So, you want to start a home-based cake bakery business but may not know where to start? Maybe you are thinking of selling some cakes and goodies for Chinese New Year 2023. But you want to get started quickly without spending money on setting up an ecommerce store. In this post, I’ll provide some guiding questions for you to think about before you get started, and a Free to use Whatsapp system you can use to start taking customer orders that takes less than 20 minutes to set up yourself.

I am going to show you how to start a home baking cake business in a weekend. It sounds like a lot to take in, but it’s actually pretty simple.

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What is a home-based baking business?

Starting a home baking business at home really hit a high during the beginning to the Pandemic. While there is a relaxation of social distancing rules, running a home-based baking business at home is here to stay. Many mothers found that it offers the convenience of being able to be close at home to fulfil motherhood responsibilities while still retaining the ability to earn a living. And, for the hungry foodie within us all, starting a home-baking business gave us all the reason to make the snacks we love en masse while profiting.

Is a home baking cake business still right for you?

The cake business has many things to consider. while not comprehensive, here are two things you need to think about before you get started with your cake business.

Business Plan

A cake business is a good way to go for those that like coming up with new ideas and finding ways to make money. It is also an effective way to reach out to people all over Singapore, or the world. Before you get started with all the activities, It’s worth it to make a business plan. A Business Plan is important to make sure the business is viable – that means operational, profitable, and if you so choose, scalable.

Allocation of Resources

Consider how much time and resources you are choosing to invest in the business. If this is your first time venturing into business, having a pop-up business would be the way to go without having to invest a lot of time and resources. Things you need to consider is your current job or home situation, how much money you want to set aside to start, and what resources you do/don’t have to run the business. Later in this post, we will show you how to reach your customers using a free Whatsapp-based order form that you can set up within 10 minutes.

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What type of customers do home bakers typically serve? | Cake Baking Basics

Before you start baking any cake, the question you should be asking is “Who am I baking for?”.  The type of customers that a home baker typically serves is anyone who wants to enjoy fresh breads or pastries made from scratch. In order to be able to serve this type of customer, the baker needs to know the cake baking basics as well has essential food hygiene practices. To add a homely touch to the bread and pastries, having them rustic, purist, cleanly presented will help you stand out from the rest.

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Guidelines for Home baking Cake Businesses

5 things to consider before starting a home baking business

1. Know your market: Do you know what type of goodies you want to make, and where the demand is? Who are your customers?
2. Plan for growth: How much capital will your business require in the beginning? Do you want to scale the business in future, or prefer to just keep it small enough to operate at home?
3. Plan for storage: How much space will you require? Will you be able to store ingredients, finished goods, packaging materials, etc.?
4. Plan for transportation: Will you be able to ship your product, or will it need to be stored in a warehouse?
5. Plan for staffing: How many staff members do you need to run the marketing, develop sales channels, run the operations, etc?
6. Plan for Operations: What will your work hours be? How do you intend to allocate time towards production, sales and marketing, managing the finances and cash flow, and spare time away from your business?

Technology for Home Based Cake Baking Businesses

When it comes to baking, technology is an unexpected item to consider. This is where your time management and allocation of energy comes into play. Automating some of your more tedious tasks will help you free up time to do the things that matter to you. You’d rather share your wonderful Chocolate Cake creation rather than have to deal with technical stuff or manage your operations and marketing cost.

Marketing your home bakery

Word of mouth marketing

Word of mouth marketing is the process by which information about a product or service is spread from person to person, often through personal contacts. It can be an effective way to market a product, but it is often more effective when the recipient of the information has a connection with the source. This form of marketing can be used in any industry, including restaurants, retail stores, and online marketing.

Online marketing and social media

Online marketing and social media are two terms that can be difficult to define. Some people view online marketing as a form of advertising, while others see it as a way to build brand awareness and drive traffic to a website or app. Social media is a platform for people to connect and share with others in real-time. Whether it’s short-term or long-term, you need to get a marketing plan together to get started. A great resource template to get started can be found at Hubspot.

• A Beginner’s Guide to Social Media
• How to use Instagram for Business

Get Your Orders Free from Hassle.

After your customers visit you a couple of times, they may want to start buying your food. You need something to help you collect orders, interact directly with customers, and collect payment. There are several options out there, but most of them charge a fee. The fee breakdowns usually are charged by 1) the payment gateway 2) As a commission from the ecommerce provider (eg: Shopify, WooCommerce). That means your revenue is slowly getting eaten away!

One way to mitigate the loss is from using the Whatsapp-based system: Take.App.

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Create a Whatsapp Order Form for Free with Take App

Problem: Customers had to manually type in a Whatsapp message to their favourite hawkers about what they want. It was time consuming, and prone to miscommunication (“I want the plus-one” – Hot-Cross Bun, “I want the bigger one” – when there are 5 different volume jars of jam). It’s a headache for both the sellers and customers, and precious time was wasted.

Then along came the delivery apps. Sure, that stuff was great convenience for the customers. But they charge merchants more than 30% commission per delivery. When you put that together along with the other overhead costs of running a business, you can see that the revenue erodes quickly! For a home baker or starter like yourself, it’s just not worth it!

Solution: Take.app allows your customers to place an order on Whatsapp without the vague ordering, and for sellers it gives them an easy-to-reach place to manage orders. But best of all, Take.app will not charge you at all for delivery! In fact, YOU can charge for delivery – they are giving you more chances of making money! There are no hidden fees or charges. It’s free to get started, and it takes less than 10 minutes.

Check out this 4 minute video walkthrough from Take.app, or check out our step-by-step below the video.

If you are considering starting your business, Take is a great way to start your home baking hustle without investing much into the overhead and ecommerce costs.

Is this Whatsapp Order Form Free?

Yes! This app is 100% free to use. All the essential functionalities and features for running a Whatsapp Order Form based business is available for your for free. There is a cost-recovery version which as some added features such as automated travel distance calculator. This feature is perfect if you offer delivery yourselves.

What are the comparisons between the Free and Premium Whatsapp Order Form?

Frequently Asked Questions and Myth Busting for starting a home-based bakery from home

Is it illegal to sell cakes from home? Are you allowed to sell cakes from home?

If you are in Singapore, it’s not illegal to sell cakes from home. However, once you start to open a retail or major operational space (eg: A factory or fully functioning bakery) you must consider the regulatory requirements from The Singapore Food Agency to get started. Even so, it’s recommended to follow the standards set regulatory to ensure customers have a healthy and hygienic experience with your products.

Do I need a license to sell homemade desserts?

Depending on whether you want to turn this into a fulltime business, and if you work with TCM or Medicinal properties, your knowledge and credentials such as a license lends credibility to your business. Take Chloe Ong, who started her TCM Herbal tea business while at home. To add credibility to her operations, she received certification and endorsement of her products from her mother who is a TCM practitioner. Having that credibility can lend benefits to you.

What makes a bakery profitable?

Bakery profit is typically measured by the gross profit margin, which is calculated with all fixed operating expenses subtracted from total revenue.

Besides, it’s possible to start a home baking business without any specialized equipment. It provides the opportunity for less overhead and greater profit margins because you are selling baked goods made in your own kitchen.

It can be done on weekends with limited expenses so that it is more affordable than other businesses like restaurants or retail stores.

Can I bake and sell cakes from my home?

If you intend to start a full-time bakery business from home, You can bake and sell cakes from your home if you have commercial grade cooking equipment, such as ovens and mixers.

But if you are just starting out, or experimenting, consumer kitchen level appliances should suffice. Either way, you can bake and sell cakes from your home as long as you have the space for the appliances needed to make the products, and that you can sell enough of the product to keep your house clear of space.

Summary

Home baking is a popular trend. People are looking for an exciting way to start their own home business without the stress of running an actual shop. This guide took you through some of the steps on how to do just that.

Share this post if you or someone you know is starting your home baking cake business!

If you want to start your own business, do visit www.take.app to get your business up and running within 10 minutes.

What tips do you have? Got any suggestions?

Leave them in the comments below.

Future Posts for Home Bakers

How will you market yourself?

How to start a cake business from home, but don’t know where to begin?

What makes their products so popular?

How much competition will you have?

What most home baking business owners believe?

What will your work hours be?

Can I make Cakes and sell them from home?