How to Start a Home Bakery Business

Last updated on May 13th, 2021 at 03:24 pm

You have grandma’s best dessert recipes. You’ve spent the last decade making cakes, cupcakes, cookies, and other treats for every school and church function. Your baked goods are always the first to sell out and everyone tells you “Wow! That’s delicious! You should really sell these!” You smile and thank them but are not sure how to set up a store front bakery. Well it’s time to take that plunge!

Below are several steps that will help you start your own Home Bakery Business.

1. What’s in a Name… EVERYTHING! Come up with a unique business name.
   • Make sure that it is unique and that a website URL is available for it. The last thing you want is to come up with a great name, only to realize it’s so common that it will be difficult to create a website for it with a unique URL.
2. Paperwork Time…Visit your city’s licensing bureau to get all the paperwork in order.
   • You’ll also need to set up an inspection by the Health Department to certify that your home bakery is legal.
   • Insurance will also be needed to protect you and your business in the event that a customer sues you. (Hopefully this never happens, but well you never know these days!)
3. And You’ll be Serving…Create your scrumptious menu.
   • Will you be specializing in only cupcakes or cookies or will you offer various desserts? What flavors or designs will you have? Or perhaps you’ll allow customers to create their own flavors and custom designs.
   • Regardless of what you decide, knowing what goods you’ll be creating will help you purchase the correct equipment and supplies.
4. Making a Profit…After setting up your menu, determine your prices and make sure that you can turn a profit after paying for supplies and other expenses such as insurance, advertising, and delivery expenses.
   • We highly recommend that you shop around for the best prices for your flour, eggs, milk, and other common staples. Having a fixed cost on these will help you better gauge where you should set your prices.
   • Check out your competition and make sure your prices are aligned especially if you’re offering similar products.
5. Supplying Your Kitchen…Call or visit a restaurant equipment distributor that has knowledgeable consultants who can assist you in purchasing the right equipment and supplies.
   • Since you’re working from home and won’t have a storefront to stock, you are not going to need all the heavy equipment that a traditional bakery would need.
   • Make sure to get plenty of extra spatulas, mixing bowls, and baking pans.
6. YooHoo! Anyone Out There…Since you won’t have a storefront for people to see, how do you plan on reaching new customers?
   • Create a website, a Facebook Page, and Twitter account for starters. Take lots of pictures and post them for the world to see.
   • Let all your friends and family know what you’re up to and have them help you spread the word.
   • Another great idea is to sponsor a donation event in your community. A couple dozen donated cupcakes will go a long way to spreading your company’s name and delicious food to your area.
7. Organization is the Key to Success… Keep good records of your expenses, your sales and of course your customers. A few extra steps will make your life a whole lot easier later.

Did you start your business in your kitchen? Tell us about your experience below!