Many people fantasize about starting a dog bakery business. The advantages are numerous. The work can be part-time, so you can keep your day job while working on it on the weekends or after work. Start up costs are relatively low. You probably won't need to go for an SBA loan or max out your credit cards. And of course it involves cooking and dogs, which are passions for many people. However, don't get carried away. Because the barriers to entry are so low, competition is quite intense. Be sure to do online research before getting your feet wet or you might find yourself with a sizable lost and a couple hundred dog treats.

One of the first steps you will need to take is finding dog treat recipes. You can buy these online for a small amount of money. You will probably want to differentiate yourself from competitors. See if you can specialize (low fat, low sodium, organic, etc.). Also it would probably be a good idea to offer several different types of meat (beef, chicken, etc.) Try experimenting with various recipes and combining them. If you manage to create a hit product you can really build your name and client base (not to mention profits.)

Also, be sure to fully research what the food vending laws are in you area (which typically vary from state-to-state.) In some states, it is against the law to sell food products produced in a household kitchen because of safety reasons. Don't despair if this is the case. You can rent an industrial oven to produce your goods. However, obviously using your home oven is preferable – not only for the cost but also the convenience. If you starting doing well and build a steady client base it might make sense to upgrade your facilities after awhile.

Marketing is quite important when it comes to the dog bakery business. Don't use a cheap sandwich bag for your products. By some fancy plastic bags online and put your business card in each one. You will also need to come up with a marketing strategy. Attend dog owner events and hand out free samples.