2. Business requirements
Once you have decided on a business name and entity (CC, partnership, company, or sole proprietorship), the business name, and entity can be registered through CIPC.
The next step is to prepare a business plan. This must include a description of the bakery, the marketing plan, the management plan and the financial management plan.
Finding money to start
You may need to obtain financial support to start the bakery. Different sources of financial support include personal credit cards, savings, personal investments, a bank loan, government grants, small business loans, help from family, or an investment by an individual who is successful in the field.
Starting marketing the business as soon as you can
Generate interest in the bakery before opening by putting up a sign and distribute pamphlets as soon as possible. This way you can promote the opening by offering a special offer for opening day and promote the products you are planning to sell.
Zoning
If you are planning to open retail premises, find a suitable building to rent or purchase. It is important that you check with the local municipality that the property is zoned for this type of business.
Health requirements
No business can sell prepared food to the public until they have a health certificate. During a health inspection the council will check:
- Sinks and tables in the food preparation area (these should preferably be of stainless steel, which is easy to clean and does not harbour dirt and bacteria)
- Ceilings, walls and floors (for cracks where bacteria might breed)
- Ventilation and lighting (to avoid damp and dark)
- Storage facilities like fridges and deep freezers (to ensure everything operates at the right temperatures – bacteria thrives between seven and 65 degrees)
- Clothing and equipment (such as headgear, overalls and gloves) to be worn by staff who prepare or handle food.
Equipment
- Mixers and ovens depending on what you intend to bake
- Wrapping material, bags, boxes, etc. for customers buy goods to take home
- Cooling racks for the food
- Display cases so you customers can see all of the goods you have available.
- Baking dishes and pans in all different shapes and sizes.
- Mixing bowls to accommodate any job
- Chemical detergents and sanitisers to keep you kitchen clean and safe
- Various cutlery and utensils that you will need to make the baked goods
Buying ingredients
Look for local wholesalers for goods such as flour, sugar, eggs, milk, chocolate and other baking ingredients. Once you find a few, give them a call to check prices.
You can set up accounts with the wholesalers or pay cash on delivery. If you want a successful operation, do not compromise on quality. The cheapest ingredients may not have the quality you want.
Setting the right price
Ongoing costs, such as ingredients and raw materials, packaging and promotional expenses must be factored into your budget.
Prices should take into account things such as employee labour and the cost of the premises including rent and utilities such as water and electricity in addition to the cost of the goods used to make the finished product.