Business Plan

How To Start An Online Bakery Business

Want to sell cake but wondering if it's really a cakewalk? Yes, it’s true that there are some steps you must take before you can start an online bakery business. But they sure are worth the hassle! Keep reading to learn more.

Over 60% of Indian respondents in a recent survey said they would prefer some form of contactless shopping over physical stores. This sentiment furthers the cause of Aatma Nirbhar Bharat (self-reliant India), a call from the Prime Minister to India’s small businesses to rely on locally made products. Respondents even said that they were willing to buy bakery items, mithai (Indian sweets), and gift boxes online if they were available.

Are you interested in starting an online bakery? Excellent decision! If you already have a bakery, you can easily move your operations online. Alternatively, if you are thinking of starting a fresh venture and considering starting an online bakery shop, there is never a bad time to do so. 

How to Start an Online Bakery Business

The step-by-step procedure mentioned below will give you a fair idea if you are thinking of how to start an online bakery-

Step 1: Make a Proper Bakery Shop Business Plan

The first step is to ‘discover’ your catering niche. Look for opportunities and trends in your target market and try to leverage demand. You can create a menu for each of the areas you have finalized.

Once you study the market, try to get real feedback from potential customers, and think of how you can ‘fill the void’. 

Next, you must make decisions on the kitchen space you need and your storage requirements. If you are looking to start an online bakery shop or a part-time business, you can always rent kitchen space to suit your needs.

Step 2: Plan for the Logistics

One simply cannot ignore the fact that most baked goods are perishable in nature. Therefore, you need to plan for storage and how you are going to deliver your products to end customers. For this, you need to take into consideration how long delivery will take. 

You also need to make arrangements for storing raw materials and finished products so that you can cover for possible fluctuations in demand.

Step 3: Decide on your Budget & Capital Source

The budget for an online bakery can vary according to your preferences. Hence, you must make a plan on how you will be spending your money on on-site equipment, licenses, logistics, rental costs and other such expenses according to your budget.

If you do not have enough money to launch your online bakery, you can always approach investors. You will be able to easily attract investors if you are able to show your business as profitable and viable. 

Additionally, you can also look into the various government ministries that offer incentives to small business owners. You can also approach these agencies/departments for subsidized loans and other financial assistance.

For help with making your business plan and applying to the government for subsidies, you can always reach out to the experts at Vakilsearch

REGISTER YOUR BUSINESS

Step 4: Create your Online Bakery Business Platform

After you have done all the planning, it’s time to build your online presence. The first step is to create a website, either by using a web application or by using a custom domain. 

On the website, use a landing page to reach out to the targeted customer base. Here, the customers can leave their details and place an order after going through your menu on the website. 

Make sure the customers find it easy and hassle-free to buy from you and to make payments. You can also ensure an enriching user experience by using site builders and modern tools such as Wix, WordPress, Paperform, Jotform, and so on.

Moreover, you should also feed high-quality content on your website to showcase your items to a larger audience. You can also publish blogs based around the bakery items on your website to engage potential customers and build trust with them.

Step 4: Get the License /Registration for Your Online Bakery Business

You need to register various different types of permits and licenses before starting your business. This is because the Government of India issues quite a few licenses to businesses that deal with food items especially online. Additionally, registration with FSSAI is mandatory to produce and deliver your baked goods to customers. 

Get in touch with the experts at Vakilsearch to know more about the required approvals/permits so that you can avoid unnecessary legal/statutory hassles in the future.

Step 5: Build your Brand

Now, let’s assume your products and the online platform is ready to launch. The next important step is to build a unique brand. Try to envision a brand presence that represents the unique ‘thing’ your business represents and how you are promising to add value to your customers’ lives.

Further, what is the core value aligned with your business? What underlying needs will your business satisfy? Communicate all these to your potential customers with a ‘touch’ of quality and authenticity. This will make your brand special and will help it stand tall amidst the competition.

For help designing a memorable and remarkable logo get in touch with the logo designers and trademark experts at Vakilsearch.

Step 6: Focus on Marketing

Lastly, you simply cannot afford to ignore the value of marketing in this day and age. Take a look at the below-mentioned marketing techniques to generate leads and convert them into customers for your online bakery business.

  1. Use the power of social media – Millennials and other potential customers are readily available on social media platforms such as Whatsapp, Facebook, and Instagram. You need to ensure a consistent presence on these platforms to generate fruitful connections.
  2. Offers and Campaigns – Organize campaigns in banquet halls, malls, and other prominent places. Provide offers to repeat buyers and request referrals.
  3. Word of mouth – This is very important for an online bakery shop. Form a personal connection with your customers so that they spread good ‘word of mouth’ regarding your offerings/services.

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