6 Things Every Baker Should do in their business if they want to be SUCCESSFUL!

Every ONE in FIVE bakeries fail. That’s 20% BEFORE even making it past the first year. If you’re lucky to make it to the three-year mark, that percentage increases to 60%. WHY is that? Well, there’s a couple reasons. 1) The barrier to entry for bakers is extremely low. There isn’t a ton of skill required to get started and the cost is relatively low. And 2) A lot of bakers focus solely on creating new products when instead they should be focusing on the BUSINESS side of operating a bakery. Things like pricing their products, customer retention, marketing, sales, and operations.

So HOW do you beat those odds and ensure that your bakery is going to be a success? Well, I believe there are 6 things every baker should do in their business on a quarterly basis if they want to continue to grow and increase their chances of building a sustainable and thriving business.

1. Checking in and UNDERSTANDING your numbers
   1. Have prices for your ingredients/ supplies/ overheard increased in the last 3-6 months? This is something that SO MANY bakers dismiss or put on hold because it’s time consuming and requires you to do math. But if you DON’T assess your numbers and costs every 3 months, you could be leaving so much on the table. And then you’re stuck wondering why you aren’t making any money.
   2. What products are performing the BEST? What products are performing the WORST? So often, I see bakery owners who only make products that THEY would enjoy or want to eat when really, you should be making products that your IDEAL CLIENT would want. So look at the data and see what products are performing the best and what are performing the worst and see how you can capitalize on the ones that are giving you the biggest return.
   3. Have sales steadily increased, dipped, or stayed the same? Sales are the lifeline of your business. If you aren’t paying attention to or prioritizing your sales, then your business won’t last. You have to stay on top of your sales data so you know whether your sales are actually dropping or if it’s just a slow season. Looking at the data will tell you A LOT about your business and it’s potential for longevity.
2. Customer Feedback/ Retention
   1. Are you actively collecting customer information? Do you have a process or system in place to capture customers information? If you don’t you’re missing out on a huge opportunity to continue to market and sell to your customers. I love a POS system like Square because it has email marketing built in and will continually send my customers coupons so they feel enticed to order from me again.
   2. Have you listened to customer feedback and made necessary changes? Your customers will tell you EXACTLY what they want from you. It’s your job as the business owner to receive that feedback and act accordingly. So often business owners get caught up in their feelings when it comes to feedback when really it has NOTHING to do with them but has everything to do with your customers and want they want and need from your business.
   3. What is your current customer retention rate? How can you improve it? Customer retention is defined as a company’s ability to keep customers over a period of time. Are customers just buying from you once? Or are they continually coming back time and time again? Knowing your customer retention rate will tell you A LOT about your customers, whether they love your products, if you’re reaching new audiences, or if you’re a little stagnant with attracting new customers.
   4. What strategies are you using to REACH new clients? Are you participating in community events, pop-ups, trades hows? Are you collaborating with other local small businesses? In order to GROW your customer base, you need to be actively showcasing your business and what you have to offer.
3. Product/Offers
   1. Identify which products sell the best and which don’t perform well. This is all done through analyzing data. Simply KEEP the products that are winning and remove the ones that aren’t performing.
   2. Are you capitalizing on holiday seasons or bakery trends? Holidays are a GREAT way to maximize sales and get new eyes on your business. Participating isn’t mandatory but it’s something to greatly consider.
   3. Review your seasonal offerings and their profitability. If you do participate in the Holiday season, take a look at your offers and see what’s winning with your audience and whether or not your products are actually HELPING you close more sales. The worst thing you can do is spend a TON of money on labor to participate in these holidays and not see the sales to show for it.
   4. Streamlining your offerings for efficiency and focus. YOU DON’T NEED TO HAVE 20 DIFFERENT FLAVORS AND CREATE EVERY SINGLE DESSERT TO BE SUCCESSFUL. Think Crumble Cookie or In-N-Out. Their menus are very streamlined and designed for efficiency. Start out small and increase your offerings from there.
4. Operations/ Processes & Systems
   1. Review the daily operations in the kitchen—where can processes be optimized? Are you tracking your recipes? Are you noting how many scoops of batter go into a 6” cake pan? Are you creating “closing” checklists so the closer knows what to do at the end of the night? These are all things you should be documenting so when you add new hires and help you limit room for error and things flow more seamlessly.
   2. Evaluate your team’s productivity—do you have the right roles and training in place? People work for other PEOPLE, not companies. It’s your job as the business owner to ensure that your team is set up for success and that they are following the standard that you’ve created.
   3. Audit your ingredient suppliers—are you getting the best quality at the best price? Sometimes switching companies for your wholesale supplies may save you TONS so you actually don’t have to raise your prices astronomically. This is why you always need to be paying attention to the current economy and your numbers.
   4. Managing inventory and reducing waste. Are you OVER ORDERING your inventory? Are you wasting product because sales are slow? These are all things we need to be paying attention to because it could be costing your business money.
5. Marketing & Sales
   1. Are you diversifying enough to reach new customers? (I.E. attending pop-ups, events, posting on social media, collaborations)
   2. Audit the success of any collaborations, markets, or pop-ups you’ve participated in. Are these events bringing in new clients? Not all events are created equal. It’s your job as the business owner to understand WHAT events you need to participate in for your business to be successful and what GOALS you have when participating in events. Some are for growing your email list and some are to actually make money. You need to know the difference. (Struggle with events? Grab my Event Success Bundle here to get all your questions answered about events!)
   3. Is your marketing reaching your TARGET audience? Think photos, captions, messaging, branding, and content. Is it appealing to your ideal audience?
6. Personal AUDIT
   1. Review how you’re spending your time—are you balancing work and personal life?
   2. Are you keeping up with industry trends, taking courses, or learning new skills?
   3. Are you too busy working IN the business to focus on building the BUSINESS? It may be time to shift your focus on HIRING help instead of trying to add more things to your plate.

Auditing your bakery business is not just about crunching numbers or pointing out problems—it's about gaining clarity and taking control of the future of your business. The insights you uncover through doing an audit will guide you to make smarter decisions, refine your processes, and ultimately grow your business in ways you may not have thought possible.

Don't sit on what you've learned. This is your opportunity to push forward and improve your operations, your products, and your overall customer experience. The most successful bakery owners aren't afraid to be honest with themselves, identify areas for growth, and take action.

So, commit to auditing your bakery regularly and keep leveling up. You started this business for a reason—now, it's time to make sure every part of it is working as hard as you are. Success doesn’t happen by accident friend. Go after it with purpose.

And if you want more guidance and help along the way, check out my 10-week business masterclass, Passion To Profit and grab my proven blueprint for increasing your sales, pricing your products, and attracting your dream clients.