3 Common Mistakes Bakery Owners Make

May 19, 2023

Let’s be REAL, friend: In a COMPETITIVE industry like ours, even small mistakes can have EXPENSIVE consequences. A bad business decision or a major mistake can cause customers to leave you, impact your bakery’s reputation, and result in a HUGE financial setbacks. 

That’s why avoiding mistakes isn’t just about saving face in the industry, it’s a matter of your business THRIVING or failing. In this blog post, I’m gonna the 3 BIGGEST mistakes I see bakery owners making all the damn time, so you can avoid them before it’s too late. So buckle up and pay attention to make sure you don’t repeat ANY of these mistakes in your business!

Mistake #1: Expanding before you’re READY

I get it. You’re PUMPED to grow your business and get to that next level. OR, maybe you think you’re current circumstance is holding you back and you think GROWING and SCALING your business is the answer. But if you expand too early, based on a “feeling”, WITHOUT looking at your numbers and preparing yourself to deal with the challenges that come with expansion, you’re setting yourself up for FAILURE. 

Here’s what could go WRONG if you GROW too soon:

  • Investing in new equipment or renting a larger space without proper financial planning could lead to a lack of cash flow.
  • If your industry lacks demand, an expansion could lead to overproduction and wasted resources.
  • Quality control issues may arise if you don’t have the staff or resources to ensure consistency. This can lead to customer complaints and lost sales, which could DAMAGE your bakery’s reputation in the long run.
  • If you don’t have the PROPER PROCESSES & SYSTEMS to stay organized and on top of the moving parts of running a business, you’re overall operation is gonna suffer
  • Basing your “expansion” on feelings BEFORE you’re ready could result in you being WAYYYY over your head, overwhelmed, and overworked 

So, before you leap, make sure you have a CONSTANT CASH FLOW  to support an expansion. From equipment to hiring new staff, renting a new space, and marketing your business to a broader audience, you’ll need CASH to scale. And if you aren’t getting continuous busines, repeat customers, and seeing an INCREASE in revenue month after month, you could find yourself in DEBT – or worse, BANKRUPT.

AND make sure you’re also MENTALLY prepared to deal with the added stress, responsibility, and workload of growing your business. 

PRO TIP: Here’s a 3-step process to help you determine when’s the RIGHT time to expand:

  1. Assess your current business situation – your finances, sales performance, and customer feedback. Where do you stand? Are you making more money month after month? Are you increasing sales year after year? 
  2. Research your industry and competitors to evaluate whether the market has enough demand to support your expansion. You may make the BEST product in the world but if you don’t have an amazing concept then you won’t get very far.
  3. Make a detailed business plan outlining your expansion strategy, financial projections, and expected ROI. This is gonna be important when you start to look at physical locations, trying to get loans, and investors. They’re gonna wanna see that you can AFFORD to not only pay for a physical location but they wanna see that your busines is growing month after month. 

If EVERYTHING looks good and you feel 100% CONFIDENT that you’re mentally and financially prepared, go ahead and take the PLUNGE, sis!

Mistake #2: Acting on FEELINGS, not FACTS

I KNOW that emotions run high when it comes to your business, but acting on FEELINGS instead of relying on FACTS and data can cloud your judgment and lead you down the wrong path. 

For instance, you might expect everyone to LOVE your chocolate chip cookies because they’re based on your grandma’s secret recipe, which is super special to YOU. But if you push the product without conducting market research and analyzing what your customers NEED and WANT, it may lead to poor sales and wasted resources. 

Similarly, you might be pricing your products based on what you THINK you deserve instead of analyzing production costs, competitive pricing and demand. This can lead to INCORRECT PRICING, and you might end up leaving money on the table! 

As a business owner, you must make INFORMED decisions based on research, data, expert advice and FACTS. You should also create a detailed business plan outlining your bakery’s goals, objectives and key performance indicators – so you can track your PROGRESS and make decisions that boost your GROWTH and profitability.

Mistake #3: Not creating a solid foundation at HOME

Friend, I get it… 

It’s TEMPTING AS HELL to jump headfirst into opening a brick-and-mortar. BUT if you don’t develop a strong foundation at home first, your bakery WILL crumble due to lack of experience, insufficient resources, and inconsistent quality.

Start SMALL from your home first. It’s LOW-RISK and cost-effective – you won’t have to pay rent or buy expensive equipment to get set up! 

This will also give you the opportunity to build an UNBREAKABLE FOUNDATION and stabilize your cash flow, which is CRUCIAL for success. Focus on building a LOYAL customer base, establish your brand identity and reputation, and fine-tune your processes and systems.

So, start small and build a strong foundation at home. And once you’re CONFIDENT you have the financial resources to scale PLUS a loyal clientele and reputation to support your expansion, THEN think about moving to a storefront or commercial kitchen. Trust me, it’ll be worth the wait.

So there it is – the 3 BIG mistakes you should AVOID as you build your baking business. While it’s always good to learn and make informed choices,  remember that DESPITE all that you WILL make some mistakes along the way. We’re all human, and you CAN’T get everything right all the time, so give yourself the grace to slip up now and then – but make sure you get right back up and get moving again!

If you want to learn the foundations of a SUCCESSFUL business and avoid EXPENSIVE AF mistakes sign up for my FREE 5-DAY LIVE business training, Back To BasicsYou’ll learn the 5 industry secrets that keep business owners stuck and what you need to be doing to create a SUCCESSFUL, thriving business! 

Sign for FREE today →

+ show Comments

- Hide Comments

add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Go from Home Baker to Baking Biz Boss 


with our ‘Bake Out Your Business bundle’ Bundle

Here’s what you get...

 → 8 Tips To Help You PROPERLY Name Your Business

 → How To Start A Business RIGHT! Your Small Business Startup Checklist

 → Business Expense Essentials for Small Businesses - So you can start TRACKING now!

 → A 10-Step Checklist to Making Your Business LEGIT and ensure you're starting this business, the RIGHT way!

© janelle copeland 2023 |  how to build a baking business

Your one-stop-stop for EVERYTHING you need to take your baking biz to CRAZY new heights!



Follow along 
on Instagram: