Buy Existing Bakery or Open your own Bakery Business

Bakery business has a lot of potentials to grow in the Indian market and never goes out of demand. Well, the problem is whether to start your own business or buy an existing one.
  • BY Akshay Arora

    Feature Writer, BusinessEx

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  • Aug 23,2017
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  • 13 Mins Read

It is essential that you make a quick decision, but in order to do so, you should be aware of the factors that might affect your decision. Initiating your own business is a difficult task but buying an established one surely ease the way to success. If you are thinking that finding an established ready to sell the business is a difficult task, well you are wrong because launch has simplified the process for you by providing established business opportunities and varied networking opportunities.

Industry Specifics

The Indian Bakery market is estimated to be worth Rs. 16,500 cr, growing at a CAGR OF 7.5 %. This industry is one of the largest sub sectors within the food industries comprising of product categories namely bread, biscuits, pastries, cakes, buns, and rusk. India is one of the largest producers of biscuits. The bakery foods articles are becoming very popular amongst Indians as the standard of living rises and lifestyle trend changes at a fast pace. Bread and biscuits form more than 82% of the Indian Bakery market, everything else cakes, puffs, pastries are just 18% of the total market. To know more about bakery Industry, click on the given link that leads to a descriptive report on Bakery Industry- India.

Factors Affecting in Starting your own Bakery Business

  • Select the kind of bakery you would like open (Online Bakery, Traditional Counter Service Bakery, Cafe like Bakeries, Specialty Bakers).
  • Prepare a business plan which basically focuses on investment, business location, people needed to be employed, market research (demand specific), etc.
  • Prepare a budget after planning the expenses needs to be incurred. Entrepreneurs typically make the mistake of under-budgeting costs and overestimating the revenues that can be generated in the initial months of starting a bakery. For Example: If you have thought Rs. 20,00,000 could be enough, but once you go through all the details, this can easily balloon to Rs 30,00,000.
  • Bakeries are normally self-funded by the owners, as it is difficult to get a loan for such high-risk food and beverage businesses. So, you should have the arrangement of money to bootstrap your business. The alternate option, you have the investors to pitch in your business.
  • It requires courage and presence of mind while taking the risk and facing challenges in the beginning till you achieve your target.
  • You must possess skills of an entrepreneur and knowledge that helps you in decision making to run your business.
  • Needs proper documentation for business (like license, permit etc.)
  • Unless you are buying an already running business, you may not be aware of hidden costs, unforeseen delays, and an endless list of things that can go wrong along the way.
  • Failed bakeries have bankrupted their owners before, so think very carefully before taking the leap in putting all your savings or assets at risk.

Factor Affecting in Buying an Established Bakery Business

  • Finding an appropriate seller that meets your demands is a difficult task if you are thinking to buy an established bakery business. But made it simpler for you to find the right seller.
  • Once you decided what type of bakery you want to buy then you just have to search on our platform and you will find the ample number of opportunities as per your requirements.
  • While buying an established business, you have the right to do due diligence and get to know how much cost requires to run a business also whether the business is profitable or not. Then it’s your decision whether to go for it or not.
  • You don’t have to take any stress regarding the documentation of business as the old owner has already taken care of it.
  • It surely takes more investment in buying an established business but it is a one-time investment that will give you fruitful returns in exchange.
  • You already have the right workforce to help you out in business operations and also your business is running so you don’t need to market yourself again.
  • It depends only on you either to take your business to success or failure. Only right decision making can take your business to success.


After knowing above mentioned facts only you know what best for you. If you decide to go either of the options still is the best platform where you can find the suitable existing business as per your requirements (like location, budget, financial position, etc). Even if you are thinking to start your own business this platform helps in finding the best suitable investor, incubator, mentor to help your business prosper. Our network will help your business grow for sure.

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