	Min Startup Costs	Max Startup Costs
Equipment & Supply Expenses	$66	$1,200
Retail Business Expenses	$1,250	$11,650
Inventory Expenses	$350	$14,750
Advertising & Marketing Costs	$75	$9,636
Software Expenses	$0	$425
Website Costs	$13	$215
Total Startup Costs	$1,754	$37,876

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Case Studies

How This Couple Left France To Build Their "American Dream:" A Six-Figure Online French Bakery

Bonjour! My name is Anthony Rosemond. I'm a Parisian chef & founder of P...

• $25K/mo

This Baker From Gurgaon Earns In Lakhs Per Month Through Her Home-Run Bakery!

- Before starting her journey as a business woman, she spent around a de...

• $3.75K/mo

See all success stories ➜

Successful Businesses

Business	URL	Rank
Weebly	weebly.com	283
Squarespace	squarespace.com	332
Teachable	teachable.com	861
Free Website Builder For Your Business	business.site	885
BakerySwap	bakeryswap.org	18,444
CakePHP	cakephp.org	33,385
Porto's Bakery	portosbakery.com	102,327
Broma Bakery	bromabakery.com	204,127
Bakery Supplies & Restaurant Supplies, Pastry tools, bakery & restaurant equipment	bakedeco.com	278,260
Julian Bakery	julianbakery.com	280,133
Mr. Brown Bakery & Food Products Pvt. Ltd	mrbrownbakery.com	325,871

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Pros & Cons

Pros	Description
Rewarding work	Starting a home bakery can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Meaningful business connections	You never know who you will meet as a home bakery. This could be the start of an incredible business opportunity!
Daily physical activity	Home Bakery's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.
Amazing perks and discounts	Working in the home bakery comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
You are your own boss!	With ing a home bakery, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!
Local Community	One of the best parts of ing a home bakery is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.

See all pros ➜

Cons	Description
Crowded Space	Competition is high when it comes to your home bakery, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Finding The Right Supplier	Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.
Motivation of employees	If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Low margins	The gross margins for your home bakery are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover	In the home bakery, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes	As a home bakery, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

See all cons ➜

Marketing Ideas

1

Direct Sales

Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

Learn more about direct sales ➜
2

Word of mouth

Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

According to Nielsen, 92% of people trust recommendations from friends and family.

Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

Learn more about word of mouth ➜
3

Social Media Advertising

Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

Learn more about social media advertising ➜

See all marketing ideas ➜

Pat Walls, Founder of Starter Story

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Key Stats

Startup Costs

Case Studies

Successful Businesses

283

332

861

885

18,444

33,385

102,327

204,127

278,260

280,133

325,871

Pros & Cons

Marketing Ideas

Direct Sales

Word of mouth

Social Media Advertising