Hi Y - first, if there is the opportunity, then go for it. I would support anyone making an effort to start up and wish you the best at this!
Points to consider though, and forgive me if its not more than the idea at the moment and the following make the idea seem too daunting, but you might want to consider:-
-it has to go far beyond an idea - businesses will be relying on you to supply on a regular basis - let a small deli down once and they turn to the many alternatives...no discussion...
-the commtiment - you bake, you sell, you distribute, you do the books, you do the ingredients ordering, stock take and rotation and record keeping.....
-what is the unique thing you have to offer - fresh? organic? local sourced? etc etc - that makes the business viable? A start up exists because you have researched the reseach you have done about the research for the business.
-have you tested the market for the cakes - tried selling at a farmers' market etc - and is the customer base enough - even as a hobby business, there are costs involved so do the sums add up?
-re env. health - call your local Council for the up to date gen. - they are very happy to offer support and comments to get you up and running - they are not there just to tackle dodgy cafes etc.
-yes, you need the certificate, but as you will be making goods to sell to the public, you will also need insurances (public liability). If you employ anyone, you must have the intermediate cert. not just the basic one too.
Costs vary and the Council will advise - you can take the course at he local College for example, or give The Prof. a go at:
http://www.ukfoodschool.co.uk - online course I have used before now. Basic �45 / Int. �75 about what to expect from a College too.
Look into grants/funding from the Co