It is entirely possible for you to start a cake business from home. Many people have done it – professionals, hobbyists, stay-at-home parents, what-have-you. They have made a name in the cake business while operating in the comforts of their own home. It all sounds daunting at first, but we’re here to cut to the chase and help you set up your dream cake business through tried and tested methods.
Table of Contents
- 1 Step-by-Step Guide to Start a Cake Business from Home?
- 1.1 Step 1: Identify the kind of cake business you want to set up and figure out if it’s right for you.
- 1.2 Step 2: Identify the costs and expenditures needed to start a bakery as a business.
- 1.3 Step 3: Know your local laws and regulations when it comes to setting up a home bakery.
- 1.4 Step 4: Plan the financial part of the business.
- 1.5 Step 5: Come up with your first menu.
- 1.6 Step 6: Bake samples, take photos and start advertising!
- 2 Start a cupcake business from home FAQs
- 3 How to start a cake business from home; Conclusion
Step-by-Step Guide to Start a Cake Business from Home?
Failing to plan is planning to fail. You might have heard of this old adage before and it’s true when it comes to starting a bakery as a business. Sit down and create a step-by-step concrete plan to ensure the success of your business.
As a novice business owner, you probably don’t know where to start and what to do first so here is a step-by-step guide to steer you in the right direction:
Bakery as a business; Cake packaging
Step 1: Identify the kind of cake business you want to set up and figure out if it’s right for you.
It’s not enough that you want to start a cake business from home. Figure out the specifics first.
- What kind of cake will you be making?
- Who do you want to cater to?
- To know what kinds of cakes you plan on making in the future, you should figure out your baking style and skills first.
- Do you have enough equipment, manpower and skills to bake complicated, 4-tier cakes for weddings or are you more the birthday cake kind of baker?
- Do you prefer working with fondant or do you like buttercream frosting more?
Having a signature cake style and design can help clients identify your business with others.
Here’s an example: one cake baker has set herself apart from other cake bakers by creating cartoon-inspired cakes. You can have the same thing for your business.
It’s also good to figure out industry trends. For instance, in the past years, decorated cakes are at the top with 26% popularity index while dessert cakes are at 16%, pound cakes at 11% and cheesecakes at 8%. Many people like cupcakes as well with its 17% popularity rating. Knowing all these numbers can help you figure out where to position your business.
Step 2: Identify the costs and expenditures needed to start a bakery as a business.
How much you are going to spend will depend on what you are currently working with. Do you have the right ovens to cater to an influx of orders or do you need to buy more commercial-level ovens?
Most start-up home bakeries need to spend at least $2000 and up to $7000 for new equipment. But don’t worry because you can find a lot of affordable tools and equipment from online stores.
Start a cake business from home; equipment
Step 3: Know your local laws and regulations when it comes to setting up a home bakery.
Know and identify local regulations and laws first. What is required of you? Basically, you need to provide proof that you can create food that is safe for consumption. To do that, you need to make sure that you have the right equipment, you are practicing safety and cleanliness steps, your kitchen is equipped with the necessary tools for the right processing, and that you use approved ingredients.
As a home baker, what you are going to sell will fall under cottage food. While there are many regulations you need to follow, it will not be as rigorous as the laws followed by commercial bakeries.
You can start applying for a business license at your local council once you have gone over the regulations on food and kitchen design. Come up with a name for your business and select the right business type. Ideally, you would want to set up an LLC or a Limited Liability Company as opposed to a sole proprietor because it will separate your personal assets. In the event of a lawsuit, your personal assets will not be affected.
Step 4: Plan the financial part of the business.
Open a business account so you aren’t using your personal account. Develop a system that you can follow to monitor incoming and outgoing expenditures. This will make taxation easier.
Keep it simple at first. You might plan on showcasing every recipe you have but that can wear you out fast. While you are still getting used to your operations, keep your menu simple and easy to manage.
Example of a menu; how to start a cake business from home
Step 6: Bake samples, take photos and start advertising!
Take quality photos of your best cakes. If you have room to spare in your budget, hire a professional photographer to take high-quality photos of these cakes. Open social media accounts or even set up a website where you can upload photos of your cakes.
Start a cake business from home; prepare and market your cakes
Start a cupcake business from home FAQs
How do home bakers sell their cakes?
There are many ways to sell and advertise your cakes. Most home bakers do pre-orders and deliveries for clients near them. You can start advertising to your friends and family and rely on word-of-mouth advertising and referral.
Try promoting your products on social media and have an active system of posting updates. You can get pre-orders through your social media platforms.
Participating in farmers’ markets and fairs can also be an effective way to get your name out there. Check your local farmer’s markets to see how you can join.
How do I attract customers to my home bakery?
Post the best photos and videos of your cakes. You can even take a video of yourself decorating the cake and make sure to leave instructions on how interested customers can order. You can reach out to influencers as well and see if they can promote your cakes in exchange for free baked goods.
At farmers’ markets and fairs have some samples waiting for interested customers and entice them with well-decorated cakes.
Come up with a new recipe. You can have an in-season cake that makes use of fruits that are currently in season.
Bakery as a business; Cake decoration
How to start a cake business from home; Conclusion
Take the leap. Use your passion for baking cakes to fuel you in setting up your home-based cake business. It’s not easy at first, but it will be worth it. Do you have any question on how to start a cake business from home? Contact us.
Check out our guide on how to start a cupcake business from home.