How to Transition from a Baking Hobby to Baking Business - 5 Golden Rules
Going from “hobby” baker to “business” baker is something of a mystery, and can go badly if not taken seriously.
Most of us enter into a “baking business” without trying, and can often be caught off guard by the pressures of running a business. It will benefit you to have some rules to follow, to help you through the transition.
Read over the golden rules below, to help you navigate the waters of moving from a free-flow hobby to a plan-it-out baking business.
5 Golden Rules
Rule 1 - Bakery Business Boundaries (SO IMPORTANT)
Your customers are lovely and friendly and WONDERFUL, but…. you still need boundaries.
It is very often that I see new bakers being taken advantage of because they don’t have solid boundaries. This is both a mindset issue and a literal policy issue.
Basically, you need to focus on the health and safety of YOU and your business, and make fair policies that protect both you and the customer. These can be policies within a written contract, or simple rules about ordering, that are posted on your website/social/physical location.
EXPECTATIONS are everything here, and your customers need to know what to EXPECT when they order from you.
Some very common issues arise around:
pick up times/being super late or early
payment and deposits/ NOT paying at all or canceling last minute
overscheduling/bullying you to take an order
To help you avoid issues with boundaries, 2 things need to happen.
First, know that YOU run the show. YOU make the rules, and your customers follow the rules to work with you. YOU set prices, YOU choose deposit dates, etc. Do not let customers tell you how to run your business.
Does this validating mindset guidance feel good? Check out our mentorship options here.
Second, you need some policies in place, and you need a contract. You can sit down and research what needs to be in a bakery contract and get one set up, but if you would prefer a more expert touch, I already have a comprehensive contract ready to go in my Shop. You can read the description to see what is included.
—> Would you prefer to not mess around, and get ALL the necessary paperwork for a Bakery Business, in one go?
I sell the EVERYTHING Bundle in the Essential Paperwork Shop.
Rule 2 - Taking retainers will save your sanity.
Ok, I don’t mean to be rude here, but if you are selling custom baked goods, made to order, for individuals, you 100% NEED to be taking money before you EVER start on the order.
If you don’t perform this crucial protective step for your business, you are in a world of trouble.
You’ll want to collect a retainer (a fee paid in advance in order to secure services, and goes towards the order total), NOT a deposit (a returnable sum).
Simply put, people can not be trusted to keep their verbal promises, so you NEED to take money to make sure they are serious and won’t leave you hanging.
You will roll this in with a DUE BY date (mine retainer to me 2 weeks in advance, final payment due 1 week in advance).
STICK TO THIS DATE!!
You can send a final payment due date reminder (if you want to and have time), but if the client chooses to ignore you, DO NOT make their order. Just assume they didn’t want it, and move on. Paying the retainer to secure an order should be a clear policy (in your contract) and it’s the customer’s duty to pay you on time.
Rule 3 - Reconsider freebies and family discounts.
Now that you are a business (not a hobby), you are going to have some bills to pay. And with that being said, you really can’t and shouldn’t be continuing to offer tons of freebies and large discounts to family and friends.
If you have family and friends hounding you for sweets and shaming you because you are asking to be paid (even just for ingredients and time), then you have a different situation on your hands. These people clearly do not support you and your business, nor do they understand that it takes money to do what you are doing.
I would highly suggest lowering the amount of free and discounted items you are offering, to keep the integrity of your business solid, and make sure you have time in your schedule for paid orders.
Rule 4 - Branching Out - Networking - Getting New Clients
Sometimes it is hard to get past that word-of-mouth, circle of friends, customer base. If you need help branching out, you are going to have to start networking.
My favorite ways to network are on social media channels (like Facebook and Instagram) and by literally walking into stores and messaging people in my area, to introduce myself and tell them what I do.
For some marketing ideas, click here.
Top Networking Tips for New Businesses
Make a list of the people and businesses directly connected to your industry (venues for parties, caterers, party shops, dress shops, etc) and those around your industry- where customers hang out (coffee shops, schools, etc). Go introduce yourself, take cards and see if anyone wants to collaborate or network. See if any big companies want to place large orders, like real estate business and banks (these places love to treat their employees and clients).
—> IMPORTANT —> Don’t forget to introduce yourself to as many local bakers as you can, so you can start networking and helping each other take the orders you WANT to take.
Rule 5 - Messaging and Branding
Now that you are planning to put yourself in front of a lot more people as a baking business, you need to take some time to think deeply about what you are REALLY offering your clients. It’s not JUST a cake or JUST a dozen cookies… it’s something else…
THIS is your messaging, and this will help you stand out in the crowd.
Questions to Ask Yourself to Get Your Messaging Crystal Clear
WHAT am I offering my clients, besides sweets? (peace of mind, a helping hand, delicacies, extravagance, perfect parties, etc)
HOW are you going to offer this? (stellar customer service, free delivery, on-point designs, exceptional flavors, etc)
WHO are you, in the wide world of bakers? (passionate baker, lover of all sweets, spicy sister, professional queen, delicious diva, etc) - Think of it as your “look” or “vibe” as a bakery owner.
WHO do you serve? (busy moms, people on the go, farmer’s market organic types, animals lovers, party planners, etc) - YOUR audience
Now, using your answers, you can create a few simple messaging slogans to get you out there and noticed by your ideal audience. Create at least 4-6 so you can reuse and repurpose as you advertise on social.
More on creating messaging here.
An example message using some words from above..
“Don’t you wish your kid’s next birthday party was stress free and gorgeous?! Here at “The Purple Lotus Bakery”, we specialize in creating perfectly themed and designed dessert tables for busy moms who love elegance! Through our professional customer service and stylized designs, we help make any event a true spectacular.”
—> Then of course add in a photo of your work, and a way to contact you, when you post the ad! <—
Moving your baking passion from a hobby into a business can be stressful, and there are SO MANY QUESTIONS!
I have a course right here that can help you along the way.
The Planning Course
The Bakery Business Guide: Part 1 - Plan for Success
This course is online, self-guided and contains the Build a Better Bakery signature BLISS model of business building, taking you through some of the most difficult steps of conceptualizing a bakery business. From brainstorming, to investigating, networking and consistency, the course helps to prepare you for for first few years of your bakery business experience.
We will also fill out a unique bakery business plan template together.
Enjoy lifetime access and high video and audio quality, plus tons of printable resources.