How to Start a Bakery Business in the Philippines

Did you know bread is second to the most common food staple next to rice that is eaten every day in the Philippines? It makes sense, since bread is cheap to make and to sell! It is part of a Filipino’s breakfast and merienda: pan de sal, monay, ensaymada, and other local delicacies! They are easily prepared and can be found just right next door at any typical neighborhood.

A good bakery maintains the freshness of its ingredients as well as the consistent quality of the product at each batch. Taking care of a bakery will take care of you, as they say. However, just like any other business, you have to know the necessary knowledge in operating one.

Which is if you want to start a bakery business in the Philippines, you should continue reading on to get yourself in the feet of a true baker! This business is a profitable venture that is perfect for those experienced entrepreneurs at baking, but just about any kind of person, even a newbie, can try their hands at baking!

Continue reading on below to start your journey!

Know the investment capital

The Money Needed to Start a Bakery Business in the Philippines

A bakery business fetches a hefty price: about P150,000. This is only if you plan to establish it in a commercial unit. If you are able to provide a space with a lower rental fee or even plan to do it at the confines of your own home, then do as you please. Doing so will provide you a lower amount of investment capital needed.

Most of the capital will be invested into the basic operation of a baking business: from the materials to the equipment.

Invest in the right equipment!

Needed Equipment for a Bakery Biz

The equipment such as the baking oven does not need to be an expensive state of the art machine that produces a motherlode of baked goods! You can choose to buy second hand equipment from other bakeries that have surpassed their capacity and are willing to sell them at a lower price.

The benefit of a second hand equipment cannot be understated. Not only are you able to save money from purchasing a newer model, but also the chances are high that when the equipment is in need of repair, the parts are likely to be found as they are a common model as of the time of purchase.

Find a good location

A Bakery Business Needs Foot Traffic to Succeed!

Just like any other business, you want to rake in all the money! How do you do that? By placing it right at where there is a lot of people! Bakeries are often profitable when placed near a church or school. Furthermore, those drivers of jeepneys, taxis, and tricycles are also likely to survey your baked goods in search a good breakfast and merienda!

In essence, the place where the bakery is established should be one where there is a heavy amount of foot traffic. You always want a constant source of customers as to not waste a day’s worth of baked goods.

Know your market

Market Research Will Help You Jump Start Your Bakery Business

As an addendum to the previous point, not every kind of bread is eaten by everyone, especially in a different area. For example, the drivers from the previous paragraph would highly favor a freshly baked pan de sal in the morning. Baking whole wheat or French bread is expensive for the average Juan and are also preferred by the wealthy!

Knowing this, you should do research on the area of your business on whether or not they have a certain preference toward a specific kind of bread. Research will save you a lot of time and money from baking unnecessary batches of bread in the future.

Register your business!

Paperworks, Licenses and Permits

Businesses, big or small, are required to register for sole proprietorship at the Department of Trade and Industry (DTI), and at the Securities and Exchange Commission (SEC) for those who opt for partnerships and corporations.

Furthermore, you will also need a mayor’s permit and sanitary permit from your local municipality where your business is located.

The Bureau of Internal Revenue (BIR) will also require a Tax Identification Number (TIN) from your business, so you must register at the nearest BIR office available.

Lastly, since you are operating a business handling food, you need a license as a “food manufacturer”, a License to Operate (LTO) from the Bureau of Food and Drugs (BFAD).

Don’t be afraid!

All corporations once started small, whether they liked it or not. Rome was not built in a day, as the old saying goes. So, invest in a bakery business step by step in small amounts of capital first, looking for ways to save money and get the best bang for your buck! As you follow these tips, your success will eventually come into fruition!