Reading this article indicates that you want to start a bakery business and looking for the best guide about how you can start the bakery business from home with an affordable investment.
The bakery products are used on a daily basis and there is a huge market for them in India. The value of the bakery market of India is around 7.60 Billion USD, which is growing exponentially, and by 2026, it is expected to reach around 12.40 Billion USD with a growth rate of 8.5%
So, if you are thinking of starting a bakery product business, then you are on the right track, and in the future, you will build a very profitable and scalable business model.
Now, it’s clear that you are picking the best one for a startup, but how to start a bakery business, what investment you will have to arrange, who will be your customers, how to do marketing for bakery products, these all aspects are mandatory to know for you.
You will also require some licenses while you start the bakery items making business, and what are those, you will come to know later on this article, so read this article till the last line.
How to Start a Bakery Business In India – Step By Step Process
When you think of establishing the bakery business, first of all, you have to list out the machinery and equipment with the raw materials that are going to be used. Don’t worry, all the details are coming ahead in this article.
Next, do deep market research, and then conclude whether you want to begin the bakery items manufacturing business on a small scale or huge scale.
It’s genuinely recommended to start the business of bakery items on a small scale and then go for an upgrade step by step with the growth of the business.
Marketing is one of the most important steps to be executed to win the trust of people for your products, and that is the main cause of increasing sales.
Then know your customers, you should be aware of who can become your potential customers, whom you can sell your products to very easily.
So, these are the fundamentals of the bakery business which you need to learn and follow, and all these are going to be explored in this article.
Now, one more thing which is the bonus for you is that if you are not willing to invest a huge amount, and manage a business on a certain level initially, you can start a bakery business from home as well.
So, without wasting the time, let’s explore how to start a bakery business from home with low investment.
Research About Bakery Products
The bakery industry is very large, and there are not only certain types of products, but there are also several products in it, like bread, cakes, toasts, pastry, muffin & cupcakes, and many more products.
You should research about the demanded products in your area. See, even if you want to carry your business on a national level, you have to start with covering your local territory first.
And it is the essential step to research demanding bakery items in your area. If you can’t find it, you can analyze it online as well with the help of google.
Many manufacturers of your area would have listed out their products on google my business, from where you can fetch the stats of demand of your local area.
Most Demanded Products of Bakery Industry in India
Hence there are hundreds of products that you can make while executing the bakery business ideas. But firstly, you should focus on the products that are most demanded.
- Burger Buns
Decide The Space to Set up a Small Unit
The second step is to conclude the space where you want to set up the small unit for your bakery business.
You don’t require a huge space, if you have a vacant room in your home, you can start the bakery product manufacturing business from home as well.
And if you want a dedicated space, go for renting the space on rent anywhere, location doesn’t matter.
You don’t need to research the location, because you have a manufacturing business, you don’t have to rely on the walk-in customers.
If you want to start a bakery business on a small scale by producing around 100/kg per day, you may need around 350-500 square feet of land.
Learn How to Make Bakery Products
This is an essential step on which you have to focus the most. Because quality matters a lot. If you succeed in providing the best quality, you can beat your competitors very easily.
To serve the best quality, you must have a deep knowledge of making bakery products with perfect measurements.
For that, either you can enroll in the paid courses where the tutor teaches you live or you can learn with your nearby expert.
After learning, practice making the bakery items at your home, don’t start the business directly, make it for you, distribute it to some people, collect the maximum feedback, improve your products.
And when you start to receive positive feedback from consumers (not customers), you can start a bakery business on a small level in India.
Machinery Required For Starting a Bakery Business
- Oven – Deck Oven or Rack Oven
The deck oven is used for the small bakery business when you want to make 20 kg to 200 kg production.
Hence, if you are going to start a bakery business from home, you should purchase the deck oven which comes under your budget.
- Spiral Mixer or Dough Maker
A dough maker is equipment that is used to process the raw materials, and you need to choose it according to the size of the oven.
There are different types of spiral mixers available in the market, you need to choose the required one amongst them.
Hence, if you are going to start up the bakery items business on a small scale with the production of 200 kg per day, you can choose the small spiral mixer of 20 kg-25 kg dough making capacity.
- Planetary Mixer
A planetary mixer machine is used to prepare the cream which is used in bakery products like making rolls, and cakes.
Again the size of the planetary machines depends on the above two machines. A small-scale level requires a small capacity planetary machine.
Cookies, buns, biscuits, bread, these are the products which are made in different sizes and different shapes. So, you will need different types of moulds for that.
- Baking Tray
The baking process is supposed to be done with the support of trays, and that’s why you need the baking trays in which you will be baking the items.
- Cookie Dropping Machine
If you are including the different types of customized cookies in your production, you will need the cookie dropping machine to make the different types of cookies.
Then you will need some other essential machines like packing machines, and table racks, etc.
Manpower Required For Baking Business
Talking about manpower for the baking business, and starting on a small scale, you may require 3 people to manage the business.
One will be the head chef who will be taking care of the whole process and two are the helpers who will be processing the bakery items.
If you are doing the bakery items business from home, you should not hire more than 2 people apart from you, and even if you don’t want to invest the money in manpower, you can also include your family members.
How Much Investment You Need For Starting a Bakery Business
Investment is the most important part to start any business, in fact, it is the step that you need to execute before setting up a business.
Perfect planning of investment allows you to sustain a business in every condition, even if you are earning a low profit in the beginning, you can survive very easily if you have set the investment plan.
To start the bakery business plan from home where you are about to produce the 100kg to 200 kg around materials of bakery products, the machinery cost is around 2.30 lakh rupees.
Now other expenses depend upon you like, you are going to hire a master chef or you manage it yourself by learning.
If you hire a good quality chef, you need to pay the salary from 20,000/- to 30,000/- per month. The cost of raw materials depends upon the quality, merchant, and quantity that you are making a purchase from.
Another recurring expense is for the land if you are going to start the bakery business from home, you will not have to pay anything for it. And if you hire a space for rent, then it would be according to your deal.
Licenses Required to Start a Bakery Business From Home in India
Bakery business comes under the food industry, and that’s you will need the certain licenses which are mandatory.
First, you need the FSSAI license which you can obtain by applying online, and the second one is the Fire NOC which you can obtain from the fire safety department of your city or state.
Next, if you are launching the bakery business commercially, then you need a trading license, and GST number when you reach the criteria.
How Will You Acquire The Customers For Your Bakery Products?
The scalability of any business relies on the quantity and quality of customers and consumers.
Even if you produce any quantity of bakery items per day, it is most important that you acquire genuine customers.
There is a very huge source of customers for your bakery items, first of all, you have to acquire the local area customers by doing offline and online marketing.
Online marketing doesn’t mean that you directly run the google ads and Facebook ads, list out your business on google my business from where you will be getting the local customers.
Along with that, make the tie-up with the nearby small provision stores, grocery stores, malls, supermarket stores, hotels, and restaurants.
In the beginning, you will have to supply the products to them on-demand, which means, when they will need your products, they will contact you and you need to forward them the same.
It is beneficial to do so to maintain good relations with your buyers, as long as they will get regular customers for your bakery items, you will start getting regularly bulky orders.
Proper Marketing Technique For Your Business
Marketing is the process to gain the trust of your prospects and then convert them into customers by selling the products.
Yes, you are supposed to adopt both the marketing strategies; online marketing and offline marketing.
But don’t jump on the online ads directly without making your business failure-proof. First, win the trust of your local area vendors and customers.
First of all, you should list your product’s local SEO like google my business, Amazon, TradeIndia, and IndiaMart who are dedicated to providing you the local customers.
As long as your business becomes stable, and you start to generate revenue from there, you can go ahead and invest in digital marketing strategies.
Profit Margin in Bakery Business
Before you start a bakery business, you should have knowledge of the profit margin in the bakery business in India and if it is enough for you or not.
See, the profit margin of bakery items making business depends upon many aspects, but on average the bakery business profit margin is between 20% to 40%.
Talking about the revenue, the revenue depends upon the production and sales with the numbers of customers.
If you start a bakery business from home and work with enough efficiency, you can make a revenue of almost Rs. 50,000/- per month.
Conclusion on Starting a Bakery Business in India From Home
Now, this is the time when you can start any business from anywhere. The location barrier, investment barrier, and man barrier have been removed due to the revolution of technology.
If you want to start a bakery business from home, you can start it with an investment of around 3,00,000/- rupees which is very low for any manufacturing business in India.
Here you need to focus on some aspects: Quality and Taste, Marketing strategies, and feedback from the customers.
It’s very recommended that you start the business of bakery items on a small scale and then upgrade it with small success on each module.