Philippines Guide

For Anna, baking was a hobby she enjoyed as a young teenager. Now that she has a family, she never thought that baking goodies for her children will turn out to be a profitable home business. Let’s find out more from her.
Q: What are the products that you sell?

A: My product line is basically different kind of cookies, brownies and sometimes cakes. For the cookies, I have oatmeal and choco chips, then the chocolate crinkles. I also bake brownies with a variety of toppings like marshmallows and nuts. Then for the cakes, I offer chocolate and cheese cakes. I also accommodate orders for cakes for special occasions like weddings and birthdays.

Q: How many people do you employ?

A: I started with one assistant but later hired two more to assist me in the kitchen and one driver since I just entered into agreements with three restaurants to supply them with my products.

Q: How profitable has this business been?

A: For someone who did not really plan to start this business, I can say that I am satisfied with the profit that I have earned from this. It really is profitable since the ingredients are basically the dame, with little variety, so you get to use most of what you buy. And there is no spoilage since you bake according to the orders you get.

In terms of pricing, I have to keep my prices lower than the known bakeshops. Otherwise, customers would rather buy from them. Besides, clients expect lower prices from me. Mark up would probably be from 35% to 50% depending on the product and quantity.

Q: How do you market your products to get orders?

A: It was difficult at the start, It’s funny to think that when I was just baking for my family and friends as a hobby, I did not feel tired baking all those goodies. But when I decided to continue this as a business, I felt the pressure to think of ways to get additional orders. And at the end of the day, I really feel exhausted. I guess it was a normal reaction since you start to think of earning profits.

Initially, I asked the help of family and friends and had them taste my products. Actually, they were my initial clients. Then, their friends also started to order from me. And when I had the opportunity, I joined small bazaars in subdivisions to introduce my products. I got several orders through it. I also got to advertise my business through the mothers of my eldest son’s classmates.

Actually, I must say that this business continues its existence through referrals and being able to maintain loyal clients who order from you for several occasions.

Q: What advice can you give to those who want to start this kind of business?

A: First and foremost, you have to love baking. It’s a must! Otherwise, you cannot start this kind of business. Then you have to be patient. When I started to think of this as a business, I was so eager to earn the profit right away but it took some time. So you really have to be patient. Also, you must be very realistic and set reasonable goals for yourself and your business. Lastly, you have to make sure the quality of your products remains consistent.

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