How to Start a Cake Business from Home

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Cake making is one of the most profitable businesses currently. The good news is that you can start it anywhere- in the city, village or even at home. 

Are you planning to get into the home cake making business but are unsure where to begin? You’ve stumbled onto the right page.

In this article, you’re going to learn how to start a cake business from home.

Setting up a cake business at home doesn’t have to be complicated. 

You just need to familiarize yourself with your local council laws, register your home cake making business, decide what cakes to sell, and start promoting your business.

how to start a cake business from home

But here is the thing:

The cake making business isn’t for everyone.

Learning how to start a cake business from home is one thing. Running a successful cake business from home is where the challenge comes in. 

Worse, there is a lot of misguiding information on the internet today, that makes people interested in getting into cake making business think that it’s a walk in the park.

Don’t worry.

In this guide, we’ll hold your hands through the steps around how to set up and run a cake business from home. Ready? Alright, let’s dive in.

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Step #1: Familiarize yourself with your state laws

As with any type of business, before you start a cake making business at home, you need to familiarize yourself with the laws.

Chances are that there are many people doing food businesses in your area. However, don’t just join the bandwagon without doing enough homework about the laws that govern selling food from home.

Familiarize yourself with your state laws

Find out whether your state has a cottage food law and what it says. Check whether you need to prepare a special kitchen for your cake making work. Familiarize yourself with all the label requirements. 

A quick Google search of your state laws should be able to help you here.

Make sure you learn more about the state laws of your region to avoid unnecessary lawsuits that could end up killing your business.

Step #2: Register your business as self-employed

According to Anderson Gregory, a food blogger who is also a professional writer service provider, when setting up a cake making business at home, whether as a side hustle, part-time or full-time; you need to register it as self-employed. You must pay taxes anyway.

You can also register as a sole trader since it’s the easiest way to get started making money selling cakes from home.

Registering as a limited company can be challenging for some people so we’d recommend you register as a self-employed or sole trader.

Step #3: Register your premises 

Done registering your business? Great!

The next step is to register your premises with the local authority environmental service before you start selling cakes.

In most states, registering your premises is free. During the registration process, an officer from the local authority may visit your premises to check its suitability for cake making.

You can find out more about where to register your cake making business via your local environmental health authority website. 

Step #4: Take a food hygiene training course

Once you have registered your premises take a food hygiene training course then apply for a food hygiene and safety certificate.

The certificate might not be compulsory but we strongly recommend that you take the training course and apply for it.

You can confirm that with your local councils. For the training, there are tons of online courses that are sometimes offered for free.

The good news is that most of these training courses take two to three hours to complete. Some courses provide a digital certificate you can download after completing the course.

A food hygiene and safety certificate demonstrates that you care about the safety of your customers. This goes a long way to building customer confidence in your cake business. 

Step #5: Get a home cake baking insurance 

Getting a home cake baking insurance isn’t compulsory but it could save you a lot. This is especially true if you’re sued by any member of the public.

In the cake making business, a simple mistake can make you face severe lawsuits.

If you’re covered with some type of insurance, you’re a little bit safe.

If you already have house or car insurance, you can find out if your insurance agent can get you cake-baking insurance as well. 

The two types of insurance you need to get are public liability insurance and product liability insurance. These insurance covers can help you if you’re sued by a member of the public for damage or injury. This happens if someone eats your cakes and falls ill.

If you plan to have employees in your cake business, you may also get stock insurance, employer’s liability insurance, or tools insurance. 

Step #6: Inform your landlord or mortgage lender

If you’re setting up a cake business from your own home, inform your mortgage lender. However, if you live in a rented home then you need to let your landlord know about your business.

The good news is that no landlord is allowed to withhold or delay their permission. 

Step #7: Practice before you start selling cakes

You must have heard of the saying “practice makes perfect” a thousand times.

However, you have not heard about it enough because when it comes to cake selling, you need to practice a lot.

Of course, you don’t need to know everything there is in the cake making business. Even the experienced cake makers don’t know everything. It’s all about learning a new skill and experimenting until you get it right. Just make sure you familiarize yourself with the basics such as stacking cakes, decorating cakes, covering cakes in buttercream, etc.

You can practice by making cakes and have your friends or family members test them.

When it comes to serving the cake, disposable plastic plates are a great option - not only are they disposable, meaning you won't have a sink full of dishes afterward, but it also means you will have more time to focus on other things like perfecting your recipes.

Step #8: Decide the type of cakes to sell

If you have been following up with the online business world, you must have heard of the term ‘niche selection’.

This involves picking an area or section of the business to specialize in.

Decide the type of cakes to sell

When it comes to setting up a cake business, you need to decide what type of cakes you want to sell.

There are different kinds of cakes you can make such as celebration cakes, birthday cakes, wedding cakes, cupcakes, and more.

When deciding the types of cakes to sell, think about how you can set yourself apart from other cake sellers. In other words, be unique.

Try to make cakes that stand out from the crowd.

To help you decide the type of cakes to sell, read the next bit of advice. 

Step #9: 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 aren’t 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. 

Step #10: Get your cake recipe together

Choosing the right cake recipe is essential to make your home-based cake making business stand out. Try as much as you can to perfect your cake recipes. Your cake recipes don’t need to be great. Just make sure you’re happy with them.

Get your cake recipe together

You can also test them out with your friends and family members to get their honest feedback and adjust where necessary before you take your business to the public.

Some basic recipes you want to try out include: 

  • Themed birthday cakes;
  • Wedding and celebration cakes;
  • Vanilla bean cakes;
  • Chocolate cakes;
  • Red velvet cakes;

Keep working on your recipes until your cakes are the most delicious. You can also take advantage of free cake recipes on the internet.

Step #11: Decide how to price your cakes

Determining your pricing structure before you start selling your cakes will help you run a profitable cake making business from home.

The good news is that there is no one-size-fits-all method of determining your pricing structure.

For instance, charging by the serving might not be the suitable way to price your cakes especially if they take a lot of time and work.

As a rule, when determining how to price your cakes, you need to consider your salary.

Remember that if you start a sole-trader cake making business, you have to pay yourself for the work you do.

The best way to price your cakes accordingly is to charge by per slice. You can also quote for the entire cake once you’re done baking.

The last mistake you want to make when deciding your pricing structure is to try to be a cheap cake baker. 

Step #12: 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;
  • Measuring spoons;
  • A high-quality electric food mixer;
  • Cake cases;
  • Non-stick cake trays that can bake at least 2 batches of cakes;
  • Cooling racks;
  • Wooden spoons;
  • Digital scales;
  • Mixing bowls;
  • Rubber spatula

You also need some decorating kit with food colors, butterfly cutters, chocolate,

Edible glitter,

Edible flowers, etc. 

Step #13: Learn some basic photography skills 

You will have to take high-quality photos of your cakes to promote them. Remember that “people eat with their eyes” before they can eat with their mouths.

Take the time to learn basic photography skills.

A few things you need to familiarize yourself with when taking photos of your cakes include: 

  • The location where you photograph your cakes. Ensure you’re snapping your cakes in a clear and well-lit area. Make sure there are no other eye-distracting items in your cake photos. You can place a stunning wooden backdrop in the background of your photos.
  • Use natural light instead of artificial light sources.
  • Invest in a good camera and a firm tripod. You can also use your smartphone although it might not get you high-quality pics of your cakes.

Step #14: Set up your cakes shop

Up to this far, you’re almost done with learning how to start a cake business from home.

In this step, you need to set up your cakes shops get packaging and decorations.

Remember that when you bake your cakes, you will need to put them somewhere so that if clients place orders, you can deliver the cakes to them.

Ensure you also find reliable suppliers for your cake boxes, stands, bases, etc.

When setting up your cakes shop, put the following in mind: 

  • Ensure the floor and walls are well-maintained, disinfected, and in good condition.
  • The ceiling should be easy to clean and protected from molds.
  • The windows and doors should also be easy to clean and disinfect.
  • Keep facilities for storing cleaning, disinfecting, and storing utensils.
  • Ensure there is a good sink for washing food, cleaning equipment, and another one for washing hands.

You also need two fridges: one for your food and another one for your business to avoid cross-contamination.

Step #15: Decide how you’ll accept payment

How you will accept payment in your cake business will depend on how you undertake it.

For instance, for your online customers, you will need to add some payment gateways like PayPal, Square, etc. 

Step #16: Think about how to set yourself apart

Given how profitable the cake making business is, there are higher chances that you’re going to face some fierce competition.

For this reason, you need to determine how you can stand out from the competition.

There are many ways to make your cake business stand out from the crowd.

For instance, you could specialize in vegan or concentrate on birthday cakes.

Just choose an area that you can outshine your competitors with. 

Step #17: Promote your cake business

Now that you have set up your cakes shop, it’s time to market your cakes to the world. This is where you need to think about effective marketing strategies.

This is where you need to establish your online presence. This is especially helpful if you want to target a nationwide or international customer base.

Below are a few marketing tips to help you market your cake business to the world: 

  • Design a website: A website is a great platform to display stunning photos of your cakes for potential customers to ‘eat with their eyes.’ Setting up a website doesn’t have to be complicated because there are tons of website builders to help you get your website up and running without a hustle.
  • Use social media: There are over 4.4 billion social media users globally. You can share beautiful photos of your cakes on your Facebook profile, Page, Twitter, Instagram, etc. You can also use boosted ads on social media to reach a broader audience.

Step #18: Use word-of-mouth marketing

You can also get out and about with your cake making business. Let people in your neighborhood know about your types of cakes. This will help you earn a local reputation before you can go global. Market your cake business ruthlessly in your local area. 

Step #19: Track your finances

When the sales start trickling in, start tracking your finances right away. Make sure you keep records of all the expenses and transactions of your business to know whether you’re making profits or losses.

Track your finances

Remember that you need to pay taxes. The last thing you want to see is running a business that can’t bring in any profit or pay taxes.

Start bookkeeping from the onset.

You can either use a simple spreadsheet in excel or Google sheets which are free or use QuickBooks and other accounting programs if you can afford them.

Step #20: Keep learning and trying new things

Even if your cake business is bringing more profits, don’t make yourself too comfortable. Keep on learning and trying new things while experimenting with new ways of doing your business.

The internet is awash with tutorials and videos that can help you learn almost anything. Use YouTube, read cake magazines, join cake forums or Facebook groups of cake bakers to learn new things.

Start your cake business now

As you can see making money selling cakes isn’t difficult. You just need to learn how to start a successful cake business.

We hope this guide will help you with a good start.

Do you have any questions about setting up a cake business from home?

If so, ask them in the comments below.

About the author 

Eliza Sadler

Eliza Sadler is a professional journalist with extensive experience, 4 years at the best dissertation writing service. She also works as a freelancer and writes a lot of articles. She always focused on doing quality work to achieve her goals and objectives. Eliza is fascinated by the ability to create original works that meet high standards. Feel free to connect with her by email.

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