Choose The Right Business Structure
How you organize your business has a big impact on taxation and management. If you need help deciding, our accountant partners can advise which business structure is best for your company.
Corporation : The traditional corporate entity is separate from its owners and is managed by directors and/or officers. There are regulations that limit the number and citizenship of owners, and in general, this business type is reserved for large companies with a lot of employees and businesses with complex infrastructures. Corporations file separate tax returns and are taxed at corporate rates.
Owners also report earnings on personal tax returns and pay income tax. Double-taxation is the term for this type of tax flow in a business. Because owners are essentially taxed twice as a Corporation, it could cost more to run this type of entity. If you do organize as a Corporation, you can benefit from Small Business status with the IRS if you file form 2553 to be recognized as an S-Corp.
Limited Liability Company : The LLC has become the most popular business type with entrepreneurs. Its a separate entity from its owners, who are members and/or managers. This entity type does not file company tax returns. Instead, owners report profits, losses, and expenses on a form attached to their personal tax returns. Because the LLC doesnt file tax returns, theres no taxation at the corporate level.
Register a Bakery in Any State
Price Your Baked Goods
Most bakers base their retail price points on the cost of supplies and the time it takes to make the goods, but Green says this formula is flawed.
Your prices should include things like clean up time, packaging, and time spent promoting your business on social media, she says. The biggest hidden cost in a bakery is time. Its easy to forget the time you spent making flowers because you were watching TV while you did it. There is nothing worse than realizing afterward that you earned 50 cents an hour on a fabulous creation.
How To Avoid The Dreaded Sinking:
Low and Slow applies not only to the baking of the cheesecake, but also the MIXING. Especially if you will be making mini cheesecakes.
Mini cheesecakes will completely expose your mixing method. Tip number 3 is ALL about the mixing.
The KEY thing during the mixing phase is not to whip in ANY air. If you do not have a stand mixer with a paddle attachment, make it by hand seriously. Do not bring a hand mixer anywhere near your cheesecake batter!
- Add the soft, room temperature cream cheese to the mixing bowl. Beat it on medium low speed till smooth.
- Add in the sugar. Beat it on medium low speed for 30 seconds. Let it stand for 5 minutes so that the sugar can melt. Beat it on medium low speed again for 30 seconds till smooth. Dont rush it and beat it on high speed. Ever. At any point.
- Scrape down the sides and bottom of your bowl thoroughly and mix again on medium low speed.
And now the eggs.
- I like to crack the eggs in a separate bowl and lightly mix them together so that the yolks break and are easier to incorporate into the cream cheese.
- FROM HERE ON OUT ONLY MIX ON YOUR MIXERS LOWEST SPEED.
- Before mixing in the last egg, scrape down the sides and bottom of your bowl thoroughly and mix again on lowest speed.
I like to stir in the cream/sour cream by hand because the mixer takes forever to incorporate the liquid.
If you follow the low and slow mixing method, I guarantee that your cheesecake will come out perfect and not sink a bit!
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Develop An Online Presence
You make a product that looks beautiful, so photographs are key.
Set up a simple website with important details like what you do, where youre based, and how people can place an order, and add plenty of mouth-watering photos. There are tons of website builders to choose from, including WordPress, Squarespace and Wix.
Also set up a Twitter account, a Facebook page, and an Instagram account for your business, and keep them updated with posts and photographs. Its important to interact with other people on social media, so spend a few minutes each day liking and commenting on other peoples posts, and following relevant accounts.
You could even consider selling your cakes on Instagram by using the shoppable post feature and creating your own online shop. Our guide on has more tips on how to set this up.
Another idea could be to record video tutorials and baking tips and publish them on YouTube. Or why not publish your recipes as a cookbook ? This is a great way to establish yourself as a baking authority while also creating a new revenue channel for your business.
Choose Your Bakery Type
All retail bakeries sell baked goods directly to consumers, though some specialize in one kind of pastry or service. You could choose from the following types of retail bakeries:
- Bakery café: A combination of bakery and café that sells baked goods and provides a dining space for customers.
- Counter service: A bakery selling goods at a counter without a dining area.
- Bakery food truck: Products are sold from a truck but are typically baked in an off-site kitchen.
- Specialty bakery: Features one type of baked goods, such as wedding cakes, cupcakes or gluten-free pastries.
- Home bakeries: Home-based businesses that often sell products online and ship goods to customers.
In addition to made-to-order cakes, Sullivan also sells single-serve pastries at Sweet Boutique Bakery. You may want to consider diversifying your product offering to attract a variety of customers, especially if you mainly sell something seasonal, like wedding cakes with most ceremonies in the summer.
The type of bakery you want to operate would determine other aspects of the business, such as the amount of space, equipment and ingredients you would need, Wilson said. Well discuss those details next.
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Hiring And Training Staff
The size of your staff will depend on your bakery’s size and type. For example, a retail bakery will need to hire and train front-of-house staff to take orders and work the cash register. Most of your bakery staff will work in the back-of-house, though, preparing and baking your food.
Your bakery should have at least one or two employees that have formal training or bakery experience to oversee the actual baking process. Additionally, you may also want to hire some unskilled workers for washing dishes, mixing ingredients, packaging products, and doing other tasks that don’t require previous experience or expertise.
Some bakeries will also need professional pastry chefs and personnel to complete delicate and specialized tasks. For example, bakeries that bake wedding cakes should look for experienced cake decorators. Bakeries that offer artisan breads should consider hiring someone who specializes in bread baking.
How To Start Selling Baked Goods From Home
While you might be hard-pressed to find someone who doesnt love to eat baked goods, finding someone who loves doing the baking is another story. But for some people, not only is baking a creative outlet and a great stress reliever, its also a great business opportunity.
Although the traditional brick-and-mortar bakery has its merits, starting at home is a good way to get rolling, as theres a low barrier to entry. You can launch your business faster by using your home kitchen and all its baking utensils.
There are also fewer expenses required to start. Without the need to rent a property or build a bakery, the bulk of your budget can go toward buying quality ingredients and marketing your business.
Just so you know
Create custom online order forms for your business so you can receive orders and accept payments seamlessly from any device.
Ovenly founders Agatha Kulaga and Erin Patinkin started in their Brooklyn home before growing to a company with over 70 employees. They are proof that learning how to start selling baked goods from home can be profitable if you have the blueprint for success.
In this piece, well explain the steps you need to take to start a home-based baked goods business.
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Summary + My Recommended Hand Mixers
Keep Track Of Your Ingoings And Outgoings
Since youre running your own business, you need to keep track of your income and your business expenses so that you can enter this information when you complete your tax return.
Our guide to tax-deductible expenses should help you figure out which expenses you can subtract. Remember that you need to keep your receipts as HMRC may ask you to produce evidence of your expenditure.
Theres lots of small business accounting software available that can help you to manage your business finances.
Youll also want to use a budget calculator and choose the best business bank account, so you can keep your personal finances separate.
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How Can I Sell My Homemade Food Online
Selling your homemade food online is simple and rewarding with the right tools. First, you should use an eCommerce website builder to create an online presence for your business. Customers will be able to order directly from your site and find all of the information they need.
Second, you should standardize your recipes and eCommerce packaging. Fast, convenient shipping and handling is a cornerstone of selling food online. Customers expect their orders to show up in great condition, just like anything else.
Third, develop a comprehensive marketing plan that makes your business noticeable. Online food sales is already a crowded market, so you need a completely unique or fantastic product to make money consistently.
How To Avoid The Dreaded Cracking:
A cracked cheesecake can happen as a result of your mixing, but more often than not it is because of your baking and/or cooling. A baked cheesecake is like my husband in winter If you suddenly pull the duvet off him in the freezing morning hours, he WILL crack.
Cheesecake has a sensitive soul. Respect that and all will be well. For this reason, it needs to be cooled very gently and gradually.
- When baking, let the cheesecake bake in peace for at least one hour before opening the door and turning it or checking it.
- As soon as my cheesecake is perfectly baked, I turn the oven off and leave the door closed for 5 minutes.
- Then I leave the oven door ajar. Let the cheesecake hang out in the oven for another 90 minutes to be safe.
- Remove it from the oven and let it rest on the kitchen counter for 1 hour.
- You may now place it in the fridge overnight for the cheesecake to fully set and get a perfect texture.
Cool your cheesecake gradually if you want it to be perfect and crack free. There is no way around this. And besides, it is once again PASSIVE time. You can do other things while it cools!
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How To Start An Online Bakery: 6 Lessons From Kerbside Creamery
For many of us, shopping online has become even more normal than going to the store. With the rise of Amazon, Etsy, and Shopify, there are loads of places to get everything from tacos to tunics with the click of a button. And thanks to a low barrier to entry and relatively cheap startup costs, truly anyone can start an online store.
But starting an online bakery? Don’t you have to be the winner of The Great British Bake Off to do something like that? Nope. As long as you’ve got passion, a plan, and a knack in the kitchen, you’ve got all the ingredients you need.
Whether you’re a professional hoping to move a brick-and-mortar store online or a home baker looking for a side income, in this article we’ll give you the recipe to plan, start and grow a successful online bakery.
Design The Display Area Of Your Bakery Business
The display area or the front end of the bakery business should be well designed and created in a manner that every item is noticeable to attract walk-in customers. You mainly require a Display fridge for cakes and pastries. Other than the refrigerator, the display area should have proper storage and a display rack for the items.
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Start Baking And Selling
Now that youve got the details sorted, you are ready to start baking and open up shop. Dont forget to advertise your new business, to make sure that people know that delicious home made goods are going to be available for sale right in their community.
Starting a baking business can be a fun project to get up and running. From planning the product list to getting the logistics sorted and setting your prices, it doesnt have to take long and, realistically, you can be opening up your business within a few weeks.
Theres no better time to get started than today!
What You Need To Start A Home
It goes without saying that you should know how to bake and that your concoctions are very tasty. There are several other things to know or obtain when starting a baking business, including:
- Sufficient skill and knowledge of safe food preparation and potential dietary issues. For example, you’ll want to disclose if you have peanuts in your kitchen to warn consumers who are allergic to the nut.
- A retail or food service background would be helpful.
- A supply of ingredients plus room to store them, a regular shopping regimen, and good suppliers. Remember, you may need to store your equipment and ingredients separately from your personal ones.
- Any licenses or inspections required by your state, county and/or city. A health inspector may visit your home.
- An understanding of your competition and how your baked goods will stand out in the crowd.
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Register A Limited Liability Company Or Corporation In Your State
In the US, businesses are required to register in the state where they operate. Youll need to choose an appropriate business name and structure, then file paperwork to be recognized as a company. Forming either a Limited Liability Company or Corporation separates your bakery from personal assets and provides limited liability protection in the event of lawsuits or tax issues.
Folding Your Cupcake Cases
Youll need a muffin/cupcake tin and a cup, measuring cup or ANYTHING that fits snugly into the holes of your tin. For me it is a large bottle of Cerebos Salt. Whatever you are going to use, lets call it a squeezer.
- Place a single piece of paper over a hole as centralized as possible. Remember at this point to have the one non-stick side facing DOWN . The non-stick side should not be in contact with the cupcake/muffin.
- Press down with your squeezer over the paper, into the hole.
- Roll around the squeezer to force the paper into the bottom of the hole.
- The ears of your DIY cupcake liners will be a bit uneven and random. Use your thumb and index finger to grab each one and flatten it out. Especially the base of each ear. Do this with all 4 ears. You can twist you squeezer to access all the ears. You dont need to turn the pan every time.
- Press each ear tightly up against your squeezer.
- Firmly roll around your squeezer again to really imprint that holes shape in the paper.
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How To Start A Bakery: A Step
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Have you ever wanted to make people happy with yummy cakes or tasty breads? Ever thought about entering one of the fastest-growing industries for small businesses? It may be time to start a bakery!
Today were revealing insider information on how to start your own baking business.
We connected with Puran Deep, a successful bakery owner who runs the wildly popular Wild Wheat Bakery in Kent, Washington. In 2019, his bakery exceeded over $1 million in revenue!
Now, were passing his expert advice on to you. Well show you step-by-step how to plan, start, and grow a thriving bakery business in this $30 billion per year industry.
In addition, were giving answers to popular questions regarding business plans and cost factoring. Youll get straight-forward tips, takeaways, and practical advice to help you get started on developing your bakery ideas.