I just calculated and my monthly expenses for my licensed business are going to be around $1500 per month. This is including everything from rent to insurance to an ad in the yellow pages. Am I crazy to think I can pay all of this, let alone pay myself at some point. I am hopeful and have a lot of marketing ideas but also fearful about the obligations. Actually, I am terrified I will fail and have to work full time at a fast food place to pay off my debts . I'm like 90% of the way there. Up until now I have been totally like full steam ahead but now I am actually feeling sick with worry. My parents are helping me in this endeavor and I just can't screw up. I could only post this here where maybe someone can understand my fears. I am trying so hard to be positive and trust God that this will work out. I am truly, truly afraid that I am in over my head. The great thing is that I am renting a kitchen from wonderful people who are helping me market. I am considering doing some light catering (boxed lunches and such) to make ends meet until I can get the money I want/need from the cakes. I was so excited about this place and how reasonable the rent is, then all these other expenses kept growing and now... I just needed to get that off my chest. Thanks for letting me vent and if anyone has suggestions, ideas or whatever please let me know. Thanks!

One way to look at it is to examine the worst thing that could happen. If you can survive those consequences, then the risk is worth it.

Have you consulted anyone about your expenses? $1500 a month seems like a lot of overhead, if you have good rent like you say. I have my own kitchen and only pay $500 a year for $2 million policy. Maybe there are alternatives you haven't considered?

Is the yellow page add, required? They are very expensive. A Simple line listing under "bakery" is generally free.

Are there any things you can postpone or reduce? Feel free to PM me, if you think I might be able to help with suggestions or alternatives.

1500 a month...

375 a week + or -
=

a wedding cake a week(would do it plus a bit more)
or
30 8"rounds(calculating on a low end)
or
50 dozen cupcakes
or
or
or
Don't look at it on a big scale...break it down to a doable scale....400 a week seems more achievable than 1500 a month.
I believe if you've come this far, you can definitely do it.
From what I hear, everyone gets the "jitters".

All the best to you!

I agree with both all4cake and JoAnnB.

I haven't started a business but was closely involved in a friend's business venture.

If you know you have a great price on rent, start there. It's great!

Yellow page ads are crazy expensive and personally, I haven't opened my yellow pages in about 5 years. I always go on-line. I think around here yellow page ads cost $300-ish a month for the 4-liner with a box around it? YIKES!

Word of mouth is cheap, and so are a lot of web postings. If you haven't already, try google searching "wedding cake vendors" and see what sites come up that you can get your name listed on for free. I don't know what www.theknot.com costs, but my friend works at a popular DJ company and they constantly monitor that site b/c it's pretty popular. They have vendor listings organized by location so it's easy to search.

(Think what your customer will search when they look for your type of cakes.) Try to get listed on the sites that come up on the first page if it's not expensive.

Get your name out there in the local papers. Write a press release for yourself and send it out. They don't always run everything right away, but you never know! This will work pretty well if you have an interesting story to tell, starting a business, joining up with an existing business, donating cakes for charities, etc...

See if you can donate cakes to non-profit fundraising events. You'll probably get listed in the program and get some exposure that way.

Anything party related you can think of, try to show up at to promote your cakes.

I guess my first suggestion is first to try to get as much FREE advertising as you can. Get your business name in people's heads so they will think "I've heard of them somewhere" even if they just saw flyers around town. And then be selective about where you spend your advertising budget.

Watch all of your expenses closely especially in the beginning so you don't get into the habit of spending where you don't need to. I watched first-hand as some very bright people pretty much flushed $$ away on things that wern't necessary for their small start-up business. (like a receptionist so they looked more "professional" and expanding office space just so they didn't have to sit so close to each other, etc. That's a whole nother story, don't get me started!! LOL!). They were thinking too big in the beginning and jumped in head-first with a lot of monitary obligations. Keep it in check and you'll be fine!

And, like all4cake mentioned, break it down to weekly and it seems much more managable. And branch out where is seems to work with the cakes. Cookie boquets, catering desserts, etc might be a good way to bring in more $$ without having to purchase new equipment and keep unrelated supplies on hand.

You're going to be fine. Plus, you're lucky that your parents are helping you out. Arrange a payment schedule to pay them back (even if it's an "eventually" timeline), with interest, if it makes you feel more comfortable. Then you don't have to worry about it so much, you're still holding it up on your own. Many people aren't so lucky and have to deal with a bank if they can even GET financed at all!

You're going to do great. If you've gotten 90% there and are just starting to freak out, I'd guess you're getting cold feet. You'll never know unless you try.

Or think of it this way:
Which would you regret more (sorry, this isn't going to help your doubts, but something to think about anyway!) not trying at all and never knowing how it would go OR trying and being unsuccessful (a learning opportunity! - you could try again later with what you learned!) OR trying, being really successful and making good money and having a TON OF FUN doing what you love?


Keep us posted! I'm rooting for you! good luck!

I would whole heartedly suggest doing away with the yellow pages and go for the online advertising. Check out how much to have your own web page and as they say a pic is worth a thousand words. I would also check (as in my city) we have a community paper and advertising is super cheap. Also since you have a computer type up your own business cards and get friends and family to pass them out everywhere. I have also seen people starting up a food business go around with a taster tray to get customers to come in and look. You could also try flyers with your taster tray to give customers an exaple of your work and prices. I wish you all the best in your endeavour and will say a special prayer for you as you are doing something I wish I could. Good luck and keep you chin up after all its better to try and fail than to spend your whole life saying what if. But I think you will be fine

Darlene

Thank you so much everyone! I am reconsidering the yp ad, DH talked me into a much more expensive ad than I originally wanted since the other "name" in cakes around here has a big one. The weird thing is that most people here do use the yp, it's not a huge town and it includes an online listing/link. I am trying to figure where to get the most bang for my buck. Basically I have to get the plumbing work done (next week hopefully) and install equipment and get inspected. Oh yeah and clean of course . The HD basically came in and is requiring a bunch of nonsense but what choice do I have? I have told myself I would rather try than take the "safe" road and regret it later. Thank you for your suggestions and the encouragement. I guess I am just getting the jitters and cold feet. Thanks again, your words mean so much, it's like a hug.

I haven't gotten nearly as far as you on your business so congrats to you. I am currently just planning and contacting and researching. What if you contacted local elementary schools and you could sell cupcake parties. I'm sure there would be plenty of parents who would jump at this since time is of the essence and so many people are busy. Think about it. How many kids and how many birthdays in just one school. You could maybe print up flyers and have them handed out to the teachers. Or get with the Pta and maybe do a raffle to win a birthday cake(they could sell raffle tickets for like a buck keep the money from the raffle tickets and you get exposure your business needs.)I really wish you the best of luck!!!!

ok here is my too cents worth if you want it. i do agree the yellow pages are expensive . they say it usely takes about a year to make a business really where you can get a pay check.

The main thing is location location location. Here on saturdays we have a thing on the radio the is called the byersw market it where they have business that need to advertise so they give the people a discount on something that is to get people in there business. also see if you newpaper has a section for new business some time they do it for free. or see how much a small add would be.

Go around and put up some filers like on a buliten board about your new store opening, you can make a nice one on the computer and photo copy them. but most of all it is word of mouth. my friend did a thing that if they refered 3 friends and they bought something she would give a to her a discount . ok i shut up know lol good luck

Thank you for your replies and well wishes. I am sitting down to make a list of all the ideas I can think of for marketing and promotion. I've got a good start with the ideas above.