How to start an online bakery business?

To start an online bakery business, you need to know the competitors in the industry, choose and register a legal entity, and figure out shipping logistics. Across almost all demographics, people eat baked goods and many friends and family live apart, so there is a huge group of potential clients that you can tap into.

1. Know your competitors

   Market research is crucial for starting an online bakery business. Not only is it important to know information about potential clients, but you also want to be able to understand your competitors and their business models. This can help you understand shipping logistics. This helps you to set prices in a competitive way.

2. Choose and register a legal entity

   Depending on the needs of your business, you should choose a legal entity that matches it such as S corp, C corp, or LLC. Most likely, you will register your business as an LLC. This can protect you from personal liability from your business. This is essential.

3. Find a location

   A workspace is crucial for your online bakery business. If you plan on working outside of your home, you need to ensure that the space meets all food handling requirements. You also need to make sure that you hold the correct permits to make and distribute food. This can vary by location.

4. Figure out shipping logistics

   Shipping out baked goods adds logistical components to your business, and you need to figure these out. You should research how best to ship items, which carrier to use, and how to package your baked goods so they are protected while traveling.

5. Market your business

   It is important to create a marketing plan to promote your business. This could include hiring out marketing to an agency or doing it yourself. You need to ensure that your brand has visibility. It could be beneficial to use traditional marketing strategies as well as take your ice cream to local fairs and markets for people to test and try.