Business Advice

How to Start a Cake Making Business from Home

Are you planning on starting your own cake business? You may think it’s out of reach, but with the right planning and dedication, you could soon make cake making your new business venture.

We’ll run through everything you need to know, and how you can protect yourself and your new business through bespoke cake making insurance.

Why start a cake making business?

Making cakes is a regular hobby for many people up and down the country, and many are turning their hobby into their career.

Cake making has become a viable business for those who have a passion for baking and it has brought many bakers immense success over the years.

Can I set up a cake business from home?

Yes, you can set up your own cake making business at home and most cake makers do actually use their own kitchens as their place of work.

There are endless possibilities for cake making business, and they don’t solely have to be cakes. You could make and sell a variety of sweet and savoury goods, as long as you make it clear in your marketing what kind of home baking business you are in order to attract the right customers.

There are so many options out there for selling baked goods, so it’s important you find what you love to bake before you start selling.

If trading from home, you would need to let your household insurers know that you are doing this. Failure to do this may result in a household claim not being paid because business activities haven’t been declared.

What can I make for my home baking business?

The list is endless when it comes to choosing what to bake for your new business. A ‘cake making business’ isn’t necessarily just cakes – some choose to branch out into other areas.

Just a small selection of our personal favourites include:

  • Brownies and blondies
  • Cookies
  • Cakepops
  • Shortbread
  • Rocky Road
  • Cupcakes
  • Cheesecake
  • Fudge
  • Macaroons

You could even go savoury with pies, bread, pastries and so on.

How start a cake making business

Starting any business isn’t an easy process. It takes a lot of time, dedication and hard work to reach your dream. However, if you set yourself small attainable goals and stick to them, you’ll soon be on your way to success.

There are a few key first steps to take:

  • Establishing a brand
  • Market and competitor research
  • Deciding on your products to sell
  • Getting craft insurance policies in place
  • Sourcing ingredients and equipment

Our ultimate guide to starting a craft business is the perfect resource for those beginners who don’t know where to start when turning a hobby into a profitable business.

What are the legal requirements of a cake making business?

If you are just starting up a cake making business, you should ensure that you are fully insured before you start. The main reason you need insurance is so you are held financially liable if a customer faces an issue with your products.

Food safety standards are of huge importance, so having the appropriate insurance will support you should an accident happen.

Here at CraftCover, we can provide your cake making business with specific cake making, decorating and home baking insurance, perfect for small startups or even larger, more established businesses.

What’s included in home baking insurance?

Our cake making policy includes the two main types of insurance that your business will need:

Public liability insurance covers your business against compensation costs should any damage or injury occur to a member of the public due to your business activities. The costs of covering compensation could be extremely damaging to your business if you’re not covered.

Product liability insurance covers the products that you make, supply and sell. If a customer comes across an issue which is a direct result of your product and a claim is pursued, you could be held liable for paying the legal costs. With the correct insurance in place, you won’t have to worry about expensive legal costs.

Do I need a Food Hygiene Certificate for home baking?

Having a food hygiene certificate isn’t compulsory, however, it is strongly recommended by the Food Standards Agency (FSA).

EU law states that anyone working with food must have the appropriate training for their position. Although the EU doesn’t state what training must be undertaken, it’s widely recognised that food hygiene certificates are a good method of adhering to these standards.

What certification should I choose for my baking business?

There are three recognised food hygiene certificates which you can obtain:

Level 1 Food, Safety and Hygiene: This is a great introduction course for beginners into food safety. It includes cooking and baking at home, work experience in a food environment and self-development for those interested in food handling.

Level 2 Food, Safety and Hygiene: Level 2 is a certificate for a catering course which satisfies the food handler’s legal obligation to undertake appropriate food safety training.

The course is online, and can be taken by anyone who handles or prepares food, or is involved in the management team such as hotels, takeaways, bars, cafes, kitchens and so on.

Level 3 Food, Safety and Hygiene: The level 3 course is suitable for anyone involved in the management and/or supervision of food handlers within a food environment.

All food premises should ideally have at least one person trained to the level 3 standard, especially if they oversee staff.

If you are setting up a cake making business in your own home, you should ideally aim to obtain both Level 1 and Level 2 of the Food, Safety and Hygiene certificates.

Is a cake business profitable?

Yes, cake making businesses can be very profitable, especially if your products stand out against competitors or you offer unique services such as customisable options like shape, size and flavour.

Even if you don’t want to offer custom options, all you need is a few good recipes and some knowledge of what is in demand.

Where to sell homemade cakes

The most common and popular social media platforms to sell your products on are Instagram and Facebook.

Both platforms allow you to create business pages with the option to have customers direct message for orders, or by even providing a link in your bio to an order form which customers can fill in.

For in-person sales, you could go to local markets or fairs. We can also provide you with specific craft fair insurance, giving you all the cover you need whilst selling your products direct to the public.

How to promote a cake business

Again, social media is a great tool to use to promote your business. Instagram, Twitter and Facebook are all great ways to visually show off your creations as well as engaging with your audience.

Social media is a useful tool to interact with your audience too, by replying to comments, holding giveaways and even having interactive elements on stories.

You could also post in local community groups too, showcasing what services you provide. Just ensure the groups allow for this type of content before you start posting.

Baking insurance with CraftCover

Are you ready to start your cake making business?

Get in touch with our team today and get a quote for your new business venture – we’ll ensure that all of your business requirements are covered under our comprehensive craft policy.