Building a Home Baking Business

Starting Chez Arv Cakes & Desserts wasn't something I planned. After Bake Off, people started asking if they could order cakes from me, and I found myself saying yes before I'd really thought through what that meant.

If you're considering starting your own home baking business, here's what I wish I'd known from the beginning.

The Legal Side

In Victoria, operating a food business from home requires registration with your local council. You'll need to meet food safety requirements, which means your kitchen needs to meet certain standards and you'll likely need a Food Safety Supervisor certificate.

Don't skip this step. It's not just about avoiding fines — it's about protecting your customers and building a business on solid foundations.

Finding Your Niche

The home baking market is saturated. You can't compete with supermarket prices, so you need to offer something they can't: quality, customisation, and personal service.

For me, that means specialising in occasion cakes with a focus on flavour. I don't try to do everything — no cupcakes, no cookies, no bread. I do celebration cakes and signature desserts, and I do them well.

Find what makes you unique and lean into it.

Pricing Honestly

This is where many home bakers struggle. We tend to undervalue our work because we love doing it. But love doesn't pay for quality ingredients, equipment maintenance, or the hours of labour that go into a tiered cake.

Calculate your actual costs: ingredients, packaging, electricity, equipment depreciation, and your time. Then add a margin that reflects the value of your expertise. Yes, some people will balk at the price. Those aren't your customers.

Your customers are the ones who understand what goes into a handcrafted cake and are happy to pay for it.

Building Relationships

The best marketing is word of mouth, and word of mouth comes from consistently delivering excellent products and service. Every order is an opportunity to create a customer for life.

I follow up after deliveries. I remember repeat customers' preferences. I go the extra mile on presentation. These small touches add up.

The Hard Truth

Running a home baking business is not passive income. It's early mornings and late nights. It's stress when orders pile up. It's learning to say no when you're at capacity.

But when you see someone's face light up at a cake you created, when your work becomes part of someone's cherished celebration — that's when you remember why you do it.

I wouldn't trade this for anything.