Top four recommendations on how to make a bakery even more profitable
Opening a bakery is the dream for many people. It is a challenging but rewarding endeavour. However, once one gets past the sleepless nights and uncertainty, and the business is up and running, other challenges such as surviving the fierce competition may become bigger concerns. There will not only be worries about staying afloat, but also about making the bakery a go-to spot for people who love delicious pastries and handcrafted speciality products.
There are plenty of areas where bakeries can grow strategically while taking advantage of the latest industry trends and consumer needs. For entrepreneurs looking for ways to bring in more money to a bakery business and attract more clients, here are some top recommendations on how to make the business even more profitable and successful.
Plan ahead of time
Something that may not be specific to bakeries only, but to all kinds of businesses, is to set high goals and plan accordingly. If goals aren’t set or they’re set goals too low, it’s hard to know what the business is striving for and that could limit its potential. By setting high goals one establishes a bigger challenge, and planning to achieve the goal is the recipe for both the bakery and its owner’s success.
Therefore, regardless of what business idea is in the offing, planning and preparing ahead of time can be the key to long-term success. One of the first steps to starting an entrepreneurial journey and expanding a baked goods business is writing an efficient bakery business plan. Having this type of document in place will objectively evaluate the business idea and it can also help with taking a step back to see if there is a real opportunity to grow in the baking industry.
It will give clarity on what’s needed to secure funding and how to go about a marketing strategy to reach more customers and create good brand awareness.
Owners should outline a vision and mission statement, as well as a value proposition. Also, the main focus should be on a specific niche – for example whether the bakery will offer gluten-free, keto-friendly pastries, frozen desserts or some savoury items.
Control purchases and use of raw materials
Generally, raw materials in bakeries make up around 25% of the cost of a product. When running a bakery, managing the expenses of raw materials can be one of the easiest tasks if some tactics are followed – like optimising products’ recipes to have control over their materials costs, optimising the production quantities to control waste because of unsold products, for instance, establishing various production quotas for each day of the week. It can also be smart to buy dry stock in larger quantities as a way to benefit from better prices but this depends on whether there’s enough storage capacity in the bakery.
To make more money from a bakery and at the same time attract new customers, owners must find good suppliers. What is a good supplier? First, it should be one with low prices so that it’s possible to get optimal profit per pastry and product.
Keep an eye on overheads
Keeping an eye on overheads can help a bakery become more profitable. Overheads refer to administrative, commercial and payroll expenses that a company has, which are essential for the business profitability.
Controlling these can contribute to the bakery’s increased profitability. It’s a good idea to list all expenses, in order of cost, to identify those unnecessary ones that can be cut down.
Consider interior design
The design of a little bakery can make a world of difference when it comes to making more money. Should it be a place where people go to socialise with friends or is it the perfect place for people to get their morning coffee and croissant?
Regardless of the vision, it’s a good decision to try to decorate according to the type of atmosphere and feeling one wants to create. Some things to generally keep in mind when decorating a bakery are that the entrance should create an inviting feeling and the space should keep customers coming. For example, it could be that there are relevant paintings or posters in the right places or the right type of lighting.
Conclusion
When looking to enhance the profitability of a bakery, it’s important to keep up and develop a strategy to avoid losing out on great opportunities. Using the above tips will enable bakers to boost their sales and get many new customers in no time.
The editorial unit
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