How to Start a Baking Business Out of My Home
Starting a Food Business
By Jordan Meyers Updated April 09, 2019
How to Start Up a Catering Company
What Licenses Do I Need for a Home Cooking Business?
How to Start a Private Bakery
Zoning Laws for Home Businesses
How to Run a Small Business From Home
If you enjoy baking, you may gain both fulfillment and significant income by starting a baked-goods business in your own home. Before you get started, however, it's important to research the laws in your jurisdiction. Some jurisdictions prohibit the selling of goods baked in residential kitchens. If you get a green light, however, a careful plan may help you realize financial success in your home bakery.
Make Sure Your Kitchen Is Legal
Check with the zoning board in your city, town, or county before you move forward with an in-home baked-goods business. You may need special permission to run a business in a residential area. You should also contact the department of licensing and inspections, business regulations office, or health department in your city or county to learn whether operating a food preparation business in your home is legal. Some cities or towns may not allow you to prepare food for sale in a home kitchen.
Get Approved by the Health Department
Ask a licensing or health department representative whether you will need to renovate your home kitchen in order to start a baking business. Each city or town may have unique standards for home-based food preparation businesses. The FDA has a guide for what is required at the federal level for starting your own food business (see Resources).
Apply for a business license if one is required in your city or town. Many jurisdictions require all business owners to obtain licensing before they commence operations. A business license is typically separate from licensing and permits for preparing and selling food. You may also need to obtain a license or permit to run a food preparation business from your home.
The requirements vary from jurisdiction to jurisdiction, but may include a food handler permit and food preparation license. You will likely have to pay a fee and complete an application to secure the licensing and permits you need. The health department may also inspect your kitchen as part of this process.
Get Business and Liability Insurance
Meet with an insurance agent to determine the type of insurance you will need to run a baking business out of your home. An insurance agent may recommend that you maintain liability coverage to protect your business and other assets in the event someone is sickened or otherwise injured by your baked goods.
Get Your Recipes Ready
Create an initial list of baked goods to sell. You may start out with several baked goods, such as pies, cakes and cookies, and then expand your business to include such things as specialty breads and croissants once you've generated interest. Prepare a menu and price list. Include the costs of ingredients in your prices as well as compensation for your labor.
You may also obtain prices for similar items from other baked-goods businesses and use them to price your goods competitively.
Get Your Ingredients and Materials
Purchase materials for packaging your baked goods, such as boxes, Styrofoam or cardboard containers, bags and cellophane. You will also need to create labels that indicate the nutritional content and ingredients of the baked goods you sell. Make sure the packaging supplies and labeling methods you choose meet the guidelines set by your local health department and the Food and Drug Administration.
Find ways to grab the attention of potential customers. You may start by asking your friends and family members to tell others about your home-based baking business. You may also create a website and a blog to spread the word and become adept with making posts on social media. Fliers and newspaper advertisements may prove helpful as well.
In addition, you may sell your baked goods at special events, and approach restaurant owners and event planners with your marketing materials.
Entrepreneur: Bakery
FDA: General Food Labeling Requirements
Mother Earth News: How to Start a Home Bakery of Your Own
Check with the zoning board in your city, town, or county before you move forward with an in-home baked-goods business. You may need special permission to run a business in a residential area.
Jordan Meyers has been a writer for 13 years, specializing in businesses, educational and health topics. Meyers holds a Bachelor of Science in biology from the University of Maryland and once survived writing 500 health product descriptions in just 24 hours.
How to Start a Baking Goods Business
How to Start a Pet Treat Business
How to Start an Online Cupcake Business
How to Sell My Food & Catering
How to Start a Business Making Fudge
How to Start a Dog Treat Company
How to Certify Your Kitchen for a Home Bakery
How to Launch a Food Product From Scratch
How to Start an In-Home Craft Business
1 How to Start a Baking Goods Business
2 How to Start a Pet Treat Business
3 How to Start an Online Cupcake Business
4 How to Sell My Food & Catering