Resource Guide for Small Bakery Business Owners By Lindsay Kavanagh, Amber Sherman, and Robbin Zirkle While

brainstorming ideas for our project, our group elected to meet at the Sugarland Bakery in downtown Chapel Hill. We were inspired by the delicious concept and elected to create an ultimate library collection for small business owners specializing in bakery retail in restaurant environments. We focused on analyzing the needs of different retail bakers in Orange County, and produced a profile of needs for those Mom and Pop type businesses. One thing we had to determine immediately was whether or not our collection is geared toward prospective business owners or established business owners. We elected to create a collection for already-established small retail bakeries. Next, we delineated the needs of these business owners. First, what might a small business owner need? Immediately, we knew that their needs would branch into three areas: logistical, managerial and legal. First, logistically, what are the ins-and-outs of running a small business? Our collection attempts to answer that by addressing each facet of small business needs. Logistically, the most important information will be about the area surrounding the small business and its competition in the area. This need is easily satisfied through the Market Research Handbook which provides information about comparable businesses. Second, a business will flounder if it has a weak system of management, so a great guidebook for an otherwise untrained business owner is Mastering Team Leadership. This can be enhanced regularly through a subscription to the Journal of Small Business Management, which will provide updates on best practices for managing your business. Finally, the legal end of business can get tricky, so we determined that the monograph produced by the American Bar

2 Association provides a guide for business owners in all things legal, satisfying that information need, or recommending further reading. When we reached our discussion of legal issues for small business owners, we determined that health standards are also a major legal issue for businesses. As we limited our community to retail bakeries in Orange County, the Orange County Restaurant Plan Review was a perfect source, providing explicit guidelines for health and safety. In our research, we were also fortunate enough to identify Safety Standards as published by the American Society of Baking, which presents the standard to which nationally-recognized bakers follow. At last, we were able to focus on the somewhat untraditional resources: those specifically for bakers. The fact of the matter is, however, that a baker already has recipes that he or she loves and has founded a business upon. That said, we were able to identify two helpful resources in this regard. First, the Cake Decoration Stores Industry Report, which provides information specifically about bakeries to provide information for comparison. We also identified the Retail bakers of America website, where we learned that a subscription also grants bakers not only the opportunity to network, but also to access discounts on products for your business. As a small business owner, I would likely be satisfied by this collection, but would still feel that an aspect was missing: how do I grow my business? This skill isnt necessarily inherent or transparent, so great resources are necessary to understanding how to grow a retail bakery business. In browsing available resources, we discovered the idea of branding your business, or making it a symbol and idea in addition to a business. Branding a Bakery is a case study that

3 demonstrates how to go about doing this. Branding, however, is nothing without promotion, so we also included Bakery Promotion Ideas, a guide for getting a businesss name out. Our collection of resources will provide any small retail bakery owner with a wealth of information regarding not only the legal and technical aspects of business, but also those necessary to help such a business grow and prosper. That said, this is also a collection that evolves with a business, and lends itself to a clear outline for a collection policy.

Ten Best Resources American Bar Association. (2010). The American Bar Association legal guide for small business: everything you need to know about small business, from start-up to employment laws to financing and selling. (2nd ed.). New York: Random House Reference. The American Bar Association published a legal guide for small business owners that provides a good overview of different legal issues that can crop up for a new business owner. The book presents business owners with some legal basics as well as some resources for further exploration. The book covers a wide variety of topics and issues and offers readers with a very basic grounding. It does not, however, go into great detail about any one issue or problem that might arise. Therefore, it is a good basic guide on different laws and related issues.

4 American Society of Baking. (2006). American National Standards Institute Z50.1. Safety Standards. Retrieved from http://www.asbe.org/displaycommon.cfm?an=1&subarticlenbr=45. The American Society of Baking (ASB) produces safety and sanitation standards for baking equipment through a manual and reports with the American National Standards Institute. The safety manual is available to any baker at no cost online. ASB was established in 1924 as a professional organization to educate and bring together bakers and bakeries worldwide. The ASB meets annually to discuss standards and allows bakers to present and share technical information. Full membership to other American Society of Baking resources is $185 annually and includes consultations, informational and how to webinars, and conferences. The safety report was last revised in 2006 and the process to set the minimum standards involved the agreement of numerous bakers and industry professionals which should reduce any bias. As large scale baking equipment could be dangerous to install and operate, knowing safety standards and best practices would benefit any commercial baker. Having membership access to ASB or a current version of the safety standards report would serve as a constructive resource for a small bakery.

5 Brookins, M. (2012). Bakery Promotion Ideas. Retrieved from http://smallbusiness.chron.com/bakery-promotion-ideas-10767.html. Miranda Brookins of Demand Media writes articles relevant to small businesses for the Houston Chronicle. The author is a marketing professional and includes several references and resources to support her recommendations. This resource is available for free online and is a short, to the point, article perfect for a small business owner to read during a break. In this article, Brookins provides several suggestions for local bakery owners to promote their shops. Suggestions include couples baking classes, special discounts, using social media, sponsoring an event, and cupcake contests. The suggestions are broad enough to apply to most any location including Chapel Hill, NC. The ideas are also creative and practical and would take minimal effort to put in place. This resource is especially beneficial to small business bakers who need to make their shop stand out and attract new customers. The online article also suggests other pieces by Brookins that deal with small business bakery promotion and baking ideas. Cartwright, R. (2002). Palgrave Master Series: Mastering Team Leadership. New York: Palgrave Macmillan. Roger Cartwright is a consultant in Management Skills, Organisational Behaviour, Customer Relations and Tourism. His book for the Palgrave masters series is written for leaders who want the most out of their employees. Organizational success is hinged on the strength of its team. This book has chapters on everything from motivating the individual to team development to a chapter on synergy and groupthink. This book is a very valuable read for anyone starting or currently running their own business.

6 Ehret, J. (2007). Idea Spot: Branding a Bakery. Retrieved from <http://theideaspot.blogspot.com/2007/08/branding-bakery.html>. This article was a case study for a single bakery in Texas. Owned and operated by a young Italian woman who moved to the states for school and stayed to open her own business, the bakery had a core group of loyal customers. Most of her business came through her custom cake orders and she was hoping to expand her clientele and become better known throughout her community. This case study and post looked at different ways for her to expand her business through branding. She was advised to identify her top values for her business, develop a mission, create a specific vision for her business, and finally, write a brand promise. The idea with branding is to create a truthful and specific perk to shopping at a certain place, especially in a small community where most businesses are local.

7 Nanfelt, M. (2011, October). Cake Decoration Stores. IBISWorld Industry Report, OD4328. Retrieved October 7, 2012, from the IBISWorld Industry Reports database. IBISWorld is a web accessed database that provides industry specific statistics and research including the baking industry. A 2011 report titled Cake Decoration Stores details industry performance and outlook, the competitive landscape, operating cost structure, trends, external influences and other useful information for a small business bakery. The information is categorized in an intuitive and user friendly format with many charts and graphs to visualize the statistics. The writing is straightforward and any industry jargon used is first defined and explained. Existing small bakeries would reference this report to see if their spending, growth, challenges and successes are in line with other bakeries. A baker considering opening a new shop could use this report to facilitate any entrance barriers. IBISWorld has produced market research reports in Australia since 1971 and began covering US industries in 2003. The information is collected from publicly available sources and analyst verified non-public sources as well as self-produced data and modeling. As IBISWorld does not always cite the specific sources relating to information it is difficult to verify the authenticity of the information. Access to this report alone would cost $825. National Council for Small Business Management Development, West Virginia University Bureau of Business Research, International Council for Small Business, & Small Business Institute Directors Association (Eds.). Journal of small business management.

8 The National Council for Small Business Management Development is a quarterly periodical specifically written for owners of small businesses. There are also subscriptions available to users on the World Wide Web. It would be a good resource for any small business owner. Orange County Health Department. (2011). Restaurant Plan Review. Retrieved from http://www.co.orange.nc.us/envhlth/documents/FoodServicePlanReviewPacket.pdf. Published by the Environmental Health Division of the Orange County, NC Health Department, this 11 page document outlines the rules and regulations that need to be followed by food service establishments in Orange County as well as an application for a restaurant review. A cover page succinctly outlines the steps required for the health department to complete the review as well as current contact information if the owner has questions. The source is free and reliable as it is downloaded directly from the Orange County Health Department website. As passing health inspections is vital to any restaurant, this document is a useful resource to a bakery in Chapel Hill. Although this document does not offer any advice or recommendations for passing an inspection, the small business owner will know the specific criteria on which their inspection will be judged and can keep their business up to code by referencing this document. Retail Bakers of America. (2011). WELCOME TO THE RETAIL BAKERS OF AMERICA! Retrieved from http://www.retailbakersofamerica.org/. Retail Bakers of America is a non-profit organization dedicated to the success of bakers and bakeries throughout the US. Access to the main website is free; however, a membership ranges from $50 - $350 annually. Membership includes training/

9 professional development including workshops, conferences and certifications. Membership also provides networking connections including promotion, discounts, and representation as well as timely information in the form of e-newsletters, monthly reports and magazines. The website and magazines do allow equipment and product distributors to purchase advertisements; however, the information provided does not appear biased. Small bakeries would benefit from full access to this organization as it provides an interactive way for bakers to connect with one another and share their skills and knowledge as well as information on experiences with vendors. Likely the most helpful aspect of this source is its directory of suppliers. This page provides links to the websites or contact information for recommended suppliers of equipment, fixtures, general services, ingredients/ products, packaging, supplies and technology. Richard K. Miller & Associates. (2012). Restaurant, Food & Beverage Market Research Handbook. Retrieved October 7, 2012, from Business Source Complete database. The Restaurant, Food & Beverage Market Research Handbook is published yearly as a summary of the previous years economic statistics and the current years outlook of the restaurant industry. It is available in the Business Source Complete (BSC) database or as a separate report for $385. BSC produces peer-reviewed literature for various industries and most of the information is collected from national surveys. A market summary breaks down the dollar amount and percentage of sales at various venues and establishments giving bakeries a good indicator of where to place their products. The handbook also shows culinary trends, market growth potential, and a state by state

10 analysis of the food industry. Existing small business bakeries need to adapt and adjust their products based on the national and local tendencies. A commercial baker would benefit from a yearly subscription to this research in order to keep up with other restaurant movements. For example, the 2012 trends are hyper-local sourcing, sustainability, childrens nutrition, gluten-free and allergy-conscious food, and farm/estate-branded ingredients.

Good-But-Excluded Resources Small Business Reference Center Database by EBSCO Publishing. The Small Business Reference Center gives start up kits and business plan formats, videos of lessons learned, how to information, business basics and industry specific information. A subscription to the program allows the user access to almost 400 full text periodicals, over 450 full text reference books, hundreds of business videos, and state specific resources. It also boasts a user-friendly interface as well as an option to view the information in .html, .pdf, or excel. The business videos provide what could be considered critical information for business owners including various videos with lessons learned, different lectures, and several how to videos help success in all aspects of managing a business. Resource Page. US Small Business Administration. North Carolina District Office. Retrieved from http://www.sba.gov/about-offices-content/2/3127/resources. The Small Business Associate of NC resource page consists of links for business owners. It is an easy to navigate site with information about starting a business as well as

11 information on grants, contracting, counseling, and training. There are also links to local resources in North Carolina. The drop down menus at the top are well organized according to subject, with access to information about steps to starting a business, from creating a business plan to obtaining a business license. There is also information about growing your business as well as business rules and regulations for the state of North Carolina.