Make Money Baking – Everything you need to know

Kamal Khurana


15th Aug 2023

Reading Time: 16 minutes

Do you have all the skills to bake delicious and tasty cakes? Then you could make money baking.

Take a look at our guide for starting up a baking business below:

Carbootjunction. Once you’re more established, you might consider going a little more upmarket. Although if you have cracked the car boot market, you could also simply increase the number of cakes you take with you. Letting your business grow that way.

To set up a stall at a farmers’ market, you need to find one local to you. You can do this by searching Facebook or the Local Foods website for your nearest market.

Keep on top of your finances

• Put money aside for your forthcoming tax bill.
• If you can, speak to an accountant about how much you should put aside for tax.
• However if you’re just starting up, you probably won’t have to pay VAT.
• Keep good records of your incoming and outgoing revenues, your receipts and other related information. Again if you speak to an accountant they will give you guidance on what files to keep, how to organise them and what to do to keep your accountancy bills down.
• Accountants too expensive? Though a good accountant is invaluable, you don’t necessarily need one when you’re first starting out. Plenty of people do their own accounts on paper or using an Excel spreadsheet.

 

For more ideas about how to present and sell hampers see our article here.

 

BBC Food website has easy-to-follow hot cross bun, Easter biscuit and simnel cake recipes.

To find out how to make chocolate nest cakes visit cakebaker.co.uk. Another particularly good collection of Easter cake recipes can be found here.

Christmas baking ideas

Christmas cakes can come in all different shapes and sizes. A Snowman topped with a delicious layer of snowy buttercream icing. A Christmas tree with green icing and hundred and thousands for decorations. Or something more traditional like a rounded fruit cake. Fruit cakes are very seasonal but they cost a lot to make. Will you be able to make enough of a profit on them?  Whichever way you choose to go, make sure you’re original.

Biscuits are also great for Christmas. Buy a cutter set and make biscuits in the shape of trees and snowflakes, then add some colourful icing and a few silver balls. You could put your biscuits in a simple see through bags with a nice ribbon so they can hang from the tree. This way they can act as a decoration as well as a tasty Christmas treat.

Birthday cakes

Birthday cakes are great because people have birthdays all year round so there is sure to be a demand for your services if your price is right. With birthday cakes people will usually ask for a specific cake, maybe a Spider-Man cake or in the shape of a number.

This is a great time to experiment with food colouring, icing options and build up your portfolio. If someone asks for something you don’t think you can handle, though, don’t take it on just because they are offering you their money. Make sure you have the skills to create what your customer is asking for.

Special occasions

There are so many special occasions that could be used as an opportunity to offer your baking services, including baby showers, retirement parties, graduations, weddings and many more.

 

Finally, remember to have fun…

Running a business should be creative, satisfying and enjoyable. It’s a chance to express yourself, meet interesting and creative people, and potentially make a lot of money. So enjoy the process of being in business. And make the most of the good times.

When you get a big contract or when you complete a difficult task remember to celebrate!

To inspire you to get started with your baking business we have two real life case studies of how you can turn your hobby into a fully functioning money-making business. Both case studies were self-taught bakers! See below:

 

Case study: Whitney Hurst – Lazy Day Cakes

Whitney Hurst started selling cakes from her kitchen in 2012. Before she knew it she had a load of orders and decided to set up her own shop, Lazy Day Cakes. Recently she decided to sell up to pursue her dream of becoming a midwife. Below Whitney tells us about her success and experience of selling cakes.

When and why did you start selling cakes?

“In 2012 I fractured my spine in a gym accident. After months being bedbound and unable to work I was finally able to shuffle round my kitchen and that’s when I started baking. I had made my kids birthday cakes in the past but I got started on cupcakes. I was making 30+ a day and that’s when I decided to make a website to see what happened. Amazingly within a few days I had orders.”

What was your first professional baking job?

“I started by going to craft fairs and ladies’ nights. It didn’t take long to realise that ladies love cakes but also are very conscious of them being a treat so I came up with a new recipe that reduced the fat content if the cakes by 50% that’s when things started to go mental.”

How did you go about promoting yourself in the wider community?

“My only form of advertising was Facebook. I just put up lots and lots of pictures and that’s when the word started to spread. I was very lucky because people not only liked the look of the cakes but the taste was a win too. Quite often with cupcakes they look great but the taste isn’t always up to scratch.”

How long did it take to get you established?

“It took probably six months of events such as craft fairs before we started getting recognised.”

Did you initially work from home and then go on to get a shop?

“I did the cakes from home for 12 months doing the craft fairs, farmers’ markets and ladies’ nights. In June 2013, I opened the first shop where I had just four tables and a serving counter.  I was still baking everything at home and transporting the cakes to the shop daily. In October 2013, I moved into a shop three times the size where I had a full bakery and a much larger cafe area.”

Did you have any professional training?

“No. I am totally self-taught.”

How did you set yourself apart from similar businesses around your area?

“There were two other local business that were similar. What made us different was that having four kids we were so child-friendly that people with kids wanted to come just so that they didn’t have to worry about messy children. Our workshops and parties were priced reasonably because the rent overheads were relatively low. The other business that offered just workshops was really expensive because of its city centre location, and the other just did parties whereas we did both and had a tearoom.”

Why did you end up selling?

“I wanted to pursue my passion of becoming a midwife and now that I have the support from my fiancé Ian, to go back to university I decided to enroll. I decided juggling the business and my studies wasn’t a possibility and closing the shop wasn’t really an option – considering how successful it was – so I decided to sell.”

Whitney’s advice to those wanting to make baking a full time career…

“My advice to anyone wanting to set up a cake business is trust your abilities. It’s very difficult to compete with supermarket prices but they’re full of chemicals and made in machines. Don’t sell yourself short, work out how much the ingredients cost, how long it’ll take you to make the cake and add your time and at least minimum wage.”

 

Case study: Tarek Malouf –  The Hummingbird Bakery

Tarek Malouf was working at ABC News in London before he decided to start a bakery business in 2002. Following two years of researching and testing recipes, his first bakery opened its doors for business in early 2004. Below Tarek tells us about his journey to success and future plans for expansion.

When and why did you start selling cakes? 

“The idea of setting up a bakery came to me in early 2002. I was visiting a relative in North Carolina who took me to several traditional American bakeries that served pies and homemade cakes. The smell of fresh baking in these places was amazing. During that time, my sister was living in New York, and we used to go and eat lots of cupcakes and traditional American goodies every time I’d visit her. Taste buds awoken, it was then that I realised I wanted to open my own bakery in London so that people here could enjoy the authentic taste of American baking.”

How did you go about promoting yourself in the wider community?

“Our launch was not promoted in any way. I tried to choose a location for my first branch that had plenty of American expats living close by, as well as a lot of passing foot-traffic. I thought that if we could attract the Americans wanting a taste of home, then we’d start off with a decent customer base. This worked – a very large proportion of our initial customers were American. And after we opened the doors and let the smells of fresh baking waft out onto the street we soon started selling cupcakes to everyone who walked by.”

What was your first professional baking job?

“Prior to first opening The Hummingbird Bakery, I spent two years testing and refining countless recipes in my kitchen at home. Other than this, however, I had no real baking experience. I’d grown up with a great appreciation for the delights of American baking so I did at least have a very clear idea of how I wanted The Hummingbird Bakery’s products to taste. So really, my first professional baking job was in my Notting Hill branch.”

How long did it take to get you established?

“Prior to opening my first bakery, I did do a couple of private cake commissions for friends but this was in no way how I launched. Having fitted out, equipped and opened the doors to my first branch, the business got itself established very quickly. Within a few weeks of launching, word quickly got around that we were baking delicious cakes and business began to grow rapidly.”

Did you have any professional training?

“I have no professional training in baking other than that which I’ve gained from working in my own bakery.”

How did you set yourself apart from similar businesses around your area?

“Initially, we were in the fortunate position of being able to get the business off the ground with no real competitors – there certainly wasn’t anywhere else in London that specialised in quality American baking. Of course, as soon as cupcakes caught on, other cupcake bakeries did quickly pop-up. We have always differentiated ourselves on the quality and authenticity of our products. Another thing we do is bake on site at each of our branches throughout the day to ensure the complete freshness of our products. We also only source quality ingredients – real butter, jams and preserves from Tiptree, free range British eggs, cream cheese from Philadelphia and so on.”

What does the future hold?

“I plan to grow the business here in UK by opening further branches within and around London. I’m also looking at opportunities to open branches in other UK cities. We have franchise partners in the Middle East who have already launched three Hummingbird Bakery branches in Dubai.”