A home baking business may be an enjoyable, but challenging process. The most important factor is a love of baking because this is the foundation of the business. Home baking businesses are often started by stay at home moms or individuals who have the flexibility to begin a home based business. However, these types of businesses should not be undertaken lightly, as with any business you need to research, work hard and persevere. Home baking business owners should be prepared to spend many hours on their feet in front of a hot stove, as well as attend to regular business operations such as pricing, accounting and marketing.
Step 1
Assess yourself. Just because you enjoy holiday baking and participate in the occasional bake sale does not mean that a home baking business is a good idea. It takes a desire to bake daily, a certain amount of business sense and plenty of perseverance.
Step 2
Look into licensing. Most states have specific retail food regulations that require certain sanitation standards and packaging requirements. This often requires filling out a business application and undergoing home health inspections.
Step 3
Pick a product. Starting a home baking business that offers the same items that every other bakery offers doesn't typically lead to success. Not only will you have more competition, but you're also starting new without a client base or a retail location. Instead, try to choose bakery items that you're especially good at or that have a unique spin.
Step 4
Experiment. One of the best ways to find great baked goods is to create some recipes and bake them for family and friends. Ask for total honesty on each item and whether or not they would purchase the item if it were for sale.
Step 5
Purchase the necessary ingredients and equipment for a commercial scale baking business. Invest in a commercial oven rather than simply using the household oven, though this decision depends on the amount of business that you anticipate. If you plan to sell the goods only locally, a full-scale bakery kitchen may not be necessary. Check local regulations, too, to see what requirements there are if you are going to sell your products for profit.
Step 6
Choose a list of the main baked items that you want to sell and set a price. Look at the rates that other bakeries and stores sell these items at and set your prices accordingly. Homemade foods often sell for slightly higher prices; however, keep in mind that your business is new and high prices may deter new customers.
Step 7
Start advertising, focusing on the products offered. If you hope to sell baked goods on a large scale and ship them out, create a website. If the business is small, simply creating brochures, posting flyers and placing an ad in a local paper may suffice. Word of mouth is also very useful. Giving samples of baked goods out spreads the word of what your baking business offers.
Skill: Moderately Challenging
Keyword: home baking business, baked goods, home business, stay at home mom business
