Bakeries are a commonly found food service enterprise globally, including in Singapore. If you’re passionate about baking and want to put your skills to good use, you should definitely consider starting a bakery from home. That way, you get to hone your baking skills, share your creations with others, and make a profit while you’re at it.
Starting a bakery business from home is appealing to many people on the island, but their lack of professional experience and thorough understanding of government regulations has served to dampen such a desire.
Knowing how to begin is critical to the success of a business, and to that end, we have provided you with this concise guide. This article will cover everything you need to know about starting a successful bakery business at home in the promising country of Singapore.
What Is a Home-based Bakery Business?
Baked items such as pastries, bread rolls, and pies are abundant in Singapore, with some homeowners selling these delectable treats from their homes. These businesses are not large, though they have the potential to grow as their products become more popular.
Residents who run these businesses do not need a license, thanks to the Housing and Development Board’s (HDB)’s Home-Based Small-Scale Business Scheme. However, to be able to produce and sell these homemade products, they would need to register with the correct authorities in Singapore.
Requirements for Starting a Home Bakery
You may be skilled at baking and have a strong desire to bake, but you will require certain permissions before you can make them available for public consumption. In addition, you will have to overcome some regulatory hurdles. Fortunately, these are not difficult to overcome. We will go over each requirement one by one.
Although you do not need a license to operate your business, it must be registered with Singapore’s Accounting and Corporate Regulatory Authority (ACRA), irrespective of its scale.
Following that, you must apply to the Inland Revenue Authority of Singapore (IRAS) for a Tax Identification Number (TIN) and a GST number. You will also need to register for social security for your home-based bakery business.
Take note that your home is where you produce and sell your treats. Make this location suitable for the business by ensuring it meets food quality, safety, and control requirements. After this, you can apply for a food shop license with the National Environment Agency (NEA).
Primarily, the NEA would expect you to adhere to the following guidelines:
- During production, personal hygiene must be maintained at all times.
- Contamination must be avoided at all costs, so the production environment and equipment must be cleaned and disinfected regularly.
- Ingredient expiration dates should be checked regularly.
- Ingredients, along with cooked food items, should be stored in temperature-controlled areas.
You may need import or export permits if you intend to import ingredients from another country on your own. Also, other permits may be required during the course of business operation, so be prepared.
Meeting the requirements mentioned above will help ensure that your company is legally recognised. However, there are some other requirements in the Home-Based Small Scale Business Scheme that you must abide by. They are as follows:
- Address: You are not permitted to use your HDB flat as your business address. Your HDB flat is reserved for residential use and can only be used if the premise’s use has been changed. Various online incorporation services can be very useful in assisting you with a business address.
- Activities: As a home-based bakery is intended to be a small-scale enterprise, it is expected that it would not disturb the neighbourhood. To achieve this, the equipment used to prepare your treats should not be of an industrial nature. You are also not allowed to load and unload products onto trucks or into storage facilities. Selling your product at stalls or fairs is also strictly prohibited.
- Advertising: You must also follow the rules regarding advertising your treats. You are not permitted to place any physical advertisement to attract sales near your home. Promotions in newspapers, magazines, online sites, and social media are also restricted. You are only left with the option of convincing your relatives, friends, and acquaintances to purchase your delicacies.
While easy to comply with, the above requirements demonstrate that it takes more than passion to run a profitable home-based bakery.
Recommendations to Stay Ahead of Your Competitors
Along with following the rules, there are some smart recommendations that should be followed. Although the list is a long one, these are three you should take to heart.
Your Treats Must Be Exceptional
Perfect whatever it is you’re selling, whether it’s loaves of bread, cakes, pies, or muffins. Your product’s quality serves as your company’s advertisement. Being exceptional does not require that your treats contain ingredients no other competitor uses.
All you have to do is make sure your products taste great. Don’t just make an ordinary pie; plenty of local bakers do so! People will patronise you if you bake high-quality products, and a careful balance of price and quality will keep them loyal to your brand.
You Need High-Quality Equipment
Producing high-quality treats while maintaining consistency necessitates that your equipment keeps up with you. Although you do not have to spend a lot of money to succeed in the trade, you need to invest in good ovens, mixers, trays, utensils, and so on. There are factors to consider in the equipment you need, so do your research first – don’t be in a hurry.
Make The Most Of Your Social Connections
You cannot run advertisements, but this does not prevent you from promoting your product. Your close friends and relatives should be aware of your delicacies, so you should rightly inform them first. In addition, it would help to notify friends and acquaintances on social media about your business. The best way to do this is to create a nice product, have nice packaging, and upload photos worthy of them.
It would be best if you could also create social media profiles for your brand, but make sure that your followers are obtained organically to stay within regulations. If your baking skills are excellent, you should also consider joining a bakers’ community to increase your support from the public.
Even if your culinary abilities are unquestionable, starting a new business like a bakery can take time and effort. Businesses like these may take years or decades to become successful in Singapore if your efforts are not supported by experience and insight.
Adherence to guidelines is critical for the business, but to succeed, you must also employ certain tried and tested hacks. To run a successful home-based bakery business, you must enhance your culinary skills and consistently produce delectably baked treats. Getting this right will endear your products to an increasing number of customers.
If you are considering opening your home-based bakery and still wondering where to start, contact a corporate service provider today. They will not only help you to incorporate your business but ensure you meet all the government requirements to run a business.