Do you want to know exactly how much it will cost to start a bakery business? If YES, here is a detailed cost analysis for launching a bakery in Oregon, USA.
Selling baked goods became a trend, and baked goods soon began to be sold on the streets of Rome, Germany, London, Paris, and more. Over time, bakeries no longer rely solely on retailing their baked goods and snacks on the street, in the open market or delivered to your door. but now they can comfortably open their bakery for customers to come and order their freshly baked bread and snacks.
Bread and all flour-based foods are commonly consumed by almost everyone in the world and as such, anyone who decides to open a bakery anywhere in the world is likely to get a good return on their investment if they do the right thing when it comes to doing business.
Apart from bread, which appears to be the face of the bakery industry, cake is also one of the bakery products that is doing well in the marketplace all over the world. Yes, people eat bread and other snacks made from flour on a daily basis, but you can quite agree with me that cake making is also one of the main sources of income for bakers. Although not all bakers specialize in making cakes, but those who bake cakes along with baking bread and snacks, these are the people who maximize the bakery industry.
The fact that people order cakes during their special events like birthday parties, wedding ceremonies, wedding anniversaries and other anniversaries and parties makes the bakery business extremely in demand.
Funding your bakery
There is always a need to finance any kind of business, so when it comes to business financing, one of the first and perhaps most important factors to consider is writing a good business plan. If you have a good and workable business plan, you may not have to work on your own before convincing your bank, investors, and your friends to invest in your business.
Here are some of the options that you can explore when looking for start-up capital for your private security company:
- Raising funds from personal savings and selling personal shares and property;
- Raising funds from investors and business partners;
- Applying for a loan. You can apply for a bank loan. But be ready to wait for 3-7 days as bank loan processing takes time. Another important condotion is that you have a good credit history. If you need money urgently or have a bad credit history, the easiest way to get fast cash is by applying for a loan Salem Oregon. Many entrepreneurs choose these loans because they are easy to access and the process involves no collateral. You can even apply for a loan online without going anywhere. If accepted, funds are credited to your bank account the same day you apply. Eligibility criteria are relaxed: you only must be a legal Oregon or resident, have a bank account and a source of income (any type of income is suitable). You can find basic information about payday lending in Oregon on reputable Internet portals like https://www.lakevieworegon.org/. Here you can also check out companies’ ratings, read testimonials posted by real people, and apply for a loan online;
- Submitting your business idea and applying for business grants and seed funding from donor organizations and angel investors;
- Borrow money from your family or friends.
When it comes to launching a standard bakery business, you need the following specialists:
- General manager;
- Head baker;
- Baker’s helpers;
- HR and administrators manager;
- Accountant / cashier;
- Product manager;
- Marketing and sales director;
- Drivers / distributors;
- Security guard.
How much does it cost to start a bakery business in Oregon?
These are the main expenses that you are expected to incur when starting a standard bread baking business in Oregon, USA;
- The total fee for registering a business in the United States of America is $750;
- Legal costs for obtaining licenses and permits (health department license and business license) and permits (fire department permit), Commercial kitchen / bakery permit, air and water pollution control permit, entry permit, etc.), and accounting services (CRM software, payroll software, machine software and other software) $15,300;
- Marketing advertising costs for the grand opening of the bakery in the amount of $3,500, as well as the printing of leaflets (2,000 leaflets at $0.04 per copy) for a total of $3,580;
- The cost of hiring a business consultant (including writing a business plan) is $2,500;
- The cost of insurance (general liability, theft, workers’ compensation and property damage) totaling $30,400;
- Rental price for a standard building in a good and centralized location $200,000;
- The cost of reconstruction of the facility and construction of a commercial bakery is $100,000;
- Other start-up costs, including office supplies ($500) and deposits by phone and utilities (gas, sewage, water and electricity) ($6,500);
- Operating expenses for the first 3 months (salaries of employees, payment of bills, etc.) $60,000;
- Initial inventory and selling expenses. bakery equipment (ingredients for baking (flour, yeast, dough, sugar, butter, milk, etc.), supply of packaging materials, standard commercial oven, proofing boxes, baking trays and trays, baking trays, stirrers, work tables, sinks, slicers, scales, cake decorations;
- Tools, ingredient bins and bakeware, filing cabinets, notice board and staff uniforms, etc.) $100,000;
- The cost of store equipment (cash register, security, ventilation, signs) $13,750;
- Cost of purchasing and installing video surveillance systems: $5,000;
- The purchase price of furniture and gadgets (telephone, printing machines, flat-screen TVs, audio systems, computers, tables and chairs, etc.) is $25,000;
- Cost to create and host a website $600;
- The cost of opening a party is $8,000;
- Other expenses $5000.
You will need an estimate of $700,000 to successfully set up a medium-sized bakery company in Oregon, USA. Please note that this amount includes the salaries of all staff for the first 3 months of work.
Starting a small but standard bakery that can only focus on baking muffins and other flour snacks and with fairly used baking equipment in Oregon, USA would cost roughly $50,000 to $150,000. Please note that this amount includes the salaries of all staff for the first 3 months of operation and with a distribution network that only covers the immediate community.
When it comes to starting a large bakery business with multiple outlets in key cities in the USA, a bakery with the intention of selling franchises, as well as baking breads and all types of baked flours such as snacks and cakes, then you should be ready to spend $2 million. Please note that this amount includes the salaries of all staff for the first 3 months of work.
Tags: bakery, Business, finance, Oregon