What Are Cottage Food Laws
Cottage food laws regulate whether or not you can produce low-risk foods in your home for sale. Often, these foods include certain baked goods, candies, pickled products, dry goods, and canned foods. Cottage food laws are designed for very small businesses, with many states putting a cap on how many thousands of dollars in revenue your business can make while still considered legal.
Not only do these laws limit your sales and what kinds of foods you can make, but they also limit where you can sell your products. Many states specify legal venues, which may include farmers markets, events, roadside stands, online, or even your home.
This being said, some states have strict limitations on these venues. For instance, what may be legal to sell at a farmers market in one county may not be legal in a neighboring county. Each time you sell your goods at a new venue, be sure to research whether or not it is prohibited first.
Additionally, home bakeries may be restricted in certain jurisdictions even within states where they are legal. It is imperative to check your local zoning laws so that you are not fined or shut down for opening a baking business in an area that is zoned for residences.
Cake Making Business: Investment
To start this business, some essential goods, machines, and equipment have to be taken. It will cost around 50 to 70 thousand rupees. If you have rented a shop, then you have to get all kinds of licenses attached to it. In total, an amount of about Rs 1 lakh will have to be invested.
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Profitable Bakery Business Idea: Not all are aware that the demand for baked items has witnessed a steady increase in
Position Yourself Well In The Home Baker Space
Now this one is the most important one, and the most difficult one too. When I say difficult, I want to talk about the patience and dedication it needs for you to position yourself and start attracting customers.
When you start your business, it is obvious that you need customers, you crave for them. You want the customers to keep calling you on your phone so that you can make money. In the quest of acquiring customers, the position part is often looked upon.
But without positioning yourself you wont be able to attract right kind of audience. Nobody knows you, they do not know what you do, and they have no idea why should they choose you on others. And you expect them to come and buy from you.
You will need to spend some time on social media to educate people on what you do and why you do what you do and whats in there for the customer. And it does not happen overnight, you can to constantly keep telling stories to people so that they are able to recognize you and your band and associate you with the USPs you have to offer and thats when you will see the desired customer calling you up.
Position yourself well for all of it to work in your favour.
Now with all these tips you will be able to open hour dream home baking business in India and make it successful!
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How To Open Your Cake Decorating Business
As you get ready to open your cake decorating business, its time to choose your niche or basic concept. To stand out in the market, its a good idea to have a unique specialty. It doesnt have to be outrageous, but something that youre really good at and want to be known for.
Here are some ideas for brainstorming:
Next, youll need to work out the logistics of how youll run your business. Heres a curated list to give you a roadmap to get started:
When youre starting your own business, there will be challenges and ups and downs. Keep in mind that this business was born out of a hobby you love, so if you persevere and plan carefully, success is possible. Passion matters. It could be what sets you apart from the others in the cake business.
With the right baking equipment, niche, and business plan, youre off to a great start.
Registering Your Cake And Baking Business
You need to register your new cake business with your local authoritys environmental health service at least 28 days before you start trading. It doesnt cost you anything and your registration cant be refused. An inspector will come to your home to check your food preparation area. Dont panic though, they are unlikely to just turn up at a personal address and are more likely to arrange a time to visit.
Its this inspection that will determine your food hygiene rating, so make sure your records and documentations are as good as they can be.
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Open A Business Bank Account
Keeping your personal and business finances separate is really helpful to keep track of spending and income. Most business accounts charge a set fee per month so do your research and find the best value business account for your business.
And thats the set up side of things covered. Its not fun and exciting like covering your first cake with sugar paste or achieving your first perfect drip with ganache. But its necessary for a successful business.
In my next post Ill be talking about the next steps for starting up a business from designing your business cards to spreading the word about your business.
If theres anything Ive missed, please comment below and Ill do my best to point you in the right direction.
Until next time, stay sweet
Helen
**This blog is based on experience and is for information. It is not legal advice. Always seek professional advice if youre unsure of anything and contact the relevant institutions and organisations for the most up to date information and guidance.**
Work On Your Cake Business Plan
A business plan is very important to run a successful business.
And in case youre wondering:
What is business plan?.
In a nutshell, this is simply a guide that is specially prepared for you to ensure you start and run a successful cake business.
But:
I have seen successful business owners without a business plan. so its not completely true when some expert
say you cant run a successful business without a business plan.
However, you cant run a successful business on a LONG TERM without a business plan.
Ill explain.
I know people who ran successful businesses without a business plan, but after they died, the business crashed
There was three of them i was pretty close to.
I recollect one was into pizza business, another ran a grocery shop while the last one owned a modeling agency.
In essence, a business without a business plan is likely to stop functioning when the owner or founder stops functioning.
Why? You may wonder.
The answer to that is simply because the owner died with all the information and experience needed to keep the business moving.
Had it been those ideas and strategies the owner has been using to succeed in the business where documented, it possible for someone else to pick up from where he left off
and know the next line of action to take to keep the business moving.
So as you are looking at the possibility of starting a cake business from home
If you answered YES, get a business plan and have your strategies and next line of action documented.
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How Much Do I Make With A Cake Business
Its a very irregular income.
People seem to get married in batches, so I might do five wedding cakes one year and then none the next. I once created two wedding cakes in a month and made about $400.
Last year, I was in the middle of a horrible pregnancy, so I only did a few cakes and made about $500. I could have done several more and maybe made $1,200 if I hadnt been fainting all over the place.
Ive never made a killing from cakes I have too little time because of other side gigs and too many children to take on as much work as Im offered.
But my kitchen table currently boasts a simple one-tier fruitcake a 100th birthday cake for a friends fathers coworkers mother which is about to net me a profit of $120. Not too shabby.
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When Will You Make It
What is the time frame for purchasing a cake? Will it take you 2 days to make and deliver the cake? Will you need a week? Its important that you determine your time frames before offering your cakes for sale.
You dont want a customer calling you at 6:00 pm on a Friday night needing a cake for a 1:00pm birthday party on Saturday. Rushing through cake orders is no way to grow your business and itll only leave you feeling frazzled and dissatisfied.
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Home Bakery Market Research
Your target market, or the population you are catering to, is one of the most important aspects of your business plan. With various types of bakeries to choose from, you have to find your niche while also complying with the product and venue restrictions that your state has in place.
Here are some example target markets and suggestions for best capturing their business. Before you try to sell to these markets, be sure to check that they are legal venues within your home bakerys jurisdiction.
Is A Cake Business Profitable
Yes, cake making businesses can be very profitable, especially if your products stand out against competitors or you offer unique services such as customisable options like shape, size and flavour.Even if you dont want to offer custom options, all you need is a few good recipes and some knowledge of what is in demand.
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Can I Set Up A Cake Business From Home
Yes, you can set up your own cake making business at home and most cake makers do actually use their own kitchens as their place of work.There are endless possibilities for cake making business, and they dont solely have to be cakes. You could make and sell a variety of sweet and savoury goods, as long as you make it clear in your marketing what kind of home baking business you are in order to attract the right customers.There are so many options out there for selling baked goods, so its important you find what you love to bake before you start selling.If trading from home, you would need to let your household insurers know that you are doing this. Failure to do this may result in a household claim not being paid because business activities havent been declared.
Register With Environmental Health
This sounds WAY scarier than it actually is. Simply contact your local authoritys Environmental Health department and let them know youre setting up a home-based baking business. Its free and theyll let you know the next steps. As a low-risk business, youll be able to start trading as soon as they say yes and theyll arrange for an officer to visit your premises as soon possible.
Done!
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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:
Do I Need A Food Hygiene Certificate For Home Baking
Having a food hygiene certificate isnt compulsory, however, it is strongly recommended by the Food Standards Agency .EU law states that anyone working with food must have the appropriate training for their position. Although the EU doesnt state what training must be undertaken, its widely recognised that food hygiene certificates are a good method of adhering to these standards.
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Price Your Baked Goods To Ensure Profitability
Pricing your baked goods takes much more than simply looking at what your competitors charge and doing the same. Your baked goods must cover your costs of ingredients, labor, and additional overhead like business fees and farmers market fees, with some still left over for profit. But how do you figure out all of those numbers?
Who Is It For
You sort of answered this question in the What are you making? section, when you decided what type of cakes to make. But, now is the time to flush it out.
Its time to really get down to the nitty-gritty of your customer. Its up to you to figure out exactly who you want to buy your cakes and this of course, depends on what kinds of cakes youre selling.
Will you market to Moms of small children? Brides? People with special diets? Anyone that wants to buy a cake?
The answers to all of these questions will depend on what type of cakes you are making, so its imperative that you decide that before you move forward.
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Create An Online Store
Running your own online store allows you to start an entirely independent business and gives you complete control over how you run it and how much money you make. It is also easier to set up an online storefront than a physical one.
It will cost you less than half of the money and take the same amount of time as making a cup of tea. An online store allows you to sell your products to a large number of people easily. With an online store, even audience who cannot walk into your store due to physical distance can order from the comfort of their homes and enjoy your creations.
There are many eCommerce platforms that will help you set up an online store. What eCommerce platform you choose will largely depend on the present and future needs of your business, the level of technical expertise you have and what functionalities are essential to you.
If you want to choose an eCommerce platform that is highly intuitive to use, has no learning curve attached and requires no technical expertise to us, Dukaan is the perfect eCommerce platform for you. The platform allows you to set up a mobile and desktop-friendly online store in a few easy steps, and under a minute.
It offers easy customization so that you can design your online store in sync with your brand. You get several templates to choose from. The platform also offers tons of free tools and plugins for marketing, customer management, order handling, etc., making you and your business highly efficient.
Tips For Growing Your Cake Business
Once you start, there are many great ways to grow your cake business. Here are a few tips:
1. Expand your services by offering classes or tutorials on cake baking and decorating.
2. Create an online presence with a website and social media accounts to showcase pictures of your cakes and advertise special offers.
3. Partner with local businesses to provide custom-made cakes for their events or celebrations, such as birthday parties and weddings.
4. Stay up-to-date on trends in the baking industry to stay ahead of the competition.
5. Attend workshops or conventions related to cake business management and marketing strategies to learn more about the industry
6. Develop a comprehensive business plan detailing your goals and strategies.
7. Invest in quality equipment and ingredients to ensure the highest quality standards for your cakes.
8. Offer discounts or loyalty rewards to customers who purchase multiple cakes or order regularly from your business.
9. Create a unique brand identity with an eye-catching logo, slogan, and website design to stand out from the competition.
10. Establish relationships with local vendors to access fresh, high-quality ingredients at competitive prices.
11. Invest in marketing materials, such as flyers and posters, to promote your business in the local community.
12. Focus on customer service by responding quickly to inquiries and delivering cakes on time for special occasions.
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Go To A Professional Workshop Or Class
A lot of home bakers start baking by following YouTube videos and trial and error. But if you are looking to become a commercial home-based baker and serve real customers, then its recommended to attend professional workshops or classes from renowned academies or established top bakers or cake artists. Make sure that you have got the right skills to serve better than bakeries. If your delivery will not be as per the client’s expectations, then it will lead to a loss of goodwill and will hinder your business progression.
Some of the academies or established professionals you can refer are:
Have A Defined Friends And Family Policy
Before you sell your first scone, be aware that friends and family will probably ask for a discount.
When youre selling cakes and cookies as a side gig, its fine to give the neighbor or the PTA president a discount, but when you start your business, its different. All those wonderful people who previously bought cakes off of you for the cost of ingredients are going to need to be re-educated about what youre doing now,
Green says. Those who really love and support you will also understand your need to feed your family and pay your rent. If you want to offer a 10 percent discount to friends and family, thats fine, but whatever your policy is, make sure its consistent.
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