How To Start Your Own Baking Business From Home

How To Start Your Own Baking Business From Home – Thinking of starting a home bakery business? You’re at the start of an exciting journey – our 10-step guide will help you get started.

Here’s what you need to know, from learning to bake at home in the UK to selling cakes from home.

How To Start Your Own Baking Business From Home

How To Start Your Own Baking Business From Home

When you start a home bakery business you need to tell HMRC that you are self-employed so they know you have to pay tax using the self-assessment system. You should do this even if you are going to be running your home baking business as a side hustle, part-time, or have another job.

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To set up a sole proprietorship, the simplest business structure, notifying HMRC is all you need to do to register your business. If you want to create a limited company, the process is a little more complicated. See our in-depth guide to setting up a public limited company for more information.

Butterwick Bakery, a confectionery company based in the Midlands, shares their story of starting a bakery business in this video:

First, you should consider getting a Food Hygiene Certificate, Level 2 Hygiene Certificate, if you are new to the food business. It’s a good way to understand the rules you need to follow.

Home businesses also undergo a food hygiene test where you will receive a hygiene rating of one to five. After registering your business, the local authority will arrange a visit to your home.

Bake Perfect Cakes

In general, your kitchen and premises should be clean and in good condition. Good food hygiene practices should be followed in the kitchen, including cleaning and protection from contamination and pest control. However, your home bakery business will not be held to the same standards as a large commercial space such as a restaurant.

Ideally, you need a separate fridge for your personal food, but if that’s not possible, you need to be clear about what food is for your business and ensure there is no cross-contamination.

Pets are not allowed in the kitchen and cooking areas. Children should not be allowed in the kitchen during food preparation.

How To Start Your Own Baking Business From Home

Finally, be sure to keep up to date with food labeling regulations and Natasha’s Law when providing allergen information.

Top Tips For Starting Your Own Bakery Business

The Food Standards Agency has many resources you can use in your home baking business, including the Safer Food Better Business pack based on Hazard Analysis and Critical Control Point (HACCP) principles.

We also have a health and safety guide for restaurants, caterers and hospitality businesses that might be useful for your baking business.

Another rule when starting a cake business is that you must register your premises with your local authority’s environmental health department at least 28 days before you start your business. It costs you nothing and your registration cannot be refused. Someone will come to your home and inspect your cooking area. Use the Food Business Registration Tool to get contact details for your local authority.

Note that the rules listed in this article are a guide. If you are unsure of anything, it is always best to seek advice from your local environmental health authority.

Cute And Creative Bakery Names

When starting a bakery business, it is important to think about business insurance. Liability insurance and product liability insurance (usually sold together) can cover you if a member of the public sues you for injury or damage.

For example, you could be sued if someone gets sick after eating one of your cakes or if you knock over an expensive vase while delivering a cake to a customer.

There is also inventory and tools insurance, as well as employers liability insurance if your home bakery business has employees. Visit our Home Bakers Insurance page to get started.

How To Start Your Own Baking Business From Home

If your home is rented, you need permission from your landlord to operate your business. However, the law says your landlord can’t unreasonably withhold or delay permission. If you own your home, you may need to get approval from your mortgage lender to operate your home bakery business.

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There are a large number of bakery businesses out there, so you need to think about how you will differentiate yourself. For example, you can specialize in vegan or gluten-free baked goods, or focus on children’s cupcakes or wedding cakes.

Because cakes are difficult to transport, you need to know your local market well, as most of your customers need to be close enough to be delivered or picked up.

Your website should include important information such as what you do, where you are, and how people can place an order, as well as lots of great photos.

A Google Business Profile is an important part of any local advertising strategy. This means your business will show up on Google Search and Google Maps when people search for baking businesses in their area. If customers can’t come to you to buy your cakes, you can hide your home address from your listing and still show up in your area as a delivery business.

How To Send Baked Goods In The Mail

Create a Twitter account, a Facebook page and an Instagram account for your business and update them with news and photos.

Connecting with other people on social media is important, so spend a few minutes each day liking and commenting on other people’s posts and following relevant accounts.

Another idea might be to record video tutorials and cooking tips and post them on YouTube or TikTok. Or why not publish your recipes as a cookbook and promote them on Instagram? It’s a great way to establish yourself as an authority on baking while creating a new revenue stream for your business.

How To Start Your Own Baking Business From Home

Even if you run a home bakery business, it’s a good idea to go out and tell people about your business and build a reputation locally.

Pricing Baked Goods: How To Figure Out Pricing For Your Bakery

Consider applying for a booth at local events, including food markets and festivals. You can give people free samples, sell cakes, and hand out flyers and flyers to promote your cake business.

Since you are running your own business, you need to keep track of your business income and expenses so that you can enter this information when you complete your tax return.

Our guide to tax-deductible expenses should help you determine which expenses you can deduct. Remember to keep your receipts as HMRC may ask you to show proof of your expenses.

You can also use the budget calculator and choose the best business bank account to separate your personal finances.

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People need to experience your amazing cakes, so it’s important to think about marketing strategies. Think of ways other than going to local events with your cakes and using social media to reach potential customers.

If you specialize in wedding cakes, you may be able to post flyers at a wedding dress store or establish a relationship with, say, a local wedding venue.

If you make vegan cakes, you might be able to get permission to post flyers at a local vegetarian restaurant or write a guest post for a popular vegan blog.

How To Start Your Own Baking Business From Home

You can also try Google Pay Per Click (PPC) ads or Facebook advertising, but remember to limit your audience to your region so that your ads only show to people in your delivery area.

Tips To Start Your Own Bakery From Home

Download our free business plan template to plan everything from your initial idea and financial investment to your marketing strategy and growth plans.

Harpreet Kaur owns dessert parlor company Oh So Yum and shares her tips on how to grow your business.

If you don’t want to start a cake business, there are more creative business ideas you can start from home. Why not think about:

Have more questions about starting a home bakery business? Ask them in the comments below.

Home Business Ideas For Food Lovers

As the UK’s largest provider of professional indemnity insurance, we protect more business than anyone. Why not take a look now and create a quick and personalized home cooking insurance policy?

We create this content for general informational purposes and should not be construed as advice. Always follow the advice of a professional. Read our full disclaimer

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How To Start Your Own Baking Business From Home

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Baking Your Way To The Top

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