Starting a bakery, where do I start?

[Johnc2020]

Hi all, my first post on this site.

Just wanted to ask, do I rent or buy a premises to start up?

I’m due to remortgage my house in 2 years time, so I want to use the money from that house and put it into the business. I have over 12 years experience as a baker and bakery manager and probably the same amount as being a chef, so I like to think I’m handy when it comes to baking, cooking and running a bakery.

I just don’t want to rent a place and hoping if it does become successful, they will either charge me more rent or sell up and kick me out. But start up costs will probably be cheaper than putting a big deposit down to buy a place. But reason why I would like to buy a place is most places I’ve looked at, has a flat or flats above, so they could be rented out to bring in regular income. And if the business fails, I could then rent it out myself. And I know just the equipment alone and fitting out the bakery will cost around £30k+.

 

[Mark T Jones]

I’d have thought £39k for fit out is extremely modest, even if you buy used equipment.

It partly depends on the funds available but, as a rule, buying commercial premises as a start up is more of a distraction than a benefit

 

[Chris Ashdown]

What makes you think there is a need for a baker, most towns no longer have them as they buy from the supermarkets, Even gregs cannot call itself a baker as all their goods are produced in a central bakery facility and just sent to the shops for cooking, even my local spar shop does the same

In the right location with lots of trendy people you may succeed but to 99% of the population they would not go out of there way to buy speciality bakery

You need to really do your business plan thoroughly and consider all aspects especially researching your intended area, what is the footfall, is parking free or available, what are the planning departments long term plans for that area

I doubt £30K will be enough to transform a shop and fittings

Good luck

 

[Mr D]

Great if you can do a bakery. Plenty of places need cakes that do not have the time or skill to do themselves.
Plus artisan bread appears popular, a niche market but far superior to supermarket mass produced stuff.

Buying property - not cheap. Great if you have the cash to hand available not doing anything else but for vast majority of new businesses the money is not available to buy premises.

Ok so will you be doing a shop too or just baking for other places to sell? Affects what type of property to look for.
If a shop you need a fair sized back room / basement to bake in. Which may be harder to find.
Lots of shops have some storage space, not big enough to do much more than a home kitchen could.

Or could get an industrial unit and outfit it to produce goods for others to sell - much bigger space, lower rent and business rates for the size.

You also need to figure out who your customers are.

 

[Johnc2020]

I’d have thought £39k for fit out is extremely modest, even if you buy used equipment.

It partly depends on the funds available but, as a rule, buying commercial premises as a start up is more of a distraction than a benefit

 

[Alexander Denholm]

You need to really do your business plan thoroughly and consider all aspects especially researching your intended area, what is the footfall, is parking free or available, what are the planning departments long term plans for that area

This - nothing else should matter until you have solved your business plan

 

[The Byre]

I suggest that you read this lot here - https://www.ukbusinessforums.co.uk/articles/is-the-pursuit-of-equity-a-better-business-model.925/

 

[Forseti]

I would pay attention to the competition. Are there any bakeries or coffee shops nearby? Does the location of the property suit your potential customers?