how much does it cost to start up a bakery and also how much when and if i get it running smoothly.

What is your ultimate goal? To run a Bakery or to run Bakery Enterprises? Different goals different plans. If you want to run the former, then you need to study baking and study it well and turn into a brand. If you want to run an Enterprise like McDonalds then you study Business and buy an already functioning bakery with a loan from the Bank and then setup Franchise Licensing.

The cost of purchasing a bakery will depend on typical amount of sales it generates as well as the cost of equipment (ovens, cooking equipment, counters, etc.) used in its operations. If the bakery is already established the purchase price will also include an amount to take on its goodwill (brand, reputation and customer base).

If you are interested in someday owning a bakery, I suggest a few first steps toward that goal:
1. Work in a bakery and see if you like the day-to-day work
2. Look into working with the baker to learn how to bake
3. Take culinary courses to learn how to bake
4. Take an adult-education course about running a small business
5. Look into what your local chamber of commerce can do to assist with establishing your own business learn about ways to finance your opening up a bakery
If baking is your passion, you will find a way. Keep chipping away and learning all you can to run/own a bakery

the first intuition in my mind is -- what type of the bakery you will start? you want to be from ground or join a franchise?

Hi Julia,

Entrepeneurship is ambitious, glad you're thinking of getting your shop started early. I assume you have two parts to your question...

1. How much start up capital (initial 'money') I'll need to get the bakery going.


2. How much can I expect in annual income once I have it started and operating smoothly.

My answers to both are going to be somewhat vague. It really depends on the size and the scope of what type of 'bakery' you'd like to open. Whether you choose to produce only small baked goods like scones and muffins, or if you'd like to have your own line of breads and an attached restuarant, these types of choices will determine how large your operation will need to be. The best way to decide is to research other readily available bakeries currently for sale. I'd encourage you to get online, and just search "bakeries for sale" (loopnet is a good site) this will give you a better scope of how much it costs to buy a 'turn key' business. For estimates, it would cost you close - if not more at times to start your own. (inclusive of your own personal costs to live your life during the ramp up time of your business)

If you'd like to get an idea for income, some of these sales have posted a metric called "sellers descretionary income". SDE - Sellers Descretionary Income, is the amount that a business owner takes in as personal income. It's often the best tool to gauge how much an owner generally pulls out of their business on a yearly basis.

Good luck with your bakery!
NS

Costs for opening a bakery depends on a wide range of variables such as size of the bakery, location of the bakery, speciality of baked goods offered, hiring the right talent, financial analysis of when you can break even marketing and advertising costs and expected profit margins. Also another option to think is if you want to start your own or go with a established franchise.
eg. Costs to open a Great Harvest Bread Co. bakery cafe franchise is as advertised here: https://www.greatharvest.com/franchise/opening-a-bakery-costs

Answers to both questions depend on what your business model would look like. What are your customers going to be like? What is the value proposition in your offering? What are the key activities that you will have to do? How will you get raw materials and deliver finished bakery products?

I suggest seeing this video that can give you a good start to think through. https://www.youtube.com/watch?v=QoAOzMTLP5s

Wish you good luck with your plan. Hope all goes well.

Julia, your question showcases your entrepreneurial spirit! It's great that you're starting early. My suggestion is that you start small. Take some time to think of your product offering; plan a small menu of items you know people would buy, because they've had a track record of being AWESOME with your friends and family (don't underestimate your close network as your "go to" market testers). Once you have a good handle on your product offering, take some time to think through how much it costs to buy/lease the items that go into making everything (this is everything from ingredients to equipment and the space where you work). Also think about how much time goes into your product. This is all preliminary research that will help you come up with a business plan that you can then use to approach lending sources for your start-up capital. A business plan is essential, as it will show others that you are serious about your business and you have the passion to make it succeed! "Lending sources" don't just mean formal channels like banks either. Think of potential "angel investors" that you may already know, or start a crowd funding campaign that casts a wider net to reach people. Best of luck!

Start up costs depend on a wide variety of variables, like size of building, if your eggs are organic and how many large white baking hats and aprons you buy.

Profits most likely will depend on if you focus your efforts on lesser baked goods like scones and macarons (i mean, really, who likes those things) or better ones such as brownies, cookies and cakes.

If you need a glimpse into what a day as a baker looks like, I found a fascinating tutorial: https://www.youtube.com/watch?v=VdxQhRFMC44

The cost will determine by where you would like your bakery to be. If your in a small town it will be a lot less expensive but the profits will be less as well. If you open in more of a metro area you will get better return on your investment. Make sure to do reasearch on how many other bakers are within a 5-20 mile radius. marketing your brand will be key, and specialize in one main product and then have other items to fit clients needs. So specalize in cheese cakes or wedding cakes etc as this will make you stand out above others in those areas.