4 Tips for Starting Your Own Home Bakery Business

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You can’t turn on your television anymore without finding a show that is dedicated to the art of baking. Whether it’s bread, cupcakes, or designer chocolates, there is seemingly no end to the demand for all things sweet and sugary. If you love to bake, you may want to expand your horizons by starting your own home bakery business. However, if you’ve decided to go virtual or you’re running an e-commerce business, then you’re probably wondering what the surge in demand for delivery means for your business. Keep reading to learn more about charge VAT on delivery here.

While it’s great to create income with your passion, to be truly successful, you have to treat your baking venture the same as any other business. Getting organized and creating a functional business plan will help you to prepare to open your baking business.
As a business owner, you will need to make a lot of decisions before you open your doors. Small businesses like Busby’s Bakery can begin small but then explode in popularity quickly so it’s important to have a clear plan for your success. Let’s take a closer look at a few helpful tips for reducing business costs on starting your own home bakery business.

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Licensing and Insurance

Regardless of the location of your bakery business, it’s crucial that you set up the legalities before you begin taking orders. In most places, you will be required by law to get a business license for your bakery business, even if you are starting out of your home kitchen. A visit to your local small business office can help you determine what you will require legally before starting your business. In some places, you may need to have an inspection of your home kitchen to ensure cleanliness.

Meanwhile in some states, such as California, you’ll need to enroll your employees in a food handler training course so they’re all aware of the regulations they need to follow as. Additionally, you’ll need to have a copy of the food handler license ready in case of unexpected inspections.
When dealing with baked goods, you may want to consider taking out a business liability policy. This will protect you and your business from liability and lawsuits if someone has a bad reaction to any of your products.

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Theme and Consistency

One of your first decisions as a bakery owner is to decide on the type of business you want to run. There are many specialties in the baking industry. To keep your business running efficiently, it is perhaps best to choose a specific group of products and stick with it. You may want to focus on wedding cakes, cupcakes, or gourmet bread and leave the other products to another bakery so that you can focus your efforts.


Small businesses often spend most of their budget on their overhead and purchasing equipment without much thought to marketing or advertising. As a home bakery owner, you can take advantage of the extended reach of social media to help spread the word about your products and your services. You should have a Facebook business page, an Instagram account where you can post pictures of your baked goods, and a profile on LinkedIn so potential customers can find you online.

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Track Expenses

At the end of your first year in business, you will be required to file a tax return for your business tax compliance. To help make this process easier, it’s crucial that you keep track of all your profits and expenses. Virtually every cent that you spend on building your business can be written off as an expense. The more business-related expenses you can track, the lower the base tax rate you will have to pay. If you plan to start your own home bakery business, follow these tips to help you bake your way towards success.

Philip Okoye
the authorPhilip Okoye
Your favorite recipe author, faithful to every course. Mail me at

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