Discover the critical steps involved with starting a home bakery business.
If you get these steps right, you're set up to start a thriving home
baking business, get them wrong, and your homebased baking
business will have only a small chance of survival.
Right now, there are a lot of people starting a home bakery business. Food-based businesses are in demand these day. Consumers are crazy about baked goodies.
The nichier the better. Retail bakeries and cupcake specialists are adorning Main Street because consumers just can't get enough of a quality baked goodie. This is why the timing is ripe for starting a home bakery business.
Sound strategy coupled with a hot niche and your burning desire to start a home baking business comes in. So, if you are considering starting a home baking business, then keep reading.
Below we give you one woman's story of the steps she took to start her own home based baking business. The steps she took are the same steps you will need to take when starting your own home baking business.
When starting a home bakery business, picking the right baking niche concept can make you or break you. If you happen on just the right niche at the right time and market your home baking business to the right people, you business will take off.
The real secret is finding a niche within a niche and then becoming knonw as THE one to go to within that particular niche. which is what the home based business owner featured below did.
This is what the home based business owner featured below did. She found herself in the midst of the right niche at the right time.
The next step she took in getting her home baking business off the ground was actually testing the market.
One of the first things you will run into is that people will began approaching you to ask you how much you will charge for your goodies. Immediately after you start to get the inkling that your idea might just take off, step back and begin to determine just how much you will charge for your product.
When people begin to test you work, they will begin to ask you about your pricing.
Don't wait for customers to come to you before thinking about what you will charge because oftentimes, you will spout out a price that, after much consideration, is way too low for you to earn a profit.
When starting a home bakery business, you have to determine and plan, upfront, how you will ensure that your business can survive increasing costs, changing customer demands, as well as increasing competition.
Let's read her story below and see the steps she took to make her dreams of starting a home bakery business a reality.
Below is the story of how I got started in my home baking business. My journey to starting the business hasn't necessarily been easy, but it's been enjoyable.
Starting a home bakery business was one of the best things I could have done for myself and my family. I absolutely love the fact that I took the steps needed to start my own home-based baking business.
After having my first child, I didnt want to go back to my job and leave my child in day care after only 6 weeks.
So I searched everywhere for a home based business that would allow me to bring in an income and allow me to spend as much time as possible with my child.
I had always been a good baker. I grew up with a mom who taught me how to decorate cakes all while I was growing up....and thats where it all started.
Because I was a new mom who was surrounded by other new moms, I was focused on all things baby.
I was so focused on babies and children and started baking cakes for friends with babies the same age as mine.
First, I tried to do some market research and find out what bakeries were charging for the same items.
But I had to consider my own costs and pricing luxuries, because running a home based bakery meant that I didn't have the overhead of an actual location, which meant that I could beat some of their pricing and still make a profit.
But on the flip side, I didnt have the wholesale buying capabilities that a shop has, so, I had to factor in the cost of needing to use better ingredients in my product than the competition..
I decided a good way to do it was to make something and track how much it cost to make, how much it cost to buy each ingredient and the amount I used in the recipe.
Then I tried to figure out the amount of energy used to produce it, and the usage and depreciation of my equipment.
It was all so fractional because my production was so small, but I did come up with what I thought was the best estimate of my cost per item.
The more thought I put into pricing, the more I began to think about profit margin. I knew that I wanted to become known as THE premier baby cake baker. So, with that strategy in mind, I figured that I needed to find a strategy that will enable me to produce, and price at a higher profit margin.
Initially, my recipes were all based on the home baker - measured in cups and teaspoons.
What I figured out was that I needed to correct that, as it didn't work out quite nicely when I set my mind on optimizing my profit. So I turned measurements into weight so I could lower my energy cost and produce more than one small batch at a time.
This ONE move, was the strategy that really made a difference in making my business a profitable home baking business. I utilized the internet and search engines to figure out how to convert all of it, and I did a lot of math.
I also purchased a deep freeze, I found out from interviewing bakers that they all froze their creations to keep it fresh and allow them to decorate it and always deliver it on time.
So I started making bigger batches and freezing some of what I made... This really reduced cost!
Also, I searched online for wholesalers of ingredients. Even in smaller volume there was a huge price difference between buying flour or sugar at my local market or Sams Club. So I bought the bigger packages and saved.
Pricing is a never ending issue. As the cost of supplies continues to increase, I have found that I have to at times increase my prices in order to not compromise the quality of the ingredients I use.
My best advice is to plan upfront how you will control your cost and profit margins.I wish you luck in starting a home baking business that your targeted niche just can't get enough off.
I leave you with four pieces of advice that will help you to be on your way to starting a home bakery business that will meet your needs.
P.S. Here's A Few More Tips To Make Your Home Based Baking Business A Hit...