If you have a passion for baking and a creative eye for design, starting a cake business could be the perfect way to turn your hobby into a profitable business. Now with rising living costs having a side-hustle or even going self-employed can be a great way to lift the limit of what you can earn... all from your own kitchen!
In this blog, we will provide you with a step-by-step guide on how to start a cake baking and decorating business from scratch, sharing tips and tricks that I've learnt running a cake business from home and then from my bakery.
From developing your recipes to building your brand and expanding your services, we will cover everything you need to know to start your own cake business in the UK.
Whether you want to focus on wedding cakes, celebration cakes, cupcakes, or special dietary needs cakes, our blog will help you navigate the process of setting up your own cake baking and decorating business, turning your passion into a successful career.
Why Should I Start A Cake Business From Home?
Starting a cake decorating and baking business from home can be an excellent idea for several reasons.
Growing demand for personalised cakes: With social media and online marketplaces, people are increasingly looking for unique, personalized cakes that reflect their individual style and taste. This growing demand for custom cakes offers an excellent opportunity for entrepreneurs who can deliver high-quality, personalized cakes to their customers.
Increasing interest in artisanal products: Consumers are becoming more interested in artisanal products made with high-quality ingredients and attention to detail. As a baker, you can leverage this trend by offering handmade, high-quality cakes that stand out from mass-produced alternatives.
Flexibility and low start-up costs: Starting a cake decorating and baking business can be relatively easy and flexible. You can start small, working from home, and gradually grow your business as you gain more customers and experience. With low start-up costs and the ability to work part-time, this can be an excellent option for individuals who want to pursue their passion for baking while maintaining other commitments.
Multiple revenue streams: As a cake decorator and baker, you can diversify your revenue streams by offering different products and services. For example, in addition to cakes, you can offer cupcakes, cookies, or other baked goods, and you can also expand your business to include cake decorating courses, workshops, or online tutorials.
Rewarding work: Finally, starting a cake decorating and baking business can be a fulfilling and rewarding experience. You get to create beautiful, delicious products that bring joy to your customers and play a significant role in their celebrations and special moments like weddings, anniversaries and birthdays!
Starting a cake business now is an excellent idea for those who are passionate about baking, creative, and entrepreneurial. With the growing demand for personalised, artisanal products, low start-up costs, and the ability to diversify revenue streams, this can be a fulfilling and profitable career choice.
My Ten Steps To Starting A Cake Business From Home!
I started my cake baking and decorating business in 2017 and have grown it over the years to have my own bakery and now I am helping other budding bakers get into the cake decorating business! I am happy to share with you a 10-step guide on how to start a similar business from scratch in the UK:
1. Identify your niche: Decide on the type of cakes you want to bake and decorate, and the target market for your business. This could be wedding cakes, celebration cakes, cupcakes, special dietary needs cakes or even unique designs.
2. Develop your recipes: Perfect your cake recipes to make sure that your cakes taste delicious and look beautiful. Experiment with different flavours and ingredients until you find what works best. This one takes a lot of research and trial and error!
3. Register your business: Register your business with Companies House and HM Revenue and Customs (HMRC) to ensure that you are operating legally.
4. Get the necessary licenses and certifications: Obtain the necessary licenses and certifications to operate your business, such as a food hygiene certificate. Don't forget to also register your business with your council for your Food Hygiene Inspections.
5. Find a place to bake: You can use your own kitchen or rent a commercial kitchen space or bakery where you can bake and decorate your cakes.
6. Invest in equipment and supplies: Purchase all the necessary cake decorating tools, equipment and supplies, such as ovens, mixers, baking pans, and decorating tools.
7. Build your brand: Develop your brand by creating a logo and a website, and establishing a social media presence to showcase your cakes and cake designs.
8. Network and market your business: Attend local events and farmers markets to showcase your cakes and connect with potential customers. Also, consider offering discounts and promotions to attract new customers.
9. Expand your services: Once your business is established, consider expanding your services by offering different types of cakes, different designs or even cake decorating classes and workshops.
10. Continuously improve your skills and offerings: Stay up to date with the latest trends in cake baking and decorating by attending cake decorating workshops and training sessions, and continuously improving your skills to offer your customers the best possible experience.
Starting a cake baking and decorating business from scratch can be a challenging process, but with hard work, dedication, and a willingness to learn and grow, you can turn your passion for baking into a successful business.
How much does it cost to start a cake business?
Starting a cake business from home in the UK can be relatively low cost, but there are still some initial expenses to consider.
The main costs involved in starting a home-based cake business include purchasing ingredients, baking equipment such as ovens, mixers, baking pans, cake decorating tools, and packaging materials.
I was fortunate to have lots of these cake decorating tools and equipment as I baked recreationally before setting up Copper Spoon Cakery so my initial costs were fairly low - Another reason to get into cake decorating!
You may also need to invest in a food hygiene certificate, insurance, and business registration fees. Other costs may include building a website or creating a social media presence to promote your business.
The initial costs of starting a cake business from home will vary depending on the scale of your operation and the level of investment you choose to make in your business. However, by starting small and gradually growing your business, you can keep initial costs under control and build a successful cake business over time.
How much can you make as a cake decorator?
This question really is up to you!
Pricing your cakes is really difficult. When I started I had to do a lot of research to find what other similar cake bakers were charging and then how much I wanted to pay myself.
As a cake decorator, your income can vary depending on a variety of factors, such as your experience, reputation, location, and the volume of business you generate. According to industry sources, the average hourly rate for a cake decorator in the UK is between £7 and £15 per hour.
However, some experienced decorators charge as much as £50 or more per hour for their services.
As you grow your skills and reputation, you can command higher rates and increase your earning potential. It is worth noting that the profit margins for cake businesses can be relatively high, as the cost of ingredients and materials is generally low compared to the final selling price of the product.
As with any business, the amount you can make as a cake decorator will depend on various factors, including the quality of your products, the demand for your services, and your ability to manage your business efficiently.