How to Start a Cookie Business?

How to Start a Cookie Business?

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People around the world love cookies. They are perfect for you on the go as they are easy to pack and carry. Plus, with so many varieties available you just cannot stop eating just one. Furthermore, high-quality baked cookies are simply a delight and are also great for making new friends.

In the US alone over 7 billion cookies are consumed each year; this average comes to around 1000 cookies eaten by most people annually. Furthermore, 93% of American households serve cookies as treats or after meals, with the chocolate chip cookie being the most popular throughout the nation. With this information in mind, you might be wondering how to start a cookie business.

Well, you are in luck, so look no further. Here is a quick guide that can help kick start your venture.


Legal Requirements to Start a Cookie Business

If you are selling home-made cookies then you may be required to acquire a permit, along with a business license as well as a food license. In most cases, you will be required to contact your State’s Health Department and inquire them about their Cottage Food Laws. Your State’s Health Department can offer you information regarding licensing. You should also reach out and find out about the Local Laws that govern compliance-related issues for selling cookies and other home-baked items.

You will also be required to contact the FDA (Food and Drugs Administration) in order to find out their regulations for selling home-based food items. However, it is important to know that as per Federal Regulations, Title 21, Code of Federal Regulations, Section 1.227 a private home is allowed to carry out cooking, processing, packing, and storing food. However, since you will be carrying out commercial activities, the customary expectations would not suffice. Hence you will be required to be registered with the FDA.


Find a Proper Business Name

It is important that you check with the US Patent and Trademark Office or simply visit their website (https://www.uspto.gov/trademark). They can inform you whether the business name you have decided is available or it has already been trademarked. You can also contact your State Agency that registers corporations to make sure that your business name is not taken.


Registering Your Cookie Business

In order to officially register your business, you would be required to contact your State’s Revenue Agency. You would also be required to decide on your business’ structure which can range from a sole proprietorship, partnership, or an LLC (Limited Liability Company).


Obligations & Considerations

As a business owner, you need to acquire and apply for an EIN (Employer Identification Number) along with a Federal Tax Identification Number. Both of them can be easily obtained by asking for help on the IRS website. If you plan to sell cookies from your home then a CO (Certificate of Occupancy) would be considered mandatory. This certificate ensures that you have met all government regulations along with zoning laws as well as compliance with building codes. 

Additionally, I would also recommend that you apply for a business bank account, business credit card, and set up your business accounting. All of this will in the end help you keep your assets safe and separate. Lastly, I would also suggest that you opt for business insurance as it can help you file for claims after an unforeseeable event or accident.


Allocation of Cost

The home-based cookie business wouldn’t require large capital to start and a small investment around $10,000 can be deemed sufficient. However, if you plan to start your bakery then that can cost you around up to $50,000 as a start-up cost. Your basic costs would include:

·         Lease for a physical store

·         Supplies and mixtures

·         Bowls and storage containers

·         Food items and ingredients

·         Labor fees

Expense breakdown for small bakeries:

·         25% allocated to funds for ingredients and packaging

·         35% for manual labor or personnel

·         30% for overheads such as rent, bills, and other expenses

The remaining 10% is for your profit. It is also interesting to note here that there are about 6700 retail bakers in the United States. Their combined revenue is around $3 billion. That puts the average revenue per baker at about $450,000.


Marketing and Promotion of Your Cookies!

Living in the 21st century your best option for marketing and promoting your venture is through digital marketing channels. The internet has continued to penetrate the masses in the US and offers you tremendous utility to create countless impressions online at minimal costs.

This is why I would recommend that you get your proprietor business website up and running. All you would be required to do is to contact a business website development service. However, even before that, I would advise strongly to have an affordable logo design for your business that is attention-grabbing and relays your true values.

Your website will serve as the mainstay for your online visitors and customers and your logo will help your viewers to become familiarized with your venture. It will also help your prospects and potential new clients to differentiate your brand from competitors.

Additionally, you can also promote your offered products and services through social media platforms. This can include Facebook, Instagram, TikTok, LinkedIn, and YouTube. Social media will help you bring about lots of interactions and engagements with your customers. It can also help you to generate a tremendous number of leads.

Furthermore, if you want to get hits from locals in your community then Google My Business is in a class of its own. It will help your local SEO (Search Engine Optimization) as well as help you get referrals by appearing on SERPs (search engine result pages) for local searches. So, get started to own your business page and optimize it to the fullest to get the most out of Google My Business which is a free service.


Final Word

The love for cookies is undying and many reports predict growth for the industry in the coming years just like for the overall food industry.


Cheers, good luck, and happy baking!

 

Written by

Gary Roberts

Gary Roberts is a digital marketer. He loves to blog about digital marketing, designing, and business growth. A true lover of Coffee with chocolate cakes!

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