Do you have magical hands that turn every ingredient into a mouth-watering delicacy? Do you seek to grow to the next level and start your food enterprise from your home? Today many people are embracing the idea of turning their hobbies into a lucrative business.
However, turning your business into a profitable entrepreneur requires more than your love for pies and pastry. Any home-based business needs commitment, discipline and planning to thrive. Here is a guide to help you in your venture.
- Business plan
Write a business idea on how to start and run your bakery. A business plan is a detailed write-up on every aspect of a company. A business plan informs decisions about your finances, marketing strategy and daily operations at the bakery.
What volume do you want to handle in your bakery? Do you need to outsource some ingredients and equipment? Will you specialize in some food items such as sprinkles donuts and muffins? How much do you need for the initial setup? What is the source of your supplies?
- Do a thorough market research
Where do you intend to sell your products? Who are your competitors, and how do you want to fit in the market? What unique products will you offer to your clients?
Market research is an intense study of the trends, patterns and practices in the existing market space. It can help you plan your recipes and become more innovative to explore the untapped potential in your locality.
For instance, it can reveal the need to have full-fiber products, sugar-free items or gluten-free items. You can decide to specialize in a particular niche and build a brand around it.
- Business operations compliance
It is imperative to comply with local laws regarding food business. Some may require you to be cleared by a recognized health certificate. Others may deny you a food business permit if you have pets in your residence. If your operations are large, you may need a commercial-grade permit and fulfil other requirements such as sufficient storage.
All food items prepared from a home-based business should be safe and be prepared under hygienic conditions.
- Plan a test menu
A test run is a critical element in your new business. Sample the best of your delicacies and go out selling to some of your target customers. A test menu helps you to gauge your customer’s experience and identify areas you need to improve.
You can give free samples in your neighborhood and leave your contacts for future orders. Get feedback and detailed reviews to help make an improved recipe for your clients.
- Decide on pricing
Use the test-run feedback and market research to establish the rice for various food items. Pricing is a tricky affair because setting very high prices can put off your clients, and selling them at a give-away price can raise eyebrows.
When pricing your delicacies, consider the ingredients used, pay your energy bills and yourself for labor. For beginners, you can begin with relatively affordable price tags to market your products.
Nothing is set in stone when it comes to an art business such as a bakery. Explore your market, be creative and jump hurdles as they come.