How to Start a Baking Business
You Can Turn Your Passion for Baking into Baking business.
Baking business in most cases comes as a result of passion for baking. Do you enjoy baking? Do you have passion for baking? Have you been baking for friends and relatives for their birthday parties for free? Do people enjoy your baked goods?
If yes, it is time to consider starting a baking business. For some people, baking business can be challenging. But for somebody who has passion for baking, starting baking business will seem like a hobby. However, it is good to mention that starting a baking business is slightly different from engaging in baking as a hobby. When you bake as a hobby, there is tendency you will not have profit as your objective. The satisfaction you derive is the fulfilment that you are able to bake nice things that others enjoy. If you want to start a baking business, you need to change your approach. The business is now profit oriented. To start a baking business, you need to take the following steps:
Business Plan
Before you start baking business, ensure you develop a business plan. When you do this, I will say you are ready to turn your passion into a small business. If you don’t know how to prepare one, you can contact a business consultant to assist you. But note that it is not a good idea to completely delegate the preparation of your business plan to another person without your input
Read Also:How to prepare a good business plan.
Register your business
You should give your business an identity by choosing a business name and get it registered. The process for business name registration may differ from country to country. You might require a lawyer to advise you on the legal structure that is appropriate for your baking business.
Open a bank account
The next thing is for you to open a bank account for your baking business. This can be either savings or current account. For corporate account, it is better to open a current account so that you can issue and receive cheques from/into the bank account.
Obtain Permits
Baking is a home based business. Nevertheless, if you like to start a baking business at home, you may need to obtain permits and insurance before you can be allowed to start at all. Also, production of food items is always regulated. Ensure you obtain approval from the regulatory authority.
Conduct market research
Research your market to identify your potential customers and the market size. This will also help you to direct your marketing efforts to them when you eventually start your baking business.
Purchase Equipment
If you are going commercial, you need to buy the basic equipment such as baking oven, frying pans, refrigerator, display cases etc
Decide on baked goods to sell
There are different baked goods in the market but you need to decide on the ones to sell. This should be a function of what you are good at and what customers are willing to buy. Select your recipes carefully and be consistent with it. Your recipes will create a brand for you. When customers buy and eat your baked goods and are satisfied, they will come the next time. What will keep them coming over and over is the consistency of your recipes.
Charge appropriate price
To be able to charge appropriate price, you should have a way of tracking all your expenses. Your price should cover the costs and the profit you expect to make on your baked products.
Market your baked products
One effective way of marketing baking business is by taking pictures of your baked products and display them on Facebook, Instagram or your business website. You can also print flyers, banners to create awareness in your neighbourhood. Don’t neglect the word of mouth too.
Read Also: Home Based Business Guide – Work from Home