Common Mistakes to Avoid When Starting a Home Bakery Business

Making mistakes is part of any entrepreneurial journey. However, would it be nice to learn the most common mistakes in starting a new bakery so you get to avoid them?

home bakery business

Below are the common mistakes to avoid when starting a bakery business:

Not Understanding Your Market and Competitors

Knowing who your competitors help you make your products, services, and marketing efforts stand out.  Then, knowing who your customers are will ensure that you are giving them what they want and need.

Not Having Enough Experience

Get as much training as you can not only in baking but also in business management. At the same time, you want to train your staff so they are prepared to deal with customers properly and deliver quality services.

Starting a Business Without Appropriate Baking Equipment

You need to have the necessary tools and equipment to stay productive and efficient in the kitchen. Make sure you have the basic commercial bakery equipment, such as mixers, proofing cabinets, and of course – oven.

You might have additional tools needed depending on your menu so make sure to identify them beforehand.

Not Having Marketing Strategies

Marketing is crucial, especially when starting a bakery business. There are many ways to market your products and the best ones are those you do online. Take advantage of social media to promote your bakery business.

Offering Low Prices for High-quality Products

You need to price your products appropriately. If you’re offering high-quality bakes, don’t be ashamed to price it well. Or else, you run the risk of not just losing profits but also overspending.

As a rule of thumb, your prices should cover your cost of goods sold, at the very minimum.

Always find your profit margins. Whatever the price you set, make sure it’s within reason. There are profit margin calculators you can use online, but typically a 20% margin is good.

Not Keeping Track of Expenses

Over time, tracking your expenses help you predict the expenses coming up. This gives you more control of your cash flow.

Not Giving Customers What They Want

The best way to grow your business is to please your customers. Know what they want. Conduct surveys. Get feedback from your customers.

Occasionally ask them about what products they want to see on your menu the next time. Be open to their opinions and suggestions.

Not Keeping Bakery Products Fresh

Freshness and flavor are important if you want your customers to keep coming back. It’s better to bake in small batches than bake more than what you can sell.

Adopt the FIFO (first in, first out) policy to ensure freshness of your bakes.

You must look into what kinds of certifications, licenses, and health precautions are required. Some states do not require licenses for small-scale businesses,  but some states such as California, do require a food handler certification and a business license.

Not Being Aware of Current Baking Trends

The best way to stay on top of the competition is to be updated with the current trends. With today’s technology, it’s easy to do that.

You simply have to research on Google and you will learn about the latest trends in the bakery industry.

Benefits of Owning a Bakery from Home

Many entrepreneurs choose to start a bakery from home for several reasons:

It Allows To Save on Capital Costs

By operating from home, you can save so much on capital because you’re not going to pay rent. Still, you want to designate a separate baking area for your business.

It’s Convenient Because You Work at Home

It’s a lot more convenient to start a bakery from home as you don’t have to travel or take a commute everyday. You also have full control of your schedule. And if you have little ones, you can still look after them while you operate your business.

It Promotes Creativity

With the convenience of working from home, you have the freedom to be creative with your business. You can try different bakes that will capture the interests of your customers.

It Gives You the Opportunity To Follow Your Passion

A home bakery is a great opportunity to pursue your passion. Since it involves minimal capital risks, you can focus on developing your products and don’t feel pressured. You can bake in small batches or focus on specialty products and sell them online.


While baking is fun, running a bakery business can be challenging. Whether you’re operating from home or renting a commercial space, you need to be aware of the most common challenges that bakeries face in order to avoid them.

You should consider running your bakery from home if you want to save on capital costs. It’s a lot more convenient too.

damon shraunerAuthor BIO:

Damon Shrauner, Senior Sales Consultant and VP on B2B Sales at ChefBuyer, working in the foodservice equipment sector since 1994. With his expertise in market analysis, product placement, sales, and project management, he will always tell you what to do for the best of your business.

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