How to Start a Home Baking Business

Perhaps the idea of being self-employed appeals to you, but you may be second guessing your ability to start a home business. Many people have found their niche in a home baking business, though. So, if you'd like to take your dream of owning a home business off the back burner, the time has come to learn how to start a home baking business.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Clean kitchen facilities
• Business license, if applicable

Learn How to Start a Home Baking Business

1. Decide what kinds of baked goods you will supply. Choose whether your baking business will specialize in whole grain breads, or extend to pies and specialty cakes. Your decision may weigh upon the baking facilities available to you, your baking experience and the amount of time you have to dedicate to the business.

2. Check with your state attorney general's office to find out if you need a license to operate a baking business from your home kitchen. If you do, expect periodic inspections and regulations to be enforced by your state's Department of Agriculture.

3. Think of a name for your home baking business and register it with your county, often in the form of a DBA (Doing Business As). The cost of licensing is usually minimal and it will allow you to maintain a business bank account as well as take advantage of wholesale supply discounts.

4. Find your customers. Bring sample baked goods to local offices, civic clubs, delicatessens, restaurants and even catering firms. These are the types of accounts that result in consistent orders and high volume profits.

5. Keep up with needed supplies. You'll likely want to replenish perishables weekly and staples monthly, preferably through a food co-op or a wholesale baking supply vendor.

6. Keep good track of the "bread" coming in as income and how much you'll need to give to Uncle Sam. This process also includes tracking the cost of supplies to do business, advertising fees and operating expenses that you may be able to deduct at tax time to reduce your tax liability. Without adequate records at the time such expenses are incurred, you won't be able to make these claims later on.

Tips & Warnings

• Your local Chamber of Commerce may be able to connect you with local groups and businesses to which you can solicit your services.
• Some licenses may only allow you to sell rolls and breads from a home baking business and not fruit pies or cream-filled baked goods with the potential to spoil.

[quartermoon]

on 9/27/2008 This is good advice but more information such as keepage would be helpful. In mail order, is freshness a major problem? Damon Medic