Looking for ideas on how to start a bakery business from home? Well! Home baking is an amazing business idea because baked goods tend to sell pretty fast.
It requires little to no formal training. If you are wondering how to start a bakery business from home, this is the article for you.
What You Need to Start a Home-Based Baking Business
By now, you probably already know there is a great advantage in starting a home baking business.
The trick is in knowing exactly how to start. In order to start a home baking business, there are a few things that you will need.
First things first, you need to come up with a cake-making business plan. A home bakery business plan is essential.
It helps you budget and to come up with a plan for keeping your business running. Finances are essential when it comes to starting a business.
How much does it cost to start a cake business? How much money will you need to start this home bakery? You need to factor in all the expenses you will incur.
Secondly, have a list of baked goods that you want to sell. Know the exact products you will offer to the market.
You most likely have a good idea of what you want to sell, but come up with a comprehensive list. If you do not know how to bake, this is a good time to figure out how to start baking cakes.
You will also need to plan your kitchen. There are certain specific requirements that your kitchen must meet for it to be approved.
Make sure you have all the facilities and equipment needed to start a home-based baking business. Ensure you observe proper levels of hygiene.
Most importantly, you need to get a permit/ license. This is very necessary for your business. Contact your state’s health department so that you know which licenses you may need.
They vary from state to state. Some states may even require you to do a course on food safety before you can start a home-based baking business.
You need to have a price list for your baked goods. Set prices that will attract customers but still earn you a little profit. Prices should be fair to both you and your customers.
Home baking business ideas
Learning how to start selling baked goods from home is very essential when it comes to home baking. Here are a few home baking business ideas that may interest you.
- Sell your baked goods online
This is arguably the most efficient way to sell your baked goods. However, you will have to establish an online clientele before your business picks up. You will have to create a website and use social media platforms to promote your business.
- Sell your products to coffee shops or bakeries at wholesale price
If you do not have a ready client base, this would be a great way to sell your home-baked goods. Several coffee shops and bakeries usually outsource some of their baked goods.
- Offer pastry chef services
You can offer your baking services to personal clients or to restaurants and bakeries on a freelance basis.
- Offer gluten-free products
Not many bakeries have gluten-free baked products. It might end up being a very profitable niche for you.
- Sell your products directly at farmers' markets.
This is a great way to build your client base.
Kitchen requirements for home baking business
Before starting a home baking business, your kitchen must meet certain criteria. This is the only way it can be licensed by the state’s health department. The criteria vary from state to state. Some are lax and others are very strict.
For instance, in Texas, the health department does not inspect home kitchens. Home bakers are only required to complete a course on basic food safety and then comply with other regulations.
In some states, the health department will conduct a physical inspection of your kitchen to ensure you are complying with the health and safety rules.
Typically, you should not mix your professional equipment and work area with your personal equipment. Consequently, you may have to create extra storage space, install additional sinks, and create a separate food preparation area. You will also have to install fire safety equipment. This might be fire extinguishers or sprinklers depending on your preference.
Other than that, you will need a food-handling permit and a business license before you can start your home baking business.
Starting any type of business is not simple. You have to consider the pros and cons before you make a decision.
How much does it cost to start a bakery? It is quite a lot, so you can consider starting small by having a home bakery instead.
Here are the pros of having a home baking business.
- You get to earn money from doing something you love and you will eventually improve your well-being.
- Low start-up costs. You will not spend as much money as you would have if you decided to open a bakery at a commercial space. Rent is off your budget.
- Baked items always have a sustainable market. You can sell your products both locally and online.
- You have the opportunity and freedom to unleash your creativity.
- You can easily build on the knowledge you already have about baking.
- Flexibility in your schedule is guaranteed since you can decide how many orders you will take in a day. You also get to spend time with family and friends.
This is not meant to deter you from starting a home baking business. However, there are certain things you need to keep in mind before starting a bakery business from home. Here is a list of those things.
- There are multiple levels of compliance that you need to meet consistently. There might be regular health inspections at your home.
- There is a need to separate your baking business equipment from your personal equipment. This may be difficult especially if you also do your own personal baking. Additionally, you may need extra storage space for your baking supplies.
- You can only earn money if your baked goods sell. This becomes a problem if your products are not as popular as others.
- Most events are scheduled for the weekend so you might have more work to do over the weekend when everyone else is not working. You will have to sacrifice going for some activities because you need to get the work done.
How to start a baking business online
Starting an online baking business is a great way to reach a variety of customers. An online baking business is very convenient.
Customers who do not have the time to prepare quality baked goods can access them easily through your online platform.
Offering traditional baked goods will definitely give you a head start. These include bread, cakes, pastries, and cookies.
You can also offer special products like gluten-free or sugar-free products and cakes for special occasions. Hire a professional photographer to take pictures of your products in order to attract more customers. People like having a mental picture of what to expect.
Before starting your baking business online, there is a number of things that you need to do. Here is a list of the important things you need to do.
- Register your business
You should register your business with the secretary of state's office. Your online business can be registered as a sole proprietorship, Limited Liability Company, a corporation, or a partnership.
If you plan on running the business alone, contact the county clerk's office and register your business as a sole proprietorship.
You should also apply for an Employer Identification Number. You will use it for tax, banking, and other business documents.
- Apply for a food manufacturer or distributor's license
Contact your state's health department to apply for this license. The license will allow you to make and sell baked goods. Different states have different rules when it comes to licensing.
Some may require additional licenses before you can sell baked goods. For instance, in the city of Houston, you will also need a food dealer’s permit.
- Research on label requirements for baked goods
The U.S. Food and Drug Administration (FDA) has some requirements when it comes to labeling baked goods. You should visit their website to know what ingredients and nutritional information need to be on your labels.
- Register a domain name that is similar to your business name
Visit a domain registration website to find an available domain name. Once you find a domain name, register it.
Find a hosting company that has the ability to upload files and shopping carts, provides unlimited Web pages and Webspace.
- Design a website
You can do this yourself or hire an expert to do it. Get a professional photographer to take pictures of your baked goods and include them on the website. Make sure each item has a description, pricing, and shipping option.
You can also have a return policy and a place for customer reviews.
- Market your business online
Make use of social media platforms like Facebook, Instagram, Twitter, and YouTube. Use them to advertise your business and stay in contact with your customers.
You can also send online coupons for discounted items to attract customers and make them tell other people about your business. Build your social media following to get more customers.