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Cost of opening a bakery?

post #1 of 23
Thread Starter 
How big of a loan does it take, ball park, to start your bakery? $100,000? $150,000? What all do you take into consideration? I'm just curious.

TIA!

Darci
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post #2 of 23
It depends on what you want to make, and at what volume.

If your looking into this for yourself. Your biggest expense won't be $$$ it will be time lost with that new baby that is in your signature. One day you'll wake up, and say OMG how did you get to be 15.

Mike
post #3 of 23
Have you done a business plan?

Opening a bakery is a huge undertaking. Even if you *could* get a loan that big without a business plan, I can't see why you'd want to
post #4 of 23
Here's a book that might give you some insight as to the various steps you need to go through to start up and you could figure your costs from there:

http://www.amazon.com/How-Open-Financially-Successful-Bakery/dp/0910627339/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1214936860&sr=8-1

The SBA also has sample business plans.

Good luck in whatever you decide to do! thumbs_up.gif
post #5 of 23
i'm small potatoes...i opened on a shoestring almost 7 years ago...it was a little over 28k.

i'm a one man show, except for my cleaning help...i got about 1100 sq ft.

there are those on here that have invested hundreds of thousands.

i'm getting older, so i don't want to take over the world anymore....i don't think my shoulders are broad enough to have all the responsibility of a bunch of employees.

it would be a lot of work, just what i do, with a 4 month old baby.
post #6 of 23
Ours is around 2000 square ft. We had to to a great deal of rehabbing, as the building was over 100 years old and was previously a clothing store, so didn't have adequate water, electricity etc. We spent over $500,000.
Scratch bakers of the world UNITE !!
Inrideo ergo sum ~ I snark therefore I am.
Cake or Death?......Cake Please!
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Scratch bakers of the world UNITE !!
Inrideo ergo sum ~ I snark therefore I am.
Cake or Death?......Cake Please!
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post #7 of 23
Thread Starter 
The reason I threw out those figures was because I honestly don't know how much is appropriate. I actually have a financial backer but am just curious how much a small storefront typically runs. I know it's different from place to place, though. I know I am not yet prepared to have a business of my own, but I just thought I'd browse for now and get some estimates.

Darci
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post #8 of 23
No one can tell you how much it will cost you to open a bakery...not even a ballpark. There are all different types of bakeries in all locations. You need to find out what your HD requires and then get online or go to restuarant supply stores and price out your neccessities. As others have suggested you need to start a business plan...which can take MONTHS to complete. There are way too many variables to give you a ball park. I started mine with $5k and TXKAT started hers with $500k...I'm sure that's not much help.
"If you don't know where you are going.....how are you going to get there?"
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"If you don't know where you are going.....how are you going to get there?"
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post #9 of 23
I was lucky enough to find a bakery that was going out of business and leased the whole thing - including all of the kitchen equipment. We are in the middle of taking it over and even though the kitchen is there and everything is to code the place was horribly decorated and FILTHY - I would not have eaten anything that cam eout of there. We are still looking at about 75k for remodoling and renovation as well as operating cost for the first 3 to 4 months. The SBA is the best place to start, they will hold your hand through the entire process and since they know your area personally they may be able to help with grant money and loans only available through economic development plans in your city or county. Good luck!
post #10 of 23
Thread Starter 
Thanks, guys! I knew I could count on you! Always there to help!

Darci
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post #11 of 23
Quote:
Originally Posted by eiyapet

I was lucky enough to find a bakery that was going out of business and leased the whole thing - including all of the kitchen equipment. We are in the middle of taking it over and even though the kitchen is there and everything is to code the place was horribly decorated and FILTHY - I would not have eaten anything that cam eout of there. We are still looking at about 75k for remodoling and renovation as well as operating cost for the first 3 to 4 months. The SBA is the best place to start, they will hold your hand through the entire process and since they know your area personally they may be able to help with grant money and loans only available through economic development plans in your city or county. Good luck!


Hi, what does SBA stand for?
post #12 of 23
Small Business Assoc.
post #13 of 23
Like another said it's impossible to give a range because it all depends on what you're going for with your business' focus and how new you want your equipment to be. At the minimum you're going to need to research the requirements for both your local, county, and state. That's going to dictate pretty much 98% of what you do to the space. On the low end, it can be a $30,000 investment, or it can go into the millions depending on what you're going for with the space.

For me, I'm building a building on the property which we live and because of the size of operation I am I will be allowed to connect in to our septic as it is. I've also been purchasing SMART for all of my equipment and supplies with the main focus being on not going into debt to own it.

The other thing is you really NEED to create a real world business plan. Not the frilly ones they have with the SBA or a university course, things like licenses, inspections, staffing situations (the more staff you add the more responsibility YOU have), insurance, what it REALLY costs for a hood/ansil system with installation, what it REALLY costs for the commercial floor, what it REALLY costs for staff, electricity, paper towels, toilet paper, and how many cakes you realistically need to sell in a month to pay all of those expenses plus when times are good saving that money to pay for the lean months. You can't tell people "I'll pay you next month", you've got to have money on hand to survive 5-10 years without making a dime yourself. You've also got to include what the costs are going to be to your relationships. With a storefront you can't just take the weekend off, you've got to have someone working and if they call in sick, you're SOL on your vacation you planned for 6mo. Same goes for what happens when your kids get sick and you've got cake orders up the wazoo.

This is why I had my kitchen set up as a "made to order" operation. I can plan to take a weekend off and I can control EVERYTHING how I want it to be. I don't have to take an order if I don't want to. You've got to really consider what you're willing to pay. You've also got to have your time management mastered along with an area set up for efficiency. The other major thing to remember is this is a BUSINESS, it's not "for fun", The only reason to be in business is to MAKE MONEY. Your drive is what will get you up in the morning after working for three days non-stop to deliver the cake on time.
post #14 of 23
I should add that we went WAYYYYY over the top. All of my counters both for serving and for decorating are south american granite ( the most expensive kind) All of our equipment is new, and we had an 18 foot long 91/2 ft tall solid Mahogony bar for service. That alone was 20 plus thousand, so you can definitely do it much cheaper than we did.
Scratch bakers of the world UNITE !!
Inrideo ergo sum ~ I snark therefore I am.
Cake or Death?......Cake Please!
Reply
Scratch bakers of the world UNITE !!
Inrideo ergo sum ~ I snark therefore I am.
Cake or Death?......Cake Please!
Reply
post #15 of 23
We are in probably 175k. 2000 sq ft, previous pizza place so not much remodel.
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