How to Start a Home-Based Bakery Business in India [Investment, Profit]
Do you enjoy baking and are planning to start a bakery business? Baking a cake for friends or family is different, but starting a bakery shop business requires proper planning and strategy. There are multiple factors involved like cost and finances, registration, licensing, hiring a team of professionals, and overall management.
The bakery business has evolved over the past decade. It is not just about cakes and pastries anymore; bakeries today sell a versatile range of desserts as well. The home baking business in India is considered one of the most profitable and high-earning businesses today. Indeed, many people passionate about baking have successfully started their baking business from home and cracked the market. Like any other business, a home-based business too requires full-time attention and focus for growth and better revenue.
This comprehensive guide will help in a better understanding of how to start a bakery business at home. With the right tactics, baking can be converted into a profitable, high-earning venture.
1. Kickstart a full-fledged bakery business
An online home bakery does not require a lot of initial capital investment and is perfect for people passionate about baking. Begin with a small menu, manage orders and delivery, prepare the items, and gradually grow the business. All you need is a little space to bake in your home, the right baking tools and equipment, a passion for baking, and a stellar website to reach customers.
2. Cost to set up a home bakery
The good news is anyone can start a home bakery with a bare minimum investment in a good oven and basic ingredients. However, a tentative budget and plan are crucial for expanding this business. Budget planning helps in understanding how to open a bakery shop both from home and outside. Setting up an online bakery business from home means there is no cost involved in renting or lease. However, a dedicated baking space is essential for running the business smoothly. Here are the other expenses involved in starting a baking business from home.
- Business license and registration: Even if you are running a business from home, registering the business and obtaining the license is essential. It is highly recommended to spend on fire license and FSSAI registration for expanding into a commercial setup. However, if the home-based business gives profitable income, it is recommended to get the business license for filing tax and other purposes. FSSAI can levy a fine on even a home-based baking business if it runs without registration.
- Cost of equipment: A home baking business requires a primary investment in equipment and tools. To start with, a baking oven, trays, tins, spatulas, mixing bowls, frosting equipment, etc., helps in baking an assortment of items. Plan the purchase of the equipment depending on the budget and space available.
- Purchasing the ingredients: A specific budget must be set aside for ingredients. The raw material differs depending on the type of products like cake, bread, brownies, pie, tarts, frosting, cupcakes, buns, etc. Most of the ingredients are standard for all types of products, while some are specific. Always purchase the ingredients depending on the menu or recipes.
- Packaging and delivery cost: A home-based bakery requires good packaging, which helps sell the products better. The way the products are packaged is one of the major attractions for the customer. It is crucial to set a budget for investing in a cake box, muffin liners, cupcake papers, etc. Customised packaging with logo and brand name helps in building the brand reputation. Home delivery also requires a specific daily expense with logistics and transportation .
Also read: Cake Box Manufacturers in India
3. Why do you need a business plan?
Starting a bakery from home on a small scale does not require much planning. However, from a business point of view, it is crucial to have a business plan. This helps in streamlining the management and better marketing for business growth. Planning for the business means deciding on the recipes, testing recipes, setting up an online website for orders, marketing, and promotion.
Before starting the business, make sure to get all the necessary registration and licensing done. This helps in the calculation of GST and even receives an exemption. The GST exemption depends on an annual turnover of Rs 20 lakh.
The brand logo and name play a crucial role in the branding of the bakery business. The logo and name act as the face of the business.
Once the recipes are decided, ingredients and equipment are procured, the next big step in the bakery business plan is marketing and promotion. There are tons of ways to promote and market the business. The online presence of the business helps in better sales and revenue.
Also Read: Best Biscuit Brands in India
4. Go for marketing and promotion to increase revenue
Starting a bakery shop business is fairly easy and simple, but it requires proper branding to achieve better growth and revenue. Online marketing helps in better visibility of the business and rise in the customer base. Here are a few ways which help in marketing the home-based bakery business:
- Create a great SEO-optimised website through which customers can place orders. The website ensures that the business is legit and hence makes it more reliable. A secure and encrypted website with a safe payment gateway allows customers to make an online purchase. Always make sure to upload well-described and attractive photographs of the products for better sales.
- Make use of social media promotion for marketing the bakery business. Social media tools like Instagram or Facebook are indispensable for marketing. Keep uploading attractive pictures and videos of your products on them, along with relevant information and hashtags.
- Start a YouTube channel as an additional promotion and traffic generation tool for the website. Decide on the recipes, prepare the recipes, and upload for generating more views. A video of preparing recipes and bakery products garners more views and generates better leads.
- Invest in good photography and videography for better promotion. Excellent and high-quality images on social media or websites attract more customers. Once you get a sufficient number of orders, make sure to take customer feedback for better business and customer reach.
Also Read: Biscuit Manufacturers in India
5. Price the products appropriately and keep the menu versatile
How to start a bakery is a tricky question as it requires a lot of dedication and passion for the profession. Limited bakery items, recipes, or cakes will eventually limit the customer base. It is vital to keep a menu that is versatile and is a mix of multiple items. A home-based baking business proliferates better with upgraded skills and techniques.
Start with the basic items that you always have hands-on experience and expertise in. Gradually upgrade your skills and include more recipes, better cakes, and a wide range of bakery products by attending workshops or classes. A well-designed menu allows the customers to navigate through multiple options and place the order conveniently.
Apart from the items or recipes, fair pricing is essential. Exorbitant prices are a big turn-off for customers, especially if you are new in the baking business. It is necessary to list the items and tag a fair purchase price against them. The cost of manufacturing and operation of the business for you is different from others and hence the prices must be decided accordingly.
6. Participate in events or go for partnerships
Reach out to event and wedding planners amongst friends or family and partners for orders of cake or other bakery items. Try signature recipes that will help you gain a reputation and create a niche. Seek help from family and friends for promotion.
Home-based bakery business has helped many people become entrepreneurs and get a steady monthly income. A lot of small home bakery businesses have grown exponentially to expand into a commercial setup. Starting a home-based baking startup requires proper planning, managing finances, rigorous clever marketing, and constant skills upgrade. These tips will help you understand and figure out how to start a bakery shop .
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Q. Is registration and license necessary for a home-based bakery business?
Ans. Yes, the business license and registration is necessary as it is mandatory by the FSSAI as well as for filing GST and tax. This prevents any government body or regulation from interfering with the business. Hence, a business license helps with uninterrupted work.
Q. What is the cost of starting a home bakery business?
Ans. The cost is variable, and it depends on the types of business and bakery items. It also depends on the scale and size of the business. Normally, if it starts from home without renting a place, it can be started in as low as Rs 10000/-.
Q. What is the best way of marketing for better sales?
Ans. The best way of marketing and promotion is starting a website optimised with SEO to allow the customers to place the order. The social media handles are great for promotion and marketing.
Q. What are the three significant factors for a home-based bakery business?
Ans. The three major factors are the budget for the setup, deciding on the menu or recipe, and handling the marketing and promotion for a better customer base.
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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 , but before that, let us understand the types of bakery businesses.
Types of Bakery Business
You must first select whether you want to create a retail bakery or a wholesale bakery before you can begin arranging the specifications of your bakery. Deciding this is crucial because it will influence how you engage with your clients and how much money you need to invest.
- Retail Bakeries: Customers can buy baked goods directly from a retail bakery. You can establish them in various shapes and sizes, but they all need at least one employee to manage the cash register and assist customers.
- Wholesale Bakeries: A wholesale bakery offers baked goods for sale or supplies them to retail establishments like cafes, hotels, and supermarkets. With wholesale baking, there are many creative options, such as concentrating more on your menu and its packaging.
Types of Bakery Service
Now that you know what kind of bakery you’re planning to open, you need to decide what kind of services you’ll offer.
- Bakery Cafe: A bakery cafe, often a sit-down bakery, contains a dining space where your clients can relax and enjoy their meals.
- Food Truck Bakery: If you want to cater to customers constantly on the go, mobile eateries or bakery food trucks are a fantastic alternative.
- Home Bakery: For business owners who don’t have many funds to invest in their new endeavor, baking from home is ideal. All you need to launch a home bakery is the right tools, enough room, and the required licenses.
- Counter-Service Bakery: Except for the dining space, a counter-service bakery is similar to a bakery cafe. Customers can typically go in and collect their items from a small store.
- Specialty Bakery: A specialized bakery specializes in producing just one or a few types of baked goods. They also provide flexibility since, despite concentrating on a single product type, you can decide whether to make it for retail or wholesale.
It’s crucial to decide what kind of bakery you would like to start because this will affect how your bakery business model is structured. It’s a big choice but also the most exciting part of your brand-new company.
10 Steps To Open A Successful Bakery Business In India
Follow the below-mentioned steps to open a successful bakery business in India in 2023:
1. Create A Bakery Business Plan
Before learning about how to start a bakery business in India, you should create a bakery business plan as it would help you in streamlining the operations, deciding the budget distribution, and planning the future development of your bakery business. It ideally should include:
- Summary of the Bakery Business Plan – The Summary of your bakery business plan acts as an overview of your bakery. This should consist of your mission statement, a review of your restaurant’s legal structure and ownership, a brief history of the restaurant if it’s an existing restaurant, and plans of your restaurant business.
- Business Overview – The Business Overview of a bakery business plan must include the concept of your bakery business, and the type of service you’re going to provide. It should include the layout of your bakery and the service type, a sample menu, and the details of the management team.
- Industry Analysis – Doing the Industry Analysis is extremely important before you open a bakery business. It would help you identify the competition in your area, analyze the target audience for your bakery, and help you choose the right location for your bakery business.
- SWOT Analysis – The SWOT Analysis of your bakery business would help you identify the Strengths, Weaknesses, Opportunities, and Threats associated with your bakery business. Learn how you can do the SWOT analysis for your bakery business here.
- Operations Plan – The Operations Plan of your bakery business should include the details about how your bakery would function, such as order-taking, menu, service, staff management, raw material procurement, etc.
- Financial Analysis – The Financial Analysis of your bakery business plan should include the cash flow statement, the operating costs, the fixed and the recurring expenses, etc. This would help you gain the financial viability of your bakery business.
- Marketing Plan – You should include a marketing plan in your bakery business plan as well. The marketing plan should talk about how you’ll attract customers and promote your bakery.
Learn in detail how you can write a successful bakery business plan here.
2. Choose A Location For Your Bakery Business
One of the first steps to how to start a bakery business in India is to decide on a good location. For a bakery, the ideal location is a reputed market or high-end shopping streets where footfall is high. Ideally, front area shops on the ground floor, which are easily accessible and visible, are apt for the bakery business. It is advisable to have a 500 sq ft shop, divided into two floors, to build a functional kitchen on one level, and have a display cum serving area at another. However, this is subjective to the space available and your own choice.
For a 1000 sqft area divided between two floors, the rent should not exceed more than Rs 60-70k. Your expenditure would be around Rs 1,80,000 to acquire the place where the bakery will operate.
Also, while finalizing the location of the bakery, it is essential to ensure that the place has a proper water supply and drainage facility. Get an appropriate legal agreement for the property as it is also required in paperwork and other licenses. You should even get a No Objection Certificate (NOC) from the property owner that he has no problem that his place would be used for food outlet purposes.
This article will help you decide on the location of your bakery business .
3. Get All Licenses Required T o Open A Bakery Business In India
Similar to the QSR format, the bakery business also needs five licenses: FSSAI license, GST Registration, Local Municipal Corporation Health License, Police Eating House license, and the Fire License . Out of all the permits, FSSAI, GST, and Local Municipal Corporation Health License are the most important ones to have at the starting of the outlet. Police eating house and fire license can be acquired once you commence your operations. However, it is recommended to have all the licenses in place before starting a bakery.
- Food License: You can apply online, through its website ( www.fssai.gov.in ). You can also get this done through various agencies that charge around Rs 5,000 for the complete paperwork and license fee. It is advised to get a five-year food license to avoid renewal fees every year. The cost for the five years FSSAI licenses is Rs 15,000. Find out how to get the FSSAI License for your restaurant here .
- GST Registration: It can be done with the help of a Charted Accountant. Find out how you can do GST Registration for your Restaurant here.
- Health License: You can get the Municipal Corporation’s health license fee with the help of a local Municipal Health inspector. This would cost you around Rs 3,000.
- Fire License: You can get the fire license with a mere fee of Rs 1,000-2,000, after the installation of fire extinguisher cylinders.
Here is a complete list of all the licenses required for opening a food business in India and the steps to procuring them.
4. Get Manpower Required To Open A Bake ry
Unlike the QSR and Food Truck, Bakery shops need an expert workforce because both the taste as well as the presentation is essential in the case of baked goods. For a high-end bakery, you need a Head Chef, Chef De Parties, Commi level Chef, and Helpers, plus Service Boys and a Cashier at the display and the serving area. The approximate total count of manpower required in the bakery is 15. The salary of the chefs, Commi, and helpers depend on their experience.
Find out how to create a Human Resource structure for your restaurant here .
5. Buy Equipment Needed To Start A Bakery Business
The kitchen equipment is costly for a bakery business since each piece of equipment is made up of stainless steel, which is sturdy and long-lasting. The major equipment required in the bakery is Planetary Mixers, Oven, Deep Fridge, Cooling Fridge, Working table, Gas stove, Cylinders, storage utensils , and other equipment. Unlike QSR or Food trucks, the bakery requires new equipment for better efficiency. But to lower the cost, you can get the working table second-hand.
6. Design The Display Area Of Your Bakery Business
The display area or the front end of the bakery business should be well designed and created in a manner that every item is noticeable to attract walk-in customers. You mainly require a Display fridge for cakes and pastries. Other than the refrigerator, the display area should have proper storage and a display rack for the items.
7. Install A POS & Billing Software In Your Bakery
The POS software is not just billing software anymore. Equipped with powerful integrations such as Inventory management, the POS software is now the only software you need in your restaurant. While purchasing one for your bakery business, ensure that the POS software has features to manage the shelf life of the baked items , robust inventory management as you would be dealing with perishables. The price of POS software is likely to differ based on the features you wish to include.
Learn how you can choose the best POS Software for your bakery here.
8. Do Right Marketing & Branding Of Your Bakery Business
Market and branding are essential for any business to flourish, and a bakery is no stranger to this. Get a properly designed logo and display board from a professional designer. This will not only help you to create your own unique identity but will also help in your branding while packaging. Also, do remember to get a well-designed menu.
For the first few months, around 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. Apart from flyers, invest some money in a great display board to attract customers. Well-designed display board costs around Rs 25,000.
Apart from these, you must have a separate budget for restaurant management software, since it could also help you in running several marketing campaigns by utilizing customer data.
9. Decide On The Staff Uniform Of Your Employees
Staff uniforms are often ignored while opening a food business. However, they are essential as they help deliver a professional look and also in the branding of the bakery. All the staff members must look good, hygienic, and well dressed. You can choose from different types of dresses such as chef coats, smart shirts and t-shirts, and an apron.
10. Partnering With Online Food Aggregators
The demand for online food delivery is steadily increasing these days. For a new bakery business, it is highly recommended that you register your business on the online food aggregators to generate online orders.
This article talks in detail about how you can partner with online food aggregators.
It is also essential to have an online-ordering enabled website for your bakery business. This would help you boost your online presence and also generate online orders for your bakery.
Here we have mentioned the set-up cost of opening a bakery that will tell you how much it costs to start a bakery business in India. The total approximate cost of opening a bakery in India is around Rs 15 lakhs. However, the cost of equipment and location can lead to considerable variance in the estimated cost.
With this article, we hope you were able to gain an understanding of how to open a bakery business in India. Learn how you can make your bakery business successful here!
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How to design a coffee shop floor plan – a complete guide, 38 comments.
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I have bakery item to sell call {…Redacted..}
what is that item, I am interested in buying / leasing the bakery/equipment
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This is a very comprehensive article and will be very helpful for all those who are planning to start a Bakery business in India. I would like to add, that as per my experience the most important part of starting a bakery is getting the right equipment in place. Equipment can make or break a bakery, and hence give due importance and get the best ones on board. 🙂
Any suggestions where to buy them from
Very useful. It comprises of everything that a bakery owner or person aspiring to be one should be aware of, I especially liked the details under Do Right Marketing & Branding Of Your Bakery Business. I would like to add that there should be a proper balance maintained with the vendor as the major raw materials of a bakery business are wheat flour, eggs, sugar, ghee, milk, yeast, baking powder, cream, butter, salt, etc., which can be easily bought from the local wholesale stores or from the direct manufacturer. All this is only possible when the right equity is maintained with the vendor.
Dear Ram Krishna How could you ensure that which are the right equipment. Could you please share your best knowledge with me on my number {… redacted …}.
I plan to start a bakery business of my own and the details on bakery investment cost is very helpful to me. Thank you!
It is difficult to find detailed articles that talk about starting a bakery in India. This article has every aspirant baker covered!
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I am planning to start a bakery in Bangalore soon. I am new to this domain but would like to partner with someone who is serious about this business. Throw me an email at {… redacted …} if interested.
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Hii i have a doubt that other than bakery.give me details about producing one product in many varieties of flavours..will it b successful
I am planning to start a bakery in Ashoknagar, North 24 Pgs, West Bengal soon. I am new to this domain but would like to partner with someone who is serious about this business. Throw me an email at {…redacted…} if interested.
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I was always wanted to open a home-based bakery business. This article was very helpful in gaining the basic idea to start this business. Can you please provide me some basic tips especially for a home-based bakery business.
Really good and important information…
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Start a Home Baking Business in India: 8 Powerful Steps
Have you ever passed by a bakery and felt enchanted by the mouth-watering fragrance? Bakery items are everybody’s favorite! That’s why a home baking business is a great business idea right now!
If you also have a:
- Love for baking
- Love spreading joy with your amazing baking skills
- And wish to convert your hobby into a business then this blog is for you.
,then this blog is for you!
We are going to offer some vital tips on how to start a home baking business in India. Let’s get started.
Tips for Starting a Home Baking Business in India
1. manage the menu:.
So what are you good at? Cakes, cookies, cupcakes, loaves of bread, muffins, and many more are the items we think of when we say baked food. It is very important to have a variety of products when you start your business. But at the same time, it’s important to have mastered baking those products.
Make sure you add items in the menu that you are well experienced in. Keep in mind that customers keep asking for customized items, especially from a home baking business, and hence, there is always a scope for changes in your menu.
2. Market analysis:
How well do you know your customers? If you are going to start a home baking business, you must study the market you are going to enter. Who is going to be the target audience, what are their preferences in terms of baked food, location, work, etc needs to be considered.
For instance, if you are a metro city home baker, you can expect orders that are highly customized and difficult. If you are targeting college students, then you can expect a high demand for uncommon designs and unique flavors. Also, depending on the target audience, you can decide on pricing for your products.
Few questions you must know the answers to :
- What season of the year has maximum demand for cakes?
- What are the competitors doing?
- What new baking skills entered the market?
3. Cost estimation:
This is the most important stage for any home baking business in India. Since you are not planning to start any commercial business on a big scale, the cost should be less than that of professional bakeries . While estimating the cost, there are various factors to consider; the cost of appliances, cost of ingredients, packaging cost, the salary of your helper (if any), electricity bill, delivery cost, etc. Depending on the number of orders you get, you can estimate your monthly cost and plan accordingly.
4. License:
The next important step is to get all the licenses. FSSAI , GST, Health License Police Eating House License, or Fire License; all these licenses are necessary to start a home baking business in India. These licenses allow users to produce and sell products from home as a commercial business. It also indicates that the home bakers are maintaining all the safety and hygiene standards. You can also refer to this blog for more information.
5. Baking appliances:
While listing out the ingredients and other materials required for your business, if you have not considered professional baking appliances , then you are doing it wrong. Every home baking business from home must have a high-quality oven, microwave, stand mixer, mixer grinder, refrigerator, etc.
It is crucial to select the best brands and authorized dealers. Restaurant.Store is an online store that customizes only kitchen appliances for home kitchens as well as hotels, restaurants, cafes, etc. You can get amazing deals and the finest appliances for your new venture.
6. Branding:
Branding is highly important and recommended for every business, no matter how small or large scale the business is. The same is the case for a home baking business! Branding helps businesses get a unique identity amongst the competition and helps customers connect with the brand easily.
To start with, you need an attractive brand logo. Make sure your brand’s logo matches with your business sector and is eye-pleasing. Then you require a catchy tag line that will help customers remember your brand.
Make sure you are printing your brand name, logo, and tag line on the packaging boxes and bags. Not to forget, always use paper products and say no to plastic. Another cool thing you can do with your packaging is to print a QR code of your social media profiles. This will help customers visit your social media pages in no time and check out your latest posts.
7. Marketing and promotion:
With everything being available online, online advertising is the best and most feasible way of marketing. You can use social media platforms like Instagram, Facebook, to increase brand awareness for your home baking business. You can also forward sales pitch messages to your friends and families as a marketing campaign.
If this fits in your budget, you can also opt for paid ads and sponsored posts on social media. Also, exciting offers on your products can bring in more customers during festive times.
8. What’s new?
There are hundreds of bakers in every city of India. To stand out and firm in this competitive market, you must deliver something new, unique, and delightful. For instance, bakers delivering whole wheat cakes of jaggery cookies stand a better chance of becoming successful in less time.
Now that you have all the tips to start a home baking business from home in India, you are all set to start and rule the market. Let us know in our comment section what more tips can be added here. Happy baking!
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Detailed Guide to start Homemade Bakery Business in India for Housewives
Radha Dhaked | June 13, 2022 June 13, 2022 | Business Plan and Project Report
Bakery is one of the fastest-growing food businesses in India. The reasons are simple. Homemade Bakery business products are delicious, attractively presented, and reasonably priced when compared with the commercial bakery products available in the market. In this article, we have mentioned a few things to keep in mind when starting a bakery business in India.
Licenses Required for opening a Home-made Bakery business
If you’re thinking of starting a homemade bakery business, you’ll need to obtain a health license from your local government. This is typically a simple process, but it’s important to do so you can operate legally.
Health License: Your local health department will likely be the agency responsible for issuing health licenses for your bakery business. You’ll need to apply and pay a fee, and then an inspector will come to your home to ensure that it meets all the necessary health and safety standards.
FSSAI License : Homemade bakery businesses also require you to obtain a food license from the Food Safety and Standards Authority of India (FSSAI). FSSAI registration for your homemade bakery business is necessary in order to ensure that the food products manufactured by the bakery are safe for consumption.
GST Registration : GST registration is a mandatory tax registration if you are an e-commerce seller. If you plan to sell homemade bakery products online, you must get GST Registration and do GST Return Filing in order to be compliant with laws. GST Registration is also beneficial to collaborate with Multi National Companies as they prefer to work with registered businesses only. MSME Registration: MSME Registration or Udyam Registration is not mandatory registration. However, it is a beneficial scheme and homemade businesses must apply for it. It is mandatory to have MSME Registration in order to claim the benefits from the government schemes and other financial institutions.
How to Select Location for Homemade bakery business?
When deciding on a location for your homemade bakery business, there are several factors to consider. The first is foot traffic. You want to be sure that your bakery is in a high-traffic area so that potential customers will see it and be tempted to come in for a treat. Another important factor is competition. You don’t want to be too close to another bakery, as this could cut into your potential business. However, you also don’t want to be too far away from other bakeries, as this could make it difficult for customers to find you. . By taking all these factors into consideration, you will be able to find the perfect location for your homemade bakery business.
Investing in some quality baking equipment
One of the most important things in a homemade bakery business you’ll need to invest in is equipment. Even if you’re only planning to bake on a small scale, you’ll need some essential equipment to get started, including an oven, baking tins, cooling racks, and a mixer.
Of course, the type and quality of equipment you’ll need will vary depending on the size and scope of your business. If you’re only planning to bake a few items for friends and family, you may be able to get by with a more basic set of equipment. But if you want to grow your business and sell your baked goods to the public, you’ll need to invest in higher-quality, more durable equipment that can handle higher volumes. You can apply for a business loan if you don’t have enough capital to get the larger equipment.
Marketing and Advertising
Finally, you will need to promote your business through marketing and advertising. Advertising for a homemade bakery business in India can be a challenge due to the competition from large, well-established businesses. However, there are many ways in which you can effectively market a Homemade bakery business.
Identification of your target audience can be done by surveying potential customers to determine what type of baked goods they are most interested in. Next, develop a marketing strategy that resonates with the target audience. This can be done by creating eye-catching flyers and posters, and by distributing them in areas where potential customers are likely to see them. Additionally, consider using social media to reach a wider audience. Creating a strong online presence through Website Development will help to attract new customers and to build brand awareness.
Conclusion:
Today housewives are doing their business in their home kitchen to generate income for their families. If you wish to start homemade bakery business in India, make sure to get the necessary guidance so that it’s legal and beneficial for you in the long run.
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How to Start a Bakery Business from Home in India.
Why Start a Bakery Business from Home?
The Indian bakery industry has seen steady growth, with a value of nearly USD 7.60 billion in 2020 and projected growth of 8.5% over the next five years, reaching a staggering USD 12.39 billion by 2026.
However, the financial potential should be one of many reasons to start a bakery business.There are many other compelling reasons, such as a passion for baking, the desire to be one's own boss, and the opportunity to bring unique baking creations to the market.
Some of those reasons are:
- Many home bakers are driven by their love for baking. For those passionate about cooking, especially baking, starting a bakery business can provide a perfect balance of passion and income.
- Not only does it allow you to fulfil your entrepreneurial dreams, but it also provides employment opportunities for others. Starting a bakery business can be a great way to turn your dream of becoming a job creator into a reality.
- In addition, the bakery business offers the chance for fame and recognition. Just look at home bakers like Shivesh Bhatia and Prateek Gupta, who gained massive popularity by taking their businesses online.
- Finally, the financial potential of the bakery business must be considered. Many home bakers earn lakhs every month, and with the right guidance, you can achieve financial success in the bakery business. This article is here to guide you on your journey."
Steps to Start a Bakery Business From Home
Elon Musk once said, "If you're trying to create a company, it's like baking a cake. You have to have all the ingredients in the right proportion." This analogy applies equally well to those considering starting a baking business from home.
To succeed, you need to understand the essential ingredients and how to arrange them. "This step-by-step guide will be your companion on starting a baking business from home, helping you ensure that all the ingredients are in the right proportion."
Decide the Type of Bakery
Before moving forward, it's important to determine the type of bakery you want to start. Different bakeries cater to different consumer groups and target different geographical areas.
With your expertise and target customer, decide which bakery business best aligns with your goals. Read on to discover the various types of bakeries you can start.
Narrow Down your Niche
Before starting your bakery, ask yourself some fundamental questions:
- What is my area of expertise in baking?
- Do I want to target only local customers or expand nationwide?
- What are the preferences of my target audience?
- What makes a bakery great in the eyes of consumers?
Once you have answered these questions, you can narrow down your bakery business and offerings. Narrowing your focus will help you scale more effectively.
Some popular niches to consider in the bakery industry are:
- Artisan bread
- Keto or Vegan baked goods
- Sugar-free or Gluten-free baked products
- Customized cakes
- Diabetic-friendly baked goods
- Cookie cakes.
Make a List of Required Equipment
When starting a baking business, it's essential to have the necessary equipment and ingredients to ensure quality and efficiency.
While home baking for private parties may require only basic supplies, running a business requires a more extensive list. This might include:
- Counter-top mixers
- Emulsion blenders
- Planetary mixers
- Mixing bowls
- A large working table
- A designated storage area or equipment for raw materials and baked items
- Standard bakeware includes muffin tins, cake pans, bread moulds, cookie moulds, etc.
- Essential tools like icing tips, pastry knives, spatulas, flour shifters, and measuring cups are required to run a successful baking business.
- A sheet pan rack to maintain the temperature of your baked goods
- Kitchen wear such as aprons, gloves, and hairnets to maintain hygiene and professionalism
- Carefully selected packaging materials that will affect customers' perceptions of your product
- A delivery vehicle or arrangement for home delivery options, if desired.
This list will also help you estimate the cost and budget for your home bakery business.
Decide Your Logistics
A crucial factor in making decisions for your bakery business is considering how you want to serve your target audience and how you want your products to reach them.
When planning your bakery logistics, consider these factors:
- The estimated time it takes to bake each product
- The capacity to fulfil orders without sacrificing product quality
- The shelf life of your baked goods
- Availability of bulk raw materials to meet increased demand
- Adequate storage facilities for perishable items, even during fluctuations in sales
- Delivery capabilities, including local, city-wide, state-wide, or nationwide reach
- Partnering with a delivery service that understands the delicate nature of baked goods.
Many businesses have shifted to online platforms to overcome the barrier of limited local reach, such as the Fynd Platform , which helps businesses get online and sell their products to a larger audience.
Create your Business Plan
Before embarking on your bakery venture, creating a comprehensive business plan is essential. This plan should consider a range of factors, including SWOT analysis, financial analysis, and industry analysis.
These evaluations will give you a thorough understanding of the bakery business, market, and operations. By conducting these analyses, you can gain a deeper insight into the bakery business plan, which is discussed in further detail in the article.
Decide the Name and Logo of Your Business
For many business owners, their company is a source of pride and a precious asset, much like a child. As such, when it comes to naming a business, choosing something that holds personal significance is common.
However, it's also important to consider other factors, such as marketability and name recognition. Your business name should indicate the products or services you offer.
Additionally, a well-designed logo is essential as it serves as the face of your brand and helps you stand out in the market.
Licence and Other Legal Formalities
Before starting your bakery business, various legal formalities must be completed, which will be covered in later sections of the article. Once all the necessary steps have been taken, it's time to implement your plan.
Rather than focusing solely on how to start a bakery from home, it's essential to think about how to sell products and expand your reach. A cost-effective way to do this is by establishing a solid presence on social media.
Many small business owners today manage their social media accounts, stay updated on trends, create their trends, and directly engage with customers. This helps to build both their personal and professional brand.
Additionally, if you're considering starting a bakery, you may wonder if you can afford the investment. The article's next section will address the cost of starting a small bakery to help you make informed decisions.
Small Bakery Investment Cost
The investment cost for a bakery varies depending on the choices you make. For example, opening a brick-and-mortar bakery with seating will likely have a higher investment cost than starting a home-based bakery.
Therefore, before determining the investment cost for your bakery, it's crucial to understand what you want to achieve with your business.
The following is an estimate of the average investment cost for a small bakery, which may vary based on specific circumstances and location. Let's take a closer look at each aspect of the investment cost.
Start-up Cost
These are items that require substantial upfront investment but have the potential to provide long-term benefits.
If you're starting a home-based bakery, your space cost will be zero as you'll use your kitchen. However, if you're planning to open a bakery with a kitchen and a seating area for customers, you'll need a commercial space of around 500 square feet.
The average rent for such a space is estimated to be 50,000, which means you'll need approximately 150,000 to cover the security deposit for three months of rent.
Business Licences
Starting a home-based bakery does not usually require obtaining a business license, and as a result, there is no cost associated with obtaining one.
On the other hand, starting a commercial bakery, you'll need to obtain several licenses, including a municipal license, FSSAI (Food Safety and Standards Authority of India), and a fire license. The total cost of these licenses can be around 10,000.
Equipment Cost
Starting a home-based bakery requires only a small investment in equipment and essential ingredients. However, to estimate the equipment cost, you must create a list of all the necessary equipment you'll need.
This list can be found in the earlier-mentioned checklist.For a home bakery, you will need basic equipment such as a refrigerator, spatula, mixing bowls, tins, and trays.
On the other hand, a commercial bakery will require much more heavy-duty equipment, including a large oven, mixers, work tables, a deep refrigerator, and sit-out tables.
The cost of equipment for a home bakery can range from 10,000 to 15,000 Rupees, while the cost for a commercial bakery can reach approximately 600,000 rupees.
Ingredients Cost
The type of products you plan to offer in your bakery has a more significant impact on ingredient costs than your bakery's location.
If you specialize in selling only cakes, your ingredient costs will likely be lower compared to a bakery that offers a more extensive range of items like bread, brownies, and cookies.
In the bakery industry, certain ingredients are standard across all products, while others are unique to individual items. Generally, for a home bakery, the initial ingredient cost can average around Rs 7000.
However, if you open a bakery in a commercial area, you must keep certain items on display, resulting in a higher ingredient cost. In such cases, the average ingredient cost could rise to around Rs 20,000.
Packaging Cost
The packaging of your baked goods plays a crucial role in customer perception, and a poorly packaged product might leave a poor impression, no matter how delicious it tastes.
Therefore, many bakers invest heavily in packaging, as bakery products require adequate packaging for safe delivery. While it is challenging to determine the exact cost, the average packaging cost for a home bakery is around Rs. 5000.
In contrast, for a commercial space, the cost might increase to around 10k due to a higher quantity of items requiring packaging.
Marketing Cost
Apart from the cost of ingredients and packaging, you also need to invest in marketing to promote your bakery. Marketing costs include business cards, letterheads, logos, and packaging designs.
The marketing cost would increase as your business expands and reaches more customers, but on average, the initial marketing cost for a bakery is around Rs 5000.
For commercial bakeries, the cost might increase up to 100K depending on the promotional methods used, such as newspaper inserts, influencer marketing, and display boards.
Miscellaneous Cost
Certain costs in the bakery business cannot be estimated in advance as they depend on various factors such as the individual, location, and transportation.
For instance, transportation costs are incurred when you collect ingredients and equipment, obtain licenses, and deliver baked products to customers.
However, the actual amount spent on these activities cannot be precisely calculated in advance. Such costs are usually considered miscellaneous expenses.
As a rough estimate, you can allocate around Rs 10,000 as miscellaneous expenses for both a home bakery and a commercial bakery. This brings the total estimated startup cost for a home bakery to approximately 37k and for a commercial bakery to 900k.
However, in addition to these startup costs, preparing for ongoing monthly expenses is essential. These expenses can be divided into fixed and variable costs that most businesses typically face.
Other than a home bakery or small commercial bakery, you might also go for a full-fledged bakery. Here is a table to give you an estimate of the required investment.
So, for a full-fledged bakery, the estimated investment required is Rs 14,92,000. It's essential to carefully consider this amount before deciding to invest in a full-fledged bakery, as it is a substantial investment and requires a certain level of certainty regarding return on investment.
If you need more clarification about making such a significant investment, starting with a home bakery is often a better option. Choosing the right products to offer can also be a challenging step when starting a bakery business, as many options are available.
It's important to carefully consider the demand for different products and choose those likely to sell well in your specific location and market.
Bakery trends are constantly evolving, as per a report by The Economic Times titled "Cookie demand grows while biscuit sales slow". The report highlights that cookies are becoming increasingly popular among city residents while demand has decreased in rural areas.
A sudden rise in the cookie sale has attracted many bakers to focus on it. You will learn more about the cookie business in the next section.
How to Start a Cookie Business in India
Before we get into the cookie business's technicalities, let's look at the inspiring story behind a successful cookie startup, The Cookie Co. If you're a fan of cookies, you may have heard of this brand.
However, you might need to become more familiar with the person behind the startup and her fascinating journey to success.In 2019 Kshiti Jikar Mehta started The Cookie Co. in Vadodara.
She graduated from Harvard and Purdue, and cookies brought her comfort during college and worked in the US. Kshiti returned to Vadodara with her husband in 2017 after working for six years in the US as a finance professional.
Then, the idea of starting a food venture crossed her mind. Kshiti said that “In a 9-5 job, the mind was in there, but not the heart, and I always wanted to do something which was passion driven."
She started by conducting a thorough analysis of the Indian cookie industry.During her research, Kshiti discovered that the demand for cookies was rising in India, especially among Gen Z.
She also observed that cookies were becoming popular even in non-metropolitan areas. Initially, Kshiti started by making cookies in her mother-in-law's kitchen in 2018 and sold them only to her friends and family.
She noticed a gap in the market, with no company delivering cookies to pan India, and took advantage of the unorganized cookies segment, which was then full of home bakers.
Kshiti was drawn to the cookie business because it combined her passion for food with a scalable business opportunity. She registered The Cookie Co. in 2019 after starting out by selling cookies to friends and family.
Kshiti adds, "I became interested in the cookie business as it was an intersection of food, passion, and a business that is scalable. If cake and brownies are such a big hit, why not cookies? It is low-cost, travel-friendly, and has a longer shelf life.
The story of Kshiti might inspire you to know more about how to start a bakery business from home, particularly the cookie business. A significant thing to notice in the story is the market research performed by Kshiti.
Here is a step by step guide you might use to start your cookie business
Design a business plan.
Creating a business plan is crucial for any cookie business. It should encompass your goals, target audience, marketing and sales strategies, as well as expected outcomes.
A comprehensive plan can help you to effectively manage and grow your business while staying focused on your long-term objectives.
Choose a Profitable Recipe
Identifying the most profitable cookie recipe for your target audience is essential to maximise profits and minimise production costs based on ingredient and equipment availability.
However, ensuring the recipe is high quality and appealing to customers is equally essential. After establishing your recipe, you can follow the same steps as starting a home bakery.
Although a home bakery may offer an excellent initial reach, taking your business online may be necessary to scale it. You may have questions about the online transition and how it will benefit your business. This will be explored in greater detail in the next section.
Online Baking Business
The bakery industry was valued at USD 10.2 billion in 2021 and is projected to have a CAGR of 10.94% between 2023-2027, potentially reaching a market value of USD 19.3 billion by 2027, according to a report by the IMARC Group.
Several crucial trends are fueling the expansion of the bakery market, and some of them include:
- Its popularity is due to bakery products' appealing taste and various health benefits.
- Manufacturers are responding to consumer demands for healthier options by using various nutritious ingredients such as wheat, maize, rye, and oats in bakery products, providing health benefits and fulfilling taste preferences.
- Bakery products offer a convenient and affordable option for daily consumption or serving at parties and gatherings, making them accessible to people from all sections of society.
- Demand for bakery products, like bread and biscuits, is increasing due to their suitability for daily consumption, leading to a boost in demand for these products.
- The expansion of food chains that offer a wide range of food products, including burgers, sandwiches, snacks, and soups, has also contributed to the growth of the bakery industry.
- At last, the online presence of bakery businesses has made it more convenient for consumers to order bakery products at affordable rates. This trend led to an increase in the accessibility and popularity of bakery products, contributing to the growth of the bakery industry.
The trend of selling home bakery products online is expected to continue, providing several benefits for consumers and business owners. Some of the benefits include:
Benefits of an Online Business
Online platforms have become the hub for small business owners in the digital age. Here are several benefits you might also take from an online presence.
Online Presence Helps in Boosting Business
While being an expert in baking is important, having strong marketing is equally crucial to receive the desired response from consumers. If you want to sell your home baking products to places across India, consider enlisting your business on online platforms like Fynd Platform to establish an online presence.
When creating your online store, remember the importance of an attractive design that draws in a lot of traffic with simplicity and fun. In addition, it's essential to know effective tips for selling products on online platforms and effectively presenting your products on social media.
Don't hesitate to ask for help from friends and family when starting. With these considerations in mind, you can ensure a successful online presence for your home baking business.
Wide-Customer Base
Taking your business online can significantly increase sales and attract customers from different locations. As a result, you must be prepared to answer questions such as your unique selling proposition (USP), target audience, a niche in the bakery business, and hero product.
You may receive these common inquiries, but providing answers can help expand your customer base. You can effectively market your products to the right customers by clearly defining your USP and target audience.
Additionally, highlighting your niche in the bakery business and your hero product can differentiate your brand from competitors and increase brand awareness. Therefore, being able to answer these questions can ultimately benefit your online bakery business.
Can Operate from Anywhere
Suppose you own a bakery business in Ranchi and receive negative feedback from a customer in Kerala about the taste of your choco-chip cookies. In that case, they can easily contact the founder of the business to find a solution.
With an online business, even customers from far away can connect with the bakery management and have their concerns addressed. Indeed, flexibility and accessibility are just a few benefits of running an online business.
By managing your bakery items from anywhere, whether a coffee shop or your couch, you can focus on growing your business and improving your products.
No Time Foundation
When you run a bakery business in a commercial area, you might need to close your doors by 9 PM. Similarly, you may only take orders until 8 or 9 in the morning with a home bakery.
However, having an online presence means you're always open for business.With an online bakery, customers can order your products anytime, day or night.
This level of accessibility can help you reach a wider audience and increase sales. An online bakery business allows consumers to place orders anytime, even during off-hours, such as 3 AM or 5 AM.
This means your business continues to operate around the clock, allowing customers to browse your offerings, including various types of cookies and other bakery-related items, and make purchases at their convenience.
Your online presence acts as a 24/7 mouthpiece for your business, constantly promoting your brand and products to a wider audience. For these reasons, it's important to understand how to shift your baking business from a home-based operation to an online platform.
Easy to Track Performance
While offline stores often have a limited understanding of their regular customer base, online businesses have access to various analytical tools like SEO to track and analyze their performance.
With such tools, you can improve your online visibility and attract more customers to your website.In addition to SEO, there are other ways to gauge the effectiveness of your online presence.
For example, you can track daily website traffic and the frequency of repeat visits to calculate customer retention. You can also use social media analytics to monitor engagement rates and reach.
By regularly monitoring these metrics, you can evaluate the success of your online marketing strategies and make adjustments as needed.
To access the advantages of online bakery businesses, consider registering your home bakery on Fynd Platform . Such platforms provide a seamless and hassle-free way to take your business online and grow.
Many people enjoy brownies, a popular bakery item, making it a potentially lucrative niche for a home-based business. If you haven't considered starting a brownie business from home, now is a great time to explore this opportunity.
Make Your Bakery Website with Fynd Platform
Creating an online presence for your business can be easily achieved by building a website on an e-commerce platform like Fynd Platform. The process is straightforward and can be accomplished by anyone with minimal technical skills.
With simple steps, even a basic mobile user can create a professional-looking website for their home-based bakery business.
Step 1: Go to the official site of Fynd Platform and check for the sales channel button.
Step 2: You will find a + icon. It will take you to the option of New Application. Click on it.
Step 3: A window will open, asking you to fill out your details, choose what you want to post on your website, and then click Next.
Step 4: A window will appear. Fill in the required details in it. Choose your domain name from a list of domains.
Step 5: Then select ‘Digital’ in the product type section. Then fill in the types of products available in your store.
Step 6: Add images and content to make it attractive. Write a short description of all your products. Click on save.
Step 7: Set up a suitable payment method.
By following these easy steps, you can effortlessly establish an online website with minimal effort.
Brownie Business from Home
Did you know that companies like Biocon, Capgemini, and Wipro have started a trend of having brownies as their go-to snack with beverages during morning meetings?
Kanchan Achpal, the Chief Marketing Officer at Bliss, has noted that “Brownies have made a comeback. “ the company supplies brownies to giants like Biocon, Capgemini, and Wipro.
According to their findings, people in Bengaluru perceive brownies as wholesome and richer than chocolate and consider them a classic snack that never disappoints.
A few years ago, the Hindu Metro Plus published an interview by Susana Myrtle Lazarus featuring Nishant Vijaykumar, a 25-year-old who started three food outlets in just 11 months of business in Chennai.
Brownies have great potential in various cities across India. Following in the footsteps of Nishant, you too can consider starting a specialty bakery that exclusively sells brownies.
Types of Bakery
When starting a bakery business, it's important to consider the type of bakery you want to open, as it can significantly impact your business. There are generally two broad categories of bakeries that you should be aware of.
Retail Bakeries
A retail bakery is a type of bakery that sells final products directly to consumers. Although there may be variations in the business model, most retail bakeries are small and require minimal staff.
However, a retail bakery typically requires an eat-in space, as most customers prefer to enjoy baked goods while sitting down and savouring their coffee in a comfortable setting.
Here is a table outlining the advantages and disadvantages of a retail bakery:
Wholesale Bakery
Rather than selling baked goods directly to consumers, wholesale bakeries supply their products in bulk to various outlets, including speciality shops, restaurants, grocery stores, and cafes.
This business model allows you to cater to larger clients and sell your products in higher volumes.In addition, wholesale bakeries are less reliant on small individual orders and generate income through regular and consistent orders from their client base.
This predictability allows you to calculate monthly estimates and plan your production and resources accordingly.
The wholesale bakery business model also offers greater flexibility, as you can operate from a leased commercial or commissary kitchen rather than needing a retail storefront.
Though wholesale bakeries may lack the ability to provide customers with a personalized experience in a custom-designed space, they can showcase creativity through product quality and packaging, which can attract customers with visually appealing and sensory experiences.
One major drawback of operating a wholesale bakery is the high overhead costs. This bakery requires additional equipment, employees, and ingredients expenses.
A reliable transportation system is also necessary to ensure that products are delivered promptly and in good condition to their intended destinations.
If you are not prepared for a significant investment, a wholesale bakery may not be your best option. Instead, you may consider starting with a retail bakery and then transitioning to wholesale after establishing a customer base and generating revenue.
Here is a table summarizing the advantages and disadvantages of wholesale bakeries: Pros and Cons
Selecting the appropriate bakery type is a critical decision that can significantly impact your business, including customer engagement, bakery location, required equipment and staffing, and overall investment.
The choice of bakery type is also influenced by the service style you opt for. Here are several categories of bakeries grouped by their service style.
Bakery Cafe
A sit-down bakery or bakery cafe is a retail bakery with a dining area where customers can enjoy their baked goods. This business model is highly engaging, requiring both front-of-house and back-of-house space.
Bakery cafes may specialize in particular products but often provide additional beverages, shakes, and desserts to cater to customer demands.
Counter Service Bakery
A counter service bakery is a bakery cafe that does not offer a dine-in option, and customers order and take their baked goods home. This type of bakery is typically smaller than bakery-cafes, allowing for significant savings due to lower overhead costs, which can be reinvested to offer more products to customers.
Food Truck Bakery
Food trucks are gaining popularity for several reasons, including their relatively low cost compared to sit-down bakeries and the ability to reach consumers in different locations by moving around.
There are two types of food trucks: those with a kitchen and counter service and those with only counter service. Each type has its advantages and disadvantages.
For example, a fully equipped kitchen food truck can be expensive, while a counter-service food truck would require a separate space for production.
Home Bakery
Starting a home bakery is an attractive option for entrepreneurs with limited capital and who are passionate about baking.A home bakery only needs basic equipment, ingredients, and sufficient space.
However, you'll need to establish a delivery method, such as home delivery or online business registration, to reach your customers. In some cases, local customers may be able to pick up orders directly from you.
Specialty Bakery
A speciality bakery is a bakery that focuses on making a few special kinds of baked goods. It can be considered a part of any of the other types of bakeries mentioned earlier.
The key difference is that instead of making a wide variety of items, a speciality bakery only produces a limited range of products.
An example of a speciality bakery is one that exclusively produces wedding cakes. By focusing on this particular type of baked good, the bakery can ensure a high level of quality because they are producing a limited quantity of products.
This allows them to put extra care and attention into each cake, resulting in a superior product. Focusing on specific products and adapting them to meet customer needs is wise. Your bakery type will impact other business decisions, like ingredient choices.
Defining your bakery's scope and plan can help maximize your investment. However, understanding the potential profits is also crucial for a successful home bakery business.
Profit Margin in Bakery Business in India
The profit margin for bakery businesses can vary significantly due to various factors, including bakery selection, pricing strategies, and location.
However, it's worth noting that the gross profit margin for some successful home bakeries can be approximately 9%.On average, the profit margin for bakeries is lower, around 4%.
However, after several years of operation, the profit margin can increase to 20%. While some bakeries struggle to break even, others run with a net margin of 12%.
To accurately estimate your bakery's profit, it's helpful to conduct a product analysis to identify which items generate the most revenue.
Here are the percentages of sales generated by the most profitable bakery products:
- Cookies: 12%
- Bread/doughnuts: 11%
- Cupcakes: 8%
- Sandwiches/wraps: 6%
- Yeast-raised doughnuts and beverages: 5%
Here are some additional tips to help increase your profit in a home bakery business:
- Focus on bread and savoury pastries as they are popular and in-demand items, and providing a variety of flavours and quality options could help boost your profits.
- Learn to bake wedding cakes as they are typically expensive and require less input cost, and happy customers may help promote your business by word of mouth.
To further increase your profit in a home bakery business, consider the following tips:
- Learn to bake visually appealing cakes that taste good and look elegant to attract more customers.
- Consider opening a cookie-focused bakery, as cookies have not yet fully utilized their potential in the Indian market. Start with a few basic types of cookies and then gradually increase the variety over time.
- Expand your reach beyond your immediate network of friends and family by engaging with the local community. This could include setting up a small storefront or participating in local markets and events to significantly increase your sales and revenue.
By implementing these strategies, you can maximize your profit in a relatively short amount of time.
How Much Does a Home Baker Make in India
The income of a home baker can vary significantly, ranging from INR 10,000 to INR 1 lakh per month. However, some home bakers, like Ila Prakash Singh, have achieved remarkable business success.
Ila is a renowned home baker based in Gurugram who started her business with just INR 5,000 and grew it to earn INR 1 lakh per month.
Driven by her passion for baking, she quit her corporate job and started her home bakery business at a time when social media was not yet a factor in marketing.
What are the key factors that contribute to the success of a home bakery business? Here are some of the essential ingredients for building a successful home bakery:
Many customers prefer home bakeries over large companies due to their perceived quality and personal touch.It is essential not to compromise on the quality of your products to maintain customer loyalty and attract new business.
Even as you scale up to meet higher demand, it is important to ensure that your products maintain the same quality and taste that initially drew customers to your home bakery.
Business Plan
The foundation of a successful bakery business is a well-crafted business plan. A solid business plan is essential for growth and longevity in the market.
To maximize the potential of your bakery business, it is crucial to carefully execute every aspect of your business plan and ensure no gaps or loopholes. Doing so can lay a strong foundation for your business and increase your chances of success.
Market Research
Having a deep understanding of the market is essential for success in the bakery business. Knowing the market well allows you to set reasonable prices for your products and increase your sales.
By incorporating all of the factors we've discussed, you can position your home bakery business to be more profitable than many others. Creating a solid business plan is one of the most important steps in starting a bakery business from home.
A well-crafted business plan can help you identify your target market, outline your marketing and sales strategies, define your budget and financial goals, and guide your decision-making processes.
We will discuss in the next section some of the best ways to design a business plan for your home bakery business.
Bakery Business Plan
A well-designed business plan for your home bakery can help you make critical decisions about budget allocation, operational management, and future planning.
Like the human body, a company has various interconnected parts, and the entire system might collapse if any part fails to function.
A business plan outlines each part's workings, ensuring the entire bakery business's steady and smooth operation. Here are some key elements that your business plan should include:
Business Plan Summary
The business summary is an essential component of any business plan as it provides a brief overview of the key elements of the business.
It should cover important aspects such as the legal structure and ownership of your bakery, your bakery's mission statement, a brief history of your business, and your plans for the future.
By including these components, you can give potential investors or partners a clear understanding of your bakery's purpose and goals.
Business Overview
A comprehensive business overview should detail the services and products that your bakery will offer, the unique value proposition of your business, a sample menu with pricing, the physical layout and design of your bakery, and information about your management team, including their experience and qualifications.
This section should provide a clear and concise picture of what your bakery does, how it operates, and what sets it apart from competitors.
Industry Analysis
Conducting an industry analysis is vital for starting a successful business. Just as a researcher performs a literature review to identify gaps in the research area, you should examine your competitors, identify your target audience, and find the optimal location for your bakery to increase its chances of success.
SWOT Analysis
SWOT analysis is a commonly used tool in business management that involves evaluating a business's strengths, weaknesses, opportunities, and threats. Conducting a SWOT analysis can help identify areas for improvement, potential risks, and opportunities for growth for your home bakery business.
By analyzing your business's internal strengths and weaknesses and external opportunities and threats, you can develop more effective strategies to achieve your goals and increase the success of your bakery.
Operations Plan
Your bakery business's operational plan outlines its functioning's various aspects, including details on the menu, services offered, sourcing of raw materials, ordering process for customers, and delivery logistics.
This plan serves as a roadmap for executing daily operations, ensuring that all processes are carried out efficiently and effectively.
Financial Analysis
Financial analysis is crucial to assess the feasibility of your bakery business and potential profitability. This analysis should include a breakdown of your fixed costs, recurring expenses, operational expenses, and cash flow statements.
By evaluating these financial factors, you can determine whether starting a bakery is a viable and worthwhile investment.
It can also help you identify areas where you can save money or increase revenue, thereby improving the financial viability of your business.
Marketing Plan
Before starting your bakery business, you must plan your marketing strategy and decide which marketing channels you'll use to attract customers.
The age of social media, endless marketing options are available, from creating and posting reels to sending out newspaper advertisements or using billboards in your city.
However, ensuring you have all the necessary licenses and permits to operate your bakery business legally is crucial. Once you have a well-designed business plan and have obtained the necessary licenses, you can move on to the other steps involved in launching your home bakery.
Licences Required to Open a Bakery in India
Not only the QSR model, but bakeries also require several licences before beginning operations. Here is a list of licences you will require.
Food Licence
To start a bakery business, you must obtain a food licence from the Food Safety and Standards Authority of India (FSSAI).
The licence can be applied for on the FSSAI official website or through various agencies, which charge approximately INR 5000 to complete the necessary paperwork and issue the licence.
The licence needs to be renewed yearly, but you can opt for a 5-year FSSAI food licence at approximately INR 15,000 to avoid annual renewal charges.
GST Registration
To register for GST, you can seek the assistance of a professional Chartered Accountant (CA) who will guide you through the process and may charge a fee for their services.
Health Licence
To obtain a health licence for your bakery, you can approach the local municipal health inspector. The cost of obtaining this licence is usually around Rs. 3000.
Fire Licence
Once you have installed fire extinguisher cylinders in your bakery, you can apply for a fire licence at only Rs. 1000-2000. Obtaining these licences is essential before starting your baking business from home.
Expanding your home bakery business by establishing an online presence is crucial to staying competitive in the saturated market. It opens up the possibility of reaching a wider audience beyond your local area and helps to increase brand awareness.
To establish an online presence for your home bakery business, you can create a website and social media profiles and engage with potential customers through digital marketing.
A strong online presence can help you grow your business and establish it as a recognized brand in the baking industry.
If you have a passion for baking and have received compliments on your delicious creations, consider presenting your home bakery on the Fynd Platform With the ability to reach large and targeted audiences, the platform can help you grow your sales and revenue.
Starting a bakery business from home can be overwhelming, but don't worry; I'm here to guide you through the process. With my help, you can turn your baking passion into a successful home-based business and delight your customers with your delicious treats.
What is the correct way to price baked goods?
For this, you need to calculate your recipe yield, the cost of ingredients, the time it takes to make a batch, and the cost per serving.
Then consider the overhead costs, such as utility bills, equipment management costs, and staff remunerations. After calculation, you can easily estimate the price of your baked goods.
What bakery type is best?
Well, the answer to this depends on various factors. Your location, transportation facilities, products offered, and investment decisions about which bakery is best for you.
For instance, if you are ready to invest heavily and live in a place where cafes are common, you might go for a bakery cafe.
What are some best bakery business ideas?
In the present days, when social media have disrupted every industry, bakery businesses have seen huge growth. Some of the best bakery business ideas involve social media, such as food blogs.
Other than that, the trends, such as food trucks, dessert boxes, home-baked cookies, wedding cakes, and gluten-free bakeries, are some good bakery business ideas.
What are the different issues in the baking industry in India?
Some of the common issues the baking industry faces are less informed staff, which might lead to loss of sales, low grades that could affect customers' perception, the financial management process, and high competition.
Is home bakery better than other bakery types?
Again, the answer depends on your choices and preferences. If you are ready to invest a good amount of money into your bakery business, you should go for a bakery with a sit-down space.
However, if you do not have the capital to invest, you can begin with a home bakery with orders from your local area.
Which is the most profitable bakery product?
While biscuits and cookies register the highest sales, the cake is one of the most profitable bakery products. It requires less investment and gives more sales and revenue.
So, if you are comfortable with making cakes, you can use that skill to grow your bakery.
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How to Become a Home Baker and Start A Home Baking Business?
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Posted by admin
- Jul 27, 2019
Do you enjoy baking? Are you looking forward to becoming a home baker and starting your own home baking business using your ability to bake yummy treats? Are you still confused about how to start a bakery business from home in India?
Let's Get Started!
This step-by-step guide will help you venture out into the home baking business and become a successful home baker.
Before we begin, there are a few things you need to know in order to make your baking business a success.
Most of us have often thought of starting a business from home. But due to some issue or another, it has always remained a plan and never been implemented. The first and foremost step is to decide on the kind of home-based business you want to start. Make sure that you have identified what you’re really passionate about and have the zeal to begin your journey towards your businesses inception.
For me, I absolutely love and enjoy the art of cooking and baking. So, I started my journey to become a home baker for eggless and sugar-free cakes, cupcakes, cookies and chocolates. I am in love being a home baker today and I am able to make a living from it. Ultimately, it’s your passion that counts.
If you want to learn all the skills to become a successful home baker, this 30-day course with expert trainers and bakers is the perfect course for you! For more information, you can reach out to us at [email protected]
DECIDE ON THE TYPES OF CAKE YOU WANT TO SELL AS A HOME BAKER
How to start a bakery business from home in India? You have to start with cake! You can consider starting off with a basic range of vanilla and chocolate cupcakes and subsequently expanding the range as your home baking business becomes more successful.
A home baker can bake any type of cake, beyond our imagination. But you don't need to know how to do everything - some specialize in selling cupcakes from home or baking gluten-free cupcakes, while others focus on creating amazing wedding cakes.
The idea is simple. Identify your strengths and work towards it. Being different is the key to success, so offer something which helps you stand out from the rest.
GO TO A PROFESSIONAL WORKSHOP OR CLASS
A lot of home bakers start baking by following YouTube videos and trial and error. But if you are looking to become a commercial home-based baker and serve real customers, then its recommended to attend professional workshops or classes from renowned academies or established top bakers or cake artists. Make sure that you have got the right skills to serve better than bakeries. If your delivery will not be as per the client's expectations, then it will lead to a loss of goodwill and will hinder your business progression.
- Bakedemy, India. Started by homebakers.co.in and Anybody Can Bake together - it offers 90-day online only courses to learn everything about home baking, cake decorating including entrepreneurship skills, digital marketing, social media and food photography. This will 100% equip you on how to start a bakery business from home in India. - Highly Recommended
- Lavonne Academy of Baking Science and Pastry Arts, India
- Whitecaps International School of Pastry
GET THE REQUIRED FSSAI REGISTRATION FOR A HOME BAKER
The Food and Safety Standards Authority of India requires any petty business person dealing with food, even if they make less than Rs. 12 lakh per annum from the business, to register their business. This registration is therefore mandatory for everyone who starts a home baking business even if it is from home.
You may think the FSSAI registration is not required unless you are a big food business with employees under you, so it is not something to worry about when you are just starting out. But ensure that you get registered so that you will not face any problems in the future - the FSSAI can levy heavy fines if you run a business without registration. For more details on FSSAI registration and license, refer our article on "FSSAI Registration & Licensing For A Home Baker – All You Need To Know". If you're interested in applying for one, then we can apply for you on your behalf. Click here to register.
OTHER BUSINESS REGISTRATIONS
Consider securing your brand name and logo with a Trademark registration. It is not mandatory but becomes necessary once you become a larger business. It is always useful to keep your brand protected so that no one can use your name and defraud customers. While it might not be very useful early on, it is something to consider as your career progresses. Getting a trademark registration is not very straightforward - it is best to consult an IPR or Trademark lawyer to get it done.
GST Registration - we know that GST is payable on various goods and services that we buy. But have you ever wondered if you are liable to pay GST to the government as a person selling goods - i.e. cakes? You might be liable if you have a high turnover every year. For most states, the threshold of GST exemption is Rs. 40 lakh. So if you don't earn more than Rs. 40 lakh a year, you don't have to pay GST. If you are in a special state - this includes all the seven north-east states and Uttrakhand, as well as Union Territories like Ladakh. Then you will be liable to pay GST if you have an annual turnover of over Rs. 20 lakh per annum. Since not many bakers reach this turnover level immediately, you won't have to worry about this immediately.
REGISTERING YOUR BUSINESS
Since most home bakers start their business alone, they usually don't think about company registration. There are a few cases when you should consider getting your business registered. If you are running your business with someone else as a partner - whether it is a friend or relative - please register as an LLP. This is not mandatory but will ensure you don't get cheated by your partner(s). It will also ensure that your business will continue with your children or other heirs in case you retire or are unable to work. Securing your hard work by getting this registration is very helpful.
If you are independently operating, registration is not a necessity. You could consider registering as a one-person company. But the compliances required every quarter is not worth it if you are operating at a smaller scale. Registration as a private company is also unnecessary - you are the only person involved in the business so it is not needed.
GET YOUR RECIPES RIGHT
Test out your recipes on family and friends. Ask for their honest feedback so that you can make necessary improvements before advertising. Repeat this process until your cakes are the best they can be and becomes the most delicious cakes you’ve ever tasted! This will be the key to a successful and long-lasting home baking business.
When choosing your basic cake recipe, try to find a simple and proven one to work. Here are a few cakes suggestions to get you started:
- Plain cupcakes with different icing variations;
- Flavoured cakes;
- Wedding and celebration cakes;
- Themed birthday cakes; and
- Tray-bakes and bars.
SOURCE YOUR INGREDIENTS
It is very important to ensure you get good quality ingredients and for the best price possible. In India, online stores offer very competitive prices for basic ingredients like flour, sugar and even essences. But some baking specific items like cocoa powder, sprinkles and butter paper usually cheaper in local baking supply stores. If you are a healthy baker, your ingredients are best sourced from organic supermarkets since they offer pure ingredients and often work directly with farmers. Check out this page for special offers on Baking Raw Materials.
THE WEAPONS- KITCHEN EQUIPMENT
Before you can start selling baked goods, you’ll need the right equipment. If you love baking enough to turn it into a part-time business, there’s a good chance that you’ll already have most of the equipment you need. But there are a few things you may need to purchase.
Here are our top 10 essentials for all cake makers:
- A good quality electric food mixer;
- Non-stick cake trays (enough to bake at least 2 batches of cakes);
- Digital scales for accurate measuring;
- Cooling racks;
- Measuring spoons;
- Mixing bowls;
- Wooden spoons;
- Rubber spatula for easier handling of cake mixture and icing;
- Cake cases; and
- A good oven.
STOCK MANAGEMENT
Stock control for a home-based cake business need not be a complex process involving copious hours of work. Essentially, you just need to ensure that your ingredients don’t go out of date, and you maintain accurate records of items purchased. A simple spreadsheet will be sufficient for most bakers selling cakes from home, but you may want to invest in a simple stock management system once your business starts growing.
COSTING AND PRICING - AN ISSUE FOR MANY A HOME BAKER
Many people tend to price their cakes much cheaper when they start out so that they can gain expertise and clients. However, this will not be sustainable in the long run because you will become known for cheaper cakes and therefore your clients will not be willing to pay later. Always value your time and effort no matter what expertise you have in baking. One big hurdle that new and experienced bakers face is getting the pricing right for a cake. A basic formula people use is 3 times the cost of the ingredients used. While this is just a general rule used, it isn't the best. You need to factor in these costs, but you also have to value your time & skills. You need to ensure you are earning a profit through your business.
HomeBakers.co.in have designed a detailed Baker's Pricing Calculator, that's reviewed and approved by Ms Ashwini Sarabhai, one of the Top Cake Artists in India as per Cake Masters. It's available in Microsoft Excel and Google Sheet versions. You can purchase both the versions from us just for ₹500. If you're interested, click on "Buy Now".
Delivery is an issue that most home bakers face. Most of the bakers deliver the cake personally or have clients picking it up from their doorstep. Some have resorted to taxis for delivery. Some of them have tried other delivery services too. However, delivery still seems to be a problem for many. A tip is to always do what works best for you. Many bakers strictly offer only the pickup option or even delivery only. This depends on what is convenient for you. Pickup works if you don't have the time or resources to personally drop off cakes. Delivery works if you don't want clients to show up at your house throughout the day and disturb your routine, or if you are worried a client won't know how to handle an intricate cake and might damage it.
SOCIAL MEDIA MARKETING
Your first impression matters a lot. The presentation and taste of the Cake will help you mark your first impression. If you happen to gain one satisfied customer, that will lead to many more. A satisfied customer is essential; this is an industry that thrives on word of mouth marketing which, other than the internet, is the primary source of marketing. Facebook is the most popular among home bakers, closely followed by Instagram and Twitter.
Many home-bakers indulge in some more marketing. Some bakers send out mailers to their client list built over the years, others put up stalls in schools, apartments, flea markets etc. to promote their bakes. Overall, the marketing may appear to be very rustic, but it works.
We work with several home bakers across India to help customers get the exact cake they want! Sign up on our website as a baker by clicking here .
WEBSITE AND PHOTOGRAPHY
Some well-established home bakers are taking their business to the next level by having their websites up and running. Once you start getting sufficient orders and people are looking up your page on social media, block your domain name. Get a website as soon as you can and focus on uploading good quality photos. In the baking world, photos are the best way to sell.
The images of cakes that home bakers create are usually posted by them on popular social media channels or their Facebook pages. A large number of home bakers click the pictures themselves. Some have learnt the art of photography over time and others have family members and friends helping them.
Another important aspect of this is branding. Ensure that your orders go out with your business card always. Make sure to customize your boxes & another packaging so that your logo and brand name are clearly visible. This leaves a lasting impression on people and they will be more likely to remember your brand and recommend you to others.
Digital Marketing requires skills and experience to make it work effectively. Even if you build it over time, it can take a lot of your bandwidth which you can spend in baking more cakes. HomeBakers.co.in offers Digital Marketing exclusively for Home Bakers for as little as ₹5000 a month. If you're interested, then email your interest to [email protected]
UPDATE YOUR SKILLS CONSTANTLY - NEVER STOP LEARNING
For any home baker, trends are very important to follow and learning never stops. You can do so by watching videos on YouTube or by attending workshops and classes. But make sure that you constantly keep your skills up to date. Clients keep up with trends and the business is all about trends. If you don’t know how to make an item that they want, it will hinder your business progression.
Additional Tips
You should reach out to an event planner or a wedding planner in your friend circle. Partner with them and you will always get their orders for any event they organize, whether it is a 100 person birthday party or a 1000 person wedding! Another way to kickstart your business is to reach out to local businesses like supermarkets and other grocery stores, or even bakeries that don’t make their own produce and contract to sell them a specific dish on a daily or weekly basis as per their needs. This will ensure a steady income for you and will help you carve out a niche.
The best way to begin custom orders is by telling your friends and family that you take orders, and to post on social media. Ask your personal circle to spread the word and leverage that to retain clients. Always ensure that you have a social media page dedicated to your bakes, both on Facebook and Instagram. This way, potential clients can see your previous work.
- By Anjana Lath and Akhileshwari Anand Raj - Updated on 27th July 2019
Using an online platform like HOMEBAKERS.CO.IN is also a great idea, since it removes the tension of looking for clients and getting orders. You only have to focus on your craft. Hope this article helps you with your endeavour towards baking.
To keep getting inspired, do not miss out to get the latest updates on our events, blogs and newsletters on https://homebakers.co.in
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Starting a Home-Based Bakery Business in India: A Step-by-Step Guide
A home-based bakery business is a food-based business that operates from the owner’s home. It involves producing and selling baked goods such as bread, pastries, and cakes to customers. Home-based bakeries are typically small businesses that individuals or families run. They offer the opportunity for bakers to turn their passion for baking into a profitable enterprise while also providing the flexibility and convenience of working from home. Starting a home-based bakery business can be challenging but rewarding, as it requires hard work, dedication, and a commitment to producing high-quality baked goods.
Starting a home-based bakery business in India can be a rewarding and fulfilling experience, especially if you have a passion for baking and creating delicious treats. Here is a guide to help you get started:
- Determine your niche: It’s important to decide what type of bakery products you will specialize in. Will you focus on cakes, breads, pastries, or a combination of all three? Consider what sets your bakery apart from others in the market and how you can differentiate yourself from the competition.
- Obtain necessary licenses and permits: In order to operate a bakery, you will need to obtain the necessary licenses and permits from your local authorities. This may include a food business license, a trade license, and a food safety license.
- Create a business plan: A business plan will help you define your target market, outline your marketing and sales strategies, and set financial goals for your business. It’s also a good idea to research the competition and determine how you will stand out in the market.
- Set up your bakery: Consider the equipment and supplies you will need to get started, such as a commercial oven, mixer, and baking supplies. Invest in packaging materials, such as boxes and bags, to package and sell your products.
- Market your bakery: Once it is up and running, promoting your business to attract customers is essential. This can include creating a website, advertising on social media, and participating in local events and markets. Also, consider offering samples or discounts to attract new customers and generate word-of-mouth referrals.
- Stay organized: Running a home-based bakery business can be hectic, so it’s important to stay organized and manage your time effectively. Consider using tools like a calendar, to-do list, and accounting software to keep track of orders, expenses, and deadlines.
Starting a home-based bakery business in India can be challenging but rewarding. Following these steps and being dedicated to your craft can turn your passion for baking into a successful business.
A home-based bakery business can be a rewarding and profitable venture for those with a passion for baking and a desire to be their boss. It allows flexibility to set your own schedule and work from the comfort of your home. However, it is essential to consider the legal, financial, and logistical aspects of starting and operating a home-based bakery. This includes obtaining necessary licenses and permits, developing a solid business plan, and finding the right marketing and sales strategies to attract customers. Additionally, it is important to ensure that your home kitchen meets the necessary food safety standards and to have a plan in place for handling orders, deliveries, and customer service. With careful planning and hard work, a home-based bakery can be a successful and fulfilling business opportunity.
You can successfully launch your Home-Based Bakery Business in India by adhering to these pointers. And, if you are interested in starting a Home-Based Bakery Business in India, you should enrol in our Home-Based Bakery Business course .
You must maintain your focus and discipline after a strong start. But now that you’ve read this, you have a firm grasp on the fundamental ideas and essential elements needed to succeed in the baking industry. Explore the numerous courses and modules in this area on the ffreedom app to gain additional knowledge and comprehension.
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Top 10 Tips on How to start a home baking business in India
Bakery Business
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There could be several reasons for you to leave your high paying job and start a home baking business. I have met numerous home bakers and found marriage, children, and passion were the top three reasons of people venturing into home baking business in India.
As it seems, it is certainly easy to kick start a home baking business in India .
But as you may think, it is not an easy market to crack. Like every business, the home baking business also needs to be handled like any other full-time business, if you like your business to grow and find paying customers. But unfortunately, the marketing part of the home baking business is often neglected and hence most of the home-bakers struggle in finding paying customers.
Cost of starting a home baking business in India?
Though you can start a home baking business with as little as investing in an oven and some basic ingredients, let’s just look at a tentative cost of starting a small home baking business in India.
Startup Cost
Space : If you are starting from there is not startup cost because you will be using the kitchen of your home only and commercially you may look at a space of 500 sq ft that will be approx 50K rent per month and it means an investment of 150K based on 3 months of security deposit.
Business Licenses : So again depending on where you start your business from. If you are starting from home you may not need any license to being with. However if you are starting up commercially you may need to spend about ₹10000 on FSSAI, Fire License and Municipal Licence.
Equipment Cost: A home baking business is easy to start with little equipment investment. To begin with you will need an oven, some tins and trays, some mixing bowls, spatula etc. Keeping the cost for essentials only the cost could be anything between ₹10,000 to ₹15,000. But when you do it at a commercial place you will need to Mixers, Big Ovens, Deep Fridge , Working table, sit out space etc. and combined total for a 500sq. ft it will be about 600K of expense
Ingredient Cost: Depending on what you would want to begin with either cakes, or cookies, or bread, you will need to create a list of ingredients that you will need. Some ingredients are just too common in almost all type of bakes and some are specific to the type of bakes you may bake.
In our 30DaysBakingChallenge program we make people learn Muffins, Cupcakes, Cakes, Frosting, Cookies, Pie, Tart, Blondie, Brownie, Bread and Buns. So they do 30 recipes in 30 days and the cost of ingredients for all of these is about ₹7,000. And in a commercial space you might need little bit more ingredients because you will need to keep items on display and the cost of ingredients will go upto 20K
Packaging Cost: When you need to sell your products, your products should appear great in the way they are packaged. Packaging is the first thing the customer is going to see before even tasting your product. Moreover muffins liners, cake box, etc. which are bare minimum you will need all comes under packaging cost. It is difficult to calculate the cost of packaging because it will depend on the quantity you would want to buy, however based on the investments levels above, let approximate it to ₹5000. At a commercial space, you will need more packaging items and the cost could be around 10K.
Marketing Cost: Your letterheads, business cards, logo, packaging design all comes under marketing cost which is the bare minimum you would invest in. The marketing cost will involve a lot more as you grow but to begin with lets but an approximate cost of ₹5000. The marketing cost for a commercial space will be much higher than this. You will need a good looking display board, Newspaper inserts, some invites to influencers and cost on it. This all will cost approx 100K.
Miscellaneous Cost: There are many expenses that we cannot factor in and they depend from individual to individual, for example transportation cost. This could be because of you travelling to different places to procure the equipment and ingredients or may be delivery charges of the items etc. Sometimes depending on place to place the cost of packaging, marketing etc. could be higher or lower. So let’s keep a ₹10,000 into miscellaneous for all those unknown and UN-factored expenses.
So brings the startup cost to
Space + Business Licence + Equipment + Ingredient + Packaging + Marketing + Miscellaneous which is on the lower side is = 0 + 0 + 10K + 7K + 5K + 5K + 5K = 32K
And on higher side is = 150K + 10K + 600K + 20K + 10K + 100K + 10K = 900K
Now in addition to the startup cost, there are monthly fixed expenses and variable expenses you should also factor in. For the initial period, I always recommend you to keep fixed cost as minimum as possible and try to keep more of variable cost.
- Bank Loans-EMI
- Website cost
- Professional fees like CA
- Tools & Software’s
Variable costs
- Taxes (GST)
- Marketing and Advertising
- Printer Ink
- Ingredients
- Electricity
So looking into the above a home baker can get started in as low as ₹32,000.
Create a Business Model
A business model is the way a company works. It’s how it’s all main area functions together. Assume of a company as a human body. A human body is made up of so many organs and parts and they all work in a harmony. But if either of the body organ stops functioning, the entire body starts to suffer.
Same is the case with a company. All different function areas of the company needs to work in sync. It is always easier to understand how a company works if you clearly identify the different function area that make it up. This is where the business model canvas will come handy. We discuss the Business Model Canvas in detail in our 30DaysHomeBakerChallenge Program. This program is specially designed to help home bakers kick start their home baking business with all the required business knowledge to grow their home bakery.
Choose a location for your home baking business
Whether you decide to start your home baking business from your home kitchen or you decide to rent out a kitchen the location plays an important role for your business. Now if you are in a locality you have lot of college going students, working people or a place which is surrounded by office complexes, chances are that your business will find more clients than to a place that is quaint or a place that is outskirts of the city.
If you decide to start a full-fledged bakery then a high-end shopping plaza with heavy footfall is one of the most ideal place. Taking a place that is divided into two floors or you are able to divide the space into two floors by creating a mezzanine floor would be an ideal situation. This will give you an ability to create sitting area for people to enjoy your bakeries.
Before you finalize do ensure that you are permitted to use high end ovens in that space and that you have water supply in the premises.
Get all the licenses to start your home baking business in India
Whether it is FSSAI, GST, Health License Police Eating House License, or Fire License, it is advisable to get these licenses beforehand. Once you start your business, you should really be worried about government bodies obstructing your business days. After all each business day will cost you much more than getting licenses in the first place.
Name and logo of your business
Your brand logo acts as a face of your business. It makes you recognizable. Your business name is what they will recognize you with. Your brand name must be simple, easy to remember, and talks about the values of your business. Your brand logo should be memorable and should leave the desired impression of your company on peoples mind.
If you intend to open eat out place then you must keep a minimal theme designed with elegance. Keep a design aspect that help you display your products at the most noticeable place to your customers.
Book a domain and create email id
Online presence is one of the most important thing in today’s place. Just a one page website is enough for you to show your presence and appear more legit business which position you above then the other business who do not have a website. Along with website you also create a professional email id like [email protected] . This affirms the people interacting with you to believe that they are talking to an established and strong business identity.
Block social media handles
Once you have decided your business name, get on to the social media that matters most and block all the social media handles. It’s no fun that somebody else blocking those social media handles once you have started getting recognition. Essentially when you finalize a business name, you must ensure that relative social media handles are available for you to not land up into any trouble later on. At the least, you must ensure Facebook, Twitter, Instagram, Pinterest handles are available for you.
Plan your menu
When you have customers willing to order from you, a well-designed menu helps them navigate through your offerings and then place order. This way you do not leave customers to keep wandering in thoughts of what to order, but help the person in finding the right fit for his needs.
Keep in mind to give a variety of choices to customer to choose from, but do not overdo it. You do not want the customer to get overwhelmed with the choices and then the buying decision gets shaky. Do ensure that you are keeping things in menu that you are really happy baking. Do not keep items in menu that you feel customer would want, rather keep something in menu that you love baking.
And for initial few months keep the scope of modification in your menu as you will analyse what people are liking in your menu and what is in demand.
Price appropriately
Once you have sorted out the menu, ensure that you are pricing them appropriately. Keeping a price based on what others are pricing their product at is a bad way of pricing your products. Your manufacturing cost could be completely different to theirs and thus your selling price would be. Do not undercut the prices as that will lead to nowhere. Create your USP’s in other areas and not on pricing. Keeping your USP on pricing might attract customers for a while, but these are the customer that you will lose the moment anybody else gives a better pricing point to them.
Position yourself well in the home baker space
Now this one is the most important one, and the most difficult one too. When I say difficult, I want to talk about the patience and dedication it needs for you to position yourself and start attracting customers.
When you start your business, it is obvious that you need customers, you crave for them. You want the customers to keep calling you on your phone so that you can make money. In the quest of acquiring customers, the position part is often looked upon.
But without positioning yourself you won’t be able to attract right kind of audience. Nobody knows you, they do not know what you do, and they have no idea why should they choose you on others. And you expect them to come and buy from you.
You will need to spend some time on social media to educate people on what you do and why you do what you do and what’s in there for the customer. And it does not happen overnight, you can to constantly keep telling stories to people so that they are able to recognize you and your band and associate you with the USP’s you have to offer and that’s when you will see the desired customer calling you up.
Position yourself well for all of it to work in your favour.
Now with all these tips you will be able to open hour dream home baking business in India and make it successful!
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Very Informative !!!
Very informative post Thanku so much
Hello ma’am I am also a homebaker and want to give my passion new wings. Plz help me out.
Dear Sangita, Let us know how we can assist you, please. Thanks Team ABCB
Thank you for sharing the detailed information about home baking business. This blog will really help for those who are thinking to baking business at home. Keep sharing such interesting blog posts with us.
Thank you so much for your appreciation. We would be glad to share useful blogs with you.
I find myself to be privileged to know more about You, Sonia Maam. It indeed would be my pleasure to learn baking under your guidance
Hello Sonia Mam and Amit Sir, I am student of ABCB 30DBC season -4, I’m yet to complete some assignments. But before hat with your great recipes I have started getting tiny orders from my friends and cousins.I am baking from home kitchen and am successfully completing the orders. My major question is, can I still keep a brand name for my bakes? Should I take food grade license or any other license (I’m asking this because I am doing at a very extensive pace as I have small kid, I am planning to take it slow and start off officially from next year). Could you please help me on this…. Please
Dear Vydharbhi, If you are sure that you will continue with the home baking business, then you must keep a business name. A name that should reflect the values of your business. Continue to work at a pace that suits you, and that is the beauty of a business of your own. You are the one who decides how much to work when to work, and so on. About the licenses, you should currently only look for FASSI registration.
Stay Safe – Do good Best wishes for your business Team ABCB
Very nicely explained….I wish to start my journey as a home baker soon. This will help me plan better. Thanks a lot
Hello, I wanted to ask, on and average, how much does a home baker earn ?
Juhi, I will answer this with an example. The place where I live I have two grocery stores within a distance of 100m, just outside the society. The owner of the first grocery store has positioned himself as a store keeping quality products only. And the other grocery store has positioned himself as a store offering competitive prices. The obvious difference you will see in both the stores is that at the first store you will find people from middle to high-income range and on the other store you will find people from lower-middle to below middle-income range of people. I haven’t found anyone bargaining for the prices in the first store, and I have never found people complaining about the prices of everything they buy from the second store. In terms of living standards, the owners of the first store maintain decent living standards as compared to the second store owner. And this makes me feel that Store A earns better than Store B. Both of them run a grocery store. So the question of how much a home baker earns will completely depend on how you position yourself in your business.
Thank u sir…very well explained and very informative for all of us….
Thanks much for your kind words, Bhavna.
Thank you.. very informative n well explained
First and very first thing that I want to say is a BIG THANK to the team of anybodycanbake . Every thing is well explained and I really love the information.
Thanks a bunch for your kind words, Jyoti. Cheers!
Very well explained sonia Thank u very much
Thanks a lot, Mamata. Cheers!
Very usefil article. You have covered each and every aspect of starting a home business. I was searching for such articles since long time! Thank you for explaining it so nicely !
Glad you liked and Thank you so much for sharing your positive feedback.
Thanks amit sir its really very informative
Can you please share more insight on pricing the products, is there any cost calculator that is available or should we manually calculate each time.
Nimmy, A general trend that I see many bakers take is to calculate 3 times of the product cost as their final product costing. You may like to adopt this approach. However, if you really want to understand the technicalities of how to accurately price your products, you may decide on joining our 30 Days home Baker Program.
Very nicely explained and i think it will be very much helpful for someone like us who wants to be a successful HOME BAKER. THANKS A LOT Sonia mam….
Thank you .. Its really very informative and very well explained..
Very well explained covered all points, thankyou! Just wanted to add one more expenses electricity bill, how much will it be please share insights.
Thanks, Shital. We will make it a noticeable point instead of keeping it under misc. expenses. Thanks Sonia
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How to Start a Bakery Business In India from Home
A freshly baked hot cake a rich chocolate cake or just a tea-time cupcake or muffins can be a reason for a happy face for anyone. If you want to start your own bakery business in India, then this article can be a learning article for you.
In the last few years, all can witness a rapid increase in the demand for baked goods like cake, pastries and much more are offering affordability and customer convenience. This growth and demand for bakery items are going to lead to bakers based out of home and chefs entering the bakery industry.
As per the report, the bakery market in India is going to grow at a CAGR of 8.5%. That’s the reason people are interested in this lucrative, delicious industry. In this knowledge-based article, let’s get you into a wholesome ideology of starting a baking industry in India.
Let’s start then.
Tips For A Well-Established Bakery
You need to execute a foolproof business plan so you can grow your business with high-profit margins .
Here we are with our special bakery industry tips that can help you in starting your bakery business, in 2021.
With the below-mentioned factors, you can grow your business easily. Let’s start.
Creating A Full-Fledged Business Plan For bakery
A business is always standing upon a super smart plan. A business plan works as a pillar of the business. So you have to spend more time on bakery business planning in India.
You have to clear your knowledge on how to handle the business, budget distribution, future goals of the bakery and many more.
Have a Plan: Firstly start with creating legal ownership of your bakery, a wholesome plan on how to bake and what to bake.
Execution: Secondly, you have to execute your overview i.e. how to deliver your products.
Analysis: Thirdly you must undergo a bakery business analysis. This business analysis can play a significant role as it would help to make out the competition in the location, analyze your target audience, and assist in selecting the perfect location for your bakery business in India.
You have to make a plan on order taking from customers, menu, staff management, service, raw material procurement, etc. You also have to work on marketing and promoting your business. You can go online as well as offline promoting.
Through sponsorship, you can create a promotion for your bakery.
You must go through a detailed study on the strengths, drawbacks, opportunities, and threats of your business. Try to start a financial analysis so that you can manage your recurring cost, cost per item, profits, and operational costs.
Choosing an easy to catch location
The most important step to starting your very own bakery business is to choose a location with high footfall. You can check for highly busy streets, the corporate office sector areas, Beside shopping malls, etc.
The front shop area can be the best place to stand out with your bakery. Keep in mind that you must have your bakery in a place where transport is just a minute away, the place is very much eye-catching.
You can plan your interior according to your place size. But we would love to tell you that if you can have a two-story bakery place, then try an upper-level kitchen or your baking place, and the ground floor is for a waiting lounge, sitting area, and cash counter. Though you can handle it as per your choice and the available space you have.
Always look for a place that has a proper drainage facility and water supply. Always get proper legal documents for the place you are arranging.
A No Objection Certificate should be provided to you and by the owner of the property. Also, a NOC from the neighborhood should be handed over to you.
Licenses that are mandatory to start your bakery business in India
As a new entrepreneur in the bakery industry, you must have an idea of licenses that are a must-have for a business.
There are five most important Licenses that are: FSSAI license, Local Municipal Corporation Health License, GST Registration, the Fire License , and Police Eating House license .
- Apply for FSSAI Licenses through the online website www.fssai.gov.in . also, you can apply through some agency that can take an extra charge as their commission. You can go for a long five-year License so that you have no need to renew every single year. The cost will be nearly 15000 INR.
- You must have a GST registration as you are going to open your restaurant as a business.
- You have to get a Health license from the local municipality health inspector. Around 3000 INR will be the cost of this License.
- You have to arrange a fire license that can be arranged for INR 1000-2000. You will get this License after installing the fire extinguisher cylinders.
There are also other Licenses like Business Registrations, Eating House licenses from the Licensing Police Commissioner of the particular state, Trade licenses, Shop and Establishment licenses, Trademark registration to protect your brand, Certificate of Environmental Clearance (CEC) from the Ministry of Environment.
Creating a business team to run the bakery
A bakery needs an expert who can help you in baking. You have to arrange for the Head chef, snack special chef, and any other special food chef if you want. Here are some of the best baking courses which you can recommend to your team.
Also if you want to serve customers in house eating, then you also need service boys, and helpers. You also need a cashier to handle the daily transaction.
Also Read: How to Start a Food Truck Business in India
You can start hiring 10 to 15 trustworthy people to run your business smoothly. You have to mention your team’s salary as per their work, and experience.
Equipment to start the bakery business in India
You have to purchase whole new equipment to start your bakery business in India.
Pieces of equipment that will be needed to start a bakery business in India are
- Deep fridge
- Working table
- Cooling system
- Storage utensils
- Reusable utensils
- Plates and spoons for serving
- Sheet pan racks
- Table- chair
- Doughnuts cake fryer
- Packaging material
- Display case
- Bread slicer
Displaying the previous orders
You can always display your bakery business in a very creative way. Your display should be designed well and made in a way that anyone and everyone will be attracted to easily. You have a display area that has a proper storage option too.
Installation of Billing software
When you are getting into a bakery business, you have to maintain a billing process because more and more people will come and you have to track your transaction on a daily basis. Try to get well-built software that helps to track a proper transaction throughout the day.
Branding And Marketing of your very own bakery business
If you want to bloom your business with rapid growth, you have to focus on marketing and brand promotion. You can create a proper brand name with a proper logo, depicting the theme on it.
This will assist in creating your brand which will be with the unique identity of your bakery.
Get some big display boards to attract the attention of the people. You can start marketing and promoting through social media sites like Instagram, Facebook, and WhatsApp. You can also opt for buying options on social media.
Go for brand promotion by selecting your staff uniform
Most bakeries ignore this thing. But this can play an important role in brand promotion. You can choose a specific staff uniform that consists of your brand logo and name with a tagline.
This is the way to help the consumers identify your brand easily.
Partnership with online food delivery services
Nowadays, everyone is fond of online food ordering systems. This can be a way to grow your business with the partnership of food delivery apps. We want to recommend you get registered with the online food delivery apps.
You can also go for your own website that will consist of your bakery products, order portal, table booking in your bakery shop, membership in your bakery shop, offers in special occasion seasons, and many more.
Also Read: How to Start a Real Estate Business in India
How Lio can be used in business?
Lio is a mobile-based business purpose software that can help you in tracking the details of your business.
You can track the details like how many orders you have received on a daily basis, how many orders have been delivered to the customers.
You can maintain a review column to understand your food quality based on the customer’s ratings and reviews.
You can also check the monthly data of your business, you can check the profit details, loss details if any. You can add baking items that can be sold on special days.
So, if you are finding an application that will help in business tracking , you can trust Lio easily, Lio has a strong security policy. So, don’t worry about data breaching, or any personal data losses.
Lio is definitely for the win and using it for your business is only going to make your journey smooth and easy to track.
Step 1: Select the Language you want to work on. Lio on Android
Step 2: Create your account using your Phone Number or Email Id.
Verify the OTP and you are good to go.
Step 3 : Select a template in which you want to add your data.
Add your Data with our Free Cloud Storage.
Step 4: All Done? Share and Collaborate with your contacts.
How Lio Automation Can Help You Business Process
Automation surely does make a difference in running a business whether small or large. It can be tricky and overwhelming at first to switch all the business processes to automation but not with Lio.
Business automation is used by not just big businesses but all entrepreneurs and start-ups. It is something that has really helped companies run a smoother process and learn from their mistakes. Companies who have adopted automation have really made a mark and have from 10X faster with the best possible results.
Lio Automation gives you many amazing features that make your work super simple and effective. There are very many features that will help you and your business in various aspects. From connecting and staying in touch with your customers, to working together as a team, and everything in between, Lio Automation will truly make your business run smoothly and make it reach new heights of success.
If you are using Lio Automation for your business processes consider all your data safe and secure all the time. Not only is the data saved in the cloud, but it also offers a data versioning feature in which you can actually see the many changes the document or file has gone through and who has made those changes. You can save the version of the file as required by you.
Since customers are a big part of any business and staying in touch with them is a crucial job, Lio automation gives you the ability to automate Whatsapp communications . Automating WhatsApp communication is another popular trend that businesses can benefit from. With the help of this, you would be able to save a lot of time, boost your customer retentions and renewals, save a lot of money, have lower operating costs and much more.
Not just this, Team management and work allocation are made super easy with Lio Automation. You can also work with teams in real-time and see all the changes happening.
You can share invoices and receipts with your customers while also sharing the payment links with them to make the whole transaction process smoother and absolutely hassle-free for everyone.
You can create dashboards for each file which would give you the clear details of your company’s operations, marketing campaigns, sales and other analytics. This is one useful feature that would truly make a difference to your business and help your see all the processes clearly so that you can make well-informed decisions.
There are several other amazing Lio automation features that are made so that you and your business can benefit from them. Excited to know more about it? Start with your Lio automation process for your brand and start your journey to success.
Frequently Asked Questions
Is the bakery business profitable in india.
An average of 60,000 to 1.2 Lakhs per month can be earned through business in India. You can earn more if you can expand your menu and other effective factors for the bakery.
How can I start my own bakery business from home in India?
Yes, you can start your very own home-based bakery by following a few steps:
– Decide the menu and special baked items that you will supply – Follow the chefs on social media to get a piece of knowledge on high skills – Join professional baking classes – Start selling at your neighborhood first – Get your recipes properly
How do I invest in a bakery?
You can invest a minimum of 5 to 10 lakhs if you want to run your bakery in a professional manner. Try to get some business loans. This can help you in setting up the business.
How much do home bakers earn in India?
As a home-based baker, you can earn nearly 10000 to 25000 as per your orders. You need to improve your quality on a regular basis.
How do I make my cake business successful?
There are several steps that you can follow to be successful. Such as:
– Register with your local council. – Go on a food hygiene training course. – Practice more and more – Develop a niche. – Research the industry and your market. – Get some good recipes behind you. – Be willing to put in the hour. – Build a website.
So we have discussed the minute details of how to start a bakery business in India . Now it’s your turn to step into the delicious industry and make your footfall strong among all.
With passion and dedication towards your own bakery business, I can ensure you that you will take off with your bakery business easily.
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Surabhi Guleria
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Where can I find cheap or second-hand equipment for my bakery business?
Hi Akash, thankyou for the question. You can surf online and find various sites where they sell second-hand/cheap bakery equipment. Research well and choose wisely according to your requirements.
What kind of records do I need to keep for my bakery business?
Hello Abhay, thankyou for the question. There are many records which you need to keep safely with you. Some of them are Baking business contract , Vat and trademark registration records ,baking business order forms, item rental contract, partnership contract and more.
While reading this story, I came across the phrase “police eating house licence.” Could you briefly explain the significance of the same?
Hello Gopika,
An essential license for operating a company where any type of food or drink is provided for legal consumption is an eating house license. The Delhi Police Act is in charge of policing it. Along with other permissions, the license is necessary when a food business is established in India.
First and foremost, one must comprehend what an eating house is in order to comprehend the prerequisites for obtaining an eating establishment license. The definition of an eating house is “Any place which offers various things relating to food or drink to the general public for consumption. This includes all stores, eateries, dhabas, food trucks, cafes, and other businesses that serve food and beverages.
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