How do I start a home baking business?

5 Simple Steps You Can Take Today.

“Wow, this cake is amazing—you should start a home baking business!”

If you’ve heard that before, you’re not alone. Maybe you’ve smiled and said, “Thanks, I’ve thought about it,” while a little voice in your head whispered, “But am I really good enough?”. So you shelve the idea. “Maybe one day,” you say, “when the time feels right.”

Here’s the truth: the perfect time never shows up. There won’t be a flashing sign saying, “NOW is your moment! Sometimes, you have to decide that the time is now—and act accordingly.

So, if you are dreaming of starting a home baking business, here are five things you can do today to take real, practical steps towards your goal.


Step 1: Start to Think About What Your Cake Business Will Be Like

Before you get caught up in logos and packaging, start with the basics: what do you actually want your cake business to look like?

Get out a pen and paper (yes, really) and write it down:

  • What will you sell? Birthday cakes, wedding cakes, cupcakes, brownies by post?
  • How much do you want to earn? Be specific—“£1,000 per month” is better than “some extra cash.”
  • What hours can you commit? Full-time income needs full-time effort. Know what you can give.
  • What’s your business name? Once you’ve got one, check availability on Companies House, social media, and Google.
  • Where will you sell? Online shop, Instagram, markets, local orders—plan it out.

📌 People who write down their goals are 42% more likely to achieve them. You’re already ahead just by doing this.


Step 2: Register Your Home Baking Business Before you Start

If you’re based in the UK, you must register your home-based food business with your local council at least 28 days before trading. It’s a legal requirement, and it’s completely free.

You’ll need to provide:

  • Your name and home address
  • Your business name
  • The types of baked goods you’ll sell
  • When and where you’ll be trading
  • Whether you’ll be working seasonally or year-round
  • Your business structure (sole trader, limited company, etc.)

💡 Just Google “[Your Local Council] food business registration” to get started.

Although it’s not a legal requirement when running a baking business from home, it’s highly recommended that you complete a Level 2 Food Hygiene and Safety certificate and allergen awareness training. 

Both courses can be completed online in just a few hours.

 

https://www.food.gov.uk/business-guidance/starting-a-food-business-from-your-home


Step 3: Get the Right Insurance for Your Cake Business

Insurance is essential if you’re serious about running a cake business from home.

Here’s what to consider:

  • Public Liability Insurance (PLI): Covers you if someone gets hurt or injured at, for example, a market stall where you are selling your cakes.
  • Product Liability Insurance: Covers claims if someone becomes ill from your baked goods (e.g., allergens or contamination).

You can find affordable insurance policies tailored to small baking businesses online.


🎪 Planning to sell at events or markets? Most require proof of PLI.

Step 4: Before you start your Home Baking Business, Make Sure You are able to Trade from Home

Before you bake a single cupcake for sale, make sure you’re allowed to run your business from your home:

  • Check your mortgage or tenancy agreement. Some have clauses restricting business use—read the fine print.
  • Review your home and car insurance policies. You may need to amend them to include business activity.
  • Check with your local authority if planning permission is needed (rare, but possible if you’re planning to amend or extend your home for your bakery).

Sorting this before you start your home business saves a lot of stress further down the line.


Step 5: Take One Small Step Today

To start your home baking business doesn’t mean figuring everything out at once. Just do one small thing that moves you forward:

  • Book a Level 2 Food Hygiene course
  • Set up your Instagram or Facebook business page
  • Buy a domain name
  • Tell a friend you’re going for it

📌 Momentum starts with action. A tiny step today is better than waiting for the perfect one tomorrow.


Frequently Asked Questions

Q: How much does it cost to start a home baking business in the UK?
A: You can start small—basic costs might include equipment, ingredients, insurance, and hygiene training. Many start with under £500.

Q: Can I run a cake business from a council house or rented property?
A: Often, yes—but you must check your tenancy agreement and get landlord permission.

Q: What licenses do I need to start a cake business from home?
A: At minimum, you’ll need to register your food business with your council, complete a food hygiene course and allergen training.


Final Thought

If you’ve read this article and are still searching for a sign to confirm the timing is right, perhaps the very fact that you’ve found yourself here is that sign!

“All our dreams can come true if we have the courage to pursue them.”

Walt Disney

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