How much Capital do I need to start up a bakery?

By Gerard (Gerard) on Saturday, May 13, 2000 - 01:05 pm: Edit

The more experience you have running a bakery the less you need, the less experience you have the more you'll lose.
I think I could do it well under $20K.
It wouldn't look fancy but it would be profitable and capable of growth.
Someone with no experience could easily spend $120K and keep piling money in on a constant basis.

By Panini (Panini) on Saturday, May 13, 2000 - 07:33 pm: Edit

Hey!
$20k? I want one. I'll have a check monday.Do you deliver?

By tj on Saturday, May 13, 2000 - 08:27 pm: Edit

$20k? unrealistic.
even if you buy the minimum used equipment needed,
you still need to sign a contract with the land lord.first last and security deposite.rent for first month ,asuming you are in a resonable area with a medium high rent, to have good walk in traffic.utility deposit, electric service deposit, initial stock/ingredients, insurance and legal fees and general costs of even the most minor construction or renevation, city permits, county business permits, food permit, inspections for construction even the most minor, architect plan (for the most basic lay-out),greese trap instalation, back up money for at least the first 6 months for running the shop-sallaries+supplies+regular monthly expenses,etc. think you can do this well under $20k? i dont think so...

By Gerard (Gerard) on Sunday, May 14, 2000 - 05:25 am: Edit

tj,

already done it and can do it again.
If you don't believe you can, you never will because you'd never look in the right places.
In fact we had over $5K left and opted for a 60 qt hobart. With all the boutique bread companies and bagel shops that opened in recent yrs the auctions are a bakers dream.
Its all a matter of finding someone who wants to get out, if you go out and pick a location then have to design it up to code you will spend at least $60K and have nothing extra that I got for $9K. Our Landlord wanted $2000, we bargained that down to $900 the first yr and escalated to $2000 by yr 5 on the lease.
If you're looking in the classifieds, you're not even looking. Lets do a breakdown.

By W.DeBord on Sunday, May 14, 2000 - 07:20 am: Edit

Yes Gerard, but the question was How much money will Sonrise need? Help the person figure out whats realistic for them, no?


Sonrise your question is written so small and simple, that is a really big complex question! You have to explain who, what and where including your background, to have anyone give you some basic help to your question. The fact that you didn't seem to know we'd need certain basic information makes me wonder if you understand how hard opening a bakery is?:)

By Panini (Panini) on Sunday, May 14, 2000 - 07:34 am: Edit

Your capital will depend on your business plan,location,concept,etc. There is no set figure.You might be able to do it for what Gerard did it for, but it might cost 5-10 times that.
Do you have a business plan? Concept? Experience?
Money?
Like DeBord says, let us know a little bit about yourself and we all will help you. There is years of experience at this site, especially in business.

By Gerard (Gerard) on Sunday, May 14, 2000 - 09:15 pm: Edit

W.Debord,

If you have to ask you don't have enough.
I've yet to see anyone who doesn't know the answer have the experience to succeed. Its a very tough business, very unforgiving to the inexperienced, capital isn't as big a problem.
Funny how it always seems to happen in the food biz, would anyone ask how much does it cost to set up a machine shop ?
Talk to any machinist, they know.

By W.DeBord on Monday, May 15, 2000 - 09:16 am: Edit

Gerard that was my point, they didn't seem to know what information to provide with their question. Kind of, not understanding what a big question it was.

If you don't provide some background, you don't understand what your asking....which is equal to "If you have to ask you don't have enough."

By tj on Tuesday, May 16, 2000 - 05:01 pm: Edit

gerard,
bargain hunting for desperate shop owners is a long shot at best.you can spend years doing this and find nothing in the area you wish to be, or get realy lucky and find it in 2 days.it means nothing for a person who wants to start a bakery from scrach.i would never buy new equipment cause you can get great used equipment at great deals, but to find a setup ready to go shop in an area you can consider living and doing business in is a long shot at best.this is why i say it is unrealistic.i am looking at business opportunity papers and magazines for years , and its always the same thing.2 billion restaurants and diners and 1 or 2 bakeries at the wrong price.and in the wrong place.

By tj on Tuesday, May 16, 2000 - 05:07 pm: Edit

oh gerard ,by the way, you think you can do this in a major metro area with very high foot traffic?not a suburb (a place where i would not consider opening a bakery...)?? if yes, i would like to find out how...i would very seriously consider opening a bakery in an area like that for $20k ..

By CountryBaker on Saturday, May 20, 2000 - 12:48 am: Edit

You can open a bakery on 20 thousand according to where you live and what you want. Also can you or someone you know do some of the work for you, such as plumbing, wiring etc? Permits are only a few dollars here. Some you only have to fill out the forms. You don't have to be in a high rent area to make it. I don't have any foot traffic as my shop is in a rural area. I turn away business. If you have a good product and there is a need for it in the area you are in and you are willing to work you will probably make a go of it. If you yourself cann't do part of the baking and don't have a good knowledge of breads and sweets don't attempt it. Go with used equipement from auctions and the paper. Good Luck

By Naomi on Monday, October 23, 2000 - 09:11 am: Edit

I would like to add on to the Question posted. Dreaming aside, what are the ordered steps I need to take to begin the long difficult journey twoards opening my own cake decorating buisness?
Do I put my plan on paper first? Do I hunt for a location? Where do I find auctions for used equipment? How long between finding a location and actually selling a finished product? As I ask I begin to realize how long and complicated this will be. Who do I talk to about regulations? Is there a book that might point me in the right direction? I am an excellent cake decorator and I have several family members who could contribute. I only have about 10 years experience in commercial bakeries. Six in a hotel and four in a grocery store bakery. I have been told repeatedly that I should have my own buisness, but until now it was not feasible. I'm rambling gotta run. So, any advice for a lost soul?