20/01/2019
How to start a bakery business
With bread being the country’s second staple after rice, the bakery business is one of those ventures that is sure to bring multiple returns with just a minimal investment. By taking the time to learn the craft, you too can start your own bakery business and potentially make good money out of it.
A TICKET TO PROFITS
Take the case of former bus inspector Godofredo Molde, 45, who has pocketed P500,000 in just a year of selling pan de sal. Armed with P150,000 in startup funds and a lot of guts, he took the plunge of starting his own business - and came out on top. He has parlayed his bold investment to foot house repairs and acquire a delivery truck for his growing business.
"I used my P150,000 capital in acquiring the three small pan de sal stores of my friend’s brother, and that included some goodwill money for the recipe and training. I have added another store since," he said.
The revolving daily capital for the four stores, he said, is only P7,000. Molde decided to concentrate on pan de sal because its market is more predictable and the stores only need to stay open from 5 am to 9 am.
One of his stores, sells P6,000 worth of pan de sal daily during weekends, and P4,000 during regular days on the average. According to him, pocketing a cool P2,000 profit is the norm for each of his bakeries.
A PROFITABLE BUSINESS
Ric Pinca, executive director of the Philippine Association of Flour Millers (Pafmil), agrees that indeed “baking is a rewarding and profitable business.”
“Bread is the country's second staple and everyone eats bread. Though consumed mainly as breakfast and snack fare, bread is also taken at lunch, usually as burgers and even dinner time. Bread is a convenience type of food. You don’t have to sit and have a formal dinner just to eat bread. In fast food shops, you may get your bread right at the counter and you even dont have to call a waiter to serve you.”
Bread, he added, may be consumed while walking, riding a bus or even while whiling away time anywhere.
But while the bakery business is a profitable one, Pinca said it is also a demanding profession. Aside from investing money, he said a good amount of time, patience and study is required if one is to put up a successful bakery business.
SET UP YOUR OWN BAKERY
Pinca shared these tips on how you too can start a bakery business from scratch:
1. Study the business
Before you put up a bakery, you must first learn how to bake. Many people make the mistake of putting up a bakery without first knowing how bread is baked. It is not enough that you hired bakers to do the work, you must also know the baking process so that your bakers would not give you a run-around.
A month of training is enough especially if the training program you enroll in has plenty of hands-on activities, meaning you are asked to bake and not just sit and listen and watch the demonstrations. There are a lot of training centers and culinary schools offering baking courses.
But the best baking courses are offered by the flour mills themselves. And more often than not, these courses are offered free of charge to prospective bakers as part of the company's marketing efforts. So get in touch with any of the local flour mills and ask for their training schedules.
2. Look for a good location
A food business like a bakery depends on high human traffic. Look for a location where people congregate like a market, near a school, a bus or jeepney terminal or even a tricycle terminal and put up your bakery there. The people that populate your area are your target customers.
3. Suit your products to your customers
If your bakery is in Tondo, then your products should suit the people of Tondo. Do not produce pastries like apple streudels or Italian Rye Breads or Belgian cookies because these products are not the type that people in Tondo consume. These products are for the shopping mall crowd. Try producing pan de sal, Monay, tasty breads, ensaymada etc. These are bakery goods that people in Tondo are familiar with and regularly consume. Also, these are products they can afford.
4. Start small
It is better to start small especially if you are new in the business. If the business grows, then it will be easy for you to expand, rather than start big and downsize later. Suit the type and size of equipment you will buy to the volume of products you want to produce. remember, you should not produce more than you can sell.
5. Buy the right sized equipment
Do not get a mixer with a one bag of flour capacity if your oven can only take in eight plantas or 160 pcs of pandesal at a time. One bag of flour normally produces 1,880 pieces of pan de sal weighing 25 grams each. Get technical help from equipment dealers. Do not just deal with one. Get the best offer and technical advise you can get.
6. Maintain product consistency
Make sure that your bread tastes the same today as it did yesterday and as it would tomorrow. Customers return to buy bread when they like its taste. Do not give them a different tasting bread when they return because they will either complain or not return anymore.
7. Be good to your employees
Take good care of your employees and give them the right salary. If your employee is happy, they will take care of your business and make sure that your customers are happy too. A happy customer will always return and buy more. And you are assured that your business will grow.
Read more at http://www.entrepreneur.com.ph/startup-tips/how-to-start-a-bakery-business/page/1
Why not a bakery business?
By Ric M. Pinca
Are you planning to put up a business? Why not try a bakery? It is profitable, can be started at home and allows the owner to grow the business gradually as his capital, interest and knowledge of the business increases.
Filipinos love to eat bread and the business minded should keep this in mind. Pandesal is the usual breakfast fare most Pinoys can’t do without before starting their days. Snacks are usually a few slices of bread taken with coffee, softdrinks or fruit juice. An aspiring bakery businessman should therefore have these two products in his list and expand from there.
Other Pinoy favorites are ensaymada, pan de coco, monay, and mamon, while the more affluent ones may opt for cinnamon rolls, French bread, hamburger buns and other more sophisticated and therefore, costlier stuff.
The enterprising baker must know his market and tailor-fit his products to the kind of customers he caters to. A bakery in Tondo, for example, must have products geared for the Tondo market and not for the more sophisticated Makati or Greenhills crowd.
From one sack of flour, and using the most common formula for the production of loaf bread, a baker can produce 81 loaves weighing 550 grams each. Total cost of materials, packaging and overhead cost is P2,536.13. At a selling price of P40 per loaf, gross revenues will add up to P3,240 for a gross margin of P703.87 per bag.
For pan de sal, gross earning per sack of flour is even bigger due to the lower cost of pan de sal flour and less ingredients to be used. Each bag of flour produces 1,800 pieces of pan de sal weighing 25 grams each. At P2 per piece, total sales is P3,600 for a margin of P2,517.63 per sack. From these gross earnings, the baker must deduct the cost of manpower, rentals and of course, taxes to be paid.
The prospective bakery businessman must, however learn how to bake before jumping into the pan, so to speak. In fact, any businessman worth his salt must first learn the trade he wants to invest in before pouring in his hard earned money. One must not depend entirely on hired hands to run the business. This is particularly true in baking.
The best place to learn baking the commercial way is at the PAFMIL Baking Center at the DSWD Jose Fabella Compound, Correctional Road in Mandaluyong City. This baking school is run by the Philippine Association of Flour Millers (PAFMIL) and is staffed by well-known and competent baking instructors who have many years of experience of baking instruction. Visiting instructors from the flour milling and bakery industries also come in to impart knowledge and valuable inputs.
Aspiring bakery businessmen or those who wish to be employed as bakers must take the Basic Commercial Baking Course, a 20-day program designed to equip trainees with a combination of skills and knowledge in baking. Each student is required to produce bread every day and critique his production so that he could improve and produce better bread the next day. Only 25 students will be taken each class and the course will be offered only four times a year.
Read more at http://www.philstar.com/agriculture/633662/why-not-bakery-business
