How To Start Your Own Bakery Business From Home

How To Start Your Own Bakery Business From Home – Wondering how to start baking at home? You are at the beginning of an exciting journey. our 10-step guide will help you get going.

Here’s what you need to know, from dealing with UK home regulations to actually selling cakes from home.

How To Start Your Own Bakery Business From Home

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

Start Your Own Bakery Business With This Step By Step Guide

If you want to set up as a sole trader, the simplest business structure, you simply tell HMRC to register your business. If you want to set up a limited company instead, the process is a bit more complicated. For more information, see our detailed guide to setting up a limited liability company.

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First, you should consider getting a food hygiene certificate, specifically a level 2 hygiene certificate if you are new to food. It’s a good way to understand the rules you need to follow.

Home businesses are also subject to a food hygiene inspection, where they will give you a hygiene score of one to five. After registering your business, your local authority will arrange a visit to your home.

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Your kitchen and grounds should be clean and in good condition. You should follow good hygiene practices in your kitchen, including cleaning and contamination prevention and pest control. However, baking in your home will not be measured by the same standards as a large commercial space such as a restaurant.

Ideally, you need a separate refrigerator for your personal food, but if that’s not possible, you need to know exactly which foods are for your business and make sure there’s no cross-contamination.

Pets should be kept away from kitchens and food preparation areas. Children should not be allowed in the kitchen while food is being prepared.

Finally, make sure you are aware of food labeling regulations and Natasha’s Laws when it comes to providing allergen information.

How To Start A Bakery Business From Home

The Food Standards Agency has a number of resources you can use for your home baking, 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 you may find useful for your cake business.

Another rule of thumb for starting a cake business is that you are required to register your premises with your local authority’s Environmental Health Service at least 28 days before starting your business. It costs you nothing and your registration cannot be rejected. Someone will come to your home and inspect your food preparation area. Use the food business registration tool to get your local authority’s contact details.

Remember that the regulations we have listed in this article are a guide. It is always best to seek advice from your local environmental authority if you are unsure.

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When starting a bakery business, it is important to consider business insurance. Public liability insurance and product liability insurance (usually sold together) can cover you if someone in the public sues you for injury or damage.

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

There is also stock and tools insurance and employer’s liability insurance if your home baking business will have employees. Visit our home baker insurance page to get started.

If your home is rented, you must obtain permission from the landlord to conduct business. However, the law says that your landlord cannot unreasonably delay or delay their permission. If you own your home, you may need to get permission from your mortgage lender to start your home bakery.

Tips To Start Your Own Bakery From Home

There are a large number of bakery businesses, so you need to think about how to differentiate yourself. You could specialize in vegan or gluten-free baked goods, for example, or focus on children’s cookies for parties or wedding cakes.

Because cakes are difficult to transport, you need to have a good understanding of your local market, as most of your customers should be close enough for personal delivery or collection.

Your website should include important details such as what you do, where you’re based and how people can order, and add plenty of enticing photos.

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

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

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

Another idea is to upload video tutorials and baking tips and post them on YouTube or TikTok. Or why not publish your recipes as a cookbook and promote them on Instagram? This is a great way to establish yourself as a baking authority while creating a new revenue stream for your business.

Even if you’re starting a bakery business from home, it’s a good idea to get out there and tell people about your business and build a local reputation.

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

Since you are self-employed, you need to keep track of your business income and expenses so that you can enter this information when completing your tax return.

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

You’ll also want to use a budget calculator and choose the best business bank account so you can keep your personal finances separate.

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People need to discover your amazing cakes, so it’s important to think about marketing strategies. In addition to taking your cookies to local events and using social media to connect with potential customers, consider other ways.

If you specialize in wedding cakes, you can post flyers in a bridal shop or develop a relationship with, say, a wedding venue.

If you make vegan cakes, maybe you can get permission to put up flyers at a local vegan restaurant or write a guest post on a popular vegan blog.

You can also try Google Pay Per Click (PPC) advertising or Facebook advertising, but remember to limit your audience to your local area so that your ad is only shown to people in your delivery zone.

Ways To Promote Your Home Bakery Business & Get More Exposure!

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

Harpreet Kaur is the owner of Oh So Yum Dessert Parlor and shares her tips for growing your business.

If you are not planning to start a cake business, there are many creative business ideas that you can start from home. Why not think?

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

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As the UK’s largest provider of business insurance, we protect more businesses than anyone else. Why not take a look now and quickly create a personalized home baking insurance policy?

Sam has over 10 years of financial services writing experience. He specializes in shedding light on complex topics, from IR35 to ISA, and identifying emerging trends that audiences want to know about. Sam spent five years at Simply Business where he was the lead author.

We create this content for general informational purposes and should not be taken as advice. Always get advice from a professional. Please read our full disclaimer

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