How To Start Your Own Home Baking Business
Do you really love to cook and bake? More specifically, does everybody ask for your recipe after tasting what you’ve made? Do your goodies sell out before anybody else’s at local bake sales? Most of all, do you enjoy creating recipes in the kitchen? Are you in need in money even as you want and need to be at home with your children? If you answered yes to at least two of the above questions, then maybe you should start a home baking business.
We all love homemade cakes and cookies, but we do not all have time to make them ourselves — especially when you consider the responsibilities that we have. We run from work to the store to school meetings and other things, and besides, many people simply don’t like to bake. This is where you and your home baking business come in. So… how do you get started?
Find a need to fill
That, after all, is what being in the business world is all about, and pinpointing it will make your marketing easier. Make this decision as early as possible so you can save much time and streamline your efforts. For instance, are there…
- busy mothers who prefer their children to eat nutritious snakes with no preservatives?
- people who often throw parties and want to have pastries, appetizers and the like brought in to them?
- offices that would like to have treats brought to their workers regularly, perhaps at the end of the week?
- social groups that serve tea and coffee at their meetings?
Knowing the groups to which you are marketing can enable you to develop your recipes. It will also give a purpose to your business, fulfilling the needs of people who are anxious to buy what you have to offer.
Look at the competition
- Does any other business serve the same group that you have chosen?
- If so, what prices do they charge?
- Do people like the quality of their products?
- Is there room for more than one business serving that group?
- Are the prices you intend to charge reasonable for this sort of market?
Determine the cost of producing
Make a list of the ingredients you will be including in your recipes and determine their cost. If, for instance, you will be selling cookies by the dozen, how much will the ingredients for a dozen cookies cost? You will also need to figure in the cost of packaging the goods. Plastic, Styrofoam, cardboard and other packaging materials all cost money.
What prices will you charge?
As a rule of thumb, use a percentage food cost to determine prices. The percentage should be between 25 and 35 percent. Thus, if it costs $1.50 to make a dozen cookies, divide by 0.3 and you get $5, which is the price you should charge, with a profit of $3.50 per dozen.
Focus your efforts on your business success
Start-up costs for home baking businesses are relatively low, and you can set your own schedule. Here are three steps to consider:
- Make a recipe about which everyone will talk.
- Customer care is important.
- Decide how much you want to work.