Starting up a home baking business

Emily_Rachel

studentbaker wrote: »

Thanks everyone for all the advice.

I am current in the process of writing a business plan and have hopefully answered most of the questions which have been presented by paddyrg (thanks!). The only difficulty is trying to predict how much I will sell and at what price but I think the only way is to test the market really! Its like when you see on dragon'd den, people say I forecast this much profit IF I sell this much. I don't want to over predict what I will sell and have wastage.

Atm I'm thinking there are two routes open to me, farmers markets and local shops. If I sell directly to the customers at farmers markets then my profits will be greater. However I can not predict how much I will sell, therefore I have the problem of making too much and have a lot of wastage or not making enough and loosing out on custom. Or if I sell to local shops, I will have to take a cut on my profit to allow the shop to make money too, but my product will be made to order so no wastage. Since I am only a small business every little penny will count! All profits will obviously go back into the business so each time I can afford to make more. I suppose everyone starting a food business has this to think of.

Please comment if you have any advice towards what I have just said. Thanks!

Hello, we did a deal with a local village post office. They normally sold only pre-packed loaves of bread and occasionally a box of mr kiplings, so were open to giving us a metre of shelf space. They sold cakes and scones for us once a week, and were happy with 10% commission, but waived this when they realised all profit was going to a specified local charity. Greatest profit made on scones. Plain, fruit and cheese. 'Classics' like bakewell slices, chocolate muffins and lemon drizzle cakes sold particularly well too. We did 3 kind of scones and 3 kinds of cake, including one 'new' muffin per week with a couple of the classics. Usually priced at total cost of ingredients x 4, rounded up. Special decorated cakes for Easter and Christmas more expensive. Packed in 4's or as whole small cakes in proper packaging, bought at cost price from local supplier when the well-liked charity was mentioned. You may be able to find local egg, butter, milk, flour suppliers that would let you try their produce free/cost price to raise money for a charity. Could be a good way to trial your products and test the market and help a charity too, as well as making useful local contacts. You can get more advice from Womens' Institute, who may also be able to help you get the right food safety certification in place too. They also have weekly cake sales, where you take your cakes, they sell them for a slice of the price, and you help with the selling one week in four. Have not tried this myself, but worth trying maybe. Although their sales price is much lower than you would normally aim for, it would give you direct customer contact and feedback. If your charity trial works out well, you then have some real figures to plug into your business plan, and can consider making it into a 'real' business. I already had a food hygiene certificate and a health-inspector-vetted kitchen as I had a business that included catering, but you can make your own kitchen suitable with a few adjustments. Good luck!