How to Create a Home Bakery Business Plan (Template Included!)

How to Create a Home Bakery Business Plan (Template Included!)

How to Create a Home Bakery Business Plan

I’m beyond excited that you’ve decided to take action to read this post because your life could be starting on a NEW path from here on out…

Deciding to create your Home Bakery Business Plan means that you are actively responding to your dream. Today your dream has officially started to become a reality.

Acknowledging that you are a baker at heart is extremely difficult in our corporate world. It’s frowned upon to pursue a career that’s RICH in CREATIVITY and IMAGINATION.

So I just want to give you a room full of applause for being brave enough to start accepting who you were made to be.

We are Home Bakers and the world needs us.

The world needs the comfort, joy and hope that pure home baking brings.

Want to sell your home baked goods, but have no idea where to START?? This Home Bakery Business Plan is the perfect tool to help you take your first steps! Click through to get this free template now >> #homebaking #homebakery #bakingbusiness #athomebakery #homebusiness


And that’s why I’ve made this post and FREE Workbook to help you create your own Home Bakery Business Plan!

I want to give you the jump start you need to start your Home Bakery.

Creating your business plan will give you a lot of insight into yourself, your ideal clients, what you want to bake and why you want to do it.

Most importantly it will help you figure out where you want to go

Because “If you don’t know where you’re going, any road will take you there.”

By outlining where you want your business to go, you have a much greater chance at success because you will always be aware of where you are heading.

Your free Home Bakery Business Plan workbook is waiting for you in my free Resource Library. Follow this blue link to access the library and then download & print out your workbook 👉 Access your free workbook here!

Awesome! Let’s get stared!



STEP #1: Your Executive Summary

It might sound super intimidating to create an “executive summary”, but don’t worry 🙂 An executive summary is super easy to create through answering a few questions. It’s basically just about WHAT you do and WHY you do it…


You might not be able to answer all of the questions below yet, BUT you can share your research and all the steps you’re taking to ensure your business’s success.


What is the purpose of your Home Bakery? What value do you add to your city/town? Why did you start your Home Bakery Business?


What is the purpose of your Home Bakery? What value do you add to your city/town? Why did you start your Home Bakery Business?


Write down a short summary of the products & services your Home Bakery will offer in order to make your business profitable.


Time to dream, my friend! What are your goals for your Home Bakery?

What do you want your business to look like 1 year from now, 2 years from now and 5 years from now?


STEP #2: Your Home Bakery Business Description

Now we are going to dive into your business culture & brand which is something that EVERY business is either working on or has figured out.


Why should someone buy from YOUR Home Bakery above others? What makes your business different?


Every business needs clients in order to survive and thrive! So it’s super important to define WHO your business’s ideal clients are:

How old are they?
What do they do for a living?
What do they care about most?
Why have they come to your baking business?
How can you help them?
What are their goals & aspirations?
What are their hobbies?
Which things make them happy?


Another way to think of “culture & brand” is simply to see it as your business’s personality & looks; it’s the first impression that clients get from your Home Bakery Business…

When people interact with your Home Bakery, what do you want them to feel?
How would you describe your Home Bakery’s Personality?
What purpose does your Home Bakery serve?


Organizational Structure simply refers to the legal definition of your business. If you are the only person working in your Home Bakery – which is pretty much always the case – then you are automatically defined as a “sole proprietor“.

Even if there’s one other person in your business who cleans for you or helps you out with deliveries or admin, etc. you are still a sole proprietor.

You’ll include this organizational structure definition when submitting your tax information each year.

Related: Home Bakery Certificates, Licenses and Insurance

If you decide to expand your Home Bakery in the future, you can do the necessary research to figure out whether you should register your business as a Partnership, CC, LLC, etc.

The motivation for changing your business to one of these other organizational structures is for financial reasons. If your business should go bankrupt while you are a sole proprietor, then YOU are by definition bankrupt as well.

But if you have an LLC, CC, etc. then only your business will be bankrupt and not YOU as a person.


This may sound like super scary stuff, but you don’t need to worry AT ALL, okay? Home Bakeries typically do not shuffle around tens of thousands of dollars each day so our risk is SIGNIFICANTLY lower.

We also typically do not buy like 5 company cars and employ 20 people and stuff like that.

Our Home Bakeries are small and safe 🙂

You want to start a Home Baking Business! :D But, what now? HOW do you actually start? This free Home Bakery Business Plan Template is the perfect step towards making your home baking dreams a reality. Get direction and clarity with these step-by-step instructions! #homebakery #homebaking #baking #bakingbusiness


STEP #3: Competitor Analysis

Before launching your Home Bakery business, I encourage you to THOROUGHLY research your largest competitors (popular bakeries with staff) and other Home Bakeries in your city, town and suburb.

Doing this is important because it will enable you to make more informed decisions and chart your own, unique course moving forward that serves a REAL need in your community and beyond.

Be mindful when you’re researching & analyzing your competitors though…

It’s SO EASY to be swooped up in a wave of comparison when you look at other Bakeries; their high skill level, beautiful website & branding, EPIC social media…

Guard your heart and analyze with your HEAD. Be HAPPY for them because they’ve worked super hard to get to where they are.


They may be your competitors, but they are NOT your enemies.


See these businesses as inspiration for where YOU could be in a few months! It’s 100% possible!! By completing this home bakery business plan you’re taking a GIANT LEAP towards your own success!

Related: 5 Mindsets Shifts of Successful Home Bakery Owners

Also, I know all too well how tempting it is to just copy their cakes, their designs, their website design etc., but doing this will ONLY DAMAGE YOUR BUSINESS!!

They became successful by doing THEIR own thing and so will you if you do YOUR own thing.


Now, when doing your competitor analysis, you’ll want to take the following steps:


Now you’re going to list of all of your competitors. Which other Bakeries bake goods that are similar to yours (or similar to what you want to bake in the future)?

Write down the Bakery’s name with links to their website & social media:

The Free Home Bakery Business Plan Workbook has very handy spaces for you to easily fill in 👉 Access your free workbook here!

If you’re brand new to the Home Bakery scene, then you may not know who your competitors are.

Here are a few ways to find them:

  • Search on Google: This is the easiest way to find your competitors. Search phrases like “delicious cake [your town/city]”. You can even get more specific by searching for “home bakery [your suburb]” which will give you results for Home Bakeries closest to you.I encourage you to click through to look at all result pages from 1 – 4 to get a more thorough scope (and because Home Bakeries mostly not listed first).
  • Search on Social Media: Social media – especially Instagram – is THE place to be for businesses today. Bakeries that are worthy competitors will have social media accounts. Search hashtags in Instagram like #[your city]cakes or #[your city]food. Or simply search for “Home Bakery [your city]”.



Cool, now that we know who your main competitors are we need to find out what their angle is for reaching their ideal clients – because you can learn from them and also readjust your own strategy accordingly.

What are they promoting? (Their products, services, lifestyles, feelings…)

What strategies do your competitors have in common? (Like Instagram lives, Facebook lives, certain types of promotions or giveaways…)

Which things set each competitor apart from the others on your list? (What do they do differently than all the rest?)

What goals do your competitors have? (I know you’re not a mind reader, but what assumptions can you make from analyzing their business? Sometimes Bakeries will even share their goals on their about pages on their websites…)


Check out the prices of all of your competitors for each different type of bake they sell. This will give you a better idea of what your future clients will be comfortable paying for baked goods.


Now that you’ve analysed each of your competitor’s websites, social media, products & services, you should have a pretty good idea of:

who they are,
what they are doing,
why they are doing it,
who they are doing it for and
where they are going with their business…

Let’s dig a little deeper. Use the next section on the home bakery business plan workbook to make a list of some of their strengths and weaknesses.

What are they super good at and what can they improve on or change completely?

Want to sell your home baked goods, but have no idea where to START?? This Home Bakery Business Plan is the perfect tool to help you take your first steps! Click through to get this free template now >> #homebaking #homebakery #bakingbusiness #athomebakery #homebusiness


STEP #4: Audience & Market Research

Back in STEP #2 of your home bakery business plan we identified and described your Home Bakery’s ideal client. Go ahead and look back to refresh your memory because now we’re going to dig deeper…


Surveys are hands-down the best way to gather priceless insights into the minds and needs of the people you want to serve – especially because surveys are anonymous.

People tend to share their TRUE desires and thoughts a lot easier when they have the security of anonymity.

Create your own FREE survey on SurveyMonkey or Typeform and then share it with your audience. I recommend sharing it with your email contacts, your social media, local family & friends.

You don’t want your survey to be too long – because then people will be too lazy to answer the questions! Trust me… Keep it to 3 questions 😉

What are the best 3 questions you can ask your audience to understand their needs & desires better?



In Step #2 we covered your brand’s personality and in Step 3 we defined the brand personality of your Competitors. With this information in mind, here are a few questions for you…

How can YOU, as a unique human being & baker, help your audience?

What makes your Home Bakery different from all other Bakeries (big & small)?

In what ways can your Home Bakery’s unique qualities benefit your ideal client that’s different from all the other Bakeries in your town/city & suburb?


STEP #5: Your Home Bakery’s Products & Services

And now it’s time for the BEST part – your baked goods & services! Yay! 😄

These are the 2 things that will bring profit to your Home Bakery, so it’s super important to put thought, heart and proper planning into this…


Which products do your ideal clients need? Refer back to the answers from your survey to get good ideas.

HOWEVER, I do believe that people are aware of what they want, but they aren’t necessarily always aware of what they NEED. So trust your own talents and passion on this as well…


Defining what you DON’T bake is just as important as defining what you DO bake. Which products will NOT be on your menu and why?

I’ve also got an amazing free guide for you in my Home Bakery Resource Library to help you find the perfect niche for your business. Join the library to get the free guide on finding your niche.


Which services do your ideal clients need? Refer back to the answers from your survey to get good ideas.

Will you offer delivery? Are you considering to offer customization? Will you offer on-site catering or set-ups? Will you offer rental services for cake stands etc.? Get specific here.


Defining which services you DON’T offer is just as important as defining which services you DO offer. Which services will you not offer and why?


Refer back to your competitor research: How are your products & services different from theirs? Is there anything you could add that would make your menu & services feel even more valuable than theirs?

This sure is a LOT of information to keep track of! You can easily have it all on hand by downloading your free Home Bakery Business Plan Workbook 👉 Access your free workbook here!


STEP #6: Your Home Bakery’s Sales & Marketing Strategy

 Wow! Look how far you’ve come already – I’m so proud of you for putting in all this hard work to create your Home Bakery’s Business Plan…

It’s the first and biggest step you can take to start turning your Home Bakery dreams into a reality! 😄

The last step in your home bakery business plan is working out your sales & marketing strategy. Without a strategy there’s nothing you can do besides “waiting and hoping” your business will grow. A strategy makes it all REAL! Let’s dive in!



Take some time to consider which platforms and methods you want to use to market your business and baked goods…

Do you want to use a Facebook group, page or ads? Are there some local Food Markets you’d like to trade at? Do you have some contacts and connections who love your baked goods you can ask to “spread the word” via email or with a flyer?

RELATED: The 4 Essentials of Home Bakery Marketing

Once you’ve decided on some methods, research them online for better results.



It’s important to set a day and time aside for yourself to spend on Marketing – otherwise life will find a way of soaking up all of your time! When will it be?

Related: How to Plan your Home Bakery’s Work Schedule



If you haven’t started your Home Bakery yet, it will help to create a “launch” strategy for your business. How will your business officially come into existence?

What are some things you can do to launch your Home Bakery with a bang and get people excited about what you bake?



You’ve made it to the last question! Congrats! This last section is about coming up with strategies to grow your business.

This doesn’t necessarily mean employing staff and moving to a larger facility (or opening a retail bakery) – unless that’s what you desire.  This last section pertains more to how you will grow your profits and client base.


Will you outsource certain tasks like cleaning, branding, photography, deliveries, social media management, website building, etc.?

Will you expand your menu & services?

How will you look after your clients to keep them coming back?

Think about things that you can do to keep your Home Bakery Business growing and thriving.


And that concludes your Home Bakery Business Plan my friend! I’m so proud of you for taking action and taking this first step towards starting your baking business 😄

Now you might be wondering, what happens next?

The perfect next step for you is to check out my Ultimate Guide to Starting a Part-Time or Full-Time Home Bakery.

Chat soon


Got a question? Something to add? Let’s chat in the comments section down below! (I respond to every single comment)

6 Steps to Pricing your Home Baking with Confidence

6 Steps to Pricing your Home Baking with Confidence

6 Steps to Pricing your Home Baking with Confidence

Pricing your home baking can be (and should be) simple.

But how do you know if you’re doing it right?
How do you know if you’re undercharging or overcharging?
What if you charge too much and no one orders?
What if you charge too little and do yourself in? 

I understand completely how you feel right now…. When I started my home bakery, I also struggled with pricing and customers took advantage of that all the time! I don’t want that for you.

So, this post is here to make pricing quick & simple for you.

When you price the RIGHT way, you’ll earn more income from your baking and you’ll be able to make home baking your career.

This post will clear up home bakery pricing for you once and for all!

And the biggest help I can offer you is my Baked Goods Pricing Calculator that does all the complicated math FOR you.

Yup, I’m serious.

This is no joke – you can get my Baked Goods Pricing Calculator for FREE. You can download it in the Home Bakery Resource Library >> Join the Library HERE.

How do you price home baking? What if you charge too little for your home baking and don't make enough income? What if your home baking's prices are too high and no customers want to buy from you? In this post you'll learn how to do your baked goods pricing the RIGHT way, so you can make more profit and even turn home baking into your career! #homebakery #bakerypricing #bakingbusiness #cakebusiness

But before we dive into the practical side of pricing, let’s quickly talk about the emotional side of pricing.

Because if you don’t understand the emotional side of home bakery pricing, you’ll always feel too guilty or awkward to charge your customers full price.

Let’s lay the foundation right so that you NEVER have to struggle or feel awkward when you’re pricing your baked goods, sound good??


1. Understand WHY Home Bakers Feel Awkward & Guilty with Pricing

If you consider the typical prices of baked goods, they’re not exactly “expensive” compared to all the other things people buy for enjoyment…

Every day people spend thousands of dollars around the world on restaurant meals, watching movies, weekend getaways, etc.!

People easily and willingly PAY GOOD MONEY for products that make their lives better. Why should it be any different with homemade products – like home baking?

Home Baking is SUPER labour intensive, yet we feel too awkward & guilty to charge what our bakes are TRULY WORTH.

I am convinced that the reason why cake pricing remains an issue, is because we are confronted with adding a VALUE TAB to what we do… AND a value tab on what we feel WE are worth.

A lack of confidence is the REAL reason why we overwork ourselves, STRUGGLE WITH PRICING, end up bowing to every whim of demanding clients and get stuck baking things we don’t even enjoy making for cheaper prices!

There’s this constant analysis going on in our minds “If only I had 1000 likes on my Facebook page, THEN I would know that I’m good enough to charge full price for my bakes!

And with Reality TV Shows about baking it’s the EXACT same story. All home bakers have these thoughts crossing their minds on a regular basis:

“If I win this competition, I will finally know that I’m good enough.” “If I win this competition, it will prove to my father that I’m talented enough to make a living from dessert making.”

Here’s the secret: “If you are not enough WITHOUT it, you will never be enough WITH it.


The hard truth is that the “stamp of approval” you feel you need from customers to classify you as a LEGIT Baker, won’t be enough to convince you that you’re valuable.

What YOU believe about your value is what matters here.

So, who do you truly BELIEVE you are?
And is that person valuable?
What makes that person valuable?

The price tabs you put on your work will always reflect how valuable you believe you are.

I had to get to a point where I stopped looking to my clients for validation that I’m okay.

I had to fully embrace that MY value comes from the Lord Jesus Christ (for you it can be your own spiritual beliefs).

RELATED: How to Overcome Self-Doubt in Your Home Bakery

In the past I undercharged for my baking because I felt a need to OVER-please my customers so that the odds of them liking me are higher… I was deceived in thinking that the more customers liked & praised me, the more valuable I’d feel.

But if you’re not enough without that praise of people, you’ll never be enough with it.

“The reason we ‘people please’ is not because we care about other people. It’s because we want to control what other people think of us.” – Courtney Chaal

When YOU stop looking to people for your validation and settle it in your heart that YOU ARE VALUABLE, it becomes so much easier to acknowledge that your baked goods are valuable too!

Now let’s Cover the Home Baking Pricing ESSENTIALS…


2. The VALUE of Home Baked Goods

You may have believed until now that Home Baking is in some way “inferior” to the baking of storefront bakeries.

But you actually have it backwards!

It’s important to realize that you’re offering a VERY UNIQUE and VALUABLE service here. You are baking SPECIALLY for ONE client with all the LOVE and QUALITY they would get from their OWN MOTHER’S baking.

They’ll also get their baked goods FRESH – not 1 week old as in the grocery store and large, mainstream bakeries.

So, on every level, small batch home baking is of HIGHER VALUE than mass-produced commercial baking.

You offer them the sentimental, high quality benefits of homemade, HAND MADE baked goods without them needing to spend ANY time or effort on it.

Home Baking has an incredibly high QUALITY, NOVELTY and CONVENIENCE value. That’s worth A LOT my friend.


3. Cheap Prices Attract Cheap Clients

If you’ve been charging too little for your baked goods, you’ve probably run into some pretty darn demanding, unrealistic, bartering sort of clients. Am I right?

Chances are, that’s what drove you to start looking for cake pricing answers! The type of clients you have are just becoming unbearable and you’re constantly second guessing yourself as a baker and business owner.

So here’s the deal. Cheap prices will attract budget clients who enjoy nothing more than saving money wherever they can.

They unfortunately are the type of clients who take advantage of you. They’ll get you baking things you hate, on short notice for less money.

The way you get ideal, committed clients with better character is by CHARGING MORE. This separates the cheapskates from the true cake appreciators.


Pricing - ugh! How do you know if you're charging too much or too little? What if you charger too much and no one orders? Or what if you charge too little and don't make enough profit to survive? In this post you'll get everything you need to settle your home baking pricing issues - forever! Get a free pricing calculator (pricing chart) download to do all the fancy math for you in your Home Bakery Business! Click through to get started :D #homebakery #cakepricing #cakebusiness #bakingbusiness


4. Cheap prices “for the love”?

When I started my Home Bakery I kept all my bakes SUPER cheap because I wanted them to be affordable for everyone.

I was buying the best ingredients, investing hours of my time and barely turning ANY profit.

There are so many bakers on Instagram that say: “You should do it for love, not for money.”

But this is FLAWED LOGIC. Let me explain why.

Let’s look at doctors for example. They fill an amazing role in society and bless so many people with their gifts and talents. Keeping people alive is their heart’s desire.

Medicine is a SUPER demanding career and there’s no doubt that doctors choose to STAY in this career for love and not money… The convenience & excitement of money wears off pretty fast when you need to work 36 hour shifts – repeatedly.

Yet we GLADLY pay them generous sums of money SO THAT THEY CAN KEEP ON HELPING US.

Charging DECENT prices for your bakes (charging what they are worth) will enable you TO KEEP ON BAKING DELICIOUS BAKES FOR PEOPLE.

If they don’t pay you WELL, you’ll need to end your Home Bakery and get a desk job somewhere… It’s pretty hard to “love people with your baking” then, isn’t it??


On this point we also need to talk about pricing your bakes for close friends & family.

Baking for family and friends is a tough one; because we love them and feel guilty to accept and ask for payment.

But, here’s another perspective: Your friends and family love you and want you to succeed – that is why they are ordering from you.

I decided a while ago to have a standard discount for all my close friends and family. The discount is 10% off my direct client prices. To offer them a discount will already seem very generous and courteous to them.

If your friend sells you a car (for example) you will be ELATED if they give you a 10% discount, right?

Set up a fixed discount rule for friends & family that you are comfortable with (I recommend a 10% discount MAX), and stick to it no matter what.

Making a rule like this for yourself and your family/friends eliminates the need to make an awkward decision every time a family member or friend orders something.


5. Transition From a Freelancer to a BOSS

I recently watched a video by online entrepreneur Courtney Chaal on this topic. All home bakers start out as freelancers meaning that someone asks for a certain bake for a certain day and we proceed to make it for them.

They then start manipulating you by saying their budget is so tight this month because of this and that, so you end up giving them a discount…

The client calls the shots. They determine what we make, when we make it and they influence what they pay for it. This means that we base our business strategy and pricing by just REACTING to our customers.

You might still be running your Home Bakery this way and be thinking “well, what other way is there??”

There is another way my friend and that is to become a BOSS and start running your business like a boss.

A boss decides what services and products they do and do not offer. They decide what the prices are. They call the shots and determine the course of their business.

A freelancer is just reacting to clients and their business will end up going wherever their clients end up taking them – which could be in circles or downward, and not forward.

There is a COLOSSAL difference between a freelancer and a boss!!

RELATED: How to Create a Home Bakery Business Plan (Includes free workbook!)

Feel too guilty or awkward to charge full price for your home baking? Pricing has always been an issue for Home Bakers, but it's not because we're bad at maths (obvs!). In this post you'll get everything you need to settle pricing issues - forever! Take the 6 steps with deeper insights on being CONFIDENT when you price your cakes instead of awkward. Get a free pricing calculator download to do all the fancy math for you in your Home Bakery Business! Click through to get started. #homebakery #homebaking #cakebusiness #bakingbusiness


ALL Home Bakers do start out at freelancers, but if you desire success for your Baking Business, you’ll need to make the mindset shift into the boss world – sooner rather than later.

Your customers will no longer be deciding what you bake and when you bake it for. They will no longer be influencing your prices.

YOU’LL now be the one deciding how your business is going to operate on every level – and I’m SO EXCITED FOR YOU!!


6. Download your FREE Pricing Calculator

You’ve successfully completed this training on Pricing your Home Baking and now I invite you to sign up to my blog and get access to my FREE Pricing Calculator!

It’s the BEST tool for any Home Bakery Business! You simply type in:

>> Your rate per hour for your labour.
>> The time you spend on the bake from start to finish.
>> Your ingredient costs (including electricity/gas costs, decoration costs, packaging costs, etc. as well here).
>> Your profit percentage.

And then it calculates the recommended selling price FOR you! Tada!


1. Sign up for the Free Resource Library to get the Free Pricing Calculator.

2. When you’ve signed up for the Library check your email (spam & promo folders too!) for the Resource Library’s link and password 😉

3. Make sure you actually DOWNLOAD the pricing calculator. Don’t just open it online – in which case you’ll be able to enter numbers, but it won’t calculate anything. In the Library, click the pink download button – this will open the calculator online. Then click the download button in the top right corner. Open the downloaded pricing calculator on your computer and start typing in your info.

4. To use the Pricing Calculator you need to at least have a PDF reader on your computer like Adobe Acrobat Reader – which is free to download. Click here to download it for free. Follow all the prompts and install it.

5. Don’t forget to add your electricity/gas/propane AND packaging costs to your ingredient costs! If you’re struggling to figure out how much to charge for this, click here to learn how.

6. After calculating a product’s selling price, close the Pricing Calculator and don’t save it. Then open it again and start calculating the prices of your next product. This helps the built-in calculation functions not to get confused.

7. If you want to calculate delivery prices, use the calculator in the same way. Open it on Adobe. Add your fuel costs into the ingredient costs section. Add your wage per hour. Add in the time you’ll be spending driving there AND back. Add 30% profit. And then you’ll get the final delivery price your client needs to pay.

This Pricing Calculator works great on computers. If you want to use it on your cell phone, you’ll need to download the Adobe Acrobat Reader App from the App store.

Here’s a video to SHOW you how to use the Pricing Calculator step-by-step 👇

 “What if I feel overwhelmed & anxious about managing my business’s finances?”

There’s no shame in that. I struggled with the same thing for YEARS! Pricing your bakes, doing your bookkeeping and taxes… This is where a business gets REAL. And it can be very overwhelming if you’re not used to crunching the numbers!


🧁 Be honest: Do you often undercharge for your baking because you’re afraid you’ll lose customers if you charge more?

🧁 Have you been avoiding the huge pile of bookkeeping you have to do, but just don’t know where to even start?

🧁 Do you know how much profit (exactly) your business is actually making? Or do you just kind of hope (and worry in the back of your mind) that it’s making a profit?

All of these are symptoms of not doing your finances correctly.

Managing your finances shouldn’t be such an overwhelming, complicated mission! You could just use all my financial templates and handle your finances in 10 minutes per week.

If you raised your hand to any of these symptoms above, then the “Confident Pricing & Profit Kit” is the perfect fit for you! It’s an online course that helps home bakers to do their pricing & bookkeeping the RIGHT way so they can earn more income without feeling guilty for charging their customers full price.

👉 Click here to check out the Confident Pricing & Profit Kit

I trust that this post has FINALLY given you everything you needed to settle the issues of Home Bakery Pricing!

If you have any further questions, share them with me in the comments below and I’ll get back to you as soon as I can! 😉

Chat soon


Got a question? Something to add? Let’s chat in the comments section down below! (I respond to every single comment)

Home Bakery Business Certificates, Licenses, and Insurance

Home Bakery Business Certificates, Licenses, and Insurance

Home Bakery Certificates, Licenses and Insurance

Please note that this process will vary in each country AND in each state/province around the world.

I’ve gone over many websites and spoken to many home bakers in countries across the world. It seems that the process is more or less in the same in most countries, but you’ll still need to do your own research.

This post will help you to get a great overview of the process, but you’ll need to take responsibility to double check what you need to do in your own country. The costs of this process is also different in each country and state/province.

This post is here to ease your mind and show you that the process of obtaining your business license and health department certificates is actually not that complex or stressful!


Why You Need a Home Bakery Certificate and License

If you live in the USA, it’s important to note that every state has their own regulations about Home Bakery Businesses! Here’s a super helpful and thorough document that spells out the laws of each state in the USA >> click here to download it.

If you live in the USA and you’ve discovered that Home Bakeries are illegal in your state, city, or town, don’t stress! The laws are being changed all the time. Here’s my interview with Katie Sacoman about how she changed the Cottage Food Laws in Albequerque, New Mexico! 

In South Africa (where I live) they won’t really hunt you down and fine you if you do not have the correct documentation – we are a third-world country after all. In other countries, they might fine you though.

The main reason for getting a home bakery business license and certificate is because it is ETHICAL and LEGAL. I would not want to bake goods for the public in my kitchen if I knew something was not up to scratch. Would you?

The municipal standards for health and safety are there to protect us and our clients.

Most food markets will also require you to provide the correct documentation for your Home Bakery before you are permitted to trade. If you don’t have it and an inspector decides to pay a visit to the food market, both you and the food market owners could get into a lot of trouble – a severe fine or even being shut down.

You want to start a baking business from home - that's AWESOME! And YES, you need a specific license from your local authorities before you can bake and sell LEGALLY from your home kitchen. BUT don't let that put you off! It's actually really simple to get your Home Bakery business license (or certificate) and other official documents. Let me guide you through the entire process, step-by-step, and give you some extra tips to make this as easy as possible for you. This post covers insurance too!


Certificate & License Required for Home Bakery

Home Bakeries need to apply for 2 different documents.

A Certificate of Acceptability (Name Might Vary) from the Health Department:

This certificate refers to the condition of your food preparation facilities, in other words your home’s kitchen. An environmental health and safety officer will visit your home to inspect your kitchen and bathroom facilities.

They typically look out for the following criteria:

  1. They’ll naturally expect a very clean kitchen, so clean your entire kitchen, from head to toe. Remember to clean inside your fridge and cupboards as well.
  2. Kitchen counter tops are non – porous. This means that they do not absorb any substances during food preparation. For this reason, your countertops should always be treated to be waterproof. They don’t have to be stainless steel, they should just be waterproof. If they are not waterproof, they will absorb food and become infested with bacteria. Not cool.
  3. Adequate washing facilities. You don’t need a massive dishwasher or 3 sinks. They just check that you have running hot and cold water and at least 1 basin – preferably 2 though.
  4. Bathroom facilities– quite obvious I guess. It is important that you have a bathroom for staff to use away from the kitchen.
  5. Adequate storage and packaging. You should have airtight containers to store baked goods in overnight and also for transportation to restaurants and food markets. When it comes to packaging, the standard cake boxes from a packaging store are totally fine.
  6. Adequate refrigeration. Sometimes they’ll check to see how cold your fridge is. It should be 4°C/40°F or lower.
  7. Hairnets and Aprons– also quite obvious. Also have plastic, non-latex gloves for handling your bakes when packaging them.


Some countries require you to label and weigh all your baked goods. Don’t let this intimidate you. Print out stickers for all your products. You can create pretty designs for free on Canva.

You don’t need to buy those super expensive electronic food scales to weigh your bakes. Just use an affordable digital kitchen scale. It’s the best $15 – $20 you’ll ever spend!

If you have large cakes you need to weigh that don’t fit on the scale, just place a small chopping board on top of the scale first and then you can add the cake on top of that. This way it will fit onto the scale and you’ll be able to weigh it accurately.

home bakery licenses


Hawking in Meals Business License:

This license refers to producing goods on one premises and transporting them to a different premises to be sold there. This is typically what Home Bakeries do, since we don’t have a restaurant or café at our own homes.

Whether you supply goods to restaurants, cafes or delis or sell your goods at food markets, this is a license you really need to do so LEGALLY.

The same Environmental Health and Safety Officer will ask to see your food transportation containers. They should be airtight and watertight with lids.

An Inspector may also visit you at any food market you do. There are also some additional criteria you will have to meet if you plan to prepare bakes at the food market itself and not at home. You can download all the additional guidelines for informal food trading.

RELATED: How to Create a Home Bakery Business Plan

Applying for Home Bakery Certificate and License

  1. Use Google to find your city’s main Municipal Office. Phone them and ask to speak to someone in the Environmental Health and Safety Department. Explain the nature of your business and ask them what licenses and certificates you will need to apply for.
  2. Decide which day you want to go to your municipal offices. Be sure to double check their office hours – in South Africa they are only open for like 5 hours a day! Take your Identification Document along and a black pen.
  3. When you arrive at the Municipality Building, ask staff to direct you to the Environmental Health and Safety Department.
  4. Wait in line – yay. When it’s your turn, explain the nature of your business clearly so that they can give you the correct application forms.
  5. Complete the forms and pay the fee. In some countries & states it’s not too expensive, but in others it will cost more. But think of this in terms of investment. Getting this license will ENABLE you to make money from your baking. Thus, the license will essentially pay for itself and so much more!
  6. The Environmental Health and Safety Department will the contact your closest Environmental Health and Safety Office. They will then contact you somewhere in the next 2 weeks to set up an appointment for inspection.
  7. Make sure your home is nice and clean and all your pets are outside during the inspection. Be friendly and show the official your kitchen and bathroom facilities. Be available so that you can answer any questions they may have Also have your hairnet and apron on standby so that you can show them to the official. Once they are satisfied they will leave.
  8. The environmental health and safety office issues your Home Bakery certificate and license. The Municipality will phone you to come and collect it, but they also offer to post it to you if you live far out of town. The whole process takes about 2 – 4 weeks from start to finish.

Note that the Home Bakery Certificate and License are linked to your specific baking premises (your home). If you move house you will need to apply for these documents all over again.

I scanned my Home Bakery Certificate and License the moment I receive them. It’s always handy to have them on file in case the physical copies get lost! Which tends to happen in our home… to MANY official documents… like our marriage certificate!

Home Bakery Businesses do need a few Certificates, Licenses and Insurance to operate legally. But they are all very easy to get and aren't expensive at all! Here's all the info you need, with step by step instructions, to get your required Home Bakery Business documents. #homebakery #bakingbusiness #cakebusiness #homebaking


Home Bakery Business Registration

It is not compulsory to register your Home Bakery’s name if you are a sole proprietor. Sole proprietor simply means that you (1 person) are the exclusive owner of your business. If you bake from home you are a sole proprietor by default until you decide to register your business as a CC, LLC, etc.

Some countries and states will require you to register your business as an LLC or Pty (Ltd) before you are allowed to start selling your baking.

You’ll need to do some research to find out how things work in your country and province/state.


Home Bakery Insurance

This also varies greatly from county to country. I’m aware that folks in the USA sue people for almost anything if they have the power to do so. In South Africa we can’t really be bothered.

I don’t believe insurance is necessary for a Home Bakery – no matter what country you live in. If you are worried that someone may sue you because they had an allergic reaction to your bakes, then include a thorough disclaimer on your Home Bakery’s website or Facebook page.

You can check out my Home Bakery’s disclaimer. Just copy it and sub in your own Home Bakery’s Name and details where applicable.

Obviously you should have household insurance to protect your entire home against theft, fires or floods. All your home bakery equipment will automatically be included in that. One of the many perks of baking from home!

RELATED: How to Create a Home Bakery Business Plan


And that’s it my friend! Please let me know if you have any other questions by commenting below. I’ll be more than happy to help.

Chat soon

Aurelia 🙂

Got a question? Something to add? Let’s chat in the comments section down below! (I respond to every single comment)