Start Your Home Bakery: Week 2(Business Basics)
Welcome to Week 2! If you completed Week 1, you've already done the hard part—you know your state's laws(you don't have to memorize them), you've picked your menu(remmeber just start with 3 of the 5 recipes int he guide), and you've perfected your recipes. That's huge!
This week is where things start to feel real. We're setting up the actual business side of your home bakery. By the end of this week, you'll have a name, pricing that actually makes you money, and a social media presence where people can find you and place orders.
Let's jump in!
Day 8-9: Choose Your Business Name and Create Basic Branding
Your business name doesn't have to be fancy or clever (though it can be!). It just needs to be memorable, available, and something you won't cringe at in six months. I changed my bakery name 3 times before I actually got up and running because I am TERRIBLE at making final decisions. If you are on the struggle bus for your name, head over to our SKOOL group and we can help.
Choosing your business name:
Brainstorm 5-10 name ideas
Think about:
- Your name + descriptive words (Sarah's Sweet Treats, Katie's Cookies)
- Your location (Riverside Bakery, Maple Street Sweets)
- What you specialize in (The Cookie Lady, Cupcake Corner)
- Something that reflects your style (Rustic Rise Bakery, Sugar & Spice Kitchen)
Keep it simple and clear
- People should be able to spell it easily
- It should give some idea of what you sell
- Avoid anything too cutesy that might not age well
- Make sure it's not too similar to existing businesses in your area
Check if the name is available
- Google it (is anyone else using it?)
- Check Instagram username availability
- Check Facebook page name availability
- Search your state's business registry (if you're registering as a business)
- Check to see if the domain is available in case you decide to start a website
If your top choice is taken, don't stress! Your second or third choice might end up being even better.
Create basic branding:
You don't need to hire a designer or spend a fortune. Simple and consistent beats fancy and all over the place.
Pick your colors (2-3 main colors)
- What vibe do you want? Warm and rustic? Bright and fun? Elegant and classic?
- Choose colors that look good together and represent your brand
- Examples: sage green + cream, pink + gold, navy + white, brown + coral
- Need help with this? Search Pinterest for color palette ideas
Consider creating a simple logo
- You can use Canva for free (they have tons of templates!)
- It can be as simple as your business name in a pretty font
- Or a simple icon (whisk, cupcake, mixing bowl) with your name
- Keep it clean and easy to read
- Something that looks great in black and white so its cheaper to print your logo
Pick your fonts
- Choose one font for your business name/logo
- Choose one font for everything else (captions, labels, etc.)
- Stick with these consistently
- If you use Canva, you can set up a Branding file so you can save all your fonts, color codes, logos, etc
Quick tip:
Your branding doesn't have to be perfect right now. You can always refine it later. The important thing is to pick something and stick with it long enough to build recognition. Changing your name and colors every few weeks just confuses people!
Day 10-11: Calculate Your Prices
This is where so many new bakers mess up. They underprice everything because they feel guilty charging “too much” for homemade goods. Then they end up working for $3 an hour and burning out fast.
Let's make sure that doesn't happen to you.
How to price correctly:
Step 1: Calculate ingredient costs for each item
Let's say you're pricing a dozen chocolate chip cookies.
- Flour, sugar, butter, eggs, chocolate chips, vanilla, etc.
- Add it ALL up
- Let's say it comes to $4.50 per dozen
Step 2: Add in packaging costs
- Cookie bag or box: $0.75
- Label: $0.10
- Ribbon or tissue paper: $0.15
- Total packaging: $1.00
Step 3: Factor in a portion of your overhead
This is stuff like:
- Electricity to run your oven
- Gas if you're delivering
- Cleaning supplies
- Wear and tear on equipment
For simplicity, add about 10-15% of your ingredient costs.
- $4.50 x 15% = $0.68
Step 4: Don't forget your time!
This is the part people skip, and it's the most important!
How long does it take to:
- Shop for ingredients
- Mix the dough
- Bake the cookies
- Package them
- Communicate with the customer
- Deliver or coordinate pick-up
Let's say it takes you 1 hour total. What's your time worth? At least $15/hour, right? (You'd make that working at most entry-level jobs!)
Step 5: Add a profit margin
This is typically 20-40% of your total costs. This money goes toward:
- Growing your business
- Buying better equipment
- Marketing
- Having a financial cushion
Let's add it all up for our dozen cookies:
- Ingredients: $4.50
- Packaging: $1.00
- Overhead: $0.68
- Your time (1 hour): $15.00
- Subtotal: $21.18
- Profit margin (30%): $6.35
- TOTAL: $27.53
So you'd charge around $27-30 per dozen cookies.
Does that feel too high?
I know it might feel expensive, but remember:
- You're not Walmart or a grocery store bakery
- You're offering fresh, homemade, quality products
- People are paying for your skill, your time, and the convenience
If someone balks at your prices, they're not your customer. The right customers will happily pay for quality!
Pricing different items:
Cupcakes:
- Usually $24-40 per dozen depending on your area and how fancy they are
- Custom decorated cupcakes can be $3-5 each
Cakes:
- 6-inch round cakes: $35-50
- 8-inch round cakes: $50-75
- 9×13 sheet cakes: $45-65
Cookies:
- $24-35 per dozen for regular cookies
- $36-48 per dozen for decorated sugar cookies
Brownies/bars:
- $20-30 per dozen
These are general ranges. Adjust based on your costs, your area, and what local competition charges.
Quick tip:
Don't compete on price. Compete on quality, flavor, and service. There will always be someone willing to go cheaper. That's not your lane!
Day 12-14: Set Up Your Online Presence
Even if you're just selling to friends and family at first, you need somewhere people can see what you offer and place orders.
The good news? You can start with completely free options!
Create your social media accounts:
Instagram Business Account
- Free and easy to set up
- Perfect for showcasing your baked goods (it's all visual!)
- Use your business name as your handle if it's available
- If not, try variations like @yournamebakery or @yournamecottage
Facebook Business Page
- Also free
- Older demographics often prefer Facebook
- Good for local community groups and events
- Make sure it's a business page, not a personal profile
Set up a simple way to take orders
- Could be as simple as Instagram DMs
- Google Forms (free and easy)
- Facebook Messenger
- Text messages
You don't need a fancy website or ordering system yet. Keep it simple!
Your first posts should include:
Introduce yourself and your bakery
- Tell your story briefly
- Why did you start baking?
- What makes your goods special?
- Keep it friendly and authentic
Post photos of your products
- Use natural light (near a window is perfect)
- Use a simple, clean background
- Show the product clearly
- Take LOTS of photos during your test baking to use
Share your menu with prices
- Make it crystal clear what you offer
- List prices for each item
- Be specific about sizes (dozen cookies, 6-inch cake, etc.)
- Canva has cute menu options in the templates
Explain how to place an order
- “DM me to place an order!”
- “Fill out this Google Form”
- “Text me at [number]”
- Whatever works for you
Set expectations
- How far in advance do people need to order? (I recommend allowing preorders 1 day a week and pickups/deliveries a separate day of the week)
- When are you available for pick-up/delivery?
- What areas do you deliver to?
- Do you offer local pick-up?
Content ideas for your first week:
- Behind-the-scenes photos of you baking
- Close-ups of your products
- Your business name announcement
- “Now taking orders for [this weekend]!”
- Customer testimonials (after you have some!)
- “Did you know?” facts about your ingredients or process
Quick tip:
Post consistently, but don't stress about posting every single day. 3-4 times a week is plenty when you're starting out. Quality over quantity!
Week 2 Wrap-Up: You're Building Something Real!
You made it through Week 2! Let's look at what you've accomplished:
- ✅ You have a business name and basic branding
- ✅ You've calculated prices that actually pay you fairly
- ✅ You have Instagram and Facebook pages ready to go
- ✅ You know how you'll take orders
- ✅ You've posted your menu and started building your presence
This is when it starts to feel real, right? You have an actual business now! It's not just an idea anymore—it's happening. And you are going to do amazing!
What's coming in Week 3?
Next week is all about getting physically ready to sell:
- Stocking up on ingredients and packaging supplies
- Creating systems to stay organized
- Setting up your order tracking
- Doing a full practice run(do a a soft launch for your first week)
We're getting close to actually selling!
Your homework before Week 3:
- If you haven't posted on social media yet, do it this weekend
- Finalize your pricing for all menu items
- Start a list of supplies you'll need to buy
- Tell at least 5 friends/family members about your new business
Questions?
What was the hardest part of this week for you? Choosing a name? Calculating prices? Drop a comment and let me know! Or head over to SKOOL and let the home bakery community help.
Ready for Week 3? Click here to continue with stocking up and getting ready to sell!
Missed Week 1? Go back and start with getting legal and choosing your menu!
This is part of my Start Your Home Bakery series. Following along week by week? Tag me in your posts with #CottageLawStartHere so I can cheer you on!
