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This includes the legal side of things which is imperative to stay on top of. You also need to work to a deadline and be prepared to liaise closely with customers. It requires good communication skills, perfect presentation and patience.
Check with your state Controller to see if your product is subject to sales tax and if you need to obtain a permit and charge sales tax on your goods. Get ahead of deadlines, be more organized and efficient so your day-to-day tasks are a snap! My goal is to help you start and manage your online business for maximum success so that you can work smarter, not harder. You can also set up booths and advertise your business at local events like bridal shows and craft fairs. This is also the perfect time to decide whether you want to offer gluten-free and vegan options since that will take more work.
Cake business statistics in the UK
You can then become even more niche by targetting people specifically in your area - ‘diabetic birthday cakes in Brighton’, for example. The UK government is well aware of the increase of food companies starting. In this situation, you’ll need to register as a self-employed partner rather than a sole trader.
A passionate baker, she spends much of her time creating celebration cakes for friends and family - particularly for her two lucky children. Pricing your cakes is one of the trickiest things about running a cake business. 'We calculate the cost of ingredients then put a 3-4 Xs mark-up on it to cover decorating and our time,' say Rachel and Annette of Morello Bakery, Hants. 'I use a spreadsheet with the quantity and price of ingredients and baking time. Bear in mind the customer is paying for your skills and experience.
Draft A Solid Business Plan
Cleaning facilities – you should have adequate cleaning facilities for washing equipment and cleaning food, with both hot and cold water available. Record all of your flavor combination ideas in a spreadsheet. That way, you can offer a few different kinds at one time and cycle through the different flavors as the seasons change. Use a reliable invoicing and recordkeeping software like Quickbooks or Freshbooks.

Here are some of the biggest benefits that you’ll find when you start your own cupcake business from home. Equipment – Bakery business costs include a lot of equipment. Some may exist in your location, but you will have to make sure you budget early on for things like worktables, proofing cabinets, dough preparation equipment, and bakery ovens. Inventory – Managing inventory is a crucial part of a bakery business’ financial health. There are many ways to organise inventory, but one of the best is through online inventory management systems specifically designed to track and edit your quantities.
The customer isn’t boss.
Not every local authority requires cake makers to have a physical inspection of their business set up. If they do though, there are a couple of reasons it’s a great idea to get an inspection done. Ingredients will be one of your biggest costs, so it's important to shop around and decide where to source them. Amy Nolan from cakesfrommykitchen.co.uk recommends Costco when you need to buy in bulk. Or you may want to support local farmers by sourcing your eggs, butter and milk from them and making this a feature of your cakes. The cost of starting a baking business in the UK will vary depending on a range of different factors, including the products you choose to make and the scale at which these will be produced.

Always respect yourself when you price your work.' says Polly Pomfrey of Polly's Patisserie, East Sussex. If you're starting a cake business, start spreading the word among your friends, family and colleagues. Most cake makers get their first orders from people they know. 'Practise your recipes on family and friends, too' suggests Angela Davage, who runs a cake business in Somerset.
Get insurance
Most home policies will explicitly exclude coverage for business losses. You need to get a special working-from-home policy if you do work from home. If you have separate premises then regular business insurance will do. It’s just a really good idea and not necessarily massively expensive.

If you’re renting or leasing, you’ll have to get permission from your landlord to do so. Getting a Level 2 Food Hygiene Certificate costs just £12 and lasts 3 years. When you have though really tough days and weeks where nothing goes right, your ‘why’ is the reason you come back tomorrow, it’s the motivation that pulls you through tough times. Alan Thomas, CEO at Simply Business says that this increase is largely due to the pandemic, but the Great British Bake Off has also inspired many entrepreneurial bakers.
I think the most important thing to know before starting a cake business from home, is that when you do, you will have one of the best jobs in the world. You are part of so many special occasions, you make so many people smile, your art and talent will bring joy to so many families, and that is really something to be proud of. There will be long days and longer nights, you will need to buy in extra storage space for tins, moulds, cutters and you won’t be able to simply walk past a Lakeland without ‘popping in’. But it really is an awesome job that is so much more than just cake. Combining a love of baking with running a business makes perfect sense if you love creating sweet treats. Running a cake making business from home is a flexible, family friendly way to make money.

It’s not fun and exciting like covering your first cake with sugar paste or achieving your first perfect drip with ganache. Keeping your personal and business finances separate is really helpful to keep track of spending and income. Most business accounts charge a set fee per month so do your research and find the best value business account for your business. The business began as a single shop in Jesmond but has now grown to incorporate a shop in Byker and a separate bakery in Gateshead that all work in conjunction with an online shop service. Hannah now runs the business with her husband Ben, although her parents Liz and Jon are still active. It can be a challenge to start a cake business from home, but all it needs is a little time and your commitment.
It might seem a little daunting but it’s straightforward and easy to do once you know what’s required. Also, we share our tips on marketing and having all the correct certificates in place. As a self employed cake maker, you need to understand everything you need to do to be compliant and successful.
Determine where the food has originated from before purchasing anything. The packs have been designed for small businesses and contain information on personal hygiene, pest control, cross-contamination, cleaning, chilling and cooking, among other areas. Register a food business on the UK Government Food Standards Agency website. It's time to get baking your cakes and hopefully accept your first of many orders! You may want to eventually think about hiring a part-time helper to help you decorate the cakes and/or load and accompany them to their destinations.
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