Growing into Your First Retail Bakery: Opening a Storefront

Here are a list of business elements you need to take into consideration when you are planning to grow from a hobby or home-based bakery, into a retail storefront.

1. Location - Planning the location of your business means you need to consider multiple factors for business. There will be pros and cons to every location, so you will need to weigh out and factor how each location will work for your and your business. 

   • Is there foot traffic? How convenient is it to other stores, such as a shopping center? Is it attractive? Or will you need to put in a lot of work to make is appealing to a customer? Is it easy to get to? A location that is hard to find may hinder customers finding you. 

2. Cost - Is the rent affordable? Or is the building something that you wish to buy and keep long term? When renting you will need to factor in that you might be entering a triple net lease (triple-Net or NNN), where you pay all taxes, insurance, and maintenance fees that are related to that location. This is on top of standard rent, utilities, gas, etc. Most companies want leases signed for 10 years, so don’t think you can find anything for less than a 5 year lease. It is possible, to find year-to-year, just do not be surprised if you can’t find this.

3. Cash - It takes a significant amount of cash to get your bakery started. Savings, investments, and loans are the most common ways cash funds a business. Regardless of how you get it, it will be used to secure your lease, fund your equipment, buy supplies need to actually produce, and pay for the ongoing business operations every month. The amount of cash needed is greatly underestimated by those wanting to open a storefront bakery. The best way to plan for the amount of cash you need to run a storefront bakery is is to build a budget which details every item that will need to be paid for every month, including salaries.