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How much does it cost to open a bakery

If you want to know how much does it cost to open a bakery, you are thinking of opening a very profitable business because it is present in almost every neighborhood in the United States.

In fact, it is the store that everyone turns to when they need a birthday cake, and other exquisite products that meet the daily satisfaction of the community where the store is located.

How much does it cost to open a bakery and tips

Asking you how much does it cost to open a bakery, you must think that it is an expensive business, since it all begins with the lease of the physical space that must be spacious enough to store supplies, which must meet quality standards and space for customer service in addition to the space reserved for administration.

Costs: To this you must add the hiring of employees in addition to the lease or purchase of commercial equipment. For this reason, the initial cost for opening a bakery is estimated between 10,000 and 50,000 dollars.

If you manage well in the business with quality in the products you sell and also, your employees maintain a good relationship with customers, you can earn money.In fact, there are statistics that indicate that in the United States there are about 6 thousand bakeries as a retail business. minor, whose annual income exceeds $ 3 million.

Equipment financing:

Using the financing of the equipment is an advantage for you, as for example the refrigerator, the oven and the pasta processor you can finance them, which you can do in an online market.

In this way you will reserve your bank line of credit, your credit card and your capital for other things that you will need in the future, that is, you will save your liquid capital for any unforeseen event.

Don’t spend more than you need: You will have already thought about and registered your trademark, but that trademark does not need to be placed on each of the products, at least at the beginning you can sell them in a blank paper bag.

In fact, if you print a significant number of bags, boxes, etc., you may find that they are not the size you need, since at first you do not know how much you will sell or which products have a better reception.

So be patient, because it will be your own clients who will alert you when you will need to start printing the bags, as it is an expense that you should know how to take care of.

The customer base:

Build your customer base by going to events in the area, ask the organizers if they give you permission to set up a table with samples of your products.

On the day of the event, take your business cards with you, but without using that event as if it belonged to you and with the aim of selling. Show your appreciation for allowing you to meet potential clients.

You just have to make sure that the guests know who you are and that they know where they can find you, because if they have liked your samples, word of mouth, neighbor to neighbor is one of the best advertising tactics you can do.

Percentage of costs and profits:

A retail bakery without seats and considering that it is a business with controlled fixed and variable expenses, can have the following percentage of costs and profits:

The cost of the products including the packaging and the ingredients should be 25%, the labor of the products for sale should be 35%, the general expenses should occupy 30%, being that in this way the profits would be 10%

The credit cards: Open the possibility of credit card sales and announce it to your clients, as they must know that you accept them. In fact, some stores do not advertise it because they reject the idea of ​​payments that correspond to sales with credit cards.

The quality of products: Think that bakery products are more expensive than what a consumer can pay in the supermarket, therefore if the quality of the products in your bakery is not superior to that of the supermarket, why will customers pay more in your store if the quality is not higher?

How much does it cost to open a bakery: how to estimate a budget

Average costs to open a bakery

Budget to open a bakery:

You must know the budget you need to open your bakery so that you can ensure success, since it all depends on a series of factors such as the location and size of the commercial premises and the products you plan to sell as well as the personnel you will need to hire.

In fact the budget for each bakery is different, but through the estimation of the income, the stipulation of the forecast expenses and the planning of the contingencies, it is possible to formulate a budget.

The first thing you should think about is the money you plan to make through the sale of the products.

So one of the components of revenue planning is the types of products you plan to sell, such as muffins, cookies, and breads.

The second component is that you make sure that your prices will be competitive and that you can still make a profit.

The pricing strategy should always be in your favor, even when it comes to custom work such as a wedding cake.

Startup costs:

The costs of opening a bakery are many when you start from scratch, because you will need to buy all the baking materials, including mixers, ovens and other basic needs, therefore it is estimated that it is necessary to have an average of 40 thousand dollars, But if you have decided to buy a franchise, the initial cost may be higher, exceeding $ 420,000, including the expenses related to the rent.

Where to open a bakery:

If you doubt where to open a bakery because you do not know the best states and cities to open it, you should know that the best or at least those that are located in the first places are in New York, because it is the city with the best bakeries, then Delaware is It ranks behind New York in second place. In successive places are Ohio and Oklahoma.

Oregon, Pennsylvania, Washington, Florida, Massachusetts, and California are also places where a bakery can be successful and among the best.

But the rest of the country has good bakeries and one of them may be your undertaking, because buying or deciding to rent a physical space near a school pole is a good idea because it is a very crowded sector of your neighborhood and therefore you will have a greater possibility of sale.

Average costs to open a bakery

equipment $ 46,000
Materials $ 4,500
Rent or rent (2 Months) $ 2,100
Site modification $ 5,000
Signage, stationery, etc. $ 1,000
Consultancy $ 1,000
Supplies $ 600
Additional costs $ 9,800
Total business cost $ 70,000