There’s something magical about walking into a bakery and experiencing the aroma of fresh baked goods like croissants, pastries, and cinnamon rolls.
For a baker, baking the items fresh is a dream come true. You dream of having your own space to show your baking skills and creativity. If you are a baker looking to start your bakery, you can purchase an existing bakery for sale.
Buying an existing bakery has benefits: you get a space with all the equipment you need to bake, like an oven and stoves. However, it is important to inspect the quality of the bakery before making any final decisions.
Are you keen on opening your bakery shop and looking for an existing bakery?
Here are the details to note before.
Things You Should Consider When Buying a Bakery
- Assess the Competition in the Area
You will have a few options when buying a bakery for sale in Australia. However, the first step towards this is to know the neighbourhood of the existing bakery. You should drive around the area and see your competitors—other bakeries, coffee shops, eateries, and more. Make a note of every outlet and the customers it gets, especially bakeries within a 3-5 mile radius of your bakery. Also, check the prices of the bakery products sold in that area. If you are, planning to sell a cupcake for $5-6, knowing whether the customers will buy it or not is necessary.
- Ask the Right Questions
It’s essential to ask detailed questions to understand why the bakery is being sold. For instance, the first question to ask is “Why are they selling the bakery?” It will let you know if the reason is due to lack of staff or demand or any personal reason.
“What is the reputation of the bakery?” When buying an existing bakery, you will inherit its customer base, too. So, know what is working for them, like what bakery item is in demand, so you can continue selling those but with your personal touch.
Other important questions to ask include: What is the competition like? Is there a competitor with prices hard to beat? Asking all these questions before you make the purchase gives you an edge, ensuring you have a clear business plan to raise the bar of your bakery.
- Evaluate the Current Staff and Their Training
If the seller is not reopening their bakery at a different location, you may have an edge. You can retain the current staff. This way, you will not have to go and look for new employees and train them to operate a bakery. Well-trained, experienced staff can be a huge asset to your bakery’s success.
- Assess Your Financial Options
Buying a bakery is a significant investment, so it’s important to know your budget. Then, you can get a business loan after getting approved. This will give you details about the exact amount of money you have to work with. Also, you can go different ways for funding, like crowdfunding, private loan agents, and more.
- Review the Legal and Financial Status
When buying an existing bakery, due diligence is not optional. So, look at their financial records to see how they were performing. Also, check what license they have and what you need. For example, if you plan to serve alcohol, ensure the bakery has the appropriate liquor license. If you are retaining an employee, know what they were getting paid and also their background. Moreover, knowing about the current lease, rent, and more is mandatory.
Conclusion
Becoming an owner of the bakery has a lot of responsibilities. Also, the transition from home baker to a professional one does come with a lot of stress. Buying an existing bakery offers several advantages, such as having the right equipment in place. But before taking the plunge, considering your needs/goals and neighbourhood and checking the quality of the equipment is 100% mandatory. So, use the above information and make the right choice.