a cake business plan

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How to Start a Cake Business

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Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on September 20, 2021 Updated on May 9, 2024

Investment range

$2,000 - $7,000

Revenue potential

$62,000 - $310,000 p.a.

Time to build

Profit potential

$37,000 - $125,000 p.a.

Industry trend

Everybody loves cake! That’s why it’s worth more than $65.5 billion on a global level. If you’re a baker with a passion for desserts, then starting a cake business may be right up your alley.

Of course, starting a business is rarely easy, and requires hard work and preparation. Thankfully, you’ve come to the right place, as this step-by-step guide details all you need to know to develop and launch your new cake business.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Before entering the baking industry, you need to know about the advantages and challenges that come with it. To help you determine if this is the best career path for you, here are some of the typical pros and cons of starting your own cake business:

Pros and Cons

• Work from home on your own schedule
• Low start-up costs
• Simple model with steady year-round income
• Easily scalable and can be transferred to production facility
• Unsold products often go stale, leading to loss
• Target market is mainly local, hindering potential

Cake Industry Trends

For broader industry information, read this Step By Step article on starting a bakery . 

Industry Size and Growth

• Industry size and past growth — The global cake market was valued at $65.68 billion in 2023, according to market analyst Grand View Research. Thanks to increased urbanization and more disposable income, the US market has also been enjoying steady growth.
• Growth forecast — The global market is projected to grow about 3% annually through 2030.(( https://www.grandviewresearch.com/industry-analysis/cakes-market ))
• Number of people employed — As of 2023, more than 220,000 bakers were employed in the US, according to the Bureau of Labor Statistics.(( https://www.bls.gov/oes/current/oes513011.htm ))

Trends and Challenges

• Grocery stores and supermarkets are adding in-store bakeries
• Increase in bakery-cafes
• Rising interest in healthier and diet-related products, such as sugar-free, gluten-free, dairy-free, organic, and low-sodium options
• Online sales of cakes are rapidly increasing as more consumers appreciate the convenience of placing an order while at work or on the go
• Shelf-life issues of ingredients
• Capturing fickle consumers

Popular Products

Here are the most popular types of cake consumed in the US in 2017(( https://www.statista.com/statistics/235492/category-share-of-cake-sales-in-the-us-by-cake-type/ )):

What Kind of People Work in Cake Shops?

• Gender — Around 54% of all bakers are female, while around 46% are male.(( https://www.zippia.com/baker-jobs/demographics/#gender-statistics )) 
• Average level of education — 31% of bakers have a high school diploma while 26% hold a bachelor’s degree.(( https://www.zippia.com/baker-jobs/education/ ))
• Average age — The average age of an employed baker is 41.7 years old.(( https://www.zippia.com/baker-jobs/demographics/#age-statistics ))

How Much Does It Cost to Start a Cake Business?

Startup costs for a cake business run from $2,000 to $7,000 or more, and vary depending on the equipment you already have. For instance, if you have a reliable refrigerator and oven, this reduces your costs. The amount that you spend on marketing will also fluctuate your start-up capital requirements.

You don’t need expensive equipment to bake cakes. Most of the necessary tools and equipment will likely already be available in your kitchen. You can easily buy any other items you need from Amazon or eBay , or from a local food and beverage supplier. In addition to equipment and tools, you’ll also need ingredients and packaging material. Finding a grocery or local dealer is your best bet for good deals on bulk baking goods. 

How Much Can You Earn From a Cake Business?

The median cake size is 10 inches in diameter, with an average sales price of $60. If you start out as a solopreneur working from home, you can expect a profit margin of about 60%, which means you’ll make around $36 for each cake sold. 

In your first year or two, you might sell 20 cakes a week. This would give you more than $62,000 in annual revenue, and a profit of around $37,000. After you scale up your operations with a production facility and a full-time staff, your margin will fall to 40%, but you might sell 100 cakes a week. This would give you more than $310,000 in annual revenue and a profit of nearly $125,000. 

What Barriers to Entry Are There?

In any food business, the biggest barrier to entry is often the stringent regulations and licensing requirements. Food businesses are regulated by the FDA, which provides a comprehensive guide on starting a food business .

Another barrier to entry includes developing new recipes to stand out in a crowded market. Consumer preferences and dietary requirements change from time to time. You need to establish an adaptable menu that you can customize according to your customers’ changing desires.

Related Business Ideas

How to Start a Cupcake Business

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Step 2: hone your idea.

Now that you know what’s involved in starting a cake business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an Opportunity

Research cake businesses and bakeries in your area to examine their products, price points, and customer reviews, and see what sells best. You’re also looking for a market gap to fill. For instance, maybe the local market is missing a good gluten-free and vegan cake maker.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as sponge cakes or cupcakes.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine What Sort of Cakes You Will Make

The next crucial step is determining what sort of cakes you will produce and sell. Would you like to offer a wide variety of pre-made and custom cakes? Or maybe you’d prefer to focus on a single type of cake, such as cheesecakes or sponge cake, and build your brand that way.

Chocolate is the most-searched-for type of cake online, followed by red velvet and carrot.(( https://www.bakeryandsnacks.com/Article/2019/07/12/Top-10-The-world-s-favorite-cakes-revealed/ )) It’s a good idea to do some research and determine if it is more viable, in your area, to focus on wedding cakes, birthday cakes, cupcakes, or some other segment. 

If you are new to cake baking, you need to spend some time developing recipes and designing a menu. However, if you are a seasoned cake baker, you may bring the recipes you developed over the years, reducing the time spent conceptualizing. You might also consider offering baking classes or online courses to boost your revenue. 

One thing to keep in mind is that sponge cakes last longer than most other cake types before they go stale, reducing your potential losses. Another money-saving option is offering frozen cakes, a market segment that has seen significant growth in recent years.  

How Much Should You Charge for Your Cakes?

Your prices will depend on which types of cake you choose to offer, as well as costs, overhead, and your target profit margin. Keep in mind that your prices will need to be in line with those of your competitors. 

Once you know your costs, you can use our profit margin calculator to determine your markup and final price point. Remember, the price you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

You could choose to concentrate on custom cakes, which would likely get you a lot of birthday orders. In that case, your target markets would be parents, offices, and residential communities, and you could find them on Facebook and LinkedIn. If you specialize in a certain kind of cake, you might want to focus on selling wholesale to local grocery stores, restaurants, and cafes, which you could find on Google Maps and Yelp. 

Where? Choose Your Business Premises

In the early stages, you’ll probably run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers and may choose to rent out a storefront or production facility. Find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Cake Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “cake” or “cakes,” boosts SEO
• Name should allow for expansion, for example, “Dessert Delights” over “Vegan Delights”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Discover over 250 unique cake business name ideas here . If you want your business name to include specific keywords, you can also use our cake business name generator. Just type in a few keywords, hit Generate, and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Business Plan

Here are the key components of a business plan:

• Executive summary — A brief overview of the cake business, highlighting its mission, goals, and key accomplishments
• Business overview — A detailed description of the cake business, including its mission, vision, values, and legal structure
• Product and services — Clearly outline the types of cakes and baked goods offered, emphasizing any unique or specialty items
• Market analysis — Evaluate the target market for the cake business, including demographics, trends, and potential customer needs
• Competitive analysis — Identify key competitors in the cake industry, analyzing their strengths and weaknesses to highlight the business’s competitive advantage
• Sales and marketing — Outline the strategies for promoting and selling cakes, including pricing, distribution, and promotional activities
• Management team — Introduce the key members of the cake business team, emphasizing their qualifications and roles in ensuring success
• Operations plan — Detail the day-to-day operations of the cake business, covering production, supply chain, and quality control processes
• Financial plan — Present a comprehensive financial projection, including startup costs, revenue forecasts, and a break-even analysis
• Appendix — Include supplementary materials, such as resumes of key team members, detailed market research, or any additional information that supports the business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider finding and hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose Where to Register Your Company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to cakes. 

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state. 

Choose Your Business Structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your cake business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• Partnership — Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corporation — Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corporation — This refers to the tax classification of the business but is not a business entity. Either a corporation or an LLC can elect to be an S Corp for tax status. Here, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number or EIN. You can file for your EIN online or by mail/fax. Visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans — This is the most common method but getting approved requires a rock-solid business plan and a strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Angel investors — Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities. 
• Friends and family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

Your best bet for funding a cake business is likely personal assets and friends and family, though if you have an exciting concept you could also give crowdfunding a shot. 

Step 8: Apply for Business Licenses and Permits

Starting a cake business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as, health license and permit from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

Since you intend to launch a cake business, you will also need to go through the FDA to get approval. The FDA has a set of guidelines for acquiring licenses and permits to operate your cake business:

• Small Entity Compliance Guide: Registration of Food Facilities
• Registration of Food Facilities and Other Submissions
• FDA Guidelines for Labelling Food Products

You may also need state-level licenses and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your cake business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from clients who say they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential Software and Tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

Many excellent software tools, such as BatchMaster , FlexiBake , Bake Diary , and Cake Boss , are focused on baking and can help you with sales, inventory, pricing, design, and more. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , FreshBooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences of filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop Your Website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Tempting social media content — Utilize Instagram and Pinterest to display your exquisite cake designs, attracting and engaging a broad audience.
• Website and local SEO — Employ local SEO techniques to ensure those searching for “cakes near me” or “custom cakes” find your bakery easily. Optimize your bakery’s online presence to dominate local search results, ensuring easy access for nearby customers searching for custom cake orders.
• Online ordering system — Implement an easy-to-use online platform that highlights your cakes’ customization options and streamlines the ordering process.
• Striking branding and packaging — Develop unique branding and packaging that make your cakes visually appealing and memorable.
• Seasonal promotions — Launch promotions during holidays and special events to draw customers looking for festive cakes.
• Engaging email newsletter — Regularly send updates about new flavors, promotions, and baking classes to keep your customers connected and informed.
• Baking blog — Share recipes, decorating tips, and the latest trends in cake design to showcase your expertise and engage with your audience.
• Customer creations and testimonials — Highlight real customer experiences and reviews to demonstrate the joy and satisfaction your cakes bring to various celebrations.
• Cake tasting events — Organize tasting sessions for potential customers, particularly targeting those planning significant events like weddings.
• Baking workshops — Conduct cake decorating classes to build community and deepen customer loyalty through interactive learning.
• Local vendor partnerships — Collaborate with event planners, florists, and venues to offer bundled services and mutual promotions.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your cakes meet their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your cake business could be: 

• Gorgeous custom birthday cakes at great rates!
• Frozen cakes — fresher longer 
• The cupcake of your dreams 

You may not like to network or use personal connections for business gain but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a bakery, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in cakes and desserts for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in cakes and pastries. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a cake business include:

• Pastry chefs
• Marketing lead 
• General manager

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Cake Business — Start Making Money!

For many people, celebrations aren’t complete without cake. So, a birthday party isn’t complete without the celebrator blowing the candles on a cake. Newlyweds must slice their cake together during their wedding reception, and so on. The cake industry is enjoying steady growth so you should have no trouble finding customers, especially if you can offer something unique and unforgettable. Of course, it has to taste good too!

Now that you have the necessary knowledge, you’re now ready to start your entrepreneurial journey. It’s time to get out there, roll up those sleeves, and start baking and selling beautiful cakes.

• Cake Business FAQs

A cake business can be an extremely profitable venture, even if you are a solopreneur and operate from home. You will not have any significant operating expenses because there is no need for rent or equipment to purchase.

Starting a cake business can be challenging due to the need for baking skills, creativity in design, and knowledge of business regulations and marketing. However, with passion and proper planning, it can also be a rewarding venture.

Yes. The process of starting a cake business from home is easy and requires little capital. You can deliver the product to clients’ doorsteps or even have the client book their preferred courier, which reduces overhead expenses. You can also accept orders online through your website or social media channels.

Cake baking is a good business, because it will allow you to be your own boss while also ensuring consistent revenue. It’s also good for people who want to make some extra income from their side hustle, or those looking for artistic and innovative work that offers plenty of opportunities to learn new skills along the way.

A cake business is successful when it offers high-quality cakes, unique designs, excellent customer service, effective marketing, and profitability.

To attract customers to your cake business, use social media to showcase your cakes, collaborate with other businesses, attend wedding fairs, offer tastings and consultations, and encourage word-of-mouth referrals.

To make your cake business unique, specialize in a niche, offer personalized and custom cakes, experiment with flavors and ingredients, incorporate alternative designs, and emphasize quality and attention to detail.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Cake Business Name
• Create a Business Plan
• Register Your Business
• Register for Taxes
• Fund Your Business
• Apply for Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Cake Business — Start Making Money!

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How to Start a Cake Business

From birthday parties to weddings and other special occasions, cakes are an integral part of many celebrations. Industry innovations have made it possible for consumers to turn their confectioner’s dream into a reality and allow bakers to become more imaginative with their creations. Depending upon the business plan and overall goals of the entrepreneur, a cake business can be structured several different ways. Many business owners service the entire community, while targeting a specific niche market, based on their baking strengths and public need.

Learn how to start your own Cake Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a cake business by following these 10 steps:

• Plan your Cake Business
• Form your Cake Business into a Legal Entity
• Register your Cake Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Cake Business
• Get the Necessary Permits & Licenses for your Cake Business
• Get Cake Business Insurance
• Define your Cake Business Brand
• Create your Cake Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your cake business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Cake Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your cake business?

Business name generator, what are the costs involved in opening a cake business.

As mentioned, many novice bakers start out baking in their home kitchen. While this approach can be limiting, depending upon the size of your kitchen, it significantly reduces start-up costs. Many home-based cake bakers report an initial investment as low as $1,000. Budget for the following items when determining how much capital you need:

• Licenses - Costs vary, depending upon your state’s Department of Health requirements. Fees run anywhere from $50 to $400.
• Insurance - Seek the advice of a professional regarding the type of coverage that you require. Policy premiums vary depending upon the specifics of your organization.
• Bakers supplies and decorating tools- Use your time spent working with other bakers to identify what supplies and brands work best for you. Once you have revenue to reinvest, a professional grade mixer and oven is likely something you will want to consider.
• Ingredients - To insure quality, ingredients are purchased on an as-needed basis. Your initial ingredient investment will not likely exceed $150.
• Refrigerator - A fridge dedicated to your baking needs will help keep ingredients from getting contaminated and ensure your personal fridge isn’t overrun with baked goods. You can purchase a used one for as low as $200.
• Shelving - Between ingredients and baking tools, you will have a good amount of items to store. A cupboard can be purchased new for $100 and will save you a great deal of headache long-term.
• Marketing materials - While you don’t need to spend a great deal of money on it, your packaging is as much a part of your brand as the cakes themselves. An initial investment of approximately $300 should be sufficient for packaging. Your initial marketing strategy should also include well-placed ads, printed material, and business cards.
• Website - Your website should be simple and clean, offering potential clients enough information about your skills to draw them in. Websites can be built for free, with standard hosting fees incurred once it goes live.

What are the ongoing expenses for a cake business?

Aside from standard overhead costs, your ongoing expenses will be fairly minimal. Your operating license and insurance will renew annually and could set you back anywhere from $700 to $1,500. Cake ingredients, packaging, and promotional items will consume the greatest portion of your budget. These costs fluctuate, depending upon how busy you are that particular month. Regular maintenance and repair on your equipment will limit costs associated with replacing damaged items. If you offer delivery, you will also need to budget for fuel, costs associated with the vehicle, and higher insurance premiums.

Who is the target market?

When developing your business plan, you will want to identify your target market. Research other bakers in the area and identify community needs that aren’t being met. Do any of those niches appeal to you? Organic cakes, vegan products, and gluten free options are niches you might want to explore. Do you want to specialize in wedding cakes or is this a niche you want to avoid altogether? Once you’ve identified the facets of the business that most appeal to you, you can begin to build your buyer personas and target them in marketing efforts.

How does a cake business make money?

Whether you open a retail location or focus solely on custom orders, your cake business’ revenue will be generated from the sale of each cake. Each creation will have special pricing, based on a variety of factors.

Ingredient costs are just a small portion of what customers are paying for. Baking and decorating skills, as well as your time, should always be considered when setting prices. Don’t sell yourself short. Carefully consider the time each project will take and price accordingly.

How much profit can a cake business make?

The cake business offers an opportunity to realize a significant profit, particularly as your reputation within the community blossoms. This is an industry where people rely heavily on word of mouth, so it is advised that you consider a safety net in your bank account prior to embarking on this business venture. Bakers who choose to remain small, with only one location, report a profit of $41,000 to over $65,000. Those who choose to branch out and expand further report profits ranging from six figures to over a million. Revenue is directly tied to your vision for the business and drive to accomplish those goals.

How can you make your business more profitable?

Implementing the following strategies could help boost profits:

• Teach baking classes, where students learn everything from baking to decorating. Be careful to not give away too many trade secrets though.
• Consider offering additional baked goods, such as cupcakes, cookies, and pies. If you have a storefront, combine these items with quality coffee and you could have a true recipe for success.
• Seek out a partnership with high-end hotels and restaurants in the area. Depending upon your strengths, time, and overall goals, you could become their sole contributor for dessert items, or offer support for large events only.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your cake business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

Federal Business Licensing Requirements

There are federal regulations regarding what can and cannot be added to, sold as, and processed with food. Attached is a resource from the Food and Drug Administration detailing the process of starting a food business: How to Start a Food Business

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a cake business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

A cake business is generally run out of a bakery with a commercial kitchen. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location :
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a cake business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• If you plan to purchase or build a location :
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your cake business will be in compliance and able to obtain a CO.

Food Regulations

When selling food, you will need licensing from a local health department; all establishments serving food are required to pass a health inspection. Tips for faring well on a health inspections

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Cake Business needs and how much it will cost you by reading our guide Business Insurance for Cake Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a cake business

Word of mouth will, ultimately, be your strongest marketing tool. While building your reputation, consider free online resources, such as social media and local business registries. If you become a member of any organizations, inquire about their online listings, which is often offered free of charge to members. Distribute mailers within the community and become a sponsor for local charity events. Many communities have charity events that feature local chefs; take part in these to gain exposure.

Approach wedding and party planners in the area. These professionals are often asked for recommendations. If you partner with the right ones, your business could soar with very little marketing effort.

How to keep customers coming back

Your clients are looking for the ultimate, mouth-watering experience. The right recipe will speak for itself, offering a perfect blend of flavors and design. That, coupled with premier customer service will help you build a solid foundation of customers. When exploring new recipes or designs, ask your customers for input. Your clients will see that you consistently strive for new innovation and that their opinion matters to you.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Some of the most skilled chefs claim to fall short when it comes to baking. Are you one of the fortunate few who are skilled at baking? Are you passionate about the art of cake decorating and enhancing someone’s life celebration? Have you often pondered the benefits of being your own boss? If your answers were “yes,” opening your own cake business could be the perfect opportunity to realize your professional and personal goals.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a cake business?

Each day will be structured differently from the next, depending upon the orders you have lined up and how you’ve decided to structure your business. Many cake businesses forego a storefront location, focusing solely on custom orders. If you do choose a brick and mortar location, you will need to spend additional time baking, so that custom orders are met and displays are filled regularly. Once cakes are baked and decorated, orders should be packaged for delivery.

For many bakers, wedding cakes are their biggest revenue generators. To insure the cake arrives safely to the venue and is presented correctly, these works of art are often delivered and set up by the bakers, themselves. If wedding cakes are something you wish to offer, plan on devoting a portion of each day for transporting these goods. Most prospective customers will also want to have a taste-testing session prior to placing an order. This is an opportunity to build a relationship with the client, showing them how your creations stand out above the competition. It also gives them a chance to make decisions regarding the flavors and decor of the cake.   

Cleanliness sets the professional apart from the hobbyist. A baker’s kitchen is like a sanctuary and must be treated as such. It should be thoroughly cleaned after each order is filled, and at the end of the day. Since each creation required a different set of ingredients, replenishing baking supplies is typically done on a weekly or bi-weekly basis.

During your downtime, you will want to split your attention between perfecting new recipes/sharpening your skills and tending to administrative tasks. Customers will have questions and concerns that must be addressed and books must be balanced. To insure a steady flow of clients, it’s also critical that a marketing strategy be implemented and remain a consistent part of each day.

What are some skills and experiences that will help you build a successful cake business?

While this industry offers many opportunities for success, it is a competitive market. For long-term success, you must be a skilled baker and decorator, with a natural eye for color, and a steady, artistic hand. Industry leaders have a natural ability for blending flavors and textures. Additionally, a drive and passion for continuously seeking out ways to better your products is what will help position you as a leader in the community.

Running a successful cake business requires a set of skills that goes beyond the kitchen. Strong business management and marketing acumen are both critical to the company’s success. If this is not your strong suit, consider utilizing resources such as American Bakers Association or International Association of Professional Cake Decorators (IAPO) . Both offer industry-specific advice and resources to members, as well as networking opportunities. Keep your interpersonal skills sharp by interacting with consumers in your community, as well as bakers from around the world. This not only serves as a powerful marketing tool, it offers a unique opportunity to remain on top of industry trends and needs.

Before embarking on this business venture, it is recommended that you spend some time working in the industry. Identify well-respected bakers in the community and work closely with them. If you are committed to this business long-term, study under several different cake artists. Take note of their strengths, both in and outside of the kitchen. Compiling this information into your own business plan will assist in positioning you as a well-respected cake baker. When you’ve realized success, be sure to support the industry by mentoring other aspiring bakers.

What is the growth potential for a cake business?

The baking industry exceeded $50 billion in sales in 2016, with those numbers expected to grow exponentially in the coming years. Most cake business owners start out small, working out of their homes or a small public kitchen. Many choose to remain small and local, content with servicing the needs of their community. The opportunity is there, however, to expand your cake business based on your personal and professional goals. Once you’ve established a name in the industry, you could share your secrets with other aspiring bakers, opening additional locations in your area, or on a national scale.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a cake business?

Industry leaders indicate the following tips helped position them for success:

• While it adds another element to the business structure and budget, offering delivery takes customer service to a higher level.
• Don’t try to invest in everything at once. Much like your ingredients, purchase your kitchen tools on an as-needed basis.
• When you find the perfect ingredient and kitchen tool brand, stick with it. This will help ensure consistency, which is critical to the business’ success.
• A well-thought-out pricing guide not only defines your profits, but is a reflection on your brand. If you price too high or low, you will only attract a certain level of customer. Consider who you wish to cater to and your quality of product as part of the process.

How and when to build a team

While building the business, you will likely need to wear many hats. To deliver quality products consistently, however, it’s important that you recognize when it is time to start building your team. If wedding cakes are something you offer, a professional representative must make sure the cake arrives safely, on time, and is displayed properly. Many experienced bakers choose to mentor culinary students. The students then receive the class credits and education they need and the baker gets quality help at a fraction of the cost.

Whether you oversee a team of one or twenty, it is your business’ name and reputation at stake. Therefore, it is vital that you only employ individuals who are dedicated to your company’s mission. Each employee should also possess the drive to consistently grow and sharpen their skills. Encourage employee growth and loyalty by investing in their continued education. An engaged employee will be loyal to the cause and contribute tenfold to the business’ success.

Useful Links

Industry opportunities.

• American Bakers Association

Real World Examples

• Queen of Cakes

Further Reading

• How to Start a Successful Cake Business
• How to Start a Home Bakery

Have a Question? Leave a Comment!

• Business Ideas
• Registered Agents

How to Start a Cake Business in 14 Steps (In-Depth Guide)

Updated:   January 24, 2024

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The cake industry earned over $51 billion in 2022 . The market continues to expand at a projected compound annual growth rate (CAGR) of 3.29% from 2022 and 2028. With custom cakes and fondant art continuing to trend on social media, the demand for creatively decorated cakes outstrips what most retail bakeries offer.

From starting a cake pop bakery to a boutique wedding cake business, the possibilities are vast for those with skill, passion, and a bit of business savvy. The cake community also thrives on sharing knowledge, meaning abundant free resources are available online.

This guide will walk you through how to start a cake business. Topics include food business market research, competitive analysis, observing cottage food laws, forming an LLC, obtaining business insurance, and other details integral to starting your own cake business.

1. Conduct Cake Market Research

A cake decorating journey isn’t completed blindly in business. From local laws to trends in birthday cakes, market research is important for starting a successful cake business. It offers insight into local competitors, fluctuations in the home baking business market, and details on your target market and potential customers.

Key factors driving growth include:

• The rise of social media spurring demand for customized and elaborately decorated specialty cakes.
• Increased consumer spending power on small indulgences.
• The growth of cottage industries allows at-home bakers to sell online.
• While large commercial bakeries focusing on cost leadership dominate grocery and big box store channels, the highest profit margins exist in specialty cakes.
• The personalized and elaborate wedding cake segment alone is estimated to be worth $380 million. The decorated and custom cake segment expects strong continued growth.
• Despite market saturation in some sales channels, independents can still competitively enter by differentiating into a niche specialty.
• Starting as a home-based business allows testing concept viability at lower risk and overhead.
• Mobile treat trucks and cake pop kiosks provide other low-barrier opportunities.
• Upfront costs to launch a home-based cake business can be as little as $2,000-$5,000 depending on existing kitchen equipment and level of customization.
• Some equipment like stand mixers and baking tools can be acquired secondhand further reducing startup costs.
• While larger corporate bakeries focus on mass production efficiency, independents can build a loyal customer base through quality ingredients, customization, and forming community relationships.
• The rise of cottage industry laws and the availability of commercial kitchen rentals further enables small independents to legally grow.

Overall the cake industry remains steadily growing and not yet saturated. Opportunities remain for differentiated concepts to carve out market share both online and offline. The custom and specialty cake segment provides particularly strong profit potential.

2. Analyze the Competition

Conduct an online search for local cake bakeries and businesses decorating cakes to understand store proximity, offerings, and price points. Sites like Google Maps and Yelp provide customer reviews and help benchmark product quality and service levels.

Some ways to get to know cake decorating and baking competitors include:

• Analyze bakery websites and social media presence for branding, photography styles, products, and engagement levels.
• Visit physical bakery locations to evaluate the in-person experience.
• Research best practices for assessing competitive online presence.
• Analyze competitor product assortment and pricing across categories like wedding cakes, cupcakes , custom designs, ice cream , and other everyday treats.
• Price compare commodity items to understand market rate expectations in the area and opportunities for differentiation with premium ingredients.
• Regularly order competitor products under mystery shopper pretenses.
• Critically evaluate if quality and execution live up to branding, pricing, and external presentation.
• Use insights to outline where the competitor falls short and how you might improve upon their offerings with your unique concept.

Ongoing competitive analysis both online and through in-store experiences allows new cake entrepreneurs to carve out a unique niche, exceed local quality and service standards, optimize online discoverability, and regularly adapt offerings based on evolving demand.

3. Costs to Start a Cake Business

Starting a cake business requires both upfront investments and ongoing expenses. Here is a detailed breakdown of estimated costs to help new entrepreneurs budget and prepare:

Start-up Costs

• Initial Startup Costs: -$1,000 – Legal, licensing, permits – Costs to formally register business, comply with cottage food laws or local health codes
• $3,000 – Bakery equipment – Essential tools like stand mixers, ovens, pans, decorating bags, etc. Secondhand can reduce costs
• $1,500 – Ingredients, packaging – Initial inventory of baking staples, boxes, stickers, ribbons
• $500 – Kitchen storage and small wares – Containers for storage organization, piping tips, spatulas, thermometers
• $1,000 – Point of sale, accounting software – Tracking sales, costs, managing invoicing
• $500 – Marketing collateral – Business cards, logo design, website domain, and template
• $250 – Insurance policy – General liability to protect against risk exposure

The total estimated costs to start a cake shop run around $7,750.

Ongoing Costs

Fixed monthly costs differ slightly from initial startup expenses, including:

• $800 – Commercial kitchen rental – Shared access for permits, scaling
• $500 – Online expenses – Website hosting, subscription tools, paid ads
• $300 – Accounting services – Outsourcing bookkeeping, tax prep
• $150 – Packaging supplies – Baked goods containers, labels, paper goods
• $600 – Business license renewal fees
• $500 – Equipment maintenance/replacements
• $1000 – Insurance policy
• $3000 Marketing – Photography, advertising, expo booths

Bakers must balance upfront investments to minimize startup costs against variable expenses that rise in step with increased sales and distribution reach. Starting lean initially allows testing proof-of-concepts at lower risk.

4. Form a Legal Business Entity

Selecting the right business structure is an important decision for new cake entrepreneurs. The most common options each come with pros and cons to weigh:

Sole Proprietorship

A sole proprietorship provides the easiest and lowest cost setup. Little paperwork is required beyond usual permits and licenses. Owners benefit from simpler tax preparation by using a Schedule C personal tax return. However, the owner assumes unlimited personal liability for debts and obligations of the business.

Partnership

Partnerships like general partnerships allow multiple owners to combine expertise under one business. However, each partner is jointly liable for the actions of the other partners including debts, contracts, and liability claims. Partnership interests may also be difficult to transfer if an owner chooses to exit the partnership.

Limited Liability Company (LLC)

A Limited Liability Company (LLC) provides personal asset protection for the owners while avoiding double taxation. Profits and losses pass through to personal returns similar to a partnership while owners enjoy liability protection like a corporation. Startup costs tend to be low and there is greater flexibility to treat owners as partners or corporate shareholders depending on the situation.

Corporation

A corporation provides the strongest protection from personal liability but comes with more complex tax filings and start-up paperwork. Double taxation occurs on corporate profits.

Overall an LLC can provide the best pass-through tax benefits with liability protections to shield personal assets as a cake business scales.

5. Register Your Business For Taxes

An Employer Identification Number (EIN) serves as a business’s tax ID number with the IRS for tax purposes. Sole proprietors without employees can use their SSNs, but formal business structures like LLCs must obtain an EIN.

Applying online takes only minutes:

• Navigate to the IRS EIN Assistant
• Answer questions about business structure, owners, and activities
• Provide owner’s SSN when prompted
• Obtain EIN immediately upon submitting an application

The EIN is required for opening business bank accounts, paying employees, filing state taxes, and more. Speaking of state taxes, cake entrepreneurs should also register with their Secretary of State to obtain sales tax permits. This enables charging sales tax on transactions with customers within state borders. Registration fees are typically less than $100 annually.

Applying online for an EIN takes less than 15 minutes, can be done from anywhere, and is completely free for new business owners. The EIN and state sales permits provide the essential legal scaffolding around which cake entrepreneurs can then build their delicious empires!

6. Setup Your Accounting

Proper financial management and accounting practices are crucial for cake business success. Neglecting books can lead to painful IRS headaches down the road.

Accounting Software

Investing in tools like QuickBooks automates tracking income, expenses, account reconciliations, and balances across integrated business bank accounts and credit cards. This eliminates manual paperwork and provides real-time financial insights.

Hire an Accountant

Outsourcing to an accountant optimizes taxes and ensures full legal compliance. Typical monthly bookkeeping services like payroll, data entry, and report generation run $200-$500. Come tax season, accountants can save more than their fees by maximizing write-offs and credits. Form preparation starts at around $500.

Open a Business Bank Account

Keeping business finances fully separate provides better transparency into true profitability and is vital for accurate tax deductions. Apply for dedicated business checking/savings accounts and credit cards solely used for company purposes.

Apply for Business Credit Cards

Business credit cards allow tracking baking expenses separately from personal purchases. Issuers determine limits based on business revenue and creditworthiness rather than personal scores. Have your EIN and associated legal documents ready to apply.

7. Obtain Licenses and Permits

Before selling a single cupcake, new cake entrepreneurs must ensure all required licenses and permits are in order. and federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

A food handler’s permit ensures basic food safety knowledge for preparing commercial goods. While requirements vary by jurisdiction, most counties require at least one employee present with this certification during operating hours. Courses start around $7 and are offered online for convenience.

A cottage food license provides home bakers an affordable entry to legally sell non-hazardous goods. Thirty states currently allow selling specific low-risk items from home kitchens directly to consumers.

Commercial kitchen rental agreements enable scaling baking production while complying with health codes. Until a full retail location opens, renting shared licensed space by the hour allows businesses to grow. Monthly memberships providing storage space and equipment access start around $200 on average.

General business licenses are typically required within merchants’ county, city, or town jurisdictions. Fees vary greatly but provide legal operating authority locally for a cake shop. Some municipalities require additional permits for signage or before construction improvements.

The regulatory environment for bakers strikes a balance between encouraging entrepreneurship and protecting public safety. Navigating licenses and permits may seem tedious but helps businesses avoid legal pitfalls down the road.

8. Get Business Insurance

Business insurance protects cake entrepreneurs against unexpected catastrophes that could create companies lacking adequate coverage. Policies shield against financial risks like property damage, employee injuries, and liability claims.

Without insurance, scenarios that could lead to bankruptcy include:

• A fire destroyed $15,000 of commercial baking equipment and food inventory with no funds to replace losses
• Slip and fall accident by an employee or customer generating a $50,000+ medical claim without protection
• Foodborne illness tied back to a bakery item resulting in a lawsuit seeking hundreds of thousands in damages

Safeguarding your livelihood is essential. Comprehensive policies start at around $500 annually. Key steps to get insured include:

• Assess operations risks needing coverage like property, commercial auto, liability, food spoilage, or employee benefits
• Obtain quotes from multiple business insurance providers like CoverWallet using your EIN
• Review policy terms to understand exclusions, limits, and deductibles before binding coverage
• Provide necessary business details including proof of licensing, permits, affiliations
• Submit payment to activate coverage immediately in as little as one week

Don’t let a fire or court case melt away years of hard work. Protect your cake empire through business insurance tailored for bakers.

9. Create an Office Space

As cake businesses scale, dedicated office space helps improve productivity and professionalism when meeting clients. Options balancing affordability and capabilities include:

Home Office

Converting spare rooms or basements into workspace runs a low cost of around $100-500 to set up desks and WiFi. Meetings with clients can get awkward in personal living spaces, however.

Coworking Space

Shared offices like WeWork provide stylish, flexible memberships for $300-800 monthly. Basic tiers offer mailing addresses, printing, and conference rooms to host client tastings without bringing strangers home.

Retail Shop Office

Eventually opening a bakery retail location provides a built-in office at the cost of commercial real estate. Storefronts have the bonus of showing off products to walk-in traffic.

Commercial Space

Standalone office space leases Class A small units starting around $1,000 monthly. Keeping bakery operations and corporate/sales functions separate may make sense as specialization occurs.

10. Source Your Equipment

Launching a cake business requires outfitting a commercial kitchen with essential baking equipment. Aspiring entrepreneurs have options to acquire necessary ovens, mixers, pans, and decorating tools through buying, renting or leasing:

New Equipment

One-stop restaurant supply retailers like WebstaurantStore sell quality ingredients, small wares, and commercial-grade ovens/ fridges priced at $5,000. Budget start-up kits offer basic gear bundles too.

Used Listings

Gently used professional equipment gets resold at 25-50% discounts on Craigslist and Facebook Marketplace regularly. Buying secondhand quality gear reduces startup costs.

Tool rental companies like Baker’s Buddy rent commercial ovens and mixers by the week for under $200. Allows flexing capacity for large orders without huge upfront buys.

Leased Equipment

Some specialty leasing firms offer 0% short-term finance deals on ovens, showcases, and front-of-house bakery gear. Build credit history while keeping initial cash outlay lower.

11. Establish Your Brand Assets

Establishing a strong brand builds dedicated customer followings for cake businesses through consistent visual identity and messaging. Key assets require investment upfront but pay dividends through improved recognition and preference.

Get a Business Phone Number

Getting a unique phone number through providers like RingCentral boosts professionalism when booking client calls and orders. Choose one easy-to-remember number to display prominently across all touchpoints.

Design a Logo

A logo symbolizes the personality and values of a brand. Bold, friendly designs fitting cake shops can be created affordably using online logo makers like Looka starting at $20. Modern options like letter marks and badges make memorable impacts.

Print Business Cards

Business cards enable making great first impressions when meeting prospective clients and partners. Include cards with every order to generate referrals. Providers like Vistaprint print full-color cards for under $20.

Buy a Domain Name

Purchasing a domain locks in a web presence and conveys success by owning the ideal .com match to your business name. Sites like Namecheap make registering domains fast with packages from $9 annually.

Design a Website

Building a custom website engages visitors with the brand story and offerings. Low-cost DIY site builders like Wix provide professional templates for $4 monthly. For fully custom designs, specialized web developers can be hired affordably on sites like Fiverr .

12. Join Associations and Groups

Beyond scouring Pinterest for cake recipes and decorating tutorials, bakery entrepreneurs should tap local communities for mentorship and growth. Connecting with regional groups and associations builds networks to learn industry best practices.

Local Associations

Seeking out regional American Bakers Association chapters provides wildcard entry into the global confectionary creative scene. These tight-knit circles share trends, techniques, and business wisdom from established professionals.

Local Meetups

Sites like Meetup centralize browsing upcoming tradeshows, seminars, and networking nights for the local cake community. Rubbing elbows in person often leads to mentorships and collaborations down the road.

Facebook Groups

Diving into Facebook Groups like Cake Business Secret and Cake Baking and Decorating in the USA builds connections while giving back. Share your wins and hurdles to pay it forward to the next generation of buttercream bosses.

13. How to Market a Cake Business

Marketing is oxygen for cake businesses seeking growth. While word-of-mouth referrals from delighted customers provide the most valuable endorsements organically, bakers must also dedicate time and budget towards targeted promotions to sustain momentum.

Referral Marketing

Offering referral rewards incentives like discounts or free treats to happy patrons activates brand ambassadors. A simple “Bring a friend, get a free cupcake” campaign easily stimulates sharing and activations.

Digital Marketing

Digital channels provide affordable, trackable customer acquisition opportunities:

• Google Ads targets hungry searchers proactively seeking sweet treats at the moment based on keywords
• Facebook and Instagram ads showcase mouthwatering designs while collecting contact info via lead gen forms
• Creating YouTube tutorials or TikTok shorts spotlight skills and provide value to earn clicks and follows
• Email marketing nurtures relationships with fans to announce new creations or promotions

Traditional Marketing

Traditional outlets still wield influence in the local community:

• Partnering with complementary vendors like florists or event venues on co-branded promotions
• Donating goods to charity galas or school functions to mix with influential crowds
• Securing product placement or features in regional print food and small business magazines

A blended approach allows cake makers to intrigue taste buds while budgets allow experimentally determining optimal channels delivering real conversions. Consistently quantifying performance and doubling down on what moves the metrics converts curiosity into sales.

14. Focus on the Customer

Delivering exceptional customer service is the tastiest recipe for driving repeat business and referrals. Each client interaction for a cake shop presents an opportunity to create a memorable experience.

Carefully listening to custom order requests rather than dictating options shows respect for individual preferences. Giving a sneak peek at decoration progress via mobile pic builds excited anticipation. Presenting the final creation with a smile (and bonus macarons) sparks delight.

Following up after major events like weddings demonstrates genuine care beyond just transactions. Though time-consuming, handwritten thank-you notes stand out hugely for thoughtfulness. Seeking candid testimonials gives satisfied customers a soapbox.

With each feel-good touchpoint, the seeds of brand loyalty grow. When friends later inquire for celebratory confection recommendations, enthusiastic referrals for the shop providing such attentive service (and extras!) come instinctively.

Cultivating true customer relationships earns businesses that are more than transactions but become community pillars. The reciprocity of outstanding experiences exchanged for enduring support sustains brands for the long haul. It turns out the most essential ingredient is love, with a spoonful of sugar on top.

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BUSINESS STRATEGIES

How to create a bakery business plan

• Annabelle Amery
• Oct 29, 2023
• 12 min read

When launching your bakery business , the first step is to whip up a detailed and well-crafted business plan. Think of it as the secret recipe for your bakery's success. This document isn't just a list of ingredients; it's your roadmap to achieving your goals, whether you're baking artisanal bread, delightful pastries or delectable cakes. Your bakery business plan will help you navigate the sweet and savory challenges of the industry, ensuring your path to success is as delightful as your treats.

So if you're looking to start a business in the baking industry, keep reading for instructions on how build a strong business plan.

Ready to get baking? Use Wix to build a business website and learn how to make a bakery website .

Why create a bakery business plan? Key benefits to consider

Crafting a bakery business plan is important for several reasons. First, it forces you to conduct thorough market research and analysis, helping you gain insights into your target market's preferences, trends and competition. This information is vital for designing a product lineup that resonates with customers and stands out in the crowded baking market.

A well-structured business plan aids in clarifying your bakery's unique value proposition as well. By clearly defining what sets the bakery apart from its competitors, you can effectively communicate your brand's identity and build a strong customer base.

Beyond all this, your business plan lays out a detailed operational plan, outlining your bakery's workflow, supply chain management, staffing requirements and equipment needs. This level of detail is crucial to ensure smooth day-to-day operations and efficient resource allocation.

Finally, a bakery business plan is a vital tool for raising money for your business whether from investors, lenders or stakeholders. It demonstrates your commitment, understanding of the industry and your business's potential for profitability. It can help potential investors gauge your bakery's revenue-generating capacity and projected returns on investment.

How to create a bakery business plan in 6 steps

So how do you go about crafting your plan? In the upcoming sections, we'll guide you through six essential ingredients of a bakery business plan.

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

An executive summary is a concise and compelling overview of your bakery business plan, designed to capture the reader's attention and provide a snapshot of the entire plan. This section should be written last (after you've crafted the rest of the plan), to ensure that it accurately reflects the key points and highlights of your bakery business venture.

When writing an executive summary for a bakery business plan, aim to include the following elements:

Briefly describe the core concept of your bakery business. Highlight what sets it apart from competitors and emphasize your unique value proposition.

Summarize the market research you've conducted to identify your target audience, market trends and growth opportunities.

Provide a high-level overview of your financial projections, including revenue estimates, startup costs and potential profitability.

Outline the short-term and long-term goals you aim to achieve with your bakery business.

Introduce key members of your team and highlight their relevant expertise for this type of business .

Mention any funding requirements you have and how the funds will be utilized to support the bakery's growth.

Conclude with a compelling statement that encourages readers to explore the rest of the business plan.

Example of an executive summary for a bakery

"Sweet Delights Bakery is a specialty bakery poised to revolutionize the local dessert scene with its artisanal approach and innovative flavors. Our commitment to using organic and locally-sourced ingredients sets us apart in a market craving healthier alternatives. With a target demographic of health-conscious consumers and a focus on catering to dietary preferences, we anticipate tapping into an underserved niche.

Our projected revenue for the first year is $300,000, with startup costs totaling $100,000. By year three, we aim to achieve profitability and expand our reach to neighboring towns. With a team that brings together culinary expertise and marketing prowess, we are well-equipped to execute our vision.

We seek $75,000 in funding to secure a prime location, procure high-quality equipment and launch an impactful marketing campaign. Sweet Delights Bakery is poised to become a local favorite and a go-to destination for unique and guilt-free indulgences."

02. Business and domain names

Naming a business is critical for brand recognition and online presence. A business name generator can help spark ideas and ensure your restaurant business name aligns with your bakery's identity.

For instance, if your bakery focuses on gluten-free treats, a name like "PureBites Bakery" reflects your commitment to wholesome ingredients. Once you decide on a company name, ensure that a corresponding domain name is available. Your domain name should be memorable, easy to spell and closely related to your bakery's name. Avoid complex names that can confuse potential customers.

Once you’ve landed on a business name, you’ll want to learn how to register a business .

03. Market analysis and research

Including a comprehensive market analysis in your business plan is crucial for understanding the competitive landscape and shaping your business strategy. Conduct market research to identify your target audience's preferences, behaviors and spending habits. Analyze your competitors' strengths and weaknesses to find opportunities for differentiation.

By understanding market trends and consumer needs, you can tailor your bakery's offerings and marketing messages effectively. Use this analysis to develop a unique value proposition that resonates with your target customers, ultimately setting your bakery apart in a crowded market.

04. Operations plan

The operations plan is a pivotal section of your bakery business plan, outlining the practical aspects of running your business effectively. This includes selecting an appropriate location, detailing the layout and design of your premises, identifying the necessary equipment for baking (alongside packaging and display) and specifying your staffing needs.

For instance, in the operations plan, you would detail how your bakery's layout promotes efficient workflow and customer engagement. You'd also discuss equipment like ovens, mixers, refrigerators and display cases that are essential for your bakery's operations. Staffing needs would include roles like bakers, decorators, cashiers and customer service representatives.

05. Marketing and advertising plan

The marketing and advertising plan outlines how you'll promote your bakery business to your target audience. Consider a mix of strategies such as using social media platforms, such as Instagram or Facebook, to showcase your visually appealing baked goods and engage with customers.

Additionally, you can build local partnerships by collaborating with local cafes or businesses for cross-promotions. This can include hosting tastings or events to introduce your products to the local community.

Consider making a website where customers can browse your offerings and place orders. A website builder like Wix can help you get online fast. From there, you can market and sell your goods as well as build an email list for newsletters and promotions to keep customers informed about new products.

Need some help building up your brand? Check out these bakery logo ideas and Wix’s free logo maker , as well as our guide on how to make a bakery logo .

06. Financial plan

The financial plan is a crucial part of any bakery business plan as it outlines the financial aspects of your venture. It includes cost to start an LLC if relevant, other startup costs, projected revenue, expenses and profitability timelines. Clearly define your funding needs, whether through personal investment, loans or investors.

The financial plan should encompass a break-even analysis, highlighting the point at which your bakery covers its expenses and starts generating profits. It's essential to provide realistic financial projections based on market research and industry benchmarks.

Bakery business plan example: SweetBite Bakery

Part 1: executive summary.

SweetBite Bakery is a gourmet dessert destination set to captivate dessert enthusiasts with its delectable creations. Our commitment to crafting unique and artistic desserts using premium ingredients positions us as a standout in the bakery industry. With a focus on custom-designed cakes and intricate pastries, we aim to elevate the dessert experience for our customers.

We anticipate generating $500,000 in revenue in our first year, with a startup investment of $150,000. Our team of skilled pastry chefs and experienced business professionals are well-prepared to execute our vision. We're seeking $100,000 in funding to secure a prime downtown location, invest in state-of-the-art baking equipment and launch an immersive marketing campaign.

Part 2: company and domain names

Company name: SweetBite Bakery

Domain name: www.sweetbitebakery.com

Part 3: marketing analysis and research

Through comprehensive market research, we've identified a niche for exquisite custom desserts in our target area. The bakery landscape lacks specialized gourmet options, providing us a significant opportunity for differentiation. Consumer preferences for unique, visually appealing treats and the growing trend of personalized celebrations further support our concept.

Part 4: operations plan

Location: We'll secure a charming storefront in the heart of the city, attracting foot traffic and enhancing visibility.

Premises: The bakery's interior will exude a cozy yet sophisticated ambiance, reflecting our premium offerings.

Equipment: Our bakery will be equipped with top-tier ovens, mixers and presentation displays to ensure the highest quality.

Staffing: We'll hire skilled pastry chefs, decorators and front-of-house staff to provide exceptional customer service.

Part 5: marketing and advertising plan

Social media: Engage customers through Instagram by showcasing our artistic creations and behind-the-scenes processes.

Local partnerships: Collaborate with local event planners and venues for special occasions and catering opportunities.

Tastings and events: Host weekly dessert tastings to introduce our offerings and build a loyal customer base.

Online presence: Launch an interactive website where customers can explore our menu order customized treats and stay updated on our latest creations.

Email marketing: Build an email subscriber list to share exclusive promotions, seasonal specials and upcoming events.

Part 6: financial plan

Startup investment: $150,000 (from personal savings and a small business loan)

Projected first-year revenue: $500,000

Projected first-year expenses: $350,000

Profitability timeline: By the end of the second year

Bakery business plan example: Wholesome Harvest Bakery

Wholesome Harvest Bakery is a health-conscious bakery determined to revolutionize baked goods by focusing on natural, nutritious ingredients. Our dedication to producing wholesome treats and accommodating various dietary preferences positions us as a pioneer in the health-oriented bakery market.

In our first year, we anticipate generating $350,000 in revenue, with startup costs totaling $100,000. Our diverse team of nutritionists and bakers are poised to execute our mission. We're seeking $75,000 in funding to secure a local storefront and invest in equipment that aligns with our health-focused approach.

Company name: Wholesome Harvest Bakery

Domain name: www.wholesomeharvestbakery.com

Our market analysis reveals a growing demand for healthier bakery options due to increased health awareness. With a focus on gluten-free, vegan and sugar-free offerings, we aim to cater to health-conscious consumers seeking guilt-free indulgence.

Location: We'll secure a location near fitness centers and health food stores to target our niche market.

Premises: Our bakery interior will reflect a fresh and natural ambiance, showcasing our commitment to health.

Equipment: We'll invest in specialty ovens and equipment that align with our ingredient-focused approach.

Staffing: Our team will comprise of nutrition experts, experienced bakers and customer service professionals.

Social media: Utilize Instagram and Pinterest to share health tips, recipe insights and showcase our nutrient-rich treats.

Local partnerships: Collaborate with gyms, wellness centers and yoga studios to cross-promote healthy living.

Tastings and events: Host workshops on healthy baking and nutrition, attracting a community of health enthusiasts.

Online presence: Develop a user-friendly website with detailed nutritional information, allowing customers to order online.

Email marketing: Regularly send out newsletters with recipes, health tips and exclusive discounts to our subscribers.

Startup investment: $100,000 (personal savings and a small business loan)

Projected first-year revenue: $350,000

Projected first-year expenses: $250,000

Profitability timeline: By the end of the first year

How profitable is owning a bakery?

Yes, owning a bakery business can be profitable, but it is important to note that it is not a get-rich-quick scheme. Bakeries have thin profit margins, so it is important to carefully manage costs in order to be successful. However, there are a number of things that bakery owners can do to increase their profitability, such as:

Offering high-quality baked goods and coffee

Providing excellent customer service

Marketing their bakery effectively

Offering catering services

Selling merchandise, such as aprons, cookbooks, and gift baskets

Controlling costs by using fresh, seasonal ingredients and making products in-house

It is also important to choose a good location for your bakery. A high-traffic area with good visibility is ideal. Additionally, it is important to consider the competition in the area. If there are already a number of successful bakeries in your area, you may need to offer something unique to differentiate yourself from the competition. If you are willing to put in the hard work and dedication, owning a bakery business can be a rewarding and profitable experience. Here are some tips for increasing the profitability of your bakery business:

Focus on high-margin items. Some items, such as cakes and cupcakes, have higher profit margins than others, such as bread and pastries. Focus on offering a mix of high-margin and low-margin items to keep your customers happy and your profits up.

Reduce costs. There are a number of ways to reduce costs in your bakery business, such as using energy-efficient equipment, buying in bulk, and making products in-house.

Increase sales. There are a number of ways to increase sales in your bakery business, such as offering catering services, selling merchandise, and offering loyalty programs.

Market your business effectively. Make sure people know about your bakery by marketing your business online and offline.

By following these tips, you can increase the profitability of your bakery business and achieve your financial goals.

What are the disadvantages of owning a bakery?

Owning a bakery can be a rewarding experience, but it's important to be aware of the disadvantages before starting a bakery business. Some of the disadvantages of owning a bakery include:

Long hours and hard work. Bakers often work long hours, especially during busy times, such as holidays and weekends. Baking is also physically demanding work, and bakers often have to stand for long periods of time.

Thin profit margins. The profit margins for bakeries are thin, so it's important to carefully manage costs in order to be profitable.

Competitive landscape. The bakery industry is a competitive one, so it's important to differentiate your bakery from the competition.

Perishable products. Bakery products are perishable, so it's important to manage inventory carefully to avoid waste.

Food safety concerns. Bakeries must adhere to strict food safety regulations to protect customers from food poisoning.

Reliance on suppliers. Bakeries rely on suppliers for ingredients and supplies. If a supplier has a problem, it can disrupt your business operations.

Seasonality. Bakery sales can vary depending on the season. For example, sales may be higher during the holidays and lower during the summer months.

Customer expectations. Customers expect fresh, high-quality baked goods. It's important to meet these expectations in order to keep customers coming back.

Employee turnover. The bakery industry has a high employee turnover rate. This can make it difficult to find and retain qualified staff.

Despite the disadvantages, owning a bakery can be a rewarding experience. Bakeries play an important role in the community, and many bakers enjoy the satisfaction of creating delicious and beautiful baked goods that people love.

What mistakes do startup bakeries make?

Some of the most common mistakes that startup bakeries make include:

Underestimating the costs. Starting a bakery can be expensive. It's important to carefully estimate all of the costs involved before starting your business. This will help you to avoid financial problems down the road.

Overestimating demand. It's important to be realistic about the demand for your baked goods. Don't overproduce baked goods or you will end up wasting money.

Not marketing their business effectively. Make sure to market your bakery business effectively in order to attract customers. Don't be afraid to invest in marketing strategies and advertising.

Not offering a diverse product mix. Offer a diverse product mix to appeal to a wide range of customers. Don't just focus on one type of baked good.

Not having a good business plan. A business plan is essential for any business, but it's especially important for startups. A business plan will help you to define your business goals, strategies and financial projections.

Bakery business plan FAQ

What is the most profitable bakery item.

The most profitable bakery item varies depending on the region and the type of bakery. However, some of the most profitable bakery items include:

Coffee and tea

What is the failure rate of bakeries?

Can i start a bakery with no money, are bakeries hard to start, want to create another type of business plan.

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Cake Business Plan Template & Guidebook

Starting a cake business can be a daunting but rewarding experience. But, without the right plan in place, it can be difficult to navigate the complex world of business start-ups and know where to begin. Luckily, there is hope for the aspiring cake entrepreneur with The #1 Cake Business Plan Template & Guidebook; the ultimate one-stop solution for all your cake business needs.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Cake Business [11 Steps]
• 10+ Best & Profitable Cake Business Ideas [2023]

How to Write a Cake Business Plan in 7 Steps:

1. describe the purpose of your cake business..

The first step to writing your business plan is to describe the purpose of your cake business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a cake business:

Our mission is to create delicious, artistically crafted cakes for our customers in order to bring them joy and celebrate their special occasions. We strive to be the go-to custom cake shop by providing quality service and high-quality products.

2. Products & Services Offered by Your Cake Business.

The next step is to outline your products and services for your cake business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your cake business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your cake business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your cake business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a cake business?

• Industrial kitchen/bakery
• Permits (food safety, business license, etc.)
• Mixers and baking tools (pans, bowls, spatulas, etc.)
• Refrigeration
• Packaging & Delivery Supplies (bags/boxes, tape, labels)
• Weighing scale
• Ingredients (flour, sugar, eggs, etc.)

5. Management & Organization of Your Cake Business.

The second part of your cake business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your cake business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Cake Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a cake business varies based on many different variables, but below are a few different types of startup costs for a cake business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your cake business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your cake business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your cake business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Cake Business Plans:

Why do you need a business plan for a cake business.

A business plan for a cake business is important for laying out the strategy for starting and running the business. It allows entrepreneurs to outline their goals, establish a timeline for success, identify potential risks and opportunities, and ensure that all necessary resources are in place. A business plan can also be used to secure financing, attract investors, and build relationships with lenders or potential partners.

Who should you ask for help with your cake business plan?

You should ask a business consultant, an accountant or a lawyer for help with your cake business plan. You may also consider talking to other successful business owners in the same industry for advice and ideas.

Can you write a cake business plan yourself?

Writing a business plan can be a daunting task, especially if you are unfamiliar with the process. If you do not feel comfortable writing the business plan yourself, you may want to consider hiring a professional consultant to assist you in developing your business plan. A professional consultant can provide guidance and expertise to ensure that your plan is comprehensive and well-structured. Additionally, they will be able to help you think through potential challenges and solutions for different aspects of your business.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Small Business Trends

How to start a cake business: bake your way to profit.

Are you a baking enthusiast with dreams of turning your passion into a profitable venture? The world of cake businesses offers a tempting avenue for aspiring entrepreneurs.. and the sweetest part? You can do it all from the comfort of your own home.

In a time when homemade goodness resonates with consumers, the popularity of home baking businesses is on the rise. From beautifully crafted wedding cakes to delectable cupcakes, starting a cake business at home can be a recipe for success.

Is a Cake Baking Business Profitable?

With the growing demand for unique and custom-made baked goods, the profitability of a cake business is undeniable.

Recent statistics indicate a steady increase in the revenue generated by the baking industry. In 2020, the baking industry’s global market value has already exceeded 331 billion and grown since. In fact, it’s expected to reach $437 billion by 2026 .

This trend is fueled by the desire for personalized celebrations and an appreciation for artisanal creations.

If you possess baking skills and creativity, the prospects of a profitable home baking business are indeed enticing.

Steps to Start a Home Baking Business

Embarking on the journey of launching your home baking business is an exciting endeavor that blends your passion for baking with entrepreneurial aspirations.

The aroma of freshly baked goods, coupled with the joy of crafting delectable treats, makes this venture all the more enticing.

To set you on the path to success, let’s explore the step-by-step process of transforming your baking prowess into a thriving business.

Understanding the Bakery Business

Navigating the realm of cake businesses requires a grasp of industry intricacies, much like perfecting a cherished recipe. Every facet, whether it’s staying attuned to current trends or understanding the cake varieties that resonate with customers, contributes to your blueprint for success.

Before you start selling cakes, let’s explore the layers of insight that will aid you in crafting a business strategy as delightful as your confections.

• Embracing Trends : Maintain awareness of the latest cake trends and design preferences that influence consumer choices.
• Identifying Your Audience : Pinpoint your target market, taking into account occasions and demographics that your cake business caters to.
• Exploring Cake Types : Acquaint yourself with an array of cake varieties, ranging from elegant wedding cakes to whimsical cupcakes, to expand your repertoire and satisfy diverse customer demands.

Creating a Unique Cake Business Plan

Setting up a cake business requires more than just exceptional baking skills; it demands a well-crafted business plan.

Your business plan serves as the foundation that supports your dreams, outlining every essential detail required to turn your passion into a thriving enterprise.

By identifying your niche, strategizing pricing, and plotting effective marketing tactics, your business plan will be the guiding recipe on your entrepreneurial journey.

When crafting this integral business aspect, be sure to consider the following:

• Defined Niche : Specialize in a specific type of cake or service to stand out in the market.
• Pricing Strategies : Set competitive yet profitable prices by considering ingredients, labor, and overhead costs.
• Marketing and Promotion : Devise strategies to promote your cakes through online platforms and local networks.
• Financial Projections : Outline projected expenses, revenues, and profit margins for a clear financial outlook.

Navigating Health Department Regulations and Cottage Food Laws

While your cakes may be a feast for the senses, starting a home baking business also involves adhering to a set of regulations that ensure safety and quality.

Navigating health department regulations and cottage food laws is crucial to operating your business legally and building trust with customers.

Make yourself aware of the ingredients of compliance that ensure your business not only satisfies taste buds but also meets regulatory standards. These actions include:

• Research Local Regulations : Understand the specific health and safety regulations for home-based food businesses in your area.
• Obtaining Permits : Determine if you need any permits or licenses to legally operate your cake business.
• Labeling and Packaging : Adhere to guidelines for proper labeling and packaging of your baked goods.

Setting Up Your Baking Space

Creating a dedicated baking space within your home is more than just a convenience – it’s a necessity. A well-organized space enhances efficiency, creativity, and cleanliness.

Equip your baking area with the essential tools and equipment, ensuring they’re easily accessible. Store ingredients in a systematic manner and maintain a clutter-free environment.

A functional baking space lays the foundation for smooth operations and delectable creations, but setting it up requires a few key steps:

• Choosing a Location : Designate an area in your home that’s well-ventilated, spacious, and away from potential contaminants.
• Essential Equipment : Equip your baking space with ovens, mixers, measuring tools, and other essentials.
• Organized Storage : Store ingredients in labeled containers, ensuring easy access and freshness.
• Hygiene and Cleanliness : Maintain a clean environment by adhering to proper sanitation practices.

Tips for Running a Successful Cake Business from Home

Turning your love for baking into a successful home-based cake business is a fulfilling endeavor. Keep reading as we examine the strategies and insights that can elevate your venture from an ordinary kitchen to a thriving business hub.

‘With the right mix of creativity, marketing finesse, and a sprinkle of innovation, your journey as a cake entrepreneur is bound to rise to new heights.

Mastering the Art of Cake Decorating

Cake decorating is the soul of your cake business, transforming simple bakes into edible works of art.

In this section, we’ll explore the importance of honing your cake-decorating skills and uncover resources and tips that can help you create show-stopping designs.

As you refine your techniques, you’ll discover how this artistic touch can set your cakes apart, making them irresistible to customers. Remember the following attributes when decorating your cakes:

• Skill Enhancement : Continuously improve your cake decorating techniques through practice and learning.
• Creative Inspirations : Seek inspiration from various sources, including online platforms, magazines, and nature.
• Specialty Techniques : Master specific decorating techniques such as fondant work, piping, and hand painting.

Marketing Your Cake Business

Behind every successful cake business is a strategic marketing approach that whets the appetite of potential customers.

Stay with us as we explore a menu of marketing strategies that can spread the word about your delectable creations.

From harnessing the power of social media to fostering word-of-mouth endorsements, your marketing efforts will ensure that your cakes take center stage in the hearts and palates of your target audience.

Some of the most popular ways to market a cake business include:

• Social Media Presence : Establish a strong presence on platforms like Instagram, Facebook, and Pinterest to showcase your cakes and engage with customers.
• Content Creation : Share visually appealing content, including photos, videos, and behind-the-scenes glimpses of your baking process.
• Collaborations : Partner with local event planners, photographers, and wedding vendors to expand your reach.
• Customer Reviews : Encourage satisfied customers to leave positive reviews and testimonials that build credibility.

Making Your Cake Business Stand Out

In a competitive market, boasting a unique selling proposition is crucial. You might differentiate yourself from the competition with a signature cake design, the use of premium ingredients, or an eco-friendly approach.

Highlight these unique aspects in your marketing efforts to attract customers who resonate with your values. Your distinctiveness will be the icing on the cake that draws customers to your business.

Unsure how to make your cake business stand out in a crowded market? Consider the following options:

• Signature Designs: Develop a portfolio of unique cake designs that reflect your personal style and creativity.
• Premium Ingredients: Emphasize the use of high-quality, locally sourced ingredients that contribute to the flavor and quality of your cakes.
• Personalized Services: Offer customization options to cater to individual preferences and occasions.
• Sustainability Initiatives: Incorporate eco-friendly practices such as using biodegradable packaging and reducing food waste.

Crafting Exquisite Wedding Cakes

Among the diverse offerings of cake businesses, specializing in crafting exquisite wedding cakes is a niche that holds immense potential. This section will guide you through the intricacies of creating wedding cakes that capture couples’ dreams. From design inspiration to marketing strategies, you’ll uncover the key ingredients to become the go-to choice for couples celebrating their special day.

• Elegance and Sophistication : Develop a range of wedding cake designs that align with different wedding themes and styles.
• Consultation and Collaboration : Provide personalized consultations with couples to understand their vision and preferences.
• Visual Portfolio : Showcase a diverse portfolio of wedding cake designs through an online gallery or portfolio book.
• Partner with Wedding Vendors : Establish partnerships with wedding planners, photographers, and venues to expand your reach within the wedding industry.

Common Challenges in Cake Businesses and How to Overcome Them

The journey of a home-based cake business isn’t without its challenges, but with the right strategies, you can overcome them and emerge stronger.

Read on as we address common hurdles faced by cake entrepreneurs and present effective solutions that can help you keep the flame of your passion burning while navigating the complexities of running a successful baking business.

Balancing Demand and Supply

When running a home-based cake business, maintaining a delicate equilibrium between customer demand and supply levels is paramount.

The challenge lies in ensuring you have the right amount of inventory to cater to fluctuating orders while minimizing wastage.

Achieving this balance requires a strategic approach to inventory management that allows you to meet the demands of your hungry clientele gracefully.

One way to tackle this challenge is by closely monitoring historical sales data. By analyzing past orders and seasonal trends, you can anticipate periods of higher demand and adjust your production accordingly.

Such foresight enables you to allocate resources and ingredients efficiently, preventing overproduction that could result in unnecessary waste.

Likewise, cultivating effective communication with your customers can provide valuable insights into their preferences and requirements.

By encouraging advance orders or pre-bookings, you can gauge demand ahead of time and plan your production schedule more accurately, not only helping you tailor your offerings to customer preferences but also reducing the risk of shortages or excess inventory.

Maintaining Quality While Scaling

As your home-based baking business gains traction and begins to scale, upholding the quality that defines your confections becomes even more crucial.

Scaling shouldn’t mean compromising on the very essence that makes your cakes stand out. Instead, it’s an opportunity to refine your processes and implement stringent quality control measures that ensure each cake leaving your kitchen is a masterpiece.

First and foremost, document your recipes and procedures meticulously. This step-by-step documentation serves as a reference point, enabling you and your team to replicate your signature cakes with precision.

Regular training sessions also can help your team understand the importance of maintaining consistency in taste, texture, and presentation, even as the volume of orders increases.

Implementing quality checks at different stages of production is a proactive measure to catch any deviations early. From ingredient inspection to final decoration, instituting a systematic review process guarantees that only the finest cakes bear your name.

Meanwhile, embracing technology and baking tools that promote accuracy can further enhance the consistency of your output.

FAQs: How to Start a Cake Business

Can i start a bakery with no money.

Learning how to start a bakery business without substantial capital is possible by employing resourceful financial management and gradually expanding your offerings as your profitability increases.

How profitable is selling cakes?

The profitability of selling baked goods varies due to factors such as pricing strategies, market demand, and effective cost management. Employing strategic pricing and efficient cost controls can lead to favorable profit margins.

How much investment do I need to start a cake business from home?

The initial investment needed to launch a home-based cake business hinges on variables like equipment costs, ingredient expenses, and marketing efforts. This range can span from modest sums to moderate investments, contingent on your business scope.

How can I attract customers to my cake business?

Attracting customers to your cake business necessitates a blend of strategic social media presence, local collaborations, and compelling promotional offerings. By combining these approaches, attention can be garnered and a loyal customer base can be built.

Is a special certification required to start a food business?

The prerequisites for initiating a food business, including a cake enterprise, differ depending on your location’s regulations. Researching the specific requirements pertinent to your jurisdiction will ensure compliance with necessary certifications and permits.

How can I determine the right price for my cakes?

Establishing the appropriate pricing for your cakes entails evaluating factors like ingredient costs, labor hours, and market rates. By aligning these elements, a competitive yet profitable pricing structure can be developed.

What kind of cakes should I start with?

Embarking on your cake business journey with a versatile selection, including popular choices such as birthday cakes, cupcakes, and celebration cakes, is recommended. As you gather customer feedback and gauge demand, you can gradually expand your offerings.

I excel at decorating cakes; is starting my own cake business a good idea?

Your adept cake decorating skills provide a strong foundation for launching a prosperous cake business. By enhancing your craftsmanship and learning how to start a business , you can craft a thriving entrepreneurial venture. Refer to our business startup checklist and other resources to turn your skills into a profitable business.

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Published: Jan 27, 2022 · Modified: Mar 18, 2022 by Bronya Seifert · This post may contain affiliate links · 3 Comments

Essential Guide to Starting a Cake Business

Starting a cake business is both exciting and daunting at the same time. You’ve taken that decision to turn your passion of baking and decorating into a business, to make a bit of money back from the hours you’ve happily spent in the kitchen. Friends and family have convinced you it’s a good idea, but how do you actually go about starting a cake business?

What are the legal things you have to do? What are the business things you should do? And what do you need to buy? It seems like a minefield, right?

This essential guide to starting a cake business covers all the things you have to do, many of the things you should do, and some things that it would be nice to do once you’re up and running and have the time.

What to expect?

First off though, if you have another income and hope to replace this with that, don’t expect to do that in your first year, or maybe even second year. Setting up any business takes time. Not because of the legal requirements, the things you have to buy or learning how to make amazing cakes. But you need consistent and regular orders and getting those isn’t instant.

Secondly, don’t ever forget the necessity to learn some business skills. If you’re to have consistent orders, you’ll need to know how and where to get them. It’s all very well knowing how to make the most beautiful cakes, but without some business knowledge you may as well carry on as a hobby.

This guide in divided into 5 sections, some are more ‘dry’ than others, but sadly they are usually the most essential.

Legal and essential admin

Registering your premises:.

In the UK, and many other countries, there are legal requirements if you are selling food to the general public. I’m going to deal with the UK, but if you are in another country, I highly recommend you check out the local laws for food production. You don’t want to come a cropper before you even start.

Selling food means, money changing hands, no matter how small the amount. Even if you are only asking for someone to cover the costs of your ingredients, in the eyes of the UK law, you are selling food. What you’re doing is no-longer a hobby, it’s a business, and as such you should be registered with your local council.

Registering is free

Registering with the council is free and usually easy. You register with whichever council you pay your Council Tax to. Look on their website and follow the instructions. Each Council works slightly different. Some you can fill in a form online, some you have to post it.

Don’t always expect an instant reply, because cake making is considered low risk and isn’t always prioritised. I have known of some cake makers who haven’t heard anything for over 18 months. However, if you have your registration form in, you cover yourself with the other requirements we’re about to discuss and you wait the required 28 days from registration you can start to sell.

Food Standard Agency, SFBB, Food Hygiene Training, Allergen Training

When you are eventually inspected by an Environmental Health Officer from your local council, they will expect you to have certain protocols and procedures in place. Apart from having a clean and well organised kitchen you should also have the correct paperwork.

I have heard of food businesses receiving a 1 score, instead of a 5, just because their paperwork is not up to date. And when I say ‘just because’ it’s actually very important. Having your paperwork done means you are monitoring all the vital parts of your business. If anything goes wrong it is traceable in writing.

Most Councils will expect you to be using the Food Standards Agency’s Safer Food, Better Business Pack . It can be downloaded online and either printer and edited as a PDF and stored on your computer. Not all the sections will be appropriate to you as a cake maker, but make sure you regularly update your pack for your next inspection.

You will also be expected to have a current Level 2 Food Safety & Hygiene for Caterers Certificate, to have done the correct Allergen Training and have your food labelling and allergen information to hand.

None of this is difficult, it’s all pretty easy to find online, but it is essential and legal!

You will also need to register with HMRC or if not in the UK your local tax office as self-employed. For more information on this I highly recommend you listen to The Business of Cake Making Podcast with Accountant Claire Tovey . But here is some basic information.

If you take over £1000 in sales in a year, you legally have to be registered. It’s pretty easy to do via the HMRC website . This will mean, however, that every year you will have to submit a self-assessment tax return. Again is pretty easy as long as you have your records and accounts up to date and well kept. Which leads us onto our next topic.

Accounts and Record Keeping

Keeping your accounts up to date from the moment you start you cake business will definitely help you in the long run. You can either make your own spreadsheet up with monies in and monies out. Or you can use one of the free or inexpensive apps online. Some of which will even integrate with your bank account.

It is crucial to keep a track on your accounts not just for HMRC and Tax purposes, but also to make sure you are covering you costs and making some money when pricing. How do you know how much to charge someone for a cake if you don’t really know how much its costing you – but more on pricing later.

And whilst we’re talking about accounts, here’s little advise about bank accounts. Make sure you have a separate bank account for your business. Whilst, as a sole trader it’s not a legal requirement, it’ll be easier in the long run. Not only for your own record keeping, but also if anyone (like an accountant or the tax man) ever needs to check up on you and your business it’ll mean they don’t have to rifle through your personal spending.

Mortgage Lender/Landlord

Again, this isn’t necessarily a legal requirement, but I would say is essential if you want to keep your home. Running a home business generally must be authorised by either your Mortgage Lender or your Landlord. Some don’t allow businesses to be run from their properties.

Most mortgage lenders will allow it or will be able to advise how your terms can be amended. Landlords on the other hand can be trickier. Sadly, it’s not usually a personal thing, but an insurance issue for them and their own money lender. Renting a property is in itself a business. For them to get the correct funding and insurance they sometimes have to pass on restrictions to their tenants.

Again, whilst this isn’t a legal requirement, I would highly recommend getting Public Liability Insurance. In the very unlikely event that something goes wrong - we’ve all heard of the allergen horror stories, or someone tripping over at a school fete and suing etc. Having Public Liability Insurance will help put your mind at rest. Also, there are some instances where you will not be able to deliver your cakes without it. Some venues insist on it and will ask to see it

You can usually get £2 million, £5 million or £10 million insurance cover. Which you choose will largely depend on what activities you undertake. For example many fairs and markets will insist on £5 million cover as a minimum before allowing you to trade.  

I have Direct Line cover, however there are other insurance companies which will cover Home Cake Businesses.

Home and Car Insurance

Whilst we’re talking about insurance, if you are running your business from home, you may also want to check both your home and car insurance cover. Most home insurance cover will be fine, as long as you have separate Business Insurance. Some will say you are not allowed the general public/customers onto your premises, so you may have to think about collections and consultations etc.

If you are delivering cakes in your own car, you should also check that your car insurance is covered for business. This is usually a tick box and won’t cost you extra, but essential to make sure you are covered.

Terms and Conditions

This is the last of the not legal, but essential if you are to run a professional cake business. Having your own Terms and Conditions in place is crucial when starting a cake business. They set clear boundaries between you and your customer, and they cover you if/when there is a complaint.

My Terms and Conditions are checked over and updated regularly to make sure I am covered, and my customer is covered should anything untoward happen.

They cover everything from delivery times to complaints procedure, to allergens in my kitchen to copyright and ownership of designs.

I know it sounds heavy and maybe a little unnecessary, but honestly one day you may be pleased to have them!

Get Some Business Knowledge and Know How

Getting some basic business knowledge is my number 1, need to haves! Knowing how to brand your business, know who your ideal clients are, how to lean into your niche, set and outline your business plan and goals, and market your cakes is going to be essential if you are going to make any money.

I will touch on a couple of the more important things here but I would recommend you listen to The Business of Cake Making Podcast to get a fortnightly top up of business advise.

Niche Market and Ideal Client

Before you go off and make everything for anyone who wants it, my first recommendation is learning all about Niche Markets and Ideal Clients. Put simply it’s about learning what your strengths are, leaning into them and selling to the people who will appreciate them the most and will pay for them.

Read 4 Ways to Niche your Baking Business and Ideal Client for Cake Makers for more information. As this is so important there is also an Audio Workshop on Niche Market and Ideal Client you can download and work through.

I will just leave you with the old saying “when you sell to everyone, you sell to no-one”

Write a Business Plan and set your business some goals

This isn’t meant to be some arduous task, or complicated document to present sales projections and money forecasting to give to a bank manager. This is a plan to give you a road map for you to focus on when running your business.

If you write a brief business plan for yourself, with goals and targets, you will have something to work towards. It should lay out what your business is, what its selling, who it’s selling to, what your branding is and what your goals are. When you keep focus you are more likely to succeed. Without a plan you, again, may end up going off on tangents and getting nowhere fast.

Listen to The Business of Cake Making Podcast Episode on Business Plans and Goal Setting for more advise.

Naming your Cake Business

Thinking of a name when starting a cake business always seems like a fun task, and to be honest, one a lot of people can get too hung up on. A name should reflect you and your business, and appeal to your Ideal Client. Don’t make it too complicated. Make it memorable. I recently changed the name of my own cake making business as it was no longer relevant to the market and Ideal Client I was trying to attract. Make sure it serves your client as much as it does you.

When coming up with a name I would advise to rest on one that no-one else has claimed. When I say that I mean – can you get the website domain you really want? For example, When I was deciding on Daisy Cake Company I originally wanted Daisy Cakes, but the website address was already taken, therefore I had to adapt it so I could claim my own website domain for business.

Branding your Cake Business

Branding isn’t just a logo! It is a huge topic that ranges from everything from all the visuals, including your logo and colours, to your brand voice and brand principals. I will do another post soon about branding, but think of it like this:

If you weren’t in the room and someone had to explain your company to someone else, what would they say? They probably wouldn’t say ‘it’s the one with a cake on the logo’ or ‘it’s the one with all the pink in its colours’. They are more likely to say ‘it’s the one that's quite classic and makes stunning tall white wedding cakes’ or ‘it’s the one that’s really funky and a bit alternative’.

What is the impression you want to leave people with when they meet you and your business? How do you speak to your customers – are you formal, or are you friendly? Are you classic or are you funky? Are you clean lines or are you colour? Will you be outspoken or do you keep your opinions to yourself? That’s your brand.

Pricing your Cakes

If you do just one thing in your business, make sure you price your cakes properly!

You are in business, which means you should be making money!

The absolute bare minimum is that you cover your costs and pay yourself. Covering your costs means you should know what they are – see Accounts and Record Keeping. Paying yourself, means making sure all your time is covered, and not just the time when your hands on your cake, and paid to at least the minimum wage. I know this sounds obvious, but you wouldn’t believe how any cake makers don’t pay themselves properly.

If you have worked out what Niche you want to work in, and who your Ideal Client is. You should know that the price and value you set will not be a shock to your customer.

Read How Much Do Cake Makers Earn? , 5 Things to Remember when Quoting Cake Prices or Listen to The Business of Cake Making Episode on Pricing for more information. To get more orders from your cake quotes read Preparing and Sending Cake Quotes .

Marketing your Business

Getting your cakes seen is hugely important when starting a cake business for finding new customers. Marketing covers everything from having a website, a blog, your social media accounts and wedding fairs etc.

The main thing I would say about this is be guided by your Ideal Client work. Advertising on everything, will in itself be a full-time job – but you want to be making cakes right? So pick the places you know you’re Ideal Client will be. It may be on Instagram and well as having a website, or having a blog and being on Facebook, or being on Facebook and Instagram and TikTok.

But don’t overstretch yourself. Choose just one or two of the best places for you and your business and really work on them. It’s better to do 1 thing really well, than 5 things badly!

What I would say though, is having a website should be a priority at some point for your business. It’s the one marketing channel you will really own. Facebook, Instagram and TikTok are all very well until they decide for some random reason to close your account. Have a space that is always yours.

Your Mindset

This isn’t something that many people talk about when starting a cake business. Having the right mindset is as important as having the business knowledge.

Knowing and believing you can do it is so very important. There are a few things I’m going to highlight here and they’re all things that you need to do for yourself, before you can even think of running a business.

Why are you starting a cake business?

First ask yourself ‘why’ you’re doing it. Keeping your ‘why’ close by is something you may have heard before. If you always know what is driving you forward, in hard, long days, you’re more likely to succeed.

Set boundaries and keep to them. If you’ve decided to not work past 8pm, don’t reply to a message that comes in a 9.15pm. If you don’t want to work more than 35 hours a week, and that extra last minute enquiry will take you over that, say no to it.

Having your own boundaries will ultimately keep you from over working, over worrying and burning out. Burn out is a very real thing with cake makers (and sadly it usually comes hand in hand with undercharging). Valuing yourself and your time is essential for your own self care.

Listen to The Business of Cake Making Episode on Valuing Yourself with Katie from Malarkey Cakes .

Imposter Syndrome and Comparisonitis

This usually is as result of comparing yourself far to much with others in your field. Believing in yourself is hard enough, comparing yourself to everyone else and still believing in yourself is impossible. Read Why You Should Ignore the Competition when Cake Making for more information

Lastly, and by no means least, I need to talk about Self Care. Looking after yourself is so important if you are to look after anyone else, including your customers. Self care can take many forms from a long hot bath, to switching your phone off after 5pm. For some great advise, with hints and tips listen to The Business of Cake Making Episode with Maria Ditch for more information.

Cake Business Equipment

I have one big bit of advise here, and that’s Don’t Buy Everything!

Seriously, we all think we need all the equipment. I can’t tell you how many boxes of cake tut I have hanging around in storage that’s never used. You know the stuff ‘oh, that mould for a teddy looks great, it might come in handy’ or ‘oooo, £30 is that all for those lettering stamps, bargain!’. None of which have ever been used and all still sit in their boxes.

You really only need a few bits of equipment to get and keep you going. I always say buy the best quality you can at the time. Here’s my quick guide to essentials, but listen to our Top Must Have Bits of Equipment for more information:

• Tins – buy them as and when you need them, but always buy a whole set of one size – don’t buy one and think you’ll buy the other 3 later, because what happens when later comes and you can’t get them?
• Offset Spatula
• Bench Scraper
• Non-stick rolling pin
• Set of basic modelling tools

The other stuff like impression mats, silicone moulds, stencils, tools, cutters, colours, sprinkles etc you have to ask yourself, very seriously – do I really need this, how many cakes will I really use it on, will it cover its cost? If it won’t, don’t buy it! Find another way to make the cake.

I would also recommend finding a few good suppliers for ongoing essentials such as boards and boxes etc. Buying them in bulk from a cake supplies store will always be better and more economical than driving around trying to find them locally in supermarkets.

Starting the Cake Making

Last we come to the actual cake making. I know it seems really far down the list doesn’t it?

There’s not really much to say about this, as you’ve already decided to start a cake business so probably know a bit about this. However, I do have a few things you need to look at.

What are you going to bake?

With this I’m going to refer you back to the work you should be doing on Niche Markets and Ideal Clients. Only bake what you know you’re going to sell.

For example, if you decide markets are going to be your thing, don’t experiment with loads of new recipes that you’re not sure will sell. Baking for business can be costly if you’re stuck with stock, because unlike some other hobbies turned into businesses, you can’t pack it up and stick under the bed until the next time.

Stick to what you’re good at, and what you’re customer wants. By all means try new things, but test the market before investing both time, money and ingredients.

Capacity and Work Flow

You need to know your limits of time and space. Do you have the time to make all the orders you’ve committed to, and do you have the space?

If you are starting a cake business from home, you need to think about how it will impact on your household and it’s members. Will you need the kitchen at meal times? Will you need to be ordering pizza on a Friday because you have 3 wedding cakes to make in the kitchen? Do you have enough space to prepare 3 wedding cakes? Do you have enough tins and oven space?

Learning your capacity and workflow boundaries is often a case of trial and error. We all take on cakes that spill over into our personal life, and learn to say never again.

There are some things you can do though. Firstly learn some good time management skills. Download my free Cake Planner here and read Organising you Cake Business orders to help you and listen to The Business of Cake Making Podcast episode on Time Management .

Mastering your recipes

Make sure you have a few ‘go to’ recipes on your menu before starting your cake business. When you have recipes that you know work well, and can be scaled up and down, you are taking half the stress out of baking for a business.

Once you gain experience you’ll know how you can fiddle with recipes to add other flavours, but only do that when you have time and ingredients to give it a go…..don’t do it on a customer cake that’s due tomorrow and these are your last eggs

Starting a cake business from home requires space. You’ll need space for ingredients, boards, boxes, for working, for finished cakes etc.

However, I’m going to let you into a secret – owning a shop or unit or commercial kitchen isn’t the holy grail! Yes, it may get all your tut out of the house. But it come with a whole heap of other things to deal with.

As long as you don’t buy all the equipment (see the Equipment section), set good boundaries for your business and make sure your Workflow and Capacity is under control, your baking shouldn’t rule your house.

For more information about Starting a Cake Business and running it successfully, listen to The Business of Cake Making. Our Fortnightly podcast hosted by cake makers, for cake makers running a business.

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Start a Cake Business

Baking Dreams into Reality: Your Edible Art Venture

CAKE BUSINESS

Related business ideas, discover your perfect domain, cake mini business plan, expected percent margins:, earnings expectations:, actions to achieve the sweet success:, raw material procurement:, marketing whisk:, sales and customer experience:, expense control:, operational actions:, not what you had in mind here are more ideas, grab your business website name, step 1: determining if a cake business is right for you, breakdown of startup expenses, breakdown of ongoing expenses, examples of ways to make money, step 2: naming the business, step 3: creating a business plan, writing the business plan, step 4: obtaining the necessary licenses, where to obtain licenses, cost of licenses, renewing licenses, step 5: choosing a location, types of locations, step 6: setting up the kitchen, step 7: advertising, cost of advertising, measuring the effectiveness of advertising, step 8: pricing, setting prices, adjusting prices, sticking to your prices, step 9: managing the business, explore more categories, take the next steps.

How to run a successful cake business

Table of Contents

Planning for a successful cake business

A business plan , a speciality , developing smooth operations for your cake business, daily operations, supply chain management , customer service , considering your cake business marketing strategy, build a brand , be accessible , simplifying your financial management with countingup.

If you dream of turning your cake making skills into a business, you may wonder how to ensure success. Starting a small business is a fun and exciting time, but it’s also a lot of work. But if you wonder how to run a successful cake business, we’ll cover a few key tips on where to start.

This guide will cover how to run a successful cake business, including: 

• Planning for a successful business 
• Developing smooth operations 
• Considering your marketing strategy
• Simplifying financial management 

Whether you have already started your cake business or you’re in the beginning stages , you’ll need to plan well for success. 

A business plan allows you to summarise your business’s purpose and outline everything you’ll need. This business plan also helps you create long term, medium, and short term goals . Plus, you can determine how you’ll run your daily operations. 

When writing your business plan, conduct market research to understand trends, competitors, and demand. If you already did market research, updated research lets you follow shifts in the industry.

Look at similar businesses in the area to get an idea of their client base. You can also analyse their branding and prices to find ideas or see what you can do differently. 

Your business budget is another essential part of planning your cake business. A budget can help you create financial goals for your business and track those goals. If you spend too much on your business, sticking to a budget can help you save and increase your cash flow . 

To create or update your budget, outline your business expenses . These may be recurring costs like shop rent, cake supplies, marketing and insurance. But they could also be unexpected or one-time expenses. Looking at your records can help you see where to cut down on spending and focus your budget on growth areas, such as marketing. 

Also, think about how to specialise your cake business. Instead of just creating general cakes, you may want to take an angle with your business that makes it unique. For example, you may be an expert in a particular design technique or stick to a theme. Whatever angle you choose will help you market precisely and help you stand out from others.  

If you want to know how to run a successful cake business, you’ll need to assess your operations so they can run smoothly.  

To organise the daily operations of your cake business, consider using a management tool like Google Workspace or Microsoft Office . These tools will help you create a daily timetable for your including when you’ll be baking, communicating with clients, or working your shop. You can also use these tools to stay on top of emails and organise documents such as recipes.  

Put aside time to create to-do lists and update your calendar so you can be aware of your tasks and supply delivery schedule. 

Supply chain management is another thing to focus on for strong operations for your cake business. The supply chain is the process of ordering materials to creating a finished product. In this case, you chain raw food ingredients and their production to the finished decorated cake. 

Good supply chain management will help you maintain stock of your essential materials to create your products. Without these materials, you can’t sell the finished cake and earn revenue. So if you plan the right timeline and order the correct amount of each necessary ingredient, you can maintain a good supply for your customers. 

Another way to ensure your success in your cake business is to prioritise customer service to create the best experience for your buyers. If you take the time to be friendly and accommodating, you can increase customer loyalty, so people want to return to your business.

Another way to promote customer loyalty is a rewards program that helps customers accumulate points or fill up a loyalty card for a discount. 

Knowing how to run a successful cake business is marketing it well to grow your audience and bring in more customers. 

You can reach the right audience and stand out with a clear brand identity . So consider how you’ll design your business’s marketing materials and overall appearance. For example, what colour scheme will best represent your cake business? Maybe you want to stick to vibrant colours or pastels. Use these to design an eye-catching logo. 

Then, think about the tone you want to use. The right tone will help you build a personality that connects with potential customers. For example, your website and menu could use a formal style and a curling font if you create extravagant wedding cakes. 

It’s also important to make your business accessible to the public. You can do this with an easy-to-navigate website . The website should have your business name, contact information, and cake list. Also, add your social media handles to your website. Having social media accounts for your business allows you to market yourself more widely and makes it easier for people to find you.

You can also claim your Google business profile so people can find you when searching the internet. This listing is a great place to ask customers for reviews. The more positive reviews you earn, the better your business will appeal to potential customers. 

Succeeding in your cake business also requires strong financial organisation. Businesses must do financial accounting and keep each of their records for about six years. And good management can help you track your performance and make better decisions. 

That’s why thousands of business owners across the UK use the Countingup app. 

It’s a two in one business current account with built-in accounting software. With automatic expense categorisation, receipt capture tools and cash flow insights, you can confidently keep on top of your business finances and save yourself hours of accounting admin, so you can get back to doing what you do best.

Find out more and start with three months free here .

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• Counting Up on LinkedIn

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Bakery Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Bakery Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Bakery Business Plan

You’ve come to the right place to create your bakery’s business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their bakeries.

A bakery business plan is a plan to start and/or grow your bakery. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan, and details your financial projections.

How To Write a Bakery Business Plan & Sample

The following information will provide a description of what to include in your bakery business plan along with links to an example for that section:

• Executive Summary – The Executive Summary section provides a high-level overview of your plan. It should include your company’s mission statement, as well as information on the products or services you offer, your target market, and your business goals and objectives.
• Company Overview – The Company Overview section provides an in-depth look at your company, including information on your company’s history, ownership structure, bakery location, and management team.
• Industry Analysis – Also called the Market Analysis, in this section, you will provide an overview of the industry in which your bakery will operate. You will discuss trends affecting the industry, as well as your target market’s needs and buying habits.
• Customer Analysis – In this section, you will describe your target market and explain how you intend to reach them. You will also provide information on your customers’ needs and buying habits.
• Competitive Analysis – This section will provide an overview of your competition, including their strengths and weaknesses. It will also discuss your competitive advantage and how you intend to differentiate your bakery from the competition.
• Marketing Plan – In the Marketing Plan section, you will detail your marketing strategy, including your advertising and promotion plans. You will also discuss your pricing strategy and how you intend to position your bakery in the market.
• Operations Plan – In the Operations Plan, you will provide an overview of your store’s operations, including your store layout, staff, and inventory management. It also includes information on your warehousing and distribution arrangements and a list of long-term milestones or business goals.
• Management Team – In this section, you will provide information on yourself as the talented baker, your team, your experience, and your roles in the company.
• Financial Plan – In this section of your bakery financial plan, you will include your financial statements: income statement, balance sheet, and cash flow statement. It also includes information on how much funding you require and the use of these funds.

Next Section: Executive Summary >

Bakery Business Plan FAQs

How can i complete my bakery business plan quickly & easily.

Learn more about writing a successful plan by using this bakery business plan template .

Where Can I Download a Bakery Business Plan Template?

Get a downloadable bakery business plan template here . 

What Are the Main Types of Bakeries?

A bakery can be retail or wholesale. A retail bakery sells baked goods directly to customers, while a wholesale bakery typically sells products to other businesses, like restaurants, grocery stores, specialty shops, and cafes.

How Do You Get Funding for Your Bakery?

Bakeries are most commonly funded with personal savings and bank loans. Credit card financing and angel investors are also popular forms of funding for bakeries.

Learn More:  Seeking Funding from Angel Investors vs Venture Capitalists

What Are the Main Sources of Revenues and Expenses for a Bakery?

The primary source of revenue for bakeries is its baked good sales. This includes deliveries and online orders. Sometimes bakeries also earn from bulk orders from wholesalers or special occasions.

The key expenses for bakeries are rent, wages and salaries, ingredients and packaging.

What are the Steps To Open a Bakery Business?

Opening a bakery business can be an exciting endeavor. Having a clear roadmap of the steps to open a business will help you stay focused on your goals and get started faster.

1. Develop A Bakery Business Plan - The first step in opening a business is to create a detailed bakery business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your bakery business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your bakery business is in compliance with local laws.

3. Register Your Bakery Business - Once you have chosen a legal structure, the next step is to register your bakery business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to open your bakery business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Bakery Equipment & Supplies - In order to start your bakery business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your bakery business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful bakery business:

• How to Open a Bakery Business

Where Can I Get a Bakery Business Plan PDF?

You can download our free bakery business plan template PDF here . This is a sample bakery business plan template you can use in PDF format.

Sample Bakery Business Plan For Inspiration

Writing a business plan is a crucial step in starting a bakery. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring bakers, having access to a sample bakery business plan can be especially helpful in providing direction and gaining insight into how to draft their own bakery business plan.

Download our Ultimate Bakery Business Plan Template

Having a thorough business plan in place is critical for any successful bakery venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A bakery business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The bakery business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your bakery as Growthink’s Ultimate Bakery Business Plan Template , but it can help you write a bakery business plan of your own.  

Bakery Business Plan Example – Home Sweet Home Baked Goods

Table of contents, executive summary.

• Company Overview

Industry Analysis

Customer analysis.

• Competitive Analysis

Marketing Plan

Operations plan, management team, financial plan.

Home Sweet Home Baked Goods is a home-based bakery in Bend, Oregon that has been operating successfully for the last 3 years. Founded by talented baker Jill Davis and her husband Sam, Home Sweet Home Baked Goods specializes in creating custom cakes, cupcakes, pies, and other desserts from scratch. Now that their business has grown and they have expanded their customer base, Jill and Sam are looking for funding to open a brick-and-mortar storefront location in Bend.

The new location will be a modern bakery with an inviting atmosphere and welcoming staff. Through the use of high-quality ingredients, innovative recipes, experienced baking staff, and updated bakery equipment, Home Sweet Home Baked Goods is poised to become the premier bakery in Bend. The new store will create jobs for local residents while bringing delicious baked goods to the community.

Home Sweet Home Baked Goods’ mission is to use locally sourced ingredients whenever possible to create unique baked goods of uncompromising quality at an affordable price. With its commitment to excellence and creative approach to baking, the company will provide customers with a unique experience with each visit.

In order to achieve these goals within their budget constraints, Home Sweet Home Baked Goods has put together a comprehensive plan utilizing proven marketing techniques, operational efficiencies, and cost management strategies. By leveraging technology such as social media marketing platforms like Facebook and Instagram as well as partnerships with local businesses, Home Sweet Home Baked Goods has created a strategy for success that will allow them to not only meet but exceed customer expectations.

As part of this plan, we are seeking funding from investors or lenders who share our vision for creating an exceptional bakery experience in Bend. With your help, we can continue our growth while developing long-term relationships with our customers through quality products and outstanding service — all while supporting small business owners in our community.  

Company Description

Home Sweet Home Baked Goods is a home-based bakery in Bend, Oregon that has been operating successfully for the last 3 years. Founded by passionate baker Jill Davis and her husband Sam, Home Sweet Home Baked Goods specializes in creating custom cakes, cupcakes, pies, and other desserts from scratch. The company’s focus on quality ingredients, innovative recipes, experienced baking staff, and updated equipment sets them apart from its competitors.

Home Sweet Home Baked Goods strives to provide customers with an exceptional experience each time they visit the store by using locally sourced ingredients whenever possible. This commitment to excellence has allowed them to expand their customer base across the region, leading them to seek funding for a brick-and-mortar storefront bakery location in Bend that will bring even more delicious baked goods and job opportunities to local residents.  

The Bend, Oregon home-based bakery industry is a booming sector that has seen significant growth in the last three years. According to figures released by the Oregon Department of Agriculture, retail bakeries generated over $200 million in sales in 2019 alone, up 8.3% from 2018. The number of establishments operating within the state has also increased, with seven new businesses opening their doors in 2019.

The majority of these bakeries specialize in cakes and cupcakes, though some offer other items such as pies and donuts. The market for specialty items is particularly competitive, with many bakeries offering custom designs that cater to specific dietary needs or themes. This demand has encouraged a larger variety of offerings from existing businesses and attracted more upstart shops to enter the market.

Bend’s bakery scene is driven by its large base of tourists and university students who often seek out unique treats while visiting the city. As a result, many local bakeries have developed memorable branding campaigns that target these customers and feature unique flavors or design styles that set them apart from competitors. These efforts have been rewarded with higher rates of customer loyalty, allowing these businesses to enjoy continued success despite an increasingly crowded marketplace.

Despite its popularity as a destination for bakers and dessert lovers alike, Bend also faces certain challenges that may affect business operations going forward. High rent prices are one such issue; with real estate costs on the rise, it can be difficult for small local businesses to secure an affordable space without sacrificing quality or service standards. Additionally, Bend’s seasonal climate – boasting cold winters and dry summers – makes it difficult for certain items such as ice cream or frozen yogurt to remain popular year-round options for consumers.

Overall, however, Bend remains an excellent location for home-based bakers seeking to expand their operations into a storefront setting due to its vibrant culture and lively atmosphere. With proper planning and execution, Home Sweet Home Baked Goods can position itself as a leader in this growing industry while helping bring more culinary creativity and innovation to the area’s residents and visitors alike.  

Home Sweet Home Baked Goods has an ideal target market that includes both local customers and visitors to Bend, Oregon. The company is particularly passionate about providing locally sourced ingredients in its baked goods, making it a natural draw for people who live in the Bend area.

The local demographic consists primarily of working professionals, families with children, retirees, and university students. These customers are looking for high-quality desserts that cater to their individual dietary needs while also remaining reasonably priced. Home Sweet Home Baked Goods’ emphasis on using local ingredients appeals to this demographic as it shows their commitment to supporting the local economy and providing fresher products.

The company also seeks to attract tourists with its innovative recipes and memorable design themes. Tourists often seek out interesting treats while visiting cities such as Bend due to their limited time frames; baked goods created with original recipes can be a great way to provide these customers with an enjoyable experience that they won’t find anywhere else. Furthermore, its custom designs help create an even more unique experience for each customer – whether a visitor or local resident – by allowing them to customize their order based on specific dietary restrictions or preferences.

Psychographically, Home Sweet Home Baked Goods targets individuals who are looking for quality desserts made from fresh ingredients but don’t want to sacrifice taste or convenience. The company is committed to creating innovative recipes that appeal to customers of all ages and encourages its customers to interact with staff members for advice or suggestions when ordering customized items – this gives them an added sense of security when selecting special orders knowing that they are getting exactly what they need from the bakery’s staff of experienced bakers. Moreover, Home Sweet Home Baked Goods’ commitment to using locally sourced ingredients resonates strongly with individuals who value sustainability and ethical production processes; this connection can become even stronger if the company decides to partner with local farms or purveyors when sourcing their ingredients in the near future.

Overall, Home Sweet Home Baked Goods is aimed at professional adults and families looking for delicious yet affordable treats made from quality ingredients as well as visitors interested in finding original recipes while discovering Bend’s culinary scene. By providing customer service excellence paired with locally sourced ingredients whenever possible, the company seeks not only to build a loyal customer base but also to contribute positively towards the overall development of Bend’s culinary industry.  

Competitor Analysis

Home Sweet Home Baked Goods will be entering a very competitive market in Bend, Oregon. The local bakery market is saturated with many established businesses that have been around for several years, offering a variety of products and services. Therefore, the company must assess the competition and identify its strengths and weaknesses in order to create effective differentiation strategies that will allow it to stand out from the crowd.

One of the main competitors in the region is The Baker’s Dozen Bakery, which has been operating since 2000. The business offers a wide range of baked goods such as cookies, cakes, muffins, brownies, doughnuts and more; their prices are slightly higher than those of Home Sweet Home Baked Goods but customers are willing to pay for their quality products. Furthermore, The Baker’s Dozen Bakery has built a strong reputation by catering events in the area as well as providing custom orders for special occasions. In addition to this, they also offer delivery services throughout Bend; while this may not be a major advantage over Home Sweet Home Baked Goods now due to the pandemic-related restrictions on food service industry operations in most areas, it could potentially become an important asset when things return to normal.

Another competitor is Sweeter Things Bakery & Cafe which has been running since 2013. This business specializes in customized cakes made with fresh ingredients; these expensive desserts appeal to customers looking for something extra special for weddings or birthdays whereas The Baker’s Dozen Bakery focuses more on traditional baked goods such as cupcakes and cookies. Sweeter Things Bakery & Cafe also offers delivery services throughout Bend just like The Baker’s Dozen Bakery – again, this could be an important factor once restrictions are lifted.

Finally, there is Kate’s Cupcakery which opened up in 2016 and focuses solely on cupcakes. While this business does offer unique flavors and custom designs that appeal to customers looking for something different from traditional cupcakes (i.e., gluten-free or vegan baked goods), its menu is limited compared to those offered by both The Baker’s Dozen Bakery and Sweeter Things Bakery & Cafe which provides wider varieties of baked goods plus other pastries like pies or tarts. Additionally, Kate’s Cupcakery does not offer delivery services so customers would have to visit the store if they want one of their cupcakes – this could pose a potential disadvantage if other competitors start providing delivery services once restrictions are lifted due to the pandemic situation.

Overall, while all three businesses have great potential they do not necessarily provide what Home Sweet Home Baked Goods plans on delivering: locally sourced ingredients used whenever possible combined with innovative recipes and custom designs catering specifically towards individual needs – all at reasonable prices that appeal both local residents and visitors alike. By leveraging these aspects that differentiate them from other competitors in the area, Home Sweet Home Baked Goods should be able to position itself as a leader in Bend’s bakery industry while still maintaining a competitive edge.

In order to do so, Home Sweet Home Baked Goods must focus on creating an engaging and unique atmosphere that will draw customers in. This can be done by utilizing modern design approaches and incorporating eco-friendly materials when possible as well as providing custom flavors that cannot be found elsewhere in the city. Offering discounts for orders placed online or through their app could also help to attract more customers while simultaneously cutting operational costs. Additionally, they must ensure that their products are of high quality; offering samples and feedback forms at the store are great ways to get customer opinions on what they like or dislike about a particular product – this information can then be used to make necessary improvements as needed or create new recipes. With the right combination of these elements, Home Sweet Home Baked Goods should be able to stand out from all other competitors in Bend and establish itself as the go-to bakery for all locals and visitors alike.

Home Sweet Home Baked Goods is a home-based bakery that offers locally sourced ingredients and innovative recipes. Our goal is to provide our customers with freshly made, high-quality pastries at reasonable prices. We offer custom flavors and designs for special occasions like weddings or birthdays as well as more traditional items such as cupcakes, cookies, pies, and tarts.

To drive foot traffic to our storefront location in Bend:

• Products : We will focus on creating unique flavors (gluten-free/vegan options) along with custom designs catering specifically to individual needs.
• Price : We will offer competitive prices that appeal both to local residents and visitors alike.
• Promotion : We will use digital marketing methods such as a website, social media platforms, and app ads to reach a wider audience. Additionally, we will create promotional offers like discounts (e.g., 10% off orders placed online or through our app) and free samples at the store.
• Place : To ensure quick delivery times, we will focus on developing relationships with local suppliers so that we can get ingredients quickly and efficiently whenever possible. This way customers can be sure that their orders are always freshly made when they arrive.

Home Sweet Home Baked Goods is a home-based bakery that offers locally sourced ingredients and innovative recipes to customers at reasonable prices. We specialize in custom flavors and designs for special occasions such as weddings or birthdays, as well as more traditional items such as cupcakes, cookies, pies, and tarts. As we expand to a storefront location in Bend, our goal is to create an engaging atmosphere that will draw customers in while providing quality products that can’t be found elsewhere.  

Daily Operations:

We will begin each day by prepping the ingredients and baking batches of our products. This includes sifting flour and pre-measuring all other ingredients so that our pastries are made with the utmost care and precision. In addition, we will also make sure to check the expiration date on all ingredients used to ensure freshness. Once this is done, we will start the baking process using various techniques such as panning dough into sheet pans or molds or piping batters onto parchment paper for cupcakes. After baking has been completed, we will package up the products for sale or delivery depending on customer orders. Finally, we will clean up any messes from the kitchen area before closing for the day.  

Milestones to Achieve:

The following milestones will be necessary to ensure the success of Home Sweet Home Baked Goods.

• Develop Relationships with Local Suppliers – We will create relationships with local suppliers to get fresh ingredients as quickly and efficiently as possible.
• Create a Website and Social Media Platforms – We will need to build a website that advertises our products, informs customers about delivery options, and provides contact information for orders. Additionally, we will develop social media accounts on popular platforms like Instagram and Facebook in order to reach a wider audience and engage customers through content marketing strategies.
• Offer Promotional Offers – We will need to create promotional offers such as discounts or free samples at the store in order to draw more customers into the shop.
• Develop Innovative Recipes – We will need to come up with new flavors, designs, and recipes in order to keep customers coming back for more.
• Increase Visibility – We will need to use strategies such as app ads and digital marketing campaigns in order to increase the visibility of our business and reach more potential customers.

By achieving these milestones, we will be able to create a successful storefront location that provides quality products and an enjoyable atmosphere. Our goal is to become a fixture in the Bend community by creating a safe space where people can come together over delicious baked goods.  

The management team at Home Sweet Home Baked Goods is comprised of Jill Davis and her husband Sam. Jill and Sam have been a dynamic duo since they first met in college, and their enthusiasm for baking has helped them to build an empire out of their passion.

Jill is the co-founder and head baker at Home Sweet Home Baked Goods. She is a talented pastry chef with a keen eye for detail, ensuring that every product they produce meets their high standards. She has spent years perfecting her craft, creating innovative recipes with locally sourced ingredients to meet the needs of their customers. Her creativity and skill in the kitchen have earned her renown among local bakers, and she often receives requests from customers to create custom flavors or designs for special occasions such as weddings or birthdays.

Sam serves as co-founder and CEO of Home Sweet Home Baked Goods. He brings his wealth of business knowledge, acting as a strategic partner to Jill by overseeing operations, developing marketing strategies, and securing connections with suppliers. Sam’s dedication to customer service ensures that every customer gets the best possible experience when ordering from Home Sweet Home Baked Goods. His commitment to excellence has enabled them to consistently provide quality products at reasonable prices.

Together, Jill and Sam have turned a hobby into a successful business that specializes in fresh baked goods made with love for each customer who comes through its doors or orders online. Their passion for baking has enabled them to grow from a small home-based bakery into an established storefront location where they can continue providing exceptional products while getting to know their community better than ever before.  

Home Sweet Home Baked Goods is dedicated to providing quality baked goods and an enjoyable atmosphere for their customers. To ensure the success of their storefront, they need to create a comprehensive financial plan that outlines their projected growth and profitability.

In summary, Home Sweet Home Baked Goods’ financial plan is based on the following assumptions:

• Initial Start-Up Capital – We will need to raise initial start-up capital of $30,000 in order to cover expenses such as rent, equipment, and inventory for our storefront location.
• Profitability – We anticipate a 10% increase in sales every month, resulting in a steady growth of profitability.
• Cost of Goods Sold – We estimate our cost of goods sold to be 35% which is lower than the industry average due to our commitment to quality ingredients and competitive prices.
• Working Capital – Our working capital requirement will need to be adequate enough to cover at least three months of inventory, wages for staff, and other operating expenses.
• Financing – We plan to raise funds from a combination of personal savings, investors, and bank loans in order to meet our initial start-up capital requirements.
• Expansion – We anticipate the need for additional space or equipment within 12 months of opening.
• Taxes – We plan to pay estimated taxes quarterly throughout the year in order to remain compliant with federal regulations.

These assumptions will form the basis of our financial plan for Home Sweet Home Baked Goods and will help us to determine how we should allocate funds in order to reach our desired business goals. With this financial plan, we hope to transition Home Sweet Home Baked Goods into a successful storefront business.  

Sample Menu

1. Fresh Bread:

• White Sandwich Loaf
• Whole Wheat Loaf
• Raisin Walnut Bread
• Italian Herb & Cheese Loaf
• Cinnamon Swirl Bread

2. Cookies:

• Chocolate Chip Cookies
• Peanut Butter Cookies
• Vanilla Layer Cake with Strawberry Filling and Cream Cheese Frosting
• Carrot Cake with Cream Cheese Frosting
• Red Velvet Cupcakes with Cream Cheese Frosting

4. Pies and Tarts:

• Apple Pie with Crumb Topping
• Lemon Meringue Tart

5. Specialty Desserts:

6. Coffee Drinks & Teas:

• Cold Brew Coffee

7. Smoothies & Shakes:

• Strawberry Banana Smoothie
• Mango Pineapple Shake

Financial Statements

Balance sheet.

[insert financial statement]

Income Statement

Cash flow statement, bakery business plan example pdf.

Download our bakery business plan pdf here. This is a free bakery business plan example to help you get started on your own bakery plan.

How to Finish Your Bakery Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your bakery business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Bakery Business Plan

Start your own bakery business plan

Jolly's Java and Bakery

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

There is a shortage of coffee spots where customers can get high quality coffee and freshly baked pastries in a higher income market in Washington state.

JJB offers a broad range of coffee and espresso products, all from high quality imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail.

Because Washington has a cool climate for eight months out of the year, hot coffee products are very much in demand. During the remaining warmer four months of the year, iced coffee products are in significantly high demand, along with a slower but consistent demand for hot coffee products. Much of the day’s activity occurs in the morning hours before ten a.m., with a relatively steady flow for the remainder of the day.

Competition

Competition in the local area is somewhat sparse and does not provide nearly the level of product quality and customer service as JJB. Local customers are looking for a high quality product in a relaxing atmosphere. They desire a unique, classy experience.

JJB is a bakery and coffee shop managed by two partners. These partners represent sales/management and finance/administration areas, respectively. The partners will provide funding from their own savings, which will cover start-up expenses and provide a financial cushion for the first months of operation.

Expectations

JJB anticipates sales as shown below during the three years of the plan. JJB should break even by the fourth month of its operation as it steadily increases its sales. Profits for this time period are expected to be relatively low in the first two years, increasing somewhat in the third. We are projecting investment of $140,000 from the two founders.

Financial Highlights by Year

Financing needed.

Startup requirements:

• Startup expenses of $64K including $3K legal, $20K location premises renovation, $40K expensed equipment, and $1K other. These show up as negative retained earnings in the initial balance because they are incurred before launch.
• Starting cash in the bank of $70K. (in initial balance)
• Other current assets of $12K (in initial balance)
• Long-term assets of $65 (in initial balance)
• $110K initial investment from founders (Shows up in initial balance as Paid-in Capital.)
• $100K 10-year loan from SBA (in initial balance)
• $1K in accounts payable at startup. (in initial balance)

Problem & Solution

Problem worth solving.

There is a shortage of coffee spots where customers can get high-quality coffee and freshly baked pastries in a higher income market in the southwest area of Washington state. 

Our Solution

JJB offers a broad range of coffee and espresso products, all from high-quality Columbian grown imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail.

Target Market

Market size & segments.

JJB focuses on the middle- and upper-income markets. These market segments consume the majority of coffee and espresso products.

Local Residents

JJB wants to establish a large regular customer base. This will establish a healthy, consistent revenue base to ensure the stability of the business.

Tourist traffic comprises approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.

Current Alternatives

Leading competitors purchase and roast high quality, whole-bean coffees and, along with Italian-style espresso beverages, cold-blended beverages, a variety of pastries and confections, coffee-related accessories and equipment, and a line of premium teas, sell these items primarily through company-operated retail stores. In addition to sales through company-operated retail stores, leading competitors sell coffee and tea products through other channels of distribution (specialty operations).

Larger chains vary their product mix depending upon the size of each store and its location. Larger stores carry a broad selection of whole bean coffees in various sizes and types of packaging, as well as an assortment of coffee- and espresso-making equipment and accessories such as coffee grinders, coffee makers, espresso machines, coffee filters, storage containers, travel tumblers and mugs. Smaller stores and kiosks typically sell a full line of coffee beverages, a more limited selection of whole-bean coffees, and a few accessories such as travel tumblers and logo mugs. According to the most recent data available, industry retail sales mix by product type was approximately 73% beverages, 14% food items, eight percent whole-bean coffees, and five percent coffee-making equipment and accessories.

Our Advantages

The retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine climate in southwest Washington stimulates consumption of hot beverages throughout the year.

JJB wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure stability of the business. In addition, tourist traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.

Keys to Success

Keys to success for JJB will include:

Providing the highest quality product with personal customer service.

• Competitive pricing.

Marketing & Sales

Marketing plan.

Our marketing is rooted in the quality of the experience, to generate good word of mouth and repeat visits. That should generate good reviews on Yelp and Google Maps and similar review platforms. 

Of course we will pay attention to reviews and work with promotions to encourage reviews without being too blatant about it. 

We will also keep an up-to-date Facebook page and Twitter persona with regularly updated content. We will be slow to do promotions over social media, emphasizing useful content instead. Some of that will include community content. 

Locations & Facilities

JJB wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure the stability of the business. In addition, tourist traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market. JJB will have a storefront that is easily accessible from 2 different highways. 

Milestones & Metrics

Milestones table, key metrics.

Of course, the main metrics are the obvious ones: sales, direct, costs, expenses, and cash flow. But we will also be watching for units, customers, and social media metrics including Facebook likes and Twitter follows.  

Ownership & Structure

JJB is incorporated in the state of Washington. It is equally owned and managed by its two partners.

The company intends to hire two full-time  managers, one pastry chef and 3 part-time baristas to handle customer service and day to day operations.

Management Team

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Financial plan investor-ready personnel plan .">, revenue forecast, revenue by month, expenses by month, net profit (or loss) by year, use of funds.

We will be financing initial assets of $65,000 long-term assets (equipment, etc.) and $12,000 current assets plus initial inventory and the early months before break-even occurs. 

Sources of Funds

Two owners each investing $70,000. Total startup investment is $140,000

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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How to Create a Home Bakery Business Plan (Template Included!)

by Aurelia Lambrechts | Home Baking Biz Tips

How to Create a Home Bakery Business Plan

I’m beyond excited that you’ve decided to take action to read this post because your life could be starting on a NEW path from here on out…

Deciding to create your Home Bakery Business Plan means that you are actively responding to your dream. Today your dream has officially started to become a reality.

Acknowledging that you are a baker at heart is extremely difficult in our corporate world. It’s frowned upon to pursue a career that’s RICH in CREATIVITY and IMAGINATION.

So I just want to give you a room full of applause for being brave enough to start accepting who you were made to be.

We are Home Bakers and the world needs us.

The world needs the comfort, joy and hope that pure home baking brings.

And that’s why I’ve made this post and  FREE Workbook to help you create your own Home Bakery Business Plan !

I want to give you the jump start you need to start your Home Bakery.

Creating your business plan will give you a lot of insight into yourself, your ideal clients, what you want to bake and why you want to do it.

Most importantly it will help you figure out where you want to go …

Because “If you don’t know where you’re going, any road will take you there.”

By outlining where you want your business to go, you have a much greater chance at success because you will always be aware of where you are heading.

Your free Home Bakery Business Plan workbook is waiting for you in my free Resource Library. Follow this blue link to access the library and then download & print out your workbook 👉 Access your free workbook here!

Awesome! Let’s get stared!

YOUR HOME BAKERY BUSINESS PLAN

Step #1: your executive summary.

It might sound super intimidating to create an “executive summary”, but don’t worry 🙂 An executive summary is super easy to create through answering a few questions. It’s basically just about WHAT you do and WHY you do it…

IF YOU HAVEN’T STARTED YOUR HOME BAKERY YET:

You might not be able to a nswer all of the questions below yet, BUT you can share your research and all the steps you’re taking to ensure your business’s success.

1. YOUR MISSION STATEMENT

What is the purpose of your Home Bakery? What value do you add to your city/town? Why did you start your Home Bakery Business?

2. HIGHLIGHTS OF YOUR GROWTH

3. your products & services.

Write down a short summary of the products & services your Home Bakery will offer in order to make your business profitable.

4. YOUR GOALS FOR YOUR HOME BAKERY

Time to dream, my friend! What are your goals for your Home Bakery?

What do you want your business to look like 1 year from now, 2 years from now and 5 years from now?

STEP #2: Your Home Bakery Business Description

Now we are going to dive into your business culture & brand which is something that EVERY business is either working on or has figured out.

1. WHAT SETS YOUR HOME BAKERY APART?

Why should someone buy from YOUR Home Bakery above others? What makes your business different?

2. THE PEOPLE YOU SERVE

Every business needs clients in order to survive and thrive! So it’s super important to define WHO your business’s ideal clients are:

How old are they? What do they do for a living? What do they care about most? Why have they come to your baking business? How can you help them? What are their goals & aspirations? What are their hobbies? Which things make them happy?

3. YOUR HOME BAKERY’S CULTURE & BRAND

Another way to think of “culture & brand” is simply to see it as your business’s personality & looks; it’s the first impression that clients get from your Home Bakery Business…

When people interact with your Home Bakery, what do you want them to feel? How would you describe your Home Bakery’s Personality? What purpose does your Home Bakery serve?

4. YOUR HOME BAKERY’S ORGANIZATIONAL STRUCTURE

Organizational Structure simply refers to the legal definition of your business. If you are the only person working in your Home Bakery – which is pretty much always the case – then you are automatically defined as a “ sole proprietor “.

Even if there’s one other person in your business who cleans for you or helps you out with deliveries or admin, etc. you are still a sole proprietor.

You’ll include this organizational structure definition when submitting your tax information each year.

Related: Home Bakery Certificates, Licenses and Insurance

If you decide to expand your Home Bakery in the future, you can do the necessary research to figure out whether you should register your business as a Partnership, CC, LLC, etc.

The motivation for changing your business to one of these other organizational structures is for financial reasons. If your business should go bankrupt while you are a sole proprietor, then YOU are by definition bankrupt as well.

But if you have an LLC, CC, etc. then only your business will be bankrupt and not YOU as a person.

This may sound like super scary stuff, but you don’t need to worry AT ALL, okay? Home Bakeries typically do not shuffle around tens of thousands of dollars each day so our risk is SIGNIFICANTLY lower.

We also typically do not buy like 5 company cars and employ 20 people and stuff like that.

Our Home Bakeries are small and safe 🙂

STEP #3: Competitor Analysis

Before launching your Home Bakery business, I encourage you to THOROUGHLY research your largest competitors (popular bakeries with staff) and other Home Bakeries in your city, town and suburb.

Doing this is important because it will enable you to make more informed decisions and chart your own, unique course moving forward that serves a REAL need in your community and beyond.

Be mindful when you’re researching & analyzing your competitors though…

It’s SO EASY to be swooped up in a wave of comparison when you look at other Bakeries; their high skill level, beautiful website & branding, EPIC social media…

Guard your heart and analyze with your HEAD. Be HAPPY for them because they’ve worked super hard to get to where they are.

They may be your competitors, but they are NOT your enemies.

ALWAYS BE HAPPY FOR OTHER BAKERIES. BAKERS SUPPORT EACH OTHER AND THEIR SUCCESS. PERIOD.

See these businesses as inspiration for where YOU could be in a few months! It’s 100% possible!! By completing this home bakery business plan you’re taking a GIANT LEAP towards your own success!

Related: 5 Mindsets Shifts of Successful Home Bakery Owners

Also, I know all too well how tempting it is to just copy their cakes, their designs, their website design etc., but doing this will ONLY DAMAGE YOUR BUSINESS!!

They became successful by doing THEIR own thing and so will you if you do YOUR own thing.

Now, when doing your competitor analysis, you’ll want to take the following steps:

1. IDENTIFY YOUR COMPETITORS

Now you’re going to list of all of your competitors. Which other Bakeries bake goods that are similar to yours (or similar to what you want to bake in the future)?

Write down the Bakery’s name with links to their website & social media:

The Free Home Bakery Business Plan Workbook has very handy spaces for you to easily fill in 👉 Access your free workbook here!

If you’re brand new to the Home Bakery scene, then you may not know who your competitors are.

Here are a few ways to find them:

• Search on Google: This is the easiest way to find your competitors. Search phrases like “delicious cake [your town/city]”. You can even get more specific by searching for “home bakery [your suburb]” which will give you results for Home Bakeries closest to you. I encourage you to click through to look at all result pages from 1 – 4 to get a more thorough scope (and because Home Bakeries mostly not listed first).
• Search on Social Media: Social media – especially Instagram – is THE place to be for businesses today. Bakeries that are worthy competitors will have social media accounts. Search hashtags in Instagram like #[your city]cakes or #[your city]food. Or simply search for “Home Bakery [your city]”.

2. STRATEGIES & GOALS OF YOUR COMPETITORS

Cool, now that we know who your main competitors are we need to find out what their angle is for reaching their ideal clients – because you can learn from them and also readjust your own strategy accordingly.

What are they promoting? (Their products, services, lifestyles, feelings…)

What strategies do your competitors have in common ? (Like Instagram lives, Facebook lives, certain types of promotions or giveaways…)

Which things  set each competitor apart from the others on your list? (What do they do differently than all the rest?)

What goals do your competitors have? (I know you’re not a mind reader, but what assumptions can you make from analyzing their business? Sometimes Bakeries will even share their goals on their about pages on their websites…)

3. PRICE RANGE OF YOUR COMPETITORS

Check out the prices of all of your competitors for each different type of bake they sell. This will give you a better idea of what your future clients will be comfortable paying for baked goods.

4. STRENGTHS & WEAKNESSES OF YOUR COMPETITORS

Now that you’ve analysed each of your competitor’s websites, social media, products & services, you should have a pretty good idea of:

who they are, what they are doing, why they are doing it, who they are doing it for and where they are going with their business…

Let’s dig a little deeper. Use the next section on the home bakery business plan workbook to make a list of some of their strengths and weaknesses.

What are they super good at and what can they improve on or change completely ?

STEP #4: Audience & Market Research

Back in STEP #2 of your home bakery business plan we identified and described your Home Bakery’s ideal client. Go ahead and look back to refresh your memory because now we’re going to dig deeper…

1. SURVEY YOUR AUDIENCE

Surveys are hands-down the best way to gather priceless insights into the minds and needs of the people you want to serve – especially because surveys are anonymous.

People tend to share their TRUE desires and thoughts a lot easier when they have the security of anonymity.

Create your own FREE survey on SurveyMonkey or Typeform and then share it with your audience. I recommend sharing it with your email contacts, your social media, local family & friends.

You don’t want your survey to be too long – because then people will be too lazy to answer the questions! Trust me… Keep it to 3 questions 😉

What are the best 3 questions you can ask your audience to understand their needs & desires better?

2. HOW CAN YOU HELP/SERVE YOUR AUDIENCE?

In Step #2 we covered your brand’s personality and in Step 3 we defined the brand personality of your Competitors. With this information in mind, here are a few questions for you…

How can YOU, as a unique human being & baker, help your audience?

What makes your Home Bakery different from all other Bakeries (big & small)?

In what ways can your Home Bakery’s unique qualities benefit your ideal client that’s different from all the other Bakeries in your town/city & suburb?

STEP #5: Your Home Bakery’s Products & Services

And now it’s time for the BEST part – your baked goods & services! Yay! 😄

These are the 2 things that will bring profit to your Home Bakery , so it’s super important to put thought, heart and proper planning into this…

1. YOUR MENU – THE BAKED GOODS YOU WILL OFFER

Which products do your ideal clients need? Refer back to the answers from your survey to get good ideas.

HOWEVER, I do believe that people are aware of what they want, but they aren’t necessarily always aware of what they NEED. So trust your own talents and passion on this as well…

2. THE BAKED GOODS YOU WILL NOT OFFER

Defining what you DON’T bake is just as important as defining what you DO bake. Which products will NOT be on your menu and why?

I’ve also got an amazing free guide for you in my Home Bakery Resource Library to help you find the perfect niche for your business. Join the library to get the free guide on finding your niche.

3. YOUR SERVICES – WHAT YOU WILL OFFER

Which services do your ideal clients need? Refer back to the answers from your survey to get good ideas.

Will you offer delivery? Are you considering to offer customization? Will you offer on-site catering or set-ups? Will you offer rental services for cake stands etc.? Get specific here.

4. THE SERVICES YOU WILL NOT OFFER

Defining which services you DON’T offer is just as important as defining which services you DO offer. Which services will you not offer and why?

5. HOW ARE YOUR PRODUCTS & SERVICES DIFFERENT?

Refer back to your competitor research: How are your products & services different from theirs? Is there anything you could add that would make your menu & services feel even more valuable than theirs?

This sure is a LOT of information to keep track of! You can easily have it all on hand by downloading your free Home Bakery Business Plan Workbook 👉 Access your free workbook here!

STEP #6: Your Home Bakery’s Sales & Marketing Strategy

  Wow! Look how far you’ve come already – I’m so proud of you for putting in all this hard work to create your Home Bakery’s Business Plan…

It’s the first and biggest step you can take to start turning your Home Bakery dreams into a reality! 😄

The last step in your home bakery business plan is working out your sales & marketing strategy. Without a strategy there’s nothing you can do besides “waiting and hoping” your business will grow. A strategy makes it all REAL! Let’s dive in!

1. HOW WILL YOU MARKET YOUR BUSINESS & BAKES?

Take some time to consider which platforms and methods you want to use to market your business and baked goods…

Do you want to use a Facebook group, page or ads? Are there some local Food Markets you’d like to trade at? Do you have some contacts and connections who love your baked goods you can ask to “spread the word” via email or with a flyer?

RELATED: The 4 Essentials of Home Bakery Marketing

Once you’ve decided on some methods, research them online for better results.

2. YOUR MARKETING SCHEDULE

It’s important to set a day and time aside for yourself to spend on Marketing – otherwise life will find a way of soaking up all of your time! When will it be?

Related: How to Plan your Home Bakery’s Work Schedule

3. LAUNCHING YOUR HOME BAKERY (IF YOU’RE NEW)

If you haven’t started your Home Bakery yet, it will help to create a “launch” strategy for your business. How will your business officially come into existence?

What are some things you can do to launch your Home Bakery with a bang and get people excited about what you bake?

4. HOW WILL YOU GROW YOUR HOME BAKERY?

You’ve made it to the last question! Congrats! This last section is about coming up with strategies to grow your business.

This doesn’t necessarily mean employing staff and moving to a larger facility (or opening a retail bakery) – unless that’s what you desire.  This last section pertains more to how you will grow your profits and client base.

Will you outsource certain tasks like cleaning, branding, photography, deliveries, social media management, website building, etc.?

Will you expand your menu & services?

How will you look after your clients to keep them coming back?

Think about things that you can do to keep your Home Bakery Business growing and thriving.

And that concludes your Home Bakery Business Plan my friend! I’m so proud of you for taking action and taking this first step towards starting your baking business 😄

Now you might be wondering, what happens next?

The perfect next step for you is to check out my Ultimate Guide to Starting a Part-Time or Full-Time Home Bakery.

What info are you looking for?

Hi! I’m Aurelia 🙂

I help home bakers create a Home Bakery Business with consistent orders so they never have to worry about a stable income.

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Chez Kobayashi Pastries is temporarily closed. Scheduled to reopen on May 14, 2024.

Review Highlights

“ The Mont Blanc tarts look super cute and are indeed delicious, a little bit on the sweeter side but it is OKAY! ” in 5 reviews

“ I dont have photos bc I crushed them but the croissants were so good and buttery, and this apple raisin pastry was AMAZING. ” in 2 reviews

“ I had no idea what to expect but after a brief introduction, I realized this is a French style Japanese bakery . ” in 3 reviews

Location & Hours

Suggest an edit

14522 Memorial Dr

Houston, TX 77079

Energy Corridor

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Amenities and More

About the business.

Pastries, quiche, savory/sweet crepes and more …

Ask the Community

Ask a question

Are the croissants made in house? They are delicious!

I live in 77069. Is there a way to order delivery?

We are sorry but we don't offer any delivery services.

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Overall rating

Try the mousse so good 100 percent good they are not sweet at all And has the thin layer of sponge cake in between Has little little fruits as well The fruit tart was good too The custard is fantastic I love their vibe and service Full score

See all photos from Lorraine I. for Chez Kobayashi Pastries

I was here for a staff meeting this morning. I had no idea what to expect but after a brief introduction, I realized this is a French style Japanese bakery. The sweet buttery aroma from the kitchen filled the entire restaurant. The menu is written on a black-board style wall paper. I loved how they defined the portion size of each coffee type on the adjacent wall. (I couldn't take a picture because someone was hogging the couch). I ordered the almond croissant and a cup of decaf tea. The croissant was really flaky and filling was soft. It had a good balance of both worlds. Not too sweet. Just palatable. I heard there are some Japanese culture presence in this part of town. Seiwa Market is less than 2 miles away. There are plenty of parking and the restaurant was very clean. I enjoyed every single bit of this place.

See all photos from Lou C. for Chez Kobayashi Pastries

I've driven by this little bakery so many times and finally decided to try it today. Their pastries are delicious! Also, they are neighbors with Blue Willow, which is an incredible indie bookstore. It would be really nice to have a cup of coffee and a pastry at Chez Kobayashi and then look for books at Blue Willow next door. I will definitely keep this place in mind for the future! It is so cute and the desserts are beautifully made.

One of the best hidden gems I've been to. It's in the corner of a complex and their pastries-OMG they're literally perfect. Not super sweet, great prices, and it's always clean. I'm assuming it's Japanese owned, but the workers there are really nice and will tell you all about the pastries if you have any questions. I also love that the prices are not crazy. They're so well made for such a great price. I would come here again and again if having sweets all the time was healthy.

Chez Kobayashi sells French pastries but bakers are Japanese. That means the pastries aren't overly sweet. The bakery also offers crepes, coffee, tea, croissant sandwich, and quiche. Staff greeted me once I entered the bakery. They waited for me patiently to decide on the pastries I wanted. The selection wasn't huge but whatever were displayed in the display case, they looked very appetizing. I had to-go tarts, eclair, Mont Blanc, and a couple of croissants. The tart shells were baked perfectly. The fruits in the fruit tarts were fresh. The custards in the tarts, in terms of sweetness, were perfect. The passion fruit, and lemon tarts were tart, and there were strong passion fruit, and lemon taste respectively. However, the mango tart didn't have any hint of mango which was disappointing. The dark chocolate ganache tart was delicious. The ganache tasted semi-sweet and rich. The chocolate eclair was super good. It was big and filled with custard from front to back. The eclair shell was baked perfectly. The shell was soft but not soggy. Yummy! The chocolate croissant, and the chocolate almond croissant were fluffy and crispy. But they lacked the buttery taste. The chocolate used in both croissants were good. The almond chocolate croissant was topped with generous amount of sliced almonds, and had very strong almond after taste. Lastly, the chestnut flavored cream in the Mont Blanc didn't come through. It was like eating another pastry with colored cream. There is plenty of parking since the bakery is located in a strip mall. The bakery is clean and has inviting interior for customers to enjoy their food. There are a couple of tables and chairs outside the bakery for outdoor dining. I would be back again for their pastries, and also the accessibility is a plus.

See all photos from Hayley F. for Chez Kobayashi Pastries

OMG i love the snowy pinecones! The Mont Blanc tarts look super cute and are indeed delicious, a little bit on the sweeter side but it is OKAY! The Mont Blanc has gotta be great because the hubby bought 3 of them and nothing else LOL. I love the nutty flavor from the chestnut cream, and it was fun eating the angel-hair-like chestnut cream strings little by little. LOVE IT!!

Love me some Mont Blanc

Little place, but delish fresh croissant sandwiches and crepes. Worth checking out. Also have other items but these were all we tried.

Cute little neighborhood patisserie! I had an almondine that was delicious. There also has an amazing apple raisin pastry that has just the right amount of sweetness. This little hidden gem really is a gem.

Okay, I've never been to a Japanese bakery before but since I've been I can't wait to go back. The vibe here is very clean and quiet. I like it, the service is great. Friendly and informative since it was my first time I had plenty of question, I got their fig tart and their mixed berry tart and let me tell you GET IT! They also serve a matcha latte that will knock your socks off. Come here, try their baked good! 10/10 would recommend!

I stumbled across this bakery as I saw it as I was traveling along Memorial. The name caught my eye. I was there late Saturday afternoon so the pickings were slim. The Mont Blanc was perfect. So lovely and not too sweet. Prices were reasonable as well. I'd love to try their quiches, sandwiches, etc. I finally found a decent bakery near me. The service was friendly and helpful.

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9 places to nosh on bagels in southern Maine

From old-school spots to foodie favorites, there's a 'hole' lot to try.

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Bread and bagels at The Works Cafe in downtown Portland. Photo by Aimsel Ponti

From New York-style boiled bagels to Montreal-inspired wood-fired ones, there’s lots of great bagels in southern Maine and several shops have the accolades to back that up.

In 2023, Bon Appetit named bagels from Rose Foods and Rover Bagel among the best in the country.

Two years before that,  Food & Wine Magazine put Rover, Forage and Scratch Baking Co. on its list of best bagels in the U.S.

Whether you like yours toasted with cream cheese or as the bread for your breakfast sandwich, you can find plenty of styles and flavors from Biddeford to Brunswick.

BEACH BAGELS

The offerings at Beach Bagels include a French toast and marble bagel, and the cream cheese menu comprises spreads like strawberry, olive and honey walnut. Along with breakfast sandwiches, Beach Bagels has hearty breakfast options like omelets and pancakes. Best of all, you’re steps away from a beach stroll. Just don’t let the seagulls steal your bagel. Advertisement

WHEN: 7 a.m. to 3 p.m. daily WHERE: 34 Old Orchard St., Old Orchard Beach. beachbagels.yolasite.com ______________

Dutchman’s opened in 2022 as a pop-up housed at Nomad pizza in Brunswick’s Fort Andross building. It’s since become a permanent fixture there and uses the pizzeria’s wood-fired ovens to bake its bagels. The hand-shaped, honey-boiled bagels come in plain, roasted garlic, poppy and a bagel-of-the-day flavor.

WHEN: 8 a.m. to 1 p.m. Thursday to Sunday WHERE: Fort Andross, 14 Maine St., Brunswick. dutchmans.me ______________

FORAGE MARKET

Making bagels at Forage Market involves a two-day aging process. The bagels are naturally leavened with wild yeast starter and baked next to a hardwood fire. There are usually five flavors available, including sesame and garlic. Breakfast sandwiches (including vegan options) are available. Forage also has a location in Lewiston. Advertisement

WHEN: 7 a.m. to 1 p.m. Monday to Friday, 8 a.m. to 1 p.m. Saturday and Sunday WHERE: 123 Washington Ave., Portland. foragemarket.com _____________

MISTER BAGEL

There are 10 or so Mister Bagel locations in Maine, including South Portland and Falmouth. It all began with the Portland location, which was the first bagel shop to open in Maine. The late Rick Hartglass started Mister Bagel in 1977, and it is still a family business. Music fans will appreciate the breakfast sandwich menu, which includes The David Bowie (bacon, egg and American cheese), the Jimmy Buffett (egg with roast beef and cheddar) and The Lady Gaga (avocado, salt and pepper, with or without egg).

WHEN: 6:30 a.m. to noon Monday to Friday, 7 a.m. to noon Saturday and Sunday WHERE: 599 Forest Ave., Portland. misterbagelforestave.com ______________

At Rose Foods, the menu varies depending on the day, but there are usually six to eight flavors available. For example, should you pop in on a Friday, you’ll find a poppy and onion bialy (a cousin of the bagel that is not boiled). Rose Foods also makes a number of bagel sandwiches, including the Classic Nova with Nova lox and the Classic Whitefish. Advertisement

WHEN: 7 a.m. to 2 p.m. daily WHERE: 428 Forest Ave., Portland. rosefoods.me

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ROVER BAGEL

At Rover Bagel, you’ll find wood-fired plain, poppy, sea salt, sesame and everything bagels available most of the time, and the spread game here is strong with cream cheese options like lemon-thyme-honey cream and chili-garlic.

WHEN: 7 a.m. to 1 p.m. Wednesday to Friday, 8 a.m. to 1 p.m. Saturday, 8 a.m. to noon Sunday WHERE: 10 West Point Lane Suite 10-204, Biddeford (Pepperell Mill). roverbagel.com

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SCRATCH BAKING CO.

You haven’t lived until you’ve experienced the line of devoted fans waiting for Scratch Baking Co. to open, especially on weekend mornings. Along with the popular Maine sea salt, plain and other everyday flavors, Scratch has a daily special bagel. There’s honeyed rosemary on Wednesday and jalapeno cheddar on Thursday. Scratch is also famous, at least to locals, for its P-Cheese spread. It’s a pimento cheese recipe made with cheddar, mayo, roasted red peppers and seasoning and was passed down to co-owner and head baker Allison Reid by her grandmother, Mern.

WHEN: 7 a.m. to 1 p.m. Wednesday to Saturday, 7 a.m. to noon Sunday WHERE: 416 Preble St., South Portland. scratchbakingco.com ___________

THE MAINE BAGEL

The Maine Bagel is a drive-thru with several breakfast and other kinds of sandwiches available. With a bagel list that features egg and bialy among the standards, the family-owned spot is the perfect place to stop on your way to Pine Point Beach. The Maine Bagel really shines with a dozen kinds of cream cheese spreads, including raisin-walnut, lox, strawberry, cranberry-nut and bacon-chive.

WHEN: 6:30 a.m. to 2 p.m. Tuesday to Friday, 7 a.m. to 1 p.m. Saturday. WHERE: 117 Route 1, Scarborough. themainebagel.com Advertisement

THE WORKS CAFE

The Works Cafe is an institution on the edge of the Portland’s Old Port. It opened in 1990 as Bagel Works before it changed its name in 2002. The original shop in this regional chain opened in Manchester, Vermont, in 1988, and there are 11 locations around New England, though just the one in Maine. Gone are the ’90s-era banana-walnut bagels and cold pizza cream cheese, but The Works Cafe is still a reliable place to grab a salt, multigrain or cinnamon raisin bagel, among others. The menu also has bowls, sandwiches and smoothies.

WHEN: 6 a.m. to 7 p.m. daily WHERE: 15 Temple St., Portland. workscafe.com

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