Six Things You'll Need to Start an at Home Baking Business

Kandace Heller

December 06, 2013

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For many food lovers, opening a home-based baking business is a lifelong dream. If you are an aspiring entrepreneur, you know the process is both exciting and challenging. Before you set out to convert your kitchen into a commercial baking space, read these six tips for ideas on what you’ll need to get started.

1. Business Plan

First, you should draft a detailed business plan. Business plans are critical tools designed to help you stay focused and organized. A typical format will include an executive summary that functions as an overview of your company. A plan should also include information about your business’s organizational structure, a market analysis and your financial projections. A big part of your plan is your budget. You need to make sure your finances are in order before getting started, otherwise you may get stuck. Research places you can buy your ingredients and supplies in bulk to save money.

2. Licensing

Next, you’ll need information about federal and state regulations, licenses and permits. Home bakeries often require health inspections and certifications. Diligent research into these issues is necessary to ensure your new business will comply with all state, local and federal laws. Once your business is legal and legitimate you will be prepared for growth.

3. Branding

Staying consistent with your naming and branding is very important. A company name should be snappy and memorable. Your customers will need to recognize you in person, on the web, on social media and through your advertising campaigns. Choose a logo that you can stick with for years to come. You may want to have a graphic designer or an artist help you come up with something unique and memorable.

4. Equipment

Obtaining commercial equipment is just as important as formulating a business plan. Without the right tools, your bakery’s productivity could quickly decline. For example, consider purchasing a professional single wall oven to ensure that you are able to fulfill large orders and maintain good productivity. Keep an oven’s size, capacity, performance, safety features and insulation in mind when choosing the right one for your business.

5. Research Skills

To stay ahead of your competition, always keep up with the latest trends in the baking industry. Keep active subscriptions to trade and product magazines to make sure your bakery stays efficient and up to date. Keep an eye on what other popular bakeries are trying and create your own unique items to compete.

6. Remodeling

Having space to work and store products is crucial to staying organized and functional. Consider investing in kitchen remodeling to make sure there is enough space to prepare your baked goods and store ingredients, tools and equipment.

There are many important factors to consider when starting a home-based bakery. The above six ideas will give you a good place to start. With a solid plan and a little organization, you can achieve your dream of running a profitable and successful baking business in your own home.