Bakery business requirements

Written by jennifer uhl
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Bakery business requirements
Cupcakes are a speciality of many bakeries. (gourmet cupcakes in elegant bakery image by nextrecord from Fotolia.com)

A bakery makes and sells baked goods like breads, pastries, doughnuts, cupcakes, pies and cakes. Some bakeries specialise in one specific baked good, such as fresh breads and bagels or cakes and pies, while others offer a wide range of different baked goods. There are certain business requirements to consider if you want to own and operate a bakery properly and legally.

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License Requirements

In order to operate a commercial bakery, certain permits and licenses are required. Your bakery business will require a seller's permit, which provides a tax identification number, and a business license for the city that your company operates in. Because your business involves the sale of food, it will also require that you obtain a food vending license from the state, as well as approval from the health department. The health department will make periodic checks to make sure that your bakery is sanitary and free of hazards.

Insurance Requirements

You need to properly insure your bakery in order to make sure that you, your employees and your customers are protected. Your bakery should have standard liability insurance as well as product liability insurance, which is important should anyone ever become sick from the food or beverages that you serve. Additionally, your bakery should have fire insurance because of the risk when heavy machinery is involved. If you have employees, workers' compensation insurance is also necessary, as it will protect any worker who becomes injured on the job. Other insurance policies may be required if you run a franchise bakery or are renting your location.

Equipment Requirements

Before your bakery can function, it is vital that you acquire and prepare the right equipment. This includes ovens and mixers of various capacities which will be able to handle jobs of different types and sizes. You will also need display cases for the food products that you sell, and refrigerators to store products that are not being sold. All of this equipment must be in good working order in order for your bakery to function properly.

Start-up Requirements

The start-up requirements are simple but vital when it comes to running a business. You need to have the capital to buy or rent the building and the necessary equipment, as well as the materials to put your inventory together. You also need to have a well-thought-out business plan. While a business plan is not necessarily required, it is quite important in helping you form a successful business strategy.

Staffing Requirements

There are no staffing requirements set in stone, but you cannot reasonably run a bakery alone. You may want to consider hiring someone to handle some of the tasks associated with your business, like accounting, baking or advertising. You may also consider hiring someone to work the front counter if you want to handle all of the baking in the back, for example.

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