Do you enjoy baking? Do you enjoy baking? Are you addicted to watching baking competitions on TV, wishing you could win the grand prize of owning your own bakery. You might be interested in making money from your baking skills.
Although baked goods have seen a rise in popularity in recent years, they’ve actually been around for a while. In the 1970s Mrs. Fields began selling her delicious cookies.1 Recently, entrepreneurs have taken to selling cakes, cupcakes and cookies from their homes and grown them into regular retail bakeries or franchises.
There are so many things you can do with home baking
- Cupcakes and cakes
- Brownies and bars
- Dog treats
It might seem easy and fun to start a home-based bakery – you are already baking. Before you start baking your first batch, there are some cons to owning a home-based bakery.
Here’s a guide and some resources to help you turn your passion for baking into a successful home-based business.
The pros and cons of a home-based baking business
- There are many great reasons to sell your baked goods online.
- If you are passionate about baking, do what you love.
- Creative expression. You might add a creative twist to your baked goods.
- It is easy to get started. It is easy to get started if you already have a working kitchen and some cooking knowledge.
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There is always a market to bake delicious baked goods
You can sell locally or online depending on the ability of your baked goods to be delivered and/or shipped.
Pros and cons of a home-based baking business
- Every business has a downside, even those that sell baked goods at home.
- Your state’s occupational and health departments regulate food service businesses. You’ll need to research your state’s laws about selling baked goods at home, and ensure you follow them.
- Most states require that you use your baking equipment (e.g. Mixers and spoons, as well as other supplies such (e.g. flour) must be kept separate from your baking equipment. You should keep your own cooking supplies separate from your personal use of flour. You may need to have a separate kitchen in certain cases.
- Selling baked goods is the only way to make money. This means that you don’t have to spend much time cooking to be able to produce enough products to earn your income goals.
- Your family might love your food, but your customers might not.
- You might find it difficult to compete and will need to learn how to stand out from the crowd.
- You’ll likely outgrow your kitchen if you’re successful.
How to start a home-based baking business?
- You should be able to bake well and make your creations delicious. You should also learn or acquire the following information when you start a bakery business:
- You should have sufficient knowledge and skill in safe food preparation. To warn people who are allergic to peanuts, you will need to tell them if there are peanuts in the kitchen.
- It would be useful to have a background in retail or foodservice.
- You need to have enough ingredients and space to store them. Good suppliers are also important. You may need to keep your equipment and ingredients separate from your own.
- All licenses and inspections required by the state, county, or city. Your home may be visited by a health inspector.
- Understanding your competition will help you stand out from the rest.
How to start a home-based baking business?
Here are the steps for starting a home-based bakery business that will make you money.
- Learn about the laws and regulations in your state that apply to food service businesses.
- Get the licenses and permits you need to open your business. This information will be available to you from your local government. It is possible to obtain the information you require and to file for your license online.
- Ask your state’s comptroller or tax office if you should collect sales tax on food items. You can often get your sales tax permit online.
These are usually free but you will need to pay the sales tax on each item you sell.
- Learn if you are required to collect a food stamp. You may need to collect a food tax in some states.
- To best protect yourself and your assets, create an LLC or another business entity (not sole proprietorship).