Things I Wish I Would Have Known When Starting A Bakery: A Beginner’s Guide

Starting a bakery is a dream come true for many — the smell of fresh baked items in the morning, the delicate layers of pastries, and the joy of seeing customers enjoy what you’ve created. However, as with any business venture, it’s easy to get caught up in the excitement and forget some of the practicalities that can make or break your success.  After being in the cake industry for over 30 years, and growing up in a bakery as a child I've come to learn a lot from a unique perspective on the entrepreurial persuit of owning a successful bakery or cake shop.  I've spoken with countless business owners, all with their own unique success stories, and many with horror stories as well.  I'll try and summarize my conversations and lessons learned from all of these years in the industry.

1. Start Small, Dream Big: The Value of Renting Commercial Kitchen Space

The dream of having your own bakery shop with all the bells and whistles is tempting. However, owning and maintaining a full-scale kitchen right off the bat can be a huge financial burden.

Tip: Consider renting commercial kitchen space at first. There are shared kitchen facilities available for rent that allow you to use fully equipped kitchens without the high costs of purchasing everything yourself. It’s a great way to test the waters, build your brand, and grow your customer base without breaking the bank. Look for local incubator kitchens or shared kitchen spaces, and inquire about hourly or monthly rates.

This also gives you the flexibility to scale up gradually. If your business takes off, you can then consider investing in your own equipment and space.

Some of the most "profitable" cake shops I've encountered were based out of their home or a rented commercial kitchen.  Keeps the overhead, risk, and commitment low.  Maybe you don't have the brick and mortar shop of the major street in town, but the money formula of the business is far healthier.  So we must remember what the whole point of starting a business is = profits.  And in every successful business, the goal is to improve efficiency and raise profits.

2. Sourcing the Right Equipment and Machines Without Breaking the Bank

Purchasing brand-new baking equipment can be expensive, but there are often great ways to save money without compromising quality.

Tip: Consider buying used or refurbished equipment when you’re starting. Places like eBay, Craigslist, and local restaurant supply stores often have second-hand items in great condition. You can find things like mixers, ovens, proofers, refrigerators, and even display cases at a fraction of the cost.

However, before purchasing used equipment, always do your due diligence. Make sure it’s in working order, and factor in any potential repair or maintenance costs.

If you’re unsure about whether an item is a good investment, talk to other bakers or industry professionals to get their input. Also, don’t overlook the possibility of leasing equipment if it makes sense for your business model.

Continue to look to reinvest into your business either by education or a game-changing machine, such as a fondant sheeter.  A machine like this can save you money, time, and energy over time, which compounds as success in your business.  Also these, machines are assets that hold value over time and can be valued or liquidated when the time comes. 

3. Understanding Leases: Don't Get Stuck with a Bad Deal

Leasing commercial space is one of the most significant decisions you’ll make. I wish I’d known just how crucial it is to read the fine print and to negotiate better terms upfront.

Tip: Make sure you fully understand the terms of your lease. How long is the lease? Are there options to renew? What happens if you need to exit early? You don’t want to be stuck with a lease that’s not ideal for your business, especially if you have to scale quickly or want flexibility in the early years.

If you’re opening your first bakery and are uncertain about long-term commitments, look for short-term leases or month-to-month agreements. That way, if the location doesn’t work out, you won’t be locked in for too long. Alternatively, if you're just starting out and want to avoid high overhead costs, think about starting with a small location or even a pop-up shop.

4. Find Reliable Vendors and Suppliers Early On

Finding good suppliers is a make-or-break factor for your bakery’s success. You’ll need high-quality ingredients and reliable delivery times.

Tip: Take your time sourcing reputable vendors and suppliers. Building relationships with them can ensure that you get the best prices and top-quality products. Whether it’s flour, sugar, or packaging, the vendors you choose will play a significant role in the quality of your products. Don’t be afraid to ask for samples before committing to larger orders.

Look for local suppliers first. They can often offer more personalized service, and working with local vendors can help build your brand’s community ties. But also be mindful of your production capacity; order in bulk when possible to take advantage of cost savings.

If you’re in an area with limited suppliers, don’t hesitate to explore online options. Some suppliers offer discounts for new businesses, and many offer delivery options that can save you time.  You can always look to us to source your items, and if we do not have access directly to what you need, we will point you in the direction necessary to achieve your goals.

5. Perfecting Your Recipes: Don’t Rely Solely on Online Resources

In the early days of my bakery, I relied heavily on recipes I found online, hoping they would produce the same results I had seen in photos. While these can be a great starting point, I quickly learned that consistency and perfecting a recipe for large-scale baking is a different beast.

Tip: Perfect your recipes through experimentation. It’s vital to test and tweak until you find the right balance for your bakery’s needs. Work with test batches and learn how ingredients behave on a larger scale. A recipe that works at home might need some adjustments when it’s multiplied to fill larger ovens or production quantities.

If possible, consider hiring a mentor or reaching out to experienced bakers for guidance. You may also want to look into taking professional baking courses or workshops. In-person learning is incredibly valuable for understanding the science behind baking, which can be a game-changer when scaling your business.

6. Build a Network: Relationships Matter

Building a network of fellow bakers, food professionals, and business owners is invaluable.

Tip: Don’t be afraid to ask for advice from those who’ve been in the game longer than you. The baking community is generally very supportive, and most people are happy to share tips or direct you to useful resources. Attending local food trade shows, farmers' markets, and industry events will help you meet like-minded people who can offer advice and help you avoid costly mistakes.

Additionally, forming partnerships with local businesses, such as cafes, restaurants, or event planners, can open new doors and expand your customer base. Whether you’re providing goods for a special event or collaborating on a unique product, partnerships can be a powerful tool for growth.

7. Marketing: It’s About Building Relationships, Not Just Selling

The most successful bakeries are not only known for their products but for the relationships they build with their customers.

Tip: Focus on creating an authentic brand and connection with your customers. Social media platforms like Instagram and TikTok can be powerful tools for showcasing your products and giving a behind-the-scenes look at your baking process. Engage with your followers, reply to comments, and make them feel like part of your bakery’s journey.

Word-of-mouth marketing can be incredibly effective in the food industry. Make sure to treat every customer like they’re special and provide a consistently great experience, whether they’re in your store or ordering online.

8. Budgeting for the Unexpected

When I first started my bakery, I underestimated how much I needed to set aside for unexpected costs. Whether it’s equipment repairs, ingredient price increases, or a slow sales month, unexpected costs are a part of business.

Tip: Build an emergency fund for your bakery. Having a cushion will help you ride out any financial bumps and prevent stress when things don’t go as planned. Also, carefully track your expenses, income, and cash flow to ensure you’re staying within your budget.

Starting a bakery is an exciting, challenging, and rewarding experience. It’s easy to get swept away by the thrill of it all, but it’s important to be prepared and take the time to plan each step carefully. By starting small, building relationships, and focusing on the essentials, you’ll be better equipped to face the challenges and build a bakery that lasts.

So, to anyone just starting out, I say this: take it one step at a time, ask questions, learn from others, and don’t forget to enjoy the sweet moments along the way. After all, the process of building your dream bakery is just as important as the pastries you’ll serve.  Remember the goal, which is to provide for yourself and your family.