Thinking about starting your own baking business? Read this first!

Many of us dream of doing what we love and getting paid for it, but most of us don’t have the opportunity. However, if you love to bake, you can start small and gradually build up. For today’s entrepreneurs, starting a home-based baked goods business is a bit easier than some other options. If you keep a few crucial things in mind, you can turn your love of baking into a successful career.

Start Small

Opening up a brick-and-mortar bakery isn’t the best way to launch your baking career unless you have unlimited time and capital. Baking and cooking delicious recipes from home and selling either directly to consumers or through a local business is your best bet. Only commit to baking what you can realistically provide by baking at home during the time you have available. Baking cupcakes for an anniversary party for 50 people is fine; baking enough pastries for a wedding with a guest list of 350 people is probably a bad idea. Starting with small orders and selling them locally will establish your reputation. You’re more likely to succeed in the long run if you build your business gradually.

Understand Your Employment Situation

Until you’ve established your baking business and turned a reliable profit, you’ll probably want to keep your current job. If you have a strict, in-office, 9-to-5 job, don’t overextend yourself by accepting orders that you can’t prepare in the evenings or on weekends. Scheduling time to fulfill orders is a bit easier for those fortunate enough to work from home or who have freelance jobs such as dental office design. Be sure to consider how much time you realistically have without sacrificing your current income. You don’t want to lose your job before you’re ready to leap into the full-time baking business.

Know the Law and Comply

Making cookies for the local elementary school bake sale doesn’t require following specific regulations or licensing. Once you start selling baked goods for personal profit, you need to consider the state and local regulations around food preparation. Contact your state’s health or commerce department to find out what type of licensing you may need. Many states require that you have separate, dedicated equipment and supplies for anything you sell. In other words, you can’t use the same utensils for an order you’re selling that you use to prepare food for your family. Compliance with all regulations is essential, as non-compliance can lead to fines or a shut-down of your baking business.

Create a Business Plan

The most successful businesses start with a solid plan. If you’ve never created a business plan, take a few online courses for budding entrepreneurs or talk to someone who has started their own business. A basic business plan should include a description of your product or service, a market analysis, sales strategy, and business structure. Use this as a template to guide you as you grow. You can also use a business plan to apply for loans and find investors.

Above all else, be sure you are passionate enough about your baking business to weather any setbacks. There will be highs and lows as you expand your business. The rewards can be amazing, but it may take some time to get there.