In this post, I will address a question we get on social media and through email inquiries on starting a small baking business. The most popular question is how much it costs to start a small baking business and the second most popular question is how to actually start a baking business.
To watch the video post; click here.
In this post; I will address the question of how to start a small baking business in Kenya and then I will briefly touch on a rough estimate on how much it would cost. In order to start a small baking business; here are the top 4 most important steps you need to take.
Ask yourself if you are truly ready to become a small business owner
These days; being an entrepreneur seems to be a normal alternative to seeking employment; it even seems to be a trending option, especially among the youth. I don’t think that it is a negative point; actually, I’m glad that people have found that there is an alternative to looking for a job and getting employed. It is also an option for anyone who is employed and may not be happy with their current situation – building your own business is an option you can choose, as opposed to staying employed. The one aspect that you should keep in mind though, is that it’s not the easiest thing to do, starting your own small baking business. Be realistic on what it entails to start a baking business that will grow and become successful. You will have a change of lifestyle; you have to work long hours, sometimes with minimal sleep. It can also be quite stressful and frustrating as well. It’s quite a long journey that will be filled with ups and downs; however, when executed properly – it can be a rewarding journey that is worthwhile. I believe that before starting any small business there are very important questions you should ask yourself; if you want to know the top 5 questions to ask yourself before starting a small business, click here to read the post
Do the necessary research required and choose your niche as well
If you have asked yourself the necessary questions and you have found that you still want to start a small baking business; then the next step I would recommend is to research your baking business idea. Research all aspects of the business and requirements: What direction is the baking industry currently moving towards? What are the legal requirements? What niche options do you have? What baking skills are required and do you have them? What will be your focus? (type of products and target market) Where will you conduct business? Who are your competitors? Research and get as much information as you can on the baking industry in Kenya; this will help you have a realistic view of the industry and how you can get into the market and earn profit.
You can start by reading information on ‘Baking for Business’ in this blog – if you take the time, you will find that there are various posts on the topic that can be of help to you. Below are some posts you can start with: (Click on each link to go to the posts)
You can also buy my book “How to startup a small baking business successfully” it’s available as an E-book or a printed hard copy. It will give you lots of insight on how to get started properly. Click here to get more information on how to get the book.
You can also get other resources on starting up a small business online in blogs such as: Kuza Biashara, Entrepreneur and you can also check my personal business blog –The Kenyan Treplady. You can also get information on how to apply and pay for your business permits online on the government site – E-Business or information on permits from the Kenya Business Licensing Portal. Those sites should provide lots of information on getting started.
Write a business plan and come up with a financial budget
Whether you’re starting a home based baking business or a bakery shop; it’s very important to write a business plan for your small baking business. This will give you an overview of your business and it will also bring clarity to you on how you want your business to be set up, who you need and how much you will need to start and keep going. You can get a free basic bakery business template to get you started, just click here and sign up to get it via email. This will also give you a clear picture on the amount of money you need to start and work with in the business at least for 3 months. Please do not skip this part; as tedious as it may seem it’s better to write the plan and be prepared, than to get started without the information you require and have to close down your business six months later.
Write down your action plan on what you need to do
Once you already know your requirements and the amount of capital you require; then you need to make an action plan. This is simply a list of actions you need to take, duration of time, cost (if the action requires capital) and deadline to achieve or execute those actions. Be thorough with this list, even if one of the actions you need to improve or perfect your baking skills, write it down.
Below is an example of a list of actions you might need to take before starting:
- Perfect my baking skills by taking an Advanced cake making course (1 month)
- Save in order to get enough capital to start my baking business (6 months)
- Get quotations on costs of baking equipment from different vendors (2 months)
- Fund-raise for my baking business start-up (6 months)
- Purchase baking equipment required to get started (2 weeks)
- Apply for my business permits to start my business – by February 15th
- Set up systems in my bakery e.g. payment, production, etc.
- Purchase ingredients required for me to get started
- Set an opening date for the bakery & have a marketing plan in place
- Start giving out free samples to build awareness and market the launch of bakery
- Open the bakery on March 30th
This is also a very important part of planning out your start-up baking business; it will hold you accountable on what you need to do. It will also ensure that you actually start your baking business for sure.
Below I will give a rough estimate on cost of starting a home-based bakery:
Lowest cost estimate to start up a small home-based baking business
Assumptions: You’re using your own home-kitchen to bake from at first.
This is an estimation for a small baking business in the cupcakes, birthday & celebration cakes niche.
|Hand-held Electric Mixer||1||3,000.00||3,000.00|
|Cookswell Charcoal Oven||1||26,000.00||26,000.00|
|Baking Tins – pieces||10||250.00||2,500.00|
|Whisk – Med.||1||850.00||850.00|
|Measuring cups set||1||200.00||200.00|
|Icing Bag & Nozzle set||1||1,000.00||1,000.00|
|Wheat Flour – bale||1||1,400.00||1,400.00|
|Sugar – 50Kg bag||1||7,000.00||7,000.00|
|Margarine – 10 Kg Ctn||1||1,800.00||1,800.00|
|Baking powder – 4 Kg||1||500.00||500.00|
|Icing Sugar – 5 Kg bag||1||850.00||850.00|
|Puratos cream frosting-1L||2||450.00||900.00|
|Eggs – tray||5||300.00||1,500.00|
|Milk – L||5||70.00||350.00|
|Cocoa Powder – 500gms||1||450.00||450.00|
|Charcoal – bag||1||1,500.00||1,500.00|
|LEGAL REQUIREMENTS||QTY||U. PRICE||TOTAL|
|Business Name search & Registration||1||1,000.00||1,000.00|
|Food Handlers Certificate||1||1,000.00||1,000.00|
|Annual Business Permit-Bakery||1||8,000.00||8,000.00|
|OTHER STARTUP COSTS||QTY||U. PRICE||TOTAL|
|(Biz cards, brochures, free|
|samples, online marketing,etc.)|
|Stationery & Financial||1||3,000.00|
|Cleaning detergents & agents||1||1,000.00|
|(soap, scrubbies, etc.)|
N/B: Prices are estimations; please visit various vendors to confirm current prices for each item. Please also note this is a rough estimate; the best way to know how much it will truly cost you to start a small baking business, based on the niche you choose, is to write a business plan.
For those who want to start a small baking business in Kenya; I hope this post has shed some light and you will be able to make a decision on what to do – whether you’ll start a business and a way forward on how to plan in order to start.
If you gained insight from this post; please ‘like’ it below and also share to your networks – it might help another person. Sharing is caring ^_^