So you’re starting a home baking business? First things first, congratulations are in order!
Making the step to start a home baking business is exciting, challenging, but so rewarding. You’re embarking on a journey - I know that sounds cliche, but it’s completely true.
When you start a home bakery, you go through a series of versions of it. The first version is going to be a rough slate, look at it as your draft or trial version. You’ll try a few things, and some of those will stick, others won’t. One of the biggest mistakes new bakers make is trying too much - trying to make things stick faster by spraying as many ideas as possible. This spray tactic can have the opposite effect you’re seeking and confuse potential customers and blur you in the crowd of other bakers.
But, a quick way to pass through this rougher version is to jump a few steps ahead and identify a niche. Not only does this set you apart, but it allows you to hone your focus and skills into a specific areas.
Let me be your guide will walk you through the process of identifying your own home bakery niche. Imagine me as your faithful friend asking you the important questions to help you figure it out.
What’s your favorite thing to bake?
It seems simple, but this question is a great place to start. What do you like to bake? If you don’t like baking it, you shouldn’t be. Easy as that.
Make a list of things you like to make and things you don’t. Next, try to categorize them together. Are they cakes? Are they cookies? What kind of each? Is there more of one category than another?
What do you make best?
There may be some crossover from the above, but be honest with yourself. Consider a few different factors such as taste, texture, and visual presentation.
Are your finished products of the bakes something you would buy if you saw them in a window?
If not, but you’d like them to be, make a note and some comments on what needs to be improved and if you’re willing to put in the work to make them better. Evaluate your skills and if they’re not up to standard, they shouldn’t be on your menu - at least not yet.
Research the market
This one may take a little more time, but not as much as you think. After you’ve combined the two lists from above and narrowed your bakery items down to a few different ones, start doing a little market research. Start googling some of these items such as ‘cookie cakes near me’ or ‘sourdough near me’ and see how you compare. Look on facebook marketplace listings, check local groups, and see what the competition is like and maybe where there are some gaps in the market.
Note: you will see competition and this is OKAY, it’s normal.
See a ton of sourdough bakers? That’s okay, see exactly what THEY are offering. How can you make your bread and customer offerings different. Do you have a cultural influence? Signature bakes?
Don’t see anyone offering doughnuts in your area? Nice!
Another note, even if there is a professional bakery in your area, that is okay. The same rules and standards apply, understand your community’s needs, see where you can differentiate, and consider your branding and how you can develop a persona custom to your home bakery.
Who are you selling to?
This question is one of, if not the most important. Who are you planning to bake for? If you’re looking to bake for other people for farmer’s markets or individual sales, that’s great.
Are you looking to bake for businesses? What kind? What do your cottage laws state about that?
Are you looking to bake for events? What kind of events? Where?
Create personas for customers that you want to sell to and then match up from the lists above what you would be selling to them.
Okay, what’s the cost of running a home bakery?
After doing these analyses of your ideal customers, competition, baked goods, and preferences, you need to get down to the nitty gritty. What is this going to cost you? Do you need more equipment? Do you have the funds to operate at the scale you’re looking for? Will you be able to bake what you need to in a home kitchen or will you need a commercial space? What are your laws? What is the long-term viability of running this type of bakery?
Calculating these questions will likely take some number crunching, but they should guide you to a reasonable and clear answer.
Test and refine
After all of the amazing work you’ve done to narrow down your home bakery niche, it’s time to start testing, refining, and identifying your final microbakery niche.
Start small with a few trusted family and friends you know will give you honest feedback, then branch out. Reach out in a local Facebook group or other platform for taste testers.
You could put together an evaluation sheet or a collection of questions to be answered in exchange for free finished products. Then, when you receive the feedback, take it to heart. It’s okay if some of it isn’t what you were hoping or expecting, but it will be what you need to help your brand and bakery excel in the long run.
Choosing your bakery niche
Congratulations are in order yet again, you’ve gone through a series of pretty intense steps to choose a niche that works for your bakery and will hopefully lead you to success. You’ve aligned your personal baking passions, strengths, and weaknesses with the market demand and needs. You’ve made hard choices and sacrifices and exercised patience to do what works well first, and taken feedback to heart. You’ve worked hard.
And as I mentioned, your home bakery will take on new faces and continue to evolve. Evolution is good - growth is good. Continue to be flexible and open to changes as customer feedback, the market, and you as a baker changes and comes in. As your home bakery continues to become more established, you’ll be able to try more and more new things and test a solid customer base.
A well-chosen home bakery niche will provide you with that base and years of success to come.
Again, welcome to the microbakery world, and the Tiny Oven Club. Join us here for all types of resources, guides, courses, and more. We’re in this together.
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