Nutrition 

Profitable business: mini bakery

For a mini bakery to become a profitable business, strict calculations, taking into account risks and prospects, market analysis, and establishing sales are necessary. High competition in this area has become a serious obstacle for those wishing to make their way.

Large baking factories and bakeries in supermarkets have securely secured their sales markets. However, there remain some unaffected options that will be a good chance to open your own small profitable business.

Your own mini bakery: risks


It is simply necessary to assess all possible risks in order to protect yourself from:

  • Prices for bread as a category of goods of social importance are controlled by the state. For a business to be profitable, this feature must be taken into account.
  • More than 90% of consumed bread is baked by large enterprises. Firstly, high production volumes make it possible to significantly reduce the unit cost of any product. Secondly, almost the entire market is occupied by large production leaders.
  • The need for rapid implementation. As you understand, the bread must be fresh. We will have to try to ensure that all products are sold within 24 hours. This difficult problem can be solved by concluding agreements with small stores.
  • High requirements from regulatory organizations: fire safety, sanitary conditions, etc.
  • At the initial stage it will not be cheap: premises, equipment, obtaining permits, paperwork. The payback period for such an enterprise is up to three years.
  • Delivery of products requires special transport equipped with shelves and trays. This is also an additional expense item.

Given these difficulties, you should seriously weigh your decision before investing in a mini-bakery.

Can a mini bakery become a profitable business?


Here, of course, its location is of great importance. Distance to places of sale, wages for employees (in the village traditionally wages are lower). In addition, it is worth thinking carefully about the type of bakery products that can overcome serious competition. Actually, for the successful development of an enterprise you will need:

  1. Sell ​​products in settlements remote from large factories (small villages and towns)
  2. Enter into agreements with small stores located far from supermarkets
  3. Bake special products: characterized by increased quality, unusual taste, shape, etc.
  4. Control the price level. To reduce costs, you need to find suppliers of raw materials who will agree to work with you at favorable wholesale prices

But if you love what you do, you can compete even with large manufacturers. The smell of fresh bread and fragrant buns will attract buyers, and if the product is really high quality and tasty, it will be possible to sell it even at a price slightly above average.

Main expenses of a mini bakery:

  • Electricity
  • Raw materials: flour, butter, eggs, fillers
  • Transport
  • Wage
  • Taxes

Depending on the type of baked goods (recipe features), the price is determined. The cost of goods without taking into account depreciation of equipment is usually 60-80% less than the selling price. It is necessary to conduct pricing in such a way that the product is in demand, and the profit from its sale is enough to cover current expenses (purchase of raw materials, payment of electricity, salaries, etc.) and repayment of the cost of equipment.