Are you planning to start a bakery in Delhi? Not sure what you need to do in order to accomplish it?
If you answered yes for any of the above questions then this is the bakery guide for you. Opening a bakery is not simple or easy, least of all in Delhi, and requires a lot of proper planning and execution. You need to run a proper research in your location or the area where you are likely to open the bakery and do a proper analysis before proceeding with anything.
Running a business is not quite straightforward and requires a lot of strategic and management planning which can often be overwhelming for new entrepreneurs. Don’t worry though because we have prepared this guide to help you in setting up your own bakery in Delhi and in successfully managing it and growing it with time. It might take a year, more or less, for you to properly start your bakery but if you are passionate about it then you should not let this stop you at all.
In this article, we will discuss all the initial steps that a new user must take in order to initiate their bakery business and what all important things need to be considered before you can actually own a successful bakery.
Step:1. Converse with a Few Bakery Owners
You need to start by scoping out the bakery business in Delhi which can be done by talking to existing bakery owners who own a successful bakery. Try to gather information on how they started out and the challenges that they faced in the beginning. This will help you in preparing yourself and will give you some time to come up with a solution for these challenges so that you can learn from their mistakes.
Also, talking to other bakery owners will also give you an insight into how much time it takes for the bakery to grow and become successful. You will also get an idea of a tentative timeline for the various milestones. Apart from that, talking to other successful bakery shop owners will give you a clue as to what works well in a new bakery and what can turn out as a mere disaster. So, gather all this information by contacting several bakery owners and then prepare a business plan for your own bakery.
Step:2. Decide on your Bakery Style
After you have collected information from different bakeries and their owners, you need to choose a bakery style for your business. To select a bakery style for yourself, you need to plan your budget, goals, and talent. Don’t randomly pick any bakery style because that could turn disastrous for you in the long run. So, do a local market research to determine the type of bakery which will be successful in your situation and location and then choose the right one for yourself. There are mainly 4 types of bakery styles:
In a home bakery, you don’t need to open a shop and can work from the safety of your house saving both time and money. This is the perfect bakery option for people who don’t have a lot of budget or funding options and want to minimize their investment. For a home bakery, you need an order procedure in place, either online or through mobile. However, one thing to remember is that you won’t be able to grow it much and might have less work in the starting but a home bakery is the best way to determine if this business is for you or not.
Bakery with Seating
This is a popular bakery style which can really help you in earning a lot of profit as customers are likely to visit your bakery more and buy more baked goods from here. However, you will need to rent a space for this and then invest in the furnishing of the bakery which can make a huge hole in your saving so think carefully before going for this option. In this type of bakeries, you have a counter section where customers can order and a seating section where they can take their baked item and sit and enjoy their dessert.
Bakery with Counter Service
Another popular bakery style in Delhi is the Counter bakery style in which you have a small commercial space for your customers to order and then pick up their baked goods. Such a bakery store doesn’t have any seating arrangement so you don’t have to spend too much in furnishing and the whole process is quite easy and straightforward.
If you are good at baking some particular baked good then you can also open a specialty bakery. You can run this type of bakery from a storefront or your own home and the only focus is to create specialized items. Decadenz in Gurgaon is an example of this as they serve special jar desserts which is a unique concept and gives them an edge over other bakeries.
Step:3. Check your Financial Condition
Once you have decided on the appropriate bakery style for yourself, you will need to determine your financial status to understand if you need to apply for a loan or not. If you are going for a home bakery then you probably won’t need much funding. You just need to ensure that you have the necessary kitchen and baking equipment and permits in place and then you can get started.
However, if you are opening a bakery storefront, then you need to evaluate the amount of money that will be needed for the entire set up. This will include your rent, permits fees, equipment and ingredients purchase, delivery service, and so on. Depending on the location of your bakery store, you might get a cheap or expensive space but if you are renting an area in a popular part of Delhi then be ready to shell out a lot of money. Apart from that, logistics and permits will take up a sufficient amount of your savings too so make sure you have enough money to pay for all these expenses. In case you don’t have the sufficient amount of money, don’t worry.
You can apply for loans at banks or other financial institutions or you can search for an investor for your bakery shop. Once the financial aspect of your bakery is sorted, you are one step closer to your goal.
Step:4. Search for the Perfect Location
The next step is to find the best-suited location for your bakery if you are opening a bakery storefront. For finding a good location, you will have to keep a few essential factors in mind. Your bakery should be easily accessible by public and private transport. It should be in an area where people are more likely to visit and eat and make sure that the rent is within your budget too. Another thing to check would be that there shouldn’t be any successful bakery near your decided location as this can greatly impact your business. However, if you still want to open in such a location, then make sure that you have a uniqueness in your bakery which will give you an edge over the other bakeries in the area.
For scouting a good location for your bakery, you will need to check out the real estate ads and websites a lot and might also need to take help from a broker agent. Make sure that you check out the locations carefully and inspect them properly before making any deals. You should also ask a plumber or a technician to take a look at the space before you rent it out for your bakery to avoid any bad surprises.
Step:5. Get the Required Permits
Once you have rented the location for your bakery shop and are good to set it up, you need to get the required licenses to proceed. For setting up a bakery in Delhi, you need to get 3 compulsory permits: Food licenses, local municipal health license, and GST registration. There is also the fire permit that you need to run your bakery shop but that can be obtained you have set up your bakery too.
For the Food license, you will need to contact the FSSAI via their website portal and fill in the paperwork to get the process started. Depending on your business, they will charge a license fee for a year and you will need to get your license renewed every year. You also have an option to get a 5-year permit which will help you in avoiding the renewal fee and you won’t need to worry about renewing the food license for the next 5 years at least.
To get the local municipal health permit, you will need to reach out to your local municipal health corporation and invite an office for your bakery shop’s inspection. You will also need to pay a fee for getting this inspection and permit and once the inspection is complete, you will receive the go-ahead from your local municipal health corporation to proceed.
Apart from the above two permits, you will also need to register your bakery business for GST registration so that you only need to pay a consolidated tax for all the services and resources that you are purchasing or selling.
Once you have all these permits, you can officially start your bakery business but you will still need to get the fire license quickly to avoid any issues. To get the Fire permit, you will need to install 1-2 fire extinguishers in your store and show the inspection officer that you have taken necessary measures to protect your space from any fire hazard.
Step:6. Buy the Kitchen Equipment and Baking Tools
After you have all the permits in place, you can start stocking up and furnishing your kitchen space. First, you will need to get a working table or a counter space where you can perform most of the baking tasks. The next important thing would be to get an oven, freezer, mixer, and other essential baking utensils. You will also need to purchase multiple baking bowls and pans so that you can make large batches of cookies and cakes at a time.
Make sure that you don’t compromise on the quality of your kitchen and baking tools as this will directly impact the quality of your baked good. A good quality, easy to use baking equipment will not only save time and effort but will also produce a better result so don’t go for cheap baking tools. If you are worried about spending too much on the baking tool then you can directly contact the manufacturer for a fair price or you can purchase the required baking equipment for sale.
Step:7. Find Various Ingredients Suppliers
Apart from the necessary kitchen and baking equipment, you also need to stock up on the baking ingredients like flour, sugar, salt, baking powder, and so on. A lot of new bakers think that getting these items from a supermarket in bulk will be smarter in terms of money but this would end up compromising your baked goods. This is so because the ingredients in supermarket won’t be fresh which is quite crucial to baking delicious desserts and cakes.
So, you need to find suppliers for yourself who will take care of all your resources and will provide you with fresh resources like eggs, flour, butter, milk, and so on. Make sure that you choose reliable suppliers for your bakery who offer prompt delivery as this will play a major role in producing consistently fresh and delicious baked goods.
Step:8.Enroll in Bakery and Business Management Workshops
Once you have purchased and set up everything for your bakery, you need to hone your baking and management skills by attending various workshops and conventions for baking. You will find that several food bloggers in Delhi host weekly workshops which can help you in setting up your own bakery shop and in mastering a few popular baked goods. You can contact these food bloggers for individual lessons and can form a networking base for yourself to grow your bakery business.
Apart from baking workshops, it is important that you enroll in a few business management as well so that you have more idea about the next steps in setting up your bakery business and growing it. These workshops will also help you in preparing for the challenges that you might come across and will give you a better knowledge of what to expect out of your newly opened bakery store.
Step:9. Determine the Manpower
Another important step that you need to keep in mind is to hire staff for your bakery shop. If you are opening home bakery then you don’t really need to follow this step but for all other bakery styles, this is a crucial step to follow. You will need to hire a delivery guy, a cashier, a server, and a baker help to get your bakery shop started. Once your bakery shop expands you will need to get more people to help you out but in the starting, you need at least 4-5 workers for your bakery shop.
If you are planning to bake in your bakery shop then you will also need to hire a manager for your shop who will be able to talk to the customers and answer their queries and solve their grievances. You can’t bake and manage at the same time so don’t make the mistake of trying to do that. If you are uncomfortable with someone else looking at the bakery storefront then you can get your family involved in your bakery shop. So figure out the number of employees that you need and then put up ads and take interviews to find the best-suited people for your bakery.
Step:10. Determine the Delivery Method
Once you have everything else in place, you need to figure out the delivery method for your bakery. Are you going to deliver the baked goods or the customers are supposed to pick up their order? Do you offer home delivery service to a large area or is it limited to a small section?
All these questions are important and should be considered when you are selecting a delivery method for yourself. If your bakery doesn’t offer home delivery then you might lose the convenience factor and lose a lot of customers in turn. On the other hand, home delivery will require you to keep an employee solely for making deliveries every day.
Also, make sure that you mention the areas where your home delivery service is available. If your shop is in Connaught Place then you cannot deliver to Gurgaon or Dwarka as it would waste a lot of time. So be careful while setting up the delivery rules for your bakery.
Step:11. Market your Bakery Using Different Mediums
The final step is to promote and market your bakery so that everyone becomes aware of it. For this, you will need to get a professionally designed logo for your bakery shop and maybe even a website which displays all your creation. Create an account with your bakery name and logo on Instagram, Facebook, Pinterest, Twitter, etc. and post presentable pictures of your bakery and your creations. Share these posts with your friends and family to increase your reach and ask them to share it with their friends too.
Apart from sharing on social media platforms, you can also send emails to people to inform them about your bakery and can also invite prominent food bloggers to review your place. Another great method would be to make pamphlets of your bakery shop and then share it with everyone in your area. Try to broadcast about your bakery as much as possible and create a buzz around it.
You can also hold a bakery sale or give discounts to the customers in the starting to lure them in. Build a loyal customer base for yourself and get good reviews for your service and your baked goods. Once you get the word out about your bakery, it will barely take time for your bakery to grow and become quite popular in the area.