A bakery deals with producing pastries such as bread, mandazis, buns, doughnuts, and cakes, which is quite lucrative and easy if you enjoy it as a hobby.
The business requires one’s attention and willingness to work. The bakery business also requires a lot of equipment which will cost a lot, but this should not scare you as the profits are way better.
Here is a guide on how to start and run a business in Uganda.
How much do I need to start a bakery business in Uganda?
To start a bakery in Uganda requires a lot. The capital should rent a space, pay for licenses and business permits, pay wages, buy equipment and the necessary baking essentials.
This may need about 200 million shillings to run the business. One can acquire money from savings or loans.
Steps to start a bakery business in Uganda
1. Acquire the necessary business permit and license from the local authorities in your area. After registration, you will obtain a trading license from the URSB- Uganda Registration Services Burial. When registering your business, you will be required to;
a) Search for a unique name for your bakery business
b) Register the business and get a certificate of incorporation
c) Getting a taxpayer identification number
d) Acquiring a trading license
2. Rent a space or building where you will start the business and be able to run it. Look for an affordable space.
3. Acquire all the necessary licenses from the Ministry of Health and Fire Department. This ensures the safety of your employees and yours and the consumer’s safety, especially businesses that deal with food.
Tips to start and run a successful bakery in Uganda
It is easy to start and run a bakery business, especially if you have the capital. The problem comes in when one doesn’t know how to manage and make it successful. Here are a few tips to help you have a successful bakery;
- Have a business plan that you will follow to the latter. It will help you manage your finances and not overspend.
- Advertise your business using posters and even on social media platforms. Tell your friends to tell other friends so that your business can grow.
- Study the strengths and weaknesses of other bakery businesses and get to know how they work with them.
- Look for a location with the target market. Urban places, near town centers, and shopping malls are some of the best places to start almost any business.
- Offer delivery service at a small fee to help your customers get their goods on time.
- Look for a supplier who offers goods at a cheaper price so that you can get massive profits. Also, look for one who offers quality products.
Is a bakery profitable in Uganda?
The bakery business is quite lucrative as individuals buy pastries day in day out. In a day the business can bring profits as high as 3 million. The profits may vary depending on the location of the business and demand.
For instance, a majority of the household purchase bread for breakfast; thus one can never fail to sell bread daily.