How to Start a Bakery Business from Home in Canada

Want to start a bakery business from home in canada? Then here you find a complete guide on starting a profitable bakery business from home.

Artisan bread, biscuits and cakes have been around for hundreds of generations. We have all bought these baked delicacies at some time, whether in a luxurious bakery or in a neighborhood one. 

And it is that the origin of the bakery goes back to ancient civilizations when man began to grind and process cereals to consume them. Since then it has evolved to what we know today, becoming one of the most traditional businesses in the food industry . 

Which, thanks to the improvement of the bread production processes, offers the possibility of starting in an establishment or at home. And in turn to complement other businesses such as restaurants and bars. That is why in this article we will show youhow to start a home bakery business .

We will also share a list with you with everything you need to get started and some tips to promote your new business . So if you are a lover of bread and pastries and want to start a bakery at home, this information is ideal for you.

Start a Bakery Business from Home in Canada

Wondering how to start a home bakery business in Canada involves thinking about the process to follow to do it correctly. The process that can be confusing if we do not have the basic knowledge and sufficient information. 

Therefore, below we will see everything you need to start a bakery business from home in Canada.

1. Market study

Conducting a market study is an essential step when starting any business, large or small, and a home bakery is no exception in Canada of any other country.

The market study allows you to identify the competitors of your business, their market share and positioning in the area. As well as specifying the target audience and the type of consumers you are going to target. Taking into account that you are going to open a bakery at home, your customers will surely be people from neighbors or from neighboring areas.

This will allow you to more easily know their consumption habits, characteristics, tastes and preferences. And from this, think and propose the promotion strategies of your business.

2. Business planning

Knowing the correct way to start a home bakery business in Canada is determined by business planning, as the entire process and decisions are managed based on such planning. This implies defining the main characteristics of the business and the products that you are going to offer.

Here you specify what you are going to sell, as there are many bakery products that you can cover. Try to include a wide variety of products prepared with as many types of bread as possible: wheat bread, corn bread, sprouted bread, rye bread, and spelled bread are some of them.

You can also offer cookies, pies, cakes, cupcakes, pies, and poles. So your customers will have different options to choose from and you will be able to satisfy the needs of different consumers.

Within planning you should also think about the value proposition of your business. That is, that differential with respect to the competition and that added value that you will bring to customers. For example, higher quality products, more accessible prices, a special type of bread from the house, promotions or combos.

The important thing here is that it is something very typical of your bakery and that it makes customers prefer it. In addition to this, you must also specify the form of distribution of your products .

As we refer to a home bakery, you can handle two forms of distribution. The first through addresses, taking orders to the homes of customers. And the second, dispatching the orders in your bakery and having the customer pick them up.

Both are very functional and you can apply them depending on what the client requires.

3. Budget

As part of planning when starting a home bakery in Canada you must set an investment budget.

The budget to open a bakery should include the costs of machinery, equipment, raw materials, training, legal procedures, research, advertising and marketing. As well as a working capital referred to an amount sufficient to cover the initial expenses while the business begins to generate profits.

4. Equipment and utensils

Perhaps putting a bakery at home will help you save on some expenses related to the equipment of the business. However, it is important that you are clear about the equipment and utensils essential for the operation of your bakery .

Teams

• Oven: It can be gas or electric and it is recommended that it have at least 6 trays and 3 chambers. This is enough to bake a good amount of bread in no time. The ovens allow you to control the time, the temperature and with the different chambers to bake several types of bread at the same time.
• Kneader: Also known as a fountain, it is the one that allows to knead the ingredients and give the dough a uniform and elastic texture. It has a weight capacity that ranges from 25 to 120 kilograms.
• Growth room : The growth room or controlled fermentation chamber is the machine used to give volume to the bread and raise it to the appropriate temperature.
• Balance or gramera: These can be mechanical or digital. The mechanics are a bit cheaper, but have a greater margin of error; while digital ones are more accurate with a minimum of error. The weight capacity of both ranges between 3 and 6 kilograms.
• Refrigerator: Indispensable for storing ingredients that require preserving the cold chain.
• Blender: You can choose between an industrial stainless steel blender or enamelled sheet. Its function is to make a homogeneous mixture of the ingredients.
• Work table: Bakers use it to assemble, decorate and pack their products. They are generally made of stainless steel.

Utensils

• Measuring jug
• Roller
• Bowls
• Molds
• Spatulas
• Dough scraper
• Slice
• Saw knife
• Brush
• Stainless steel strainer
• Pastry bag

5. Training

Part of being successful in the process of starting a home bakery business is having sufficient knowledge of the bakery trade. Therefore, it is important that you take courses, training or classes in baking and pastry, in order to distinguish between the different types of dough, oven management and pastry techniques. Training will allow you to guarantee a higher quality of production and customer service.

6. Licenses and permits

When you wonder how to start a bakery business at home in Canada, it is inevitable to think if for this you must comply with any legal requirement, and the answer is yes. Any business related to food and beverages, whether it operates on-premises or at home, needs a series of permits to operate.

These permits include the operating license, food handling certificate, food safety and hygiene regulations , among others. In addition to this, it is also necessary to give a business name and register it under a legal structure depending on the country in which it is located.

That is why it is important that you request advice from the public bodies and entities in your country in charge of the regulation and registration of new companies. With that you will have more clarity about the specific legal procedure that you must follow for this type of business.

7. Suppliers

The excellence in your products will depend largely on the suppliers that supply you with the ingredients for the preparation.

Make sure you invest enough time to list with multiple companies. So you can compare prices, quality and purchase conditions and then make a decision and choose the one that best suits your needs and budget.

Keep in mind that it is much more functional to hire a single comprehensive provider that can supply you with everything you need . With this, you will avoid incurring extra expenses and you will be able to access a more reasonable offer with benefits such as discounts and loyalty incentives.

8. Alliances and promotion

This point is very important because here you determine how you are going to promote your business and how you are going to make it known to the public . A good strategy is to create alliances with neighboring businesses such as markets, cafes, bars or restaurants that can distribute your products.

You can also participate in local events and fairs where you can make a place for yourself in their food court. There, in addition to showing your business, you can distribute cards and flyers to provide more information about your bakery at home.

On the other hand, don’t forget that advertising also makes a business, so you should prioritize implementing digital marketing strategies . Take advantage of the rise of digital channels and create a website, invest in ads, use company profiles on social networks and share content related to your business.

This way you will not only attract the attention of consumers, but you will also be able to communicate with them and get to know them more thoroughly. This, in turn, will help you improve your value proposition and your offer.

How Much Does Starting a Bakery Business from Home in Canada Make Profit?

Talking about a profit percentage when starting a home bakery business is somewhat complicated, since each venture is managed differently. In addition, profits depend on the location of your home, the quality of the products, the innovation of the business and the strategies of promotion and marketing . As well as people’s consumption habits, competition and the demand of the sector.

However, it is possible to estimate the sales margin the bakery is expected to have. Generally, bakeries are projected to sell at least 50% of their total production . The above, taking into account that at the beginning of the business, sales may be minimal. This percentage may vary as the bakery grows, gains customers, and adapts to market needs.

How much money does it take to open a bakery?

Knowing how to put a bakery at home requires a clear investment budget required for it. You must bear in mind that here the costs of equipment, ingredients, supplies and legal permits are fundamentally considered, as these are the ones that mean higher expenses.

The average cost of the equipment mentioned above is roughly $ 2,500 to $ 3,000 . And this may vary depending on the capacity, characteristics, brand and condition (used or new) of the equipment.

As for permits and procedures, their value will depend on the legal structure of the business and is determined by the guidelines for each country.

Additionally, you must take into account the value of other expenses such as training and advertising. So when planning the business and setting the budget be sure to quote these services.

Based on the above, it is possible to estimate that to set up a home bakery a budget of around 5,000 USD is needed. Whether it is a little more or a little less will depend on your idea and business goals.

Tips for Promoting Your Home Bakery Business in Canada

In this business, it is not enough to just think about how to open a bakery at home and have the budget to do it. It is also necessary to propose certain strategies to promote it and make it known.

This innovation is crucial, as it will be the element that will achieve gain prominence in the market and differentiate yourself from the competition. Therefore, we will give you some tips that you can apply to attract customers and start positioning your bakery.

1. Offer new lines of products and services

It is clear that the star product of a bakery is bread and its derivatives, but that does not mean that you cannot diversify the offer. Prepare and offer consumers a product that none of the other bakeries in your area sells . This will help you stand out from the competition and allow customers to distinguish you for that particular product.

In addition to diversifying the product offering, you can also add new services , such as the delivery of snacks and snacks at parties and events. Or take care of the preparation of personalized cakes for birthdays.

Another good idea is to enable online shopping for your audience. In a world so connected to the internet, this is an excellent way to facilitate the consumption of your products and services.

2. Sell for specific niches

The idea of marketing products to a specific audience segment can represent great opportunities to expand your business regardless of whether you continue to operate it at home.

For example, you can offer gluten-free and lactose-free products, or vegetarian and vegan options and distribute them through addresses to different parts of the city. This is a very innovative way to reinvent your bakery at home while all your competitors are working on the same proposal. Thus you will be able to attract an exclusive part of the market and increase your profits.

3. Take advantage of social networks

One of the most common questions about starting a home bakery business is thinking about how to promote products.

As we are referring to a business without a place open for customer service, digital channels become vital in this process. Here social networks stand out, since on average people spend 2 to 3 hours a day connected to social networks .

So having a presence on Facebook, Instagram and Twitter will help you to have a direct communication channel with the audience, attract their attention and motivate them to buy at your bakery.

Bakery products have great visual appeal, which you can take advantage of to post creative images and eye-catching photos that generate interest in consumers. In addition, you can create discount tickets or lightning offers for the followers of your pages and thus generate more participation and incentivize the purchase.

4. Create loyalty campaigns

In addition to gaining new clientele, it’s also important to take care of the one you already have and make sure it’s loyal to your bakery.

One way to do this is by launching incentive campaigns to reward their preference for your business . For example, offering a free box of muffins for purchases over $ 10. 

5. Invest in digital marketing

The Internet creates innumerable possibilities for innovation for all types of businesses. As a result, investing in digital marketing strategies will help you improve your online presence, expand your market, and get closer to consumers.

In addition, it will allow you to provide a more complete experience to your customers, offsetting a bit the fact of not having a place to serve them. The above, offering attention and information through your own website, social networks, email and even a blog.

Through these channels you can also share interesting content such as pastry recipes, nutritional advice or lifestyle tips .

Digital marketing is, without a doubt, an investment with a return with which you can boost the growth of your bakery at home , as well as increase your market share and sell more .

Final words

With this information it is clear that a traditional business like a home bakery can also be profitable and innovative today. You just need to plan it carefully, have the necessary capital, prepare quality products, know the consumers and satisfy their needs.

Do not forget the importance of making use of new technologies and digital channels to publicize the business and boost its growth. We hope that after reading this article you decide to open a bakery at home. Remember that any questions that arise you can always go back and clarify them. Successes!