How to set up a bakery business

How to start a bakery business from home in the UK

1. Research and plan your bakery business

When it comes to starting a home bakery business, coming up with a research strategy is one of the key steps to success. In this case, you’ll want to look into the most popular brands of home baked goods and local competitors as well as assess the demand in the area for a bakery business. Don’t be afraid to experiment at the beginning, starting small and simple to figure out what works best for you. Some things to consider before you start:

• What types of baked goods will you sell? Bread, cakes, pastries or perhaps specialty items such as gluten-free or vegan treats? It would be best to focus on one or two signature products first since you can expand and branch out over time.
• Who is your target customer? Are you catering to individuals, events or businesses? Is there a gap in the market you can take advantage of?
• How should you price your products? Pricing your baked goods correctly is important to making a profit. You’ll need to research competitor pricing and maybe perform your own market research by asking for feedback when selling for the first few times.

2. Deciding where to sell your baked goods

There are many different ways you can choose to sell your baked goods, so consider which would be the best option for you:

• At markets or events as a stallholder – Selling at local markets or food festivals is a fantastic way to build a loyal customer base and get real-time feedback on your products. To sell at markets in the UK, you might need a street trading licence, stallholders insurance to protect yourself against liability claims, as well as a reliable setup, including display equipment and proper food storage.
• Online bakery store – You can sell your baked goods online through your own website with an ecommerce store, through online marketplaces like Etsy or even on social media platforms such as Facebook, Instagram or TikTok. Make sure to follow food labelling regulations, including allergen information when selling online as well as having a good system to deliver or ship your products.
• Supplying cafes, restaurants or retailers – Another option is to pitch your products and partner with local cafes, delis and farm shops to provide them with fresh baked goods.

3. Register your home bakery

If you’re setting up a bakery business from home in the UK, you must register as a food business with your local authority at least 28 days before you start trading. Additionally, you’ll need food hygiene training and certification, a business registration as a sole trader or limited company with HMRC and insurance, such as stallholders insurance or public liability insurance if you are selling your baked goods at an event such as a festival or fete.

4. Market your bakery business

When you’re ready to start selling your baked goods, attracting customers to buy your products and marketing your brand will be essential. Making an aesthetic logo and attractive packaging isn’t just a creative decision – you should be aiming to stand out by creating a strong brand image that leaves a lasting and memorable impression on new customers. In today’s digital world, using social media is so important. Share your photos, videos and promotions to show off your products in order to reach potential customers and create an online presence. When attending community events or markets, you can even offer samples to entice passersby to try out your baked goods.

5. Get the right insurance for your bakery business

If you’re planning to sell your baked goods at an event such as a market, fair or festival, having the right insurance is essential. Stallholders insurance covers you for several protections under our stallholders policy:

• Stallholder public liability insurance – Covers accidental bodily injury to members of the public or accidental damage to third party property.
• Employers liability insurance – Covers the expenses which arise from the result of an injury to anyone you employ at your event, whether they are paid or volunteers.
• Event equipment insurance – Covers accidental damage, loss or theft of for the stock, stand and additional event equipment you are legally responsible for during the event.

Speak to Event Insurance Services today!

At Event Insurance Services, we offer comprehensive stallholders insurance policies for anyone running a bakery business who sells their goods at events, marketplaces or festivals. Find the right stallholders insurance for you or contact us today to secure your bakery business and start selling delicious baked goods without worries!