Start Up Costs for a Bakery
The best answer to "how much will it cost to start a bakery?" is a cliche: It depends. It depends a lot on what you want to do. That said, let's walk through the costs to start up a home bakery and a retail bakery, just to give you an idea of what it will take to make your dream work.
I'm going to start with the home bakery. If you want to skip ahead to a retail bakery, go to start up costs for a retail bakery.
Permits, Licenses and Business Certificates
The fast number for this category is $300. Of that, $50 will be the Business Certificate or Business License you get from town hall (be sure you know whether you want to be a sole proprietorship or an LLC or whatever before you go). You'll also need to get a Federal Identification Number (which you can do online in 10 minutes or less) and you'll need to get a business checking account, which will run you $20 for the checks alone.
A health department license typically costs $50 or less. I know the health department people may scare you, because they can put you out of business, but the best path by far is to make friends and work with them. In most cases you'll do fine.
You'll also need an occupational permit, which is typically done before you sign a lease. These are for fire safety, and will run less than $50. Also, depending on here you live, you may have to get a sign permit. So that's another $50 or so.
Next is a sales tax permit. This is going to be critical the second you want to place a wholesale order. Budget at least another $50 for this.
By my tally, we are now at $270. You should also know that many of these permits and conversations with government folk go much better if you can hand them a business card. Even if it only has your name, your business name, a phone number, an email address and a placeholder web page, that's good enough. Don't get any more than 100 or so business cards printed before you have an address.
Equipment
This is an area that's going to vary a lot depending on what you want to do. For some people, the only thing on their mind for this section will be renovating their home kitchen into a state of the art baking facility. That can cost $40,000. But you do not need to spend that in most cases. In fact, if you have any history whatsoever of overdoing things, failing to follow through, or you have a family that is not 100% committed to your fantastic and lavish new baking enterprise, I can not suggest strongly enough that you hold off on the state of the art kitchen. Really. Please.
It is vastly better to wait until you've been in business at least a year before you spend a dime renovating your kitchen. The better thing to do, anyway, is to build a second kitchen that's 100% dedicated to your business. Hundreds of home bakers will confirm this advice.
In terms of what you need from your kitchen, you really have to go back to what you plan to make and sell. Many new home bakery owners have adjusted their menus based on the capabilities of their kitchens, and that one decision put their business in the black. It may be that you need a selection of pans and pots and storage containers for your new bakery. You will almost certainly need a bunch of empty cabinets or an empty closet for storage. And having a chest freezer or a second refrigerator can be extremely handy, too.
Bakery startup costs continued
Sign up for our weekly newsletter about starting a bakery
Start a Home Bakery
Buying a Bakery
How to Open a Bakery
How to Start a Cupcake Business
Start a Dog Bakery
Cottage Food Laws and Home Bakeries
Write a Bakery Business Plan
Choose a Name for Your Bakery
Bakery Equipment - What You Need to Start Your Bakery
Bakery Management Software: Spend a Little or a Lot
Starting a Catering Business
Startup Costs for a Home Bakery
Startup Costs for a Retail Bakery
Licenses and Permits Required to Start a Bakery
Create a Great Bakery Storefront
Developing a Bakery Brand Identity
www.StartABakery.com | © 2007-2012 City Different Marketing | privacy | about | contact | sitemap