How to start a home based baking business

Updated April 17, 2017

If you love to bake, you might want to start a home based baking business. People love baked goods and are usually willing to pay a hefty price for a homemade pie or even a dozen cookies. However, there are many legal requirements you will need to fulfil in order to start selling your baked goods. Learn about everything you will need to start a home based baking business in the article below.

Each state and township has different requirements for business licensing. It is important that you check with your local government centre to find out what is required for your home based baking business.

Most states require doing business as name, which usually also serves as your business registration. You can easily get this by visiting your local government centre. It generally costs less than £32.

A health inspection is required by most states. This means the Department of Health for your area will send an inspector to your home to check out your baking area. In order to sell food anywhere, this is generally required.

You will be required to pay sales tax on all baked goods sold. In order to get a sales tax certificate in your business name, visit your state's website or call the tax department for your state. Each town, county and state charges a different amount of tax. You should always know the tax requirement where you are selling.

If you need money to start a home based baking business, you will need to write a business plan or have one written for you. This is the most essential thing you need to get your business going. Any bank or investor will require certain information about your future company before giving you a loan.

A good business plan includes three parts. The first part is a description of your business, which should explain your marketing plan, how you plan to operate your business on a regular basis, your business insurance information and employee information.

The second part of the business plan is made up of financial figures. Include any loan applications, investments you have already made into the business and income projections for up to five years.

The final section of your business plan is for supporting documents, such as business licensing, tax registrations, your resume, supplier information, etc.

In order to get your name out there so people know you exist, it is necessary to promote your business regularly. To get started, you will need to prepare several documents. There are many companies that can design and print your advertising materials if you do not have the ability to do so.

Prepare business cards, letterhead, brochures or flyers and labels for your baked goods. It is always a good idea to put an ad in your local newspaper.

To get started, hand out your business cards to everyone you see and leave brochures or flyers at every location you visit. Mail flyers or brochures to friends and family that you think might be interested in purchasing your baked goods. Be sure to ask permission from the proper management before hanging any promotional signs, some places allow it while others do not.

Once you have finished preparing the legal requirements to start your home based baking business, you will need to find a venue to sell your baked goods. In most areas of the United States, each town has at least one location where you can sell your goods on a regular basis.

To keep your home based baking business at home, you will need to do a lot of advertising. That is not to say it's impossible to do, just more difficult than selling in a public place.

Consider selling your baked goods at a local flea market, swap meet or craft show. Buyers love homemade baking and generally buy several items at a time.

Perhaps your town has a farmer's market. Set up at the market several times a week with your baked goods. People go to a farmer's market to buy food and that includes baked goods.

Sell your baked goods at a discounted price to local convenient stores and restaurants. Many places purchase baked goods from known bake shops or suppliers. However, if you can offer a better product for the same price, it is likely that they will buy from you.

Things You'll Need

  • Business Licensing
  • A Business Plan
  • Advertising and Promotional Materials
  • A Location to Sell
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About the Author

V. L. Hamlin is a freelance writer residing in upstate New York. She graduated from the State University of New York at Delhi in 2000 with a liberal arts degree and concentrated studies in literature and psychology. She has been writing online since 2006 and is currently a freelance writer for Associated Content and Demand Media.