Saturday, September 23, 2006

Franchising Bakery business

One of the beauties of a home bakery is that you don't need a heck of a lot of equipment to get you started. Just a stove, a few pans, some ingredients and that "special" recipe. If you want to get a little fancier, you'll find a timer (to keep you from over or under cooking an oven full of goodies on those busy days when you're preoccupied with more than you can remember) well worth its small investment.

Think Clean, Think Quality

When you operate a family-sized home business, you quickly realize that there's no one to pass the buck to when you goof something up. You-or your family-alone are responsible for any slipshod work and, if you expect your enterprise to grow and thrive, you're well advised to set high standards for yourself and to constantly make every effort you can to exceed them.

For example: If you, as we do, shell the nuts which go into your baked goods make double danged sure that you do the job with utmost care. People are finicky-and rightfully so-about the food they eat and, especially in today's hard times, they want value for their money. Even one strand of hair, passed over and left in one of your pies or loaves of bread, could be enough to turn off your best customer.

Another example: Don't be too cheap to invest a few pesos in giving your products a quality image. Plastic bags and even cake boxes can be purchased from paper wholesalers very cheaply. The cost, in short, is hardly anything at all compared to the atmosphere of care and the "guarantee" of cleanliness that such packaging adds to your goods.

Pricing Your Products

If your baked goods are really above average, don't underestimate them. We've found (to our pleasant surprise), that the individual or family with something tasty to offer has no trouble commanding a fair price for his, her, or their products. There's so much prepackaged and machine-made food on the market these days that genuinely mouthwatering goods are welcomed with open arms. If what you have to sell is really in demand, don't be afraid to ask a premium price for it.

The problem with most bakery owners today is the frequent rising of raw materials since the main ingredient of bread, the flour, is imported. To offset the extra cost, it is better to reduce the size of the products rather than increase the price.

Work for More than Money

You cannot get rich instantly in the bakery business. But then, you don't have to stop it when it's coming. Be quite content for while as long as your little home enterprise guarantees your day-to-day survival, keeps you relatively independent of being your own boss, and leaves you free to pursue other interests.

Note: This is an edited article, the original source can be found here.

Estimated Investments

Machinery and Equipment: P150,000
Pre-operating expenses : P50,000

Basic Baking Equipments and Supplies

  • Oven
  • Tray
  • Slide bread roller
  • Bread cutter
  • Mixer
  • Sealer
  • Display cabinet
  • Bakery supplies (flour, sugar, oil, etc.)
  • Refrigerator

If you are in a tight budget, you can check for second hand baking equipment at buyandsell ads.

Some Marketing Tips: (taken from entrepreneur forums)
from harry_potter, chinito and brice

  • Try to reach out to the market oustside your area.
  • Account all of the expenses thoroughly.
  • Try to make some experiments. The bakery business is somehow dynamic that people want to taste other types of bread.
  • If possible, consign your products to other stores, "potpot" boys or other maglalako.
  • Reach out for the customers (for regular and potential customers) like making deliveries in the morning, making some posters or flyers of your bakeshop, magbahay bahay to offer you products this is is what you call information dissemination because of course who would buy in your bakeshop if the customers does not know your place or you exist.
  • Would be very particular of the quality of your products because a good product speaks for itself. The quality of your product will help you gain more customers thru words of mouth.
  • Know my competitors products, strongpoints and weakpoints
  • Market Penetration - prioritize all the customer around your area, they will be your based customer.
  • Sales Clerk - get your family involved with the business instead of hiring people. Save the payroll for something more important.
  • Come up with a specialty bread that only you are baking
  • Don't always depend on your baker - study new techniques, try something different, something new.

More advice from Reyna Elena

Training and Seminars:

Baking Lessons, Research & Development ( including Product Testing), Made-to-order Cakes
ESF Cakes & Bread House
LS Bldg. 1767 Honradez St. cor. Miguelin St.,
Sampaloc, Manila
Tel. No.: 743-4262

Commercial Breadmaking and Bakery Management (30hrs/4days) 4,169

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