Baking, or any other cooking, can provide a useful source of income – but be sure to get the basics right.

By: Morné Stoltz, MiWay Head of Business Insurance

Whether you are looking for a way to supplement your income or a new business to support a lifestyle change, the preparation of baked goods or other food products could be the answer. Food has never been more fashionable or attracted so much interest, and it often seems like the range of food fads is unlimited.

Baked goods of various kinds attract those in search of that elusive home-cooked ideal, while for many of all ages, cakes, tarts and puddings are what make a special occasion. Then there is the market for “artisanal” breads and rolls of every kind.

There are numerous diet trends that create opportunities for home-based entrepreneurs. They include:

Banting, the low-carbohydrate, high-fat diet associated with Professor Tim Noakes. Its aim is to reprogram the metabolism to burn fat for energy, rather than carbohydrates. Substitutes for bread, biscuits, wraps, pasta and other carb-heavy products have been developed but as they are hard to make, many prefer to buy them.
Paleo diets, which focus on whole, unprocessed foods like grass-fed meat, free range poultry, wild fish, vegetables (including root vegetables) fruit, berries, some nuts and seeds.
Vegan diets steer clear of all animal products, including dairy products and eggs.

All of these nutritional philosophies are byproducts of modern humanity’s obsession with health and longevity. “Eat yourself young, eat yourself healthy” is the motto, and it opens up a multitude of business opportunities.

Moving away from health to pure pleasure, craft beer is another hobby that could be turned into an enjoyable and profitable business.

In short, if food has always been a creative outlet for you, why not turn it into a revenue stream?

If you do decide to go this route, here are some tips to build a secure foundation for your new venture:
• Do your research. Find out as much as you can about the market you intend to service: who are your competitors, what do they sell, how do they market themselves? What products would you need to compete with, and could you meet the expected demand? The main thing you need to decide is what your key differentiator will be: a new product? Quality? Quick turnaround time?
• Do your business plan. This means understanding what your costs will be and how much you need to sell to make a profit.
• Market your business. Social media offers a useful, free way to market yourself and build relationships with current and future customers. Remember that a picture is worth a thousand words — if you can’t take decent shots with your cell phone, find somebody who can. Many successful small food businesses are built on smart use of “eye candy”.
Social media will also provide you with a way to keep an eye on emerging food trends, so your business does not become stale.
• Check your insurance. Even though you are working from home, you are offering goods for sale to the public. Share your plans with your insurer or broker to see whether you need to amend your existing home or vehicle cover to cater for additional risks. You might also need to take out some public liability cover. Some insurers have done this before, take advantage of their expert staff to make the smart decisions.

The old saying is true: if you do the work you love, you will never work a day in your life. Home baking or cooking could just be your key to a happier, more fulfilled life – just get the basics right!

MiWay is an Authorised Financial Services Provider (Licence no: 33970)