9 factors to be considered while doing a Bakery Feasibility study

In order to assure the quality of foods served in India, the government has formed agencies like FSSAI (Food Safety and Standards Authority of India ).  5 months ban on Nestlé’s Maggi made around 450 CR lost for the company (Business Plus Dec 2015). Now a day’s ban on food products has become a daily news. So food manufacturers and distributors like Bakery owners have to consider some thinks before they enter into the business.

1.      The first and foremost thing to be considered while starting the bakery business is to identify whether there is a good customer base or not.

2.      Bakery business offers different types and modes like Production, wholesale, retail etc. The strategies have to be taken according to these modes.

3.      If it is production or wholesale the location should be available at cheaper price, but availability of electricity and water are very important as well as it has to be confirmed that the location has 24 hours power supply and easy transportation etc.

4.      If it is retail, the location should be somewhere in the city or highways were the end customers have easy access.

5.      Retailing alone is not a good option. Because it will reduce the profit margin and increase the bargaining
power of suppliers.  

6.      The products and services has to be delivered according to the customers. So identification of customer’s taste and preference is highly important. A Market study will be a solution for this.

7.      It has to be confirmed that all legal requirement are to be met for the smooth running of the business.

8.      Don’t compromise on Equipment’s Quality: since the  re-configuration/rearrangements of equipment are extremely costly, fixing of low quality equipment is a highly risky factor.   

9.      The competition is high in the industry, so innovative products/service and proper advertising are required, to attract and retain more customers.

Every food or food based business should have a personality of its own, differentiating it from competitors, which we call, its business model. Engaging professional consulting firms will help in developing the unique business models based on the feasibility studies. At AASC, we deliver such requirements of the client in various industries, including the hotels and hospitality sector.

To know more about how AASC can add value to your existing business or new upcoming project, please call +91 8606 556 318
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Author: Savad, PGDBM (Edxel-UK), works as Junior Business Analyst at Ameen Ahsan Strategy Consulting.
Email:  info@ameenahsan.com
Mobile: +91 8606 556 318