Are You the Next Mrs. Fields?
Do you have a talent for making irresistible treats that people love? Thinking of breaking away from the 9 to 5? We totally get you.
Nothing compares to the life-changing freedom and satisfaction of owning your own business and being a freelancer. For many people, a home baking business is a fun, fulfilling, and profitable path to take. So, if you’re wondering how to start a bakery from your home, you’ve come to the right place.
Following these ten simple steps will set you on the path to success as you start out on your journey.
Are you ready to kick your boss to the curb, make your dream a reality, and share your gift for baking with the world? Let’s get started.
How to Start Selling Baked Goods from Home
Decide what baked offerings you want to sellDo you have a way with pies? Cookies? Cakes? Sweet breads? What do you bake that keeps friends and family coming back for more? What dessert makes you personally responsible for the high BMI rates in your family? Find the intersection between what you love to bake, and what others love to eat.
Also, discover what you can make to stand out from the competition. You can try experimenting with new combinations, gorgeous presentation, or even vegan or gluten free offerings.
Create a business plan
Creating a comprehensive business plan can take some time. But it’s important to invest this time into the process to make sure your idea is sound, and you have the practical means to make it a reality. Try out some ideas on family and friends. They’ll love being your guinea pigs! But before you hit the big time, some things you’ll want to consider are:
- Who are your ideal customers?
- How much will you charge for each baked good?
- How much money do you need to get started? Will you need a loan from a bank or a family member?
- How much money does the business need to be making before you can quit your current job? Otherwise known as “Hallelujah Day.”
Get a home business license
You’ll need to contact your local authority to find out how to apply for a license, what documents you need, what the approval process looks like, and how much the business license will cost.
Get liability insurance
We know, we know. You’re clean, organized, and you want to do everything in your power to make a high-quality, safe product. But sometimes things can go wrong. And if they do, you’ll definitely need to have insurance coverage to protect yourself. So, make sure you contact a local insurance agency to learn about pricing, and the different types of insurance that are available.
Set up your tax permit
Does the area you live in charge sales tax on baked goods? If so, you’ll need to apply for a local tax permit. If not, lucky you – you can skip this step!
Understand the health codes in your areaThere may be variations in health codes depending on where you live. Make sure you find out what they are, and then prepare your home baking space accordingly. Ensuring you meet the safety standards helps you protect both yourself and your customers. If you don’t think you can swing it in your home kitchen, check for a restaurant or kitchen that rents space in your town or allows people to come cook at night when they are closed.
Buy the equipment you need
Yay – the fun part! All bakers love cool gadgets, right?
Find out about the equipment needed to start a bakery, and then get your hands on the highest quality pieces you can afford.
Getting the best equipment helps make your work enjoyable and efficient. Most importantly, it can help make your baked offerings turn out delish every time.
Decide how you will buy and store the ingredients
There are a variety of options where you can source your ingredients from, including grocery stores, online suppliers, and local farmers. Prices, quality, and the types of ingredients may vary with each source. Find out which option works best for you, and then get out there are start building relationships.
Get to know the staff at the grocery store, and the people at your farmers markets. If you tell them you will be ordering bulk ingredients from them on a regular basis, they may offer you a discount.
When it comes to storing the ingredients, create a space for them that is separate from your own personal groceries. This helps when calculating inventory, and keeps potential allergens away from your baking ingredients. It’s also important if you are going to be getting inspected by the health department.
Create eye-catching packaging and labelingThe importance of great packaging cannot be overlooked. Given the choice between two similar bottles of wine, most of us will choose the one with the best label, right?
The same goes for your baked goods. Come up with unique, fun names for your baked creations, and design stand-out packaging. If you aren’t design-savvy, you can contact a professional to make your packaging and labels for you. Fiverr is a good place to start.
In addition, it’s a good idea to consider environmentally-friendly packaging. This helps you reduce your own environmental footprint, while potentially attracting more customers who are eco-conscious.
Find local restaurants, shops, and grocery stores to sell to
Time to put on your marketing hat! Where do you want to sell your baking? For many people, local farmers markets are a great place to start. Reach out to the market organizers and find out what you need to do to set a booth.
Or maybe approaching small, local shops is the best option for you. Don’t be afraid to walk in and introduce yourself to the manager or owner. Find out if your product is a good fit for their customers, and if they have room on their shelves for what you are selling.