How To Make Money With Home Parties – What? Would you like to learn how to make extra money by starting a home baking business? Here are the supplies needed to start a bakery, food rules, tips for pricing your baked goods, and more. Please enjoy this guest post from Denise Treco. Denise ran a home bakery as a hobby, and today she’s here to help you learn how to start a successful home baking business too. Enjoy!
If you love to bake, maybe you had a friend or family member who told you you should open a bakery.
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Maybe that’s your ultimate dream—whether it is or not, there is a way to take your passion for baking and turn it into a profitable business. I’m talking about homemade bread.
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Under the cottage food laws, which vary by state, you can run a home bakery. Before I dive into the details of setting up a legitimate home bakery, I’ll share a little about my baking experience.
I became a home owner for the first time so that my mother could live with me after my father died. You know how everyone tells you owning a home can be expensive with maintenance, rent, etc. Well, everyone was right.
I found myself in a position where I needed to earn extra money outside of my 9-5 job as a marketing director for a non-profit organization to support my mom and me.
I was the person in my family who brought dessert to every holiday gathering or friend’s party and always made a birthday cake for my colleagues.
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It never occurred to me to use my hobby as a side hustle until I thought of ways to make extra money.
I started a legitimate home bakery, where I earned about $1,500 to $1,800 a month. I followed all the steps below, and after three years, I grew my business into a bakery, which I owned for about six years before selling it.
There are benefits to starting a home bakery, but it’s important to research and follow your local food laws.
The beauty of it is that you can build it slowly or move faster if money is important – and you can do it all from home.
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The investment is minimal, assuming you own an oven, cake and pans, cookie sheets, a mixer and a smartphone with a camera.
All you need is a passion for baking, a few essential tools, your tried and true recipes, and the ability to market yourself and your work to find customers.
Let’s take a look at the steps you need to take to become a home baker and grow your bank account in the process.
All good things need a plan, so start dreaming about it and start writing your dream.
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The thing about plans is that they must be realistic, and during the first months of managing your home bakery, you will probably be overwhelmed.
The best way to plan for this is to take it one day at a time in the beginning. After you have experience working with a few clients, you can think more and plan ahead.
Later, you may be in a position to decide whether you want to commit to your business full-time or prefer to keep it as a part-time, occasional job.
You must understand the local laws in your area regarding owning a home bakery. You are allowed to legally bake and sell from your kitchen as long as you follow your state’s food laws. I should note that New Jersey is the only exception.
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These government regulations, called local food laws, are guidelines for licensing, inspections, what you can and cannot sell, how much you can make, and if/how you can partner with businesses such as local coffee shops, among other things. specifically. Visit Forrager.com for a detailed breakdown of the laws in every US state.
For example, Texas does not have permits, licenses, or inspections beyond the required certification of food service providers. Your annual income from the sale of these foods must be $50,000 or less.
Although in Oklahoma, the laws are fairly restrictive, and only certain types of baked goods are allowed to be sold, and sales are limited to $20, 000 per year, but no license from the health department is required.
You must learn which foods you can sell and which are not allowed. In general, if the food requires refrigeration, freezing, or special handling to remain safe, it is probably not allowed.
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Another important note is that some states require that the home be inspected, inspected and approved before moving in.
If needed, an internal inspector will check your kitchen to make sure all rules are being followed. Knowing that an inspector would be inspecting my kitchen seemed very scary as I prepared for the visit. But I followed my state’s guidelines, and it was straightforward and, ultimately, stress-free.
Some states require that the home be pet-free at all times. Others simply require that the animal be kept out of the kitchen.
In most states, home bakers are required to have a Food Safety Certificate and depending on the state, the rules for obtaining one can vary. You may need to take a class, test and pay a fee. Training ensures that you know how to prepare and store food safely and keep your kitchen clean.
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My advice is to write good notes on every conversation you have. If you speak to your local health board to clarify one of the guidelines, remember who you spoke to and the date and time.
Always be professional and pleasant when dealing with county staff who oversee cottage food operations. In my experience, it comes down to a small group of people who deal with these issues regularly. I found them very helpful and patient when I was confused and needed help.
Choose a business name that no one else owns, with available social media handles and a website domain.
It’s also a good idea to have a personal connection to the name. Perhaps an interesting story that you can share with potential customers, use on social networks, your website, or in the media.
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Open a separate business bank account and track all your expenses. You may want to speak with legal and financial advisors about structuring your business, whether a Sole Proprietorship, LLC, or other entity, and do additional research on tax implications.
If you are a hobby baker, you most likely have many of the necessary tools you need to get started.
One mistake I made when I started was that I bought a lot of things because “now I had a bakery business.” Honestly, I could have waited until I needed them, but I was hooked on the idea.
The lesson here is that you may have to add tools or equipment, but think about it before you make that purchase. You will be amazed at how effective you can be with restrictions.
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Depending on what’s on your menu, you may need more, such as rolling pins and pie plates, pastry bags, cooling racks, extra bowls for your mixer, silicone baking mats, or a digital scale.
The cost of ingredients can add up quickly when you’re a home baker. Look at the price of a pound of butter. You will need to research the options and look to buy all your ingredients at the lowest possible price.
And, all of your baked goods will need to be sealed or, at the very least, in a box. There are many online resources available for equipment as well as those you can find locally.
Facebook groups and other online resources can be very helpful, especially for home bakers. Even Facebook groups are specific by state, where you can ask for help or clarification on local laws and source codes and devices.
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This is also where your menu comes into play, which we’ll discuss next. If you have a menu that requires eight box sizes or several special ingredients, you can see how the costs add up quickly, and you also need space to store it all.
Many home bakers get overly excited when thinking about their menu and don’t consider the potential challenges of having too many options.
Many new home bakers go all out and dive into the kitchen trying to perfect what customers want.
Assume your menu consists of cakes, pastries, cookies, scones and breads. And, you have an order for one pie, a cake, 12 scones, and 12 cookies. That’s a lot of dough and batter to make, and you’ll need boxes of different sizes.
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What if your menu consisted of cakes, pastries, and cookies? And your cakes and pastries were a hit too. You can beat the cake two or three times for many cakes and use the dough for the cake. You can measure your ingredients the day before or knock them out ahead of time. Less efficiency adds up over time.
Think about which of your baked goods gives you pleasure from family and friends. Is there something you need to make?
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