Problem with friends and business...

Weill I'm not in business, but I just wanted to add that I don't think your friend is being fair to you at all. Maybe you could just tell her that she should take classes to learn all she needs to learn as you don't have the time right now to help her. As for recipes, just tell her that you don't give out recipes. Period. This is your business and as a friend she should respect you and it.

Just curios - If she is still new to baking and decorating, why is she trying to go into it as a business?

I think there is a way to put a positive spin on this. First you must do some mind work of your own to be able to see a positive side to this. She sees success in you and is drawn to it. If you were a failure, you wouldn't have this problem. Be flattered. Realize that she is not true competition. Your skills and knowledge have elevated you to a higher level or market. I bet she doesn't charge as much as you can for your cakes and her cakes don't look as great as yours.

Then you need to find a way to educate her without straining your friendship. There are ways to educate folks without giving up your trade secrets. It's done here on cake central everyday. If she wants a yellow cake recipe, you can help her by offering some recipes you found during your research that were good but didn't suit your purposes; let her do the testing to find one she likes. Show her what books to read, introduce her to CC.

Educate her about how to run a business, and why handing out your trade secret is not an option, use coca cola as a example of how a company must protect what gives them a competitive advantage. Let her know that part of owning a business is taking full responsibility for the entity and its success. She needs to put her big girl panties on.

Explain to her that since you've been at this a while you will be willing to take a mentorship role to guide but no do everything for her.

Of course all of this depends on if you wish to save the friendship.

Friend? Really? Somehow it doesn't compute. I would lay down the law. "

"Look honey, it's great that you want to get going in this business. However, you're going to need to invest your own time in to developing recipes, creating cakes that match your skill level, and bring yourself up to par. Visit cake decorating websites, ask questions, and practice. That's what I did, and that's how I am where I am today. It would be UNFAIR of me to hand you everything on a platter and not allow you to experience failures, mishaps and try-agains on your own. No, I am not at all interested in partnering up with you, as I am ready for this venture on my own after investing MY blood sweat and tears, and must retain 100% control over it now, as I take the final crucial steps towards success. I wish you luck, and am always willing to provide suggestions on how to get answers to your questions."

Something like that, maybe not so dramatic, but ya know...

Oh my goodness- what a situation to be in!!!

I agree with the previous poster regarding suggesting classes etc due to your 'lack of time' to coach her.

Not quite sure how I'd tell her she isn't quite good enough to start selling yet- that's a tough one

With her asking to go into business with you, maybe just say you've done all your legal work and have built up a client base etc etc so basically things are working perfectly for you, and it would really rock your business boat to change something as drastic as that? Thats the only idea I can come up with I'm afraid!

Good luck whatever you do!

Well, they will keep asking if that is your response. You need to shut that down immediately.
"I appreciate you for aking me, but my business is still very young, and my focus at this time is growth and stability. A merger or partnership is not an option I plan to consider." Or something to that effect.

It's not your place to tell her her work sucks or that she charges too much. Believe me, the market will take care of all of that. Just be patient.

You have to want to be partners with someone to be in a partnership. If you want to do things on your own, that is who you are. You are not even obliged to give a reason. If you do not have time to teach someone, be open about it. If you don't want to share recipes just give some links of whatever you tweaked along the way. Having said that I know being open is not that easy. But a woman's gotta do what a woman's gotta do. Sooner rather than later. You will cry and hug and move on.

All the best.

Maybe you could sit down with this couple and help them write their business plan. Once they see the profit projections for the first year or two they may well decide to give up the "business" on their own.

Another option is to hire her as an intern, if you have the time to train her on the job that is.

Suggest to her that she look at the photos of the other bakers in town that are skilled and ask her what she thinks of their cakes. Ask her what she likes and dislikes about them. Make commens about how well the flowers are made and painted, how smooth the fondant/buttercream is, how level the cakes are, etc. Maybe she will realize that her work is not up to par for the prices she wants to ask. Also, does she have many cake tools? Does she know how expensive it can get before she makes a profit?
Good luck with her.

I don't know if you would want to do this, but for myself, I would mention that I have invested thousands of dollars not to mention the hours to get to where I am and that for them to become my "partner" they would have to be able to match that. We had to do this when my husband opened his business and someone wanted to be his partner and since he was unable to bring either the experience or the money to the table, we were just not interested.

And I agree with the suggestions about sharing recipies, I would steer her to the internet and advised her that what works for you may not work for her since you probably have very different baking styles, choice of ingredients, etc.

How's this:
"I have been thinking about your idea of a partnership, but I have decided that I don't want a partner at all. I need to work alone. I have spent a lot of time and money on setting up my business and developing my recipes, and I operate on the basis that anything coming out of my bakery/kitchen is my responsibility and representative of my knowledge and skill level. If you want to have a cake business, please be aware that there are regulations, licenses, etc. . . ."

Something like this, written by Leah_S in another thread (responding to someone possibly in a different state):
". . . the first thing you need to do is check your zoning/deed restrictions/HOA covenants, etc. to make sure that you can have a biz in your home.

Second you need to contact your Dept of Health/Dept of Ag to get certified/licensed if you are in a state that permits home kitchens. You might have a Cottage Foods Law in your state - I just don't know.

Then you should get liability insurance.

Then you might want to think about setting up banking accounts, booking procedures and of course, look into incorporating. You might be able to put that off, but it's frequently fairly easy to DIY. The Secretary of State in my state actually provides forms and templates.

Next, you'll likely need to register with the state sales tax/revenue commission and ditto any local taxing authorities.

Oh, and check into getting a federal EIN. You won't need it right away,. but it's easy to do online, and you'll need it at some point.

Then of course there is the baking."

I agree that she should take classes, or get a job icing cakes in a bakery or grocery store baking department. And I agree with Jenise that because of the high cost of her wanting to buy a partnership in your business, she wouldn't be making money right away, she'd be spending it.

Or, you could just say that you don't have time to teach and that any partner of yours would have to have taken classroom instruction (like the Wilton courses) and prove that their skill level would be the same as yours. Also, you don't want to hire employees because of all of the payroll, benefits, etc. folderol