Getting into entrepreneurship is becoming a popular trend among the youth in Kenya. Starting a small bakery business is a profitable business idea you can explore especially if you have a passion for cooking.
That said, owning a bakery business needs a lot of commitment and capital but it’s a great way to earn extra income.
A bakery is also a good business idea because baked goods are quite popular and move quite fast. Baking also requires little to no formal training but if you need to sharpen your skills, you could consider taking a few baking classes.
If a bakery is a business you would like to get into, here is what you need to know.
1. GETTING STARTED
Register the bakery – If your plan is to run your bakery as a full-fledged business, you will need to register your company name (cost – approx Ksh.1,000), register your limited company (cost – approx Ksh.30,000), get a KEBS license (cost – approx Ksh.20,000) and a single business permit (cost varies from county to county)
Licenses – To run a bakery business, you’ll also need these licenses;
a) Food handling Medical Certificate – This certificate makes sure people who handle your food are free from disease. It costs Ksh.600 and is valid for 6 months.
b)Food Hygiene Certificate – Valid for a year and starts at Ksh.300 depending on the size of the business.
c) Fire Safety Certificate – Valid for a year and costs Ksh.3,000.
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2. THE BUSINESS
Get Your Recipes Ready – Create a list of all the baked goods you intend to sell. Start with a few items and diversify to more products with time. Prepare a Menu. Prepare a Price list that puts into consideration the cost of ingredients, labor, and any other expenses.
Get Your Ingredients Ready – Purchase all the ingredients you need; flour, sugar, etc. Also purchase packaging materials, labels, boxes, and anything else you’ll need.
Marketing – Find out your target market. Baked products sell quite fast in offices, schools, canteens, and local kiosks. Where exactly is your demand?
Figure out how to grab the attention of your target audience by using specific marketing strategies like using fliers, posters, social media, etc.
Network – Attend relevant events, workshops, and meetups organized by bakers groups in order to grow your networks.
3. INVESTMENT
Starting a small bakery will set you back any amount between Ksh.100,000 – and Ksh.150,000 inclusive of licenses and required business permits.
Here is a breakdown of the basic items that you’ll need to start out.
Basic Ingredients (prices are approximated)
- *Wheat Flour (1 bale) – Ksh.1,400
- *Sugar (50kg) – Ksh.7,000
- *Margarine (carton) – Ksh.2,000
- *Icing Sugar (5kgs) – Ksh.850
- *Baking Powder (4kgs) – Ksh.500
- *Eggs (Tray) – Ksh.300
- *Milk (box) – Ksh.500
TOTAL – Ksh.12,550
Utensils
- *Electric Hand Whisk – Ksh.3,700
- *Cookswell Oven – Ksh.26,000
- *10 Baking Pans – Ksh.2,500
- *Icing spatula – Ksh.550
- *Noozle set – Ksh.1,500
- Other utensils – Ksh.2,000
TOTAL – Ksh.36,250
Others items include
- *Charcoal – 1 bag Ksh.1,500
- *Fliers, Brochures – Ksh.1,500
- *Cleaning agents – Ksh.1,000
- *Packaging Materials and labels – Ksh.2,000
- *Miscellaneous – Ksh.5,000
TOTAL – Ksh.11,000
TOTAL INVESTMENT: 11,000 + 36,250 + 12,550 = KSH.59,800
Depending on the quantity and demand of your baked products, you can make up to Ksh.5,000 a day.
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Expected challenges
Some of the expected challenges include but are not limited to price fluctuations of raw materials like sugar, and flour. Not forgetting that baked goods are perishable thus they need a ready market when they are still fresh.
FINAL WORD
Just like any other business, starting a small bakery is not a smooth sailing venture.
However, as long as you have figured out your target audience, got the required equipment, got the required ingredients, have your recipes in place, figure out your workspace, got all the required licenses & permits and a marketing plan, you are ready to go.
This article was first written in the PROFITABLE BUSINESS IDEAS WhatsApp group By; Timothy Angwenyi (Business Consultant +254701711058)
