How to start a bakery business in India In 2021 ( Best Guide )

How to start a bakery business in India

How to start a bakery business in India In 2021 ( Best Guide )

How to start a bakery in India is always a question in the mind of every person who wants to start a bakery business in India.

So many people, especially women are doing this business and they earn a good profit from it.

Because we know that these kinds of items are always preferred and never go out of demand. Starting your bakery is always a business that will have to go down and cannot be denied over time.

The demand for cakes, cookies, and other baked sweets is increasing over time. According to the IMRAC Group, their report states that the Indian bakery industry was valued at $ 8.22 billion and is expected to reach $ 12 billion by 2024.

Here, in this article, I want to enhance and improve your knowledge in the bakery field so that you can start thinking of opening a bakery of your own and earn a good profit from it.

These are the steps that you need to follow to start this business,

8 steps you need to follow to start a bakery business in India In 2021

1. How to Create A Business Plan?

Before learning how to start a bakery business in India you should create a bakery business plan as it will help you to simplify the management activities, decide on budget allocation and plan for the future development of your bakery business. It should ideally include:

A. Bakery Business Plan Summary

A. summary of your bakery business plan serves as an overview of your bakery business. It includes a statement of your mission, a review of the legal framework and ownership of your restaurant, a brief history of the restaurant if it may be a restaurant, and your restaurant business plan.

B. Overview of your Business

An overview of your bakery business plan should talk about your bakery business concept and the type of service you are going to provide. This should include your bakery layout and service type, a sample menu, and management team details.

C. Bakery Industry Analysis.

It is very important to analyze the industry before opening a bakery business. This will help you identify the competition in your area, analyze the target audience for your bakery, and choose the right location for your bakery business.

D.  SWOT Analysis

SWOT analysis of your bakery business will help you to identify the strengths, weaknesses, opportunities, and threats related to your bakery business. It helps you to run the business in the best way.

F.  Operation Plan

Your bakery business operation plan should include details of how your bakery will operate, such as taking orders, menus, services, staff management, raw material procurement, etc.

G.   Financial Analysis

The financial analysis of your bakery business plan should include cash flow statements, operating expenses, fixed and recurring expenses, etc. This will help in achieving the financial smoothness of your bakery business.

H.  Marketing Plan

To run your business smoothly you should have a marketing plan. You should think about how to attract customers and promote your bakery.

2. What is the Best Location for your business?

Best Location for bakery business

One of the most important steps is how to decide on a good location for your business. For the bakery, the ideal location is a well-known market or high-end shopping streets where the crowd are high. Ideally, the shops are located on the ground floor, which is easily accessible and visible, and this is the most suitable position for the bakery business. It is recommended that the 500-square-foot store be divided into two floors to create a functional kitchen and another one is for display and serving. However, it is subject to the availability of space and on your own choice.

For an area of ​​1000 square feet divided into two floors, the rent should around Rs 60,000 to 70,000. If you include all the costs like electricity, water, maintenance it will go up to Rs 1,00,000 per month.

3. What kind of license you need to start a bakery business?

Food license - the first bakery is a food business, so you need an FSSAI for it. You can visit this website for the license www.fssai.gov.in

Fire license - After installing all fire extinguisher cylinders in your store, you can get a fire license for around  1000 to 2000 Indian rupees. 

GST - you also need a GST number for your business. You can get it from here www.gst.gov.in

4.  How much Manpower need for your business?

Unlike QSR and food trucks, bakery shops require a specialist workforce because items require both tastes as well as presentation. For a high-end bakery, you need a head chef, low-level chefs, and helpers, plus service boys and a cashier in the display and serving area. The estimated total number of manpower required in the bakery is 10 to 15. The salaries of chefs, comedians and helpers depend on their experience.

5. What kind of Machine you need?

Kitchen tools are expensive for the bakery business, as each tool is made of stainless steel, which is strong and durable. The main equipment required in the bakery is a planetary mixer, oven, deep freezer, cooling fridge, working table, gas stove, cylinder, storage container, and other equipment. Unlike QSR or food trucks, the bakery needs new equipment for more efficiency. But to reduce the cost, you can get a second-hand table also.

6. How to design your shop?

In the display area or on the front of the shop you should design it in such a way that each item can attract walk-in customers. For cakes and pastries, you usually need a display fridge. There should be the proper storage and display racks for items in the display area other than the refrigerator.

7. How to do the Marketing for your business?

How to Marketing for bakery business

Marketing and branding are essential to the success of any business and are not unfamiliar to the bakery. Get properly designed logos and display boards from a professional designer. This will not only help you create your own unique identity, but it will also help your branding during packaging. Also, don’t forget to get a well-designed menu. For the first few months, about 30,000 pamphlets are good enough to market your bakery. These 30,000 pamphlets will cost you somewhere around Rs 30,000 with good paper quality. In addition to flyers, invest some money in a great display board to attract customers. A well-designed display board costs around Rs 25,000.

8. How to collaborate with online Food Aggregators?

The demand for online food supplies is growing steadily these days. For a new bakery business, it is highly recommended to register your business on online food aggregator apps to increase your sales. Some of the famous aggregators in India are Zomato, Swiggy, food panda, Uber eats, etc. 

You also need to have an online ordering website for your own bakery business. This will help you increase your online presence and generate online orders for your bakery.

Conclusion

These are all 8 important steps that you need to follow while starting a new bakery business. It is a very good highly demanded business. With some amount of effort, you will make a good profit from it. And later on, you will thank us. I wish you very good luck.

Thank you.

Written by Jyotirmoy Chowdhury.