I am starting up my own business and have heard many people suggest a strong business plan. I have been searching the internet for information and seem to only find advice on commercial type business plans. Can anyone offer help for a business plan for a home baker. I know a lot of it is the same but there are a lot of differences as well. I just don't really know where to start. Thanks

You can only start a home business baking cakes if your state allows it. Look into the "cottage law" and see where your state falls.

As a home baker I have low overhead so I don't have a business plan.

I went through the proper channels to be licensed and I know I have to bring in enough cake orders to pay those fees, my insurance, and my supplies.

By charging comparable to other gourmet cakeries in the area, I easily cover the costs and make a profit so I don't worry too much about a true "business plan". I just keep my records each month and record costs and profits and then report myself as "self employed" when I figure taxes at the end of the year.

A great idea...if you have the time for it...would be to contact the local SBA (Small Business Association) They actually offer free assistance with business plans and can help with a variety of other business planning tools and resources as well. Just a thought.

I think you would be wise to have a least some sort of plan. Helps keep you focused. Especially the marketing element. You need a vision and a mission statement (e.g. "Will create the greatest pork belly cupcakes in the world") that keeps you going on those days when you wonder why you got out of bed.

If you are targeting a specific market, list those targets and any action taken and the results. (Bitsy's Salon - initial phone call, set up visit, took samples, menu and business card. F/U e-mail)

It's also a good idea to know where the money is coming from for start-up costs. Business cards, flyers, etc. are all part of your expenses, not just food.

Write your plan tailored to your business. It should be a living document, in other words, it's a plan that you intend to follow, not just file in a drawer.

Good luck to you!

Great advice from everyone! I already contacted the health dept and met the cottage requirements. Now I just need to submit all my recipes and all that fun stuff! I also agree a living document would be nice to have to keep me focused. Thanks

For the most part, you take the sections of a "regular" business plan and adapt them to your home business.

I definitely recommend calling the SBA and getting help with a business plan. Without a business plan it is so easy to overlook costs and profits. A business plan requires you to really take an honest look at what you plan to do, how much money you expect to make, how you plan to market your product, etc. They're kind of a pain to do, but with the right help its not so bad, just time consuming.

Plus, it's good to have one on hand in case you decide to expand in the future. Good luck!

Thank you, I am glad that the SBA offers those services for free how great is that?!!!

Best of luck to you in your new venture!

I never had a formal business plan, but I knew who my target market was going to be, which is half the battle. You don't need anything formally written down if you're not looking to get a bank loan, but you should have an idea about what goals you have and whop you're trying to sell to.