Starting a Bakery in the Philippines

For Anna, baking was a hobby she enjoyed as a young teenager. Now that she has a family, she never thought that baking goodies for her children will turn out to be a profitable home business. Let’s find out more from her.
Q: What are the products that you sell?

A: My product line is basically different kind of cookies, brownies and sometimes cakes. For the cookies, I have oatmeal and choco chips, then the chocolate crinkles. I also bake brownies with a variety of toppings like marshmallows and nuts. Then for the cakes, I offer chocolate and cheese cakes. I also accommodate orders for cakes for special occasions like weddings and birthdays.

Q: How many people do you employ?

A: I started with one assistant but later hired two more to assist me in the kitchen and one driver since I just entered into agreements with three restaurants to supply them with my products.

Q: How profitable has this business been?

A: For someone who did not really plan to start this business, I can say that I am satisfied with the profit that I have earned from this. It really is profitable since the ingredients are basically the dame, with little variety, so you get to use most of what you buy. And there is no spoilage since you bake according to the orders you get.

In terms of pricing, I have to keep my prices lower than the known bakeshops. Otherwise, customers would rather buy from them. Besides, clients expect lower prices from me. Mark up would probably be from 35% to 50% depending on the product and quantity.

Q: How do you market your products to get orders?

A: It was difficult at the start, It’s funny to think that when I was just baking for my family and friends as a hobby, I did not feel tired baking all those goodies. But when I decided to continue this as a business, I felt the pressure to think of ways to get additional orders. And at the end of the day, I really feel exhausted. I guess it was a normal reaction since you start to think of earning profits.

Initially, I asked the help of family and friends and had them taste my products. Actually, they were my initial clients. Then, their friends also started to order from me. And when I had the opportunity, I joined small bazaars in subdivisions to introduce my products. I got several orders through it. I also got to advertise my business through the mothers of my eldest son’s classmates.

Actually, I must say that this business continues its existence through referrals and being able to maintain loyal clients who order from you for several occasions.

Q: What advice can you give to those who want to start this kind of business?

A: First and foremost, you have to love baking. It’s a must! Otherwise, you cannot start this kind of business. Then you have to be patient. When I started to think of this as a business, I was so eager to earn the profit right away but it took some time. So you really have to be patient. Also, you must be very realistic and set reasonable goals for yourself and your business. Lastly, you have to make sure the quality of your products remains consistent.

15 Comments

  1. Glaiza

    Hi,
    Im very inspired, i want to start a bakery business. can you help me.. and give me some tips.. b4 starting it. what can u advise..? How much do i need for a capital..

    Tnx,

  2. Mariam Abdullah

    Hi i really had inspired of everything you had shared. at the moment i was starting baking cakes and breads., hope you can give me more ideas how could i start a small home business here in our place. Will really appreciate if you could help me.

    Many Thanks and best regards,

    Mariam

  3. ritchie

    Hello! hi! i am ritchie,its been a long time that i am planing to have bakery business in virac catanduanes, can you help me.. and give me some tips.. b4 starting it. what can u advise..? How much do i need for a capital..

  4. sheila

    Hi! I love to bake and cook and hopefully one day I can open my own bakery. Would you be very kind to offer me some tips? I want to know what kind of ingredients i need to start? I know there are commercial ingredients that you add that it’s hard to buy from regular store. Like pandesal…are there any secret ingredients to make the shelf life longer or texture softer? Ppls..pls..help me! Thanks a lot!

  5. rainhard

    hello…. Im rain, a first year college student.. well I really want to have a business like dis… how much do i need to start… I really love to cook… specially desserts….
    can u give me some tips thank u!!!

  6. Rolando R. Dadizon Jr.

    Hi, I’m Roland. Would like to ask a help from you, because me and my friend would like to open up a bakery business. We are currently seeking an advice from any expert who could be of help. How much would be the ideal capital in starting a business like this? Your advice could be a great help with us, thanks in advance!

  7. faye

    hello….good day i reaally inspired about the topic pls advise me what is the istimated cost for first timer to have a bakery…thank you and gudluck

  8. michelle

    Hi!i am planning to start a baking business at home can you pls give me advise since this will be my first time to venture into business.what are the things needed to start off and how much capital would i be needing.thanks alot and GODBLESS!

  9. Albert John Garingo Mendoza

    Good Day,
    I’m Albert from Nueva ecija.and I am really inspired of what i have read… Bakery business is my dream and i love cooking especially desserts. I want to start my Bakery business but I don’t know how to start. The things to do, the things to know… Please help me through your advices and tips. Thank you.

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