Bakers work long hours in the kitchen.It may sound like a nightmare for some people.It is a dream come true for some.If you love baking and have the skills to open your own donut shop, it may be the beginning of an enjoyable and potentially lucrative career.
Step 1: Evaluate your skills and abilities.
Being a baker is enjoyable if you like to cook.It can be tiring, requiring long hours on your feet and in the kitchen.Before you decide to open your own donut shop, you may want to evaluate yourself to determine if running a bakery is something you would enjoy and be capable of doing everyday.Depending on the type of bakery you work in, you can work early in the morning or late at night.Many weekends and holidays are needed to keep your store open.The average salary of a baker is not very high.Since you will be owning and operating your own donut shop, your potential for profits is higher than a baker working for someone else.Your potential for loss is equally high.You are more likely to be injured at work if you work in a kitchen.You will operate machinery and work with hot ovens.Heavy packages of supplies may need to be lifted by you.It can add up to burns, cuts, and a sore back.Being a baker requires a genuine love of baking.You should look for a different profession if you don't like baking.
Step 2: Do you know how to make donuts?
If you don't already know how to bake donuts, you will need to do more.There are a lot of places where a customer can buy a donut, but what sets your donuts apart?A specialty will help set your business apart.Customers will know what to expect if your product is unique and familiar.You don't have to change the wheel, but you should make it more appealing.The key to success in the food industry is to either be the first, the best, or the only business with a donut.There are plenty of bakeries and specialty shops that sell donuts, but there is an expanding market for food that complies with people's diet restrictions.Even though vegan donuts typically use a fairly simple recipe, you can still get creative by making slight modifications to the recipe.You can choose from a variety of donuts, including a combination of all three.
Step 3: Gain knowledge and experience.
If you don't have experience working in a bakery, you should not start your own donut shop.If you don't know how to manage a business or enjoy baking commercially, you may be surprised.Industry experts say that restaurant experience is more important than formal training.Search online for bakeries in your area.Restaurants and other food industry jobs have a high turnover rate, so if you are persistent you can find a bakery looking for employees.Try to get some operational experience.Book-keeping, financial analysis, and billing are some of the day-to-day business operations that can be helped with.Aim to get at least one year of hands-on experience.If you've worked as a baker before, you need to know how to work in a kitchen.
Step 4: Decide where you would work.
If you have experience and are still determined to open your own donut shop, you'll need to decide where to start.This will be important to know before you write your business plan, as the location of your future business and any nearby competition may determine your donut shop's success or failure.If you want your donut shop to be more of a conventional bakery, choose between online sales and special orders.Counter service and sit-down service are both available.Look for rental space that would fit your needs, and plan out how you want your donut shop to look.Don't be afraid to talk to other businesses, look around, and keep your options open.It's possible that a donut shop would be welcomed in one neighborhood and hated in another.You can compare prices, storefront space, and property amenities.Inquire about the going rate for rental property in the area.Check the age and condition of ovens and fridges in a bakery space.
Step 5: A business plan can be written.
A business plan is your vision for the company and an outline of what you'll need to do in order to stay in business and turn a profit.A business plan is an important part of an entrepreneurial undertaking.In order to get a loan or other source of funding, a business plan is important.
Step 6: A summary is an executive summary.
The executive summary is your vision for the business.If you are starting your own business, you need to remember that you have experience as both a baker and a business operator.Explain the work you've done as it relates to your new business if you have ever managed a business.
Step 7: You can come up with a description of the company.
Think of this section as a "levator pitch" for your donut shop.The goal is to educate potential investors about your business.In order to stand out from the competition, you should describe in detail how you'll operate your donut shop.Explain why your donut shop can meet the needs within the marketplace and identify your desired market.
Step 8: Conduct market research.
You will need to conduct and write a market analysis as you write your business plan.Before you can write an analysis of your market, you need to conduct basic research on your competition and the state of the bakery market in your region.Information about the market can be found on the BLS website.Current employment statistics can be found through the BLS Current Employment Statistics.If you want to know how much your competitors pay their employees and what their income looks like, read up on the BLS website's Statistics on Pay and Benefits.You can find additional data and analysis reports by contacting various trade groups.
Step 9: You can write a market analysis.
Once you've done your market research, it's time to put it into a market analysis.Your analysis should include information about the industry outlook for bakeries, what other donut shops exist in your target market, and what you would do differently to set your business apart.
Step 10: Determine the management of your organization.
The organization and management of your donut shop should be addressed in your business plan.This includes the overall organizational structure, the particulars of who will own the company, and any potential management team members you might bring on board.List the names of any owners, the extent of their involvement in operations, and their percentage of ownership.The owner/manager's position, daily responsibilities, skills, education, and employment experience should be detailed in this section.
Step 11: There is a marketing and sales plan.
The bakery's sales plan may seem obvious.You will need to detail how you will market your business.You should think about how you intend to market your business, exploring avenues like online marketing, visual advertisements, and other ways to get your name out there.Should you hire a sales force or be the only salesperson?Consider how you will pay your employees.You should consider how you will represent your product.What image do you want to convey: hip independent bakery, mom-and-pop donut shop, or gourmet bakery?Are you going to market your business as something else?How will you keep track of your sales?You have to figure out how much you need to make per sale and how to achieve those goals.
Step 12: A financial projection can be created.
Your business's potential for success should be assessed by the financial projection.If you've owned a similar business in the past, you need to include historical financial data, as well as prospective financial information that you predict for the future.You should include: your first year's worth of monthly or quarterly projections, a short analysis of your current financial information, and letters of reference.
Step 13: You should make a funding request.
You'll probably need startup capital if you're taking out a loan or seeking investors.It is recommended by some retail experts that you save at least three months worth of operational expenses before you open the door.If you hit some hard times, you'll have enough money to keep your business going until you can figure out what's going wrong and how to fix it.Your funding request should include: your current financial needs, your projected funding requirements for the next five years, how you will use every dollar you're given, and any relevant situational plans for your future.
Step 14: Take out a loan.
If you don't have enough capital to start a donut shop, you will need to take out a small business loan.In order to take out a small business loan, you and any partners you have will need to provide the lender with your personal and business credit history, financial statements, a strong and thorough business plan, projected cash flow for at least the next twelve.Most banks of any size should provide this service, though larger banks may be more difficult to get a small business loan from.Speak with a lending officer before taking out a loan.Know the terms of the loan, how much money the bank is willing to give you, and what supporting documents you will need for your application.As you enter the small business world, the SBA can give you guidance.You can find a representative office on the SBA website.
Step 15: You can decorate the donut shop.
Your donut shop should be clean and appetizing.As you choose your color scheme, wallpaper, and/or wall art, keep in mind that people will be coming to your shop to buy and eat food, so you may want colors and images that make them feel comfortable, hungry, or both.The shades of yellow and red make people feel comfortable.Red is associated with increased appetite.Exhibiting art work created by local artists will cement your business's place in the community.
Step 16: You should lease your equipment.
If your donut shop doesn't have equipment from a previous bakery, you may want to lease it.As new and better models become available, you can lease to upgrade your equipment.It will be more cost-effective, and you may be able to write off some of your lease payments as business expenses when you file your taxes, though you should always consult with a professional accountant or tax preparer to ensure you follow all the necessary guidelines.A dough proofer, an oven, a refrigerator, and a point-of-sale system are the minimum equipment you will need.Depending on the size of your business, you may need multiple dough proofers, ovens, and refrigerators.
Step 17: The license/permit is needed.
Depending on where you live, you will most likely need a permit or license to operate your business.Depending on where you live, this will be done through either your city or county office.You might need a small business license.To determine what paperwork you will need to run your donut shop, check with your local SBA office or your municipal offices.There is a Department of Consumer Regulatory Affairs in some cities.You may be required to go through the town hall.You can check online for permits and licenses in your region.You can apply for a license at your local office.
Step 18: Pass the health and quality inspections.
It takes a lot of work to run a restaurant and keep it clean and up to date with health codes.The specific measures of a health inspection will vary depending on where you live, but some common factors tested for include: employee hygiene time and temperature procedures for food preparation acquiring food from approved sources/vendors proper disposal of wastes keeping rodents, insects, and other animals out of the building proper storage
Step 19: Set the hours.
bakeries usually open early in the morningYour hours of operation will most likely depend on your target customers.If your business is in a college town, you may want to consider having evening hours at least a couple times each week to feed the hungry bar-goers.If your business is located in a quiet residential area, you may want to open earlier in the day to take advantage of when people are out and about.
Step 20: Should we hire a staff?
Doing all the work yourself will cut down on costs, but it will also keep you in the kitchen almost every day.Only you can decide if that tradeoff is worth it, but consider both the costs and whether or not you and your business can sustain the long hours single-handedly.If you decide to hire a staff or just one or two other employees, make sure to communicate your vision for the donut shop to everyone.Make sure that the employees you hire can share your vision and put your business's best interests at the forefront.Don't just hire the person who opens the door.Before or after you arrange an interview, check the references of any qualified candidates, as well as the previous baking, restaurant, or customer service experience of the applicants.You can trust the person or people you hire the most with your money.
Step 21: Sell your business.
It's up to you, but remember that you may be facing tough competition.If you want your product to speak for you, you need to get customers interested and lead them to your door.Creating social media pages for your business is one of the easiest ways to market.You can buy ads on social media and distribute fliers in your area for charity events.
Step 22: Quality and customers are put first.
It's hard to compete with big chain donut shops and super markets, where customers can get a donut for a very cheap price.Customers are coming to you for a high quality product, accompanied by top notch service.Make sure your customers have a good experience at your shop.In person and on social media, listen to your customers' feedback.Ask them for suggestions from time to time if you want to change any operational issues that people find troublesome.Taking special requests will keep new customers coming back for more.