I didn’t set out to start a business, I was just obsessed with sourdough… truly! Baking 10-15 loaves a week, giving them away to friends and documenting it all on instagram.
Thank you for reading this post, don't forget to subscribe!Then someone asked if I sold bread. And then someone else. And then a friend who owned a market asked if I’d consider doing wholesale. So I said yes. And just like that, I had a microbakery 😳
Here’s exactly how much money I made in my first year of business – and what I learned along the way. If you’re wondering how to start a cottage bakery from home and turn sourdough into a source of income, this post is for you.
My First-Year Income Breakdown (2023)
Let’s get right to it. In my first year as a cottage baker, I made:
- Wholesale: $13,000
- Porch Pickups: $9,000
- Workshops: $15,000
Total revenue: $37,000
Around $12,000 of that went straight into reinvesting – buying a bigger mixer, a bread oven, a fridge, and all the things that made baking at scale actually doable. My profit margins were roughly 75% on baked goods, and even higher for workshops.
How It Started
The first thing I did was take a wholesale order for a small market. (If you’re new to the term, wholesale just means baking in bulk and selling your bread to another business – like a local shop or café – that then sells it to their customers.)
I was baking or prepping bread every single day. Although I had fun making some extra money, it was constant. And it burned me out fast.At the same time, I started offering porch pickups – customers ordered online through my Hotplate website, then picked up their loaves from my front porch. It was simple, it was mine, and I loved connecting with my costumers face-to-face.
The Shift That Changed Everything
10 months into my cottage bakery adventure, we moved into our first home, and I decided to go all-in on porch pickups. I had been burned by one of the business owners I was working with and with all the other transitions going on in my life, it just seemed like the right time to stop wholesale altogether and to finally make the jump to my dream baking schedule: one big bake day, with prep the day before, and then the rest of the week to rest.
I am also blessed to have some wonderful help from grandparents, who are able to watch the kids during my bake and prep day.
I was still using Hotplate to manage orders and send out text notifications to my customers. People would get a text, click the link, see what I was offering, and place an order. Thankfully, most weeks I was selling out!
Seriously, I’m so thankful for Hotplate! It makes it feel like you have a tiny virtual storefront without the overhead. You can check it out here.
And pretty early on – like a month or two after I started selling bread – I began teaching beginner workshops. I would take groups of 6-15 people and teach them everything they needed to know to start their sourdough journey themselves. I charged $80-$100 per person and made $15,000 that first year from workshops alone. I put together everything I’ve learned into a Masterclass: How to Teach a Sourdough Workshop. It’s helped nearly 400 bakers run their own, and I think you’ll love it.
Hiring Help (AKA The Best Decision I Made)
At the start of 2024, a year after I started my Microbakery, I hired help. Was it terrifying? Yes. Was it necessary? Also yes.
I used about 20% of my revenue to bring in a baking assistant and someone to help with cleaning. I paid well, and I hired someone I already knew and trusted. The result meant a smaller profit margin in my business, but more margin in my life.
Trying to do everything yourself doesn’t earn you extra gold stars – unless you are at a sustainable capacity, it just guarantees burnout. Let someone take the dishes or prep the cookie dough… it’s still your bakery. You’re just giving yourself a little room to breathe (and maybe some time to read again!).
Could I Grow It Bigger?
Absolutely. I could open a storefront, expand, scale. But I don’t want to… not right now 🤗I love working from home. I love being present with my kids. I love that I get to build a bakery that fits my life – not the other way around.
A Few Things That Worked
- In-person workshops: Community-building + great revenue. Learn how to run your own here.
- Hotplate text drops: Try Hotplate here.
- Two-day workflow: One day to prep, one to bake. Then rest. (Although for a lot of stay-at-home mums this doesn’t work either! So you just need to find what works for you).
Letting go of what didn’t work: Saying no to wholesale gave me room to breathe and the confidence to build my own customer base.
Final Thoughts
My first year as a cottage baker brought in $37K. But more than that – it gave me clarity, confidence, and a business that feels aligned with the rest of my life.
If you’re dreaming about starting your own cottage bakery, don’t wait until you have the perfect name or logo… just start! Check your local cottage food laws, bake a loaf, offer it up, and see what happens.
And if you want to make it sustainable, I’ve got two tools that changed everything for me:
- Hotplate – for text-based ordering and streamlined bread drops
- My Workshop Masterclass – a full guide to hosting your own sourdough workshops
This path is possible. Even if you’re starting with one loaf 💕
Happy Baking!
Sarah Grunewald
