How to Start a Cake Making Business

Having the skills to make beautiful cakes is highly valuable. It can lead to a flexible and creative business opportunity. Make sure you start things off on the right foot with our easy to follow cake business start guide. 

For more business ideas, be sure to check out our comprehensive online list. 

Table of Contents

Choose Your Business Structure

There are a number of factors which will affect the business structure you decide to go with. For example, if you’re operating from home, on a small scale, a sole trader structure might be best. However, if you’re looking to hire employees and work out of a commercial kitchen, then another option might be better suited to your needs. Make sure to do your research and get support from a business lawyer if you need it. 

Apply for an Australian Business Name (ABN)

An ABN will allow you to conduct business in Australia. With an ABN, you’ll be able to register a business name. Additionally, you’ll get the legitimacy associated with an ABN.

Choose Your Business Name

Time to pick your name! By registering your business name, you’ll be able to start building your brand. Additionally, your customers will have a name they can remember you by.

Get the Right Food License/s

To handle and sell food in Australia you need a food licence. Contact your local council for more information about which licence you’ll need, and how to obtain it. 

Meet Food Safety and Hygiene Standards 

No matter the setting, if you’re handling any food or food products, you’ll need to meet food safety and hygiene standards. Alongside Federal standards, each State has their own requirements depending on whether you’re home based or in a commercial kitchen. Generally, you need to ensure extremely clean standards and safe food handling practices. Make sure to contact your local council, or relevant state department for more information.

Get Insurance

If you’re selling at market or have employees, you will likely need to have insurance. Make sure to research what suits your business activity best. 

2. Advertising

To get the word out about your new cake making business is going to take time and effort. Some questions you might want to think about:

  • What social media platforms can you use to advertise your creations?
  • How can you maximise on word of mouth connections?
  • What visual imagery do you need? Do you need to trademark a logo to ensure it’s kept safe from copying?

3. Distributing

You might want to deliver your delicious baked goods yourself, or you might want to hire employees or contractors to do it for you. If you go with the second option, you might want to ensure you have a clear contract with whoever is doing the delivering for you.

4. Start Baking!

Once you’ve got your legals sorted and have started getting the word out, it’s time to fulfil orders.

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