Considering the fact that the COVID-19 pandemic is still making headlines and the economy is beginning to contract, it might look like now is not the best time to open the bakery of your dreams. Successful entrepreneurs, however, have long been quick to point out that the best time to start up a new business is the present. Those who don’t take the opportunity when they have it might never find the time to do it.
No matter what might happen, people still have to eat. Bakery owners are in a rather unique position to grow their businesses in spite of what kind of negative news ends up impacting the business community. You might even be able to take advantage of changing customer habits by working with a local delivery service to offer a contactless service that might prove attractive to concerned consumers.
There are also some other unique advantages that upstart bakeries can leverage to increase their chances of success.
Starting Your Own Bakery in a Weaker Economy
It can be hard to slash prices during a recession, but you don’t actually have to compete with mass market bread or cake brands when you offer customers your first menu. Many consumers are increasingly concerned about harmful additives in their food and are willing to pay a little more for organic products. By charging less than an average artisan bread company might charge, you can attract customers who have these concerns but can’t afford to pay extremely high prices in order to assuage them.
Figuring out how to start a bakery business in your own neighborhood might not be the easiest task, but you’ll be in a better position to tackle this question once you figure out what market niche is best for you. Consider researching current trends and do your best to stay ahead of them. You might want to think of some unique ways to adapt them to your clientele.
For instance, unusually colored breads have been in fashion for the last several years. If you were aiming for the aforementioned organic market, then you might want to sell colorful confections that are tinted only with natural fruit and vegetable juices. You may even want to experiment with non-traditional fillings to help make a name for yourself in the industry.
Once you have a better idea of the kind of products you hope to bring to market, you’ll be able to judge whether or not you can start a business in the current economy.
Figuring Out the Best Time to Open Your Bakery
In spite of any major world events, the market for baked goods continues to grow. One market research firm concluded that fresh bread sales are worth around $9 billion annually. That’s the equivalent of more than 3 billion loaves of bread. If you’re in an area that currently doesn’t have any bakeries around, then there’s a good chance that you could capture some of the latent market there.
Potential entrepreneurs who are up against some competition might want to take a more cautious approach. Consider combining a bakery with another business venture. Some people might want to offer certain types of restaurant services along with those that are more associated with a traditional bakery operation.
The bakery cafe industry is now worth more than $11 billion, which shows just how successful this kind of business model can be. You might also want to consider the possibility of opening a commercial bakery instead of a retail one.
While owning a commercial bakery might not be anywhere near as romantic as owning a small establishment, it could offer you the possibility for fast growth in even the worst economic conditions. Commercial bakery operations currently control around 91 percent of the market, which means you’d be in a much better position to gain new clients even if jobless claims were to increase in the future.
Don’t ever think that you can’t open your own bakery simply because of something you read in the headlines. Take the time to put together a business plan and you might find that there’s a much bigger market for what you have to offer than you’d ever realized.
About Carson Derrow
