Unlike some small businesses, starting a small bakery business will take quite a bit of up-front money to purchase the equipment needed to operate the business. You must get all of the typical licenses from the state---occupational license, sales tax license and your employer tax identification number--once you have decided on a business name and entity (LLC, partnership, corporation, sole proprietorship). The business name and entity can be applied for and obtained on the web through your state's division of corporations. The EIN can also be applied for online through irs.gov. If you need financing, you will need to create a business plan.
Step 1
Find an adequate building to lease or purchase. The property must be zoned for a restaurant. Zoning is different for each county or city and even neighborhood, so check your local zoning rules. Many zoning rules can be checked on the Internet, but if your county does not have an extensive website, you will need to call the proper authorities once you find a property.
Step 2
Purchase the proper equipment. You will need, at a minimum, a walk-in cooler, a large freezer or walk-in freezer, a large oven, a large mixer, a hot box and various sheet pans, baking racks and rack covers. If the property you found was previously a restaurant, it may have walk-in coolers and freezers already installed.
Step 3
Look for local wholesalers for goods such as flour, sugar, eggs, milk, chocolate and other baking ingredients. Once you find a few, give them a call to check prices. Set up accounts with the wholesalers you choose---keeping in mind that quality is a big consideration. The cheapest may not have the quality you want. You may have to prepay for purchases, but some wholesalers will set up a credit account for you.
Step 4
Create a listing (or a menu, so to speak) of baked goods you will sell. Set prices for the finished product. Prices should take into account things such as employee labor and the cost of the building in addition to the cost of the goods used to make the finished product.
Step 5
Advertise the new business. Start advertising at least two months in advance. Set up a grand opening, offering free samples of the baked goods. Advertise the grand opening at least a month ahead of time. Write a news release about the grand opening and send it to the local newspapers.
Skill: Moderate
Keyword: how to start a small bakery business, starting a bakery, starting a business, bakery business, bakery
