How to start a cake business from home | CraftCover (2023)

Are you planning to start your own cake business? You might think it's unattainable, but with the right planning and dedication, you could soon be making pie of making your new business venture.

We explain everything you need to know and how you can protect yourself and your new business with tailor-made solutionsbake a cake insurance.

Why start a cake business?

Baking cakes is a regular hobby for many people across the country, and many are turning their hobby into a career.

Cake making has become a profitable business for those with a passion for baking and has brought immense success to many bakers over the years.

Can I start a cake business from home?

Yes, you can start your own pastry shop at home and most pastry chefs actually use their own kitchen as a workplace.

The possibilities for baking cakes are endless, and it doesn't have to be just cakes. You could make and sell a variety of sweet and savory goods as long as you make it clear in your marketing what kind of home baking business you are in order to attract the right customers.

There are so many ways to sell baked goods, so it's important to figure out what you love to bake before you start selling.

If you are trading from home you must inform your home insurance company. Otherwise, a household debt cannot be paid because the business activity has not been declared.

What can I do for my home baking business?

The list is endless when it comes to what to bake for your new venture. A “cake shop” isn't necessarily all cake—some prefer to branch out into other areas.

Just a small selection of our personal favourites:

(Video) How to Start a Cake Business from Home | CHELSWEETS
  • Brownies and blondies
  • Cookies
  • Cakepops
  • Shortbread
  • rocky road
  • Cupcakes
  • Cheesecake
  • Fudge
  • Makronen

How to start a cake business

Starting a business is not an easy process. It takes a lot of time, dedication and hard work to make your dream come true. However, if you set small achievable goals and stick to them, you'll soon be on the road to success.

There are some important first steps you should take:

  • building a brand
  • Market and competition research
  • Decision about the sale of your products
  • Contractor insurance
  • Procurement of ingredients and equipment

OurThe ultimate guide to starting a craft businessis the perfect resource for beginners who don't know where to start when turning a hobby into a profitable business.

What are the legal requirements for a pastry shop?

If you are just starting a cake shop, you should make sure you have comprehensive insurance before you start. The main reason you need insurance is to make you financially liable if a customer has a problem with your products.

Food safety standards are of paramount importance, so proper insurance will help you should an accident happen.

Here at CraftCover we can offer your pastry shop special insurance for cake making, decorating and home baking, perfect for small startups or even larger, more established businesses.

What is included in home insurance?

Our cake making insurance policy covers the two main types of insurance your business needs:

business liability insurancecovers your business against compensation costs in the event that harm or damage is caused to a member of the public as a result of your business activity. The cost of covering compensation could be extremely damaging to your business if you are uninsured.

Product Liability Insuranceincludes the products you manufacture, supply and sell. If a customer encounters an issue that is a direct result of your product and a claim is made, you could be held liable for paying legal fees. With the right insurance, you don't have to worry about expensive legal fees.



(Video) How to sell Homemade Cakes Online [ 10 Steps to Starting a Cake Business ]

Do I need a food hygiene certificate for home baking?

A food hygiene certificate is not mandatory but is highly recommended by the Food Standards Agency (FSA).

EU law requires anyone working with food to have the appropriate training for their position. Although the EU does not dictate what training must be carried out, it is widely accepted that food hygiene certification is a good way to meet these standards.

Which certification should I choose for my bakery?

There are three recognized food hygiene certifications you can earn:

Level 1 Food, safety and hygiene:This is a great introductory food safety course for beginners. It includes cooking and baking at home, work experience in a food environment, and self-development for those interested in working with food.

Level 2 Food, safety and hygiene:Level 2 is a catering course certificate that meets the legal obligation of the grocer to undertake appropriate food safety training.

The course is online and can be taken by anyone who handles or prepares food or works in the management team of hotels, takeaways, bars, cafes, kitchens, etc.

Level 3 Food, safety and hygiene:The Level 3 course is suitable for anyone dealing with the management and/or supervision of food workers in a food environment.

All food operations should ideally have at least one person trained to the Level 3 standard, particularly if they are supervising staff.

Ideally, if you are starting a confectionery business in your own home, you should aim to obtain both Level 1 and Level 2 food, safety and hygiene certifications.

(Video) Top 3 Money Makers for Home Bakers for a Profitable Cake Business

Is a cake business profitable?

Yes, bakery businesses can be very profitable, especially when your products stand out from the competition or you offer unique services like customizable options like shape, size, and flavor.

Even if you don't want to offer custom options, all you need is a few good recipes and some knowledge of what's in demand.

Where to sell homemade cakes

The most common and popular social media platforms to sell your products on are Instagram and Facebook.

Both platforms allow you to create business pages with the option to send customers a direct message for orders or even provide a link in your bio to an order form for customers to fill out.

For personal sales you could go to local markets or fairs. We can also provide you specificallycraft fair insurance, which gives you all the protection you need while selling your products directly to the public.



How to promote a cake business

Again, social media is a great tool to promote your business. Instagram, Twitter, and Facebook are great ways to visually showcase your creations and engage with your audience.

Social media is also a useful tool to interact with your audience by replying to comments, hosting giveaways and even having interactive elements in stories.

You can also post and showcase what services you offer in local community groups. Just make sure the groups allow this type of content before you start posting.

Back insurance with CraftCover

Are you ready to start your cake business?

Get in touchContact our team today and get a quote on your new business venture - we'll make sure all your business needs are covered by our comprehensive craft policy.

(Video) HOW TO START A BAKING BUSINESS! Home bakery tutorial & tips :) :) :) Part one!

Cake baking has become a profitable business for those who have a passion for baking and it has brought immense success to many bakers over the years." } },{ "@type": "Question", "name ": "Can I set up a cake shop from home?", "acceptedAnswer": { "@type": "Answer", "text": "Yes, you can start your own cake shop from home and most cake makers actually use it their own kitchen as their workplace." } },{ "@type": "Question", "name": "What can I make for my home baking business?", "acceptedAnswer": { "@type": "Answer" , "text": "The list is endless when it comes to what to bake for your new venture. A “cake shop” isn't necessarily all cake—some prefer to branch out into other areas.

Just a small selection of our personal favourites:

Brownies and BlondiesCookiesCakepopsShortbreadRocky RoadCupcakesCheesecakeFudgeMacarons

You could even get savory with cakes, breads, pastries and so on." } },{ "@type": "Question", "name": "How do I start a cake business", "acceptedAnswer": { "@type " : "Answer", "text": "Starting any business is not an easy process. It takes a lot of time, dedication and hard work to make your dream come true. However, if you set small achievable goals and stick to them, you'll soon be on your way to success." } },{ "@type": "Question", "name": "What are the legal requirements of a pastry shop?", "acceptedAnswer": { "@type": "Answer", "text": "If you are just starting a cake shop, you should make sure you have full insurance before you start. The main reason you need insurance is to make you financially liable if a customer has a problem with your products.

Food safety standards are of paramount importance, so proper insurance will help you should an accident happen.

Here at CraftCover we can offer your pastry shop special insurance for cake making, decorating and home baking, perfect for small startups or even larger, more established businesses." } },{ "@type": "Question", "name ": " What is included in Home Bake Insurance?", "acceptedAnswer": { "@type": "Answer", "text": "Our Baked Goods Policy covers the two main types of insurance your business needs:

Business liability insurance protects your business against compensation costs in the event that an injury or harm is caused to a member of the public as a result of your business activity. The cost of covering compensation could be extremely damaging to your business if you are uninsured.

Product liability insurance covers the products you manufacture, supply and sell. If a customer encounters an issue that is a direct result of your product and a claim is made, you could be held liable for paying legal fees. With the right insurance, you won't have to worry about expensive legal fees." } },{ "@type": "Question", "name": "Do I need a food hygiene certificate to bake at home?" , "acceptedAnswer": { "@type": "Answer", "text": "A food hygiene certificate is not mandatory, but is highly recommended by the Food Standards Agency (FSA).

EU law requires anyone working with food to have the appropriate training for their position. Although the EU does not specify what training must be conducted, it is widely accepted that food hygiene certification is a good way to meet these standards." } },{ "@type": "Question", "name": "Is a cake shop profitable?", "acceptedAnswer": { "@type": "Answer", "text": "Yes, pie companies can be very profitable, especially if your products stand out from the competition or you offer unique services, such as customizable Options like shape, size and taste.

Even if you don't want to offer custom options, all you need is a few good recipes and some knowledge of what's in demand." } },{ "@type": "Question", "name": "Where do I sell homemade cakes", "acceptedAnswer": { "@type": "Answer", "text": "The most common and popular social media platforms to sell your products on are Instagram and Facebook.

Both platforms allow you to create business pages with the option to send customers a direct message for orders or even provide a link in your bio to an order form for customers to fill out.

For personal sales you could go to local markets or fairs. We can also offer you special craft fair insurance, giving you all the protection you need whilst selling your products direct to the public." } },{ "@type": "Question", "name": "How to Start a Cake Business", "acceptedAnswer": { "@type": "Answer", "text": "Again, social media is a great tool to promote your business. Instagram, Twitter, and Facebook are great ways to visually showcase your creations and engage with your audience.

Social media is also a useful tool to interact with your audience by replying to comments, hosting giveaways and even having interactive elements in stories.

You can also post and showcase what services you offer in local community groups. Just make sure the groups allow this type of content before you start posting." } }]}

(Video) How Start Cake Business?

FAQs

How do I start a cake business from home? ›

How to Start a Bakery Business From Home
  1. Make Sure You're Legally Set Before Doing Anything Else. ...
  2. Plan Your Bakery Menu. ...
  3. Get Your Equipment and Supplies. ...
  4. Price Your Baked Goods to Ensure Profitability. ...
  5. Ready, Set, Bake! ...
  6. Promote Your Home Baking Business.
Apr 16, 2022

Is it profitable to sell cakes from home? ›

If you focus on custom work in your bakery, such as cakes for big events, you can make about $1,000 per month. If you simply do a few individual custom orders a week, you can expect to make approximately $300 a month, on average. If this is your first business, naturally, there will be a learning curve!

Can I run a baking business from home? ›

Starting a home bakery is also a good option for those looking to get started in the restaurant industry, and bakers at home due to coronavirus. Usually smaller in scale than retail or wholesale bakeries, home bakeries allow bakers to sell products that are made in their own homes.

How do you introduce yourself as a home baker? ›

Hi All, My name is Accu. I am very passionate about baking and also a newbie in this field. I started cake decorating as a hobby very recently and doing it semi professionally now..

Do you need a certificate to sell cakes from home? ›

If you want to start a business making, selling, or distributing food, you likely will need to register your business for a food licence. This means that your business is handling and dealing with food safely, and in line with New Zealand's food and safety standards.

What sells best at Bake Sales? ›

What sells best at bake sales? Cupcakes, brownies, and cookies are always winners, but any small, portable baked items are good bake sale ideas. Note that bake sale cookies, cupcakes, brownies, and muffins are easier to package and sell by the piece than are cakes and pies.

How much profit should you make off a cake? ›

Cake Business Profit

A 20% profit margin on baked goods in the cottage food industry is very reasonable. While some experience cake business profits that are even higher for luxury cakes, like wedding cakes, or special order and custom cakes, you can expect to make between 10% and 40% profit if you are doing it right.

Does a baking business require a Licence? ›

Business licenses – In terms of the Businesses Act (1991), where a person is starting a business with the purpose of selling or supplying any foodstuff in the form of meals for consumption on or off the business premises, or any perishable foodstuff, then that business is required to hold a business license.

How to have a bake sale at home? ›

How to Host a Bake Sale
  1. WEEK 1: ORGANIZE YOUR TEAM. ...
  2. WEEK 2: PICK YOUR LOCATION. ...
  3. WEEK 3: PROMOTE, PROMOTE, PROMOTE. ...
  4. WEEK 4: ASK FOR DONATIONS AND STOCK UP ON INGREDIENTS. ...
  5. WEEK 5: START BAKING. ...
  6. WEEK 6: LAUNCH YOUR BAKE SALE.

Can you have a bake sale for yourself? ›

Bake sales are easy to organize, easy on the pocket, and fun to do. With nothing more than a small team of people, a dedication to a good cause, and some planning and baking, you can have a successful bake sale of your own.

How do home bakers get customers? ›

Using social media platforms, spreading business cards and flyers, receiving and posting positive customer reviews, and maintaining a delicious, consistent menu are all ways that will help attract customers to your home bakery. You must ensure that your home baking business is visible to attract and maintain customers.

How do you attract customers to buy cakes? ›

Tips for attracting customers to your bakery
  1. Strengthen the aroma. ...
  2. Offer new products and recipes. ...
  3. Invite them to enter with a funny message. ...
  4. Prepare the products well and explain them. ...
  5. Give free samples. ...
  6. Manage your social media well. ...
  7. Create bespoke merchandising. ...
  8. Conduct small surveys among your customers.

What is the description for home bakers? ›

Home bakers stand out as personalized designers catering to customers' needs by attending and designing each order individually, whether it's related to cake design, icing, pricing, hamper packaging, cake table setup for their grand or small occasion or just giving in to their sweet tooth occasionally.

What to write when selling cakes? ›

Cake Advertisement Messages
  • Your bite of heaven.
  • Delectably delicious in every layers.
  • Happiness in every slice.
  • Savor the sweet surprise.
  • Exceptional taste only for you.
  • Your dream cake unfolds before your eyes.
  • Our cakes have a story to tell.
  • Celebrations made batter and sweeter.
Dec 22, 2021

What should be included in a cake contract? ›

To make it fit your bakery, consider the four basic sections of a cake contract: Event Details. Order Specifics. Pricing and Payment.
...
Next, you should include the specifications of the custom cake, such as:
  • Sketch of cake.
  • Size/ Number of servings.
  • Number of tiers.
  • Cake flavors.
  • Frosting flavors.
  • Fillings.
  • Decorations.
  • Colors.
Oct 13, 2022

Why do most bakeries fail? ›

Marketing and Branding Your Small Bakery

Marketing is one of the most common reasons your small bakery business will fail. You can have the best products in the world, but if people don't know you exist, they will not find you. It is not an “if you build it, they will come situation”.

What are the weaknesses of a baking business? ›

When they are, the margins and profits are potentially high.
  • Staffing Weaknesses of a Bakery. Your employees are the face of the bakery to your customers and employees are one of the many problems encountered in bakery business models. ...
  • Operations and Cleanliness. ...
  • Financial Management Processes. ...
  • Bakery Marketing Challenges.

What level of food hygiene do I need to sell cakes from home? ›

You need to acquire a Food Hygiene and Safety Certificate if you prepare and distribute the food yourself. If you're selling pre-prepared, fresh food (such as ready-to-eat cakes, pies, and other pastries), it's still advised that you take Level 2 Food Hygiene training.

Can I sell cakes without food hygiene? ›

Legally standing, you do not need a food hygiene certificate to produce and sell food items at home, although it is recommended by the Food Standards Agency (FSA).

How do you price items for a bake sale? ›

Try to keep items priced at $1, $2, $5 or more instead of pricing items at $1.50. what local bakeries and grocery stores price similar items for. Your prices should be about the same. And don't be afraid to go a little higher.

How do you calculate the cost of a cake? ›

How much should I charge for my cake?
  1. First, estimate how many hours is this cake going to take - 5 hours.
  2. Then, calculate the cost of ingredients - $20.
  3. Next, determine the labor cost - $20 x 5 = 100.
  4. Add utilities cost - $5.
  5. Sundry cost (small cost) - $5.
  6. Then, calculate the total cost: 20 + 100 + 5 + 5 = $130.
Jan 6, 2012

Is there money in cake making? ›

The answer is YES, you can do it for a living, but you must learn to price you cakes right and value your time. Now pricing, it isn't glamourous or interesting. And to a creative that wants to make cakes it is often difficult and frustrating. But to make a living you need to do this!

Do you have to register as a business to sell cakes? ›

Another regulation when you're starting your cake business is that you're required to register your premises with the local authority's environmental health service at least 28 days before you start trading. This doesn't cost you anything and your registration can't be refused.

What qualifications do I need to run my own bakery? ›

You don't need any formal qualifications to own and run a bakery, but that doesn't mean it's not a good idea to learn a few basic skills and get a bit of experience first.

What are the legal requirements for cake business? ›

Legal Requirements
  • Apply for a food business registration. ...
  • Register as self-employed with HMRC. ...
  • Ensure all staff have food hygiene training. ...
  • Implement a Food Safety Management System (FSMS) ...
  • Comply with allergen requirements. ...
  • Apply for a music licence. ...
  • Comply with the Bread and Flour Regulations (1998)

How do you attract people at a bake sale? ›

Aside from the usual bake sale fare of brownies, cookies, and cupcakes, add bigger and smaller items to attract a wider range of customers. Beautifully-decorated cakes and full-sized pies can catch customer's eyes from afar. You never know who is on their way to a bakery but sees your table first!

How do you package a cake for a bake sale? ›

If you are selling pieces of pie or cake…

put them on small and sturdy paper plates and cover with plastic wrap. Gather all of the plastic wrap on top and cinch with a colorful ribbon to add an extra-special touch. Looking for more ideas?

What can I bake and sell from home? ›

Selling baked goods can be an excellent way to make money.
...
Top Selling Baked Goods
  • Apple pie.
  • Chocolate chip cookies.
  • Bagels.
  • Cream puffs.
  • Cornbread.
  • Blueberry muffins.
  • Whoopie pie.
  • Red velvet cake.

How do you host a bake off? ›

How to Hold a Bake Off
  1. Decide what category of baked goods you will be hosting in your competition; for example: cookies, pies, or cakes.
  2. Find a location for the date of the contest. ...
  3. Determine what the prizes will be. ...
  4. Determine who the contestants will be.
Nov 24, 2014

How much change should I have for a bake sale? ›

A good rule of thumb: what would you pay for bake sale treats to support a good cause, and go from there. Price the treats in increments of 25 cents so that making change is easy.

Is it cheaper to bake yourself? ›

Home baked bread is a great and easy way to cut down on your grocery bill. Making your own bread at home can cost half as much per loaf than what you would pay at the grocery store. And what's even better? It's tastier and heathier!

Where do bakers make the most money? ›

Top companies for Bakers in United States
  • Costco Wholesale. 4.1 $20.69per hour. 14,760 reviews24 salaries reported.
  • Piroshky Piroshky. 3.7 $20.17per hour. ...
  • The Save Mart Companies. 3.6 $18.85per hour. ...
  • Sadie Rose Baking Co. 4.3 $18.76per hour. ...
  • Whole Foods Market. 3.7 $18.61per hour. ...
  • Show more companies.
Feb 28, 2023

Is a home bakery worth it? ›

It all depends on what you're trying to get out of it! If you focus on custom work in your bakery, such as cakes for big events, you can make about $1,000 per month. If you simply do a few individual custom orders a week, you can expect to make approximately $300 a month, on average.

How do I advertise my small cake business? ›

Ideas & Resources for Marketing Your Bakery: Rising to the Occasion to Win More Customers
  1. Smells Are Free! ...
  2. Tempt Your Customers. ...
  3. Entice People through the Door. ...
  4. Offer Up Free Samples. ...
  5. Be Smart on Social Media. ...
  6. Strike Up a Convo or Hold a Survey. ...
  7. Much Ado About Day Old Bread. ...
  8. Start a Website with Online Ordering Functionality.

How do you write a description of a cake? ›

So how would you describe a good cake? A good cake, as our experts put it, must look beautiful and taste divine. It must have a perfect balance of appearance, texture, and flavour. It must have nothing but the best and freshest ingredients, meticulously mixed in the right proportions and baked to flawless perfection.

How much does it cost to start a home cake business? ›

A recent article in an entrepreneur magazine stated that the average cost to start a bakery out of your home is going to be between $5,000 to $10,000 dollars.

How much does it cost to start a cake business at home? ›

It is anticipated that it will cost between $5,000 and $10,000 to get a home baking business up and running with a monthly income from $1,000 to $2,000.

How much does it cost to start a cake business? ›

The average startup cost to open a bakery is between $10,000 and $50,000. This is lower than the average cost of opening a restaurant, largely due to the reduced need for employees, seating, and inventory for most bakery businesses.

How do you calculate baking cost? ›

Your prices should cover your cost of goods sold, or COGS, at the very minimum. The formula to calculate your COGS is: Cost per serving + Labor cost per item + Variable Costs + Fixed costs + Startup costs.

How much profit should you make on a cake? ›

A 20% profit margin on baked goods in the cottage food industry is very reasonable. While some experience cake business profits that are even higher for luxury cakes, like wedding cakes, or special order and custom cakes, you can expect to make between 10% and 40% profit if you are doing it right.

How much does a home bakery owner make? ›

The average profit that can be earned from a baking Business running on a small-scale could be around 60,000 to 1.2 Lakhs, per month. The profit earned would depend on the number of bakery items that you deal into, if your product dealing is multiple, then you can even earn more than 2 lakhs a month.

What are the 3 types of cake? ›

Thus, cakes are either: SHORTENED (BUTTER OR OIL) CAKES or UNSHORTENED (FOAM) CAKES. Chiffon cakes make up the third category, but here they're included with unshortened(foam) cakes.

How much should I charge for cupcakes? ›

But if you still need a starting point, try this: Set a base price of $2 to $2.25 for a standard-size cupcake. Of course, this depends on your ingredients and your market. If you create higher-end cupcakes in a major metro area, you probably can (and should!) charge more.

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