Do you want to know exactly how much it cost to start a bakery business? If YES, here is a detailed cost analysis for starting a bakery and raising finance.
Having provided you with a:
- Industry Overview
- Market Research and Feasibility
- Bakery Business Plan
- Bakery Name ideas
- Licenses and Permits
- Bakery Marketing Plan
- Cost of Starting a Bakery
- Marketing ideas & Strategies
We will consider how much it cost to start a bakery business from scratch including the operating costs.
How Much Does It Cost to Start a Bakery Business?
Indeed before starting a bakery business, just like any other business, there is a need to analyse the cost implications, and the cost involved in setting up this business. Here are some of the basic costs you must look towards fulfilling when starting a bakery company in the United States of America;
- Initial Franchise Fee $38,000
- Expenses While Training $1,152 – $10,800
- Real Estate & Improvements $6,240 – $224,078
- Equipment $65,000 – $191,320
- Opening Inventory (Ingredients & Supplies) $3,200 – $34,275
- Exterior Signage $960 – $19,715
- Grand Opening Advertising $422 – $21,112
- Prepaid Expenses (City, County, State, Landlord) $200 – $13,478
- Organizational Costs (Legal, Utilities) $350 – $32,860
- Working Capital (Cash Reserves) $530 – $50,000
- One Month’s Rent $1,500 – $6,366
TOTAL ACTUAL INVESTMENT = $192,411 – $482,776.
Therefore, while you can spend about $200,000 to start the bakery business on a small scale, you can spend up to $300,000 to start it in a middle scale; also about $500,000 can be used to start the business on a large scale.
Financing Your Bakery
There is always need to financing any kind of business, therefore when it comes to financing a business, one of the first thing and perhaps the major factors that you should consider is to write a good business plan. If you have a good and workable business plan in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business.
Here are some of the options you can explore when sourcing for start – up capital for your private security company;
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Applying for loan from your bank / banks
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Source for soft loans from your family members and your friends.