STARTING A HOME BAKING BUSINESS (Part 1 of many parts...)

INTRODUCTION

As I start this series, I hope to encourage and help motivate you to take that bold step of starting your own baking business.

Let's be real, it's not easy.

However, when you love what you do, you can make it easy!

As a potential business owner, you must be determined and confident in your own talents and abilities. You can do this!!! However, you must also accept the potential risks and obstacles that come with providing a food commodity to the public and strictly adhere to your local, county and state regulations and legal requirements. As I mentioned in my disclaimer in the side bar, I am not providing legal or regulatory advice. My recommendations and suggestions are from my personal baking and business experiences and relate to the requirements within my jurisdiction.

Cinnamon Rolls with Simple Icing

That being said...

WHAT DO YOU WANT TO BAKE AND SELL TO MAKE A PROFIT?

In each industry there are numerous steps and methods for starting up any type of business. Baking, for us, is a production and service-oriented business. We love to bake for ourselves as well as for others. We bake for our family, friends, co-workers, special occasions and holidays and, often, "just because you want to bake"! Ask yourself a series of questions and answer honestly:

What products to you love to make and eat!
What products do your family, friends and co-workers enjoy from your kitchen?
Do you offer a unique style of baking or a twist on your products that make your baked goods stand out?
By the way, who are your customers? How will you find these customers?
Is there a need for your style of baking in your market area?
How will your product(s) meet a need for potential customers and, do you see a niche that no one else is addressing?
Can you produce exceptional, high-quality and consistent products that would appeal to your market area?
Can you bake, package, market and sell your bakery items to make a profit?
And, by the way,

DO YOU HAVE A WRITTEN BUSINESS PLAN?

I will share with you my simple, one-page business plan completed just last year in 2019. Remember, I started my made-to-order baking business in 2012! Actually, for the past seven years, I have worked on several drafts, 14-16 pages, which followed a traditional business plan structure. Through internet research I found a website that helped streamline the process, condensing my older plan into a handful of pages and then down to a one-page summary. Here is what my recent business plan looks like:

It is important that you have a simple, yet concise overview of what your business will look like. However, you may require a more structured, detailed plan if you seek financial backing from a potential investor or financial institution. I did not require either. Your business plan will change over time as you grow, adjust and re-evaluate your goals and objectives. Feel free to use the above template to start your own business plan outline.

This concludes Part 1 of many parts! In the next post I will discuss start-up costs, supplies and equipment and costing your product(s). I will describe the early baking years (before home-based baking was legal in our state) when I rented a commercial kitchen, as well as my experiences baking and selling as a farmers' market vendor.

THANKS FOR READING!

PATRICE