How to Start a Home-Based Cookie Business

There are many details in starting a business, but the basic idea is simple. You need a great product or service, you need to know what to charge, and you need to get organized and get out there and market your goods. Here are the steps that will get you started in a home-based cookie business.

Instructions

• Develop your product. You've got to make great cookies in order to make a business out of selling them. Test recipes, use high-quality ingredients and get lots of taste-testers. It shouldn't be hard to get volunteers for cookie samples. Develop several signature recipes and perfect your methods and ingredients. You might also develop specialty recipes, such as those that are gluten-free, vegan, or low-fat or low-calorie. Or you could go for unique cookies with more unusual, gourmet ingredients; or lavish cookies loaded with nuts and chocolate and dried fruit; or less-well-known cookies from different regions of the world. The most important factor, however, is how people respond. If your cookie platter is cleaned off within the first 20 minutes of every party, you've got a hit.
• Price your cookies. Calculate in the ingredients used, the labor involved and the cost of using kitchen appliances (electric or gas), as well as the wear and tear on cookie pans, mixers, etc.
• Check into state food regulations. You may be able to bake, package and deliver cookies out of your home kitchen as it is, or you may need to make some changes before you can offer food for sale that you have made in your kitchen. If there is a university or community college near you, the community extension or food and fiber department may be a great place to start in your search for information and help. You might also contact your local chamber of commerce, city government or small business association to get information on how to move forward.
• Develop relationships with local businesses. Introduce yourself. Give them a flier or brochure that introduces your product and prices, as well as how much profit they can expect to make from selling your cookies. Give them free samples, or offer them an introductory batch or two at a reduced cost. Be prompt and courteous, always meet your deadlines, and follow through on the experience. Remember that business owners are busy. They may love your cookies but forget to call you back unless you check in with them again, so do it in a polite way. Try to find a time when the business is not packed full, or call and make an appointment ahead of time.
• Establish contracts with your clients. As you continue meeting local business people, caterers, restaurant owners, retail shop workers and others, you will begin establishing clients. The next step is to create contracts with your clients so they can expect to receive the product they want at the price you have set at the same time every day or week. Contracts also allow you to plan ahead, as you know how much baking and delivering you will need to do and how much money you will be making. A contract does not have to be complex, but it might be a good idea to have a lawyer review your sample contracts first.
• Register your business name if you are doing business under a name other than your legal name (the one on your birth certificate). Registering a fictitious or DBA (doing business as) name is not complicated and is usually done through the state government. Contact your Secretary of State's office to find out what is required to file a fictitious name in your state.
• Market your product. Make up business cards and fliers. Give samples away to friends and family members. Set up a website. Talk to people. Go to community events. Let your social circle know what you're doing, and keep networking.