Thinking about how to start a cake business at home? Here is a simple and quick reference guide on things to consider when starting a cake baking business.
As a Christian wife and mom who used to run a successful cake business from home for almost 5 years, with repeat customers, the advice I’ve put together in this article is what I would tell every other Christian person who is considering running a home-based cakery.
I hope and pray that these tips will set you up for great success!
How To Start a Cake Business From Home
The most important step before you proceed with establishing your business is to spend some time in prayer. Ask God to lead and direct you. Pray if this is something that you should really venture into.
Take a look at yourself and ask yourself if you are indeed ready to start a home business. Think about your spiritual growth, family and your main job’s commitments. Will you have the time week in and week out to work on your business while not losing focus on the other most important aspects of your life?
In terms of your skills, I would recommend you get some training to develop and enhance your cake-baking and decorating skills. Gain some certification to show that you are an expert. This builds customers’ trust.
On this note, also think about what kind of cakes you want to serve depending on your expertise. Are they wedding cakes, birthday cakes, only cupcakes e.t.c.? Think of what you are good at.
Consider whom you want to serve. Figure out who your target market is or your niche. Be as specific as possible.
Research the market to find out if there is a demand for your particular product within your customer base. Look for a gap in your target market. Perform market and competitor research.
Spend some time developing cake recipes and testing them out with family and friends. Struggling with recipes? Check out these simple recipes.
Plan out your cake menu once you’ve developed your recipes. Initially, you don’t need a long list of cake varieties. Keep it simple.
Laws and Regulations
Make sure you are okay to sell cakes from your home. Check in with your landlord or your mortgage lender.
Register as self-employed with your local government.
Register your business with your local government authorities e.g. the tax authorities and food regulations authorities. You may need to have licenses or permits depending on your government’s laws, before starting out your cake business.
Business insurance: One of the most important insurance to take out is Public liability insurance.
Get general advice and knowledge about selling copyrighted cakes.
Be aware of cross-contamination, food allergens e.t.c in your kitchen area. Keep your cake supplies separate from your household supplies. On this note, always ask customers if they are allergic to anything when they are placing their orders.
Online Business Presence
Think of what your cake business name will be. Search on Google and see if it hasn’t already been taken. Make it unique, catchy and easy to remember.
Secure a website domain with your business name, or a social media page. For website domains, I used Go Daddy. I found them to be affordable. When selecting a social media platform to use, think about where most of your potential customers are likely to be found.
Build your website or use a website designer if you have the funds, or set up your social media page.
Establish your business on Google by getting it listed on Google.
PRO TIP: Take good photos of your cakes and place them on your online sites. Make your cake photography pop! Customers will come to you if your cake pictures look great.
Cake Business Finances
Open a bank account solely for the business, without any personal transactions going in.
In terms of accounting software, I used Quickbooks. It’s easy to use and is perfect for sole traders. It’s vital to manage your business finances from the word go. Keep track of your income and expenses. Make it a daily task if you can and if you have the capacity. This will help you stay on top of your finances.
Costing: How much are you going to charge for the cakes? Look at this article on pricing your cakes.
Cash or card payments? Figure out what’s best for you but also for your customers.
Always take deposits. Make it a prerequisite to secure a 50% deposit before an order is booked or confirmed. Take it from me, I learned this the hard way!
Stock up on cake-baking supplies. e.g. raw materials, baking pans and materials for structuring and packaging your cakes.
Get some business cards and/or flyers done with your chosen printing company. You can then use these to promote your business by:
- Adding them to your cake packaging;
- Giving them to people you meet and/or;
- Distributing them at an event that you or your customers are in attendance.
Planning your Cake Business
Plan out your timeline of how long a cake can take you to make, and how many you can make considering how much time you have per week. Be realistic to avoid stress and burnout. Remember to factor in time with God.
Product delivery: Are customers going to come to you or are you going to deliver the cakes? Either way, always make sure that your cakes are well-stacked and stable to reach their destination in one piece.
Have your terms and conditions in place that can include things like taking deposits, how much time customers have to report any cake problems after delivery in case of refunds, just to mention a few.
Finally, plan to always ask for customer reviews and put them on social media, google or your website. Excellent feedback from customers is a great foundation for a successful business!
Last Tips on How to Start a Cake Business at Home
Look after yourself. Plan in some rest time regularly. A cake business can take a toll on your health if you don’t rest and you are constantly standing up. Try and sit down especially when decorating cakes, because the cake decoration process is the longest time consumer.
Get cake design inspirations from Google or from social media, but do not copy other people’s designs. Remember your Christian values in every design that you make for your customers.
All the best in starting your cake business. I pray that it flourishes now and beyond! God bless.
Did you find this useful? Share this advice with your friends and family who might also be considering how to start a cake business at home. If you need further advice in any one of the areas mentioned in this article, please leave a comment below. Thank you.