Selling Baked Goods

If you enjoy making baked products at home and looking for a flexible side hustle that could also help you earn extra money, why not combine the two?

In fact, starting a food business selling baked goods can be quite a lucrative opportunity if you have the talent and passion for it.

In this guide, we’ll take a closer look at this unique side hustle along with its earning potential and startup costs.

An Overview of Selling Baked Goods: A Primer

Selling baked goods as a side hustle is growing in popularity for many reasons. It’s a perfect source of extra income for those who have a knack for baking and innovating in traditional recipes.

It’s also a relatively low-risk business to opt for if you’re on a tight budget, as you don’t need a complete bakery setup to venture into this business.

To get started, you’ll need to pick the type of baked goods you want to sell and where to sell them. This will give you an idea of the ingredients and tools necessary for the job.

Due to the demand for freshness in pastries, selling them on demand or through an established business is typically the best way to start.

How Much Can Selling Baked Goods Earn You?

While there is no official data to determine the earning potential of this side gig, we can have a relatively accurate estimate by checking out the available data.

According to a report by ZipRecruiter, the average cake baker working from home earns anywhere between $34,627 and $51,037.

Based on these numbers, you should expect selling homemade foods and baked goods to net you anywhere between $500 to $1,000 per month. However, your earnings from such a job still depend on various factors. These include:

• Your Marketing and Pricing Strategy: You need a solid marketing strategy to create a loyal customer base. Additionally, you should keep your rates relatively low to offer an edge over commercial alternatives.
• The Type of Baked Goods: This can affect your annual sales significantly. A good tip here is to Specialize in niche products, such as vegan cookies, birthday cakes, or wedding cakes.
• Location and Target Customer: Your location has a major impact on your average rates as well as competition.

How Much Does it Cost to Start a Selling Baked Goods Side Hustle?

The best thing about this gig is that you don’t need a lot of money to get started. In fact, you only need to buy the ingredients necessary for making the baked items, provided you already have the equipment.

However, as you advance, investing in your business becomes inevitable. This includes aspects like:

• Stocking up on ingredients and bulk purchases to increase profit margins.
• Upgrading your equipment and commercial kitchen tools to increase productivity and storage capacity.
• Designing and procuring proper packaging of your items, especially after establishing your bakery name.
• Investing in marketing and sales as well as venturing into new markets, such as online sales.

These delayed expenses could cost you up to $10,000. But luckily, you’ll only worry about them after making a real profit from your business.

You should also be aware of your local legal requirements and their costs. In most states, the local health department will regulate the process of selling food products commercially.

In that case, you’ll need to obtain a license that deducts some of your potential earnings. The cost of these licenses will vary depending on where you live.

As such, make sure that you check with local authorities about any documents you need to submit or obtain before selling food products.

Where Can You Sell Baked Goods?

Knowing where to sell your products and the best potential customers have a massive impact on the gig’s success.

The simplest method to sell your baked goods is by making them at home and delivering them to customers. You can do this by setting up an online account to take orders and discuss details.

However, selling your home-baked goods in coffee shops and grocery stores will net you higher profits than selling online.

You can also sell your baked goods in a variety of locations at the same place. These include fairs and festivals, local community centers, mall kiosks, physical shops, etc.

Why You Should Consider Selling Baked Goods As a Side Hustle

Here are some of the top advantages of selling baked goods as a side gig.

• Low Startup Costs: Besides a proper business license, you don’t really need much to get started in this business. This makes it perfect for low-budget starters.
• Rewards Creativity: Creating a unique pastry or dessert will give you a remarkable edge over the competition, even against established bakeries.
• Scalability: As your business and customer base grow, you can invest in your business and turn it into a fully-fledged brand.

Problems With Selling Baked Goods As a Side Hustle

Despite its advantages, selling baked goods has several drawbacks. Here’s a quick look at them:

• Perishable Items: The freshness window of baked goods is extremely limited, compared to other storage-friendly foods.
• Time and Effort Consuming: Many baking recipes involve time-consuming instructions, such as fermentation and chilling. This requires extra time management on your behalf.
• Costly Upgrades: While it costs practically nothing to start, advanced baking equipment can cost you a huge chunk of your initial profits.

Frequently Asked Questions