Marketing Environment
Regulatory
There is no political or legislative forces that would concern the bakery. All staff members, crew and management need to learn the regulations on food and products on how to handle, store and date items within the health code and rules.
Licenses, certificates and permits are needed as follows:
Taxes
In order to operate a bakery I will need to register with both the federal and state tax authorities. I will need an employer identification number, or EIN number, from the Internal Revenue Service. I will also need to obtain a sales and use tax certificate from the state department of revenue. If I plan to have employees, which I will, I will need to register with the unemployment office and workers' compensation board in my state, as well.
Business
There are a number of business licenses or certificates that I may need to operate a bakery. I may wish to incorporate my business through the secretary of state. I also need to register my business name with the secretary of state as an assumed name or D.B.A. name. A general business license is also often required, which can be obtained through the city or county where my bakery is located.
Food
I will need to obtain a certificate or permit through the local department of health in order to sell food at my bakery. I will be preparing the food I will be selling so the health department will need to complete an inspection of the premises before approving my permit. I will be using a deep fryer for making doughnuts so likely there may be specific requirements in addition to the regular requirements for food preparation.
Competive
I have no competitors within Saline County where my business will be established. The only bakeries are inside of Walmart Super Center and Kroger’s Grocery Store, both on highway 45 the main strip for shopping. The market is big enough for all three of us. My bakery will be the dominant one as to where you can sit down and enjoy your pastry and coffee. There is a few bakeries online, Sharis Berries & CC Sweet Shoppe that can be serviced in our area but none having the general full concept of mine. They have products of cakes, cookies and berries that have to be preordered and delivered. So I see no competition with any of them, for my establishment will have a variety of pastries, donuts, cookies, cakes, and berries along with breads and bagels that can be eaten in store or taken out. They will be fresh and premade, with a choice of preordering for that special occasion.
Economic
Our economy is on the rise, with unemployment down. The area is in rural location, with a gateway to surrounding cities or towns. Harrisburg is an upper middle class city with population of 13,336 (United Census, 2013). The community is 93.5% white with 25.2% in college or graduate school (American Fact Finder, 2009-2013). Harrisburg is a college town. We have SIC, Southern Illinois College, which is a prominent successful school.
“As Millennials are 50% more likely than Boomers to place an importance on digestion-related health claims such as gluten- or lactose-free, in-store bakeries should focus on the cues of whole grains, gluten-free products, authenticity, and freshly-baked items and healthy snack,” said Eric Richard, education coordinator for IDDBA. He also added that 39% of Millennials buy their baked goods at preferred stores, as opposed to the primary stores at which they buy their other groceries, which provides an opportunity for bakeries to be seen as more relevant to this all-important consumer group (Top Bakery Trends, 2015).
The demand for a bakery is high, with not having one near or in surrounding areas. My bakery will be the one and only at this time. We have consumers in surrounding towns who visit to shop our vast area of shopping centers and eateries.
Technological
With our technology today, anything is possible in the bakery department, from making cakes to decorating them. With everyone