An incredible number of people have given up perfectly lucrative careers to start bakeries. The desire to start and run a bakery stems more from a desire to unleash creativity than from a burning need for money.

While a bakery business does make substantial profits if managed sensibly, even the most flourishing bakery takes time to break even and turn in a profit. Besides, it is not something that you can leave to others to manage. You need to be a phenomenal baker yourself and be willing to put in long hours of work.

The first decision you need to make is whether you want to take up a franchise, purchase an existing bakery, buy a new one or start one out of your home. If you are purchasing an existing bakery, find out why it is being sold and check the equipment. But whatever you plan to do, it is better to seek professional advice before taking the plunge. Ascertain the initial investment that will be required and the kind of profits you can expect.

A bakery business takes time to grow and prosper, so make sure that you have sufficient working capital to sustain yourself until then. Consult your accountant to make projections about capital requirements, overheads and potential revenues.

Next, decide on the location. Your bakery should be located in a place that houses a lot of customers for your products. A spot that overlooks a busy road and close to schools and entertainment facilities is perfect. Find out how many bakeries are already operating in that area and if they will prove to be a potential threat to your business. Also conduct a market survey to ascertain what kind of bakery products are in demand in that particular locality.

Formulate a business plan that includes the design and layout of the bakery, financial projections, marketing tactics and procedures for efficient management. Some means of financing your venture are savings, credit cards, bank loans, business loans and investors.

Before commencing your operations, you will have to complete formalities like getting a license and permit, opening a bank account, purchasing equipment and recruiting employees. Obviously the main ingredient is flour, so identify suppliers who will offer you lower rates. Economize and eliminate wasteful expenditure as far as possible. The success of a bakery depends on how much you can save on expenses.

Start advertising much before the grand opening. Hand out leaflets and brochures and get your business cards printed. You could also put up a banner about the impending opening of your bakery. Have a small party before the main inauguration to promote your bakery and spark interest in potential customers.

If you are planning to operate a home bakery, you can approach a number of retailers to sell your products to. Here, having a signature product works wonders. Exclusive delicious pies, cakes, cookies etc. are welcomed by retailers since they always want to stay ahead of the competition.

As far as pricing is concerned, price your products reasonably to cover costs and provide for a decent mark-up. Avoid pricing them too high as this will drive you out of the market. Pricing them too low, on the other hand, is also a mistake. After all, you do want to make some money out of your bakery.

Operating a bakery requires a great deal of work, thrift and planning. But it can also be very gratifying when you see your dreams turned into reality. With the right dose of effort and skill you can have your cake and eat it too.