We all want to be our own bosses, don’t we? Starting a business from home is quite an easy task with the given scenario! For most people, creating a bakery business in India is a dream! The demand for baked goods such as cakes, pastries, cupcakes, and other baked items has risen with the pandemic. In addition, people have turned ‘baking’ into a profession and have started to flourish as successful bakery business owners. The baking industry is one of the fastest-growing yet profitable industries of India. If you are looking to start your own bakery business in India, it might just be the right time to get started and reap those profits.
As per the latest studies, we strongly agree that the demand for baked goods is witnessing a steady rise in the Indian market. The Indian baking market is set to grow to 8.5% by 2026 and will reach a value close to USD 12.39 billion by 2026. These numbers stand as a testament to the profits in baking. This article will talk about everything you need to know to start your own bakery business in 2022.
What is a Bakery Business?
A bakery business refers to a business where one produces or sells baked goods. It includes all types of baked food items such as cakes, pastries, cupcakes, doughnuts, popsicles sticks, cakesicles, and everything related to desserts and sweets. A bakery business is highly flexible because it can work both as a retail business idea and a wholesale business. Moreover, the bakery business also offers aspiring entrepreneurs the advantage of starting a franchise bakery business. However, the most significant benefit of starting a bakery business is that it requires a lesser amount of capital when compared to other small businesses. One can start a bakery business from home through social media accounts such as Facebook, Instagram, or other social media marketing channels.
How Profitable is a Bakery Business in India?
It’s now time to answer the question, does having a bakery business in India bring you huge profits? The answer is YES! Starting a bakery business in India is profitable due to the market demand for bakery products and baked goods in India. A typical small business owner who runs a bakery business in India will earn close to Rs to draw out the numbers. 60,000 a month. However, one must take these numbers with caution as the profits vary from one business to another. It depends on various factors, such as the type of baked goods you offer to your customers. In that case, your profits will steadily increase over time. The pandemic has shifted our daily habits and lifestyle to a great extent. Most individuals now look to move towards consuming healthy foods that are prepared in a safe, hygienic, and healthy manner. They are even ready to pay a higher price for products and services that are of high quality. Hence, the profits of starting a bakery business in India depend solely on the distinctive types of baked goods one offer and how different you are from other competitors in the market.
How To Get Started With A Bakery Business In India?
We are now back to answering the crucial question, how should one start their bakery business in India? We have got the answer for you! Here’s a quick step-by-step guide that you can follow to set up your own bakery business in 2022.
Layout Your Plan
The first step towards starting your own bakery business is to start by planning out your entire business structure. You must first create a bakery business plan so that it acts as a foundation for you to streamline your business operations, helps in planning your finances, and allocate resources amongst various other activities. It also helps in forecasting the future growth of your bakery business. “Having or writing a bakery business plan is of utmost importance for everyone who wishes to start a bakery business”, says Ayushi Rawal, founder of Sugar and Spoon, an Instagram-run small-scale bakery business. She points out some of the areas you must look into while laying down your bakery business plan are as follows;
- A brief description of the bakery business plan
- An overview of your business
- An analysis of the baking industry (in a general and specific way)
- An analysis of your strengths, weaknesses, and other opportunities likely to arise.
- A sketch of how you plan to carry out all the operations related to your business.
- A detailed plan on how you will source finances and allocate them amongst various activities.
- Last, yet the most crucial part is to plan all the marketing and promotional activities for your bakery business in 2022.
Deciding The Mode of Operation
Once you have your plan laid down, the next step is to decide how you will carry forward your bakery business. You have to first determine if you are going to set up a physical outlet or whether you are going to run your business through online and social media platforms. If you choose to set up your bakery as a physical store, you must select the right location and ensure that it is located in an area that attracts customers. You are free to choose the scope of your outlet according to your convenience. You must ensure that the selected location has all the essential facilities such as power supply and water supply to help carry forward your daily business operations hassle-free. With respect to running your bakery on an online platform, you don’t need to think about your location; you can operate from any place you wish to. However, you must ensure that all your products reach your customers safely, securely, and timely.
Understanding the Legalities
Understanding the legalities is an important procedure for everyone who wishes to start their bakery business. Whether you have a physical store or are running your bakery business online, you should register your business and have licenses to operate as a baker. The most critical permits, especially for those who wish to start their physical bakery outlet as well as home bakers, are as follows;
- FSSAI (Food Safety and Standards Authority of India)
- GST (Goods and Service Tax)
- Local Municipal Corporation Health License
We recommend you have at least the licenses mentioned above before starting your own bakery business in India.
Purchasing Your Equipment
Here comes the most fun and essential part of starting your own bakery business; it is nothing but purchasing your tools and equipment. We all know that the kitchen tools and equipment used for baking in India are pretty expensive since most are made of stainless steel and are highly durable. It would help if you planned the different types, sizes, and kinds of bakery equipment you will likely need. Some of the major equipment you will need are; oven, microwave, weighing scale, working table, mixers, gas stove, cylinders, storage utensils, and other packaging materials to pack all your finished baked goods.
Launching Your Business
When you, as an entrepreneur or small business owner, decide that you have your entire business flow planned in a phase-wise manner, it’s time to get baking. You are now all set to launch your bakery business. Start by making highly creative and uniquely made baked goods. Promote your bakery business on online platforms and to your target market. You can even partner with online food aggregators and list your businesses on their platforms to get more customers and fulfil their sweet tooth wishes!
As mentioned earlier, the market for baked goods in India is all set to double in the upcoming years. We are sure that starting a bakery business in India will give you an excellent opportunity to earn maximum profits. We hope that this article gave you a clear picture of how one can start and run their own bakery business in India. As an entrepreneur, small business owner, or even a home baker, you must remember that your products and services must be of a higher standard and market it well to reach your customers.