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Business advice please... I've had a proposition - Page 2

post #16 of 22
1/20/12 at 6:27pm
Need to clarify...
I'm not a hardcore caker.
Just assumed anyone that lists 'check out local cake equipment store' on their to-do list while on vacation is hard core. icon_razz.gif

mommachris

wife to David for 25 years
mom to 13 blessings
Nine who are still living at home that range from 22 to 4 years old.
Holly, Amy, Aaron, Evelyn, Zebedee, Melody, William, Melissa and little Tobin
and four more sweet babies in heaven.

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wife to David for 25 years
mom to 13 blessings
Nine who are still living at home that range from 22 to 4 years old.
Holly, Amy, Aaron, Evelyn, Zebedee, Melody, William, Melissa and little Tobin
and four more sweet babies in heaven.

Reply
post #17 of 22
1/20/12 at 9:42pm
Hi Lisa,

As you are going through this, email me (I don't get pm notices anymore) with any information that may not sound complete. I can also make sure you don't leave out anything on your business plan.

My biggest word of warning: If they don't come to you with a preliminary business plan, just a bunch of ideas on a paper, run. If the business person doesn't have a plan and know all of this information in advance, it will not work. Be very aware of the level of knowledge of these people. Also, what is the benefit to the friend? People don't do this for free. The friend could walk out of the situation leaving the two with no experience succeptible to loss.
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post #18 of 22
1/21/12 at 12:32am
HI, Lisa! I have heard that a new business is not usually profitable in its first year, therefore if you are considering this proposition you should at least have in savings for your own personal expenses 10 months wages (11,000.00 pounds) because usually at the beginning you are not even able to draw a salary. I have also heard this recommendation, do not ever leave a secure job,( if you leave your job , who is going to cover your living expenses, and how are you going to get there????) this does not mean to forget about opening a business just do not start it on a shoe string because it will be too stressful and your artistic side will suffer. You do beautiful work in your cakes! This is my humble opinion. I wish you luck either way thumbs_up.gif

CIAO
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post #19 of 22
1/21/12 at 12:45am
another thing to think about is the fact that you would have to drive everyday over an hour to get to work and then an hour to get back home. This costs money for gas so that will be an added expense that you are not paying out right now. I too would not leave a secure job with out any sure money that you can live on. You now require 1000 pounds to make ends meet each month. What happens if the shop doesn't make that much after all the expenses (rent, utilites, supplies etc) are paid for? Who will be responsible for your salary? In this economy I would not leave a secure job for anything. JMO...
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post #20 of 22
1/21/12 at 1:59am
Thread Starter 
I asked my Dad what he thought last night as I've never been to the area. He said if I were to do this I would need to move closer to the area, it is not feasible to commute to there from where I live. It would cost too much. So I need to mention this to them and see if they are willing to look at other locations.
https://www.facebook.com/TheCutestLittleCakeCompany
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https://www.facebook.com/TheCutestLittleCakeCompany
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post #21 of 22
1/21/12 at 12:48pm
I don't have any business advice but would it be possible to get a 12 month leave of absence from your job if you decide to go for it? I know some government type jobs allow them. It would give you a bit of time to see if it was likely it was going to work out long term. You probably wouldn't be turning a huge turnover after a year but it should give you an indication of how well it might work and see how you feel baking etc full time. Even 6 months would be a start.

On the place and moving, would the proposed building happen to have accommodation upstairs that you could live in rent free (to you) for at least a year or two?
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post #22 of 22
1/21/12 at 1:04pm
Quote:
Originally Posted by CakeRN

What happens if the shop doesn't make that much after all the expenses (rent, utilites, supplies etc) are paid for? Who will be responsible for your salary?


That's what the financial backer of the business is for -- if he can't come up with enough money to both start the business and pay a living wage for the OP until the business is self-sustaining then the idea is a non-starter. Alternatively OP might be able to keep her job and take on more of a consulting role while hiring someone else to run the shop.
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