How To Make Money Selling Cakes From Home – Want to learn how to make extra money starting a home baking business? Here’s the equipment you need to start a bakery, food laws, cake price tips, and more. Enjoy this guest post by Denise Treco. Denise runs a home baking business on the side and is here today to help you learn how to start a successful home baking business too. Enjoy!
If you love baking, you may have heard a friend or family member tell you that you should open a bakery.
How To Make Money Selling Cakes From Home
It may be your ultimate dream – whether it is or not, there is a way to take your passion for baking and turn it into a profitable side business. I’m talking about the home oven.
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You can run a home bakery under home-food laws, which vary from state to state. Before I get into the details of starting a legal home baking business, I’ll share some of my baking experiences.
I became the owner of the house for the first time so my mother could live with me after my father died. You know how everyone tells you that owning a home can be expensive with repairs, taxes, etc.? Well, everyone’s right.
I found myself in a situation where I needed to make extra money outside of my 9-5 job as a marketing director for a nonprofit to support my mom and me.
I am the one in my family who brings dessert to every formal gathering or friends party and I always make birthday cakes for my coworkers.
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It never occurred to me that I could use my hobby as a side business until I thought of a way to make some extra money.
I started a legitimate home baking business where I made about $1500-$1800 a month. I followed all the steps below and after three years I grew my business into a retail bakery which I owned for about six years before selling it.
There are advantages to starting a home bakery, but it’s important to research and follow local food laws.
The beauty is that you can build slowly or move faster if money is really needed – and you can do it all at home.
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The investment is relatively small, assuming you have an oven, cake and cupcake pans, cake pan, stand mixer and a smartphone with a camera.
All you need is a passion for baking, a few essential tools, your tried and true recipes and the ability to promote yourself and your work to find clients.
Let’s look at the steps you need to take to become a home baker and grow your bank account.
All good things need a plan, so start dreaming about them and then start writing your dreams down.
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The thing about plans is they need to be realistic, and the first few months of running your home bakery business can probably be overwhelming.
The best way to plan for this is to take them one at a time. Once you have experience working with multiple clients, you can think more and plan ahead.
Later, you can decide if you want to commit to your business full time or if you prefer to do it part time, on a casual basis.
You will need to understand the local laws in your area regarding owning a home oven. You are legally allowed to cook and sell in your own kitchen as long as you follow your state’s food laws. I should note that New Jersey is the only exception.
How To Start Selling Cakes From Home
These state regulations, called the Cottage Food Act, are guidelines for licenses, controls, what you can and cannot sell, how much you can make, and if/how you can partner with businesses such as local coffee shops. Visit Forrager.com for detailed information on the laws of each US state.
Texas, for example, has no permits, licenses, or inspections other than the required basic food operator certification. Your annual gross income from the sale of these foods should be $50,000 or less.
In Oklahoma, laws are strict, only certain types of baked goods may be sold, and sales are limited to $20,000 per year, but no health department license is required.
You need to learn what foods you can and cannot sell. In general, if a food requires freezing, freezing or special handling to ensure its safety, it will most likely not be allowed.
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Another important note is that some states require a home visit, inspection, and approval before you get started.
If necessary, local inspectors will inspect your kitchen to ensure compliance with all regulations. Knowing that the inspector would criticize my kitchen was unnerving as I prepared for the visit. But I followed my country’s guidelines and it was easy and finally stress free.
Some states require a pet-free home at all times. Others simply require that pets be kept out of the kitchen.
Many states require that home ovens have a food safety certificate, and the rules for obtaining one vary from state to state. You may have to take classes, exams, and pay fees. This training will ensure you know how to prepare and store food safely and keep your kitchen clean.
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My advice is to take really good notes on every conversation. If you speak with your local health authority to clarify any instructions, make a note of who you spoke to and the day and time of day.
Always be professional and pleasant when approaching area staff handling lodge meals. In my experience this comes down to small groups working on these issues on a regular basis. I found them very helpful and patient when I was confused and needed help.
Choose a business name that no one else owns with available social media handles and website domain.
It’s also a good idea to have a personal connection with the name. Maybe a sweet story that you can share with potential customers, use on social media, on your website or in the media.
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Open a separate business bank account and track all your expenses. You may wish to speak with legal and financial advisors about structuring your business, whether as a sole proprietorship, LLC, or other entity, and do additional research on the tax implications.
If you’re a hobby baker, you probably have plenty of tools to get you started.
One mistake I made when I started out was I bought a lot of things because “now I have an oven”. To be honest, I could have waited until I needed it, but I stuck with the idea.
The lesson here is that you may need to add tools or equipment, but think carefully before making that purchase. You’d be surprised how effective you can be with limitations.
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Depending on your menu, you may need more, such as a rolling pin and pie, pastry bag, cooling rack, extra mixing bowls, silicone baking mat, or digital scale.
When you’re a home baker, the cost of ingredients can add up quickly. See price per kg. You need to research your options and buy all materials at the lowest possible price.
And all your baked goods should be packaged or at least boxed. There are many online sources available for supplies besides what you can find locally.
Facebook groups and other online resources can be very helpful, especially for home bakers. Even Facebook groups have state specific groups where you can ask for help or clarification on local laws as well as precursors and supplies.
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This is where your menu comes into play, which we’ll talk about next. If you have a menu that calls for eight box sizes or a few custom ingredients, you’ll see how quickly the costs add up, and you’ll also need the space to store everything.
Most home bakers are overly enthusiastic about their menu and don’t consider the potential challenge of having too many choices.
Many new home bakers offer everything and the kitchen sink trying to increase what the customer wants.
Let’s say you have cakes, cupcakes, biscuits, scones and pies on your menu. And one day you get an order for cake, cake, 12 scones and 12 cakes. You want to make lots of different doughs and doughs and you need squares of different sizes.
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What if your menu includes cakes, cupcakes and pastries? And your cakes and pies are the same dough. For some cakes, you can double or triple your cake batter and use it for cupcakes. You can measure the ingredients the day before or make the dough in advance. The small benefits add up over time.
Think about which baked goods will earn you consistent compliments from family and friends. Have you been asked to create a product?
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Hi, I am Erick Norman. A blogger specialist in Kitchen Design.