copyright ©2014 john wiley & sons, inc. all rights reserved. e arly s teps and k ey d ecisions...
TRANSCRIPT
Copyright ©2014 John Wiley & Sons, Inc. All rights reserved.
EARLY STEPS AND KEY
DECISIONS
Chapter One
Copyright ©2014 John Wiley & Sons, Inc. All rights reserved.
CHAPTER OVERVIEW• Concept to Reality• What Are Your
Specialties?• What Type of Bakery Is
Yours?• Franchises• Failure Is an Option• Types of Business
Organizations• Your Job as a Bakery
Owner
Copyright ©2014 John Wiley & Sons, Inc. All rights reserved.
CONCEPT TO REALITY• Choose the concepts that interest you most• Begin to identify the skills in yourself to see if you can and
want to open a bakery• Clearly express your goals for a baking operation• Learn what tool you need to make progress in getting it done.• Evaluate the marketplace to see if there is a need (for what
you want to do)
Copyright ©2014 John Wiley & Sons, Inc. All rights reserved.
WHAT ARE YOUR SPECIALTIES?
• What will my customers relate to best?
• Will I be excited to represent this to my customers?
• Do I have additional insight that will help me succeed?
• Is there an honest need for the product/service in the area where I plan to locate?
Copyright ©2014 John Wiley & Sons, Inc. All rights reserved.
WHAT TYPE OF BAKERY IS YOURS?
Cupcake shops
Day parts
Donut shops
Specialty retailers
Bakery and X
Types of Bakeries
Copyright ©2014 John Wiley & Sons, Inc. All rights reserved.
WHAT TYPE OF BAKERY IS YOURS?
Types of Bakeries (cont’d)Type Day Parts Capitol Fashion/Fad
Bagel Shop .. Low/Med Fashion
Bagel Shop and Deli … Med Fashion
Bakery & Cafe …… High Fashion
Bakery & Craft Shop .. Med/High Fashion
Bakery & Deli ….. Med/High Fashion
Bakery & Florist … High Fashion
Bakery & Pizza …. High/Med Fad
Bakery & Popcorn … Med Fadish
Bakery & Restaurant ….. High Fashion
Bakery & Wine Bar …. High Fadish
Bread & Deli … Med/High Fashion
Copyright ©2014 John Wiley & Sons, Inc. All rights reserved.
WHAT TYPE OF BAKERY IS YOURS?
Types of Bakeries (cont’d)Type Day Parts Capitol Fashion/Fad
Bread Shop . Med Fashion
Cake & Café ….. High Fashion
Cake & Tea Shop .. Low Fad
Cake Shop . Med Fashion + Fad
Cakes & Party Place … Med Fadish
Coffee & Bakery … Med Fashion
Cookie & Deli … Med Fashion
Cookie Shop .. Low Fadish
Cupcake Shop .. Low Fad
Donut & Deli …. Med Fashion
Donut & Deli & Beverage …. Med/High Fashion
Copyright ©2014 John Wiley & Sons, Inc. All rights reserved.
WHAT TYPE OF BAKERY IS YOURS?
Types of Bakeries (cont’d)Type Day Parts Capitol Fashion/Fad
Donut Shop-New Age … Low Fad ++
Donut Shop-Traditional .. Low Fashion
Donuts & Restaurants …. High Fadish
Food Truck … Med Fad
Full Line + Beverage … Med/High Fad
Full Line + Ice Cream … High Fashionish
Hotel Bakery … Med Fashion
Internet Bakery … Low Fad
Limited Line Bakery ..
Pastry (Dessert) & Beverage … Low Fadish
Copyright ©2014 John Wiley & Sons, Inc. All rights reserved.
WHAT TYPE OF BAKERY IS YOURS?
Types of Bakeries (cont’d)Type Day Parts Capitol Fashion/Fad
Pie & Deli …. Med/High FashionPie Shop .. Low/Med FadishRetail & Wholesale … High FashionRetail Bakery-Full Line .. Med/High FashionSpecialty - Sweet & Savory …Specialty + Ice Cream … Med* FashionSpecialty Bakery + Chocolate … Med/High FashionTheme+ Beverage+ Deli …. High FadWedding Cake Shoppe . Med Fashion*Wholesale Donut . High Fashion* Wedding cakes will always be in fashion. However, the style changes every year along with the "hot" new color or trend of the season.
Copyright ©2014 John Wiley & Sons, Inc. All rights reserved.
FRANCHISES• Pro reasons• Con reasons
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FAILURE IS AN OPTION• Why do most bakeries fail?
– Lack of capital– Costly mistakes– Poor location– Poor production– Poor merchandising– Staff turnover– Lack of controls– Situations beyond your control
Copyright ©2014 John Wiley & Sons, Inc. All rights reserved.
TYPES OF BUSINESS ORGANIZATIONS
1. Sole proprietorships
2. Partnership
3. Limited liability Company (LLC)
4. Subchapter S
5. “C” corporation
Copyright ©2014 John Wiley & Sons, Inc. All rights reserved.
YOUR JOB AS A BAKERY OWNER
• Some truths about the job:– Self-employed people are by nature very busy people.– Leadership is a learned skill, not a gift at birth.
Practice, practice, practice.– One of your biggest issues will be working IN your
business, not ON your business (best practice = ON).– Good communication skills are learned and must be
practiced.– Good training is priceless, bad training is worthless!
Copyright ©2014 John Wiley & Sons, Inc. All rights reserved.
TIMELINE―INTRODUCTION• Things that can change your timeline:
– What type of store are you opening?– A bakery-plus will take every minute you can give it and
more.– Family emergencies create delays in timelines.– How are you going to support yourself for the year it takes to
open your store and when cannot work full time elsewhere?– Economic conditions can blow up timelines.– You change your mind, maybe this is not what you want to
do.– You cannot find the right location and the timeline has to wait