Want a business that has sky-high earning potential, lets you double your revenue every single year, and might even give you a glorious opportunity to hob-nob with billionaire celebrities? If so, starting your very own charter business might be just the thing for you. Dmitry Lyubimov, the owner of UNIQ LA, did just that, with results beyond anything he could ever have dreamed of. That's particularly impressive when you consider that when Dimitry first stepped foot on American soil, he had no job, spoke no English, and didn't have a dime to his name. Today, he's living his very best life catering to an exclusive boat-loving clientele while raking in truckloads of cash in his charter business. Starting from a single boat, he's expanded his fleet beyond boats to include limos, planes, helicopters, and even mansions. We were incredibly excited to interview Dmitry to find out how he started his wildly successful boat business empire. He's got a ton of actionable advice to share. You'll find out how he built his impressive client list, which of his services bring in the most revenue, how he was able to convince a city to construct a dock for him,  and so much more. Best of all, we'll go through every step you need to take to start your own highly lucrative charter business, including the best way to charter fishing trips. Let's dive in and get started!

Step 1: Write a Business Plan

Before you can start to make your vision of owning your own charter business a glorious reality, you'll need to write a business plan. This will help you outline your business's ultimate objectives, which will help you accelerate your success. Your business plan should include costs and financial projections. List all the expenses involved in running a charter boat business. These are things like gas, insurance, boat payment, and maintenance. You should also list the equipment you need, including the boat itself, fishing supplies, and anything else you need to make your business a resounding success. Also, list how much you'll need to charge per hour to offset those expenses so that you can turn a tidy profit.  You'll want to include the results of market research too. Ask other boat businesses in the area how much they're charging, how much business they're doing, and how much they make with fishing charters. Once you collect your research, quantify it and make it a part of your plan. Your business plan should also contain the following elements: 

• Sizes and types of boats you plan on leasing or buying 
• Destinations
• Preferred clientele
• Services offered (fishing equipment rental shop, parasailing, jet ski rentals, etc.) 
• Price of services 
• Where you’re going to be docking your boat
• If you need to build a dock 
• How you plan to market your business 

By taking this step, you'll define your vision with piercing clarity, allowing you to confidently move in the direction of your dreams. A well-defined business plan also helps you to secure financing for your charter business when and if you need it. Udemy has a terrific course on writing business plans that includes 50 free business plan templates. For a sample charter boat business plan, check this out.

Step 2: Mentorship

If you're new to the charter boat business, it's a good idea to set up a mentoring partnership with an established company.  With a business mentor by your side, you’ll get the valuable assistance and expert instruction you need to take you from a struggling neophyte to a consummate professional.  Studies have shown that 70% of small business owners who enlist the support of a mentor see their companies survive for at least five years. This is twice as long as those entrepreneurs who forgo mentoring services.  Fantastic mentors will have a lifetime of real-world knowledge and a dizzying array of skills to share with you. Look for one with five or more years of experience in the field.  Your mentor should have a keen awareness that he doesn’t know everything there is to know about his business niche. That’s why, ideally, your mentor will introduce you to his network of experts who will be eager to help you acquire a more comprehensive understanding of running a boat business.  An excellent mentor is also someone who runs his business according to impeccable ethical standards. You don’t want to be tutored by an individual who jettisons his moral standards in pursuit of the almighty buck.  Ask your mentor if he can develop an action plan based on concrete goals. For example, learning the essential skills all successful boat charter business owners must have.  It’s great if you can locate a mentor who has a proven history of pushing his own professional boundaries. This will hopefully inspire you with the confidence to push past your own limits.  Pick your guru’s brains and take advantage of all the knowledge he’s willing to share with you. By doing this, you'll have a leg up when it's time to start your own charter boat business. If you need more guidance on mentorship, read this excellent Forbes article on the subject.

Step 3: Licensing

Before you can head out for the open seas with your first passengers, you're going to have to get licenses for your charter boat business.  Your boat captains need to be licensed. You also need to obtain a license for the commercial use of your vessels. There are even licensing requirements for each water jurisdiction you plan on traveling to. These are some of the licensing requirements for charter boats and fishing guides in the state of Washington: 

• A current copy of the boat’s registration is required when a vessel is being designated on a license.
• An angler permit specifying the maximum number of persons who may fish from the charter boat per trip. Only a person who holds a salmon charter license may hold an angler permit.
• A non-salmon charter license is required if you accept a fee to take a person fishing for shellfish and fish other than salmon or albacore tuna. 
• A food fish guide license is required if you accept a fee to take a person fishing for salmon, sturgeon, or other food fish species in freshwater rivers and streams. 

They're probably similar to the requirements in your own state.

Step 4: Target Market

With a charter boat business, you get to unleash your entrepreneurial spirit while simultaneously indulging your passion for sailing the seven seas. Before you whip yourself up into a business-buying frenzy, you need to first decide what type of clientele you're going to target. Will it be multinational companies that want to conduct corporate meetings smack dab in the middle of the storm-tossed ocean? Or, would you rather cater to families who want to want to enjoy the exquisite thrill of their own private whale-watching trips? Maybe you'll want to target retirees who want a relaxing, yet fun, deep sea fishing experience. Here's Dmitry talking about how he chose his clientele: [su_quote]I started focusing only on luxurious boats, the most expensive ones, and targeting the 5% of people who could afford them.[/su_quote] You don't have to target as elite a clientele as Dimitry did. However, make sure you deliver a superlative experience for every single one of your charter business customers. Maybe most of your customers will want to go fishing. In that case, you'll want to make sure your boat has things like fishing rails, fish holding tanks, and other angling accouterments. Understand what your customer's needs are and do everything you can to satisfy them. If you do, you'll create lifelong fans who'll be eager to come back. This is what Dimitry has to say: [su_quote]My goal is for every client to become a returning client.[/su_quote] And if you want to watch the interview we filmed with Dimitry, check out part one and part two.  [su_youtube url="https://www.youtube.com/watch?v=6bb2yRUlCkc"] What you want to do is to create such an insatiable hunger in your customers that they cannot help but return for a second helping.

Step 5: Have a Unique Selling Proposition (USP)

After you decide who you're going to target in your charter boat business, make sure you have a Unique Selling Proposition (USP) that sets your business light-years above the mediocrity of the rest of the competition. A USP is the one benefit that only your company can provide. In an overcrowded market full of cutthroat competition, your USP will be a potent reminder of everything you can do for your customers.  There are a mind-bogglingly large number of yacht, cruise ship, and fishing boat charter businesses in the world. Every single one of these vessels claims to be the best. What will be the main selling point that makes you different from everyone else? Find out what that competitive advantage is, and make sure you hammer that point home in all your marketing messages.  Here are all the benefits to having a clearly differentiated USP:

• EMOTIONAL CONNECTION: An excellent USP imprints itself on the minds of your prospects so when they need the kind of service you provide, they’ll automatically think of you. 
• INCREASED REVENUE: If you communicate a strong USP to customers, you'll invariably boost your revenue.
• LOYAL CUSTOMERS: When your USP delivers a compelling value proposition, you won’t only get customers to buy something from you today, but you’ll win them over for life. 

How to Create a USP

To create a USP, the first thing you need to do is to determine your customer segments.  This involves figuring out the value your customers receive from your service.  When you do that, you figure out how to align your offerings with what the customer wants rather than what you want them to buy.  Here are a few ways to find out what customers want from you:

• Analyze data from social media marketing campaigns
• Talk directly to your customers
• Talk to your customer service team

Next, figure out how well you currently cater to your clients’ needs. This will help you to identify market gaps that you can fill by offering things none of your other competitors can.  For example, say you look at your social media data and discover that there’s a huge demand for sailing yacht charters that travel to barrier islands. You find out that there are few competitors in your area who offer this service.  In that case, you might want to make this service part of your USP. At the very least, it gives you a new marketing direction to go in.  Read this article if you need more information on creating a compelling USP. 

Step 6: Name Your Business

Make sure you dream up a creatively clever name for your charter boat business that crystallizes what your company is all about in a few short, eye-catching words. It should capture the imagination of all who speak it, see it, or even think it. To create an out-of-this-world business name, look at your Unique Selling Proposition (USP) and your business plan. Think about your target audience and any market research you might have undertaken.  Consider the message you want to convey to the world through your charter boat business name.  If you want a real attention-grabbing name, read this Forbes article. 

Brainstorming

Once you've collected all these raw impressions, it's time to sit down and have a good old-fashioned brainstorming session.  Unleash your creativity and go hog wild! Some of your brainstorming sessions can be just you. However, you should do a few with a friend or colleague. Write down all your ideas as fast you can without stopping. That way, you liberate your imagination and free your creative juices. 

Check for Availability

Before you settle on a charter boat company name, check to make sure it's available.  If someone is already using the name, you could be sued if you go ahead and use it anyway. Look through the U.S. Patent and Trademark Office's federal database to see if someone already registered it. You should also do a series of Google searches for your desired business name to ensure there isn't another charter boat company with that same name. You’re going to have to register your domain name. One easy way to do that is to type the domain name you want to use into GoDaddy’s search bar.  It’ll immediately tell you if someone else owns it.  Name.com is another place to check for domain availability. 

Register with State Authorities

Guard your charter boat business name by registering it with your state. If your entity is a limited liability company, a corporation, or a limited partnership, you'll need to register the business itself. By doing this, you'll automatically register the name of your company. If you decided to go with a sole proprietorship or general partnership, you don't need to register it with the state. Instead, do it through the county or city where you're located. If you're a sole proprietor, you can choose to file a "doing business as" (DBA) name. This way, you can use a name for your boat business other than your own legal one. You can register a DBA with your state or county clerk. For example, if your business is located in Nassau County, New York, you’d contact the county clerk’s office there.  If you need more information on registering your business name, Legal Zoom has a great article on the topic. This video also has some terrific information. 

Step 7: Choose a Business Structure

Before you can register your charter boat company with your state, you'll need to select a business structure.  Select the one that offers the optimal balance between benefits and legal protections. Choose wisely because your business structure isn't only a name. It affects your taxes, the paperwork you need to file, your personal liability, and even your ability to raise cash.  Here are two of the most common:  

Sole Proprietorship

A sole proprietorship is super easy to form and gives you absolute control over your charter boat business.  If you're doing business but don't register as any particular type of legal structure, congratulations! You're automatically considered to be a sole proprietorship. With a sole proprietorship, your liabilities and assets aren't separate from your personal liabilities and assets. This means you're personally liable for the debts and obligations of your charter business. It can be challenging to secure funding because banks are hesitant to lend to sole proprietorships.

Partnership

For two or more parties, partnerships are the simplest type of legal structure. There are two frequently used kinds of partnerships: limited partnerships and limited liability partnerships.  With limited partnerships, only one general partner enjoys unlimited liability. All the other partners have limited liability. For more on the various types of legal structures for your boat charter business, check out the sensational resources at the Small Business Administration (SBA).

Step 8: Secure Funding 

You probably don't have sufficient funds to bankroll your fledgling charter business. If that's the case, you'll need to secure financing to fund your venture. Getting a boat (or a fleet of them) is going to be one of the most expensive parts of your business.  Here are some ways to secure funding: 

• BOOTSTRAPPING: Bootstrapping refers to scraping together your own financial reserves. This could include accumulated savings, credit cards, and home equity lines. 

• FRIENDS AND FAMILY: One of the best sources of startup funding is friends and family. If you have a rich uncle who always wanted you to start your own business, now is the perfect time to see if he’ll loan you the money. He’ll probably give it to you with little-to-no interest. 

• CROWDFUNDING: You can try using the internet to raise small amounts of money from a large number of people. This is known as crowdfunding, and it’s the way many companies get funded these days. Try sites such as AngelList or Crowdfunder. 

• TAKE OUT A LOAN: You might qualify for a traditional bank loan. An encouraging sign for small business owners is that banks seem to have a renewed interest in helping out small businesses. In addition to your local bank, Bank of America and Wells Fargo are two banks you might want to try.  

Dmitry bought his first boat for $80,000. It was purchased for pleasure—not for profit. He asked himself: [su_quote]So I started thinking, why is my boat only eating my money and not making any money?[/su_quote] On that day, his charter boat business was born! However, you don’t have to actually own anything. Dmitry leases many of the boats in his fleet, and you can do the same.  If you'd prefer to buy your boats outright, check out Sailonline.com or Fraser Yachts. 

Ongoing Expenses

You'll also have ongoing expenses to cover. Try to get a line of credit so you can keep your business running until it turns a profit.  In addition to the initial purchase and all your everyday business expenses, you have to factor in routine maintenance, emergency maintenance, insurance, berthing fees, licensing, crew salaries, and many other things.  Here's Dmitry talking about the costs of a charter boat business: [su_quote]The boat was $80,000. There is a sales tax of 10% on top. There is maintenance. Unexpectedly, I spent over $30,000 just to repair everything that was breaking constantly. Besides that, all the licenses are another few thousand, including preparations for all the inspections. Website is another. You'll spend maybe $3,000 to $8,000 in general for a website. Advertising expenses are another maybe thousand dollars a month. You can rent an office, you can hire employees, but not in the beginning. In the beginning, you can do everything yourself. Stay small. Yes, and you have to know everything, every side of your job yourself. So when you do it the best, you can teach your employees to do it just like you, or even better.[/su_quote] To reiterate, here is Dmitiry’s breakdown of ongoing expenses for his charter boat business that first year: REPAIRS: $30,000 LICENSES: $2,000 WEBSITE: $3,500 ADVERTISING: $12,000

Step 9: Docking Your Fleet

You'll want to choose a dock where you can park your charter boat and pick up passengers.  To ensure you'll attract as many clients as possible, select a dock in an area where tourists tend to flock. Locales where the fishing is superb are excellent choices because you can then specialize in doing deep sea fishing trips. Some ports offer discounted rates if you lease long-term instead of renting month to month. Given you plan to be there long term, you might also want to start a pressure washing business to clean boats during the slow times. That way you can clean your own and others. Dmitry was lucky enough to have the local municipality build him a dock. Here's the way he tells it: [su_quote]I started searching online to learn how to get all the licenses. At that point, there were no commercial docks available for pickup. I started calling the county and asking them how to do this. And they said, "There is no way. You cannot do it." I called them for half a year asking them questions, and I said, I couldn't believe it, it's insane. I want to make a legal business and pay taxes, and you guys don't give me the opportunity to do so. And they said, okay, hold on. Maybe we're going to get money and build a commercial dock.[/su_quote]

Renting a Slip 

If you’re not as lucky as Dmitry and need to find a dock, DockSearch.com is a fantastic resource that’ll help you get one.  You can either purchase or rent a slip, which is docking space for your boat. Try to find one that’s not too expensive so you can save on your ongoing costs.  If you’re a member of a yacht club, you’ll enjoy special amenities and privileges. The downside is that membership tends to be astronomical.  Public docks are cheaper, but the security isn’t as good. Keep in mind that security for yourself, your customers, and your boat should be one of the most important considerations when starting a charter boat business.  Premises that aren’t locked, parking lots without good lighting, and unsafe neighborhoods should be avoided like the plague. Private marinas offer some of the best docking options. Best of all, most of them are pretty safe. 

Water Traffic

Make sure you assess the water traffic situation in the area where you hope to moor your vessel. That’s because high traffic areas can be significant collision risks.  Also, lots of water congestion means it’s going to take longer to set sail. This could screw up your departure times, making for unhappy customers. 

Step 10: Hire Your Crew

Hire a qualified and experienced crew and treat them well because a good team can mean the difference between your charter business being a resounding success or a miserable failure. You also need to assemble a great team to fulfill the other roles in your company. Here's what Dmitry had to say about that: [su_quote]One good thing about starting a business: the business owner doesn't need to know everything. The business owner needs to find the best person in each segment and then gather them all together. That's how you create a successful business.[/su_quote] You don't need to understand everything about every single aspect of your charter boat company if you can find qualified people to run each area.

Hiring Fishing Charter Employees 

If you’re running a fishing charter boat business, you won’t need too many employees.  You’ll probably only need a captain, a first mate, and an administrative assistant.  On a fishing boat, the captain steers the boat and offers advice on how to catch fish to guests. Find a captain with a pleasing personality so your guests have a great time.  He’ll also need extensive boating and fishing experience.  The job of a first mate is to assist the captain in piloting the boat and helping guests. An administrative assistant takes reservations and answers customers’ questions. For this, you’ll need a competent multitasker.  To find employees, do some networking at local fishing or boating charter clubs. You can also post your job openings on Indeed or Monster.com. 

Step 11: Insurance

Find out what insurance coverage you need by researching various coverage types, such as property damage and personal injury. Once you do that, set up a meeting with your insurance broker to discuss options. Make sure you're fully covered before accepting any charter boat business. You probably don’t want to get the cheapest boat insurance because this means you might not be fully covered for all possible contingencies. So, even though you saved a buck, you’re putting yourself at significant financial risk.  Before you make a final decision, look at what’s covered and what isn’t. Make sure you’re covered for the following things: 

• Damage to your vessel
• Injury to your guests or employees 
• Vandalism
• Accidents 
• Theft 
• Liability coverage

If you need charter boat insurance, I recommend United Marine Underwriters or Maritime Insurance International. 

Step 12: Market Your Business

According to a recent survey, 6 out of 10 small businesses don't have a website. This is a tragedy of Shakespearian proportions. Your website should be the central pillar of your entire marketing strategy. Without one, you're dead in the water.  One excellent way to boost your SEO ranking is by regularly publishing blog articles. Make sure the topics you cover are relevant to your target market and are exceedingly well written because Google rewards sites with high-caliber content by boosting their rankings.  Dmitry has a sleekly designed, consummately professional website that's a perfect reflection of the kinds of luxury boat charter services he offers his upscale clientele.  To make sure your website is as jaw-droppingly gorgeous as Dimitry's is, you should have an expert web designer create it for you. I recommend companies like Caveni Digital Solutions, Lounge Lizard, or Unified Infotech. These three companies are among the best web design firms in the entire country. This website lists the top 30 sites to learn marketing for free. 

Marketing Channels 

Often, the success of a small business comes down to its ability to effectively market its service. That's because it's only through savvy marketing that you can ever hope to enjoy a steady torrent of new customers you can then turn into raving fans.   Think of all the marketing channels out there and pick two or three that you think might be a natural fit for your charter boat business. You could take out Facebook ads, put up posters around your dock, or write blog posts. You can try advertising in trade and vacation publications or on television. If you're specializing in deep-sea fishing expeditions, you can advertise in magazines like Sport Fishing. You can also print full-color brochures that your customers can pass on to their friends. One of Dmitry's favorite marketing channels is Google: [su_quote]…Google has all the clients from all over the world, right? International clients as well. The second place will be Yelp, but Yelp has mostly people from the United States.[/su_quote] He also advertises on Facebook and Instagram. For more ideas on how to market your charter boat business, check out this article. 

Conclusion

If you faithfully adhere to the steps in this article, you can follow in the extremely profitable footsteps of Dimitry. All it takes is lots of perseverance, hard work, and a little money. Which type of charter boat business appeals to you the most—the luxury yacht kind or a fishing expedition company? Let me know in the comments!

Do you have a knack for taking pictures? Have friends and family asked you to photograph their special events? It may be time to consider how to start a photography business! If you're a budding photographer looking to make money from your passion, you're in luck. In this article, we'll show you how to start your own photography business. To show you the ropes, we sat down with Katelyn James Photography. Katelyn got started when she was invited to help a friend with wedding photography. She barely knew anything about photography, but today she’s making nearly $2 million per year. She’ll share the strategies that she used to start a photography business. [su_note note_color="#dbeafc"] Click any of the links below to jump to the section of your choosing.

• How Much Does It Cost to Start a Photography Business?
• How Much Do Photographers Make?
• How to Start a Photography Business
  • Step 1. Pick Your Photography Services
  • Step 2. Get Photography Equipment and Skills
  • Step 3. Choose Unique Photography Business Names
  • Step 4. Create a Photography Business Plan
  • Step 5. How to Start a Photography Business Legally
  • Step 6. Buy Insurance for Photography Business
  • Step 7. How to Market Photography Business
  • Step 8. Conduct Photography Sessions
  • Step 9. Manage the Business
• Ready To Start Your Own Photography Business? Give It a Try!

[/su_note] Follow Katelyn’s advice and our step-by-step guide to start your own photography business in no time.

How Much Does It Cost to Start a Photography Business?

Katelyn told us: [su_quote]I got started with a $700 camera and some other attachments. It was about $2,000 in total. You don’t need $10K to $100K to start a photography business.[/su_quote] Check out our interview with her below:

Startup Costs

We’ll break down equipment costs later. But here’s a list of startup costs that professional photographers should include in their photography business plans.

Ongoing Expenses

Ongoing costs for a photography business include:

• Business Insurance (General Liability, Professional Liability, Equipment)
• Transportation Costs (IRS mileage rate and time for driving)
• Maintenance and Repair of Equipment
• Upgrades (equipment and software)
• Rent (if necessary; equipment and/or studio)

My wife and I started a photography business in 2017, and during the first year, we spent approximately $16,000 in expenses, including models, hair stylists, equipment, and props.

How Much Do Photographers Make?

According to the U.S. Bureau of Labor Statistics (BLS), photographers make, on average, $36K annually, with the highest earners making around $79K. But those figures only calculate the wage and salary of workers.  It’s really easy to calculate how much a business should make in revenue. Most businesses aim for employee costs to be less than 30% of revenue. That means a business should make $120,000 to $264,000 per photographer, based on the BLS statistics. The truth is that there are a lot of numbers thrown around in the photography industry, and any research will net a wide range of reports. There are individuals claiming they make $50K per year as part-time wedding photographers. Other photographers have reported making six figures consistently within their niche. Instead of asking what everyone else is making, ask yourself, “What do I want to earn?” Remember, if you’re starting a photography business, you determine how much you earn! Give yourself an honest evaluation of your photography skills, value how much your time is worth, and go out and get some business.

Professional Photographers

Professional photographers know the actual cost of doing business. They follow the regulations to the best of their ability, and they continually invest in their business. If you’ve ever seen a person walking around with multiple cameras so they don’t have to change lenses, that’s when they’ve reached the high end of the photography market. These are the people you want to model a business after.

How to Start a Photography Business

Starting a photography business can be hard work, but if you stick with it, you can quickly be amongst the ranks of the most profitable professional photographers. Just follow these steps, and you’ll break into the photography industry.

1. Choose Your Photography Services
2. Get Photography Equipment
3. Choose Unique Photography Business Names
4. Create a Photography Business Plan
5. Get a Photography Business License
6. Purchase Photography Business Insurance
7. Market Your Photography Business
8. Conduct Photography Sessions
9. Manage the Business

Want to print off the instructions? We’ve created a starting a photography business checklist to make it easy for you. Download it below.

[maxbutton id="3" url="https://www.upflip.com/wp-content/uploads/2023/05/photography-business-checklist.pdf" text="Download the Checklist" ]

Now we'll walk you through the steps of starting a photography business one by one.

Step 1. Pick Your Photography Services

We asked Katelyn about generalized photography. [su_quote]There’s no way I would be at the level I am if I had tried to do a little bit of everything. You have to choose a specialty.[/su_quote] Photography businesses have a lot of choices when it comes to their market. Knowing your specialty is key to developing a solid business plan. It will save you substantial time at launch and during the development of your business. If you’re not sure which market you want to pursue, here’s a list of potential markets you can research:

• Landscape photographer (nature, wildlife, plant photography)
• Commercial photographer (advertising, product photography)
• Boudoir photographer
• Real estate photographer (commercial photography, residential photography, drone photography, 3D virtual walk-throughs)
• Product photographer (white backgrounds, lifestyle photos, jewelry, mechanical equipment, callouts)
• Wedding photographer
• Event photographer (graduations, trade shows, corporate meetings, birthday parties)
• Newborn photographer
• Sports photographer
• Editorial photographer
• Portrait photographer (family portraits, birthday parties, newborns, cake smash)
• School photographer (travels to schools and takes hundreds of headshots per day)
• Studio photographer (shoots in a studio space)
• Pet photographer
• Contributor to stock photo sites

The most commonly entered photography market is portrait photography, but there are a lot of different options. Depending on what you’ll be photographing, you’ll need different equipment. Keep reading for more information on how to start a photography business.

The Link Between Market and Equipment

Many photographers stick to narrow target markets—such as wedding photography for 50 to 100 people—because each type of photography requires additional equipment. We’ll cover equipment costs and provide resources in the next step, but take note of the necessary equipment while you research markets. For example, sports photographers use low f-stop, auto-focus telephoto lenses to capture the action on the field from a distance. When we spoke with Korbin and Whitney Korzan of Mile High Productions. Korbin pointed out that a wedding photographer might use a stabilizer vest to help hold their camera in place during a long workday. See more of our interview with Korbin and Whitney: [su_youtube url="https://www.youtube.com/watch?v=EUcv1HAAbns"]

Step 2. Get Photography Equipment and Skills

You’ll need a camera, lenses, memory cards, and extra accessories that correspond to the type of photography you want to do. Katelyn suggests: [su_quote]Invest in a low-cost camera and a prime lens to get started, then upgrade to a full-frame camera.[/su_quote]

Picking a Camera

A camera is the most important piece of equipment you’ll buy for a photography business. It’s important to get high-quality equipment. However, that doesn’t mean you need to break the bank. Spending hours on the web trying to research the best camera on the market is a waste of time if you can’t even afford the equipment. So, we’ll save you some time. Let’s look at the types of cameras available.

What Types of Cameras Are There?

Canon, Nikon, and Sony are the main manufacturers of camera bodies. There are forums where photographers endlessly debate which one is better, but most professional photographers use one of those brands. Each camera maker creates three main styles of cameras:

1. DSLR Full Frame: These are high-end cameras. They have the best features and can run anywhere from $1,700 to $6,700. Honestly, you don’t need anything more than a Nikon D750 or the Canon EOS 5D Mark IV when you start a photography company.
2. DSLR Crop Sensor: These are recreational cameras where the sensor only captures a portion of what you see through the viewfinder. You can learn to adapt your photographic vision to the part of the view that is cut off, but it takes practice. The Nikon D3400 and the Canon OS Rebel T7 EF-S are good entry points for those starting new photography businesses.
3. Mirrorless Cameras: Cameras without the mirror are lighter, have smaller lenses, and have a lot of new technology integrated into them. They run from $1,300 to $6,500 for full-frame models. The Sony A7 IV is considered the top of the line, while Canon EOS R6 and Nikon Z6 II are also well-liked. 

You can find all of them on Amazon. I love our Nikon D750, but I strongly recommend going to a photography local business and testing each of them out to see which you prefer. Fortunately, there are a lot of resources out there to help you make the right choice. I find B&H Foto and Electronics to be one of the best sources for photography knowledge. Once you choose a camera, remember that you don’t have to purchase new equipment. You can try to find great used equipment on the web or from a local Canon or Nikon retailer to keep your startup costs in check.  Make sure to ask about the warranty, though. The number of photos taken impacts the usable life of the camera— shutters are what normally go bad first.

Other Photography Equipment

After you choose your camera, assess the costs of other equipment as part of your market research. Here’s a potential shopping list:

• Tripod and Other Stabilizing Equipment: Expect to spend $100+ for a good one. Cheap ones will blow over with wind and break your camera.
• Lighting Equipment (lights, reflectors): Make sure they communicate with your camera properly. If you’ll be shooting indoors or outside you might want a flash.
• Hard Case and Bags: Helps protect your equipment. Make sure to get a casing that can be locked if you’ll be traveling with it.
• Extra Batteries: It’s wise to have at least one extra that is fully charged ($15 to $50).
• Drone: DJI is the way to go for drones. They range in price from a few hundred dollars to $30,000+. Don’t forget to get your FAA permit and local permits when needed. You may need special insurance if flying it over a crowd. 
• Computer and Photo Editing Software: Adobe Creative Cloud is the standard. It starts at $20 per month. Use your .edu email if you have one to save some money.

You don’t need everything on the list to start your business. Not everyone uses a drone as Korbin does, and you may not need lighting equipment for your market. Here are some more sites to help you find everything you need:

• Samys
• Adorama
• Ritz Camera
• Hunt’s

Editing

When you’re learning how to start a photography business, don’t be surprised that a lot of your time will be consumed by editing photos. Editing can consume 30 to 50 percent of the time working in a photography business. To tweak your shots, you’ll need photo editing software, including Adobe Photoshop or Lightroom Customers expect clean, crisp photos with digitally corrected lighting and colors. A professional photographer turns a picture you could get out of your phone into a masterpiece that exceeds all customer expectations. Many top-tier photographers hire professional photo editors for image editing, but many small business owners will not allow others to edit their photos because they want to maintain creative control.

Resources for Editing

You should master editing, but if you really want to run your own business, I suggest creating workflows with well-defined processes for an editing team. There are a lot of online resources available for image editing that can get you up to speed on the latest techniques and software. We suggest Scott Kelby paperback books when someone asks us how to learn photography.  Here are more good materials:

• Adobe Photoshop Tutorials
• PHLEARN
• Creative Live (also great for Videography)
• ProEdu

Videography

Let’s be clear: not all photographers are videographers, and not all videographers are photographers. But if you can do both, you can book substantially higher priced photography jobs. Many photographers will partner with a videographer or hire one. Korbin booked his first real estate photography gig because he owns a drone. Whitney told us about their photography services: [su_quote]We have bigger packages and smaller packages. But obviously, our photo (and) video is worth more than just a photo or video package.[/su_quote] There’s an enormous market for both services, so here are some resources to help you educate yourself about videography:

• Udemy
• Skillshare
• LinkedIn Learning

If all of this seems like a lot to take in, don’t stress. Next, we’ll discuss the minimum you can do to get started—and learn the rest later.

How to Start a Photography Business with No Experience

If you expect someone to pay for your photography services, it needs to be worth their investment. And like any art form, amazing photos take a lot of practice. Katelyn suggested: [su_quote]Start shooting with your friends so you can develop a portfolio. People don’t have to know they are free shoots.[/su_quote] From the time you pick up a camera to the time you retire, a professional photographer should always be looking to improve. If you’re just starting, you’ll probably spend a ton of time with your camera gear and editing software. You’ll encounter plenty of resources out there for photographers. In fact, there are so many that it may seem a little scary at first. The beauty of photography is that you don’t need a degree to start your business. You can learn from free training online. Katelyn told us:  [su_quote]I just started sharing everything I ever learned. Old school photographers started making fun of me, telling me I’m doing it wrong. Now I’m sure they’d say differently.[/su_quote] To learn from Katelyn, check out her free access training.

Other Photography and Business Education Resources

There are wonderful programs to choose from if you want to go that route. For most new photographers, you can find courses online to help hone your skills. Here’s a short list so you can research and find the best course to fit your needs:

• New York Film Academy
• Harvard Extension School (free)
• Skillshare
• Nikon School
• Professional Photographers of America (offers affordable insurance too!). Learn more.

The next step on the photography business roadmap is choosing a professional photography business name.

Step 3. Choose Unique Photography Business Names

Choosing photography business name ideas is a chance to show your style. Names for photography business services might be as simple as your name plus “photography.” You might also want to include the style of photography or the values in the business name. Check out our article about choosing business names or find your own name with our photography business name generator. Try it now!

Step 4. Create a Photography Business Plan

Every business should have a business plan. Even if it’s only a one-page business plan, it will help keep you on track. You’ll want to include: Katelyn told us: [su_quote]You don’t have to have an office. You don’t have to have a marketing budget. [Over time,] we also grew into an educational company where we teach people how to succeed in the business.[/su_quote] Read our blog about writing a business plan for more info.

Step 5. How to Start a Photography Business Legally

To start a photography company, you’ll need to:

1. Create a business structure: LLC and sole proprietorships with DBA are the most common.
2. Get business licenses: Check with your local SBA office.
3. Get your Employer Identification Number (EIN): We cover how to get an LLC and your EIN in our register a business blog.
4. Get any necessary insurance: If insurance is only needed for certain jobs, you can get insurance through Hiscox.

As a business entity, you can open a business bank account under your business name to separate your business and personal finances. A business bank account is required to maintain limited liability status. Find out more about business banking.

Do You Need a Business License for Photography?

Your local laws may require a business license for photography.  If you’re doing photography as a side job, you’ll probably be okay. Many businesses and government properties require a license, permit, and insurance that protects the facility, too. This includes public parks. Check with your local county clerk or tax assessor-collector to see what’s required in your city. Contact information for these officials varies by city and county, but here’s directory information for Texas, California, and New York.

How to Start a Photography Business from Home

Make sure it is legal within your city, county, and/or homeowners association. From there, you can do the editing and maybe even some of the photography from home. The best part is the IRS allows tax benefits for your personal office.

Step 6. Buy Insurance for Photography Business 

Many photography business owners forget that a small business needs insurance to protect their business and personal assets from lawsuit-happy clients. A photography career actually has some major risks involved, including:

• Equipment failure
• Personal injury
• Forest fires during “Gender Reveal Parties” 

A business owner should have at least general liability insurance and probably professional liability insurance. I suggest checking with Simply Business to get your photography business insurance. Get Coverage Today! 

Step 7. How to Market Photography Business

Marketing materials are a huge part of starting a photography business. We asked Katelyn about marketing a photography business. She suggested: [su_quote]Follow an educator on all of their channels and figure out whether you like them. It will help inspire you.[/su_quote]

Get a Website

Your photography website is a combination of marketing and business for photographers. If someone wants to see your work, then they should be able to type in a domain name that’s easy to remember and that takes them to a clean and dynamic site. Obtain a domain name from a domain seller like:

• GoDaddy
• Google
• Domain.com
• Bluehost

If you’re not good at web design or have no experience, that’s okay. Check out our blog about how to build a website.  Katelyn wants you to know: [su_quote]A website needs to have no more than 50 pictures. You also need to have a great About Us page. Saying that you love coffee and your camera is not enough.[/su_quote] No matter what, make sure your site is always up-to-date and running smoothly. You never know when a potential client may look at your portfolio. Also, be sure to establish a solid privacy policy and terms of use for potential clients.

Get on Social Media Platforms

Social media accounts are a phenomenal way for photographers to reach your target market. Set up business profiles on sites like Facebook, Instagram, and Behance (Adobe’s site for creatives), and constantly post your work. If you want to make connections with people on social media, interact with them on your posts. It makes your business more personal and creates opportunities to gain more clients. Katelyn told us: [su_quote]Trust is the number one selling point. If you share and they get to know you, prospective clients will reach out.[/su_quote] You can use your profiles to guide potential customers to your website.

Photography Business Cards

A photography business card is a great place to show off your skills. Put some of your favorite photos on the back and your contact information on the front. A lot of photographers love Moo business cards because they let you have a different back on each business card. If you’re looking for other photographer business cards, check out our blog on cheap business cards.

Other Marketing Methods

Don’t be afraid to reach out! If you’re just starting your photography business, try doing what Korbin did and contact local real estate agents. You never know who might be looking for someone to take fantastic shots of their properties. If you want to work in wedding photography, you can attend bridal conventions. Not everyone has a big budget for their photographs, and when you attend trade shows you can meet potential clients. Plus, it’s a great networking opportunity. Another tactic is to run Google Ad Campaigns. On their platform, you can create digital ads that are highly targeted to specific audiences and locations. The ads cost less than traditional advertising platforms. It’s an easy and affordable method to reach a lot of potential customers with little effort. If you’re not sure about Google Ads, you can hire a specialist through freelancing sites like Upwork. Just be sure they have an AdWords Certification from Google. Don’t forget to set up a Google Business Profile and add lots of pictures so local clients can find you more easily.

Pricing

A great way to see how much you should charge is to look at what others in your market are charging for their services and compare their quality level to your own. Ask questions like: Katelyn told us how to start a photography business and get the most value for your time: [su_quote]Every three weddings, raise your price by $300 and see how much the market can sustain.[/su_quote] Make sure to create all your marketing materials and save them in ways that are easy to edit. Now that you know how to market a photography business, it’s time to discuss the photo shoots.

Step 8. Conduct Photography Sessions

Photography businesses spend a lot of time working on sessions, and much of it isn’t apparent to clients. Let’s say you shoot family portraits. The time spent on the client shoot includes the time to: As you can see, a successful business requires far more than what your customers will see. Katelyn explained that a new photography business owner will normally play a much different role than when the photography business grows: [su_quote]When I first started, I was doing everything. Now, I’m primarily in charge of vision and content creation.[/su_quote]

Step 9. Manage the Business

Many single-person photography businesses fail to succeed because the photographer forgets that they are a small business owner first. You can have the most amazing photography portfolio, but there are a few essential steps that a business photographer cannot ignore if they want to make more money.

1. Take time for business planning.
2. Keep your business expenses low. There’s no need for studio space if you’re shooting wedding photography, business photography, or real estate. 
3. Maintain an office space at home. 
4. Get separate bank accounts to keep your business and personal finances separate.
5. Get some accounting software to help you manage your business. Photography can be a great living, but many photography businesses don’t even realize when they are losing money.

At this point, you know how to start a photography business.

Ready To Start Your Own Photography Business? Give It a Try!

Photography is an awesome field! Many professional photographers find starting a new business to be a win-win scenario. Either you make a great living, you get to have some experiences you would never have imagined, or both. Either way, you’ll learn a lot about yourself and about the world, and be better off for it. Dare to capture life's beautiful moments. As the Korzans told us: [su_quote]Commit. That’s the biggest, biggest thing. It’s hard when you’re first starting. You’re scared. You don’t want to reach out to anyone because you’re scared that they’re gonna say, ‘Well, let me see your portfolio.’ So it’s just being upfront and honest with people. Committing to the fact that you’re going to make things happen. You’re going to make it work. And just practicing.[/su_quote] What’s your favorite type of photography?

Have you ever wanted to make people happy with yummy cakes or tasty breads? Ever thought about entering one of the fastest-growing industries for small businesses? It may be time to start a bakery!

Today we're revealing insider information on how to start your own baking business.

We connected with Puran Deep, a successful bakery owner who runs the wildly popular Wild Wheat Bakery in Kent, Washington. In 2019, his bakery exceeded over $1 million in revenue!

Now, we're passing his expert advice on to you. We'll show you step-by-step how to plan, start, and grow a thriving bakery business in this $30 billion per year industry.

[su_note note_color="#dbeafc"] In addition, we're giving answers to popular questions like these:

• How Do I Start My Own Bakery?
  • Step 1. Consider Bakery Business Ideas
  • Step 2. Perform Market Research
  • Step 3. Understand Your Local Business Laws
  • Step 4. Consider Locations
  • Step 5. Get Menu Ideas
  • Step 6. Understand the Finances
  • Step 7. Create a Bakery Business Plan
  • Step 8. Create a Business Entity
  • Step 9. Secure Funding
  • Step 10. Develop a Marketing Plan
  • Step 11. Purchase Equipment
  • Step 12. Hire Staff
  • Step 13. Build Your Business
• What Are the Biggest Mistakes When Opening a Bakery?
• Conclusion

[/su_note]

Click any of the links above to jump ahead to that section.

How Do I Start My Own Bakery?

You'll find everything you need to know in this step-by-step guide for starting a bakery!

If you are new to the bakery world—or haven't ever stepped foot in a kitchen—it's a good idea to visit some bakery businesses to glean information and practical experience. Small business owners are often happy to share what they know.

We interviewed Puran Deep (P.D.) from Wild Wheat Bakery in Kent, Washington. P.D. started four different businesses in the past and now runs Wild Wheat, a cafe-bakery often featured in The Seattle Times and the winner of many “Best of Kent” awards.

See the YouTube video about how to start a bakery below.

[su_youtube url="https://www.youtube.com/watch?v=j2_xwBgyFFU"]

P.D. grew tired of the rat race and wanted to start his own business. That's when the opportunity to purchase Wild Wheat, an established bakery-cafe with an excellent reputation, landed on his desk.

P.D. bought an existing bakery, but he still has tons of advice to offer to someone starting from scratch. We'll share his expert tips and other practical advice as we proceed through the steps for starting a bakery as a new business.

[su_quote]You have to treat everybody that walks in this door with great customer service. Make sure they are getting what they need. Make sure you're giving them quality food. Over 50% of our customers on a daily basis are our regular customers.[/su_quote]

Another alternative is to buy an existing bakery.

Step 1. Consider Bakery Business Ideas

The first step of starting a bakery is considering the different types of bakery ideas you're interested in. Retail bakeries, home bakeries, and wholesale bakeries are viable options.

Recently, the baked goods industry has grown significantly, so it’s a good time to get started. Several options are available for starting your own bakery business.

Bakery Cafes

• Average Annual Revenue: $1.52 million per year
• Average Profit Margins: 5.4%
• Startup Cost: $100 (at home) to $3M (Panera Franchise)
• Time To Revenue: 1-6 months
• Annual Market Growth Rate: 1.1%
• Best for: Cooks, chefs, people who love cooking

A bakery cafe offers tables where customers can sit down and eat in a dining area. It combines the benefit of freshly baked goods with the enjoyment of a small restaurant business.

Like a small restaurant, this type of business also provides coffee, other beverages, and an extended menu. Wild Wheat Bakery offers an extended breakfast menu featuring omelets and other egg dishes.

As an added component, P.D. roasts his own coffee beans on location. Customers can enjoy a cup in the cafe or take home the beans to brew themselves.

A perfect example of a Bakery Cafe is the world-famous Ferrara Bakery in New York City.

Wholesale Bakeries

This type of bakery business does not keep a storefront and acts as a supplier to restaurants, grocery stores, etc.

Wholesale bakeries benefit from predictable and reliable sales to retail businesses. Wholesale bakeries sell to customers who buy in bulk. And there's no worry about the upkeep of a retail bakery.

Finding grocers, local coffee shops, and restaurants to carry your product is the key challenge of a wholesale bakery. This critical aspect may be difficult for a new business trying to break into the baking market.

However, it is very important for any bakery. We asked P.D. why wholesale is so important for a bakery, and here's what he told us:

[su_quote]You have your staff; you have your employees that are producing a certain number of breads or whatever they're making. It's not a huge cost for them to produce a little bit more with the same employees and the same equipment, but you can increase your sales significantly.[/su_quote]

Marsee Baking is a wholesale bakery that operates in Seattle and Portland and would be a great model to build your business on.

Counter-Service Bakery

Typically, small counter-service bakeries expect customers to pick up their orders and go. One benefit is that it limits the time and energy spent on customer service.

Part of the larger category of retail bakeries, it's possible to combine a counter-service bakery with a wholesale bakery. The bakery would sell baked goods to grocers or restaurants and provide pick-up and/or delivery service to retail clients.

Clark Street Bakery in Los Angeles started in an apartment and now has four counter-service locations.

Food Truck Bakeries

One of the most affordable ways to open a bakery is through food trucks. Food truck bakeries have become a viable option for running your own business. For more information on how to get started, check out our blog post on How to Start a Food Truck Business.

The Teal House Coffee and Bakery food truck is one of the most well-known around Austin, Texas!

Home Bakeries

Cottage industry businesses can be a simple way to dip into opening a bakery without a large investment. For those wondering how to start a home bakery, simply alter the steps in this business guide to meet your home baking needs.

[su_quote]Baking can be done with a few simple ingredients, so it's about simplicity and nostalgia – people are reminded of their childhood.” – Paul Hollywood – Celebrity Chef and Judge on The Great British Bake Off [/su_quote]

Specialty Bakery Cakes

Many business owners succeed with specialty bakeries like a cake business. One of my favorites is Freed’s Bakery in Vegas. They create custom wedding cakes and other treats for special events. Check out their fidget spinner cake below.

[su_youtube url="https://www.youtube.com/watch?v=0pW-5YkkOv8"]

How to Start a Bakery Business From Home

Many people start a bakery from home simply by selling their baked goods to friends and family. You might not need a formal business plan, but check into local regulations on how to run a bakery from home without a commercial kitchen.

Step 2. Perform Market Research

You might wonder whether starting a bakery business in your area is viable.

It's important to know what's happening in the baking business in order to meet customer needs. This market research report provides tons of information and industry data about Bakery Cafes in the US.

The good news? Bakeries are on the upswing!

Even so, it's important to research your local business environment for things like:

• Demographics
• Local Market Trends
• Competition
• Budget
• Target Audience

All of this information will be vital later when you build your business plan.

According to P.D., knowing what customers need is critical to running a business. He says:

[su_quote]…you have to have the right mindset, you have to take care of the customers and know their needs.[/su_quote]

So, before you even get started in business, find out what potential customers want by doing your research ahead of time.

When considering which baked good offerings to provide, know that certain segments of the market are larger than others, as seen below:

[su_note note_color="#dbeafc"]

• Bread: 32%
• Rolls: 19%
• Cakes: 15%
• Retail bakery products: 10%
• Soft cakes: 8%
• Pies: 2%[/su_note]

  Step 3. Understand Your Local Business Laws

  Because it can take time for agencies to process paperwork, it's important to understand business licensing early in the process. The bakery industry deals with food, so the Health Department in your area should be your first contact.

  Licensing and registration varies between states and even within local jurisdictions. One excellent resource for learning the basics is the Small Business Administration. The required permits depend on the type of bakery and location.

  Run through this list for a cost estimate of your licenses and permits:

  • Business License – Around $50. Based on location/type/size. Renewable.
  • Food Service License: $100-1000. Based on size, # of employees. Renewable.
  • Employer ID Number (EIN) – Free. Issued by IRS for tax purposes. Takes time.
  • Certificate of Occupancy – Around $100. Proof of final inspection. Locally issued.
  • Fire Department Permit – $50-200. Inspection of ovens, etc. Locally issued.
  • Food Handler's Permit – $100-500 for each employee. Renewable.
  • Sign Permit – $20-50+. Allows a permanent sign. Locally issued.
  • Music License – $250-500 to play music.

  Here's a link to the U.S. FDA list of regulations and codes for food service establishments by state. It clarifies the differences in regulations between states.

  For county and city information, perform a quick internet search or inquire at your local health department.

  Can I Get A Baking License For At-Home Bakery?

  

  Sometimes. It depends on your local laws. A home bakery business may also be called a home baking business or cottage food business. There may be special requirements for how to start a bakery from home including:

  • Refrigeration 
  • Ingredient 
  • Packaging
  • Maximum Revenue
  • Distribution

  Cast Iron is a home-based food business management software platform that has a list of laws that make a good starting point for those wondering how to start a cake business from home. It’s a good place to start for others starting a baking business too.

  How Long Does It Take to Start a Bakery?

  Starting a bakery can take from a few weeks to a few months, depending on the scale of the operation.

  A bakery at home can be fairly quick when your customers are people you know. A retail or wholesale bakery may take a few months or even a year to start, depending on your location, funding, and other circumstances.

  Step 4. Consider Locations

  A retail bakery does best in a high-traffic area. Ideally, your space will be easily accessible to lots of people, have enough space for seating, and a reasonable rent for the square footage.

  For example, the world-famous Ferrara Bakery is located in New York City in the heart of Little Italy on the corner of Grand and Mulberry Street. 

  It may not be the most spacious cafe, but the foot traffic more than makes up for the lack of seating. Try to find this balance with your location!

  [su_quote]In any business, location is key. If someone is planning to open up a new location, pay a lot of attention to the foot traffic where you are opening it. Location can be something that can make or break your business. It's very important.[/su_quote]

  Consider these factors when choosing your business location:

  

  • Accessibility: Is it easy for customers to get to your location? 
  • Competition: Are there other bakeries nearby?
  • Foot traffic: How many potential customers pass by on foot? Remember P.D.'s advice.
  • Parking: For customers arriving in their own vehicles, is there enough space to park?
  • Growth potential: Is there a possibility to expand in the future?
  • Demographics (target audience): Who lives or works in the area? Does this align with your ideal customer?
  • Cost: Research all the details of the price to buy or rent the space.
  • Bakery layout: There's much more to consider than just how customers will move through the bakery. Keep reading below.

  Bakery Layout

  You should consider the new bakery floor plan before you open a bakery in a commercial space. You’ll want to consider the following features:

  • Counter space
  • Bakery equipment
  • Prep space
  • Dining space
  • Office space

  All this goes into a bakery floor plan. You should probably consult an architect and a commercial real estate agent before choosing a small commercial space where you’ll open bakery operations.

  Step 5. Get Menu Ideas

  

  Before determining the cost of opening your new business, you must have a rough idea of your menu. Mastering recipes takes time and practice. The good news is that you can enjoy tasting the test recipes!

  Business success hinges on offering the highest quality products that people want. It's important to create an eye-catching menu.

  Offer special items that make you stand out from the crowd. Give customers a reason to do business with you!

  If you need some inspiration, here are some recipe sites to review:

  • Love and Lemons
  • Food Network
  • Taste of Home

  Look at the bakery offerings that offer the highest profit potential.

  Step 6. Understand the Finances

  While spending time in the kitchen is loads of fun, you also need to crunch the numbers to open a successful bakery. You’ll want to consider the following:

  • Cost of opening a bakery
  • Monthly operating costs
  • Cost of goods sold for the products.

  How Much Does It Cost to Start a Bakery?

  

  The startup capital for starting a bakery varies based on the type of bakery you choose to start. Those who want to know how to start a baking business should expect the following startup costs depending on what type of business entity they start.

  • Home-based: $100+
  • Food Trucks: $100+. Learn more about getting the startup capital for food trucks.
  • Franchises: You’ll need to demonstrate up to $7.5 million net worth for starting a Panera franchise.

  While the low end is just for a small bakery to buy the materials, those who are really interested in owning a bakery should expect $2-5K just for the business licensing. Depending on the scale, you can get by with the minimum, or go all out.

  Learn How to Price Your Baked Goods

  To run a profitable business, you must figure out how much it costs to make each one of your baked goods. This allows you to price items for the highest profit margin.

  It's easy to lose money on a product if you don't know exactly how much it costs to make it. This includes ingredients, labor, packaging, and even cooking time to account for the electricity (or gas) running the oven. Most restaurant managers aim for the cost of serving to be approximately 1/3rd of revenue.

  Before you open, call local vendors to price their supplies, and then determine the cost of production. Consider this pricing guide based on information from the Houston Chronicle.

  PRICING GUIDE FOR BAKED GOODS

  Click through the 10 steps below to calculate your costs.

   

  [su_tab title="1" disabled="no" anchor="" url="" target="blank" class=""]Calculate the number of batches you can get from a bulk ingredient. For instance, if the recipe calls for 8 ounces of milk and you buy your milk in gallons, here is the formula: 128 oz / 8 oz = 16 batches[/su_tab]
  [su_tabs][su_tab title="2" disabled="no" anchor="" url="" target="blank" class=""]Divide the cost of each ingredient by the number of batches. If a gallon of milk costs $4, this is the formula: $4 / 16 batches = $0.25 per batch for milk Complete this step for each ingredient in a recipe. [/su_tab] [su_tab title="3" disabled="no" anchor="" url="" target="blank" class=""] Add together the cost of all ingredients per batch.  This will calculate the total cost of ingredients for an entire recipe. [/su_tab] [su_tab title="4" disabled="no" anchor="" url="" target="blank" class=""] Divide the cost per batch by servings per recipe.  So, if the total cost per recipe is $5 and makes 10 servings: $5 batch / 10 servings = $0.50 per serving [/su_tab] [su_tab title="5" disabled="no" anchor="" url="" target="blank" class=""] Add in other items (cupcake liners, packaging, etc.).  For example, cupcake liners cost $5 per 100, so each cupcake liner costs $0.05. $0.50 per serving + $0.05 liner = $0.55 per serving [/su_tab] [su_tab title="6" disabled="no" anchor="" url="" target="blank" class=""] Add in the cost of equipment usage.  Here, divide the cost of equipment by the number of days of its expected usage and then divide that number by the average number of servings you will produce per day. For instance, for an oven that costs $10,000 and lasts for ten years (1825 days) and bakes 500 servings per day, this would be the formula: $10,000 / 1825 days = $5.48 $5.48 / 500 servings = $0.01 Repeat for each piece of equipment. [/su_tab] [su_tab title="7" disabled="no" anchor="" url="" target="blank" class=""] Figure operating costs. Do the same as above to include all operating costs. This includes utilities, storage space, rent, advertising, printer ink, labor, etc.  For instance, if your monthly electricity bill is $500, then divide that by 30 days and the estimated 500 servings per day: $500 / 30 days / 500 servings = $0.03 Again, do this with all of your operating costs and add all of that in. [/su_tab] [su_tab title="8" disabled="no" anchor="" url="" target="blank" class=""] Divide your per-serving cost by the number of expected items sold.  Bakeries must be realistic about the fact that they will not sell out of everything in their shops, and perishable items must be counted into the cost of doing business. If you think that you can sell 75% of your items, and your per-serving cost is $0.50, then your formula is this: $0.60 / 0.75 = $0.80 You must increase your per-item cost to $0.80 to account for unsold baked goods. [/su_tab] [su_tab title="9" disabled="no" anchor="" url="" target="blank" class=""] Add in your profit margin.  Here, add 100 to your desired profit margin and then divide that number by 100. For instance, if you need a 200% profit margin: 200% + 100 = 300 / 100 = 3.0 Then multiply the cost by your profit margin to determine the per-serving price like this: $0.80 cost x 3.0 profit margin = $2.40 per serving price [/su_tab] [su_tab title="10" disabled="no" anchor="" url="" target="blank" class=""] Compare prices. If this per-serving cost is similar to what other local bakeries are charging, then you're on the right track. If it's under, then you should up your price. If your cost is higher, reconsider if this is a product you can sell at a profit. [/su_tab][/su_tabs]

  Track Your Finances

  Along with determining costs, you need to decide on a way to keep track of your business finances. One option is to hire a trusted bookkeeper or accountant to free up your time to run the business.

  There are also several options available for small business accounting software including Quickbooks, Freshbooks, Wave, Xero, and more.

  Step 7. Create a Bakery Business Plan

  A detailed business plan is helpful when starting a bakery.

  Consider these components when writing your bakery’s business plan:

  • Executive Summary: contains the most important points from each of the following categories
  • Company Overview: a description of your business
  • Market Analysis: includes pertinent information from your market research
  • Business Offering: a list of the products you will sell to your customers
  • Management: includes business partnerships, number of employees, who will run the various areas
  • Marketing Plan: information on how you plan to reach customers, advertise, etc.
  • Financial Projections: predictions for the financial success of your business

  The Small Business Administration offers this business plan writing guide. We’re also partial to our business plans created by Mike Andes or Brandon Boushy to help you create a bakery business plan.

  Is a Bakery a Profitable Business?

  Baking can be very profitable if you work hard and provide the best products for customers. Depending on various factors,  bakery owner salaries range from around $17K to $71K per year.

  These statistics include tiny home bakeries, so there's potential for earning much more!

  Step 8. Create a Business Entity

  

  With a business plan in place, it's time to create a legal company. Register your business at the federal and state levels and establish a legal structure. It's possible to register online.

  Choosing a business structure (Limited Liability Corporation, Sole Proprietorship, Corporation, S Corporation, or Partnership) can be complicated if you're not familiar with the process.

  The IRS has extensive resources on business structures, but it’s best to work with an accountant and/or business attorney to maximize your legal and tax benefits.

  Typically, a bakery will be set up as a Limited Liability Corporation (LLC) to avoid exposing the owner's personal assets to legal action (like a slip and fall in the bakery).

  Step 9. Secure Funding

  If you have personal savings available to start your business, that's fantastic! But you may need to borrow a portion of your startup costs until it becomes a viable business.

  If you only have around $50,000, but want a larger cushion at $100,000, you may get a business loan. However, you must provide viable financial projections that show your ability to pay back the loan.

  As P.D. said,

  [su_quote]If you make a good business plan and the lenders buy into that, you can get funding.[/su_quote]

  Consider these different options to secure funding for your business, as suggested by the Small Business Association:

  Venture Capital Funding

  

  If you can find an angel investor who believes in you and your plan, this type of funding can be effective.

  However, it means shared ownership, which many entrepreneurs are not super excited about. But it also lowers risk and prevents borrowing money.

  Consider this video we've created about Venture Funding.

  Crowdfunding

  Another way to avoid a loan is to raise the money from many people who invest a small amount of money.

  Typically, investors get something in return, such as advertising credit, or gifts and other perks. Several online platforms host crowdfunding campaigns.

  Business Loan

  

  The amount and interest rate on business loans varies significantly. You can try for a loan through a local bank, as well as through the government-assisted loan programs with the SBA.

  Securing this type of funding requires a business plan, financial projections (usually for 5 years), and expense sheets.

  Friends and Family

  If your friends or family are interested in your project, you may find you can borrow the funds from someone you know.

  How to Start a Bakery Business With No Money

  

  If you want to start your bakery on a shoestring budget, that's great! As mentioned above, you can save a ton of money by starting in your own home and by selling to friends and family.

  Another option, if you have good credit, is to leverage a zero-interest rate period on a credit card. It's risky but possible to use the zero-interest period to start your business and then pay the card off before the interest kicks in.

  Note: Have a solid business plan in place if you're thinking about this option.

  Step 10. Develop a Marketing Plan

  When you invest in starting a bakery, make sure customers can find you!

  P.D.'s strategy for getting new customers is based on Social Media Marketing, like these recommendations from Neil Patel. He outsources a marketing company to run his Instagram, Facebook, and other profiles.

  They focus on letting customers know about new product releases and any interesting news.

  [su_quote]These days everyone is on their phone![/su_quote]

  You can get your name out there and draw in customers in a variety of ways, including these options:

  Traditional Advertising

  This includes print ads, billboards, radio, flyers, and going door-to-door.

  Social Media

  

  Initially free to use, you can also purchase additional social media ad options. It's possible to outsource your social media marketing by hiring a professional marketer. Find a professional to help with this through Fiverr or Upwork.

  Press Releases

  Besides social media, don't forget about print and online newspapers. Depending on your location, your local paper may print your bakery opening as business news when you present it to them as a press release.

  Coupons

  

  Consider placing coupon ads in a local paper. To offer bounce-back coupons (used on a return visit), use an online tool like Canva to design them, then have them printed locally. Many bakeries or coffee shops have loyalty cards designed and printed this way.

  Is It Hard to Open a Bakery?

  Opening a bakery is hard work, but it is worth it! According to P.D.:

  [su_quote]There's nothing you can't learn if you have the right mindset and the right attitude. You need to be open-minded. Keep the right mindset. Stay the course, do what you have to do, keep at it. Eventually, things smooth out and you come out on top.[/su_quote]

  Step 11. Purchase Equipment

  You've found your space and secured funding. Now you must prepare your kitchen and dining area to bake and serve the best products.

  What Equipment Do I Need to Start a Bakery?

  

  Reliable equipment is essential for any commercial kitchen. Purchase your equipment online or locally. Your bakery equipment list for your commercial kitchen should include:

  • Ovens – Commercial-grade ovens can be extremely pricey but are a vital piece of equipment for your business. P.D. says his ovens cost around $100K each brand new. Many bakeries choose to lease larger equipment to save on startup costs.
  • Mixers – Large capacity stand mixers, with special dough hooks for kneading bread.
  • Refrigeration – For storing your perishable ingredients such as milk and cream.
  • Tables/Workspace – Depending on the type of baking, tables may be necessary for decorating cakes or for packaging products.
  • Storage – A place to store your ingredients prior to use, and for storage of packaging, or other items. Carts with shelves may be useful for cooling baked goods fresh out of the oven.
  • Dining Area – Tables, chairs, and a counter for the retail area are all important aspects of your bakery.
  • POS System – One critical point for any business is how to let your customers pay. A Point-of-Sale system is vital to your business. When you can choose one that links well with your accounting software (mentioned above), it's even better!

  Step 12. Hire Staff

  For a retail or wholesale bakery business, qualified employees working in the kitchen are the backbone of the business. Bakeries open very early, and it is essential to have reliable employees willing to bake bread at four in the morning.

  If you're running a cafe-bakery, counter help and possibly servers are a necessity. They act as the front line for providing great customer service that ensures return business.

  Here are some sites where you can post jobs and find qualified candidates:

  • Indeed
  • Monster
  • ZipRecruiter

  Finding top talent in food service is no simple task, so go beyond traditional job hiring sites like Indeed. Instead, reach out to local culinary schools and food programs (community colleges) to secure reliable talent with interest in the industry.

  According to P.D., in taking care of your staff, you don't want to skimp:

  [su_quote]I tell them to make sure that your people are taken care of, and the rest will be fine. You only have so many hours in a day. You'll burn out if you're not careful. It's not worth stressing yourself out.[/su_quote]

  Step 13. Build Your Business

  

  Once you've started baking, pursue continuous growth for your business. That means setting goals and making plans to find and keep customers.

  P.D. says you should ask yourself a simple question:

  [su_quote]I want to grow 10% every year. What do I have to do?[/su_quote]

  Here are some other questions to ponder on growth:

  • What should I do differently or better to gain new customers and keep existing ones?
  • Is there room to add new products?
  • Would a customer loyalty program help our bottom line?
  • What does our marketing data show?

  Brainstorm and research ways to please your customers and then execute the best ideas.

  According to P.D., wholesale products are one of the best ways to grow a bakery business. They provide large profit margins without a large investment.

  It may mean running the ovens a bit longer or arranging for more deliveries, but it's a steady way to increase revenue without a lot more work.

  P.D. says that with samples in hand, cold call restaurants with whom you want to do business and let them try your products. If your product is of outstanding quality, it should sell itself. But you must get people to try it.

  [su_quote]I would throw a bunch of samples in my car and just go to a bunch of different restaurants and drop off samples and ask them. Look at their menu, whether they're serving hamburgers or if they're a sub shop. Give them hamburger buns or baguettes for their sandwiches. And when they like the product, they call and they're ready to order.[/su_quote]

  What Are the Biggest Mistakes When Opening a Bakery?

  P.D. stated that one of the biggest mistakes in opening a bakery is not finding and keeping the best employees. With 36 full and part-time staff, P.D. offers this insight:

  [su_quote]Employees are what you need for your business. You can't be everywhere, so you have to put trust in your people and take care of them, then they'll take care of your business.[/su_quote]

  Conclusion

  If you can already smell the heavenly croissants baking in your oven, then it might be time to get started with these steps on how to start a bakery! Follow our guide to overcome many of the hurdles beginning entrepreneurs and bakers face. 

  With planning and perseverance, you'll be serving customers and raking in dough (get it?) like P.D.

  If you were thinking about starting a bakery, would you start a home bakery, wholesale, or food truck bakery? Let us know in the comments below!