Copyright ©2014 John Wiley & Sons, Inc. All rights reserved. E ARLY S TEPS AND K EY D ECISIONS Chapter One

Copyright ©2014 John Wiley & Sons, Inc. All rights reserved. C HAPTER O VERVIEW 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. C ONCEPT TO R EALITY 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. W HAT A RE Y OUR S PECIALTIES ? 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. W HAT T YPE OF B AKERY I S Y OURS ? Cupcake shops Day parts Donut shops Specialty retailers Bakery and X Types of Bakeries

Copyright ©2014 John Wiley & Sons, Inc. All rights reserved. W HAT T YPE OF B AKERY I S Y OURS ? Types of Bakeries (cont’d) TypeDay PartsCapitolFashion/Fad Bagel Shop..Low/MedFashion Bagel Shop and Deli…MedFashion Bakery & Cafe……HighFashion Bakery & Craft Shop..Med/HighFashion Bakery & Deli…..Med/HighFashion Bakery & Florist…HighFashion Bakery & Pizza….High/MedFad Bakery & Popcorn…MedFadish Bakery & Restaurant…..HighFashion Bakery & Wine Bar….HighFadish Bread & Deli…Med/HighFashion

Copyright ©2014 John Wiley & Sons, Inc. All rights reserved. W HAT T YPE OF B AKERY I S Y OURS ? Types of Bakeries (cont’d) TypeDay PartsCapitolFashion/Fad Bread Shop.MedFashion Cake & Café…..HighFashion Cake & Tea Shop..LowFad Cake Shop.MedFashion + Fad Cakes & Party Place…MedFadish Coffee & Bakery…MedFashion Cookie & Deli…MedFashion Cookie Shop..LowFadish Cupcake Shop..LowFad Donut & Deli….MedFashion Donut & Deli & Beverage….Med/HighFashion

Copyright ©2014 John Wiley & Sons, Inc. All rights reserved. W HAT T YPE OF B AKERY IS Y OURS ? Types of Bakeries (cont’d) TypeDay PartsCapitolFashion/Fad Donut Shop-New Age…LowFad ++ Donut Shop-Traditional..LowFashion Donuts & Restaurants….HighFadish Food Truck…MedFad Full Line + Beverage…Med/HighFad Full Line + Ice Cream…HighFashionish Hotel Bakery…MedFashion Internet Bakery…LowFad Limited Line Bakery.. Pastry (Dessert) & Beverage…LowFadish

Copyright ©2014 John Wiley & Sons, Inc. All rights reserved. W HAT T YPE OF B AKERY IS Y OURS ? Types of Bakeries (cont’d) TypeDay PartsCapitolFashion/Fad Pie & Deli….Med/HighFashion Pie Shop..Low/MedFadish Retail & Wholesale…HighFashion Retail Bakery-Full Line..Med/HighFashion Specialty - Sweet & Savory… Specialty + Ice Cream…Med*Fashion Specialty Bakery + Chocolate…Med/HighFashion Theme+ Beverage+ Deli….HighFad Wedding Cake Shoppe.MedFashion* Wholesale Donut.HighFashion * 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. F RANCHISES Pro reasons Con reasons

Copyright ©2014 John Wiley & Sons, Inc. All rights reserved. F AILURE I S AN O PTION 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. T YPES OF B USINESS O RGANIZATIONS 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. Y OUR J OB AS A B AKERY O WNER 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. T IMELINE ―I NTRODUCTION 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