Want to learn how to make extra money by starting a home bakery? Here’s what you need to know about the equipment, food laws, pricing tips, and more. Denise Treco, who successfully ran a home bakery as a side hustle, shares her insights to help you start your own home bakery business.
If you love baking, you’ve probably heard someone suggest you open a bakery. Whether it’s your ultimate dream or not, you can turn your passion for baking into a profitable side hustle by starting a home bakery.
Cottage food laws, which vary by state, allow you to run a home bakery legally. Before diving into the details, here’s a bit about my experience. I needed extra income to support my mom and myself after becoming a homeowner. Baking was always my hobby—I brought desserts to every family gathering and made birthday cakes for colleagues. When I needed extra cash, it hit me that I could turn this hobby into a side hustle.
I started my home bakery legally and earned about $1,500 to $1,800 per month. After three years, I expanded into a retail bakeshop, which I owned for six years before selling. Starting a home bakery has its benefits, but it’s crucial to research and follow your local food laws. You can build your business slowly or quickly, depending on your needs, and do it all from home with a relatively low investment if you already have basic baking tools.
If I could do it, you can too. All you need is a passion for baking, a few essential tools, your favorite recipes, and the ability to promote yourself and your work. Let’s go through the steps to start a home bakery and grow your bank account.
First, research your local cottage food laws. These laws, which vary by state, outline what you can and cannot sell, how much you can earn, and other specifics. For example, Texas requires a basic food handler’s certification, while Oklahoma has more restrictive laws. Make sure to understand what foods you can sell and any inspection requirements.
Next, choose a business name that’s unique and has available social media handles and a website domain. Open a separate business bank account and track all your expenses. Consider talking to legal and financial advisors about structuring your business and tax implications.
If you’re a hobby baker, you probably already have most of the necessary tools. Avoid the mistake of buying a lot of new equipment right away. Here are some essential tools: a stand mixer, oven, oven thermometer, cake and cupcake pans, mixing bowls, cookie sheets, measuring spoons and cups, spatulas, and a whisk. Depending on your menu, you might need additional tools like a rolling pin, pie dishes, or a digital scale.
Ingredients can add up quickly, so look for the best prices. You’ll also need packaging materials. Online resources and local suppliers can be helpful. Facebook groups can offer support and advice, especially those specific to your state.
When deciding what products to sell, avoid offering too many options. Focus on a few items that get consistent praise from family and friends. Be honest about your skill level and start with a manageable menu. You can always expand later.
You’ll also need labels for your products, listing the name, ingredients, allergens, quantity, and your business name and address.
Pricing your goods can be tricky. Factor in the cost of ingredients, preparation time, packaging materials, utilities, and delivery services. Don’t undervalue your work. Set reasonable prices and consider offering discounts to family and friends.
Marketing is crucial. Start by telling everyone you know about your business. Provide exceptional customer service to encourage word-of-mouth referrals. Create social media profiles and join local Facebook groups. Network with other businesses and get involved in your community. Use testimonials from satisfied customers to build credibility.
Building a website is also important. It doesn’t have to be elaborate—just a simple page with your location, menu, and contact information. A website helps legitimize your business and makes it easier for people to find you.
Starting a home bakery can be a rewarding journey. You can support your family by doing what you love and decide how much work you want to take on. Whether you want to earn a little extra each month or turn it into a full-time business, it’s up to you to make the rules and fit the business into your life.