Ok, so I have read this subject in several threads and would like to put some thoughts out there...
If you want to do cakes as a business, being legal is the way to go. First, it is the law. Second, it protects YOU. Third, it will get in venues that otherwise you could not get in.
When I started a year ago, I did free cakes for family and friends. Yes, it cost money, lots of it, pans, supplies, etc. I considered the money I spend education money, like, if I was going to school and had to pay tuition. Same thing, did not matter that I was teatching myself.
Now I m legal, I work out of a friends commercial kitchen where I pay a nominal amount (this will end by next year, she is moving out of state so I will have some decisions to make then). I charge just as much as any other custom bakery in my area. I could charge a lot less but I want to build a clientele that can afford me at a ghler price because I know my expenses will be higher then.
With that said, I have a question...most of the complains from legit business is that the illegal home bakers undercut them in price and therefore steals their sale. I would not like that either. But, would you fell just as upset if a legit business, with less overhead, chose to charge a lot less and was busier for that?
Some bakers out ther have fancy store fronts that cost a lot in overhead ( I would love to have one of those) and others work out of a small commercial kithchen, off the beaten path, with much lower overhead. If they are charging a lot less for their cakes and getting lots of sale because of that, are they stealing business from others or just being wiser in their decision of staying less fancy to cut costs.
Again, my question is not about illegal bakers, but legal ones undercutting your prices and stealing your business.