starting a bakery business: best small business ideas with Lyncoln Solutions
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bakery business - Russia: cost and payments.

 

1. If I buy from you a bakery designed to make 5000 pieces a day, do I have to buy more equipment if the production starts increasing?

If the volume to be produced starts going up, you don't need to invest in new equipments straight away, but only to review the production system. LS can help you solve this out. It is part of our unlimited consultation service.

2. Do the total implementation costs strongly vary according to the implementation location?

No, they don't. Costs of LS services are exactly the same. Differences may only come from transportation costs: a delivery from France to London (England), San Francisco (USA) or Bombay (India) won't obviously generate the same costs.

3. Has LS ever considered taking financially part in local bakeries they set up?

We bring our know-how and expertise in order to implement and follow up your bakery before and after its opening. But LS never takes part financially in implemented bakeries.

4. Is it possible to create a joint-venture with LS?

LS takes part neither financially, nor juridically, in the management of implemented bakeries. But the technical know-how that a foreign partner would bring is actually brought by LS through the staff training and the following-up included in all our implementations.
A joint-venture with a foreign entity may enable to share capital expenditures and reduce financial investments for the local partner. But thanks to its strong experience, LS is able to fully set up a French bakery at very low costs. Implementation costs usually turn out to be much less than the investor initially expected. So, does a financial partner become really needed?

5. Is it possible to purchase equipments on a leasing basis?

All suppliers LS is working with require a 100% down payment prior to shipping any kind of goods. That prevents LS from considering any other ways of payments for its clients except a 100% payment before equipments are shipped.

6. Are second-hand equipments much cheaper than brand-new ones?

Prices are definitely lower but in your decision-making process, keep in mind that delivery times cannot be guaranteed because search time for used equipments can be very long. Second-hand machines are millions, GOOD ones are much harder to find (but not impossible).

7. How to reduce capital expenditures when setting up a French bakery?

In order to save part of your budget, you can decide to get from LS only the most critical equipments.
That includes mixers, dough laminate sheeters and bakery ovens. The remaining equipments can be bought on the spot (sink, tables and so on...). For instance, national cold equipments (cold rooms, refrigerated workbench, fridges…) usually meet LS requirements. Most bakeries LS already set up are equipped with local cold equipments. This is a very effective way to cut drastically the amount of needed investments.
Another way is to purchase used equipments with a full warranty, just like brand-new ones.

8. Can you set up a French bakery with used equipments only?

Yes. Used equipments are technically tested and fully revised by LS specialists, which enables us to give you a one-year warranty on all of them, just like on brand-new machines! No European manufacturer takes the risk to give you such a level of guarantee. At LS, we are sure of the quality of bakery equipments we deliver.
But used equipments remain used equipments: life length will be shorter than new machines'.

9. What kind of used equipments can I buy without risk?

None! Still, if you plan to set up your bakery with both new and second-hand equipments, you wouldn't take a big risk by investing in a used fork type mixer. The latter has a very long lifetime.

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