Some of the most influential food entrepreneurs started out selling food from home. Martha Stewart started a catering business in her kitchen in 1976 that eventually developed into a multi-million dollar business. Other famous names in the food industry got their start selling cookies from home, including Mrs. Fields and Paul Newman.
Over the past year, many people have tried to figure out how to adapt to spending more time at home. They found themselves craving comfort food as they were quarantined from friends and family. According to a poll in October of 2020, 26 percent of Americans are craving more baked goods. Of those surveyed, 28 percent are eating more baked goods than in previous years. Surprisingly, there are about 15 million home-based businesses in the United States. Combine cravings for comfort food with the high number of home-based businesses and it sounds like a recipe for success!
Maybe you have decided you would like to leap into a home-based business. Do your friends turn to you every time they need cookies for a special event? Do you find joy in creating delectable treats for your neighbors? Would making money from something you enjoy supplement your ordinary income? An important step is figuring out how to make money selling baked goods from home. It might sound easy to convert passion into a business, but owning a home-based business presents several challenges.
What resources will you need to learn how to sell cookies from home? You’ll have to decide how to price homemade cookies to sell. You’ll also have to research what the best-baked goods to sell from home are. Will your business offer both cookies and cakes? If so, you should know how to make money baking cakes from home. Finally, you’ll need to ascertain where to sell homemade cookies. In this article, we will explore what it takes to start selling cookies from home.
Many states have something called a cottage food law. These laws will specify how to sell cookies from home. These laws also include where to sell homemade cookies and the licenses required to sell food from your home kitchen.
A cottage food bill is usually enacted by a state legislature. Enforcement of the laws is left up to the local health departments or state departments of agriculture. While they sound complicated, cottage food laws are put in place to make it easier for home-based businesses to thrive.
Cottage food laws can limit the types of food that home-based business owners can sell. Cottage food laws may also limit the amount of money that can be made by a home-based business. It is important to note that cottage food law can vary by state. If you are interested in selling food from home, you should consult the local laws before launching your business.
You may be asking yourself one of the following things. “Do you need a license to sell baked goods from home?”, or “What license do I need to sell homemade cookies?” You’ll need to check the cottage food law in your state to find out. You may also be required to have a food handler’s permit. This permit requires a brief training course. There might be a small fee for the course and the permit.
There are a variety of baked goods that you can make from home. Your home baking business ideas might include cakes, cookies, cupcakes, brownies, pies, muffins, or even bread. If you are sold on a cookie business, you’ll probably be asking yourself: “How profitable is a cookie business?”
Businesses are profitable for a variety of reasons, one of which is the profit margin. The profit margin is essentially how many cents of profit are generated for each dollar of sale. For example, a cookie business with a 45% cookie business profit margin during a quarter had a net income of $0.45 for each dollar of sales generated.
The best way to start is with a cookie business plan. A business plan describes the business you intend to create in detail, defining objectives and mapping out the entire business. Most business plans include a:
The internet is your friend. You can try to find a free cookie business plan PDF online, or create your own using a local resource. Local resources include the small business administration in your area or even a successful cookie business owner.
Once you have an established business plan, secure space for your business. You’ll need to ensure that your baking space meets the kitchen requirements for a home baking business in your state. Some states require a separate kitchen, while other states don’t.
Many of these suggestions apply if you are trying to figure out how to start a bread business from home. If you are a kid baker, you’ll also want to know how to start a baking business as a kid. You might have to get your parents involved depending on the laws in your state.
One scroll through Instagram and you are likely to see bright, cheery pictures of baked goods. As a free platform, Instagram is a popular place to sell cookies from home. Nearly 77% of all small business owners use social media for sales, marketing, and customer service. Learn how to start a baking Instagram by looking at other businesses that utilize the platform. One wildly popular Australian bakery got its start on Instagram, Sweetcheeks Cookies and Cakes.
Learning how to sell cookies on Instagram is not much different from learning how to sell clothes on Instagram. When you think about using Instagram to market and sell cookies, think about your audience. You’ll want to target the type of people that are interested in your product. Learn how to market clothing on Instagram and you’ll be well on your way to selling cookies the same way. One of the first steps is to take quality photos.
You can learn how to sell cookies on Instagram and gain followers in different ways. Try giveaways, collaborating with other businesses, or promoting other businesses in exchange for a free press.
You can also learn how to sell on Instagram without a website. Use Instagram stories to announce locations from where you can pick up cookies. Set weekly delivery dates and agree to deliver cookies within a certain distance from your location.
Learn how to sell on Instagram using DMs (direct messages). In each post, give the reader a call to action like “DM for free delivery.” You will avoid the necessity of a website and be able to interact with each customer individually.
Don’t forget to take advantage of hashtags and engagement on your posts. Focus on answering or acknowledging each comment and try to get back to DMs (direct messages) you receive as quickly as possible. People thrive on connection. If you connect with them, they will share your Instagram cookies with friends!
Once you have set up your Instagram presence, make sure you are also learning how to sell cookies on Facebook. Both of these social media platforms are invaluable to a small business owner.
At this point, you might be ready to roll up your sleeves and bake that first batch of cookies to sell. However, you’ll want to make sure you know how to start selling baked goods from home. We’ve touched on cottage food laws and creating a business plan but there is more to consider. Whether you want to learn how to start selling cookies or how to start selling bread, read on for more advice.
When you think about how to sell baked goods online, you need to start by doing some research. Look at how other businesses sell and package their baked goods. This may give you good ideas about how to package cookies for sale.
Make sure you comply with local laws for home businesses. This will answer your question, “Can I sell cookies from home?” Get the required licenses and permits before you start selling cookies online. Write a business plan. Think through each step in advance and you may avoid pitfalls down the road. Think about your menu, will it affect how to sell cookies online?
Look at your budget. What are the costs associated with starting up the business? How much will it cost for you to make each cookie? You’ll want to set cookie prices so that you are selling cookies for profit.
Will you have a home-based bakery website or will you rely on social media to market your products? Either way, once you have an established customer base, you may want to learn how to sell cookies to stores. You can sell items to schools for baked sales or provide desserts to local restaurants. You can even set a goal of selling your cookies in a nationally recognized chain store. As part of this evolution in business, you’ll need to make sure you know how to package cookies for retail sale. There may be different requirements than a typical consumer sale.
If you follow all the proper steps, you’ll learn how to sell homemade cookies and make a small fortune in no time.
If you are not based in the United States, there are probably different laws that apply to selling baked goods from home. If you are selling baked goods from home in Ontario in 2020, check local laws. You’ll soon learn that the government added flexibility during the global pandemic, making it easier to have a home-based business.
Selling cakes from home in Australia or selling baked goods from home in the UK is different from the United States. In Australia, you’ll have to comply with the requirements of the Food Standard Code. Home kitchens are generally only suitable for low to medium-risk food activities like shelf-stable baked goods.
If you aren’t in a different country, you may still be asking, “Can I sell cookies from home in Texas?” The answer is yes if you comply with all state and local laws. Home-based food businesses have expanded exponentially in the past year. Take advantage of being at home by starting your own business selling cookies from home.
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