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Singapore is a foodie’s paradise, and it's no secret that Singaporeans love their desserts and baked goods. If you're passionate about baking, starting a home baking business in Singapore can be a great way to turn your passion into a profitable venture. In this article, we'll provide you with a step-by-step guide on how to start a home baking business in Singapore.
Why Start a Home Baking Business in Singapore?
Singapore has a ready market for new food concepts and businesses, and if you have a knack for creating quality baked goods that stand out in the market, then opening a home baking business can be a lucrative business.
Starting a home baking business in Singapore can be rewarding – when you know how to handle the business properly. However, before you can start your baking business, there are a couple of permits you need to get to operate:
- Food shop licence from the Singapore Food Agency (SFA)
- Food hygiene certificate – obtained by attending a food hygiene course and passing the exam.
How to Open a Home Baking Business in Singapore
Step 1: Get the Necessary Permits and Licences
The first step to starting a home baking business in Singapore is to obtain the necessary permits and licences. In Singapore, all food-related businesses are regulated by the Singapore Food Agency (SFA). You'll need to apply for a food shop licence, which can be done online through the SFA's website. You'll also need to obtain a food hygiene certificate, which can be obtained by attending a food hygiene course and passing the exam.
Step 2: Plan Out Your Business
Before starting your home baking business, it's important to create a business plan that will help you to determine your target market, your pricing strategy, your marketing plan, and your financial projections. This will not only help you grow your business, but it can also help make the initial starting process smoother.
A well-written business plan can also be useful when seeking funding or investors. If you’re planning to open a home baking business with a partner or group, then having a solid business plan will help you determine the tasks each partner will handle, as well as financial considerations such as capital input, and profit distribution.
Step 3: Find Your Audience
There are already many different types of home baking businesses in Singapore, from traditional bakeries and artisanal cupcake shops, to online baking businesses promoted on Instagram.
To stand out from the competition, it's important to determine your audience. This could be a specific type of dessert, a unique flavour combination, or a focus on using organic or locally sourced ingredients.
Step 4: Create a Marketing Plan
To attract customers to your home baking business, you'll need to create a marketing plan. This could include online advertising, social media marketing, flyers, and promotions. Consider offering a special promotion for first-time customers to entice them to try your products.
Step 5: Set Up Your Workspace
Setting up your home kitchen for your baking business is important to ensure that your products are of high quality and meet the necessary hygiene standards. You'll need to have a separate kitchen space, equipment, and storage facilities for your ingredients and finished products. This is to avoid cross contamination of ingredients, especially if you’re making specialised goods that cater to customers with food allergies or special dietary requirements.
Step 6: Determine Your Pricing Strategy
When determining your pricing strategy, consider your costs, your competition, and your target market. You'll need to set prices that are competitive but also allow you to make a profit. Consider offering different pricing options for different products or packaging sizes.
Step 7: Partner with Delivery Couriers
To make it easier for customers to purchase your products, consider offering delivery and pickup options. This could be through a delivery service or through your own website or social media pages. Make sure to factor in delivery costs and time when setting your prices. You can always check local delivery couriers for special rates offered to small businesses.
Step 8: Start Your Business
Once you have all the details down, it’s time to launch your business! However, your grand launch is not the end of your business planning. There’s still a lot more work to be done: from ensuring you have the proper permits to sell food out of your home, to stocking inventory and keeping extras on hand for sudden orders.
Bake Up a Good Business with Wealthbridge
You’re already handling, planning, and preparing the different aspects of your business, and the permits you need to get to launch your home baking shop can be a hassle. Let our team at Wealthbridge handle all your incorporation services, including your permit applications! Focus on creating quality bakes, and our team can handle the rest.