On February 20, 2020, I registered my EIN and officially founded Sugarcoated Bakery. Six years later, I’m still here, running a home-based bakery full time, doing work I love, and continually learning along the way.
When I started, my business focused primarily on birthday cakes and decorated sugar cookies for individual clients. Today, the majority of my work is cookie decorating classes and logo cookies for organizations. That evolution didn’t happen overnight, and it certainly didn’t happen without a few hard learned lessons.
If you’re running (or dreaming of running) a home-based bakery, I hope these insights help you navigate your own journey a little more confidently.
1. Not All Farmers Markets Are Created Equal
Early on, I believed that committing to a regular farmers market would be a great way to build brand recognition and a steady customer base. I applied to a local market, asked thoughtful questions about competing vendors, and even reached out to another baker ahead of time to avoid overlap. On paper, it sounded perfect.
What I didn’t ask ended up mattering more.
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How are booth locations assigned? I was placed far from the entrance, while more established vendors were front and center. Customers often didn’t realize there was another baker at the market at all.
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Are there rotating vendors? Another baker—never mentioned by the market manager—attended every other week, sold overlapping products, and was also positioned at the entrance.
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What is actual foot traffic like? I assumed popularity because it was the town’s only market. It wasn’t.
That market has since shut down. If I were to do a farmers market again, I would visit multiple times during peak hours, speak directly with vendors, and observe customer flow before committing.
2. Craft Fairs and Festivals Can Be a Better Fit
What has worked for me are craft fairs and festivals, especially holiday events. Christmas craft fairs, in particular, have consistently been some of my most profitable events.
I focus on three product categories for these events:
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Decorated sugar cookies in gift-ready packaging
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Gourmet drop cookies
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Hot cocoa bombs
At craft fairs, people are shopping for gifts. Packaging matters. Messaging matters. Helping customers visualize who they’re buying for can make all the difference:
“This makes a great teacher gift.”
“These are perfect stocking stuffers.”
That said, alignment still matters. I once participated in a large dog festival and wasn’t placed anywhere near the food court. It was the only event where attendees asked me why I was there. Even large crowds won’t convert if your product doesn’t fit the environment.
3. You Can’t Be Everything to Everyone
Just because you can make something doesn’t mean you should.
Early in my business, I said yes to everything—rice krispie treats, cake pops, gluten-free brownies, custom cakes—because I was chasing revenue. While that phase helped me build relationships and gain experience, it wasn’t sustainable.
During COVID, I became known for six-inch celebration cakes and detailed buttercream designs. Today, I don’t make cakes at all. They’re time-consuming, labor-intensive, and no longer align with what I want my business to be.
Businesses evolve. What serves you in year one may not serve you in year six—and that’s okay.
4. Be Willing to Pivot and Try New Things
When hot cocoa bombs became popular, I jumped in—learning techniques, testing molds, developing flavors, and building an efficient workflow. My husband even helped with production.
The result? A product that paid a higher hourly rate than my previous career and continues to bring back loyal customers every winter, even now that cocoa bombs are widely available.
Trends come and go, but quality and intentional development create staying power.
5. The Health Department Is Not the Enemy
In summer 2024, I moved my bakery into a dedicated condo space and went through inspection with the Virginia Department of Health and Consumer Services. I was nervous—very nervous.
The reality? It was painless. The inspectors were supportive, kind, and genuinely invested in helping small businesses succeed. Becoming inspected allowed me to expand significantly, especially as my business shifted more toward B2B and out-of-state clients.
If you’re on the fence about getting inspected: do it. It’s worth it.
6. You Are Not Your Ideal Customer
I would never pay $5–$8 for a decorated sugar cookie. That doesn’t mean my work isn’t worth it.
Pricing based on what you would pay is a trap. Know your numbers. Revisit them regularly. Factor in skill, labor, and experience. I underpriced many items early on because I didn’t yet recognize the value of what I was offering.
Your customer is paying for results, not your self-doubt.
7. Sometimes You Have to Spend Money to Make Money
I’m naturally risk-averse, but every time I’ve invested intentionally in my business, it has paid off.
Buying my edible printer (Eddie) unlocked major opportunities, including being hired by Amazon for HQ2 events. Later, investing in additional equipment like an electric dough sheeter and Freddie the Frosting machine have allowed me to scale production without hiring staff.
Strategic investments don’t just save time, they create opportunity.
8. Build Relationships with Other Small Business Owners
Many of my biggest opportunities come from relationships:
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Referrals from fellow bakers
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Partnerships with local shops for pop-ups and now wholesaling
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Hosting cookie decorating classes inside other small businesses
Community over competition isn’t just a saying, it’s a business strategy.
9. Build Your Business Around What Brings You Joy
Cakes no longer bring me joy. Decorated sugar cookies and teaching others how to decorate absolutely do.
By focusing my business around what I enjoy most, I’ve become more efficient, more productive, and more fulfilled. Cookie decorating offers me endless creative variation, especially when paired with tools like Cookie Design Lab to elevate designs for corporate clients.
10. Don’t Ignore the Joyless Tasks
Taxes aren’t fun, but they’re necessary. Schedule them. Get them done. Move on.
For tasks that drain energy (for me, that’s social media), I batch and automate wherever possible. Efficiency buys back time and time is the real luxury of owning your own business.
What’s Next?
For now, I’m happy. My business supports my family, allows me to be present for my kids, and lets me focus on the work I love most. A brick-and-mortar storefront may happen someday but today, flexibility matters more.
If you’re on your own home-based bakery journey, I hope these lessons help. And if you have questions, I’m always happy to connect! Feel free to email me at [email protected]