If you’re an experienced baker, you may have considered opening your own bakery. Experienced bakers can operate a fun and profitable bakery in their home. Like every business, however, at-home bakeries require a lot of planning. To become established, you may also have to work 14 to 16 hour days. You also have to endure many steps to make a home bakery, from acquiring a license to hiring employees.
Obtain the proper licensing. Each city and state has different requirements. Check with your local health department about licensing needed to sell and distribute baked goods from your home. A health inspector, for example, may need to inspect your kitchen.
Purchase quality equipment. Buy the best stove and oven you can afford. Some things to consider when purchasing equipment include the type and the quantity of your bakery items. To save on costs, you can lease equipment or purchase high-grade used equipment.
Buy more insurance. Consider purchasing insurance that will cover the cost of equipment in case of a disaster. Also, consider liability insurance which will protect your business and your home. Liability insurance covers your business if your business is found legally responsible for injuring a customer.
Set up adequate storage space. Baked goods need to be stored in dry, cool areas. Storage areas should also be separate from your home’s family areas.
Test recipes. Gather a group of friends, family members as well as strangers. Give and ask for truthful feedback.
Set prices for baked goods. Determine how much profit you want to make on each item. Then, add that cost to the cost of production. You can also check with local bakeries to see how much they charge for their products.
Consider hiring workers. At-home bakery operations can be time-consuming. Hiring workers, friends or family helps lighten the workload.
Before starting a business, discuss your plans with a mentor. Nonprofit organizations, like the SCORE Association match mentors with entrepreneurs and small business owners.
Develop a business plan with details about pricing, marketing and financing. Several software programs are available that will help you write a business plan. The U.S. Small Business Administration also provides information about business plans. "Entrepreneur" magazine estimates that it costs between $10,000 and $50,000 to start a home bakery. You might need to obtain financing to start a home bakery. If your home bakery outgrows your home, consider leasing or renting a commercial kitchen.
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