Bakery businesses are on the rise due to a growing desire for eye-catching treats. From fully customized wedding cakes to rainbow bagels, consumers can’t get enough baked goods. If you’re looking to enter the bakery business with trendy treats or classic favorites, you’ll need to understand the business first. Address the points listed below before buying a bakery to ensure you master the recipe for success!
Are you interested in buying a bakery privately or through a franchise?
First, decide whether you want to join an existing franchise or start your own bakery. Like any other business investment, purchasing a franchise location will involve less work up front due to existing guidance and company procedures. If you’re unfamiliar with the bakery business, this may be the best option.
If you’d rather take complete control of your company, you may want to open a business on your own. Opening your own business allows for complete freedom regarding menu options, pricing, and overall branding. Both options provide opportunities for success and are great ways to get involved in the bakery industry.
Why is the bakery for sale?
It’s important to ask the seller why the bakery is for sale before making any moves to acquire the business. Some of the most common reasons for selling a bakery include retirement and a desire for more free time. While these reasons don’t indicate any issues with the bakery, be aware of others that can indicate problems within the company. If a seller is listing their bakery due to financial hardships, lack of customers, or any other serious business-based issue, that may be a sign that purchasing the bakery is not a wise investment. Approach a potential bakery with as many questions as possible; the current owner(s) are the ones who know the business best.
Who is your competition?
Before making any offers on the potential bakery, it’s a good idea to do some investigating on your own. Take a drive or walk through the prospective bakery’s neighborhood. Take note of any other bakeries, cafes, or other similar businesses in the area. Use this information to decide if opening a bakery in that location would be successful or not based on the potential demand for the business. While surveying the neighborhood, take extra note of the products any potential competition offers. Are they specialty-driven such as gluten-free or vegan? Do they specialize in one type of product such as wedding cakes or cupcakes? By determining what demands are already met by surrounding businesses, you’ll be able to decide if you should open a specialty bakery or an all-purpose one.
Will the current staff remain?
Running a bakery business is not a small task. Though customers only see their favorite bakeries during regular business hours, there is much more that happens behind the scenes. Be sure to inquire about the current staff of the bakery and whether they will remain in the business after the transfer of ownership. Bakeries often operate close to 24 hours a day, meaning you will need a reliable team of employees that have the skills and desire to work odd hours. If you’re planning on taking on a whole new force of employees, consider the cost of training and hiring new members.
Do you have a marketing plan?
Most bakery businesses earn their customers through great marketing, and in turn, word of mouth. If you’re purchasing a franchised company, this point should already be addressed. However, if you’re opening your own bakery, you should have a plan in place to attract customers. Consider whether you want to add someone to your team who will handle advertising and marketing. Within the food industry especially, it’s crucial to stand out from the crowd and let people know why your products are the best.
If buying a bakery has been a life-long dream of yours, contact Business Broker! We’re experts in buying and selling businesses, and will help turn your business dreams into reality. Contact us for an obligation free consultation. We look forward to working with you!