My Business Plan Needs To Take A Drastic Turn
Business By letsgetcaking Updated 24 Jan 2011 , 2:32pm by mayo2222
I'm laughing at myself right now. I've been gearing up to start a home-based business in Ohio (once we move there this summer). I've done a lot of research on business models, marketing, etc. (Not to mention baking and decorating, too.) So, recently I finally thought I'd found the perfect niche for myself: specializing in Quinceanera cakes. I thought this would be great for a few reasons:
1. It's an important, large event where the cakes can be extravagant.
2. I speak Spanish.
3. There is a large Latin community where I currently live.
I start thinking of layouts, designs for Quinceanera cakes, special tastings, yadda-yadda-yadda...
Then, BLAM! I started doing a little market research into the area I will be moving to (thanks to a post by Indydebi). Here's my thought process along the way:
Population of the county: 160,000 (hmmm...a lot smaller than the 970,000 in my current county)
Persons of Latin origin: 2% (That's 3,200.)
Persons under 18 years old: 21% (That's 672. I divide that in half so I'm just focusing on the girls, which is 336. Just to get a general idea, I divide that by 18 to see about how many girls would be turning 15 in a given year...about 19.)
Nineteen! I was all geared up and ready to launch a business focusing on a target consumer audience of nineteen!
Back to the drawing board. 
I guess my point in posting this was to see if any one else out there had something like this happen to them. This just made me worry that as I continue to develop a business model/plan, that I'll overlook something crucial like this.
I think this is a perfect case study for why we need business plans. Look what you discovered before it was too late. I've been putting off doing one because I'm on the fence of becoming more than a hobby baker. The business plan will obviously help me make that decision! Thanks for htis post.
So, recently I finally thought I'd found the perfect niche for myself: specializing in Quinceanera cakes.
Back to the drawing board.
It's great that you discovered those results from doing the research, but you're absolutely right--back to the drawing board. I'm glad that you haven't given up, just realize that your specialty doesn't need to be limited to only Quinceanera cakes. Focus on the rest of the market too, and you won't need to limit yourself. There's no need to turn other business away when you're capable of providing the same service for people of all ages.
where you moving to in Ohio? I'm from Ohio too!
Thank you for the responses, guys. I read somewhere not to chase two rabbits at once or you'll lose both. I was trying to focus my business, but I guess I focused it a little too much.
We're looking at moving to Beaver Creek. It's actually pretty close to the Montgomery County line, so the population I could market to is larger than I first calculated. However, it's still not large enough for me to only focus on Quinceaneras.
I was trying to think of something that would set me apart from other bakers and help customers to think of me when they want a cake.
I was trying to think of something that would set me apart from other bakers and help customers to think of me when they want a cake.
Exactly! They'll think of you for the taste, not just for a once-in-a-lifetime event. You have an unlimited occasion market to go after.
I know someone in Beaver Creek. She's a gabber so she knows lots of people. LOL Send me a PM when you get settled and are ready to open. I'll send her your info in case someone asks her if she knows someone. I know she supports small biz and loves that we can bake from home in Ohio.
how do you do market research? I appreciate everyone's input.
You have an unlimited occasion market to go after.
Thank you, CWR41. I need to remember that.
@Indydebi - I'm glad my mistake can be used for good. 
@Cheatize - Thank you for the offer! I just might have to take you up on that. 
Are you also in Ohio?
@Cakinallday - Here's an awesome article from entrepreneur.com to help you understand Market Research and how to get started.
http://www.entrepreneur.com/article/217388
It is refreshing to see someone doing this kind of research in planning a cake business. You are so smart to do a demographic study of the area. I know this plan fell through before you could go further, but the next step after demographics is a breakdown on income in the area. I am adding this because I am sure in your research you will definitely find your niche and be successful.
I will definitely continue my demographic research. Thank you, everyone, for the advice and encouragement.
@Indydebi - I'm glad my mistake can be used for good.
But you didn't make a mistake because you did your research first!!! I am also glad to see you post this about doing a business plan. It is SOOOO important and a lot of other people who post wanting information on starting a business seem to take it wrong when it's suggested to do a business plan. This is exactly why!
I think this is one of the best discussions about how to start a business. People get upset when they ask advice, it is given, but it wasn't what they wanted to hear. Letsgetcaking got it RIGHT!!! Find your market. Then assess your competition. Plan pricing based on where you fit with your competition. Find the true cost of opening. Then finally, see if market pricing can cover your expenses and make you a decent living.
@Indydebi - I'm glad my mistake can be used for good.
But you didn't make a mistake because you did your research first!!! I am also glad to see you post this about doing a business plan. It is SOOOO important and a lot of other people who post wanting information on starting a business seem to take it wrong when it's suggested to do a business plan. This is exactly why!
I'm not too fat from Beavercreek. You won't just be marketing there.....you're pretty close to lots of other cities. Just look at Beavercreek as a south suburb of Dayton.
Its okay if you are a little larger, we don't judge here
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