- 1 How to Start the Business Of Bakery Biscuits
- 2 What would be the need to start this business?
- 3 How will the finished material be sold?
- 4 Advertising
- 5 Government affair
- 6 What are the significant challenges in doing this business?
- 7 How to increase profits
- 8 How much will it cost to run this business every month?
- 9 How much can this earn from this business?
- 10 What would you advise if I want to succeed in this business?
How to Start the Business Of Bakery Biscuits
Last week I went to an industrial area in Noida with my friend Navin ji. I visited a biscuit factory there and first picked up the hot biscuit from the conveyor belt. So I will tell you How to Start the Business Of Bakery Biscuits.
I would tell you about starting a similar factory at Indiatechmoney.Com (ITM). However, when it came to knowing that it requires a great set-up and it is crores of games, then I changed my mind and told about the bakery biscuit business that started in some low cost (20 to 25 lakh rupees) decided.
What are the bakery biscuits?
From bakery biscuits, I mean those biscuits that usually meet in Bakery Shops, as you can see in this image:
What does the Bakery Biscuits business mean?
It means that you create your setup where such biscuits made and supply them to the bakery shops present in the city. Apart from this, you can also start an outlet and sell them directly to the customer.
One aspect of this is that you can sell your merchandise by branding these biscuits through many retail outlets.
What would be the need to start this business?
To start the business of Bakery Biscuits, you will need the following:
1. Space: Instead of 1000-2000 square feet
I saw the setup of making a bakery that was about 1500 sq ft and this place located in an industrial area, where you can get a place on lease or buying. I am not sure, but I think many people do this kind of work from their home or any such rented place.
However, if you have any place, you will need 1 to 2 thousand square feet of space.
You will need at least three machines for this business:
A) Commercial Bakery Oven:
You have to take this type of oven according to the baking capacity per hour.
For example, 20Kg / hour baking capacity starts getting oven from 3 to 4 lakhs. There are trays and shelves in these ovens, the more trays and the shelves in the machine; the more baking capacity is per hour.
Note These ovens used in making many bakery products other than biscuits, such as – rusk, bread, fan, and so forth. Moreover, in-fact to increase your profitability, you should further add these products to your menu.
B) Dropping Machine (Dye):
This machine is used to remove biscuits of different shapes and sizes.
This machine will cost you an average of 5-9 lakhs.
The higher the production capacity per hour of the machine, the higher it will be. You can buy a machine with 6 or 9 rows in the market, which can be between 150 to 250 kg per hour.
That is, within 1 hour, this dropping machine can give a biscuit shape to raw materials from one and a half to two and a half kilograms.
It is used to make biscuits or other bakery products, a lot of raw materials have to mix, and you need a mixer for it.
Generally, a mixer can be prepared from 25kg to 100kg at a time in this type of mixer. This machine’s capacities increased as per requirement.
This machine will get you from Rs 50,000 to Rs 1 lakh.
In addition to these three significant machines you may need another machine as per need:
D) Packaging Machine:
The price of this machine can be from 3 lakh to 30 lakh. You can buy a variety of packaging by purchasing the same expensive device or take several mechanisms according to the different packaging. In such unemployed people often have a machine whose.
Capacity: 100 gms to 500 gms per packet, and
Speed: 20 to 60 packages per minute.
Many people do not take this machine at the beginning of the business and work with manual packing, and after purchasing the work only after buying the requirement of the packing machine and keeping the need and budget in mind.
3. Human Resources
You will need at least 5-6 people to start this work. In which your head will be your chef or whom people call by artisans as well. The quality and taste of your biscuits depend only on the skills of the chef, so try to recruit a trusted chef as far as possible.
Talking about Noida, the chef’s salary can be anywhere from 20 to 35 thousand per month or more.
Apart from, this, you can keep the remaining staff as an employee or contractor. You have to give them Rs. 5 to 6 thousand rupees per month, or many times people also take rates per batch of mixer or hour. These staffs used in the work of using, mixing, packing, selling and marketing, and occasionally buying ingredients.
If you are not looking at the business yourself, then you have to hire a manager to manage everything, although this is not recommended at the beginning because no one can work as much as you can with your business. Moreover, by doing the work itself, the cost of having extra staff will also be spared.
That is to start the business of bakery biscuits; you will primarily need these three things:
Apart from this, you have to start your production of raw materials such as –
- Dry Fruits
Things will need to be done.
Also, you will need a lot of packaging material to pack the finished goods, such as-
- Tape dispenser
- Plastic for seal packing
- Candle for manual packing
- Heater and so forth.
You should also have 1.5 – 2 lacs rupees for these things (Raw materials and packaging material).
Also at any point in time, you should have some finished products stock ready. The value of this stock will be dependent on you, but in such factories, there is one-and-a-half lakh material is prepared in their stock.
If there is a power problem in your area, then you have to keep one of your generators for which you may have to spend an extra Rs 2 to 5 lakh.
How will the finished material be sold?
After the material is ready, selling it at the right rate and packaging is an integral part of this business. The more powerful your distribution is, the better your product will be sold, and the more you will be able to make profits.
If you are planning to do this kind of business for the first time, it would be better to understand your city market before you begin:
- What sold?
- How did it sell?
- How many grams of packets sold in which market?
If these ideas are already in place, then you will have much potential for doing business.
The idea is that you get experience in such a bakery before you start or work on your business at such a place. If both of them are not possible, then you should hire an intern for the bakery business.
However, your chef can also help you in this direction, but a full-time sales and marketing person is more appropriate.
Talking about Noida, the cost of hiring them is also around 10-12 thousand per month.
A second option is to arrange with some sales agents on the commission basis. These agents sell your goods and in turn charge a commission.
Usually, this commission is 1-2%. That is if your 1 lakh products are sold then the agent can charge you 1000-2000 rupees.
The people I spoke to spoke about selling products in three ways:
- First, you deliver your product in the wholesale market of the city and retailers pick up your item from there.
- Secondly, contact you directly at bakery shops and grocery stores and supply them your product.
- Moreover, third, you open your retail outlet. In this way profit margin is high, but at the same time, you have to take additional workload and expense to open and run the shop.
- Apart from this, people also make a sales-counter outside the factory and sell their products. It gives them a chance to deal with the Directly End-Customer and Customer Feedback helps in improving the product. At the same time, retailers from the counter can pick up the items and keep them in their shops.
Most bakeries use the combination of these methods to do business.
If you are not promoting your bakery brand, mass-advertising is not needed. However, about your bakery, you have to tell the bakery shops, wholesale dealers, and so forth. In your city, for which you have to talk about one to one person and promote your product.
You can take help of brochures and other literature for this. As the work progresses, you can also create your bakery website and take orders on it too.
If you want to do business with fear of no action, peace of mind then you have to deal with all these or some of these (government and factory location) agencies:
- Food must be licensed by the Safety and Standards Authority of India (FSSAI).
- Take permission from the District Industries Center.
- Electricity department, because you may have to industrial electricity connection
- Sales Tax Department for TIN / GST
- Fire Department
- Pollution Department
- Labor Office
- Income Tax
- Weights and measures department
- and so forth.
What are the significant challenges in doing this business?
Like most industries, it is not easy to find skilled human resources in this industry too. You have to be ready for the Skilled Staff and its replacement at all times.
- Since this is a business of food items, it is also a challenge to make production by making accurate estimates, if the low made, the demand will not be completed and the fear of getting worse made more.
- Apart from this, the cost of raw material used in bakery biscuits can be up and down as fast as you cannot change your rates accordingly.
- Competition: Since there are already a large number of companies in this area, it will not be so easy to make a place for yourself.
How to increase profits
Many people doing this kind of business expand their portfolio over time. For example: Starting a business with biscuits and slowly-
- Etc. also started making.
With this, your customers have more items to order, and you can increase your profits by using new machines using similar machines and staff. Apart from this, you can earn better earnings by controlling every small cost.
How much will it cost to run this business every month?
In each case, this number will be different, but I try to give an estimate, you can calculate a rating for yourself by totalling it.
If you believe that weekly one day is off and your factory runs for 26 days a month, according to 8 hours daily, you will have to bear these expenses every month to run this business:
- Rent – this can be anywhere from 5000 to 30000 or more
- Staff salary + overtime 40 to 50 thousand
- Raw material expenses as per production
- Electricity bill = 15000
- Diesel expenses in running ovens and genets: 3-5 ltr / hr for GENSET and 6-8 ltr / hr for the oven
- Packaging Material Cost: 1 Card 10, Plastic 200-250 per Kg, Tape: Rs. 1 per cardboard
- Machine Maintenance: At least initially about 10000 monthly
- You will have to put the machine to grind the sugar. Otherwise, you will have to pay Rs. 4 per kg charge.
- Miscellaneous: 50000 – Rs 10000
How much can this earn from this business?
This thing depends on many factories, so it is not possible to give a number. Just understand that there are also 40-50 thousand earners in the month, 4-5 lakh earners, and like every business, there is no shortage of those who lost in it, meaning their business goes to the deficit and eventually closes.
What would you advise if I want to succeed in this business?
Start small but increase the variety over time, which will increase your profits and will also be interested in doing the work.
Friends, hope that the information provided here will help you to become a successful entrepreneur. I wish all the very best for your successful venture.
A request: If you know certain things related to this business, please share it with our comment. Your knowledge can guide thousands of people right! Thank you!
I am grateful to Mr. Naveen for providing all the support and guidance in writing this post. Thanks a lot