Are you someone who lives by the saying ‘there’s no such thing as too much cake’? Do you binge watch baking and cake decoration videos on Youtube? If yes, then you are clearly a cake ninja and passionate about baking! With the lockdown giving way to many home-based and online businesses, home bakery business was one such business that boomed in a short period of time. Some baking talent, a good camera phone to take pictures and an Instagram handle was all that many home bakers needed to embark on their journey of entrepreneurship.
A home bakery business was preferred to a commercial bakery shop by many as it cuts down on the cost of opening a bakery a lot, apart from operational costs, the expenses of working capital, obtaining licenses, renting a commercial space etc. You can set your own terms in the case of a home bakery - take limited orders on days you wish to work, run the business single handedly, deliver only to areas according to your convenience and customise your cakes and packaging to create your own brand.
Here are some tips for you to monetize your passion too and kickstart the home bakery business of your dreams
Craft your menu
The first step to starting a bakery business is crafting the menu. There is no dearth of inspiration for cake business ideas as there are a plethora of home bakers who post them regularly on social media. Take inspiration from them and design your own menu. Start small with simple bakery items like birthday cakes, cupcakes, cookies and buns. Once you have nailed them, you can expand to more complex goodies like croissants, pies and tarts.
Deciding a name for cake business
Another important aspect is to decide on a catchy name for cake business. Since there are many players in this market, having a unique name will make your bakery business stand out. Play around with words that are synonymous with cakes, chocolate and sweetness which sound delicious.
Buying necessary baking equipment
First make a small bakery equipment list including baking pans, muffin trays, liners, cake stands, mixing bowls, spatulas etc . Only when you make a list will you realise you already have some of the items already available in your kitchen. However, a professional bakers oven should top your small bakery equipment list as this is what sets you apart from other home bakers. A professional bakers oven can cost anywhere from Rs.18,000 to 50,000 depending on the size. It is a necessary investment that will reap returns in the long run of your home bakery business. You can consider business equipment financing options to buy the items.
Packaging and promotion
The key to owning a successful home bakery business is in attracting and retaining your customer base. This can be done by personalised packaging and marketing on social media. It is important to position yourself as a go-to home baker in the market by constantly reinventing your cake business ideas, innovating and showcasing creativity.
Funding your business
The cost of opening a bakery includes buying the raw materials, equipment, hiring manpower, electricity, maintenance and packaging expenses. Though a home bakery business is far cheaper than a commercial bakery, the cost of setting up a professional baking kitchen at home is quite expensive and might require external financial assistance like a home-based business loan. You can avail a bakery business loan, essentially a small business loan in the form of asset based loan, working capital loan or equipment financing to fund your home bakery business. The commonly used types are equipment financing and asset based loans . A loan given against purchased/existing machinery for the business is called asset-based loan. And an unsecured loan given to purchase business equipment is called equipment financing. The interest rates on these loans can range from 9% to 15% and can be a deterrent to pay expensive EMI.
Other convenient options of funding
Another valuable option of bakery business loan to consider is availing gold loans. Though it is an unconventional process to fund a business startup, a home bakery business cost is relatively on the cheaper side and the setting up costs can be easily covered by taking a gold loan. All you need to do is pledge an equivalent amount of gold for the loan amount required. Rupeek, an online gold loan company ensures that customers get the highest per gram rate to fulfill their business needs. The worry of high interest rates are also nullified as Rupeek offers gold loans at just 0.79% interest. Some of the key features of getting a gold loan at Rupeek are:
- No exhaustive documentation required
- No need to present business proposal
- Instant online gold loan at your doorstep
- KYC and gold evaluation done by loan officers at your home
- Receive cash in your account within 30 minutes of application
A gold loan from Rupeek is the most ideal and affordable method of financing your bakery business dreams without burdening you with heavy EMI. Apply now and kick start your journey of owning a successful home bakery business.