Starting a Home Cottage Bakery in 2025

Starting a Home Cottage Bakery in 2025

Your Guide to Turning Homemade Goods into a Thriving Business

If you’ve ever dreamed of turning your love for baking into thriving business, 2025 might just be your year. With the cottage food industry booming and more people craving homemade, high-quality goods, there’s never been a better time to start your own home bakery. But where do you begin?

As someone who stumbled into running a successful sourdough bakery from home, I’m here to share the key steps, insights, and lessons I’ve learned along the way.

I may have stumbled into a home bakery business by accident, but I’ve been preparing for it my whole life. From growing up with entrepreneurial parents who taught me the value of hard work and adaptability, to managing teams, excelling in sales, and honing my customer service skills—every experience led me here.

Read more of my story here and discover how passion, a little courage, and a lot of flour turned into a thriving home bakery business.

Start a Home Cottage Bakery in 2025 with these 8 key ingredient’s to success!

1. Know Your Local Cottage Food Laws

Every state has different rules and regulations for home-based food businesses. Research what’s allowed in your area.

What foods can you sell?

Do you need permits or inspections?

Are there labeling requirements?

Start by checking your state’s health department website and make sure you’re compliant from day one.

Photo by Janie Lin Photography

2. Perfect Your Signature Product

Whether it’s sourdough bread, cookies, or homemade jams, start with one or two signature products. Master your recipe, streamline your process, and ensure consistent quality every single time.

Pro Tip: Choose items that are both delicious and efficient to produce.

3. Set Up Your Workspace (Without Overspending)

Don’t worry about investing in fancy new equipment right away—use what you already have. Focus on building your business, then upgrade as you start making money.

Pro Tip: Reorganize a cupboard or shelf to store all your home bakery tools, ingredients, and packaging supplies in one place. Keeping things tidy and accessible will save you time and stress.

4. Track Your Costs and Price Smartly

Pricing your baked goods can feel tricky, but it’s essential to cover your costs and make a profit.

A free app like Craftybase (with a free trial) Baksey, CakeCost, Recipal and more can help you track ingredient costs, inventory, and pricing.

For a simpler option, even a Google Sheets spreadsheet can do the trick—just make sure to keep it updated!

5. Build Your Brand (But Don’t Box Yourself In)

When choosing a name, think long-term. While it might start as “Kourtney’s Sourdough,” what if you decide to add cookies, jams, or full meal kits later? Pick a name that allows you room to grow without feeling restricted.

Free tool to help you build your logo, labels and more here.

6. Start Small, Dream Big (Or Keep It Simple!)

Your goal doesn’t have to be building a bakery empire. The beauty of a home bakery is flexibility—some bakers thrive with weekly pickups and preorders, while others aim to scale into commercial kitchens.

Pro Tip: Weekly pre-orders with a set pickup day are a fantastic way to start without overwhelming yourself.

7. Facebook: Your Local Marketing Powerhouse

When it comes to finding local customers, Facebook is your best friend. Create a business page, join local buy/sell/trade groups, and share your baking journey. Word-of-mouth spreads quickly on Facebook, especially in smaller communities.

Use Social Media to Your Advantage – Platforms like Instagram, TikTok, and Facebook are your best tools for connecting with customers. Share behind-the-scenes content, baking tips, and customer testimonials. Consistency is key!

8. Think Outside the Porch Pickup

Not everyone loves having customers come directly to their home for pickups. If that’s you, don’t worry—there are creative solutions!

Set up a self-serve pickup station in a convenient spot.

Partner with a local coffee shop or small store for drop-offs.

Check out my post: How to Start a Home Bakery Without Porch Pickups and Customers Coming to Your Home

Ready to Start Your Baking Journey?

In 2025, home-based bakeries aren’t just a trend—they’re a sustainable, fulfilling way to build a business from your kitchen.

Running a home bakery is hard work, but it’s also incredibly rewarding. Whether you keep it small and simple or dream of scaling up, the beauty of a home bakery lies in its flexibility.

If you’re ready to take the leap, I’ll be here to guide you every step of the way.

Join Our Free Facebook Community! Connect with fellow cottage bakers, farmstand owners, and porch pick-up sellers in Utah & Beyond Cottage Bakers and Stand Connection. Share ideas, network, and grow your business together! Join here