How to Open Your Own Baking-From-Home Business

A baking-from-home business can be successful with careful planning.

A baking-from-home business allows you to make money from your baking talents without leaving home. When you work from home, your overhead is lower, which increases the odds of success. But even a home-based baking business requires careful planning to ensure profitability and customer satisfaction. With a little research and organizing, you can get your new baking-from-home business off the ground and on the path to entrepreneurial success.

Instructions

1. Establish your niche. Narrow down your focus to avoid offering too many baked goods at once. Research what type of baked items are currently being sold in your area, and offer something new--or add a new twist to an old item.

2. Test your recipes. Bake samples of the items you've chosen, and taste test them on family and friends. Have a party where you supply the baked items, and ask for feedback.

3. Get the appropriate licenses needed to operate your baking business from home. Most areas require a business license and a health permit. Some states won't allow you to prepare commercial food in a home kitchen. If so, make arrangements to bake in a commercial kitchen.

4. Get insurance to cover your business in the event someone has a bad reaction to one of your baked goods.

5. Register your business name as a DBA (Doing Business As) entity. The requirements for doing this vary by state. Check online for your state's requirements by visiting business.gov.

6. Write a business plan to estimate expenses and cash flow for the first two years. Use business planning software to make the job easier.

7. Locate and establish accounts with wholesale food suppliers. Buy any additional supplies you'll need to start preparing baked goods. Be conservative until you have cash coming in.

8. Establish the price of the baked goods you'll offer based on supply costs, fixed overhead and labor. Compare your prices to those of local bakeries to make sure you're competitive.

9. Market your baking-from-home business. Design brochures, business cards and price lists to distribute to local businesses, restaurants, small grocery stores, country stores and convenience stores. Send free samples, and offer to do in-store tastings to create awareness of your new business.

Tips & Warnings

• Create a website to promote your business.

• Network with your local Chamber of Commerce.

• Understand health department rules and regulations and whether you'll be subject to inspections.

References

• U.S. Small Business Administration
• Business Name Registration
• Clemson Cooperative Extension