Starting a Home-Based, Special-Order Bakery Business

Most communities have bakeries that offer various breads, cakes, and other delights. Many of these established bakeries also provide special-order or catering services. Traditional bakeries require a retail store to sell their goods. Few home-based businesses would consider or be able to operate a retail bakery at the home though. Starting a special-order bakery could be a reasonable home-based business for many entrepreneurs though.

The United States Department of Labor Bureau of Labor Statistics (BLS) reports that 151,600 people worked as bakers during 2008. BLS projects very modest growth in this occupation over the decade from 2008 - 2018 with a 0.2 percent increase in jobs. Reported median annual wages are "low" at $23,290. 7.6 percent of bakers were self-employed during 2008.

Getting Started

Special-order bakeries may make cakes, breads, and other baked goods for weddings, anniversaries, graduations, reunions, and many other types of events. These bakeries may also bake for regular customers as items are ordered.

Part-time bakers may be able to get by with a decent home kitchen. Most bakers will want to work in a commercial kitchen though. Some entrepreneurs may have the space and capital to set up a commercial kitchen in their home. Another option is to rent space in a commercial kitchen on an hourly or daily basis when needed. Renting kitchen space can save a lot of money when starting the business.

Home-based bakeries can also prepare baked goods for sale through other stores or restaurants in their community. The baked goods will need to be sold to the restaurant or store at wholesale prices, but this does present another opportunity to increase sales.

Marketing

Bakers who are interested in selling their baked goods through restaurants or stores should contact these other businesses directly. This approach will usually result in many rejections, but it only takes one or two restaurant or retail deals to put your new bakery on the map.

Advertising in local, community newspapers can be a good way to reach many potential customers. Community newspapers usually offer reasonable advertising rates with discounts for long-term advertising agreements. Readers will become accustomed to seeing your bakery ad in the newspaper each week and will know where to find your ad when they need to place an order.

Websites provide an affordable opportunity to present pictures, testimonials, and pricing information to nearly every potential customer in your community. Optimizing the site for local search will allow potential customers to find your bakery website when they search for bakeries or baked goods in your area.

Cautions

Commercial kitchen certification may be required for home-based bakeries. In many cases, this certification will require setting up a separate kitchen with a separate entrance. Contact your county or state health department for more information about regulations in your area.

Business liability insurance is frequently a good idea for businesses. Food service businesses should always maintain appropriate liability insurance. The risk of a lawsuit should someone become sick from food that was prepared in your bakery should make business liability insurance seem like a wise investment.

Conclusion

Starting a home-based, special-order bakery can be a good business opportunity for the entrepreneurial baker.

SOURCES

United States Department of Labor. Bureau of Labor Statistics. Site accessed on 7 October 2010.

Starting a Home Bakery Business. Food Service Warehouse. Site accessed on 3 December 2010.

Michelle K Hogan. How to Start a Bakery Business. Chron Small Business by Demand Media. Site accessed on 3 December 2010.

Melinda Diebel. Starting a Home Bakery Business: Great advice on starting your own home based bakery. From health considerations to promotional ideas. Knol. Site accessed on 3 December 2010.