How to start a small cake business from home?

Can I sell cakes from home as a hobby?

Perhaps you are currently planning on selling baked goods at home? Well, there are a couple of things you must do before you can sell your baked goods to the public. These steps include registering your business, learning the food hygiene laws, achieving food hygiene certificates, and more.

What qualifications do you need to sell cakes from home?

Level 2 Food Hygiene & Safety Certificate – This course is offered in three versions: catering, retail or manufacturing. The one you should take depends on your specific environment, but most home businesses would take the Level 2 Food Hygiene & Safety for Catering version.

Do I need insurance to sell cakes from home?

Working from home or out of a dedicated bakehouse, you'll need some form of insurance to protect your equipment, fixtures and fittings. If you don't have insurance, you stand to lose a lot more than the cost of a claim.

Is homemade cake business profitable?

Cake Business Profit

A 20% profit margin on baked goods in the cottage food industry is very reasonable. While some experience cake business profits that are even higher for luxury cakes, like wedding cakes, or special order and custom cakes, you can expect to make between 10% and 40% profit if you are doing it right.

How to Start Your Cake Business From Home || Home Bakery Business Plan

Is it cheaper to buy or make a cake?

It's a lot cheaper to make home made desserts. Example… it's about 5 bucks to make an entire cheesecake at home compared to 5 bucks a slice bought outside the home. Cake from scratch is around 4 bucks as opposed to 10 bucks, at the very least purchased out of home. Which is cheaper, store-bought bread or homemade?

How do you calculate the price of a cake?

In theory, pricing a cake is easy. It's simple math: Cake Price = Cost of Ingredients + Cost of Time (hourly wage for hours worked).

Can I make cakes at home and sell them UK?

You absolutely can sell cakes from your home kitchen in the UK. However, you need to make sure you're abiding by UK and EU hygiene laws. The most important thing to remember here is food safety. You must ensure that you maintain high standards of food hygiene when preparing, cooking and handling your sweet treats.

Can I sell cakes from home if I have pets?

If the cakes contain high risk ingredients e.g. fresh cream they should be transported in cool boxes to maintain the temperature at 8°C or below. Having pets is absolutely fine! However you must consider this as part of how you prevent any animal hair etc from ending up in the food you prepare.

Do I need a food hygiene certificate to make and sell cakes?

Should I get a food hygiene certificate if I'm selling food from my home? If you are making money from the food you have made at home and you have registered as a business, then the answer is yes. This is because your customers need to know that they will be kept safe.

Do I need a license to sell cakes from home UK?

You need to register as self-employed when starting a food business, even if you are part-time or have another job. You should register at GOV.UK to verify your account and confirm the specifics of your food business. Failure to register may result in a fine.

How do I start baking at home to sell?

What do I need to start a cake business from home UK?

Can you run a cake business from home?

Register as self-employed

You need to do this even if you're going to be running your home baking business as a side hustle, part-time or if you have another job. To set up as a sole trader – the simplest business structure – telling HMRC is all you need to do to register your business.

How much does it cost to start a cake business?

The average startup cost to open a bakery is between $10,000 and $50,000. This is lower than the average cost of opening a restaurant, largely due to the reduced need for employees, seating, and inventory for most bakery businesses.

How do I legally have a bake sale UK?

Legal information

If you wanted to hold a bake sale on a high street, you would need to make sure you have your local council's permission by contacting them.

Can I run a food business from home with pets?

You need to ensure that domestic use of the kitchen ie by children, pets, or other people, is separate from business use. Also, you will need to make sure other domestic activities (such as laundry) do not compromise food safety. Although this can be awkward, it is essential for good food hygiene.

How to open a cake shop?

How much is a food license UK?

In terms of the standard cost, it's challenging to determine the exact amount because the license cost varies across councils and the type of food business. However, to give you a sense of perspective, it might cost anywhere between £100 to £200 for a standard food premises license.

Do I need a food hygiene certificate for home baking?

Do I need a food hygiene certificate if I intend to bake from home? The answer is YES. The Food Hygiene Regulations 2006 and the Food Safety Act 1990, clearly state that anyone who handles or is associated with food made for commercial consumption has a legal responsibility to safeguard that food.

Can you post homemade cakes in the UK?

As long as you're using adequate refrigeration methods, padding and packaging, you're able to send a variety of foodstuffs around the UK.

Can I sell cakes on a stall?

Your stall at the market may be inspected by environmental health and trading standards officers. Normally, producing and selling items such as cakes and jams has few risks and most people safely produce these products at home.

Why homemade cakes are expensive?

A home baker does not just bake one size of cake, they bake many so they need multiple pans. There are hundreds of decorating tools including tons of icing tips of all different sizes and shapes, piping bags, icing spatulas, storage containers, knifes, tons of flower making tools, rolling pins etc.

How much profit should you make on a cake?

Everyone's profit margins will look different, but bakers generally add anywhere between ten to twenty per cent on top. As you grow, these margins can fluctuate but should gradually increase as processes become more efficient.