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 Cake & Bakery business, need some info

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TShickups
post Mar 27 2008, 02:03 AM, updated 18y ago

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my wife wan to start a cake and bakery business
and asking me to fork out $$$$

this bakery business really can do??
how much modal do i need to invest

anybody here running bakery business
need some info
ultramanbabe
post Mar 27 2008, 02:19 AM

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QUOTE(hickups @ Mar 27 2008, 02:03 AM)
my wife wan to start a cake and bakery business
and asking me to fork out $$$$

this bakery business really can do??
how much modal do i need to invest

anybody here running bakery business
need some info
*
i work as account clerk in a well known bakery company before
u need more than 1 baking machine,second hand machine cost a bomb also
cost of a bread is around 90% of your selling price
u need a long time to get turnover
but after few more years,get back your machine costing and all equipment cost,your profit equal to 90% of the selling price
mean u need to be suffer for few years for no profit...after that u will be fine
good luck

This post has been edited by ultramanbabe: Mar 27 2008, 02:20 AM
kcmy
post Mar 27 2008, 02:38 AM

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QUOTE(ultramanbabe @ Mar 27 2008, 02:19 AM)
i work as account clerk in a well known bakery company before
u need more than 1 baking machine,second hand machine cost a bomb also
cost of a bread is around 90% of your selling price
u need a long time to get turnover
but after few more years,get back your machine costing and all equipment cost,your profit equal to 90% of the selling price
mean u need to be suffer for few years for no profit...after that u will be fine
good luck
*
Good to have people like u who respond to this post,may the TS have a clearer idea of wat to expect.
TShickups
post Mar 27 2008, 02:54 AM

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like those buns
are there companys that sells and provides service to normal cake shops
like we buy n sell

but cake do ourself like hire ppl to do
for a start need around 100k??
i did some research too like u said the equipment cost alot
if 100k kenot kenot tongue.gif tongue.gif

This post has been edited by hickups: Mar 27 2008, 02:56 AM
nimrod2
post Mar 27 2008, 02:56 AM

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lol your wife serious wan or not?

as the guy said, profit wont come in for the first few years *maybe / early part. she really into it?

i think she would have to do all the dirty work herself first.

not so easy as baking buns kua. hmm.gif

TShickups
post Mar 27 2008, 02:58 AM

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lol serious i think
she will be going for baking classes

blur blur me
nimrod2
post Mar 27 2008, 06:47 AM

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well as in any business, u have to hang in there until can make profit.


so i guess good luck to u if u do venture into it.


rclxms.gif all the best buddy.







p/s - when u finally start, let us know where your shop is. maybe we can come support tongue.gif


john123x
post Mar 27 2008, 07:54 AM

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QUOTE(nimrod2 @ Mar 27 2008, 06:47 AM)
well as in any business, u have to hang in there until can make profit.
so i guess good luck to u if u do venture into it.
rclxms.gif all the best buddy.
p/s - when u finally start, let us know where your shop is. maybe we can come support  tongue.gif
*
bakery is for the pro's. i suggest ur wife go get some experience in a bakery shop first.

DO U KNOW unsold fresh bread for few days will go towards the dustbin.
i often seen those bakeries dump lots of those unsold breads. its a big waste of money....
am_eniey
post Mar 27 2008, 09:20 AM

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TS, for me I think it might take up to 3 years to recover my RM150k for my laundry business, I just started a month ago
justin_nys
post Mar 27 2008, 10:03 AM

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it's a tough business to do nowdays.
if she is just for fun...i suggest her to bake as a hobby.
she needs to understand more on business risk.
somemore money is you keluar biggrin.gif
sh3rli
post Mar 27 2008, 10:15 AM

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Actually ur wife can consider doing the business online. Take online orders & deliver them. Target clients like spa/companies/events that order for functions etc. This way, u only bake when u have orders, so everything is fresh from the oven. Can promote to friends & families & ask them to refer more clients. This is lower risk & lower cost.
am_eniey
post Mar 27 2008, 10:16 AM

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for me as a beginner in business, the hardest part is MARKETING !!!!!
HughieRmX
post Mar 27 2008, 10:26 AM

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QUOTE(am_eniey @ Mar 27 2008, 10:16 AM)
for me as a beginner in business, the hardest part is MARKETING !!!!!
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Agreed ! nod.gif Building up the customer base foundation .. needs time and effort ..
am_eniey
post Mar 27 2008, 10:28 AM

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QUOTE(HughieRmX @ Mar 27 2008, 10:26 AM)
Agreed ! nod.gif Building up the customer base foundation .. needs time and effort ..
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Yes indeed, I walked for 10 km from house to house and from shop to shop, throughout downtown danau kota !!!! distributing my flyers

This post has been edited by am_eniey: Mar 27 2008, 10:28 AM
HughieRmX
post Mar 27 2008, 10:32 AM

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QUOTE(am_eniey @ Mar 27 2008, 10:28 AM)
Yes indeed, I walked for 10 km from house to house and from shop to shop, throughout downtown danau kota !!!! distributing my flyers
*
Basic & simple way of marketing ... Keep it up, Bro .. icon_rolleyes.gif
Same goes to my station also .. I will keep in touch with those owners of food stalls, shops and residents as well .. to secure my customer base .. wink.gif
sh3rli
post Mar 27 2008, 11:48 AM

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Yes, building ur network of customers take the right effort & time.

Basically, there are 2 ways of marketing

1. Direct marketing
2. Word-of-Mouth marketing

Direct marketing include putting up advertisements, flyers, commercials, signboards, yellow pages

Word-of-Mouth is when ur satisfied clients talk about u. They tell their family & friends to try ur service. This is the best marketing u can get because money can't buy referrals.

Many new biz owners fail to make use of Word-of-Mouth marketing, they only concentrate on direct marketing which mostly will go to waste because the target market is wrong.

I'm a member of an international referral organization, where members meet every week to educate each other on our biz & our target market. It's a very structured meeting with it's own training & system. If u'd like to attend as an observer, pls pm me as no advertisements allowed here right.
wheimeng
post Mar 27 2008, 11:48 AM

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QUOTE(am_eniey @ Mar 27 2008, 10:28 AM)
Yes indeed, I walked for 10 km from house to house and from shop to shop, throughout downtown danau kota !!!! distributing my flyers
*
i've remember reading an article that in NYC Manhattan, due to lotsa skyscrapers, hence the high density of population. they have a drop off point over each building for suits and other clothing. register an account with it and everyday, they drive to every building to unload the clothes in the morning.

and when the people finished their work by 5, viola! it's returned in sparkling clean and ironed condition back to the drop off point.

i'm not sure how possible it is in msia for this market, but definitely can be tweaked a little.

TShickups
post Mar 27 2008, 12:52 PM

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thank you very much guys..i have a clear picture now
i will need to some research 1st

1 more thing is that this bakery business need start modal around 100k??
hamster9
post Mar 27 2008, 02:52 PM

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QUOTE(hickups @ Mar 27 2008, 12:52 PM)
thank you very much guys..i have a clear picture now
i will need to some research 1st

1 more thing is that this bakery business need start modal around 100k??
*
Bakery owner reporting in.

RM100k may or may not be sufficient. But at this moment, your wife attendance to class, how is it going? has she learn how to bake already? Making cakes? Decorating cakes? I would stress it's best you taste it first and have friends taste it. It's really tough to satisfy everybody's tastebuds but you could have a majority. Secondly, baking in bulk and mass production is cost saving but altogether different from what you learn in simple baking classes. You need go have classes from recognized baking institute.

If there is no talent in cooking/ baking, it won't work out. Mayb the dough wont rise, the cake would be disasterous, etc. We had lots of trial and error and I couldn't recount how many flours and sugar I've wasted. And imagine flours and sugar price is so unstable.

A decent over cost around 30k while a dough mixer would be around 10k, remaining for renovation?
tkwfriend
post Mar 27 2008, 03:36 PM

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QUOTE(john123x @ Mar 27 2008, 07:54 AM)
bakery is for the pro's. i suggest ur wife go get some experience in a bakery shop first.

DO U KNOW unsold fresh bread for few days will go towards the dustbin.
i often seen those bakeries dump lots of those unsold breads. its a big waste of money....
*
well not a few days,
for king's cake shop bun will throw away every night, deli also do that. i personally work before with them.
no matter what u make remind yourself what u have learn u cannot sell them well outside because is too common.
machine itself cost a bomb roughyl 100k which i came across a person who is telling me.
for me i yet to go for class for baking but i learn it and try and error that will cost you some money as well.

for now should forget about shops first(rent) that will cost u a lot. when u want to rent usually the owner will ask for advance payment maybe 2 to 3 month rental first. depand on location as well.

i would suggest what target segment you want to choose from. who are ur client

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