bakery shop owners

Are you the go-to cake/cupcake person for every birthday? Do you make the best “only one more bite” desserts? If so, turning your talents, knowledge and will-to-succeed into a profitable business may be the next step on your path to success. A bakery is a very specific type of food establishment. This allows you to serve a unique market. The following 9 tips are a great place to start.

1- What kind of bakery would you like to open?

Some great things to consider when deciding which kind of bakery you wish to open is to assess your talents, budget and goals. Doing research on trends and local markets may also provide additional insights. Developing the new “it thing” may be daunting; however by creating a niche, you are helping to remove competitors. An example of this would be: There are 3 local cupcake shops that offer many varieties of different cupcakes. A niche market could be offering nut-free cupcakes, or gluten-free and vegan.

2- What kind of service options will you provide?


In this day and age, many services are available online. Why not run a bakery online? With a great website and pictures of your creations, this could be a place to start, take orders and have pick up or delivery options.

Counter Service

Finding a great space where you can create in a commercial kitchen and have a walk up counter may be your type of approach.

Sit down

A space where you can both sit down and dine is becoming a very big trend in the bakery industry. A space to order and also sit to enjoy the baked goods may help set you apart.

Mobile – Food Truck

A new modern and trendy option is a food truck. In some cities this can mean being fully parked close to other food truck vendors, or participating in summer markets/festivals. Another option would be having a mobile service. A great example of this: Just this past weekend, I visited a small northern town and was camping in a mobile park with family. Similar to an ice cream truck, a local bakery has a food truck packed with great homemade treats where you can buy from them. Like the ice cream truck, they have a signature song that is blared while driving. You literally see the people running for these treats. I spoke to this man, and he has a pre-set route going through many of the small communities and parks in the area, along with their bakery in their home town, where you can place orders, or simply walk in. This provides an added revenue source for them.

3- Food regulations

In Ontario food premises are subject to the Ontario Food Premises Regulation. When deciding which type of business you wish to open, familiarizing yourself with these regulations may influence your decision on how to proceed.

Health Protection and Promotion Act

Food Premises

Canadian Food Inspection Agency

4- Create a Business Plan!!!!

Creating a business plan helps to ensure business success. This allows you to look at the business from different angles. This can include financing, schedules, responsibilities, business growth plans, marketing, sales, costs and expenses… etc.

5- Register Your Business

One of the first steps, when operating a business is to establish the business legally. In Ontario, you can either register a small business or incorporate. There are pros and cons to each option. If you are not sure which option suits your needs, see our blog on Master Business Licence vs Incorporating for more information on the differences between the two types of registration.

Ontario Small Business Registration

Ontario Incorporation Registration

6- Shop For Space

The best advice for a space and your needs, is BE PICKY. Look at your different options, compare pricing, and take a look at the neighborhood and the competitors. Really research the area to ensure the right fit for you.

7- Price Your Baked Goods

When considering the cost of your product, some helpful points to consider are:

  • Cost of supplies
  • Time it takes to make
  • Clean up time
  • Packaging
  • Time spent promoting the business.

8- Market Your Product

Word of mouth is a great way to increase your clients; however with most peoples’ lives consumed in the online world a good way to market your business is by spreading the word on various online portals.

a. Social Media Channels – Facebook, Instagram, Youtube, Pinterest .. etc.

b. Write a blog

c. Join business networking groups

9- Understand and Appreciate the Importance of Your Customers!!!

In the famous word of Steve Jobs “You only make a first impression once”.

Customers are always the backbone of any business. They are the key to your success. Happy customers are generally repeat customers. Make a fan, at every opportunity. Ask them for feedback, talk with them, and make their experience a positive one worth talking about. Make it count!!!!

I hope you found this blog helpful and informative. We, at Ontario Business Central have been assisting thousands of individuals every year to set up and expand their businesses.

If you have any questions, please feel free to reach out to our staff for additional information and assistance.
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Ontario Business Central Inc. is not a law firm and cannot provide a legal opinion or advice. This information is to assist you in understanding the requirements of registration within the chosen jurisdiction. It is always recommended, when you have legal or accounting questions that you speak to a qualified professional.