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19th August 2020 · Leave a Comment

A Step-By-Step Guide On How To Start A Cupcake Business From Home

Work From Home Jobs

Turn your passion into something profitable. If you love baking, then, jump into the bandwagon and start off your very own cupcake business from home. We’re going to give you a step-by-step guide to help you get through the process.

how to start a cupcake business

Baking cupcakes from home to make a living is probably one of the most exciting and creative businesses you can ever think of. It’s definitely passion plus profit engaged together, and hopefully, when it succeeds, it would be the sweetest success ever!

With the current situation in the country and the world for that matter, people are pushed to think outside the box to be able to manage to make money, at the same time, ensure safety and good health among themselves and their families.

For sure, you will agree with us if we say that we are facing one of the darkest seasons in history. Imagine, we do not know until when this is going to last.

However, no matter how uncertain things get, one thing’s for sure – we need to keep going. We need to continue living and making a living. Otherwise, we’ll get hungry, our families will get hungry. Needless to say, bills will pile up and we might end up drowning in debt.

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With everything that’s happening around, though, ironically, it made people become creative and resourceful. With lockdowns here and there, the economy suffering, and the threat of losing jobs because of recession, people were pushed to think and strategize to be able to survive their day-to-day living.

While there are a lot of ways to earn money without having to walk out of the house and stay safe, one of the most beautiful, rather, one of the sweetest ways to earn money is by selling sweets – particularly cupcakes – online.

According to the online site, Chron, the bakery industry in the country is a huge business. It caters to one of the people’s weaknesses — cakes, pies, rolls, and tasty bread.

To support this claim with facts, according to the American Bakers Association, “the baking industry is a dynamic part of the U.S. economy, accounting for about $311.0 billion in total economic output or roughly 2.1 percent of GDP.”

Furthermore, in a report by the American Bakers Association, it says that baked goods produced and sold in the country total $423 billion. While retail bakeries earn around $3 billion, commercial bakeries generate $31 billion in products.

If you think about it, the demand for breads and sweets in general is huge!

Well, after all, people will never stop eating. It’s our way of life.

Anyway, even with the current situation, people continue to look for food – sweets in particular. And what better way to do it now than starting off a cupcake business from home. It’s safe for both the seller and the buyer – no physical contact, the lesser the chance of getting infected by the virus.

Also, by running a cupcake business from home, you get to do what you love without having to worry about spending a lot like how cupcake businesses with physical stores do.

So, with all that’s been said, are you excited to put up your very own cupcake business from home?

If you do, you are in the right place, because we are going to share with you a step-by-step guide on how to put up a cupcake business right at the comfort of your home.

But before that, allow us to share some very uplifting information first —

WHY START A CUPCAKE BUSINESS FROM HOME?

Perhaps some of you are wondering why would you put up a cupcake business from home? Why not put up a physical store instead of how others do it?

Well, here are some of the reasons why starting a cupcake business from home is the way to go:

1. Flexibility

Running your cupcake business from home allows you to become flexible especially with your time.

Unlike running a physical store or a cafe or a restaurant, when you do it at home, you get to do it at your own preferred time or when you are available. You don’t need to stick to a particular work schedule.

Apart from that, you get the power to accept or decline an order depending on your schedule or availability, or if there’s already too much order to do.

You see, having that flexibility allows you to be more creative, and at the same time, helps ensure that what you are able to provide your customers the best-tasting cupcakes you could possibly make – no pressure.

2. Stay Home with Your Kids

When running a cupcake business or any business at home, it allows you to be physically present with your kids.

Since you are home, it helps cut down expenses on childcare, which in turn allows you to save a few bucks every single day.

Also, being home allows you to spend more bonding time with your kids. Needless to say, it allows you to nurture your relationship with your little ones.

3. You Have More Room for Creativity

Since you are your own boss, you take full creative control of your business. You get to choose everything — from your business logo to decorating techniques you will use in making not just the best tasting, but also the most eye-catching cupcakes!

For creative people, this is definitely an ideal setup. You know, creative people hate it when someone dictates them of what to do.

4. You Get To Sate from Overhead Cost

Technically speaking, when you run a business from home, you automatically save money from overhead costs.

By doing your business at home, you get to save money from paying rent, electricity in another location, or insurance for the store.

So, instead of using the money from paying those, you get to save it and use it for your business’s future needs or probably in your business growth.

5. Take Advantage of More Tax Breaks

When running a business from home, it also means you get to take more tax breaks. You can definitely claim a home office deduction, which other business owners cannot take advantage of.

Having said all that, are you convinced now that running a cupcake business (or any business you can think of) from home is the most ideal one?

If you do, let’s proceed to the next one —

WHAT ARE THE STEPS IN PUTTING UP A CUPCAKE BUSINESS FROM HOME?

So, you found the perfect business idea, and the thought of frosting and sprinkling stuff on your sweets are already in your head. What to do now?

In the video below by BizMove, he talks about essential keys in a successful cupcake business, which include a practical plan, dedication and willingness to sacrifice to be able to reach your goal, technical skills, and lastly, basic knowledge on management, finance, record keeping, as well as market analysis.

But apart from all these, there is a lot more work to do. But before you even get overwhelmed, hang in there. Because — as promised, the steps below will help ensure that your cupcake business is not just something that came out of your mind and execute it, but something that is well-planned out, well-thought of. Needless to say, it is registered and is legally compliant, which makes your future customers confident that you are a legit business, and that you are not going to run away with their money.

Anyway, so here’s how to do it —

STEP 1: Plan Your Cupcake Business

First thing first, you have to have a plan. It is very important that when you are putting up a business (even if it’s just from home) that you have a clear plan. It’s essential for a business’s success.

A plan will help you map out the specifics of your business, at the same time, help you discover some unknowns.

When planning out your business, make sure to consider the following factors:

  • Startup and Ongoing Costs
  • Target Market
  • Product Price
  • Business Name
  • Paperwork

Here’s a quick explanation on each item —

  • Startup and Ongoing Costs – Unlike a real business that needs to think about rental fees and all that, this basically includes costs on baking essentials, packaging, insurance, as well as social media advertisements (if you want to capture your target market online), as well as payments for legal paperwork.
  • Target Market – Of course, in any business, it is important that you know by heart who your target market is. After all, it’s always easier to sell to a specific group than trying to capture everyone (that’s super tough, really). Make sure to be specific with your target audience. Eventually, you can grow your target, but as a starting point, focus on a specific group of people.
  • Product Price – We got a tip for this. Make time to look for some of the best online cupcake businesses within your area and check on their prices. Your price should be competitive enough that people will get interested to check out the product that you offer.
  • Business Name – The business name is very important. It’s not just a name, but it will also serve as your own personal brand. When thinking of a business name, make sure it embodies what product you are selling.
  • Paperwork – Since our aim is to make a legit cupcake business from home, make sure to research about what paperwork needs to be done to make everything legal. Check your local government for any existing law or rules when doing business from home.

STEP 2: Come Up with a Business Structure

This step is actually related to the paperwork that your business needs. By deciding what your business structure is going to be, it would be easier to check the documents you need to prepare to make it legit.

There are a couple of business structures to choose from. It could be a sole proprietorship, LLC, partnership, or corporation.

While this can be a little complicated especially if you are not familiar with how one differs from the other, we highly recommend that you talk about your options with a tax professional or lawyer who is familiar with business structures.

Keep in mind that your decision will affect not just how you pay yourself, but also how you file your taxes.

STEP 3: Obtain a Federal Employer Identification Number (EIN)

Once you have decided what your business structure will be, the next thing you need to do is to get a federal Employer Identification Number (EIN).

The EIS will be used when filing taxes and reporting your business information.

Meanwhile, if you opt to be a sole proprietor, which is usually the case for businesses from home, you have the option to either use an EIN or your own social security number.

STEP 4: Get Proper Licenses

To be able to legally sell baked sweets from your home, make sure to have all proper licenses, which include the following:

  • Registered Business Certificate
  • Bakery License
  • Vending License (if you opt to sell products you do not personally make)

STEP 5: Check Local Zoning Laws

Every state does have local zoning laws. Make sure you ask your local zoning office first to ensure you are not breaking any law.

Keep in mind that rules differ for single-family homes and for small businesses.

Make sure also to discuss with the zoning office if you are just going to bake and decorate cupcakes at home and won’t have customers shopping or buying them from your home.

STEP 6: Insure Your Business

To insure a business is very important. It helps your business (and your family, too) protected from unforeseen events.

Make time to talk to your local insurance agent, and discuss to them about the types and amounts that are suitable for your business. Technically, though, you can choose either general liability insurance or business owner’s policy.

We highly recommend getting one. Like we said, unforeseen things happen, and when that happens, you better be protected financially.

STEP 7: Setup Your Social Media Presence

You know, people these days are so into online shopping. They buy almost everything they need online.

Online demand even increased when pandemic happened. People are scared going out so, they would rather have what they need to be delivered at their doorsteps.

So, with that, make use of social media platforms to spread the news. Create a Facebook page, an Instagram account, etc. Be conveniently available online.

STEP 8: Market Your Cupcake Business

Before you even officially launch the business, make sure you do marketing stuff. You need people to know that you are coming up with a cupcake business and that they should watch out for it.

Good thing, these days, you can easily advertise on different social media platforms. You can promote your products in just a click of a finger, and it does not cost a lot!

Of course, nothing beats word of mouth. So, if possible, collaborate with influencers. Send them free cupcakes, and in return, a review or shout out will absolutely help.

STEP 9: Officially Launch Your Cupcake Business

Finally, to make everything as legit as can be, officially launch your business!

Bake and create the sweetest, the tastiest cupcakes anyone could ask for. Remember, though, to be consistent. In businesses, especially with food, consistency is the key to ensure profit.

HOW TO PREPARE FOR A CUPCAKE BUSINESS?

Now, apart from planning the business and working on its legitimacy, there are a couple of other important things that you should also work on personally.

Remember that you are not the only one in the cupcake business, which means the competition is high, and you have to work hard to ensure you get to give your customers the best quality product, and of course, an amazing service.

Here’s a couple of tips on how you’re going to achieve that:

Tip 1: Decide on Your Flavors

When starting a cupcake business, we highly recommend perfecting certain flavors and focusing on them instead of providing your customers with a variety of choices.

Specialize in a certain flavor and be known for that. If you decide, for instance, to offer chocolate cupcake, make sure that is the best chocolate cupcake recipe people will ever taste. You get what we mean, right?

Tip 2: Hone Your Decorating Skills

Surely, you know certain decorating techniques, but are they unique enough to make you stand out from the rest?

When getting into a cupcake business, or any business for that matter, make sure that it’s well-thought-out, and that it is unique.

Since it’s a business, the goal is to sell, so apart from perfecting your recipe, make sure to always update your decorating skills.

Always set the trend and not just follow them.

Tip 3: Choose a Cupcake Design and Names

Another important thing that you need to work on before you even launch your business is to decide on cupcake designs and names.

Make designs that standout. Something unique, something that represents your brand.

The same goes for when you are deciding on names. Make sure the names are unique and carry the brand. Do not be generic.

FINAL THOUGHTS ON CUPCAKE BUSINESS

While the world is in chaos, your bills do not stop. You continue to live, and so are your needs (and some wants). Thus, you have to continue making a living.

With the health and safety of yourself and your family, starting a business from home is definitely one of the best ideas right now. If you love baking, then, this is definitely the perfect time to start up a cupcake business from home.

With just a little money and a huge passion to make amazing sweets, you can definitely begin your business journey. You know what they say, sometimes, even the most unfortunate events can bring out something positive. Who knows, this might be it!?

Starting a cupcake business may sound a little tricky, but with the right knowledge, a little dash of confidence in your work mixed with faith, you can absolutely succeed in this.

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