Get Your Recipes Right
Cakes are the star of the show thats the reason people order cakes from home bakers so that they can customize it as per their preference. Choosing the right cake recipe, therefore, is vital to the success of your home baking business.
Test out your recipes on family and friends. Ask for their honest feedback so that you can make necessary improvements before advertising. Repeat this process until your cakes are the best they can be and becomes the most delicious cakes youve ever tasted! This will be the key to a successful and long-lasting home baking business.
When choosing your basic cake recipe, try to find a simple and proven one to work. Here are a few cakes suggestions to get you started:
Get The Right Food Safety Training
Even if youre a master baker, you might want to brush up on your safe food preparation and hygiene rules.
To be sure, you might like to do a food hygiene course. Most of these can be done online, for example Food Safety Level 2 is a widely recognised and respected course, and is relatively cheap too at just £10+VAT.
This is completely optional but worth doing if you have time.
Gather Your Kitchen Equipment
To start a successful cake making business from home, you need the right kitchen equipment.
If you love baking, chances are that you already have some equipment.
Either way, some of the essential kitchen equipment you need to purchase for your business include:
- A nice oven
You also need some decorating kit with food colors, butterfly cutters, chocolate,
Edible flowers, etc.
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Where To Sell The Cakes
To a big extent, that de[ends upon the cottage food laws in your state. IF you are trying to stay within the cottage food / home-based business regulations in your state, then there are usually limitations on where you can sell. Typically, that means direct sales, no cross-state lines, or mail order. Most states allow you to deliver the cakes to the customer some do not. Perhaps conisder a stall at a local farmer’s market? Check with local cafes and stores to see if they’ll sell your cakes. But maybe your state will allow you to sell them through the internet and mail them. Again, gotta check this out first
Register Your Business & Procure Licenses
It is essential to register your cake shop if you plan to run a legally compliant business. Talk to the local competent authority or a registered agent and select the best-suited business structure.
For example, if you are planning to start a cake shop in the United States and looking to protect your personal assets, it is best to form an LLC.
Before opening the store, check the licensing and permission issues. Generally, it varies from state to state. Check, with local competent authorities whether any type of specific permissions is required for shop operation and kitchen operations.
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Get Your Online System Up And Running
Once you’ve done the planning it’s time to build your online presence. Start with a website or order form. Jonathan believes your website shouldn’t be too fancyâall it needs is enticing pictures of your items and a simple way for customers to order.
“Simplify the online experience for your customer as much as possible. When it comes to setting up a site, less is more. I really can’t reiterate that enough. Keep things simple and approachable. Buying should be effortless. “â Jonathan Israfil
Customers need three things from your website: to be able to browse your menu, see your prices and make orders. For business owners, you need to make sure your web platform accepts payments and allows you to quickly manage orders and inventory.
We might be biased, but you can easily do this with Paperform. In minutes you can upload images of your baked goods, set prices and build a beautiful order form for your bakeryâit’s simpler, cheaper and much faster than building a website. It’s also easier to maintain and keep updated with your latest products.
Dont Forget About Marketing
Your initial marketing strategies will hopefully result in a steady stream of repeat customers, but that doesnt mean you should let up on your marketing efforts.
Try new marketing tactics. Buy ads on social media, participate in charity events, and hand out business cards as often as possible. You should always be looking for new ways to get your name out there, Green says.
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Use The Power Of Online Advertising
Youâve made it this far. Customers know who you are, what you sell and why they should buy from you. Itâs time to expand your online presence to drive greater web traffic, engagement and ultimately, more customers.
“Don’t be afraid to advertise. The online world is much bigger than the physical one, and you’ll be able to draw customers you just wouldn’t find otherwise. Advertising doesn’t have to be complicated, just think of it as helping customers find you.”â Jonathan Israfil
Digital marketing is crucial for small businesses. You can get caught up figuring out what channels to focus onâfrom SEO to Google ads, but the right marketing strategy is a bit like the right exercise programme: the best one is the one you can stick to for the long run.
With that in mind, social media marketing can be one of the most effective channels for online bakeries. It gives you an avenue to directly interact with customers, while showcasing all your delicious products to a massive audience.
This is a strategy Kerbside Creamery has perfected. Their Instagram page is a lead magnet. They grow their customer base by sharing simple, eye-catching pictures of their moutherwatering treats, running giveaways and highlighting customer orders.
Funding Your Cake Baking Business
The best thing about cake businesses is that when youre starting out, you dont really need any formal funding. People bake for fun, you can get all your ingredients at the local supermarket for relatively cheap this is perhaps one of the reasons these businesses have boomed over the last few years.
Having said this, you might need to spend some cash getting the right tools for the job, mixers, large enough ovens, decorating tools etc. are all worth considering, but generally speaking, most people have what they need already at home.
You may need to apply for some funding as the business grows, this might be to move to new premises or to finance new equipment.
Well discuss this in the growth chapter at the end.
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How To Start A Legal Cake Business In Australia
From registering a business name, insurance, food license and tax what do you need to know for starting a cake or cupcake business in Australia.
I remember when I first thought about starting a home cake business and the sleepless nights thinking about the flavour combinations and the style of cupcakes I wanted.
The excitement to just GET STARTED was overwhelming. And I couldnt wait to get to my first market!
I had just moved back home from living in England for a year. I had been working as a carer for people with disabilities and worked in the office as an admin assistant when I wasnt caring. It was hard work. From being on call to go into care work and being the office shit kicker to listening to the big bosses discussions on how the work wasnt that hard when they hadnt done a days support work in their life was tough. I had been in the industry for years and grew up with a brother with a disability.
To be honest, it felt like bull.
I was over worked, under paid and definitely not appreciated. And I was sick of people telling me what to do.
So, when I decided to leave and go home I decided I did not want to work for someone else for as long as possible! Making money for other people seemed pointless and a waste of time.
How did I get started?
I got a $1000 loan from my Gran for a food licence, insurance and packaging. I started testing recipes and as soon as I had the food licence I was at the very next markets!
All I kept thinking was: what am I going to do!?
Seven Steps To Get Started:
Step 1 Permits & Regulations
Seek advice from your local authority to any food-related permits or special regulations you need to operate this business legally from your home. This will especially apply to your kitchen where it may have to be modified. Further inspections may occur from time to time to ensure that you are complying with the regulated health codes.
Step 2 Business Legalities
In the UK you must register your business with the Inland Revenue within three months of your business launching. In the States you need to register your business, and business name, immediately with the IRS and gain a business tax registration code. Please check your individual State or country to see the requirements in your town.
Make sure you look into all other business legalities such as Insurance, setting up a business bank account and health & safety.
Step 3 Stocking Up
Make sure your kitchen is fully equipped and you have all the major cake decorating ingredients in this includes cake boxes.
Step 4 Portfolio/Website
Create a portfolio of your cake designs and put enlarged photos in a photo album. Keep adding to this portfolio to show potential clients. You may want to think about setting up a small website to show-case your cakes and provide pricing or at least contact details. You can use your website address on all your other advertising materials.
Go here for more information on . You would then end up with a domain such as www.facebook.com/noveltycakes
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Research Your Industry And Market
Do some research work in your industry and market to know what type of cakes are in great demand or those that other cake bakers arent making.
You can visit several cake shops and eat different types of cakes to get the taste and flavors.
Once you have decided what type of cakes to bake, proceed to the next step.
Protect Your Intellectual Property With Trademark Copyrights Patents
If you are running a franchise cupcake business model, it is compulsory that you file for intellectual property protection. It will become handy and very useful as your cupcake brand begins to expand far beyond your reach. The truth is that even if you are starting your own bed and breakfasts from the scratch, you would still need to secure your brand name from an intellectual property clearinghouse.
It is difficult to build your cupcake business from the scratch, and watch the brand name slip off your hands. Even if you intend buying a cupcake franchise, you would still need to contract the trademarks and service marks from the franchising company.
If you want to register your trademark, you are expected to begin the process by filing an application with the USPTO. Please note that the final approval of your trademark is subjected to the review of attorneys as required by USPTO.
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Hire Employees For Your Technical And Manpower Needs
Aside from relevant software applications such as CRM software applications, accounting software et al and perhaps POS machines, there is hardly any technicality involved in cupcake business. When it comes to operating a cupcake business, it is important to ensure that you acquire brand new bakery equipment. As a matter of fact, kitchen utensils and equipment are affordable.
Some of the kitchen / bakery utensils and equipment that you would need to launch your bed and breakfasts are
- Industrial Oven, Microwave Oven, Fridge, Pans, Cutleries, tableware, sound system, flat screen TVs, and POS machines
If you have the required finance, it is to your advantage to acquire a property or lease a facility to be used for your cupcake shop it usually gives you the freedom to design the facility the way you want to it to be. But if you are low on cash, then you dont have any option other than to rent a facility for your cupcake shop.
As regard manpower, if you are running a small scale cupcake business, you may not need full time employees if you have family members that are willing to lend helping hands. But a standard cupcake shop would usually hire Shop manager, professional baker, accountant, sales rep, delivery drivers, cleaners, and security men. On the average, a standard cupcake shop would have between 5 and 10 employees.
The Service Delivery Process of the Business
Find A Business Mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
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What Is The Growth Potential For A Cake Business
The baking industry exceeded $50 billion in sales in 2016, with those numbers expected to grow exponentially in the coming years. Most cake business owners start out small, working out of their homes or a small public kitchen. Many choose to remain small and local, content with servicing the needs of their community. The opportunity is there, however, to expand your cake business based on your personal and professional goals. Once youve established a name in the industry, you could share your secrets with other aspiring bakers, opening additional locations in your area, or on a national scale.
How To Start A Cake Business From Home
Cake decorating is fun!
And it gets even more fun when you can profit from it with your own home cake business.
Nearly all cake decorators start out as a hobby, some people start cake decorating because they have young children and they start making specialty birthday cakes for them.
Then at the birthday party all the other moms see their wonderful masterpiece and before they know it, they have two or three new orders.
Or you may not have children. You maybe just took a cake decorating class for enjoyment, found you had a talent in it and then the orders came flying in as per a similar example above.
Whatever the reason, youre hear because you enjoy decorating cakes, you have a talent for it and now youre thinking of making this hobby into a business, whether that be a sideline or a full-time business.
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