It may be helpful to seek advice from an accountant or financial advisor on how to start a bakery business from home. The downside is that it doesn’t protect you from liability, so your personal assets are at risk if someone were to get sick from your baked goods.Ī Limited Liability Corporation (LLC) is often the preferred way to set up a small bakery business since it offers a combination of tax benefits and liability protection for small business owners. There are a few ways you can establish a small home-based business:Ī sole proprietorship is usually inexpensive, offers tax benefits, and is easy to form. It’s important to define your business structure before operating your home bakery since it will affect how you pay taxes. Look for the sweet spot to help your business attract more customers and stand out from the pack. There will always be a market for home-baked goods, but there also could be fierce competition. Your business plan should include a clear vision of your target market.ĭo you want to sell your sweets to local customers? Or do you have your sights set on restaurants, schools, and companies? The more you define your target customer, the easier it will be to meet their needs. If your business name is available, be sure to register it and obtain a Federal Tax Identification Number.
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You can explore names for your bakery with this free business name generator.Īfter you decide on a name, check that another bakery doesn’t already own it.
People love creative business names, but make sure it’s clear what you’re selling.
If you specialize in wedding cakes, you could call your bakery Honeymoon Sweets. The only thing more fun than baking may be coming up with a catchy name for your business - the more unique, the better. How much money will you make in the first year? Use our free business plan template to help answer important questions such as: Writing a business plan takes time, but it will help you think through your goals and objectives. Once you know what you will offer, you can begin to think about other aspects of your business. Now it’s clear what you’re baking and how you’re supplying it to your customers. You could advertise that you’re a home-based baking company specializing in custom cookie care packages. What items will you offer? What makes your business unique? The more specific you are, the better.įor example, instead of calling your business a home-based bakery, use language that more clearly defines your business intent. If you have all the right ingredients and follow the instructions, you’ll end up with a successful home-based bakery.ĭescribe your business in a sentence. So before you turn on the oven, follow these steps to learn how to start a home bakery: 1. It requires research, planning, marketing, and more. If you’re often asked to bring a dessert to a dinner party or to supply the cupcakes for an annual event, your baked goods are likely tasty - if not downright irresistible.īaking skills matter, but there’s so much more that goes into starting a home-based bakery. It’s safe to assume that you love baking and already do it well.
Growth is a good sign that you’re going in the right direction! Start a Baking Business Most home bakers won’t hit their limits in the first years of business, so if you’re starting small, this likely won’t become an issue until your business grows. You may not like the idea of sales limits, but don’t let that stop you from pursuing your goal. If you’re planning to sell your baked goods at farmer’s markets, local farm stands, events, or online, be sure to check your local zoning laws to find out if it’s allowed. Cottage food laws may limit the types of foods you can make and the amount of homemade food you can sell.Īdditionally, there may be limitations on where you can sell your products. These laws, often called cottage food laws, are designed for small businesses. You can visit your state’s Department of Health website to check the laws in your area. Home Bakery Lawsīefore you begin the process of starting a home bakery business, you need to make sure that home bakeries are legal in your state. Inspiration happens in a flash, so you never know when a brilliant idea will reveal itself. I know a caterer who turned a failed waffle recipe into a thriving dog biscuit business. Are dog biscuits legitimate baked goods? They sure are!
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