Baking is an art. An art of spreading sweetness by blending the right ingredients. The bakery business is the business of love. As said by someone, “If baking is any labor at all, it’s a labor of love. A love that gets passed from generation to generation”. True! Baking is the labor of love but starting an online bakery can be a tiresome process without a proper plan. So, how to start an online bakery business while appreciating the beauty of baking without being stuck in the technical issues. Let us help you explore this path in this blog.
The Savory Online Path to Success: Starting an Online Bakery Business
In the age of digitalization, everyone looks for convenience. With increased celebration culture around the globe, the market for cakes and savories have grown phenomenally. Even the market for regular bakery goods like biscuits, breads, etc. have grown. With demanding careers and fast-paced lifestyle, consumers are finding it hard to take out time to pick up freshly-baked goods from nearby bakeries. In such a scenario, the opportunity for success of an online bakery business is quite large.
All over the globe, people are starting to rely on the online medium to meet their every requirement. From food to clothing and personalized services, people are getting accustomed to the culture of ordering online. When we mix the demand for bakery goods to the convenience of the online medium, the result comes out in the form of a successful business recipe with a growing user base and increasing revenues. But opening an online bakery business is not exactly a piece of cake in itself.
Planning for your Online Bakery Business: Things to Keep in Mind
When you have something as sophisticated as a bakery in mind, you need to have a detailed action plan. You need to understand your audience and define your specialty if you are looking to go for the long shot. Before moving ahead with any concrete step, it is essential to create a detailed business plan that will outline the business model, demand projection, SWOT analysis, operations plan, technical feasibility, financial plan, among other things.
#1 Determine your specialty
There are several kinds of bakery in the market. For you to move ahead with starting an online bakery, you will need to evaluate the current market and find out a segment in which you can achieve a niche status. You can think of starting a vegan online bakery or can move ahead with conventional all-day, all-need bakery that caters to a consumer’s daily bakery goods requirements.
#2 Assorted product offerings
Once you are through with the idea of what kind of online bakery you want to operate, you will be required to curate your product offerings. You can focus on traditional recipes that your family specialize in or can perform a competitor analysis to see what works best in the market. Based on your research and specialty, you should create a menu that appeals to all age-groups by adding an assortment of baked savories and products.
#3 Master the supply chain mechanism
Being clear about what will you bake for your consumers will help you in finalizing the ingredients that you would need on a daily basis. Create a detailed list of everything you will use as an input for the recipe. Based on the market cost of various ingredients, you will be able to set a profit margin for yourself and determine the price point at which you will sell to your customers. This stage will also help you to form associations with baking supplies vendors and sign long-term contract that will give you the power to avail best deals on procurement of supplies for your online bakery business.
#4 Purchase all the essential equipment needed to start a bakery
When you enter a capital-intensive business such as online bakery, you will have to think about buying all the equipment. You will require mixers, industrial-grade oven, deep freezer, refrigerator, gas stove, storage utensils, etc. As operating a bakery will involve baking fresh goods every day, you should think of buying the equipment that can run for a long period of time without much wear and tear.
Addressing the Compliance Roadblocks to Opening a Bakery Business
Once you take care of all the above steps, you will be ready to move ahead on the path to building a successful online bakery business. Operating a bakery yourself will require you to get several licenses including health license, license to cook food from food safety authority, tax registration, etc. For all this, you might need a professional lawyer who can help you with the process of applying for these registrations.
Without valid license to bake goods and supply to the customers, you cannot think of commencing the operations. So, before investing in app development for your online bakery venture, you will have to get all the licenses, approvals and registrations.
The Technical Backbone: Online Portal & Mobile App
Commencing operations for an online bakery will still be a far-fetched dream if you do not have an engaging mobile app and website for acquiring customers. The essence here is to attract connoisseurs online with the promise of freshly-baked goods that will be delivered at their doorsteps. Surely, there are many things such as a delivery model, actual cooking, staff hiring, etc. but if you do not invest wisely in mobile app development, your dream of flying will break even before taking off.
You can think of being just an aggregator by bringing bakeries in a locality on a single platform. But if you are really passionate about baking, you might want to handle baking operations yourself. In either of the cases, you would need a strong technical backbone to support your online bakery business.
Once you are through with the planning stage, you will have to hire an expert who can assist you with the app development process. As you would want to engage your customers to keep them hooked to your offerings, your app should possess a sticky quotient and should target the right users. This concern can be addressed by incorporating a few relevant features for the end-users. These include:
— Browse specialty baking menu
— Single-click ordering/reordering facility
— Online payment mechanism with multiple payment modes
— Reviews and recommendations
You can improve your app by adding a baking stories section that will give your potential customers something to come back to after they discover you online. By focusing your efforts on growing revenues as well as building a community, you can be really successful in your approach. Don’t forget to invest towards branding and marketing of your online bakery as it will increase your brand value in the eyes of consumers.
How can we help?
If you are trying to find an answer to ‘How to start a baking business online?’, we can offer you the perfect answer. Having helped several bakeries, restaurants, QSRs to launch operations online with our on-demand food delivery app development solution, we have developed an in-depth knowledge of the food business. Our experts can consult you personally and understand your aspirations from an online bakery business and suggest the perfect path towards glory. All you need to do is just get in touch and we will help you build a strong technical backbone in the form of an engaging mobile app that will enable you to accept online orders and service your clients in the best way possible.