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How To Set Up A Cake Business

It’s quite possible to set up a home-based business from a domestic kitchen with very little initial outlay How To Set Up A Cake Business

If you find yourself glued to the telly every time the Great British Bake Off hits the screen, chances are you’ve got your own star baker ambitions. But you don’t have to go on TV to live out your dreams – if you’re a bit of whizz in the kitchen and love to get ready, get set and bake, a cake making business could be for you.

It’s quite possible to set up a home-based business from a domestic kitchen with very little initial outlay, or at the other end of the scale, plump to launch a cake empire. But even if you do start out from home, depending on how your business develops, there’s no reason that the sky can’t be the limit if that’s where you want to go.


But before you even think about getting the cake mixer out, do your market research. If you want to start off small, target local cafes and cake shops and work out how you can improve on what they sell. Be sure though that their customers will appreciate a homebaked product and are prepared to pay extra for it. Take in cake samples and ask if there’s anything they want to sell but can’t currently source – wheat or dairy free cakes are often in demand. Check out local farmers markets too – if there’s no one selling cake, you could find out about renting a stall.

If you choose to target the events market, for instance, supplying wedding and birthday cakes, chances are you can charge more for a cake – but it’ll take you longer to make, so your hourly rate won’t necessarily be more. You’ll also more likely need more skill, so a course in sugar work or cake decorating won’t go amiss. Start out by offering to bake cakes for friends birthdays to see if you really think you’ve got what it takes. There’s no reason though why you can’t target a variety of markets.

Once you’ve got an idea of the sort of business you want to set up to start, you need to ensure your premises, even if it’s your own kitchen, meets hygiene regulations and that you understand food safety and preparation rules. You also need to register your premises, even if you’re working from a home kitchen, with the local authority 28 days before you start to trade.

Business planning

Once you’ve tested the waters, you’ll have a clearer idea of how you’d like the business to develop. whether it be a paying hobby, or something more ambitious – in which case, now is a good idea to make a business plan. As you get more adept and win more clients, you might need to invest in more catering equipment, which your business plan should reflect.

Marketing will be key to your success. A website is free to set up and needs lot of gorgeous pics of all the delicious cakes you make. Social media is really effective too – again, lots of lovely photos and news about what you’re up to.

Pricing your cakes can be difficult. You need to make a profit, but don’t want to scare people off. Consider though that it isn’t unusual for top bakers to charge up to £900 for a four tier wedding cake - but that involves a huge amount of work. You’ll also need to deliver the cake that you make, but you can charge extra for the service. Read more like this

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