CHAPTER I
INTRODUCTION
Consumers perceive that small bakeries offer convenience, personal service, and fresher, better quality products. In general, bakery sales increase when consumers’ average income increases. The industry is highly competitive, making it very difficult to start a new bakery, especially in cities. An entrepreneur might consider buying an existing business or locating in a rural area. One of the fastest growing areas in the bakery business is the specialty franchise store, producing everything from donuts to complete product lines. For specific information on franchising, refer to Franchising PH guide. A bakery is one of the few businesses where manufacturing and retailing are performed by the same people. You have to be an exceptional baker and business person producing and selling distinctive goods. Get experience in both areas before starting, including areas such as management and accounting.
If you buy an existing bakery, carefully evaluate the opportunity. Study the reasons for selling and assess potential profits, sales, expenses, assets and liabilities. Consult with an expert about the condition of the bakery equipment. Ask a lawyer to review any agreement. If you start a new bakery, do the same kind of careful assessments and consult with an accountant and a lawyer. Refer to the Service Business Plan book. Expect early mornings, long days and hard physical work. Sales fluctuate during the year and you will be busiest during special days and holidays.

According to the Bureau of Labor Statistics in the online report, “Food Manufacturing”, bakery businesses, together with tortilla manufacturing companies, employed about 18 percent of food manufacturing industry employees in 2008. Also, according to Hoover.com in an online report summary entitled, “Bakery Products”, the United States commercial bakery industry generates about P28