When you’ve decided that you have the passion and the drive to open up your very own doughnut shop, that’s just the beginning of the journey. And, unfortunately, that’s the easiest part, too. Before you can do any of the fun stuff, there’s the equipment you need to buy before you open a doughnut shop, licenses you need to apply for, buildings you have to rent, and employees to hire and train.

Those are just some of the financial, logistical, and legal issues you need to consider, but there is a template of typical process you can follow if you’re going to start up your own storefront. Consider some of the steps you need to take.

Business Plan

This is going to be your preliminary work to prove to yourself and investors that you’ll be able to make a profit from your endeavor. Your business plan should include several vital pieces of information, including:

Executive Summary

Explain what your company is and why you believe it’s going to succeed. Explain your products, your services, and a general idea of management organization, targeted customers, and location.

Company Description

This is where you go into further detail about your company, addressing how your shop will stand out from all the rest in order to remain competitive. List what your successes will be and how you plan to make them happen; you need to sell the idea of your shop.

Market Analysis

Know the industry surrounding doughnut and pastry shops and be aware of the typical clientele they cater to. That can be as broad as you like—but think about what makes your shop different, explain how it will attract certain people and whom you plan to market to.

Organization

Clearly state who the owner is and who the managers are. You need to show them your shop has clear structure and organization. Failing to provide a semblance of order will muddy the waters of management. Everyone—investors and managers alike—need to know who is in charge of what.

Marketing

You have already stated who your audience is, so now you need to show how you’re going to get the word out—whether it be physical ads on billboards, television commercials, or online ads.

Funding Request

Finally, you must provide an estimate of how much everything is going to cost you— equipment, store space, ingredients, employee salaries, licenses, marketing, etc. You need to give them the amount of money that they need to contribute in order for you to get your doughnut shop off the ground. If you have made a successful pitch, they will give you a loan that you will have to pay back. If they refuse, then you need to consider why they believe it isn’t viable and rethink your strategy.

Options for Funding

There are several different avenues you can take when it comes to funding, whether it be to fund the initial cost of start-up or funding for equipment and repairs. Such options include:

• Bank loans. The traditional type of loan, you must go to a bank to ask them for the capital to finance your shop. Typically, you receive the amount you request and pay it back each month with interest.
• Small business loans. These loans are given out through the United States Small Business Administration and act roughly the same way as bank loans, only done through the government.
• Crowdfunding. Gaining prominence in recent years, turning to crowdfunding websites can put your shop in front of a large audience. They can then donate to your endeavor, which can be a quick and efficient way to get the necessary funds.
• Equipment loans. These are specifically for you to purchase or repair equipment if the need arises. It functions the same as any other loan in the sense that you pay it back over a fixed amount of time.

The Necessary Equipment

You can’t run your shop without the right equipment for the job. The amount of equipment you need to buy before you open a doughnut shop may change based on what you plan to add to your menu, but a few of the ubiquitous pieces include:

• Ovens. The most important tool to any kitchen dealing in pasties; without the oven, all you’ll have is raw dough.
• Fryers. Especially useful for doughnuts, fryers keep them crispy on the outside while maintaining the soft inside.
• Proofers. This type of machine is the workhorse behind the scenes. Placing the raw dough in a proofer helps to fluff up the texture by moisturizing the dough. Without proofing, your doughnuts can look deflated and unappealing.
• Mixers. You need a way to effectively mix in ingredients with the batter of the doughnuts.
• Cooling racks. Give your doughnuts a dedicated area for them to cool off. They can’t be put out right out of the oven, so you’ll need an out-of-the-way location where they can cool down to an ideal temperature.
• Refrigeration units. Unless you want to purchase fresh ingredients every morning, you will need a refrigerator or freezer to store all your necessary ingredients for later use.

A Few Odds and Ends

Because of the crossover of tools and processes, while deciding on your menu you may consider expanding to other pastries besides doughnuts, such as eclairs, kolackys, turnovers, cakes. These may require other tools to streamline production, such as a commercial dough sheeter.

Using a dough sheeter can better prepare pastries for baking, and with a few select add-ons, you can customize the size, shape, and design.

Have All Your Bases Covered

As with any business venture, you shouldn’t go into your doughnut shop without having a clear vision of every aspect of management—from location, to yearly, monthly, and weekly budget, where you’re getting all the equipment, and how you’re paying for everything.

Neglecting even a single factor of your business strategy can result in the failure and closure of your business. Avoid the disappointment by meticulously preparing yourself and planning for the worst. Yet, maintain a positive attitude by striving for the best.