Has Anyone Rec'd A Grant?

Business By aprilmanning Updated 9 Jan 2007 , 9:45pm by Melvira

aprilmanning Cake Central Cake Decorator Profile
aprilmanning Posted 4 Jan 2007 , 7:19pm
post #1 of 29

Well, I've been told once again that I can't bake/decorate cakes in my home - that it has to be a seperate building. So, now my only option is to find something to rent or build a seperate building on my lawn. icon_smile.gif But, I don't have the funds to do these things and I don't think I have good enough credit to get a loan. So I was thinking about grants and thought that it might be possible. But I was wondering if anyone here has gotten a grant to start up a business, or knows anyone that has? If so, please share your experience with me. I'd be interested in knowing how long it took to get one, how much you were able to get (if you don't mind sharing), etc. I want to do this so bad but I just don't see a way! icon_sad.gif

28 replies
SweetConfectionsChef Cake Central Cake Decorator Profile
SweetConfectionsChef Posted 4 Jan 2007 , 8:27pm
post #2 of 29

I checked into grants while I was opening my shop and let me tell you...there aren't really any for opening a bakery. Most of them are for continueing education, employee training, handicap access...and very hard to weed through all of the red tape. Even Andrew Leskow (sp?) book is full of it. My best advice, if you don't have the capital, is to start saving or apply for an American Express (NOT business) card because there is usually no limit or a very high one.

chaptlps Cake Central Cake Decorator Profile
chaptlps Posted 4 Jan 2007 , 8:36pm
post #3 of 29

Ok,
Sweet I have a question for ya hun,
How did you write your business plan and whom did you talk to to get your info on your competitors and how did you do the research for pricing etc.....
I know, I know a lot of questions all smooshed together. LOL
Any advice from any shop owners would be wonderful.

SweetConfectionsChef Cake Central Cake Decorator Profile
SweetConfectionsChef Posted 4 Jan 2007 , 8:47pm
post #4 of 29

chaptlps, I didn't write a formal business plan. What I did was right down goals in a notebook that I could understand and have followed it for the most part. I had to sway away a bit when I realized people were only going to buy what they wanted and not neccessarily what I wanted to sell! I had no intention of doing decorated cakes....but that's what people wanted so I bought some books and took a class and here I am! BTW, the booked helped a lot more than the class! icon_wink.gif

Checking out pricing: I live in a town of 4 million people so just cruzin' the streets wasn't gonna happen! I looked up bakery's online and visited a couple of show rooms. The web is a great place to find out info!!

chaptlps Cake Central Cake Decorator Profile
chaptlps Posted 4 Jan 2007 , 9:03pm
post #5 of 29

o ok.
I live in a small rural area and most competitors are unwilling or actually unable to disclose those things.
Cakes are big business for the local Walmart here. (used to work there) but as for the rest of the area I don't know.
I do know that it's a niche that needs filled with specialty stuff but not a lot of people know that they can get that locally.
I also have another question. How did you educate your clientele as to what you could do? Around here, I think people in my area think that there are only two flavors of cake; chocolate or vanilla. So i guess, what I am trying to ask is....How do you get your clients to try new stuff, and let them know that there are all kinds of wonderful flavors out there, like kiwi strawberry, whitechocolate-rasberry, etc. (here's the kicker), without going broke making samples.

RisqueBusiness Cake Central Cake Decorator Profile
RisqueBusiness Posted 4 Jan 2007 , 9:03pm
post #6 of 29
Quote:
Originally Posted by chaptlps

Ok,
Sweet I have a question for ya hun,
How did you write your business plan and whom did you talk to to get your info on your competitors and how did you do the research for pricing etc.....
I know, I know a lot of questions all smooshed together. LOL
Any advice from any shop owners would be wonderful.




Hi

I've written 2 plans..one was my "fantasy" place and one was a more 'realistic" version.

to get info on your nearest competitors...just google...the type of place you want..

I googled Cake Decorating Supplies or Custom Cakes, I included in my plan the ones within a 20 mile radius. I also went online to see if they had prices lists and made my prices to compete with them.

chaptlps Cake Central Cake Decorator Profile
chaptlps Posted 4 Jan 2007 , 9:17pm
post #7 of 29

ooo,ooo ooo,
I also wanted to add, that none of the cake shops or bakeries for that matter, in my area, are even in the 21st century yet, as none of them even use a computer for any cake related info or websites. So I am really kind of in the dark about their prices n such. Right now, If someone asks me if I have a website, I tell them I don't as of yet but that I do have my pics on c.c. here and give them the addy to take a peek.
I do know that Walmart sets the precedent for pricing of cakes around here (not good for mom n pop stores). But beings, I no longer work there, customers are going to be hard pressed to find someone who can do what I did for them. (one of the reasons I quit, so that I could expand myself creatively.)
I am hoping to open my own cake shop and bakery sooner than later. I already have an idea and have started on my business plan. I guess the most confusing part is the "data" part the spreadsheet matrices and documentation that you need to show your solvency or lack thereof.

chaptlps Cake Central Cake Decorator Profile
chaptlps Posted 4 Jan 2007 , 9:21pm
post #8 of 29

ooooooooo crap, I just realized that I hi-jacked april's post. OMG, I am sooo sorry hun!!!!!

aprilmanning Cake Central Cake Decorator Profile
aprilmanning Posted 4 Jan 2007 , 9:36pm
post #9 of 29
Quote:
Originally Posted by chaptlps

ooooooooo crap, I just realized that I hi-jacked april's post. OMG, I am sooo sorry hun!!!!!



ROFL - that's okay! I was just reading through the replies and I was so confused.... I was trying so hard to figure out if all of this had anything to do with grants or if I was just REALLY way off on the whole grant thing. icon_razz.gif That was so funny... No problem though because I live in a rural area too so your responses were helpful all the same. icon_smile.gif

chaptlps Cake Central Cake Decorator Profile
chaptlps Posted 4 Jan 2007 , 10:58pm
post #10 of 29

I, too, was looking into the "grant" thing. All I found was stuff for people in the medical industry. You know the ol' "obesity in children" study etc. etc. I had horrid and wicked thoughts about applying for one of those but sheesh that would be ironic wouldn't it. hehehehe LOL
You might go to the SBA site and see what they have for women. I think that they have a special section just fer us ladies (as it were) lol. There might be something that we could get. Who knows.
I do know you DO have to have a concise business plan before you even consider applying for one of these grants.

jenncowin Cake Central Cake Decorator Profile
jenncowin Posted 4 Jan 2007 , 11:14pm
post #11 of 29

I to have done some searching for grants with no luck. The ones that I found dealt with healthcare or underprivledged minorities to help with training. It's frustrating. I also checked out the SBA site and they will help match what you can get in loans. But for those of us that may have a problem with getting a business loan, that doesn't do us any good.

I have a question for those of you that have put together business plans, is there somewhere online that someone could get a copy of a plan, or is it something that you made on your own?

I'm in the same boat at April, I want to start my own, would like to in my home, but have to have a seperate kitchen. I live in a mobile home park at the time, so adding on isn't feasible. We're are planning on buying land within the next 6-9 months, so expansion is going to be possible there whether it's adding on or building a small building.

Hopefully out fellow CCers can shed some light for us.

Jenn

chaptlps Cake Central Cake Decorator Profile
chaptlps Posted 4 Jan 2007 , 11:16pm
post #12 of 29

They have great templates for business plans specifially for restuarants etc. on www.about.com
you could download a template from there

aprilmanning Cake Central Cake Decorator Profile
aprilmanning Posted 4 Jan 2007 , 11:38pm
post #13 of 29

There is a woman about six miles down the road who has a cake decorating business that has built a little building next to her house and she operates out of there. (when I say little, I mean it's no bigger than one of the larger storage buildings you can get at home depot, lowes, etc.) That sounds like a good idea except for having to buy all of the equipment to to get started (ovens, sinks, etc.) If I could just get one of those buildings somehow, I'd seriously consider ripping all of my counters and appliances out of my home kitchen. hahaha!

Jenn - hopefully we'll get our break soon, until then, I'll keep on trying to talk someone out of their money. haha

Chaptlps - thanks for the link, hopefully that will keep me busy for awhile!

justsweet Cake Central Cake Decorator Profile
mypastrychef Cake Central Cake Decorator Profile
mypastrychef Posted 5 Jan 2007 , 1:23am
post #15 of 29
Quote:
Originally Posted by chaptlps

o
Cakes are big business for the local Walmart here. (used to work there) but as for the rest of the area I don't know.

I also have another question. How did you educate your clientele as to what you could do? Around here, I think people in my area think that there are only two flavors of cake; chocolate or vanilla. So i guess, what I am trying to ask is....How do you get your clients to try new stuff, and let them know that there are all kinds of wonderful flavors out there, like kiwi strawberry, whitechocolate-rasberry, etc. (here's the kicker), without going broke making samples.




The only reason everyone goes to Walmart is that they may not know something else is available. And you should not compete with Wal-mart!

You're cakes are prettier and much more advanced than Wal-mart.
People will pass the word around real quick at parties, just think how many people see and taste your cake at each party. People want something fresh and they want new designs, they want to show off!! You can help them show off!!

The only way they will know what you do is if you show them. They have to see pictures or dummies. I have learned this the hard way. My business has increased because people can see pictures of what I do. I even have pictures of my cakes on my business card.

If people want to buy vanilla or choc cakes and you make money, why beat yourself up with all the other ingredients unless you want to offer dessert cakes.

I have a list which I offer many flavors... it looks good, but I only get orders for the most popular flavors... fine with me! less work.

I started my business with less than $5000. No business plan (only a prayer and alot of Faith) I added equipment as I needed and expanded when feasible. I kept another job for 1 1/2 yrs til we had enough income to pay bills at home and the shop. My husband kept it opened and I filled orders in the evenings.

Knowing what I do now I sure could do it a lot better. Planning the right time of the year to open was also strategic. We opened October. Christmas business and get in the phone book/yellow pages.
mpc

mypastrychef Cake Central Cake Decorator Profile
mypastrychef Posted 5 Jan 2007 , 1:30am
post #16 of 29
Quote:
Originally Posted by chaptlps

ooo,ooo ooo,
I also wanted to add, that none of the cake shops or bakeries for that matter, in my area, are even in the 21st century yet, as none of them even use a computer for any cake related info or websites.

.



That is good for you if they are not online.

You need to design a website and market it to the community. Even in the small towns people are surfing the web. Aren't you?
mpc

chaptlps Cake Central Cake Decorator Profile
chaptlps Posted 5 Jan 2007 , 1:56am
post #17 of 29

LOL ty hun

TiffTurtle Cake Central Cake Decorator Profile
TiffTurtle Posted 7 Jan 2007 , 8:34am
post #18 of 29

i have also checked into the whole grant thing..and i checked the SBA and from what i can understand they dont accually give you the grant what they do is guarentee it...i guess it would kinda be like a co-signer...i may be wrong but thats the way that i understand it.

i too want to open a shop away from my house but i have about resigned myself to the fact that i cant afford to do that and wont be able to for a while ...so if its any help here is what i have planned to do.

i am going through my local dept of ag and getting my home lic so that i can advertise...then with in a year plan to have a building put on out land seperate from my home...i accually looked into building that are designed as "storge" building ( state line builders ) and after talking to contractors have found that they are just as good if not better than having one built from the ground up...not to mention cheaper, all would have to do is finish the inside as i see fit.

best of luck to all

RisqueBusiness Cake Central Cake Decorator Profile
RisqueBusiness Posted 7 Jan 2007 , 2:45pm
post #19 of 29

Tiff, you are correct, the SBA acts as a "guarantor" of the loan and if your buisiness is high risk as it's anything dealing with food and (others of course) they want to feel theyare giving the money to a solid business so they can expect their money back.

What the SBA does is helps finds you a bank that will give you a loan with a VERY reduced rate, usually about 1/2 of the going interest rate.

And give you business advice.

SweetConfectionsChef Cake Central Cake Decorator Profile
SweetConfectionsChef Posted 7 Jan 2007 , 2:55pm
post #20 of 29

TiffTurtle, I have a friend that built a kitchen out of a storage building and set it right next to her house. It turned out really really nice! From beginning to end she only spent about $5k....

RisqueBusiness Cake Central Cake Decorator Profile
RisqueBusiness Posted 7 Jan 2007 , 3:01pm
post #21 of 29

Those buildings are great and if you can find a reliable contractor to finish it out for you or have handy hubby or firends, you can keep the cost Waaaay down!

if you own your own home you may be able to refinance your home and get the building up and work on it slowly!

Good luck!

indydebi Cake Central Cake Decorator Profile
indydebi Posted 9 Jan 2007 , 5:43am
post #22 of 29
Quote:
Originally Posted by chaptlps

......I guess the most confusing part is the "data" part the spreadsheet matrices and documentation that you need to show your solvency or lack thereof.




When I got to that part, I hired a CPA. I had to give him numbers based on my sales history; and give him my assumptions on future business, upon which he built the forecasted sales numbers. Any application for SBA monies must have a breakeven point chart and I had no idea how to build that. (He created one for me in Excel, so I can go in and change some of the assumptions to determine new break even points. Like he figured a van payment of $600 a month. I paid cash for the van, so I changed that figure to zero to get a new break-even amount. Luv playin' with that!). The CPA's bill was among the best money I spent on this project.

My plan took 9 months and ended up being over 40 pages long. It was a GREAT exercise. I got all of my "who are your competitors?" info via internet. The marketing analysis section was really fun .... how many marriage licenses are issued per 1000 people x the population of my area x the cost of the average wedding x 50% (receptions are 50% of the total wedding cost) = Wedding receptions in the Indpls Metro area are a $50-90 million dollar industry! Wow! That was cool to know!

I signed up on the Fed Govt website to receive email notices of new grants that become available. I'm not eligible for most of them (sorry ... not planning on starting a school in Nigeria for orphans right now!) but I have seen a number of grants become available for businesses who are ALREADY receiving SBA monies and are planning expansions.

So I guess the trick is to get your foot in the door just once.....!

chaptlps Cake Central Cake Decorator Profile
chaptlps Posted 9 Jan 2007 , 6:54pm
post #23 of 29

ty indy that really helps as one of my hubbies cousins is a cpa

Melvira Cake Central Cake Decorator Profile
Melvira Posted 9 Jan 2007 , 7:16pm
post #24 of 29

My DH spent $70 on a book to tell you how to get these grants, and as I predicted, he got ripped off. It's useless unless you rip out the pages and line your cake pans with them. icon_wink.gif

I have a 26'*26' detached garage that I am planning to turn into a commercial kitchen (God willing) and was hoping to get a grant, but so far the search has been fruitless. If I come up with anything, believe me, this will be the first place I come to share the information!! Good luck to all of us, right? icon_wink.gif

Bekah66 Cake Central Cake Decorator Profile
Bekah66 Posted 9 Jan 2007 , 7:56pm
post #25 of 29

I am having the same trouble and here is what I have found out so far. I too, need a separate kitchen to run a business out of my home. I am also from a very small rural area. I have checked into those catering trailers which you can design anyway you want, but I am having a hard time trying to find information on what exactly the specifications are. If I make that type of investment, I want to do it right the first time. I have checked with both the state and county health boards and haven't found a thing. (at least that I can understand). I have looked into building a small building, etc., but the cost is still signifcant.

Fortunately, I work in a town 40 miles away from my home and near 4 colleges/universities. Illinois State has a small business center which has a free, yes free, course on starting your own business. They cover registering your business name, licenses, permits, tax id number, tax issues, developing plan, etc. I am taking the course January 25th. You might want to check schools close to your area for these types of classes in their College of Business. I lucked out b/c I know several people that work there that told me about it.

I also checked SBA and I couldn't find grants either for the same reasons stated by others and they want you to employee people.

As far as Walmart, Sam's Club and places like that. I have heard so many complaints from people that their 'themed cakes' are all the same. So if you have a child lets say, that likes 'Bratz' and you get a Bratz themed cake, they use plastic kits and anyone else that may be your child's age that also likes the Bratz and they get a cake from Walmart, all the cakes are the same. I hope I explained that right. In my area, you have to drive 25 miles to even get to the closest Walmart. We do have a bakery per se in town it is in a locally owned grocery store, but their cakes are ordered frozen and they decorate them in the store, but they do not do fondant as far as I know, and do not vary much in cake flavors either.

I don't know why it is so difficult to start a home based business anymore. Its sad, really. I understand the health and safety laws but the govt just makes it so hard.

As far as getting the word out about your cakes, I am actually doing my first bridal show this weekend. I am very nervous and the bakery I talked about above is right next to my booth, we are a very small community and very considerate of each other (I think) icon_lol.gif Since they do not do fondant, fillings, and different flavored cakes, that is going to be my niche. This time of year, there are many bridal shows so if it you can afford it, I would try to get a booth. I paid $150 and am making a dummy 3 tiered castle cake (theme of show is Cinderella), and real pillow cake with chocolate slipper and a grooms cake to give away when over. I also made cupcakes of different flavors and frostings to give 'em a taste.

I actually fell into this passion. I entered a cake into the local fair and won 1st place and best in show (only 2 cakes entered icon_wink.gif ) but people saw it and got my name and I started getting calls. I cried all the way home when I found out b/c I was so happy that I actually have somewhat of a talent (lots to learn yet). I decorated cakes for family celebrations, friends, etc. and just took a chance.

I am sorry this is soooooo long, I just happen to be going through all this right now too and if I can help anyone, I will certainly try. 99% of the time the only help I have is this site, THANK GOODNESS FOR CC! icon_lol.gif

chaptlps Cake Central Cake Decorator Profile
chaptlps Posted 9 Jan 2007 , 8:09pm
post #26 of 29

O man bekah I was going to say that if you live anywhere near where there are oil companies and they do any drilling near you , you could see if they have what they call "dog houses" It's the small building that is part of a rig that houses the lockers computers and changing rooms. They are quite secure and mobile. My hubby was going to look into getting one for the back yard to put his shop in. They aren't really all that much from what he says and they have all the amenities of home. Basically just park it and plug it in. But then again, I don't know if they have any such stuff where you are at. I don't know just a thought. O well. at least I tried LOL

Bekah66 Cake Central Cake Decorator Profile
Bekah66 Posted 9 Jan 2007 , 8:28pm
post #27 of 29

LOL! I am familar with the 'dog houses' as I live close to a couple of stone quarries that have the same things. I have no problem with that, I will need to check that out too. I only got the idea about the catering trailers from my mother who was a little peeved about the law (she has seen how hard I have worked for this over the last year) and she said

Quote:
Quote:

'well I will just bring my gooseneck camper over and you can plug it in an bake'.


She said I could call it 'have cake will travel', you gotta love Moms!

Thanks all!

kden3980 Cake Central Cake Decorator Profile
kden3980 Posted 9 Jan 2007 , 8:54pm
post #28 of 29

I live in a small town in upstate New York and I was wondering if there was a website or something to go through to see if I can get an at home lisence for my kitchen? Or if I need one? I am working on a portfolio right now and planning on doing some local advertising (paper, business cards) but would like to know if I have to be lisenced or not? Thanks so much for the infoicon_wink.gif

Melvira Cake Central Cake Decorator Profile
Melvira Posted 9 Jan 2007 , 9:45pm
post #29 of 29

kden: on the CC home page there is a section for articles, if you scroll down and click on one that says 'I want to start my own business...' you should find a link to your home states website that can get you started down the path of figuring all of this mess out! icon_wink.gif Good luck to you!!

Quote by @%username% on %date%

%body%