How To Expand Your Bakery Business Using Business Loan?

Bakeries are currently in high demand, given the frequent occurrence of special occasions and events. People are consistently seeking quality bakeries for their needs. If you are one of the bakery business owners looking to expand your business, this article is for you. This article will provide information on growing a baking business, highlighting how a Business Loan can fuel your growth plans.

Before discussing Business Loans, let’s begin by understanding the types of bakery businesses, how to start one, and how to make it successful.

Types of Bakery Business

Here are the various types of bakery businesses you can explore:

Business	Estimated Cost
Retail Bakeries	25-30 Lakhs*
Wholesale Bakeries	40-50 Lakhs*
Types of Bakery Service	15-20 Lakhs*
Cafe and Bakery	30-35 Lakhs*
Online Bakery Services	15-20 Lakhs*
Specialty Bakery Services	35-40 Lakhs*
Franchise Bakeries	50-55 Lakhs*
Catering Bakeries	30-35 Lakh*

• Retail Bakeries

Retail bakeries serve customers directly, offering a variety of baked goods. They are local, customer focused, and often include storefronts with various individual pastry options.

• Wholesale Bakeries

Wholesale bakeries produce large quantities of baked goods, supplying to establishments like hotels, restaurants and grocery stores. They operate on a larger scale, providing bulk orders to commercial clients.

Also Read: Nature of Business - All You Need to Know About It

Types of Bakery Service

Explore diverse bakery services, from retail storefronts and wholesale supply to cafes, online platforms, speciality services, catering, and franchise models.

• Cafe and Bakery

Café and bakery combos create cosy spaces for customers to enjoy fresh baked goods with beverages. This model blends a café's charm with a bakery's delectable offerings.

• Online Bakery Services

Online bakery businesses operate through digital platforms, allowing customers to conveniently order and receive baked goods. They offer a modern and accessible approach to bakery services.

• Specialty Bakery Services

Speciality bakeries focus on unique and niche products. They may specialise in specific types of pastries, dietary preferences, or cultural specialities, catering to a distinct market.

Also Read: How to Start an Online Business from Home?

• Catering Bakeries

Catering bakeries provide baked goods for events and occasions, offering various options tailored to specific client needs. They specialise in serving large gatherings and celebrations.

• Franchise Bakeries

Franchise bakeries replicate a thriving bakery business model across multiple locations. This approach allows consistent branding, operations, and product offerings, ensuring a standardised customer experience.

Also Read: How To Start A Clothing Business: 7 Easy Steps (2024)

How to Start a Bakery Business and Make It Successful in India?

Starting a baking business in India with the right information is essential to ensure success. Here's how you can do it:

Create a Business Plan

1. Outline the bakery's vision, mission, and target audience.
2. Include financial projections and operational strategies.
3. Use the SWOT analysis as a roadmap for decision making and growth.

Choose the Perfect Location

1. Consider foot traffic and competitor presence.
2. Opt for a location accessible to your target market.
3. Enhance visibility for increased customer traffic.

Get all the Licences and Permits

1. Obtain health permits and food licences like FSSI.
2. Ensure compliance with local business regulations and obtain the municipal corporation health licence.
3. Legal adherence, such as GST and fire and police licences, is crucial for smooth operations.

Also Read: How to Start a Real Estate Business in India?

Hire Manpower To Open A Bakery

1. Recruit a skilled and reliable team.
2. Hire experienced bakers and customer service staff.
3. A competent workforce ensures quality and service excellence.

Buy Essential Equipment

1. Invest in bakery essentials like ovens and refrigerators.
2. Ensure highquality equipment for efficient production.
3. Attractive display cases contribute to product appeal.

Install POS >Install POS & Billing Softwareamp; Billing Software

1. Implement a Point of Sale (POS) system.
2. Use billing software for efficient transactions.
3. Enhance operational efficiency and customer experience.

Branding and Marketing of Bakery

1. Create a distinctive brand identity and logo.
2. Develop appealing packaging for products.
3. Implement effective online and offline marketing strategies.

Partnering with Online Food Aggregators

1. Extend reach through online food aggregators.
2. Collaborate with platforms like Swiggy and Zomato.
3. Increase visibility and facilitate online orders and delivery services.

Also Read: How to Start a Grocery Store Business in India 2023?

How Business Loans Can Help You Expand Your Bakery Business?

If you have already started a bakery business and are looking to scale your operations, a loan for business from Hero FinCorp can provide unsecured funding. You can use the funds to buy or upgrade your equipment, renovate the premises or for any business related purpose. You can also use the capital to open a new store and invest in commercial ovens, display cases, and marketing to expand into the bakery segment. 

Key highlights:

• Obtain unsecured funds of up to Rs 40 lakh for equipment, inventory, and new setups.
• Choose flexible tenures of up to 60 months for stress free loan repayment.
• Get Business Loans at competitive interest rates, starting at 14%.
• Ensure stability during the different growth phases of your bakery business.

How to Apply for a Business Loan to Expand Your Bakery Business?

Here's a step-by-step guide to applying for a loan for business from Hero FinCorp:

• Visit the Hero FinCorp website and go to the Business Loan page.
• Complete the Business Loan application by clicking Apply Now.
• Fill out essential fields and upload the required documents.
• Enter the desired business loan amount and preferred tenure.
• Receive a reference number for future use after submission.
• Hero FinCorp's representative will reach out for additional details.
• Get a personalized loan offer with the amount and interest rate.
• Once you accept the loan offer, the amount will be disbursed to your bank account.

Also Read: How to Start a Stock Trading Business in 2023?

Conclusion

Expanding your baking business after starting and running for a few years is wise. 

While the expansion may seem challenging, a Business Loan can provide the necessary financial support. With strategic planning, a solid business expansion plan, and access to unsecured loans for business from Hero FinCorp, baking business owners can turn their venture into an empire. 

In short, you can succeed in the competitive bakery business segment with the right expansion strategy and Hero FinCorp’s financial assistance.

Also Read: How to Start an Export Business in India

Frequently Asked Questions

1. Is a bakery a profitable business?

Yes, bakeries can be profitable with the right planning, quality products, and effective marketing to attract and retain customers.

2. Which is the best bakery item?

The best bakery item depends on customer preferences. Popular choices include pastries, bread, cupcakes, and custom cakes tailored to local demand.

3. Is it hard to open a bakery?

Opening a bakery requires planning and effort, but it is achievable with dedication, a solid business plan, and the right resources.

4. What types of business loans are available for a bakery?

Various business loans, such as term loans, working capital loans, and equipment financing, cater to different needs in the bakery industry.

5. How much funding do I need to start a bakery business?

Funding requirements vary, as factors like location, size, equipment, and initial inventory contribute to the overall cost.

Disclaimer: The content provided in this document is for informational purposes only. It offers insights into the process of starting a business, potential benefits, and various aspects related to this field. The information is based on general knowledge and industry research. The costs provided are only an approximation, and the actual expenses may vary depending on the specific industry of your business.