Starting a Homemade Cake Business

Homemade cakes can bring a smile to anybody?s face that is why starting a homemade cake business is a good idea. Remember that in order for you to gain profit it will be best if you consider pricing your cake way higher than a store-bought cake.

There are a lot of ways to market your business. It is up to you how creative will you be.

homemade cake business

Homemade cakes can definitely make a difference at every table right after meals. It certainly gives a certain level of joy to everyone when they see homemade cakes. If you have a passion for baking especially delicious cakes then starting a homemade cake business is certainly a good idea. The flavor of the cake, texture, and decorations can make you generate income if you do it right. Whether you want to bake a chocolate cake, rum-flavored cake, birthday cake, and cake for other occasions, starting a homemade cake business can bring a smile to anyone’s face.

Homemade Cake Pricing

The common mistake of home bakers is the fact that they charge too little when it comes to their cake. They do this for the reason that they don’t want to compete with other stores. This is not a good idea especially when your goal is to make a profit in your homemade cake business. Of course, you might say that you bake for passion and not for money but at times like this, you need to get what you worked for. In order to be successful in this endeavor, you need to charge based on your cake’s worth. It is a homemade cake with your personal touch in it. You could have a recipe that was passed on to your family’s generations. Of course, you have selected the best ingredients available so it is better to charge your customer based on your labor and the ingredients you used.

It is important to establish the fact that your cake is different from store-bought ones. Remember that your cake definitely has a better quality so you need to charge more. You don’t have to keep up with other baker’s prices. You will be surprised that people are willing to pay to get quality cakes and they would likely refer you to others.

Suggestions for homemade cake business

  • Build your social network list from wedding planners to event organizers so that they will know who to refer when somebody wants cake.
  • Talk about your business. Nobody will know about it until you do some serious marketing. Be ready with your business cards to hand out to people.
  • For your homemade cakes, the packaging is quite important. Use transparent boxes so that your cakes will easily be seen. Don’t forget to put a small label with the name of your business and contact number so that people will know where to contact you in case they want to order cake.
  • List down organizations where you can offer to bake a cake for their next party or get-together events.
  • Partner with local restaurants to sell your cake. Although this involves a serious marketing process, this will be good for you because it can add to your credibility. You can also take in some personal orders as well.
  • Another marketing strategy is to sponsor a cake tasting event. This can help you in generating more income and can advertise your business too.
  • There are some classes offered when it comes to cake baking. Try investing in cake baking education so that you will know the latest. You might also want to enroll in a cake decorating class.


  • Jonna Tay said on June 26, 2009
    your article is so inspiring.... thanks
  • vero said on August 10, 2009
    Hi! Do you know what do I need to make it a legal business? thanks!!!!!!
  • Paul Montalvo said on November 23, 2009
    I want to help my daughter in starting business listed above. She has taken cupcakes courses and has good potential. I have tasted her baked cupcakes. I'm convince that she has a market for it. We live in the Bronx, NY. I want to sell her cupcakes on a vending cart. I'm a veteran and can get a veteran vending license but what else is required to ensure a successful go at it. Please email me.
  • Tina said on November 29, 2009
    I have been doing this homemade cake business through on line and word of mouth marketing. I understand good marketing can help a lot to get people know you. Here's my web-site that my brother help me to create. Can you pls have a look if you can advise for any improvement? People always say your web-site is too simple. But i don't know what wrong with it? appreciated your help!
  • Jen said on April 2, 2010
    Thank you for your suggestions they are very helpful. I come from 3 generations of cake makers. I live in the UK and love making and decorating cakes. My dream is to have my own cake studio. Currently my challenge is to get the price and packaging right. Any suggestions welcome
  • Sujata Patra said on April 22, 2010
    I want to start a business of my own from my residence. Please send a good and viable idea. Haldia, West Bengal INDIA.
  • Tina said on June 3, 2010
    Tks a lot for yr valuable suggestion and critique. is there any service you can provide in order to enhance the business?
  • Karolina said on June 10, 2010
    I am just starting my custom birthday cakes business in Devon, UK, and I love this website! I am tempted to charge very few money for my cakes, but why should I?
    Tina - considering your website is simple (which is perfectly fine!) it is technically quite slow! Also, there's something funny with the font happening - it looks like chinese! All the best to you all.
  • Tallara said on August 4, 2010
    Hey, I loved your article it helped with a lot of planning. I'm 15 and looking to start my own business. I'm self studying wilton's course at the moment and looking at business names. I have trialled a few cakes just for friends birthdays, and they loved them. I haven't charged anyone anything yet. I would love some pointers on things that can help me get started. Thanks
  • Melissa said on August 11, 2010
    I love baking, reading cookbooks, and decorating them. I have made all of my daughters birthday cakes from scratch with custom decorating. I have been paid to make custom cakes for friends and coworkers. Recently I did a cupcake tower for my daughters graduation party. A friend is now opening a dessert and tea cafe' and she has asked me to make cakes/cupcakes for her store. My question is do I just supply them to her at a cost with no visibility? Or do I create a business name and display the cakes/cupcakes under my business name to make sure customers know I am the source and what are the pro and cons of both options? I want to make sure I start off on the right foot with this exciting venture. Thanks!
  • Barbara Briones said on August 15, 2010
    I would like to begin to sell my cupcakes and muffins at local farmers market, but I am not sure where to begin. Can you please point me in the right direction. I live in Huntington Beach, California. Thanks for your help :)
  • zalui said on September 7, 2010
    I live in UNITED ARAB EMIRATS, Raselkhaima, I can do oriental cookies, french patisserie and american cakes, so i feel that i'm ready to start selling my cakes. but my problem is i don't know how to start?
  • Valli said on September 16, 2010
    I like to cook new recipes. I have tried out few cakes all have come out well. Some of my coworkers who had tasted are willing to buy from me. But I donno how much to charge them. Also I dont have any idea of packing the cake. Where to buy transparent cake box? Please guide me.
  • Audrey said on October 4, 2010
    Runaway Bay, Tx, USA. I have made cakes & cupcakes for friends & family for years. I started out helping my mother who made cakes for her friends & family for every occasion you could think of. Now I would like to turn it into a business. Could you please let me know what I would need to do to get this started. I would also like to know where to buy the transparent cake boxes & cupcake holders. Thank you.
  • Talethia said on October 27, 2010
    I was a box baker for a long time but i married a man that love homemade cakes and now i have perfected them. I have made cakes for the holidays and for people for free. Can you please help me with getting things off the ground. I think i have found a good name from my business but i haven't gotten started i am concerned about pricing and packaging. PLEASE HELP! Tallahassee, Florida USA
  • gina coto said on December 27, 2010
    I'm trying to help get my mom's cake business started. We live in orlando fl. She makes the best homemade exotic cakes. People love them and have been ordering them for the holidays. Right now we need a good business name.
  • lorna said on February 11, 2011
    Somerset, England. Just about to start selling my home made cakes but am unsure how to price them, could you please advise me. thank you, Lorna
  • Jeanette said on April 6, 2011
    Bradenton, Florida. I am looking to start baking cakes and cupcakes for a profit; however, I will be baking out of my home, as this will be a side business to supplement my full-time income. I am hoping to be able to bake for 2 or 3 occasions/events per week. Are there any legal ramifications in regard to baking and selling cakes and cupcakes from a home-based business? I want to do the right thing, but I cannot afford to rent professional space and need to keep my full-time job right now. Can you help?
  • Louise said on July 11, 2011
    i'm only 13 and i love baking cakes and all my family loves them i have been baking cake for over 2 years now and i found this article is very interesting. i have been trying to sell cakes for ages, i have even got shouted at in school for not doing my homework coz i have been to busy trying to find the right website to help me with selling cakes online. so thank you.x
  • Rona Waterman said on August 7, 2011
    I bake good business will be in: Wilmington, North Carolina. I want to make personal bean pies, and Cupcakes.
  • Allison said on January 12, 2012
    Yonkers, NY... I want like to start a homemade business selling rum cake. What are the requirements? Also, do you know of any pastry making courses in Westchester, NY?
  • Monica said on January 25, 2012
    Thank you this it motivated me even more. i actually started baking for my family and took a wilton decorating course to improve. i'm now looking to enroll in a baking course. I also started my own little online site to get started. Thanks for the info and inspiration.
  • Staciey said on August 23, 2012
    Penrith nsw , hi there I am just curious I wanna start selling cakes from home making. Them from home as I have a young daughter at home I wanna spend time with as I missed Out with my son grown up with full-time work , can someone please tell me whether or not I Need to hold some kinda license to be selling this sorta thing to friends family. N public ???? I wanna make sure I am doing this right
  • Nicola said on August 30, 2012
    Southampton, England. I am just starting out and about to pitch a sale for my homemade cakes at a new cafe which is going to sell just cakes and icecream. They have told me this is a new business to then so if i bring a cake along to present, we can go from there. Originally i wanted to sell my carrot cake for £30 but i realise they will only profit by around £14 averaging 16 x £2.75 but i don't want to undersell myself. My ingredients are expensive because i use the best as flavour is very important ie:Mascapone/cream, Walnuts, free range eggs etc. People really love it and i have 4 chefs who swear by it. Nicola
  • nadiya said on September 29, 2012
    can a single person alone do a business of home made cakes as there is no one to help me. Mumbai Maharashtra India
  • himmii said on December 20, 2012
    i'm only 16 and in my last year in high school, i have a real passion when it comes to baking and designing cakes, i make some for my neighbors and friends, but i want to go really further and start a real business in cake decorating starting from home but i'm really stuck as to how to start it, please help thank you xx Luton, england
  • Ellie said on January 13, 2013
    I'm 15 and really want to open a cafe specializing in cakes and cupcakes when I'm older but seeing as though I'm so young I wanted to just start selling some from home I was just wondering if you had any advice on how to do this, thanks. Derbyshire England
  • hie himmii and ellie said on January 16, 2013
    I am also interested in starting a baking business. i approached princes trust and they have been very helpful, have a word with them and good luck. Derby
  • shalini said on February 26, 2013
    i am very interested in starting a cake business. i live in trichy in india. i want some details regarding how to go about it. do i need a license in india? i am a doctor by profession but i have a lot of free time in my present job.
  • Soumya said on April 5, 2013
    Hi I have finished wilton cake decorating courses, and I would like to sell homemade cakes and fake cakes. What are the requirements to do this? Do I need a working visa? Do I need some particular permissions or license to do this? Your advice will be very helpful. Thank you Soumya
  • Jayendra said on April 9, 2013
    Hello, liked ur tips on homemade cakes business. Me n my wife recently have started makin homemade cakes for our relatives n friends. I've made a facebook page named "Lee n Joy Cakes". Few photos of cakes r posted on it made by us. I appreciate if u pl. pl. go through it & give us ur expert comments @ my email id.
  • zinia said on July 4, 2013
    want to start a home made cake ,cookies and chocolate business in mumbai, what are the procedure i have to follow to make it legal.
  • Nams said on August 12, 2013
    Hi, I am from Kolkata, India. I am very much interested in cake business. Recently I have learnt basic course on cake making. I want to learn more developed courses in this business. Can you please guide me on this. Where I can do etc and what courses can be done? Also what are legal requirements if I want to start the business at my home?
  • wallyne rowley said on January 1, 2014
    are there free cake classes in prince George's county Maryland
  • Alessandra said on February 26, 2014
    Hi, is there someone who can give me some informations, about the legal requirement to start selling italian handmade cakes in Sydney? Thank you. Alessandra
  • Ntupang said on May 2, 2014
    Hi i've just started a baking business however I want to take it to the next level by learning how to bake cakes n to decorate them. I stay in Nelspruit (Mpumalanga)...please assist me
  • trishlaa mittalal said on June 8, 2014
    I have just started with the eggless cupcakes, cakes, chocolates and ice cream at home. Would like to sell it to a restaurant.
  • Althea said on July 5, 2014
    Hi, I come from three generations of bakers in the Caribbean and i am trying to launch my own rum cake business in New York, I am trying to find out if there any special rules or certificates for selling rum cakes. I am hoping to start at farmers markets and online any advise would be greatly appreciated. Thank you, Althea
  • Keira said on November 1, 2014
    I have been asked to supply a cafe with flapjack, scones and shortbread. I have costed how much it is to make them but don't know how much to add on to make a small profit. Any suggestions please, many thanks :-)
  • Narayan singh said on April 29, 2015
    Hi. i want start small bases cake shop I'm from India my place is Rishikesh so please help me and suggestion me Thanks.
  • Pamela Whelchel said on August 12, 2015
    Gaffney South Carolina United States
  • Pamela Whelchel said on August 12, 2015
    I want to sale my homemade cakes , but don't know what to charge. they are three layer cakes.
  • Muhammad said on August 25, 2015
    Hi there. We have running a good home baking business for about 3 years now and wish to go online to expand our client base please help me with your advice. I live in Namibia Katima Mulilo.
  • Rasha said on May 10, 2016
    Thank you so much, very helpful tips and suggestions, really appreciate it. I just started my homemade cakes business last week and have created a Facebook page and Instagram under name Rasha's HomeCake, and your tips for sure will help me. Thanks


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