The Secret to Starting Your Cookie Business Right
The Secret to Starting Your Cookie Business Right
Starting a cookie business is exciting, but let’s be honest — it can also feel overwhelming. You’ve got recipes you’re proud of, friends and family cheering you on, and maybe even a line of people already asking, “When can I order?” But the minute you start thinking about selling to real customers, a flood of questions hits you:
Do I need a license?
How do I set my prices?
Where do I even find customers?
What if I mess up an order?
Take a deep breath. You don’t need all the answers right away to start strong. What you do need is a clear path that helps you move from “baking for fun” to “running a cookie business” without getting stuck in the details.
In this post, I’ll share the five most important steps to starting your cookie business the right way. These aren’t complicated — they’re practical, proven steps that home-based bakers (like my fiancée, Stefanie) have used to grow real businesses. In fact, following these steps helped her turn weekend hobby sales into a full-time cookie business that now brings in thousands of dollars in orders each month.
If you’re ready to start your cookie business with confidence, keep reading.
Step 1: Get Legal and Licensed
The first step is making sure you’re allowed to sell cookies in your state or region. Every area has different rules about “cottage food laws” — the regulations that let you sell baked goods from your home kitchen.
Some states are very relaxed. They’ll let you sell cookies directly from your home, at farmers markets, or online with just a basic registration. Others require food handler permits, inspections, or limit what kinds of cookies you can sell (for example, shelf-stable cookies only).
Here’s what to do:
Google “[Your State] cottage food law.”
Check if you need a permit, food safety training, or labeling requirements.
Keep it simple at the start — don’t worry about commercial kitchens or storefronts. Most successful bakers started small under cottage food rules.
Getting legal from the start gives you peace of mind and builds trust with your customers. You’ll never have to worry about “getting caught” selling cookies without approval, and you can proudly say you’re running a legitimate business.
Step 2: Price Your Cookies for Profit
This is the step where most new bakers struggle. It’s easy to underprice your cookies because you’re comparing yourself to the grocery store, or because you feel guilty charging for something you love doing.
But here’s the truth: if you want your business to last, you need to price for profit, not just for covering ingredients.
When Stefanie first started, she was charging $20 a dozen for decorated cookies that took her hours to make. By the time she paid for flour, sugar, butter, eggs, packaging, and decorated each cookie by hand, she was making less than minimum wage.
Sound familiar?
Here’s how to fix it:
Track every cost: ingredients, packaging, labels, even gas for deliveries.
Add your time: your labor matters. Decide what your hourly rate is worth.
Add overhead: licenses, utilities, website hosting — all of that counts.
Set a baseline price: then adjust for complexity, design, and custom orders.
👉 Need help crunching the numbers? Use my free Sugar Cookie Pricing Calculator to make sure your cookies are priced for real profit.
Pro tip: Don’t race to the bottom on pricing. Customers buying custom cookies aren’t looking for the cheapest option — they want beautiful, delicious treats for special occasions. Charge what your time and skills are worth.
Step 3: Build an Online Presence
This step alone can make or break your cookie business. If people can’t find you online, they’ll go to someone else — even if your cookies are better.
At minimum, you need two things:
A website — even a simple one with your menu, pricing, photos, and order form.
A Google Business Profile (GBP) — so you show up when people search “custom cookies near me.”
When I built Stefanie’s website and set up her Google Business Profile, she started getting orders from people she had never met — local parents, wedding planners, and even an auto dealership. Within weeks, she was booked solid, and the site alone brought in over $2,000/month in extra orders.
You don’t need a huge budget or fancy tech skills to make this work. A clean, mobile-friendly website and a free GBP listing will instantly make you look professional and trustworthy.
Step 4: Promote Locally
Once your legal setup and pricing are ready, start getting the word out. Don’t overthink marketing in the beginning - keep it local and simple.
Here are a few easy ways to promote:
Farmers markets & pop-ups: Sell cookies and hand out business cards.
Facebook & community groups: Post photos of your cookies with a clear call to action like, “Taking Valentine’s orders now!”
Local businesses: Drop off sample cookies at coffee shops, salons, or boutiques with your card.
Flyers & word of mouth: Old school, but effective. Ask happy customers to tell their friends.
Every order is an opportunity to create a raving fan. Deliver on time, package beautifully, and include a little thank-you note. Small touches go a long way in getting repeat orders.
Step 5: Think Systems, Not Stress
This is the step that separates hobby bakers from business owners: setting up systems.
When orders start rolling in, it’s easy to get overwhelmed — texts coming in at all hours, losing track of payments, forgetting pickup times. That’s why you need simple systems to manage your business.
Some ideas:
Order forms: Collect details in one place instead of through scattered messages.
Invoices & payments: Use online tools so customers can pay easily.
Automated reminders: Confirm pickup times and reduce no-shows.
Email list: Send updates about new flavors, holiday specials, or availability.
When Stefanie switched from texting everyone to using an online order form and automated reminders, her stress dropped instantly — and customers loved how easy it was.
The best part? Once your systems are in place, you can focus on decorating cookies and growing your business instead of chasing down details.
Wrapping It Up
Starting your cookie business doesn’t have to feel overwhelming. By following these five steps — legal setup, profitable pricing, online presence, local promotion, and systems — you’ll build a strong foundation from day one.
Remember: you don’t need to be perfect to start. You just need to start. Every successful baker you admire began with a first sale, a small menu, and a lot of learning along the way.
So go ahead — take the leap, bake that first dozen, and put your cookies out into the world.
And if you want more help growing your business, I’ve got a free resource for you:
👉 Sweet Success: 5 Must-Follow Marketing Strategies for Cookie Businesses
This guide breaks down the exact steps Stefanie and I used to grow her home bakery into a full-time business. Download it today and set yourself up for sweet success.
