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It’s a lot more admin than people think. I used to say that I spend 75% of my time on my laptop buying ingredients, sketching, talking to customers and only 25% making cakes!
I had a successful cake business from my home for years and closed my order book last summer to focus solely on other parts of my business. Here are my top five things I think you should know before starting a home baking business.
Your kitchen doesn’t have to be perfect, but it should meet certain standards. One of the most important things to do before starting your new career is to get your kitchen registered and inspected by the council. You must register at least 28 days before opening.
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There’s a lot to know and a few hoops to jump through, but once you’ve got it checked out and rated, customers will feel more confident buying from you and publicize that you’ve been through the kitchen. Get a cool window sticker to show off your rating. Most importantly, it ensures the safety of our future customers.
I think this is causing confusion among bakers. I know from talking to hobby bakers that they bake a lot for the cost of ingredients alone. If it is done occasionally, it becomes a hobby before the law. However, if you do it consistently and make even a small profit, you are considered a trade, and a lot can happen at this point. For example, if you are receiving income support or benefits, they will need to be recalculated. If you work full-time, you will need to change your taxes and more importantly, you will need to file your tax return at the end of the financial year.
In the first few months of your career as a cake decorator, even if you bake just 2 cakes and make a total of £12.76, you must declare your income.
The harsh reality is that 9 out of 10 businesses don’t make it past the first year. It might seem a little overwhelming, but it’s worth knowing what you’re getting into. When I started my cake business, it was my secondary income after a full-time job. Later, as my business grew, it became my only source of income, but it was a slow process, a year and a half. To be honest, I don’t think I could have lived on the cake income at first. One of the main reasons was that I didn’t get paid enough for my cake (you can read more about it in my article) and I didn’t have a business plan.
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It may be sugar or flour, but it should be treated with the same respect as any other business. It’s a fun hobby, but turning it into a career requires more than just spraying!
When you figure out how much you want to charge, it’s not going to be in everyone’s budget, and that’s okay. But what has been frustrating for me is a statement that many of my fellow bakers are familiar with
Cake. There will be people who compare your working hours to shopping at the supermarket, but you can’t take that to heart. I know it’s hard to think it’s a reflection on you and your work, but I promise it’s not. Tomorrow there will be customers who will want to make a three-layer cake with a handmade design, and unless you are a real superhuman, you will have to disappoint them and say no. Saying no was a big thing for me, so I made myself sick for a month because I was so overwhelmed because I didn’t want to let anyone down.
Put yourself and your family first and don’t let negative comments get you down. We all have it, so you have to keep your head up and rise above it.
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I think the most important thing to know before starting a home baking business is that you will have one of the best jobs in the world doing it. You will be a part of so many special events, make so many people smile, and your art and talent will bring joy to so many families, that is something to be proud of. There will be long days and long nights, you’ll need to buy extra storage space for tins, molds, and cutters, and you can’t just walk past Leyland without “dropping in.” But this is much more than just a cake.
Even my worst day, decorating cakes and running my own business, was better than my best day at my previous job.
To learn more about starting your own cake business, read my book Cakes, Pastry and Business. From the rules of preparing your kitchen, registering as a self-employed person, insurance, advice, etc
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