Getting started
Start Biscuit Business: 5 Steps and Your First Costs
A clear path to launch your biscuit business, with real costs and state rules.
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What to remember
- Your state’s cottage food law decides what you can sell.
- Price must cover ingredients, your time, and overhead.
- Start with a simple menu and a clear customer promise.
Starting a biscuit business lets you turn your kitchen skills into income. This guide walks you through the first steps and costs. You can find more on the basics at our getting started hub.
Check your state’s cottage food rules first
Your home kitchen is your bakery under cottage food laws. These laws vary by state. They tell you what you can bake, where you can sell, and if you need a permit. The National Agricultural Law Center provides a state-by-state directory.
Some states limit sales to farmers markets or direct orders. Others allow online sales. Many require a simple food handler course. Check your state’s rules before you buy supplies. This step prevents costly mistakes.
Key rules often cover allowable products and sales venues. Most states permit non-potentially hazardous goods like biscuits. Some states have annual sales limits. You must label your products with specific information.
Count your start up costs
Your first costs for a biscuit business are often under $500. You likely have most kitchen tools. New costs include business registration, packaging, and ingredients for your first batches. See a detailed breakdown in our guide on cake business start up costs.
Permit and registration
A cottage food permit or business registration can cost $50 to $200. Some states have no fee.
Packaging and labels
Order bags, boxes, and compliant labels. Budget $100 to $150 for your first run.
Initial ingredients
Buy flour, butter, and other staples in bulk. Set aside $150 to $200.
A simple sales channel
You can start with social media for free. A dedicated shop page costs about $20 a month.
Price your biscuits for profit
Pricing covers more than flour and butter. You must include all ingredients, your labor, and a share of overhead like power and packaging. Then add a profit margin. A worked example shows how.
For a batch of 12 biscuits: Ingredients cost $4.50. Packaging for the dozen costs $1.50. Your labor for mixing, cutting, and baking is $10 for 45 minutes. Overhead (power, kitchen wear) is $2. Total cost is $18 for the dozen. A 50% profit margin adds $9. Your final price is $27 per dozen, or about $2.25 per biscuit.
This example uses a 50% margin on the total cost. That margin is your business profit after you pay yourself and all expenses. It funds growth and covers slow weeks. Always calculate margin on the full cost including labor and overhead.
Choose your first sales method
Start simple. Sell to friends, at a local farmers market, or through a Facebook group. Take pre-orders for pickup. This tests your recipes and pricing with low risk. As orders grow, a dedicated shop page helps you manage them.
A shop page shows your biscuit varieties, prices, and pickup times. It lets customers order and pay without back-and-forth messages. Brevl gives you a shop for one flat $20 a month with no commission on sales. It works on your phone and computer.
Build your core biscuit menu
Begin with two or three proven recipes. A classic buttermilk biscuit is a strong foundation. Add one flavor variation like cheddar chive or honey butter. This keeps ingredient inventory simple and reduces waste.
Perfect your process for these few items before expanding. Consistent quality builds a loyal customer base. Document your recipe yields and baking times precisely. This data is crucial for accurate costing and scheduling.
Consider seasonal specials later. A pumpkin spice biscuit in fall can boost sales. Test seasonal recipes well before a launch. Ensure new ingredients fit your budget and storage space.
Manage your ingredient supply
Buy staples like flour and sugar in bulk from restaurant supply stores. This lowers your cost per batch. Store them in airtight containers to maintain freshness. Track how much you use per dozen biscuits.
Butter is a major cost driver. Watch for sales and consider freezing extra. Measure your actual usage including what sticks to wrappers. This true cost must go into your pricing calculations.
Create a weekly shopping list based on your batch plan. Order packaging supplies in advance to avoid rush fees. A small inventory system prevents last minute shortages that delay orders.
Avoid these three money mistakes
New bakers often lose money on these points. Check them before your first sale.
Underestimating packaging cost
A simple bag can cost 25 cents. A branded box with a liner can cost $1.50. Factor it into every price.
Not tracking ingredient waste
Butter wrappers, eggshells, and spilled flour add up. Measure your actual use, not the recipe’s ideal amount.
Saying yes to custom orders too soon
Special flavors or gluten-free requests need new ingredients and testing. Stick to your core menu until you have steady sales.
Plan your first week of sales
Make a batch plan. Decide how many dozen you can bake in a day without burning out. Schedule pickup times. Use a tool like Brevl’s weekly planner to match baking days with order deadlines. This keeps you from overpromising.
Tell your network your launch date. Share photos of your biscuits. Offer a small discount for the first ten orders. Use a 14 day free trial of a shop platform to take those orders smoothly. A real person at Brevl can help you set it up.
A detailed worked pricing example
Here is a full breakdown for one dozen buttermilk biscuits. It includes every cost category to show the final margin. This example uses a $20 hourly wage for labor.
Ingredients: Flour $0.75, Butter $1.80, Buttermilk $0.60, Leaveners & Salt $0.35, Total $3.50. Labor: Mixing and shaping 15 minutes ($5), Baking and monitoring 15 minutes ($5), Cooling and packaging 15 minutes ($5), Total Labor $15. Overhead: Packaging $1.50, Electricity for oven $0.50, Kitchen supplies depreciation $0.50, Total Overhead $2.50.
Total Cost is Ingredients $3.50 + Labor $15 + Overhead $2.50 = $21. A 50% profit margin on this cost adds $10.50. The final price per dozen is $31.50. This price covers all costs and leaves a true business profit.
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- Learn how to start a small home bakery business in six steps.
- See how to start a cookie business with first costs.
Common questions
Do I need a business license to sell biscuits from home?
Most states require a cottage food registration or permit, not a full business license. Check your state's rules. The registration is often a simple form and a small fee. It allows you to sell certain low-risk foods from your home kitchen.
How much should I charge for a dozen biscuits?
Charge enough to cover all costs and pay yourself. First, add ingredients, packaging, and your labor time. Then add a share of overhead like electricity. Finally, add a profit margin. For example, a $18 cost per dozen plus a 50% margin leads to a $27 price. Always check what your local market will pay.
Can I sell my biscuits online?
It depends on your state's cottage food law. Some states allow online sales for direct pickup or local delivery. Many do not allow shipping across state lines. Your best start is to sell locally through a shop page that manages pickup orders and payments from customers in your area.
What is the biggest cost in a biscuit business?
Your own labor is often the largest cost. Ingredients like butter and flour are visible, but your time to mix, cut, bake, and package is valuable. If you do not account for it, you work for free. Always include a fair hourly wage for your work in your pricing.
How do I find customers for my new biscuit business?
Start with your personal network. Announce your business on social media. Consider a stall at a local farmers market. Offer a referral discount to your first customers. A dedicated shop page makes it easy for local customers to find you and place orders.
Should I offer different biscuit flavors?
Begin with a simple core menu of two or three varieties. Master production and costing for these before adding more. Too many flavors at launch can complicate inventory and increase waste. Introduce seasonal specials only after you have steady sales.
Sources
This guide provides general business information. Cottage food laws vary by state and change. Check your state's official resources for current legal requirements.