Copyright ©2014 John Wiley & Sons, Inc. All rights reserved. E ARLY S TEPS AND K EY D ECISIONS Chapter One.

Copyright ©2014 John Wiley & Sons, Inc. All rights reserved.

EARLY STEPS AND KEY

DECISIONS

Chapter One


CHAPTER OVERVIEW• Concept to Reality• What Are Your

Specialties?• What Type of Bakery Is

Yours?• Franchises• Failure Is an Option• Types of Business

Organizations• Your Job as a Bakery

Owner


CONCEPT TO REALITY• Choose the concepts that interest you most• Begin to identify the skills in yourself to see if you can and

want to open a bakery• Clearly express your goals for a baking operation• Learn what tool you need to make progress in getting it done.• Evaluate the marketplace to see if there is a need (for what

you want to do)


WHAT ARE YOUR SPECIALTIES?

• What will my customers relate to best?

• Will I be excited to represent this to my customers?

• Do I have additional insight that will help me succeed?

• Is there an honest need for the product/service in the area where I plan to locate?


WHAT TYPE OF BAKERY IS YOURS?

Cupcake shops

Day parts

Donut shops

Specialty retailers

Bakery and X

Types of Bakeries



Types of Bakeries (cont’d)Type Day Parts Capitol Fashion/Fad

Bagel Shop .. Low/Med Fashion

Bagel Shop and Deli … Med Fashion

Bakery & Cafe …… High Fashion

Bakery & Craft Shop .. Med/High Fashion

Bakery & Deli ….. Med/High Fashion

Bakery & Florist … High Fashion

Bakery & Pizza …. High/Med Fad

Bakery & Popcorn … Med Fadish

Bakery & Restaurant ….. High Fashion

Bakery & Wine Bar …. High Fadish

Bread & Deli … Med/High Fashion




Bread Shop . Med Fashion

Cake & Café ….. High Fashion

Cake & Tea Shop .. Low Fad

Cake Shop . Med Fashion + Fad

Cakes & Party Place … Med Fadish

Coffee & Bakery … Med Fashion

Cookie & Deli … Med Fashion

Cookie Shop .. Low Fadish

Cupcake Shop .. Low Fad

Donut & Deli …. Med Fashion

Donut & Deli & Beverage …. Med/High Fashion




Donut Shop-New Age … Low Fad ++

Donut Shop-Traditional .. Low Fashion

Donuts & Restaurants …. High Fadish

Food Truck … Med Fad

Full Line + Beverage … Med/High Fad

Full Line + Ice Cream … High Fashionish

Hotel Bakery … Med Fashion

Internet Bakery … Low Fad

Limited Line Bakery ..

Pastry (Dessert) & Beverage … Low Fadish




Pie & Deli …. Med/High FashionPie Shop .. Low/Med FadishRetail & Wholesale … High FashionRetail Bakery-Full Line .. Med/High FashionSpecialty - Sweet & Savory …Specialty + Ice Cream … Med* FashionSpecialty Bakery + Chocolate … Med/High FashionTheme+ Beverage+ Deli …. High FadWedding Cake Shoppe . Med Fashion*Wholesale Donut . High Fashion* Wedding cakes will always be in fashion. However, the style changes every year along with the "hot" new color or trend of the season.


FRANCHISES• Pro reasons• Con reasons


FAILURE IS AN OPTION• Why do most bakeries fail?

– Lack of capital– Costly mistakes– Poor location– Poor production– Poor merchandising– Staff turnover– Lack of controls– Situations beyond your control


TYPES OF BUSINESS ORGANIZATIONS

1. Sole proprietorships

2. Partnership

3. Limited liability Company (LLC)

4. Subchapter S

5. “C” corporation


YOUR JOB AS A BAKERY OWNER

• Some truths about the job:– Self-employed people are by nature very busy people.– Leadership is a learned skill, not a gift at birth.

Practice, practice, practice.– One of your biggest issues will be working IN your

business, not ON your business (best practice = ON).– Good communication skills are learned and must be

practiced.– Good training is priceless, bad training is worthless!


TIMELINE―INTRODUCTION• Things that can change your timeline:

– What type of store are you opening?– A bakery-plus will take every minute you can give it and

more.– Family emergencies create delays in timelines.– How are you going to support yourself for the year it takes to

open your store and when cannot work full time elsewhere?– Economic conditions can blow up timelines.– You change your mind, maybe this is not what you want to

do.– You cannot find the right location and the timeline has to wait

Copyright ©2014 John Wiley & Sons, Inc. All rights reserved. E ARLY S TEPS AND K EY D ECISIONS Chapter One.

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lowfadcake shop

medhighfashionpie shop

lowfadishcupcake shop

bakery owner copyright

highfashioncake tea

franchises ones