How To Start A Home
Baking Business That Customers Can't Resist

So...you've been wondering how you should start a home baking business that will
make your customers go absolutely bananas. Here's a clue: it begins with
mixing a dose of strategy with a whole lot of passion.

Everybody Loves Fresh Baked Goodies

It reminds them of childhood and it can be extremely comforting. So if you have a talent for baking, it would certainly make sense to turn it into a business idea.

But do you know how to start a home baking business and can you turn your baking into bestselling products?

But...Not Everybody Has The Time To Bake Their Own Goodies

When looking into small business ideas, you may come across home baking.

Why the growing need for home baking businesses?  Plenty of people like to eat freshly baked food, but unfortunately, not many people actually like or have the time to bake themselves. 

This is where a home baking business would come in extremely handy.

So...How DO You Start Your Home Baking Business?  Where Do You Start?

First, You Must Determine Which Cluster Of People Will Benefit Greatly From Your Business

Your first step in deciding how you will start your home baking business is to focus your efforts on deciding which niched cluster of people your business will serve.

• For example, do you think your business will be a good fit for those busy moms who want their children to snack on fresh-baked snacks with nutritional value?
  
  
• Or, do you think you are better suited for baking goodies that are more fitting for busy executives who want to throw an event for staff and include a delectable home baked treat for the entire office?
  
  
  

Making This Choice Upfront Will Save You Lots Of Time And Energy By Help You To Target Your Marketing Efforts

The quicker you come to grips with the reality that your home baking business can't satisfy e-v-e-r-y-o-n-e, the better your chances are for business survival.

• When you are thinking about how to start your home baking business, you have to know why and for whom your business exists.

• Your business has to have a purpose and be centered on making a difference in the lives of a niched cluster of people who you hope will go absolutely crazy about what you bring to the world.

Second, When Looking For Clues On How T0 Start Your Home Baking Business, Look At Your Competition

• Who else is serving your target market's needs?
• What are they charging?
• What is their quality like?
• Is your target market satisfied with their product choices?
• Is your target market open to finding another business - preferably yours - to meet their needs?

Third, Pay Close Attention To Pricing

• You will need to look at the competition and determine whether the prices you want to charge are reasonable.

• Due to the fact that you are providing people with freshly prepared homemade products, you should be able to get away with charging a little more than usual. So keep that in mind when you are doing your research.

After Taking Those Steps, You Can Now Begin To Determine What It Will Cost You To Serve This Sector Of People

You need to make a list of your favorite recipes and write down the ingredients needed and the approximate cost to make whatever it is.

Pricing Step One - Determine The Individual Costs Of What You Need To Fulfill An Order

• For example, your cake needs flour, eggs, flavorings and equipment such as a rolling pin and cake pans.

Pricing Step Two - Add Up All The Costs - Both Direct And Indirect - That Goes Into Making Each Cake

• In our example, this includes each of the ingredients listed above PLUS the cost for replacing a cake pan or two -- oh, and don't forget to add in the cost of electricity and the cost for the hour of child care you must pay.
  
  
• So for the sake of this example, let's say that your total cost equals $15 for every cake that you make - and that you make ten cakes per day, which means that your cost = $150/day.
  
  

Pricing Step Three - Determine What You Will Need To Charge To Make Your Desired Profit

• $35 * 50 cakes = $1750 cash in.
• $15 * 50 cakes = $ 750 cash out.
• Profit = Cash In - Cash Out = $1750 - $750 = $1000 profit/week.

Now, obviously, this is just an example and you will need to work out the price of everything you would be making and the price you would charge per item.

When Looking At How To Start A Home Baking Business With Success, Keep In Mind The Following

Your home baking business success hinges on properly researching your market, getting the right equipment and charging the right prices.

Focus Your Efforts On The Three Keys To Success For Your Home Baking Business

Success Factor One: Focus Your Efforts On Creating A Home Baked Goodie That Is Both Craveable And Raveable

Your business will grow fast if they can get customers to rave about your wares.

• When you start thinking about how to start your home baking business, focus on how you will create a raving fan base.
  
  
• Make a list of what you can offer that’s so melt-in-your-mouth good, that people can’t get enough of it.

If you have a few goodies to choose from, then bake variety of goodies and have a home tasting party where you invite members of your target market to drop by and try it for free. This will give them a chance to test your product first-hand.

Success Factor Two: When Contemplating How To Start A Home Baking Business, It Is Crucial That You Price Your Products Just Right.

• Keep an updated and accurate list of all your supplies and all of the labor and time involved in producing a good product.
  
  
• Then select a price that is within the range of what your customers will pay to give you a fair price for your work.
  
  
• Be consistent with your pricing and know when you have reached your order limit.
  
  
• As customers spread the word, your business will begin to grow.  Don't shortcut yourself or your customers by sacrificing your quality by growing too big and too fast.

Success Factor Three: When You Are Thinking Through All OF The Details Of How You Will Start Your Home Baking Business, Focus On How You Will Allocate Your Time.

It is imperative that you find a way to maintain a healthy work schedule and a healthy business-life balance. Practice knowing your limits and build your business in such a way that it works for you, your family, and your customer demand.

• For instance, at some point you will hit your max, the point at which you can’t keep the pace of your orders.
  
  
• When that time comes, consider safeguarding your business by starting a waiting list or increasing your prices just a bit.
  
  
• This will help moderate your incoming orders. Also, as your business continues to grow, begin to evaluate how to manage that growth.

 

Related Home Baking Business Articles

• Why It's Important to Find A Commercial Kitchen For Rent Before You Start Your Home Baking Business
  
  
• 4 Essential Steps To Starting A Home Bakery Business That Thrives
  
  
• 6 Essential Home Baking Business Pricing Tips
  
  
• How to Deal With The Legalities When Starting A HomeBased Baking Business