How to Start a Profitable Bakery Business in the USA: Costs, Steps, and Tips
Is it your dream to own a bakery and become your own boss? Perhaps you have been negligent with the idea, then you’re not the only one in these shoes and your chances of success may be greater than you can imagine.
The bakery business is worth $30 billion and small businesses in this industry experience rapid growth. This article aims to reveal to you the behind-the-scenes look at Wild Wheat Bakery, owned by Punardeep (PD). It is a fast growing seven-figure business which has been featured in The Seattle Times and has won the Best of Kent Awards multiple times. You will learn the building blocks to success, from bakery start-up and customer retention. Meeting Punardeep and His Journey to Baking Success.
Punardeep’s journey is inspiring and so easy to relate with. Although he is from India, he relocated to the U.S. 20 years ago through a student visa and then he bagged a degree in computer science. He worked in corporate America for a couple of years as a business analyst however he resigned because he recognized that the business was not for him.
A lack of fulfillment and corporate politics pushed Punardeep to diversify by exploring other options. He wasn’t focused on bakeries initially, however he desired a business he could enjoy doing. After researching different options, the opportunity to buy an established bakery emerged and the rest the say, is history.
The Secret to Bakery Favorites
Wild Wheat Bakery is greatly loved by its customers and the reason is not shocking. For breakfast, PD suggests their Eggs Florentine or Eggs Benedict and their Corned Beef Sandwich or Pastrami Reuben for lunch. If you desire a sweet treat, then you should go for their cheese danish meal..
Freshness and quality is the secret behind their incredible pastries. “It is made with love” in PD’s words.
Researching and Choosing the Right Business
PD did his research to the latter, before buying the bakery. He handled multiple businesses, focusing on numbers and return on investment. The bakery stood out because it was already well-established with a loyal local customer base.
PD emphasized that financials are as important as passion. He noted that “If you’re not passionate about what you’re doing, you’ll burn out.” Striking a balance between statistics and personal interest was instrumental to his decision-making.
What It Costs to Start a Bakery
Starting up a bakery is a great deal. Baking equipment’s cost hundreds of thousands of dollars and such a coast must be well planned out before a buying decision is made. If you’ve got a smaller budget, PD suggests exploring options like starting small or signing up for funding options like SBA loans or lines of credit.
Let’s assume you’ve got $50,000, you should focus on mapping out a solid business plan. If you’ve got a convincing pitch, trust me, banks and lenders might offer a helping hand. PD explained that it is all about figuring out what works for your budget and building from there.
Growing a Customer Base
Gaining new customers is a crucial despite having an established business. PD ascribes a fraction of his success to active social media marketing. His team depend on Instagram and Facebook to market their products and to engage with their audience.
In his opinion, setting yearly goals like increasing revenue by 10% and finding ways to achieve them is what growing is all about. PD is always brainstorming mediums to bring people through the door either via expanding product lines or creating a loyalty program.
Keeping Costs in Check
Constant high expenses are involved in owning a bakery especially payroll, so being a bakery owner is not a walk in the park. If you are not up to the task, you will chicken out in no time. Wild Wheat has 36 employees and just its monthly payroll is significant. Ingredient costs are relatively low, but labor costs can increase in no time.
PD emphasizes the importance of making a thorough research before the start-up. This is to avoid stories that touch the heart. You’d understand that sentence better if you’re s Nigerian. Lol.
He noted that it is important to keep expenses efficient and he recommends exploring lean manufacturing principles to reduce unnecessary costs while preserving premium quality.
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Final Thoughts
Like I have mentioned earlier, starting a bakery or any business is not as easy as cooking noodles but not as hard as climbing mountain Everest, but your passion, planning, and resilient spirit will definitely keep the momentum going, thereby making the experience incredibly rewarding in the latter end. Are you crafting the perfect danish or heading a team? Then trust that every step of the journey is a medium for you to learn and grow.
Are you ready to make your baking aspirations spring forth to reality? Then you should take motivation from PD’s story and get started today. Your bakery might just be the next local favorite. Who knows? No one, but God does. So make it happen and show the world the stuff you are made of.
