Are you planning to open your cake business? Wow, cool! Have you planned out everything? Do you have your strategies defined? If not yet, then you have come to the right place to find out everything you’ll need to build a cake business. In this article, we’ll take you through a few must-know things. To learn about them, stick to this article!
Select from Bakery Kinds You Want to Open
Bakeries are from where you get cakes, and they are a popular type of foodservice establishment. The first decision you’ll have to make is to decide on the kind of shop you want to open. To do this, you want to evaluate your goals, budget, and talents. Your bakery will allow you to display your cakes with custom cake boxes and show your culinary creativity while also selling them. Opening a bakery comes with a lot of challenges that are different from other types of businesses. Be sure you are not deciding in a bubble. Moreover, you’ll need to do market research and decide which kind of cake business is right for you. Here are a few options that you can choose from.
- Retail Bakeries
- Wholesale Bakeries
These bakeries are the most common type of bakeries that sell their baked goods such as cakes, cupcakes, bread, etc. directly to their customers. These bakeries come in many different forms, and most of them are specialized in one type of bakery item. Such kinds of bakeries need both the front and back of the house. Here are a few types of retail bakeries:
These types of bakeries are a combination of a bakery and café. Typically, these bakeries sell baked items with tea and coffee. If you are planning to sell tea and coffee with cakes, then this might be your choice. However, you need to offer a dining space for your customers.
These bakeries do have a front house, but they don’t offer any dining space to their customers. Instead, as a name suggests, counter services have a counter where customers can order your cake to take home.
Bakery Food Trucks
A moving bakery, I mean a mobile truck. There is another option for you that is a mobile truck to sell your cakes instead of a brick and mortar store.
A name says it all. These kinds of bakeries are specialized in just one type of baked items such as cakes, cupcakes, or gluten-free items. If you are starting your cake business, then this might be the best option for you
These bakeries are becoming more popular day by day, probably because they don’t require a lot of culinary experience or startup capital. However, home bakeries market and sell their products online.
The other type of bakeries that very common as well are known as wholesale bakeries. Rather than selling their clothes to customers directly, wholesale bakeries market their baked goods to businesses like restaurants, grocery stores, delis, and cafes, etc.
Since wholesale bakeries have to meet and exceed their customer’s demands, they are normally larger than retail varieties. Moreover, wholesale bakeries don’t have a typical clientele, and they don’t have any front-of-house or any brick and mortar store. However, these bakeries require lots of baking equipment and space to produce their products in a large number.
Write A Business Plan
Once you have decided on what type of bakery you want to open, to need to create an effective business plan actually to start building your cake business. For this, you need to look at every angle of your business. It will help determine in which direction you want to take your business, and you’ll be able to define and set your goals accordingly. Plus, you need to do market research, identify your customers, and examine your competitors. Make sure you have your business plan ready before starting anything because your whole business relies on your plan.
Lease A Commercial Space
If you are running your cake business from home, then you already have your place, but if not, then you need to start looking for a commercial space for your cake business. What kind of space you would want to choose depends only on the type of bakery you have decided to go with. For example, if you have chosen to open a food truck, then you will have to purchase a food truck, not a commercial land. Retail bakeries need a space in a central location where they can grab the customers. On the other hand, wholesale bakeries don’t require any space as you are selling products to the businesses rather than clients directly.
Permits and License
Of course, when you are opening any business, you’ll have to get these two things. The foodservice industry is greatly regulated on a federal, state, and local level. It means you’ll need to obtain permits and licenses before opening your cake business. Obtaining them depends on your area and local laws.
It is so obvious! Without the necessary equipment, there is no business. Since you are opening a cake business, you’ll require a range for preparing ganaches and jams for your cakes. You need to get your hands on all the equipment for dough preparation, storage, baking, display, and sale.
Custom Cake Boxes
To make your brand and product stand out, you’ll need cake boxes to sell your products. If you get custom cake packaging, then you’ll be able to promote your products effectively, and customers will remember your product and brand as well. These cake boxes will help you build a separate identity of your brand. As a result, you’ll attract more customers, generate sales, and grow your business.