Do you like to bake, for example meringue cookies? If you are the person who is always ready to volunteer to bake something for the school, the church, or a non-profit organization having a baking fundraiser then you might like to consider making profit from what you like doing the best. Baked goods businesses often become wildly popular because the product is delicious and fresh and many people these days just do not have the time to bake things themselves. People greatly appreciated a tasty baked treat. There have been many different entrepreneurs who began baking cookies or cupcakes in their homes and soon wound up with retail bakeries or even franchises.
Pros of a Home-Based Baking Business
- You can make money doing what you love the best like baking all kinds of great cookies or other baked goods.
- You can show your creativity and bake something unique or add ingredients others would not think of and make your business stand out from the rest.
- It is not difficult to start a home-baking business because you already have a working kitchen and you know how to cook.
- There will always be a market for freshly baked goods.
- You have the choice of selling locally or even selling online if you have to possibility to arrange for delivery or shipping.
Cons of a Home-Based Baking Business
- You’ll have to find out about what kinds of laws regulate a home-baking business in your state. You’ll have to make sure your kitchen passes inspection by the health department in your state. If anything needs to be changed you’ll have to make sure that you can change or rearrange your kitchen so it passes all the inspections.
- There are state laws that require that all of the baking equipment you use in your business and all of the supplies are kept separate from your personal cooking equipment and supplies. In some cases you might be looking at needing a separate kitchen while other states let you use the same kitchen as long as everything required for your home-baking business is separate from what is used for your personal needs.
- You’ll need to consider how much you spend on all you need for baking in order to know how to price your goods so that you can make a profit.
- Keep in mind that even though your family might like everything you make your customers might not. So you will have to see what works and what does not
- It is definite that if your business takes off and you become a great success you’ll soon outgrow your kitchen.
Starting a Home-Baking Business
- It will be harder at the beginning and become easier as you go along. First of all you’ll have to learn about safe food preparation and about the correct way to label your products. Your labels will have to disclose all the ingredients, the calorie intake, the percentage of added ingredients and so on.
- It is helpful to have a retail or food service background but if you do not have one don’t despair. You can educate yourself as you go along or if you know someone who knows the food business you can ask them for help and advice.
- You’ll have to have a place to store all of your equipment and supplies. A washing machine to constantly clean the container you require to make your baked goods. You’ll have to start making a list of suppliers from which you can buy in bulk and for the best prices.
- You’ll have to make sure you have all the proper licenses required by your state and/or city. You’ll have a health inspection. Make sure this is all done before you open for business.
- It is important that you take a look at your competition to know how they are doing and what you can do to stand out from the rest.
Launching Your Home-Baking Business
- You’ll have to consider how you’ll do the advertising to announce the opening of your business and what you offer. You can advertise in your local newspapers and make up flyers to pass around the neighborhood and put up in store windows.
- Contact the state tax or comptroller’s office to find out how much sales tax must be included on your baked goods. You’ll need a sales tax permit and you might be required to pay sales tax monthly or quarterly.
- Create an LLC or other business kind of entity so you are protected again a lawsuit if someone gets ill or if you have problems with your food items. If you have someone who can help you, you might consider setting up a partnership. Don’t forget to set up an LLC operating agreement if you’re going to have partners onboard.
- Decide what kind of baked goods you’ll be offering. To make it easy start off by offering just a few products. You can always add on later. So you might consider first making cookies. Then as time goes on you can make changes depending on what sells well and what doesn’t.
- Consider having an online site for your business where people can find out who you are and can see what you are selling and where.
- Make sure you have a business plan and set up long and short-term goals for you business so that at the end of your first year you can see how much profit you have made and decide if anything needs to be changed.
- Make sure you have purchased all the cooking equipment and supplies you need to start off. Make sure you have arranged for a delivery service for your supplies or made a schedule of when you will do the shopping.
- Make sure to order all of your packaging and labels for your goods.
- Start baking.
- Start selling by arranging to take your baked goods to your local farmer’s market you perhaps arranging to introduce them at your local supermarket. You’ll have to see what works best.
- It is always a great idea to have an online site for your baked goods.