Do you enjoy baking? Do people compliment your sweet treats and crave your cakes, cookies, and brownies? If so, you may be inclined to start your own bakery business from your home. Home baking is a very profitable business model, with many cafes and restaurants looking to source their baked goods from small, independent bakers rather than mass-produced chains. You can also cater for parties, make beautiful wedding cakes, or sell your baked goods at local famers’ markets. The opportunities are endless for home bakers looking to start a fun business venture.
But like any business venture, you need to ensure that you understand the costs and how to maximize profits so that you can make a living from it (even if it is a fun side-hobby). Here’s what you need to know.
1. Register as Self-Employed
Before starting your own business, you need to register your business and self as self-employed. While it is not essential or a requirement to register your business, you may miss out on legal and tax benefits as well as personal liability protection. Furthermore, you may also miss out on certain tax benefits by failing to register your business. This can create some new challenges as filing self-employed taxes are typically more complicated than filing a personal tax return. Therefore, it is in your best interests to do so. You can learn about starting your own business in the United States here.
2. Make a Business Plan
Every business needs a business plan. A business plan helps detail your role, the purpose of your business, how you are going to market your business, and any budgets you have in place. A business plan can also help you secure financial investment from anyone who may wish to invest in your bakery business.
While an in-depth business plan may seem overkill for an at home bakery business, it will help you stay on track so that you can get the most out of your business. Planning all branding and advertising methods you are going to use as well as looking at the costs of equipment and ingredients can help you stay under or on budget.
3. Advertise Your Services
You will need to advertise your bakery and services, but before you do that, you need to decide on the best marketing methods for you. Of course, in this digital age, having a website is a great start. However, you may also want to focus on other, more traditional marketing methods such as word-of-mouth, flyers and free samples. The best way to get people talking about your baked goods and great customer service is through testimonials as they tell their friends and family members how superior your baked goods taste and the high-quality service you gave them.
4. Have a Brand
Creating a strong brand is essential for all businesses. Firstly, you will want to come up with a name that encompasses your services. Once you have a brand name, you will need to have a logo that suits your theme and then ensure it is consistent on all packaging and marketing methods, such as your website and business cards. When it comes to impressing your customers, how you package your baked goods can make a great difference. For instance, you can ensure your food is safely and hygienically packaged with flexible packaging methods which are ideal for cookies. Not only does this provide you the opportunity to brand your cookies, but it extends the life of food and is eco-friendly. Read more at thepkglab.com.
5. Contact Local Cafes
Contact and speak to local cafes and coffee houses and discuss whether you could provide them with free samples of your baked goods, and if they enjoy your food, they could always place an order with you. Very rarely will you find a café or business who will invest in your services without tasting your baked goods, so reaching out and preparing tasters is something you will have to account for in your business plan and budgeting.
Home baking is a viable business venture for those who love to create mouth-watering baked goods. If this sounds like a great business idea, be sure to cover all bases with a solid and effective business plan. Also, prepare for your business to take time to build and take off.
