About this module
Hurray – your business is live, what’s next? In this module, we help bakers outline a business direction that’ll help them tailor and finetune their product strategy to better suit their customers. Learn about building strong connections with customers, expanding your business presence and so much more!
Now that you have the ropes to run your baking operations, it’s time to look at the strategic side of things. In this module, we help bakers outline a business direction that’ll help them tailor and finetune their product strategy to better suit their customers. Learn about building strong connections with customers, expanding your business presence and so much more!
Now that we have looked at the setup of a home baking kitchen, let’s take a step back and look at the setup of the business itself. What is your business direction?
Let’s hear the business direction of our home bakers.
Kak Ain’s husband has a friend, he’s a baker. After that, he bought a new mixer. So he asked u if we wanted the mixer. So my husband said, do you want it? I said I didn’t have the know how. He suggested we partner with Ayin. Ayin worked from a small bakery up to hotels. The capital for the venture was quite little, meaning with the oven, we tried to start. After some time, it was ok and we received good feedback. Funny story is, after a month, the mixer broke down because was third hand. So we bought another one as we had already started business. And we continued up till now.
There are only two things to decide — what is your business idea & how are you going to make money from it?
Let’s look at the first part of driving a business direction.
Firstly, The Business Idea. Entrepreneurs are able to identify business opportunities from their surroundings. An opportunity may arise when there is a problem.
For example, people need affordable and accessible breads that they can consume daily. From that, you have commercial bread companies that provide affordable and accessible breads for everyone.
This is an example of a business idea that solves a problem.
An opportunity may also arise when the customers desire for more. This is an opportunity through Adding Value to products that are already available.
The story behind this was I’m very into fine dining, which is French cuisine. They use a lot of alcohol like Cognac, whiskey to do flambe. One day I was making a cake with my friend and I decided to put some Bailey’s (coffee liqueur) into the chocolate mousse and from there, alcohol cakes came about.
And we realised that it was quite a niche product in the market. We’ve been doing this for 9 years. People have tried our cakes and know that the quality is good.
Some people want more than to just consume commercial breads, they want to indulge in a better tasting product. From that, you have artisanal bakers who craft delicious, great tasting products, at a premium price.
This on the other hand is an example of a business idea through adding value.
Next, let’s look at how to Monetize the Idea.
The first thing you look at in monetising an idea is to look at the Customers. Customers drive your business, so you must know their likes & dislikes.
Take the business idea of affordable and accessible breads.
Customers like convenience, to be able to purchase their products easily.
Customers dislike hefty prices, because this is something that they consume daily.
Let’s look at the business idea that Adds Value to products that are already available.
Customers value the taste, aesthetics & nutritional value of the product. However, they may not be as sensitive to the price.
They may dislike the fact that there are very few options that satisfy their desire for premium products.
Once you understand your customers, then you can use these 4Cs to design the perfect Product for your business.
The 4Cs are Convenience, Craving, Connections, Celebration.
The first C is Convenience. Think of your target customers, and what are Convenient factors that they would benefit from purchasing your product.
For example, are your products produced & packaged to be delivered to the customers safely? Will the customers receive it on time and in the best condition?
The second C is Cravings. Everyone loves to eat, and we live in a world where there are SO many choices. What is it about your product that keeps customers coming back for more?
The third C is Connections. There are those Cakes, Pastries or even Breads that your customers buy to share with friends, family and their loved ones. It creates a moment of sharing between people that is fun, warm and meaningful.
Taste is important, but do not neglect the packaging of your product, because we first eat with our eyes.
The fourth and last C in customers’ preference is Celebrations. There isn’t a celebration when there is no food. Having a meal together has been a norm for a Celebration.
These are the beautiful cakes that your customers buy to celebrate their birthdays, weddings, festive seasons and joyous occasions. Many times, a beautiful cake is the centerpiece of a Celebration. Does your product fit these occasions?
The secret to monetizing an idea is to match the customer with the product, and of course, the strategy changes according to the business idea.
Successful businesses stem from great ideas, executed by a group of people who are committed to the idea and through customer-driven strategies.