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If you love to bake and have been complimented on your stunning creations, there are lots of things you can do to create a home bakery business legally! One of the biggest mistakes when opening a bakery is not being familiar with the laws surrounding the sale of homemade baked goods.
Fortunately, if you're wondering how to start a bakery from home, it's easy to get started with the knowledge of cottage food laws under your belt. Cottage food laws are laws that allow the sale of non-perishable, safe to eat foods at room temperature from your home!
This means you don't have to spend a fortune opening up a bakery through another space, such as a commercial kitchen, and don't have to worry about spending tons of money on licenses and fees. In fact, a small bakery business plan sample is easy to make so long as you have knowledge on the right laws that cover the sale of cottage food.
For starters, it's important to know that these types of laws vary by state and even by county or jurisdiction. Therefore, it's important to reach out to your local health department or check online for important updates and more information on cottage food laws. After you've determined your state allows the sales of baked goods, you can then begin the journey toward creating your home bakery business.
There are various baked goods you can sell at home, and these will vary according to the state you live in. However, most baked goods can be safely sold from home, including:
Don't get discouraged about cottage food laws in your state. Many of them are quite easy to follow, and due to updates, many of them are allowing more and more foods to be sold by home bakers, and more and more methods of selling to be used.
To start a home bakery business, you must first know the term behind home bakery meaning how to define a bakery at home. In most states, a home bakery is a kitchen that is located in your personal residential property and not a commercial kitchen. Even if you own a commercial kitchen, many states will not allow you to sell your cottage food items from that commercial kitchen without a permit.
Speaking of licenses, it's also important to know what licenses are needed to start a bakery. For the most part, this will vary by state. For instance, a home bakery license California offers will be determined by whether or not you plan on selling your goods direct to the public or to other retailers. For a home bakery business California, a cottage food license "Class A" will allow you to sell directly to consumers, while a "Class B" license will allow you to sell to retailers and restaurants. This is just one example of a home bakery permit. However, not all states need a permit, such as cottage food laws in Florida that don't require a permit to sell food from home Florida.
Finally, your home bakery business plan should also include information on budgeting and income requirements. It's important to note that many states have a cap on the maximum allowed sales of cottage food per year. For instance, in Texas, a home-based bakery business can only sell up to $50,000 a year. For those wondering how to start a bread bakery business or how to start a cake baking business from home, make sure to look up the annual cap your state has (if there is one), and include this information into your business plan.
Learning the cottage food laws in your state is perhaps the most important part of starting your bakery at home, and shouldn't be overlooked. Fortunately, once you're a pro at learning what permits you need, fees you need to pay, and allowable foods (i.e., non-perishable and non-meat), you're well on your way to establishing your business. Other things to include in your business plan include:
As mentioned earlier, if you plan on selling your food items from home, it isn't enough to simply make flyers and distribute them, or rely on word of mouth. You'll need to establish a home-based bakery website that will allow you to reach out to customers, fulfill orders, and be able to keep your business organized. Never underestimate the power of your online presence, as 48% of Americans say they do at least part of their grocery shopping online now.
If you're using an online bakery website that fulfills orders, or a simple bakery website that includes information about your company, either of these are excellent ways to market to customers online and truly grow your business.
In either case, there are certain things you must include on your website, such as:
The best bakery website design will include all of these elements, as well as an added element of your own business to it. For instance, you can opt for a modern bakery website, or choose a design that is retro-inspired.
In most states, it is possible to obtain a license to sell your cottage food and help start your business as soon as possible. Below are some home bakery license requirements per state.
In Georgia, a home bakery license Georgia offers is quite easy to obtain. You must submit an application, along with a food safety handlers certificate from the American National Standards institute, or ANSI. In addition, you don't need to submit any type of payment with your application. However, you do need a Food Sales Establishment License to sell wholesale.
A home bakery license Colorado offers is also easy to obtain. In Colorado, you do not need to register your business with any entity. However, you may choose to register your business with the Secretary of State, but this is optional. In addition, you must only sell allowable foods, which in Colorado is very limited and includes condiments, sauces, and other foods that would normally be allowed in other states.
To get a home bakery license, Indiana residents must also complete food handler's training, and they need to follow any ordinances set by their local health department. However, the restrictions seem to stop there, as Indiana is quite generous to their home artisans. For instance, home artisans don't need any inspections or a permit, and they can sell directly to customers anywhere in the state. This is quite different from other sellers, who require cottage food only be sold in farmers market stands.
We hope that this information has been useful in getting you started on your journey toward obtaining a cottage food license! Feel free to use your own baking business ideas, but here are some of the tips and tricks you can use to boost sales!
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