Bakeries are a minefield of unique challenges. From the shelf-life of baking ingredients to increasing competitors and the ever-changing consumer demands, entrepreneurs find it challenging to turn their business into a profitable enterprise. Here are some guidelines for a thriving bakery business:
1. Establish a business plan
A business plan is a vital strategic tool for every entrepreneur. It will help you run your baking business with a more cohesive vision and look at it from every angle. A business plan is your roadmap that details the necessary steps to help you make your business ideas succeed. When creating a plan, you need to define your mission and business objectives, analyze the market, examine your competition, list your products and services, and explain your start-up costs.
2. Assess your start-up capital
When assessing your start-up funds for your bakery in NZ, you’ll first need to come up with a complete list of equipment. This ranges from appliances like refrigerators and ovens to baking essentials like small wares, mixers, plastic measuring jugs, and pans. You won’t be making profits overnight, so make sure you have sufficient capital to live on while establishing your startup.
3. Set an accurate price for your baked products
Reasonable pricing is vital to attract customers while you make a profit. Remember that you are not in the business to give away your products. However, your prices must reflect the quality of your baked goods. Do not compromise on the ingredients used if you don’t want to be at the bottom of the competition.
4. Promote your brand online
It’s not enough that you are baking fabulous cheesecakes, great muffins, and the best pies. You have to market your business and let everyone know that your brand exists. Since you are just starting, it would be wise to go for low-cost or free marketing strategies. Build your online business portfolio to showcase stunning examples of your baked goods. You can consider maintaining a website or an active social media account where you can share a digital catalog of your products. It would also help to join local business groups like small business associations to forge relationships and reach more customers.
5. Provide the best customer experience.
The success of every business depends on the level of customer satisfaction. Your goal is not only to attract your first clients but to keep them coming back. Satisfied customers do not only become repeat clients, but they act as your brand ambassadors. They spread their positive experience on social media and personal conversations. Try your best to make every customer experience memorable.
Make each encounter matter by building rapport with your customers at the counter. Involve them in your business by asking them for feedback and product suggestions once in a while. Also, remember to hire the right people who are capable of delivering excellent customer service. Bad hires can negatively impact the quality of your products and services and taint the reputation of your brand.
Challenges are common to both start-up and established businesses. With patience, hard work, and these guidelines, you will have higher chances to thrive in the baking industry.