How to start a cookie business

The production of cookies as a business has its pros and cons.

The main advantage is quite a big popularity of cookies, which is due to the huge variety of taste, appearance, and price. This makes it more affordable than, for example, various chocolate bars, sweets, and pastries.

In turn, it allows you to reach people with low purchasing power. Also, modern society strives to buy more natural products that do not contain a lot of additives, dyes, and various substitutes. This fact makes this product even more popular among customers.

Another important advantage of this company is the fast payback of the equipment cost, as well as the cost of maintaining and servicing the production line. The main disadvantage of such a business is a rather high level of competition in this segment of the market. However, even small businesses can compete with well-known, more popular manufacturers of confectionery products.

This is primarily because new producers use the latest technologies and equipment, which allows achieving cost reduction while maintaining proper product quality, as well as a creative approach to the production process, constantly expanding and updating the range. To the drawbacks, we can add quite large advertising costs, which are necessary to promote the product to the market.

Step-by-step opening plan

We should start by studying the demand for products, i.e. what kind of oven and what price policy is most in demand. On this basis, the equipment and technology for making cookies will be selected in the future. Then, when there is an approximate vision of the end product, we do the following steps:

  1. Choice of equipment and machinery;
  2. The production technology;
  3. The choice of buildings, premises;
  4. The staff, its number;
  5. Channels of finished product sales.

Equipment for product manufacturing

As the equipment is used:

  1. Z-type dough mix (for making yeast, sandy, steamy, dumpling, steep dough (for rams), etc.) Includes a ditch for kneading, lid, and Z-like blades. There are two types of kneaders – with or without a shirt (for cooling/heating the mass). There is an adjustment of blade speed.
  2. If forming is not done manually, you need a forming machine.
  3. Special equipment for cookie top processing. For example, for glazing.
  4. Directly baking oven, preferably with quick heating, quality rotating platform, door with airtight and heat-resistant sealing gasket, with lighting inside the chamber.
  5. Packaging device. Packaging can be in bags of 200- 300-500 grams or cardboard packages for sale on the hanger.

You will also need a flour sifter, refrigerators, and dough dividers.

Production technology

The main stages of cookies manufacturing include:

  • Preparation of raw materials and all components.
  • Dough mixing.
  • Molding of cookies.
  • Product baking.
  • Cooling and packaging of products.

The criterion for calculating the profitability of cookie making.

Based on the above-mentioned features of this type of business, we can conclude what exactly should be taken into account when creating a business plan. The main point is technical and economic calculations, which combine the calculation of a monetary investment. For example, the purchase of equipment, construction, and arrangement of the workshop. Do not forget about the calculation of revenue in the confectionery shop, because it depends on how soon your investment will be recouped and how profitable your business.

Another important point is the calculation of the cost of the product: the lower it is, the more profit the shop will bring, and the lower you can set the market value. This will help to bypass competitors and attract even more customers.

Do not forget to calculate the total cost of maintenance of the company, paying salaries to workers, the cost of repair, and marketing.

 The last point has a strong impact on the price and profitability of the business. Attention should be paid to automation: it will help reduce the number of employees. It is not necessary to save on reliable equipment because the fewer breakdowns occur in production, the more efficient and cost-effective it is. The price of the equipment is 1 of the largest items of expenses for those who start cookies production.

Marketing is a very important cost item because it helps to attract more customers and increase cookie sales. Do not forget about calculating the estimated profit that can be made if you open the cookies production. This will allow us to calculate the payback period of this business.

According to experts’ calculations, the payback period of the confectionery shop equipped with an automatic line is 34 months. In this case, this period can be reduced if the shop will work in 2-3 shifts.

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