Facebook LinkedIn Email Pinterest Twitter Instagram YouTube Icon Navigation Search Icon Main Search Icon Video Play Icon Plus Icon Minus Icon Check Icon Print Icon Note Icon Heart Icon Filled Heart Icon Single Arrow Icon Double Arrow Icon Hamburger Icon TV Icon Close Icon Sorted Hamburger/Search Icon
Article

Establishing a solid foundation for your food business

State and local licenses for a bakery in Connecticut.

Save to Recipe Box
Print
Add Private Note
Saved Add to List

    Add to List

Print
Add Recipe Note

“People tell me all the time that I should start my own bakery.”

A classic quote from many home bakers. Here are a few things to think about before diving head first into launching your own baking company.

Licenses: get licensed by your local and state governments. This means you will probably have to find a kitchen outside of your home to rent. Some states do allow home kitchen use, but check first with your local health department.

The LLC: establishing an LLC can protect you and your personal assets and can be easily done for a fee. I used Incorp Services to do this for me and paid around $275, including a year of registered agent service (required in most states). You can also fill out the forms yourself for less. Check with your Secretary of State’s office for details.

Liability Insurance: insurance is usually necessary for renting a kitchen and protecting your business if someone gets sick from your products. Policies can cost from $350-$500 per year. Many insurers want you to have experience in your field – you may need to get a part time job in a restaurant kitchen or bakery (if you plan on starting a food business). For some companies, this could be as little as having worked in a cafe or coffeehouse in high school or college. Hire a broker and check with a few different companies.

Wholesale ingredients: keep costs down. You can’t expect to purchase ingredients at the supermarket (unless you are testing recipes in small batches). Costco has most ingredients you need to start a baking company. Another great national chain is Restaurant Depot (although many things like nuts and fruit are less expensive at Costco), though unlike Costco you must have a registered business to get a membership. Start with wholesale stores while you are attempting to source local ingredients (more on that in another post!).

Product profitability: romanticism about starting your own bakery aside, your products have to make a profit in order to keep your business afloat. Calculcating profitability is easy and you can use MS Excel to create a template. In fact, if you send me an email I’ll send you the template I use (basementbaker@bakelocal.com).

Selling: As much as you may hate salesmen, you have got to become one. The great thing is you believe in your products and are driven to sell by more than just money (did I mention that was important, though?). You don’t have to be pushy, just proud of your products and interested in how you can help your clients improve their business. The one thing that I have found about selling is, if you find the right customer, you don’t have to try so hard. The customer is key because the right customer is always right.

I hope this helps you get started! It may seem daunting at first, but a well planned business has a better chance of success. More to come on this topic…

Andy

Comments

Leave a Comment

Comments

  • aktlrBum | 11/01/2015

  • User avater
    BasementBaker | 06/09/2009

    Thanks Sally. Send me a link to your blog onces it is up. I am glad to see interest in the business side of the food business from you and others. I'll be writing more about that in future posts. In the meantime, I just need to get more pictures of cupcakes on the blog to attract more readers...

  • User avater
    Chefsallycam | 06/09/2009

    Hi Andy:

    Congrats on starting your blog and your bakery! I'm enjoying reading your blog. I started a personal chef/catering business 2 1/2 years ago and can so relate to much of what you share. Starting your business with the right foundation of licenses and an LLC is very important. After doing my homework I did both as well.

    My food blog is in the planning stage right now and I'm itching to get it going!

    By the way, those were aboslutely gorgeous cupcakes!

    Chef Sally

Leave A Comment

Your email address will not be published.

Delicious Dish

Find the inspiration you crave for your love of cooking

Fine Cooking Magazine

Subscribe today
and save up to 44%

Already a subscriber? Log in.

Videos

View All

Moveable Feast Logo

Season 4 Extras

Bonus Scene: Bee Farm in Greenough, Montana

Montana's wall-to-wall grass and wildflowers make it the perfect place to raise bees and harvest honey. In this extended scene from Season 4's Greenough, Montana, episode, we visit beekeeper Sam…

View all Moveable Feast recipes and video extras

Connect

Follow Fine Cooking on your favorite social networks