STARTING A MICRO BAKERY FROM HOME
Learn how to launch a profitable micro bakery from home
Hi, my name is Maria Baradell, and I own Leaf & Loaf, a thriving home bakery in Dallas, Texas, selling out weekly of all the sourdough bread and treats I make.
My dream is to have a home baker in every single neighborhood, bringing back the joy we used to know of homemade bread and bakes to our communities. Thank you for joining me in this dream and please receive a warm welcome to the grassroots movement that is "Bringing Bread Back" to America and the world! This movement is a Bread Renaissance, a revival of the age-old tradition of home baking.
In the past, there was a cottage baker in every neighborhood, providing fresh, healthy bread and baked goods. However, this tradition faded with the introduction of commercial yeast and the industrialization of flour milling and bakery processes. While these changes made bread making easier and cheaper, they also sacrificed the health benefits and quality of naturally fermented baked goods, giving bread a really bad reputation.
I am dedicated to bringing home bakeries back by teaching our generation and those to come the art of making naturally fermented bread and baked goods that are nourishing liked they used to be. My goal is to help home bakers streamline their processes, enabling them to balance family obligations while blessing their communities with real, good bread and bakes.
In this guide, you will find advice on how to successfully launch a home bakery and I hope it inspires you to become a part of this Bread Renaissance, bringing delicious, healthy bread and other baked goods back to our communities.
You might be wondering if there is demand for home made baked goods or if there is room for another baker to start up in your area! The answer to both questions is YES!
The sourdough market is expanding at a rate of 9.1% annually and it is expected to go from $2.3 billion in 2023 to $5.15 billion in 2032 (source). This growth is driven by rising consumer demand and the efforts of home bakers who are leveraging online platforms to raise awareness, share their passion, and attract more customers—ultimately fueling even greater demand.
Not only is there demand, but there is more than enough room for you! The beauty of home baking is that no two bakers are the same—your unique style, flavors, and personality make your business stand out. Customers aren’t just looking for bread and bakes; they’re looking for a connection, a story, and something real. As more people seek out wholesome, artisan-made baked goods, the demand will only continue to grow, so we need you!
“But baking is hard work”
I tend to romanticize my job as a home baker, because truth be told: I love it! but it is hard work.
Now, what job isn’t?
Wasting an hour or more of our lives commuting to and from an office is hard
Sitting 8 hours behind a desk in hard
Staring at a screen all day under fluorescent lights is hard
Answering to a boss who doesn’t appreciate you is hard
Having little control over your schedule, creativity, or workload is hard
Missing out on family time because of rigid work hours is hard
Spending your days doing something you don’t love is hard
If hard work is inevitable, wouldn’t you rather build something of your own? Something that brings you joy, freedom, and connection to your community?
The path ahead might feel overwhelming, but there are 6 key building blocks that make starting your micro bakery manageable and achievable.
Before we dive in, here are some things to remember:
✔ Take it one step at a time, start small, and grow slowly as demand increases.
✔ Success looks different for everyone. Stay true to your purpose and your very unique goals.
✔ Comparison is the killer of joy. Don’t compare your Chapter 1 to someone else’s Chapter 15.
Laying the Foundation
The 6 Building Blocks of Starting Your Micro Bakery
This guide will walk you through the process of launching your micro bakery, breaking it down into clear, doable steps so you can move forward with confidence.
Here’s what you need to focus on to get started:
1. Choose what to sell – Start with what excites you and build a menu.
2. Set up legally & financially – Lay a solid foundation of operations.
3. Choose a sales model – Find what works for you.
4. Choose a fulfillment method – Get your bakes to customers.
5. Brand your business – Make it uniquely yours and memorable.
6. Launch! – Take the leap with confidence and launch successfully
Building Block #1: Choose What to Sell
The first step in starting your micro bakery is deciding what to sell. This isn’t just about what you love to bake—it’s about finding the right mix of products that excite you, meet customer demand, and make financial sense.
Start with a Hero Product
Your hero product is the star of your menu—the item you become known for. It should be something you can make consistently well, that has strong demand, and that keeps customers coming back.
Add Complementary Products
Once you have your hero product, think about complementary items that pair well with it.
Boost Your Profits with Add-Ons
Not everything you sell needs to be a full bake. Profit boosters are small, easy-to-make items that increase your order value without much extra work.
Building Block #2: Set up legally & financially
Before you start selling, it’s important to understand the rules, price your products for profit, and keep your finances organized. Let’s break it down.
Know Your Cottage Food Laws
If you’re selling from home, you’ll need to follow cottage food laws—these are local rules that allow you to sell homemade food legally without needing a commercial kitchen.
The laws vary by state, province, or country, so look up your region’s specific requirements online. Some common regulations include:
✔ Where you can sell (home pickups, farmers’ markets, online sales, etc.)
✔ What foods are allowed (some regions limit items that require refrigeration)
✔ Labeling requirements (some areas require specific disclaimers)
Here are a couple of resources you can visit to learn about the cottage food laws in your state:
https://cottagefoodlaws.com/
https://www.pickyourown.org/CottageFoodLawsByState.htm
Acquiring the necessary licenses and permits is a critical step in legally operating your home bakery. Knowing the rules upfront keeps your business legal and running smoothly from day one.
Price for Profit
Your pricing should align with the offer and demand in your area for the type of products you are providing and should reflect more than just the cost of ingredients, packaging and overhead. Your pricing should be:
The price of a similar baked good in a store
+
The true value of what you offer, including:
Don’t be afraid to price your products accordingly!
Aim for 70-90% profit margins if you’re not paying yourself an hourly wage.
If you’re factoring in your time, 20-50% profit is typical in the home bakery industry.
Keep Your Finances Organized
💰 A separate bank account for your home bakery.
📲 A dedicated Venmo, PayPal, or Zelle account to track transactions.
📝 A spreadsheet or bookkeeping system to manage income and expenses.
Building Block #3: Choose a Sales Model
There are two main sales models for home bakeries:
Sales Model #1: Pre-Orders (Best for Predictability & Less Waste)
With pre-orders, customers order in advance, so you only bake exactly what’s needed—reducing waste and maximizing efficiency.
There are two ways to approach this:
✔ On-Demand Pre-Orders: Customers order anytime, and you bake as orders come in (great if you have a flexible schedule).
✔ Scheduled Drops: You announce a set menu on specific days, customers place orders by a deadline, and you bake everything at once (ideal for batch efficiency and time management).
Best for: Bakers who want to minimize waste, streamline production, and balance their baking with other commitments.
Sales Model #2: Bake-to-Sell (Best for Flexibility & Markets)
With this model, you bake first and sell later, either from a home bakery stand, pop-up, farmers’ market, or porch pickup.
✔ More risk, but more flexibility – Since you don’t have pre-orders, there’s always a chance of unsold inventory, but you have the freedom to bake what you want, when you want. This gives you the ability to adjust based on your schedule, and the chance to offer last-minute sales or impulse purchases without being tied to advance orders.
✔ Great for building a local customer base – Customers love the convenience of instant availability instead of waiting to order.
Best for: Bakers who sell at markets, want flexibility in what they bake, or have a high-demand customer base.
Which model is right for you?
Both models work, and you can even combine them! Choose the model that fits your lifestyle, schedule, and baking capacity best.
Building Block #4: Choose a Fulfillment Method
How will your bread and bakes be made available to your customers? Here are the most common options with their pros and cons:
Pickup – Customers collect their orders from your home, farm stand, or a set location. This is cost-effective and convenient for you, but if hosting pickups from home, sharing your address may be necessary.
Delivery – You bring orders directly to customers, expanding your reach beyond local pickups. While this is a premium service that customers love, it adds costs for gas, time, and vehicle upkeep.
Wholesale – Selling in bulk to retailers, cafés, hotels or businesses offers steady income and visibility, but profit margins are lower, and consistency in production is key. Cottage food laws in some states limit wholesale activities.
Farmers Markets & Pop-Up Events – These provide instant exposure, customer interactions, and high-volume sales, but require time for setup, transport, and vendor fees. Sales can also depend on weather and foot traffic.
Farm or Bread Stands – Self-serve stands offer a low-maintenance, trust-based system, allowing sales outside set hours. However, there’s a risk of theft, underpayment, or unpredictable sales.
Which method works best for your home?
🏡 Country Home / Farm → Ideal for pickups, farm stands, wholesale, delivery, and market sales.
🏘 Home in an HOA → Best suited for carefully coordinated pickups, deliveries, and farmers markets.
🏢 Apartment or Townhouse → Limited on-site pickup, but delivery, wholesale, and pop-ups work well.
Every fulfillment method has its trade-offs, choose what fits your lifestyle and baking capacity best!
Building Block #5: Brand Your Business
A strong brand makes you recognizable, memorable, and trustworthy. Here’s how to build yours:
Pick the Perfect Name
Your bakery name should be:
✔ Easy to spell and pronounce (so people can find you!)
✔ Unique (to avoid confusion with other businesses)
✔ Meaningful (reflecting your story, style, or product)
🚫 Avoid: Generic names, overused words (“artisan,” “homemade”), or anything too long.
Before finalizing, check domain availability (for a website) and search Instagram & Facebook to secure your URL and matching social media handles.
Design Your Visual Identity
A cohesive look makes your brand feel polished and professional. Consider:
Logo – Keep it simple, readable, and adaptable for different uses.
Colors & Fonts – Pick 2-3 colors and 1-2 fonts to use consistently.
Photography Style – Decide on a look (bright & airy, dark & moody, rustic, etc.).
Create a branding guide outlining these choices so everything looks cohesive!
Craft Your Brand Story
Your brand story is what makes you stand out. Customers connect with why you bake, not just what you bake. Answer these:
✔ What inspired you to start?
✔ What makes your baked goods special?
✔ Who do you bake for?
Share this story on your website, social media, and packaging to create a deeper connection with your customers. Branding is what makes you unforgettable—so make it count!
Building Block #6: Launch
This is such an exciting time—your bakery journey is beginning! You don’t need perfection to start, just the courage to take the first step. Your community is ready to enjoy your amazing bakes!
Pick a launch date, start posting behind-the-scenes content, and create excitement with sneak peeks and a countdown.
Launch with an event like a pop-up at home or at a nearby cafe, or make it an online event. Send invites in advance.
Make ordering simple and clear, and consider a launch special like a small discount or bonus item to attract first-time customers.
Once orders start coming in, gather feedback, refine your process, and stay consistent.
Ready, Set, Bake!
If you love my content, please consider sharing it with friends and family. Every share helps spread this movement — and as a thank you, you’ll unlock even more exclusive recipes and behind-the-scenes content.