How to Start a Home Baking Business UK
Starting your own business can be stressful at times, especially if you want to start it from home. Research shows from 2012 to 2016, the number of home baking businesses has increased by 1500%, and it’s even more likely that the numbers may continue to rise. The Great British Bake Off is the reason behind all this inspiration for cake businesses in the UK.
However, as the numbers still continue to increase, the competition is also aggressively growing. So, I am guessing you are there and don’t know how to start a cake business from home, but you have no idea of where or how to start, right? Below is a complete guide that will help you know how to start a cake business from home.
Register as a self-employed baker with the HMRC
Regardless that baking is your hobby and you want to turn it into a profitable source of income or a side hustle, The HMRC needs to know that you are starting your home business. So, you need to register that you can pay your taxes through the Self-Assessment tax system.
After registering as a self-employed baker then, you must register for a GOV.UK Verify the account, which will allow you access to online services HMRC included. After that, you will need to fill in some basic information about you and your business-like contact details and the type of work that you are presently doing.
Inform the Local Authority
You should do this 28 days before starting selling and registering for a food business as a UK entrepreneur. Likewise, ensure that you have a food hygiene certificate to equip yourself with the rules and regulations that you need to follow. If it’s your first time in the business instead, you should take a level 2 course.
The 28 days’ time period gives them time to fully access your food preparation and hygiene as you might need lidded waste containers, hand washing facilities, and they need to ensure that all the washable surfaces are in good condition before you start selling.
Though they don’t take your home baking business as big as the commercial grounds like the eateries, you might want to ensure that your windows, doors, ceilings, and walls are in good condition and can be easily cleaned. If possible, it’s wise to isolate your personal home fridge from that of your business to avoid the cross uncleanness of your foods, and if not, you should be clear about foods for your business. Lastly, keep your pets and children out of the kitchen, especially when preparing your foods.
Inform your Landlord/Mortgage Lender
The UK government allows people to sell and run their businesses from rented houses; however, you must have written permission from your landlord.
Sometimes, landlords will refuse to give you permission if your business is disruptive or if it will bring damages to the premises. However, landlords must also be realistic enough to allow you to have your business from home if you are dutiful to properly maintain the premises. Come to think of it, baking is an everyday activity in a house, so there’s no definite reason for them not to give you that permit. If you own your home, you might also want to inform and get your permit from your mortgage lender to allow you to start and run your cake business from home.
Sort your Home baking Insurance
Both Public Liability insurance and product liability insurance are essential as any other insurance. Therefore, they are usually taken together. These insurances come in handy if you are sued by someone for injury or damage.
Other insurance includes equipment cover, which will come through for expensive appliances like your refrigerator, oven, or stand mixers. While setting up your cake business from home, you should be prepared for personal accidents like burns from hot sugar or a fall in the kitchen Therefore it’s important to take cover and policy because these minor accidents will affect your income while you recover. There are good insurers who will help you build full coverage that fits all your needs in the cake business. Also, if you want to have employees click here to get started.
Set up a Business Bank Account
As a sole owner, you might not necessarily need to have separate bank accounts as you may choose to use your personal account. However, it advisable in the future to have a business account as it’s much easier to work out your cash flow and calculate your tax charges at the end of the year.
Find Your Baking Forte and Ensure That You Have the Right Tools for Your Cake Business At Home The cake business from home is thriving; hence it gives you have an excellent idea of what you’re doing, and you must give it your best. Whether you have a talent for decorating, bake implausible vegan cakes, or prefer traditional local baking, let the world know what you can and make it your forte.
Now that you already know what you want ensure that you have the essential tools like;
- Cake trays
- Decorating cutters
- Cake tins
- Piping bags and nozzles
- Electric scales
Set your Prices
Take some time and research your intranets’ rates and costs. Don’t forget that you need to cover ingredients; you need to be paid and pay your workers if you have one fair pay. Work them out together with other expenses to set the pricing plans.
Promote Your Business and Sell
Cake businesses from home also mean that you will be competing against bakeries, supermarkets, so you have to put in the right strategy to promote your cake business.
People will only buy what they see. So, you might want to consider online platforms like Instagram or Facebook, where you can take and post pictures of your baked cakes together with the prices, contact details also, you can add more information about you and your cake business.
At some point, you might want to reconsider a website for your cake business. However, this is a significant plus because it provides various ways for you to take payments. For example, WordPress allows you to set up shopping carts to decide if to take payments in advance or invoice your customers.
Track your Finances
Keep track of every coin that goes in and out of your cake business at home.
Also, ensure to hold on to every receipt and invoice because they’ll make it easier for you than to rush at the end of the tax year. I hope the guide above will help you understand how to start a cake business from home.
If you have more questions about setting up your cake business from home, feel free to leave a comment below.