Starting a Bakery?
I'd like to start my own cupcake business but Initially I will be doing it from home as a hobby. I intend to make some flyers etc and go to local fetes and markets etc. If I am to do this do i need to be registered as a business? Also I presume I need to get Public Liability insurance, do I need my local EOH to inspect my kitchen? I am just wandering at what point it is a hobby and at what point it becomes a business?
Very grateful for Any tips/info
Thanks very much for your questions about starting a bakery.
The ideal thing about selling cupcakes is that it can easily be started from home. You can start getting orders and making cupcakes without having any huge financial outlays. You can decide if it is suitable for you whilst you are already making some money.
Selling at local community events such as fetes and markets is the perfect way to begin. Positive word-of-mouth from satisfied customers can see your business grown very quickly. Fetes, markets,car boot sales, flyers at local shopping malls and handing out some free samples should see you getting orders promptly as long as your product is fresh, tasty and visually appealing.
First up you need to consider packaging, pricing and product range. Although you will have low overheads if working from home, you will need to factor in costs such as electricity, phone etc when finalizing your costs. You need to ensure that your pricing is in line with other bakeries in your area.
Different states and countries have different rules with regards whether you need to be a registered business. If you are baking to see if you enjoy running a business from home, my non-legal opinion would be that you give yourself a couple of months of baking before taking any further steps. If you already see yourself baking as a career, I would encourage you to consider registering a business name from the start. You would hate to trade as Kate's Cakes for a couple of months only to find that the name has already been taken by someone else and you need to find a new business name.
Public Liability insurance is another area that is governed by state laws. It would definitely be wise to make inquiries with your local authority.
Good luck with your baking and I hope it works out well for you.