The number of homemade bakeries is increasing. For those passionate about baking, starting a handmade bakery business in Bangladesh may be a fascinating and rewarding endeavour.
The demand for delicious handmade bakery products is getting bigger. People are now more concerned about the hygiene and quality of the ingredients, so they are shifting towards homemade bakeries.
Success, like any business, takes time. With appropriate planning, a passion for baking can become a successful business.
Building a strong business plan
The success of any bakery depends on having a solid business plan. Start by deciding what baked products you wish to sell or offer on demand, such as bread, cakes, pastries, or specialized items.
It would help if you considered target markets. For example, you could focus on providing customized cakes for occasions and serving local households in Bangladesh.
Establishing a budget is a crucial component of your strategy. This covers costs for ingredients, equipment, electricity, and marketing. A transparent pricing plan for local market conditions and manufacturing costs should also be in place. Last but not least, decide on a name for the business that is easy to pronounce and remember.
Making the recipe perfect
The core of your bakery business will be the quality of your baked items. Since the food sector in Bangladesh may be very competitive, it is essential to improve your recipes before putting them on the market. Nazmun Nahar Arnee, the owner of 'Freshly Baked' shared her experience, "Opening an online bakery was not pre-planned. I was passionate about baking cakes and loved to share them with my friends. They told me that my cakes are better than local bakeries and I should start selling them by opening an online page. I did not take any baking courses. I completely developed the recipe I followed, invented by a trial-and-error process. I suggest every home baker come out with their recipe version, which will stand out."
Spend some time trying out various components, tastes, and sensations. For a unique item that makes the business stand out, consider adding regional flavours like seasonal fruits or local sweets like roshogolla and gulab jamun. To improve your recipes, you may also ask friends, relatives, or a small group of testers for their opinions.
Simplify the management
Being well-organized is essential in a home kitchen with limited space. Plan your ingredients ahead of time and buy them in bulk to save money.
Create a method for controlling stock and appropriately storing ingredients to ensure quality. Better equipment, such as mixers, ovens, and refrigerators, can become necessary as business grows. It's also critical to have an effective system for managing orders and deliveries. Ensure that your products are appropriately packaged to avoid damage during transit and that your deliveries are made on schedule. Keeping track of orders will help you fulfil deadlines and keep customers happy. Effective communication with the delivery service provider is also essential.
Managing finances wisely
Another crucial element of operating a profitable bakery is having good financial management. Record every expense you pay for, including ingredients, packaging, delivery, electricity and marketing.
You must develop a financial plan that tracks your profits and losses to make well-informed decisions. "At the early stage of my business, I had a limited profit. I only got 5% profit. My strategy was to sell cakes at a promotional price so that a wide range of customers at least taste my cakes, making them willing to buy them a second time, even without the discount. After that, I started calculating the price of raw ingredients in grams, which were incorporated into each recipe, the electricity bill, and the value of the effort I put in. Now, Alhamdulillah, I secure around 50% profit," Arnee elaborated.
Branding and Marketing
This entails creating an attractive brand and spending money on visually appealing packaging. Take the time to ensure that your packaging accurately represents the quality of your products because it dramatically impacts how people view your handmade bakery goods.
Cakes and bakery goods promote themselves. They are usually ordered for birthdays, anniversaries, or family gatherings.
If the guests like the taste, they ask about it and order more cakes. Besides, social media is an effective tool for business promotion in Bangladesh. Popular social media sites like Facebook and Instagram let you showcase your work with excellent photos, exclusive deals, and user reviews.
Developing a website with an online ordering system can also help reach a wider audience. Word-of-mouth advertising is equally crucial, and providing your clients with loyalty programs or referral discounts will motivate them to tell their friends and family about your bakery. Besides, participating by giving a stall at local festivals or fests can help engage with many potential customers.
Relationship management with customers
Providing outstanding customer service can increase client loyalty and differentiate you from more considerable competition in Bangladesh, where personal relationships frequently drive business. Always answer consumer questions immediately and make an effort to satisfy their demands. A unique touch, such as writing a special message, asking for feedback, or remembering a customer's preferred flavour, can make a lasting impression. Developing a close relationship with your clients might lead to repeated orders and recommendations.
Stay flexible towards changing trends
Remain flexible and open to client feedback. Customers' preferences might shift quickly in Bangladesh, so adaptability and creativity are critical. Watch for new food business trends and consider adding them to your menu. Nazmun Nahar Arnee says, "Nowadays, tub cakes, jar cakes, mixed flavour cakes, cheesecakes, and granola bars are trending. Besides, fondant cakes, letter-on cakes, brownies, and cupcakes are also in demand." Ask your clients regularly for feedback on your goods and services, and be prepared to make changes in response to their suggestions.
The Challenges Homemade Bakeries Face
A homemade bakery may face intense rivalry from well-known regional stores and bakeries. While local stores can provide cake instantaneously, homemade bakeries require preorders. Therefore, people purchase baked goods from stores nearby if time is short.
Profitability depends on setting the correct price for your goods, but finding the ideal balance can be challenging. Large-scale operations often benefit from economies of scale, enabling local bakeries to offer lower prices and a wider variety of products. Nazmun Nahar Arnee said, "Because of price sensitivity in Bangladesh, many consumers could anticipate homemade baked items to be less expensive than store-bought alternatives, which could impact sales margins. However, because homemade bakeries cannot produce goods in bulk like local bakeries, their prices occasionally increase, which customers do not always consider. They always try to bargain with us."
Launching a handmade bakery in Bangladesh takes a mix of passion, creativity, and thoughtful preparation. Emphasizing quality, customer service, and effective marketing can create loyal customers and a successful firm. By providing delicious and unique delicacies for every occasion, your homemade bakery can grow into a well-known brand in your neighbourhood with time and effort.
© 2024 - All Rights with The Financial Express
