Opening A Bakery

Business By mbruce Updated 2 Feb 2006 , 1:55am by golfgirl1227

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mbruce Posted 10 Jul 2005 , 11:00pm
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Hello- I was wondering if anyone would help me on the price of opening a bakery? I live in a small town in missouri and would love to open a shop but I'm unsure about the amount needed. I have worked in the supermarket bakery for 5 years now and I'm tired of the limits put on me. I was thinking about 100,000. Is that to high?

11 replies
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JoAnnB Posted 11 Jul 2005 , 7:57pm
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It depends on where you live and what kind of space you are considering. Have you considered a home-based bakery? There are huge risks for a retail bake shop, given that stores offer what the public sees as "the same thing for a lot less". You have to know if you will have enough business to pay rent, electricity, insurance and salaries. That is a lot of cake you have to sell.

I built a small commercial kitchen in my garage. I had special plumbing requirements (a trench across the front yard) but I completed it for about $20,000. The only overhead I have now, is my catering insurance and some extra utility expenses.

It was the best thing I ever did for myself.


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mbruce Posted 11 Jul 2005 , 8:50pm
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I live out in the country the closest town in about 20 minutes away. I don't know if anyone would drive out here for a cake? That town is only about 4000 people.

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JoAnnB Posted 12 Jul 2005 , 5:28am
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With a home-based business, most of the time you would deliver. It sounds like opening a bakery in a small town is very risky. As I said, you would have to sell a lot of cake to cover your expenses, plus you would have to pay off the $100,000+ debt.

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ChocolateLover Posted 21 Jan 2006 , 7:51am
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Hello-My husband and I want to open a bakery also. We live in a decent sized town just outside of Louisville, KY. The town doesn't have a bakery, so we thought we might succeed at opening a retail space. We've thought about a home-based business, but there's so much to do to our house to be up to code. So, we've been looking at retail space and investigating loans to get it started. I'd love to know what you decide to do - home or retail space. icon_smile.gif

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Jenn123 Posted 21 Jan 2006 , 11:44am
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Try going to auctions for your equipment. You can get some really good deals that way.

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sweetcakes Posted 22 Jan 2006 , 4:17am
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Do a search for businesses for sale in your area or where you would like to open. You may find a cafe, or other business for sale that would already be equiped for your bakery. I saw one, just outside my area, but it was 90,000. You;ve got to be pretty commited and ready to work every hour of every day to take that on.

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pejmo3 Posted 23 Jan 2006 , 2:37am
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Hey all its been awhile sense I have posted anything because I have been busy with the bakery. I read a post about opening a bakery in a small town and I just wanted to put my two cents in. I live in a very small town in Middle GA (Eastman) and there use to be a bakery here but now all there are is Wal-Mart and the local grocery stores. So guess what? My husband and I are now the proud owners of the Hummingbird Bakery. Its alot of hard work and you would not believe the run around you will get. I have been open for about 3 months and still haven't gotten every thing that is needed. The bakery is doing wonderful. I have met alot of wonderful people and now I have regulars that come in every day. Its not much just 1000 sq feet of space and some used equipment. People are so glad to have a real bakery in town granted I can't compete with the big stores prices but people are willing to pay alittle more for personalized and fresh cakes then store baught. I can't afford to hire any one so its just me and my daughters working there and my husband helps when he can. My over head isn't that bad. But the most expensive thing is that your going to have to buy and continue buying are the supplies. Get your tax exampt number first. Okay if anyone else has any more questiions just email me at [email protected] and I will be glad to answer any questions if I can. Good Luch ya'll

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chaptlps Posted 23 Jan 2006 , 2:52am
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I would do all the research I could, get online with the sba (small business admin) and look into the realestate available and like pejmo3 said, get your tax id # and your business plan (some community colleges have someone who can help with that). When you find a place you are interested in, ask to see the books and if the equipment is to be grandfathered into the contract and stuff. There is a lot to opening a bakery but in the end, if it makes you happy to have a farmer come in everyday to have a donut and a coffee and a smile then go for it!!!

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cookielady1 Posted 26 Jan 2006 , 9:48pm
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I recently opened a bakery in Corpus Christi, TX. Although I managed to get open for $20,000, I already had a great deal of my equipment. I also am renting the building instead of purchasing real property. If I had it to do over again, I would look for an existing bakery that is for sale and take it over. Short of that, I like what I've done with the place, and I get a good amount of customers that were just driving by...

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sweetchef Posted 29 Jan 2006 , 9:17am
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I'm actually going through this right now! I'm sure the price varies widely from region to region. I'm looking for a space that's already built out to handle a kitchen. (I've heard horror stories from chefs who tried to take a regular retail space and build it into a health-dept approved kitchen--they usually spend around $100,000 just on the renovation!). But, that aside, the rent in my city (for downtown) is about $20-30 per sq ft (per year), and you'll need at least 1000 sq ft (so around $30,000 per year). They make you sign a 3-5 year lease, so it a HUGE investment! For used equip. (assuming I get a place with no equip still there), I've budgeted $30,000 for the essentials. Then, of course, there's electricity (which can be high if you have a walk-in cooler), etc.

I agree with you that it might not be wise to build in a remote area. However, you can always will take longer but could save you a lot of money. Before you decide to build a home kitchen, check with your local health dept (It is illegal to have a home-based food business in many in mine!). Good luck!

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golfgirl1227 Posted 2 Feb 2006 , 1:55am
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Hey, I'm originally from a small town in MO too!

Anyway, have you looked at space to lease? I know in small towns that restaurants and things open all of the time and close soon after. That might help with some of the equipment and setup costs if you could get in on something like that.

Definitely check out the SBA ( They have help specifically for women. Start researching what equipment you need, how much it will cost, etc. so you have an idea. Like the previous poster said, you need a business plan to go to banks with, and they aren't simple!

Good luck! I have the dream to open a retail space as well....working on it, but needs lots of money!


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