How a home baking business can start to make you some serious dough

If you have a knack for baking that rivals those on The Great British Bake Off, you could turn your passion into pay by starting a home baking business. If you want to start your own baking business, you might be wondering where to start. That’s why we’ve put together this guide to show you how easy it is to make money from your love for cakes, biscuits, and more.

Perform market research

Step one in setting up any business is to perform market research. If you want your business to take off, you need to make sure there is a market for it that you can sell to. Consider questions like “who will buy my baked goods?” and “how will I differentiate myself from my competitors” when performing this research.

This podcast about a woman who started a successful cake and design business has lots of tips and tricks for getting going, including advice on how to find your first customers.

Read the rules

Any business that serves food has to comply with the Foods Standard Agency’s rules and regulations. You’ll need to do your research to ensure that the space you’ll be baking in, where you’ll store your food, and how you’ll transport it are all compliant.

Fortunately, the government has plenty of resources and information packs out there, like the safer food, better business pack. Ensuring your home kitchen meets regulations will require plenty of work and research, but it’ll be well worth it when you have the all-clear to start your business.

Register your business

If you start a home baking business, you’ll need to register yourself as either a sole trader or set up your business as a limited company with HMRC. Even if your home baking business is a side hustle and you have a full-time or part-time job alongside it, you’ll still need to register.

You’ll also need to register your premises with your local authority’s environmental health service. This should be done at least 28 days before you start trading. In addition to this, you may need to tell your mortgage provider or landlord that you are running a business out of your home and get their permission. You may also want to consider getting business insurance.

Market your home baking business

Marketing is an essential part of making a profit from a home baking business. You’ll need to set up social media pages, a website, and even consider local advertising. Word of mouth is important for any home baking business, but this is supported by an effective marketing strategy.

There’s lots of marketing advice out there for anyone with a home baking business, like this blog post on five ways to promote your home baking business. From attending local events to getting friends and family members to spread the word, marketing your baking business will be a huge part of the job. If you want to start a home baking business that makes money, you’ll need to be ready to market it in person, via word of mouth, and online.