How To Make Money Selling Baked Goods

How to make Money Selling Baked Goods
How to make Money Selling Baked Goods

If you love baking home-made goods and have received a lot of compliments in the past about your baking skills, then maybe it is time you considered the possibility of making money by selling baked goods.

These days people are getting more creative with designs and recipes when it comes to baked items hence the reason why selling baked goods is slowly becoming a viable business idea. Also, people are having more and more parties and events that need scrumptious treats but they do not have the time or maybe the skills to make them themselves. Therefore, they outsource these services and, if your baked goods are a preferred choice among most  people, you are likely to get a lot of referral clients.

There are so many different types of treats that you can bake and sell from home. They include; cupcakes, pies, brownies, muffins, cookies, bread and cakes among many others.

What You Need to Start Your Home Baking Business

You do not need expensive equipment for your home baking business, some of these items are things you already have access to. They include;

  • Mixer
  • Bowls, measuring cups and spoons and a sieve
  • Baking tins/trays
  • Ingredients
  • Some recipes
  • An oven

Start Making Money Selling Baked Goods

Permits and Licenses

Before going all out to make your first batch of baked treats, you first need to check if the law in your area allows you to bake and sell goods from home. Luckily, most areas allow for this, therefore, what you need to do is to apply for the necessary permits and licenses required for your business.

This allows you to easily sell your baked goods from home, at a farmer’s market or even supply them to local stores.

Have a Signature Item

For every idea that you can think of, there are probably several others doing the same. This is true about the business of baking. Everyone who bakes can make cookies, cakes, pies, etc. therefore, you need to develop a signature recipe that will help set you apart from your competitors.

Carving a niche in the market will help you establish yourself in the minds of your clients. This way, they know if they need that specific baked good, you are their go-to person. It is advisable for anyone who is starting to first focus on only baking the one product that they are well known for. In the future, you can then expand to incorporate other baked treats.  

Determine Your Prices

Although it might not look like it, running a home-based business also comes with overhead costs such as electricity bills because unlike your normal household, you will be using equipment such as the oven for longer. You therefore need to ensure as you calculate your operational costs such as ingredients and packaging, you also include these overhead costs.

To help you determine your prices, you first need to understand your market, that is, who they are, their needs as well as their purchasing power. Next, you need to find out who your competitors are and at what price they are selling their products. Finally, you need to find a cheap source of raw materials such as ingredients and packaging containers.

Give Out Free Samples

People like free things, it’s even better if it’s cake or a pack of cookies. It is really easy to get people hooked on sweet treats, therefore, if they like your products they will likely contact you for more.

The most ideal places to hand out free samples are at places where you have some sort of connections such as at your local hair salon, dentist or optician office, library, school, or even at your church. These are people who already know you therefore there is a high likelihood that they will support your business.

While at it, do not forget to hand out your business card as well as a price list.

Market Your Products

Apart from giving out free samples, there are several other ways in which you can promote your baking business such as selling at a farmer’s market, handing out flyers or business cards and finally, getting on social media.

Today, social media has become an integral part of any business therefore, having an active and strong social media presence is a necessity. This helps you to connect with clients on a more personal level hence builds trust. This is because, besides posting attractive pictures, you could also have interactive sessions with your followers through live streaming, Q&A sessions, behind the scene shots, etc.


There are so many groups online that seek to bring together people of common interests. These groups tend to be very informative and supportive in matters regarding how to run a home-based baking business as well as in sharing new recipes to try out. Therefore, if you can, you should seek to join any one of the groups online. You could also search for one within your area.

Besides online support groups, you should also aim at making acquaintance with other local bakers within your area. You can easily find them at farmer’s markets or through word of mouth. Being a part of a group will help you land clients through referrals since at times one might get themselves overwhelmed by orders and might need help.

Embrace Growth

As your business becomes popular, you will find yourself having more orders. More orders lead to growth. Therefore, when the time comes, you need to embrace it to keep making money from selling baked goods.

Also, with growth comes change. What used to apply during the onset of your business might no longer be applicable. You might find that you need to add more people to the team or even hire an industrial kitchen. You need to be open to change to be able to keep making money from selling baked goods at home.

In Conclusion

Starting a home-based baking business is fun, easy and inexpensive. Therefore, if you love baking, why not make money through your hobby? There might be a few challenges here and there, however, this business is one that is very lucrative, especially during the holidays when people need customized goods.

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