How to start a bakery business from home

Published by LoveLocal on November 18, 2022

Do you like to bake? Are you the go-to person for all your friends' and family's baking doubts? Do you binge-watch baking competitions on TV and fantasize about competing for the grand prize of opening your own bakery and start thinking about the various baking business ideas?

Do you want to spend your days baking chewy cookies and decadent cakes? But do you also want to be your own boss and make your own decisions? However, does the realist in you realize that you may not have the resources or the time to open your own retail bakery?

A home-based bakery could be the answer!

Instead of leasing an expensive storefront and hiring a team of employees, this type of small business allows you to bake to your heart's content, be your own boss, and work from home.

Baked goods businesses have grown in popularity in recent years, but they have been around for quite some time. However, recently, many entrepreneurs, more than ever before, have begun selling cakes, cupcakes, and cookies from their homes and have expanded into regular retail bakeries and even franchises.

You might not be interested in baking cakes, but that doesn't mean you can't open a bakery. There are many different types of treats you can bake at home, which means various baking business ideas , including:

  • Cupcakes and cakes ( cake business ideas include wedding cakes, theme cakes, fruit cakes, etc,)
  • Cookies
  • Bars and brownies
  • Pies
  • Muffins
  • Breads
  • Biscotti

How to start a bakery business from home?

Starting a home-based bakery may sound appealing and simple - after all, you're already baking. But it's easier said than done! If you want your home baking business to grow and find paying customers, you must treat it like any other full-time business. Unfortunately, the marketing aspect of the home baking business is frequently overlooked, and as a result, the majority of home bakers struggle to find paying customers.

What Do You Need to Get Started with a Home Baking Business?

It goes without saying that you should be able to bake and that your creations are delicious. When starting a baking business, there are several other things to know or obtain, such as:

  • Sufficient knowledge and skill in safe food preparation and potential dietary issues. For example, if you have peanuts in your kitchen, you should notify customers who are allergic to the nut.
  • A background in retail or food service would be advantageous.
  • A supply of ingredients plus storage space, a regular shopping schedule, and reliable suppliers. Remember to keep your equipment needed to start a bakery and ingredients separate from your personal items.
  • Any permits or inspections mandated by your state, county, or city. A health inspector may pay you a visit.
  • An understanding of your competition and knowing your USPs

How to start a baking business andHow much does it cost to start a home baking business in India?

If you are wondering how to start a bakery, though you can start a home baking business with as little as an oven and some basic ingredients, let's look at a rough estimate of the cost of starting a small home baking business in India.

Bakery setup cost :

  • Space: If you are starting from home, there is no startup cost because you will only be using your home's kitchen. If you are starting commercially, you may look at a 500 sq ft space that will be approximately 50K rent per month, implying a 150K investment based on three months of security deposit.

  • Business Licenses: This will vary depending on where you start your business. If you start from home, you may not need a licence to begin. If you are starting a business commercially, you may need to spend around Rs. 100,000 on FSSAI, a fire licence, and a municipal licence.

  • Cost of Equipment: A home baking business is simple to start and requires little capital. To begin, you will need an oven, some tins and trays, mixing bowls, a spatula, and so on. Keeping only the necessities in mind, the cost could range from Rs.10,000 to Rs.15,000. However, for setting up a bakery commercially, you will need Mixers, Big Ovens, Deep Fridge, a working table, a sit-out space, and so on, and the total cost for a 500sq. ft. space will be around 600K. This is one of the most crucial costs when it comes to bakery setup cost.

  • Ingredient Cost: Depending on whether you want to start with cakes, cookies, or bread, you will need to create a list of ingredients. Some ingredients are simply too common in almost all types of baked goods, while others are specific to the type of baked goods you may prepare.

  • Packaging Cost: When you need to sell your products, they should look great in their packaging. Before even tasting your product, the customer will notice its packaging. The cost of packaging is difficult to calculate because it depends on the quantity purchased; however, based on the investment levels listed above, let us estimate it at Rs.5,000.

  • Marketing Cost: Marketing costs include your letterheads, business cards, logo, and packaging design, which is the bare minimum you would invest in. The marketing cost will increase significantly as you grow, but for now, let us assume a cost of rs.5,000. The marketing cost for a commercial space will be significantly higher. You will need a visually appealing display board, newspaper inserts, invitations to influencers, and money. This will all cost around Rs. 100,000.

  • Miscellaneous Costs: There are many expenses that we cannot account for because they vary from person to person, such as transportation costs. This could be due to you travelling to different locations to obtain the equipment needed to start a bakery and ingredients, or it could be due to delivery charges, etc. Packaging, marketing, and other costs may be higher or lower depending on where you are. So, let's put Rs. 10,000 in miscellaneous for all those unknown and unaccounted-for expenses.

Now that you know how to start a baking business ,if this business is something you are interested in and you have the required funds or at least a solid plan by which you can get the financing sorted, you should start your research right away to get all the necessary licenses, etc. and to create your home bakery business plan to kickstart your journey!

November 18, 2022
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