How To Start A Home Bakery Business STEP-BY-STEP Starter Guide | Start A Food Business
Summary
TLDRIn this informative video, Wilson guides aspiring home bakers through the process of starting a home bakery business. He covers essential steps like understanding cottage food laws, identifying a target market, validating product demand, menu engineering, and crafting a strong brand identity. Wilson also emphasizes the importance of a strategic marketing plan, leveraging user-generated content, and creating a comprehensive business plan. The video is a valuable resource for those looking to turn their passion for baking into a profitable venture.
Takeaways
- 🍪 Start by researching cottage food laws to understand what type of food you can sell from home and any legal thresholds.
- 🎯 Identify your target market by understanding the problem your food product solves and who would benefit from it.
- 🔍 Check for demand by surveying potential customers and using platforms like Instagram and Pinterest to gauge trends.
- 📋 Engineer your menu starting with a few key products, focusing on a hero product and considering average order value.
- 🏷 Develop a strong brand identity that resonates with your target market, including a memorable name and logo.
- 🌐 Set up a user-friendly website and online shop using platforms like Square, which offers a tiered system without monthly fees.
- 📈 Create a marketing plan that leverages word of mouth, digital platforms, and user-generated content to reach your target audience.
- 📢 Utilize social media, especially Instagram and TikTok, for consistent branding and to increase your brand's discoverability.
- 💬 Encourage and utilize user-generated content (UGC) like reviews and social media posts to build trust and showcase your product.
- 📝 Compile all your strategies into a comprehensive business plan to provide clarity, guide execution, and attract potential investors or partners.
Q & A
What is the first step to starting a home bakery business according to the video?
-The first step is to research cottage food laws in your city or province, as these laws dictate what type of food you can sell, where you can sell it, and the maximum amount you can make before needing to comply with more stringent regulations.
Why is it important to identify your target market when starting a food business?
-Identifying your target market is crucial because it influences every aspect of your business, including branding, messaging, designs, product creation, and pricing. It helps you understand who you are serving and allows you to make educated decisions about your offerings.
How can you check if there is a demand for your product in the market?
-To check for market demand, you can look at trends on platforms like Instagram and Pinterest, survey potential customers within your target market, and gather feedback on aspects such as flavor, texture, price, and other preferences.
What does the video suggest as a starting point for creating a menu for your bakery?
-The video suggests starting with two to three products, focusing on a hero product that everyone loves, and offering a couple of variations or complementary items. This approach simplifies operations and allows for growth before complicating the menu with more options.
Why is it essential to consider operations when engineering your menu?
-Considering operations is essential because it affects the complexity of your production process, the number of ingredients you need to manage, and ultimately the cost. Simplifying operations can help keep costs down and ensure a smoother production flow.
How does the video recommend approaching branding for your home bakery?
-The video recommends having fun with the branding process, choosing a name that fits your personality and the brand image you want to build, and ensuring consistency across all online platforms to create a cohesive brand image.
What role does user-generated content (UGC) play in marketing a home bakery business?
-User-generated content is crucial as it provides social proof and helps build trust with potential customers. It includes reviews, social media posts, and any content created by customers that showcases their experience with your product.
What are the three main marketing channels suggested in the video for promoting a home bakery business?
-The three main marketing channels suggested are word of mouth, utilizing digital trends and platforms like social media and email marketing, and focusing on user-generated content to build social proof and brand credibility.
Why is creating a business plan important for a home bakery business?
-A business plan is important as it provides clarity, helps you consider all aspects of the business, and serves as a roadmap for execution. It is also useful for raising funds, finding partners, and ensuring you leave no stones unturned in your business strategy.
What is the purpose of the free master class mentioned in the video?
-The free master class is designed to provide in-depth training on turning a food idea into a profitable business. It offers actionable insights and strategies to help individuals successfully launch and grow their home bakery business.
Outlines
🍪 Starting a Home Bakery Business
The paragraph introduces the idea of turning a passion for baking cookies into a business by creating a home bakery. It encourages viewers to watch the video for a step-by-step guide on how to start. The speaker, Wilson, positions himself as a guide for building small and profitable food businesses. He mentions the importance of engaging with the audience through likes and shares personal experiences about the challenges home bakers face, such as lack of confidence and knowledge on where to begin. The paragraph emphasizes the need to research local cottage food laws, which dictate what type of food can be sold and how much can be made before requiring a commercial kitchen. It also touches on the common practice of ignoring these laws to test market demand before investing in a commercial space.
🎯 Identifying Your Target Market
This section focuses on the importance of identifying the target market for the bakery products. It stresses that creating food based solely on personal preferences is not a sustainable business strategy. Instead, the speaker advises identifying a problem that the food item can solve, thus positioning the product as a solution to a specific need. The paragraph gives an example of creating vegan cookies to cater to the市场需求. It also underlines the significance of understanding the target market's demographics and preferences to inform branding, messaging, product design, and pricing strategies.
🔍 Checking for Market Demand
The paragraph emphasizes the necessity of validating the demand for the product before launching a business. It cautions against assuming that a product is marketable just because it is enjoyed by a few people. The speaker suggests using social media platforms like Instagram and Pinterest to gauge current food trends and conducting surveys within assumed target markets to gather insights on preferences, pricing, and potential improvements. The paragraph also promotes a free master class for further guidance on turning a food idea into a profitable business within 60 days.
📚 Engineering Your Menu
This part of the script discusses the process of creating a menu for the home bakery. It advises starting with a few products, identifying a 'hero' product, and offering variations to support it. The focus is on simplifying operations and avoiding overcomplication with too many ingredients or flavors. The paragraph also mentions strategies to increase the average order value, such as offering products in gift boxes. The importance of considering operational efficiency and being open to feedback for continuous improvement is highlighted, as well as the iterative nature of menu development through trial and error.
🎨 Branding Your Bakery
The paragraph delves into the branding process for the home bakery, emphasizing the fun and creative aspects of naming and logo design. It suggests using online platforms like Fiverr and Upwork to find designers and recommends using NameCheck.com to ensure brand names are available across social media platforms. The speaker also discusses the importance of creating a cohesive brand image across all online platforms and the collective impact of all online presence on branding. The paragraph concludes with a call to action for viewers to like the video to support the creation of more content.
📈 Creating a Marketing Plan
This section outlines the importance of having a strategic marketing plan for the home bakery. It highlights the need to be intentional and strategic in reaching the target market, rather than relying on word-of-mouth alone. The paragraph suggests focusing on three main marketing channels: word of mouth, digital trends and platforms, and user-generated content (UGC). It stresses the importance of engaging with the community, utilizing mobile-responsive websites, email marketing, and social media platforms like Instagram and TikTok. The paragraph also discusses the significance of UGC and how to leverage it for business growth.
📝 Finalizing with a Business Plan
The final paragraph wraps up the video script by emphasizing the importance of compiling all the discussed elements into a comprehensive business plan. It serves not only as a tool for raising funds and finding partners but also as a guide for executing the business strategy. The speaker highlights that a business plan provides clarity, ensures all aspects of the business are considered, and helps in avoiding oversights. The paragraph concludes with an invitation to join a free master class for in-depth training on turning a food idea into a profitable business and encourages viewers to leave questions in the comment section.
Mindmap
Keywords
💡Home Bakery
💡Cottage Food Laws
💡Target Market
💡Demand
💡Menu Engineering
💡Branding
💡Marketing Plan
💡User-Generated Content (UGC)
💡Business Plan
💡Master Class
Highlights
Starting a home bakery business is possible with passion and a step-by-step process.
Research local cottage food laws to understand what food items can be sold from home.
Some bakers ignore laws initially to test product demand before formalizing their business.
Identifying a target market is crucial for any food business to address specific needs.
Creating a solution to a problem through your food product is key to identifying your target market.
Checking for demand involves using social media platforms and conducting surveys.
Menu engineering starts with a few products, focusing on a hero product and variations.
Considerations for menu offerings include operational simplicity and trial and error for improvement.
Branding is not just a logo but the collective online presence that makes customers feel a certain way.
Use tools like namecheck.com to ensure your brand name is available across social media platforms.
Websites like fiverr.com and upwork.com can be used to find designers for your logo and branding.
Square is recommended for setting up a user-friendly website and online shop.
A cohesive brand image across all online platforms is essential for brand recognition.
Creating a marketing plan is vital for strategic and intentional business growth.
Word of mouth, digital trends, and user-generated content are key marketing strategies.
Encouraging user-generated content through reviews and social media engagement is important.
A business plan is essential for clarity, attracting partners, and securing investment.
The video offers a free master class for in-depth training on turning a food idea into a profitable business.
Transcripts
does anyone tell you that you make
really good cookies if they have and if
you want to make it a business then you
should definitely watch this video
because in this video i'm going to be
sharing with you the step-by-step
process in creating your home bakery so
that way you can actually create
something of your passion make sure you
guys keep watching hello friends my name
is wilson your friend in helping you
build a thriving small business and a
profitable food business if you enjoy
videos that teaches you on how you can
build your own dream restaurant your
dream business to make sure you guys
smash the like button that shows me this
is the type of content you enjoy and we
will create more of this for you so go
ahead and smash that like button right
now
you might be like a lot of people out
there that you bake some very good
cookies make some very good food that
your co-workers your family your spouse
tells you how great you are tells you
that there's nothing on the market that
matches what you sell and that you
should start your own bakery but the
problem is that you just don't have the
confidence to take that plunge to start
your very own full-fledged bakery or you
just don't know where to start and these
are the common obstacles that i see a
lot of great home bakers have and that's
reason why you have to watch this video
because i'm sharing with you the
step-by-step process in creating your
own home bakery business from scratch
let's dive right in first question can i
start the business at home yes you can
go and look out cottage food laws the
college food laws indicates what type of
food you can sell where you can sell
these food and the maximum threshold of
how much you can make before triggering
the laws out there so that's reason why
in short you can sell food at home
now as a big big big big disclaimer you
must do the research in your own city
within different cities different
provinces they have different cottage
food laws laws that is applicable so
definitely what you want to do is to go
on google type in your city type in
cottage food laws and you're going to be
able to see the different regulations
and the different items that you should
be aware of
another disclaimer with you is that i
often see a lot of people they
completely ignore the cottage food laws
as well and they just start selling food
from the comfort of their own home
why are they doing that well you know
what they're doing it because they're
just starting out and they want to test
whether there is a demand for their
product and once again i'm not promoting
this but i'm sharing with you what i see
people do and once they have
proven there's a demand for their
product they would go out and rent a
ghost kitchen so then that way they can
have the proper protocols to move ahead
once again i'm not promoting this i'm
just sharing what i know in the space
with you the second step is to figure
out your target market so many times we
create food that we enjoy and we just
throw it out there hope for the best but
that's not how food business works
that's not how any types of business
work we must identify a problem
and we are providing a solution with our
food item to that problem that's what
we're doing
our food business is a solution to
someone else's problem and oftentimes we
scratch our own edge we create a
solution to a problem that we have as an
example let's say i'm vegan and i love
sweet food so that's the reason why i'm
out on a hunt for some very delicious
vegan cookies but then i can't find any
and that's the reason why i go in my
kitchen and i start creating these very
delicious
yet healthy vegan cookies now because
you made a ton of vegan cookies you
share with your friends and family and
it just so happens your friend is also
vegan and also loves sweet
cookies
now you have identified a problem in the
marketplace and you have provided a
solution
that's what we want to do and that's how
you identify your target market by
providing a solution to someone's
problem and it is essential i repeat it
is essential for you to identify your
target market because it influences
everything that you do everything from
your branding to your messaging to your
designs to the product that you make to
the pricing all of this plays into the
role of who it is that you're trying to
serve and we need to make our judgment
and profile these target market where do
they live what do they do what is their
medium income what do they enjoy doing
on their off times by us identifying
everything about this target market what
can we do now we can make educated
decisions on the pricing marketing and
the product selection as well this is
why target market is super important the
third step is to check for demand
remember i was saying hey you know what
you make some really good cookies and
your friend loves it as well doesn't
mean there's a business there we must
check whether there is a demand for that
product
so why is it super important to check
for demand as well while you don't want
to sell food only tailored to you and
your friend or selling food that you
yourself enjoy making assumptions on
what the market is wanting we don't want
to do that
we must be able to position ourselves to
create food that a lot of people are
wanting and that we can make that we can
provide the solution to as well that's
how you get people to buy from you
that's how you we're gonna have a
booming business
so how do you know if your product is
popular is in demand well first of all
check instagram check
pinterest these are the two big biggest
platforms out there that shows you what
is in trend what is people demanding now
that you have a big overall idea of
whether it has demand or not then start
surveying people that you assume are
your target market as a same example
let's say you really want to be able to
build your vegan cookie business and
sell online what are you going to do
find online
vegan communities or in person
communities and start surveying them ask
them what flavor they want what texture
they're looking for what price are they
willing to pay what do they hate about
your vegan cookies what other flavors do
they want from you this gives you so
much insight of how you can create this
business specifically catered to your
target market and if you're stuck trying
to validate your market trying to figure
out whether it's the man product for
your item
or if you just want to learn how you can
build a proper and profitable food
business then definitely check out our
free master class in the link below
where i share with you how you can turn
your food idea into a profitable food
business in less than 60 days definitely
check it out in the link below
fourth step is to engineer your menu now
you're figured out there's demand now
you figured out the target market now it
is time for you to create your menu now
before diving into the complication of
menu engineering
to start off start with two to three
products figure out what your hero
product is that everyone loves and have
two or three different variations
whether it's an alternative or a
complementary item for in support of
your hero item the reason why is because
we do not want to mess up our operations
we don't want to buy 10 different
ingredients just to make 10 different
flavors when we're only selling one item
we don't want that we want to simplify
the process and we want to make this as
easy as possible for us to grow a solid
brand before we get into the complicated
things some other options for you to
consider is the average order value
let's say if you're selling vegan
cookies again
you wouldn't want to sell one cookie for
three dollars and that's the reason why
you must consider
the quantities that you're offering
whether selling it as a gift box of 6 of
12 or 18
that would bring your average order
value up and that allows you for every
order that comes through makes it more
worthwhile for you to actually do the
work
two things that you must consider when
deciding your manual offering first of
all it is operations operations
operations it's super important and a
lot of people neglect this because once
again they offer tons of
variations tons of different flavors
with more variations more flavors more
ingredients more ingredients more cost
we don't want that we want to do things
right and have one hero product done
very well and the second thing is trial
and error when we're doing our menu
engineering it is all about trial and
error it is all about figuring out what
works what doesn't work and we must
always have our years open willing to
listen to constructive feedback if
people are telling you that the size is
too small if people are telling you the
taste is not that good don't take it to
heart take it as constructive criticism
improve upon that that's how you can
improve and create a product that people
will love
the fifth part is the fun stuff it is to
start your branding this is where all
the fun stuff begins okay we have done
all the leg work already now it is time
to choose a name that fits into your
personality a brand that fits into what
you're trying to build whether it's
vegan cookies then you can call yourself
vegan monsters have fun with this
process
use
namecheck.com for you to see whether
your name is taken on instagram on
twitter on facebook choose a name that
you can actually create a handle with so
then that way you're not gonna have the
trouble of going through multiple
different accounts trying to figure out
whether the domain the name the handle
is taken by other people after you
grabbed all your handles from instagram
take talk all the good stuff it is time
to create your logo if you don't have an
in-house designer or friend that is
doing design then go online to find a
designer super convenient nowadays these
are the two websites that we utilize all
the time one is fiverr.com one is
upwork.com put your posting out to find
your designer to create your logo for
you next up is to set up your website
and online shop how do you do that i
recommend using square because it's easy
to use and it's super user friendly even
for your physical store if you have a
pos system or if you just want to create
a website their store creator is also
super simple to use and best of all
their system is on a tiered level system
that means no monthly fee and you can
actually subscribe as your volume
increases
and if you guys are interested then
definitely check out square in the link
below they're not a sponsor of this
video however i do get a small
commission from this if you use them and
i only recommend you using them because
i love it i myself use it and the
commission that i'm going to use i'm
just going to create more of these
videos for you so definitely if you guys
are wanting to create a website and
looking for a shop then definitely check
it out in the link below and the biggest
takeaway with branding guys is really
how you make other people feel okay and
how you make people feel is not just by
the first impression it is by multiple
different
occasions just like people interacting
with your brand when they land on your
website when they go on your instagram
when they go on the review sites
you need to be cohesive with the
branding on all these fronts so then
that way you come across as a certain
image and that's reason why branding is
so important and it is also very much
mistaken by a lot of people because they
just think it's a logo no it's about the
collective of everything that you have
online so make sure you guys pay
attention to this and guys if you guys
find any value whatsoever with the video
so far make sure you guys support us by
hitting that like button that's the only
thing i ask for hit that like button so
we know this is the content you enjoy so
we make more of these for you go ahead
smash the like button let's carry on
next step is to create a marketing plan
super important guys now that you've
figured out your target market you
figured out your product you figured out
who and where you're selling it to the
branding everything is done how are you
going to get the word out there be
intentional with this guys be
strategical with this have a plan right
from the get-go and don't just wing it
last thing we want to do is just
continue to run in this rat circle grad
circle would just go around and around
and around thinking we're making
progress taking what other people are
doing and not being strategical with it
seeing what this works bring it into our
place seeing this works bringing it into
our place and really at the end of the
day we're just running in circles with
no progress
whereas if you have a plan right from
the get-go a timeline you're able to set
yourself up for a certain standard
now
you can work with purpose and you're
going to be able to see progress as you
move forward three main channels that
i'd like you to focus on initially for
your marketing plan first of all it is
word of mouth it is what people say
about your brand oftentimes what other
people have to say about you carry so
much more weight than what you have to
say about yourself that's the reason why
word of mouth marketing is always the
number one choice and on top of that it
is completely free to do so how do you
do that engage with your community
listen to the feedback talk to them
figure out what is it that they're
wanting what is it that they do not
enjoy so then that way you can make the
improvements and when they see that you
care about your business when they see
that you're passionate about your
business then they're going to refer you
recommend you to other people that would
love your product as well
second marketing tactic is to utilize
digital trends and platforms now i
talked about this a little bit earlier
but let's dive in a little bit deeper
first of all your website when you're
utilizing your website it must be mobile
responsive what does that mean that
means that your website would appear
beautifully on your phone because more
than 50 percent of people that visit
your site they are using the cell phone
so make sure your website is mobile
responsive on top of that your website
we need to capture people's attention
and we need to capture people's info
therefore have a pop-up to capture
people's info
give them a deal give them 10 off in
exchange for you to capture their email
after you capture their email what are
you going to do with it email marketing
talk to your customers on the monthly
basis weekly basis whatever the cadence
that you can actually do consistently
guys make sure you develop this
relationship communicate with them back
and forth back and forth this is how you
can grow a loyal fan base now i talked a
lot about website definitely if you guys
haven't check out square that's how you
can create the mobile website and on top
of that allows you to capture people's
emails
next up is for you to utilize social
media platforms two biggest ones that
you should look into right now instagram
and tick tock their reach is just
unbelievable as long as you're
consistent and as long as you create
good content your stuff will be spread
out and will be found so make sure you
guys definitely check out these two
platforms this allows your brand to be
discovered so more people can come and
purchase from you
third marketing strategy is for you to
obsess with your ugc what is ugc user
generated content whether it's people
enjoying your meal enjoying your food
whether it's people sharing hashtags of
your product whether it's people leaving
a review these are all user generated
content according to a study more than
45 of the people they would actually
check your reviews on review sites like
yelp before deciding whether to purchase
from you or not this just shows how
important these ugc really are and why
you should really pay attention to them
so what does that mean a lot of us we
have tons of people talking about us but
we don't know when we don't utilize it
well enough how do we do it plant these
ugc on your website share it with people
through email put it on your social
media do not
overlook how important these assets are
for your brand so the big question
really is how do you get ugc how do you
get these proof well
make sure you ask
if you don't ask you'll never get and
that's reason why i always ask you to
smash the like button because
it actually statistically is proven that
if i ask and when i ask you're actually
going to be more much more likely to
smash that like button so go ahead smash
that like button and go ahead and ask
your customers for reviews ask your
customers to take pictures and share
online to put hashtags so you can
actually retrieve and see what people
are posting online
capture it and then for you to republish
it on your own platforms that's how we
can encourage people to gather ugc more
advanced ways of gathering ugc work with
influencers do collaborations reach out
to different publications so then that
way you can utilize all these assets as
ugc for your own home bakery there you
go friends last step is to put it all
put this whole crazy thing into a
business plan i just shared with you the
roadmap for you to create your own home
bakery what do you do now you package it
in the business plan so then that way
you can show it to investors your
partners and it also is a great outline
for yourself to execute
now you bring this business plan to go
and raise funds now you go and find your
dream partner now you can do this at
ease
and the most important thing about
business plan guys is not just finding
the right partners it's not just raising
funds it is really to allow you to have
clarity in your business it is for you
to leave no stones unturned it is for
you to have this thought exercise to
consider things that you might just not
think about before whether it's your
finances whether it's the marketing plan
whether it's the location whether it is
your product or who it is that you're
serving all these things
comes into play when building a business
yes it's a lot but
following this video
you're going to be able to actually put
all these things together and make this
process a lot simpler so go ahead
re-watch this video save this video as
your resource as you're building out
your business plan now i went through a
lot of things in this short period of
time and there's no way i can cover
everything with you in detail
but if you're serious about building
your own home bakery business and if you
don't know where to start and if you
want more in-depth training on how you
can turn your food idea into a
profitable food business then i invite
you to join our free master class in the
link below this is over an hour long of
free content for you of nuggets on how
you can actually do something and turn
your passion into a business that you're
going to be proud of definitely check it
out in the link below and i will see you
guys in the training once again i hope
you enjoyed this video we put in a lot
of effort to create this for you because
we want you to be successful we want you
to create something that you truly are
proud of owning and i'm there for you so
if you have any questions leave it in
the comment section below i will see you
guys in the next video
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