How To Start A New Cake Decorating Business?

Business By bobwonderbuns Updated 25 Nov 2006 , 1:01am by amandasweetcakes

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bobwonderbuns Posted 24 Nov 2006 , 2:49pm
post #1 of 5

Hello, I am new to Cake Central and have been decorating cakes for about a year now. I would very much like to have my own business, but truthfully I am not business minded and I'm very overwhelmed at trying to figure out what is involved, the laws, etc. In my own experience, my cakes sell by word of mouth and around here (Southeastern Michigan) I'm a bit more expensive but everything I make is homemade and handmade. I prefer to do special occasion cakes as opposed to regular buttercream birthday cakes. I've been having great difficulty with customers -- I occasionally give samples (small and free -- limited amounts) and everyone likes free food, but when they have to pay for it?? Now that's another story! I also have problems with customers "demanding" to know what their cakes will cost on the first phone consultation. I tell them my per-slice prices but this doesn't seem to satisfy them and often I lose business.

Can anyone offer a basic outline of what a newbie would need to be aware of to start her own business and also help with dealing with customers? I've got the decorating part down, it's the rest of this that has my head spinning! Thanks!!

4 replies
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amandasweetcakes Posted 24 Nov 2006 , 7:13pm
post #2 of 5

I am also fairly new to the cake biz. But I'll share my experiences with you. I get most of my business by word of mouth. I tried doing some advertising in local catholic church bulletins, that was a HUGE waste of money! I will never do it again. I also advertised in some local school event bulletins, again I got no leads. So any type of print advertising has done me no good at all. I did call some local restaurants that have banquet facilities to see if they needed a cake person. I was able to work out a deal with one local restaurant. They have a book with my pics and some basic pricing they show to possible clients. I've gotten a few cakes from them. One of the best thngs I did was a Food Tasting Event. I was invited to participate in the local chamber of commerce's food event. It was nice because I did not have to pay for a booth only my ingredients and supplies. I got a lot of positive feedback and have already gotten several orders. My neighbor also held a holiday open house with vendors from Pampered Chef, etc. I took some cake and my pics. That also, worked well. I have a potential order for cookies for a company that could bring in upwards of $7500 next year.

As far as customers wanting quotes immediately, I try to give a ballpark price range, but tell them it could definitely change once I sit down and calculate everything. I, also had trouble sticking to my guns, so to speak with pricing, because you don't want to turn anyone away. but I have gotten much firmer about it. I have my starting price list and I stick to it. If they don't like it, too bad. People have to realize everything you do is custom. Unlike a cheap grocery store, where cakes are bought by the hundreds for pennies, frozen thawed and refrozen before they are sold. I try to emphasize that my cakes are custom from start to finish.

Lastly, I recently put my name on superpages.com and other listings like that for free. And I have been getting calls.

If you live near any upscale areas, try to leave some business cards in shops. You need clientel that are willing to pay a little extra for quality. I have left business cards at many local shops, party stores, toy stores, etc.

Hope this helps! icon_biggrin.gif

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bobwonderbuns Posted 24 Nov 2006 , 10:11pm
post #3 of 5

That does help, thanks! What about licensing and laws and stuff like that? What is your experience there?

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TPDC Posted 25 Nov 2006 , 12:49am
post #4 of 5

Check with your department of health or department of agriculture. Minnesota, the Dept. of Ag. license us, but I am not sure about Michigan.

Hope that helps.

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amandasweetcakes Posted 25 Nov 2006 , 1:01am
post #5 of 5

Sorry, I forgot the liscesnsing part. I was nervous to take care of that for fear that it might be difficult or prevent me from selling cakes all together. I live in PA, so I called the Dept of Agriculture. They were very helpful, it was very easy and I am liscensed. I really didn't have to do much more than meet with a rep from the dept.

Good Luck!

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