Thank you! That's very helpful!
My Mom has a business and my Dad is a lawyer. They wanted me to ask you if there are any magazines or books they should read to educate themselves on setting up a baking business, e.g., legalities of a cottage baking business. My dad can look this up, but he asked that I ask you.
Can you see cottage baking business I assume you’re going to produce the baked goods in your home kitchen then sell directly to the public. At least in the US that’s what is defined as a cottage a baking business.
In the US, just about every state regulates the cottage food operators (CFO’s). Unfortunately there isn’t much material on setting up your own cottage business.
You can bake from a home kitchen, but you’ll need a business license and you’ll need to be in compliance with the cottage food laws in your state.
The place to start would be with your local county Health and Human Services Department as the county will adopt the state requirements. A county cannot pass statutes beyond those imposed by the state, but they might include additional requirements. For instance the county I live in requires an inspection of the home kitchen even though the state does not require an inspection of the kitchen.
There’s a list of products can be produced. It really comes down to what is referred to as Water Activity. So google “water activity levels and cottage food laws.” You don’t need to understand water activity in its entirety. But you do need an overview of what water activity is, and how it applies to the cottage food industry.
Most states will not allow for Internet sales of food products that are produced in home kitchen. Meaning you cannot ship them. Food normally must be exchanged in person. And this again comes down to water activity in the food. So this is why you need an basic understanding of water activity.
A certificate in food safety and handling may be required. I live in California and just about every food retailer, restaurant, hospitality provider requires a certificate. It’s pretty much a given if you work in hospitality you need a certificate. And if you were going to be a CFO you need a certificate. The certification can be obtained online.
People always ask about pricing. Pricing is very specific to area. I live in the Napa valley. Prices here are quite high compared to the next county over. The cost of local
ingredients are also much higher here than they are for other areas as well so those factor into the final price of goods. So your pricing is going to be specific to your area. And only you can figure out what your prices are going to be.
I hope this helps.