Here is a surprise: by 2019, the bakery industry in India was standing at US $8 billion.
Yes, you read that right, it’s a billion with a B!
Do you know what that means?
Now more than ever, you can start and run a successful cake business in India, and that is what this article is about.
I will walk you through steps you can take now and have your business as soon as possible, and guess what, I won’t stop there. I mean, what’s next once you have your business? I will go one step further and give you strategies to make your bakery business as successful as it can get.
If you are looking for more pointers and a comprehensive guide, feel free to engage our custom services.
In a nutshell, here is what the process looks like:
- Have a cake business plan
- Decide on location
- Get all the licenses needed
- Get the necessary equipment
- Design the business premise
These and other steps you will learn in this post.
Let’s get started, shall we?
Create a cake bakery business plan
As they say, without a plan, you are planning to fail. Having a business plan isn’t different when it comes to a cake business.
With a business plan, you can easily decide on the budget distribution, and resource allocation (knowing what is needed and what goes where), and helps you foresee future developments within the business.
With that in mind, you might be wondering what such a business plan will look like. Well, here is what you should cover:
- Summary of the cake bakery business plan – this section covers things like the history of the business (if it is an existing bakery), legal structure and ownership, and of course your mission statement.
- Business overview section – should touch on the proposed concept of the business, the type of service you intend to offer, menu sample (if you already have it)
- Industry analysis – this is the most important part of the business plan. Here, you take a deep dive into the competition, get to understand your target audience, and pinpoint the location of the business.
- SWOT analysis – don’t skip this step. Here, you will analyze the strengths, weaknesses, opportunities, and threats of your cake business. If you do this well, you will be smiling on your way to the bank sooner than you thought.
- Operation process – maps how the cake business will be operated (function) – things like order-taking, staff management, menu structure and content, and raw materials sourcing, among other operation stuff.
- Financial analysis – this makes or breaks your cake business in India. Yes, money has always been the issue. This section contains cash flow, expenses (fixed and recurring), overhead (operational) costs, etc. This section should give you a quick glimpse of how long it will take for your business to break even
- Marketing plan – this may be the last section, but make no mistake, it is the pillar of your cake business. Here, touch on who your target customer is and how you plan to reach them
I know when you see things like ‘analysis’ your mind goes boo! Boo!… but you need it. Yes, an analysis may not sound pleasant but they are the things that can make running your business easier.
Choose a location for your cake bakery business in India
Here is the thing:
You can have a billion-dollar business plan and idea, but if the location is off, you are dead in the water.
When thinking about how to make cakes for sale in India, location is among the first things you should consider.
Ideally, you need a place that is easily accessible and has a lot of foot traffic. For example just outside stadiums, high-end shopping malls, etc.
Besides the popularity, also consider things like:
- Availability of consistent water supply
- Well-maintained drainage systems
Once you nail the location, it is time for the next step.
Getting all necessary licenses to open and operate a cake business in India
Here are some of the licenses you will need:
- FSSAI license – you can easily apply for this license online or pay at least Rs 5K to agencies to help you fill out the paperwork.
- GST Registration – with the help of a charted accountant, you can have it within no time.
- Local Municipal Corporation Health License – costs something like Rs 3K with the help of a health inspector
- Police Eating House license
- Fire License – install fire extinguishers and get a license, which costs between Rs 1K – 2K.
Well, it may not be all of these (or I may have left out others), but without licenses, there is no need to learn how to make cakes for sale in India.
Because in the eyes of the law, you are running an illegal business, and this can get you into trouble.
However, you can easily avoid all the drama and get the necessary licenses before you launch.
- Hiring manpower to help with the cake business
This step is absolutely up to you. If you intend to run a one-man show, you don’t need anyone else lending a hand.
But if you are planning on having a big cake business, you will need at least 2 employees.
The idea is you get all the manpower you need to help scale the business. Consequently, this step is entirely dictated by how well your business is going.
If you intend to run all of it alone, it may be a wise decision to bring in an extra hand when orders start streaming in. The last thing you want is unfulfilled orders just because you couldn’t get help.
With that said, here is an idea:
Hire manpower on a project basis. When you have more work, bring in more people.
Order necessary equipment for the cake business
Again, if you are running a solo business, you can use what you already have to bake cakes.
But as the orders start coming in, consider adding equipment to reduce the workload and increase quality and productivity.
Also, consider things like POS and billing software. They’ll save you a ton of time.
Makeover the business premise
Make it pretty.
Add color and designs that are inviting to the eye and make customers want more.
The design of the premise should be in such a manner all the products are visible to attract passers-by.
Marketing your cake business
This is where money starts coming in.
Because without sales, there is no revenue. And without marketing, no one will get to hear about your wonderful cake business, which means no sales.
Besides obvious things like getting a logo designed, there are other strategies you can implement and see results almost immediately.
How to Effectively Market Your Cake Business in India (And Bring In Sales Almost Immediately)
The following are some of the ways you can achieve this:
- Have more than one cake recipe. This way you can have a unique variety of products to offer than your competitors.
- Go on social media and create Facebook, Pinterest, and Instagram accounts. These are platforms commonly known for images and short videos.
- Hire a delivery man or a partner with a courier company to handle the delivery of your cakes. Also, consider Cash On Delivery as the preferred mode of payment.
- If you are doing it alone, why not have some free samples? For example, make free samples and distribute them in your building.
- During the launch day, have some really attractive deals. Consider having contests this way you will attract more buzz and thus more people will get to possibly buy from you.
- Leverage reviews to bring more customers and get much-needed feedback. Open an account with sites like Yelp, and have a review section on your Facebook page. Screenshot the reviews and share them on your social media
- Take great photos of your cakes. Remember pictures speak 1000 words and will help you sell more.
Final Thoughts on How to Make Cakes for Sale in India
There you have it, how to make cakes for sale in India guide.