Learning how to start a baking side hustle from home could be the key to escaping the traps of financial stress. So, instead of letting your culinary skills gather dust, it could be transformed into a money-spinner with a little guidance. Let us get right to business as we itemize the simple steps toward building a formidable baking business.
1. Identify Your Niche and Consider the Feasibility of Building It Up Into a Business
A person starting a bakery business could specialize in a handful of baked products. Some specialties to consider include exotic desserts, traditional pastries, gourmet bread, and thematic cakes. However, the niche shouldn’t be something you struggle with but one that comes naturally to your person. Next, consider the possibility of developing that baking niche into a scalable business.
2. Pick a Unique and Captivating Business Name
A business name should be unique, making even the business owner tick. Though the name needs to be primarily the owner’s brainchild, it is equally important to compromise on suitability. Summarily, the business name must be relevant, unique, simple, and future-proof.
3. Craft Out an Objective Business Plan and Create a Startup Budget
After identifying a niche and crafting a befitting name, the next step is to initiate a business plan. The odds of success are very slim if there are no clear-cut plans for business execution. Indeed, the business plan should be one of the founding documents of your bakery business.
A standard business plan should include elements such as products and services, financial projections, market analysis, and a company description.
4. Register the Business
The next step is to make the business, despite being a side hustle, a legal entity. It is easy to register a home bakery business. The owner could either register it as a sole trader or a limited company. Registration of the first is easier, but the latter would benefit the owner in the long run.
5. Register the Production Facility and Observe Optimal Quality Control
In the United Kingdom, starting a food business of any scale without receiving regulatory clearance is against the law. So, local environmental and health service authorities need to check your premises. This check is just due diligence to ensure the facility is clean and in good condition for a home bakery business.
6. Apply for Business Insurance
Business insurance is just like your car insurance. It’s a safeguard we put in place for eventualities we hope never happens. Imagine a couple of your employees mistakenly toppling over a five-step cake while wheeling it into a wedding venue. Various categories of business insurance would effectively cover damages or injuries that come with operating small businesses.
7. Get Appropriate Property Permissions Before Launching the Business
If the property on which the bakery business will be initiated is your outright property, the hassle is minimal. In such a scenario, the homeowner only needs to find out if no local regulations are kicking against starting the home bakery business on residential property. On the contrary, renters and homeowners still servicing their mortgage have to seek their landlord’s or lender’s express permission, as the case may be.
8. Capture Your Local Market With Something Distinct
At the initiation of any small business idea, it is usually best to win over the local market before expanding to other territories. One of the most effective methods for achieving this feat is to leverage your specialty and niche. By implication, a little market research or poll may need to go into the mix.
9. Pivot By Taking Your Business Online
Once the home baking business startup shows the prospect of scaling, take it online. Create an online presence for your bakery business brand. Before long, satisfied customers will become your chief marketers.
10. Be Meticulous About Bookkeeping
Bookkeeping would be important for the new baking business because it would ensure financial accountability and facilitate the calculation of payable tax per time.
ALSO READ: 17-Year-Old Student Turns $10,000 Prize Into Amazon Side Hustle Generating $71,000 Monthly
Why Start a Baking Business?
According to figures reported in the United Kingdom, the baking sector is firing on all cylinders. According to IBISWorld, the bakery industry grew by 2.1% in the 2022 fiscal year, earning an estimated annual revenue of £8.4 billion.
It doesn’t end there. The IBISWorld report also estimates that the industry is bound to grow even more. Market research also suggests that demand for healthy baked product variants will increase equally. Consequently, splashing some money on kitchen requirements for a home baking business would be a worthy investment.
ALSO READ: Tested and Tried Strategies To Earn $125,000 a Year or More From Side Hustles
What Are the Costs of Starting a Baking Business?
If baking has always been one of your passions, the odds are that the basic tools and equipment are handy. Consequently, the home baking business can start with close to nothing.
One of the most important initial expenses for a home baking business after registration is business insurance. However, folks starting from scratch may need between $10,000 and $50,000 to set up the kitchen requirements for the side hustle.