipment. As a matter of fact, kitchen utensils and equipment are affordable.
Some of the kitchen / bakery utensils and equipment that you would need to launch your bed and breakfasts are
- Industrial Oven, Microwave Oven, Fridge, Pans, Cutleries, tableware, sound system, flat screen TVs, and POS machines
If you have the required finance, it is to your advantage to acquire a property or lease a facility to be used for your cupcake shop it usually gives you the freedom to design the facility the way you want to it to be. But if you are low on cash, then you dont have any option other than to rent a facility for your cupcake shop.
As regard manpower, if you are running a small scale cupcake business, you may not need full time employees if you have family members that are willing to lend helping hands. But a standard cupcake shop would usually hire Shop manager, professional baker, accountant, sales rep, delivery drivers, cleaners, and security men. On the average, a standard cupcake shop would have between 5 and 10 employees.
The Service Delivery Process of the Business
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