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Trying to decide if it's worth it to start a business...

post #1 of 5
4/26/12 at 1:41pm
Thread Starter 
Up to this point I have been a pure hobbyist with my cakes. I have never charged a dime for anything including ingredients. After making a wedding cake (the reception was at a private location, so no need for a licensed baker) as a gift, I have had many people ask why I don't start up a business.

I have been very reluctant to do so for several reasons. In my state it is very difficult to start a home business. To get a license I would have to rent space. I also have NO idea how much to charge for cakes. It hardly seems worth it for the hours I put into one.

For starters, how much would I have to charge for this wedding cake I did (the tiers are 10", 8" & 6")? If I have to rent a space would it even be cost effective?

I also live in a rural town about an hour from any metropolitan area. I really think this affects what prices people will pay.
LL
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post #2 of 5
4/26/12 at 2:58pm
I wish there was a simple yes or no answer to this, but I'm afraid there's not.
There are so many things you have to consider, regarding the cost of cakes you have to consider the ingredients, cost of any new equipment you had to buy to make the cake, cost of energy (electric/gas), cost of cake boards/pegs/boxes, the cost of your time gone into the cake, cost of the amount of servings in the cake, delivery, etc.

With regards to renting a space, it would prove worth while if you generated enough business to cover the rent of the space.

You really have to sit down and calculate everything, and research things a bit more.

Hope that helps! icon_smile.gif
My cakes are never level. . . . .its because my damn cooker is wonky!!
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My cakes are never level. . . . .its because my damn cooker is wonky!!
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post #3 of 5
4/26/12 at 8:50pm
Thread Starter 
Ugh. It really is overwhelming. I get bogged down with the basics. Like how many servings really is in a cake like the one in the picture? I hear about people charging a certain price per serving. Is this usually how it's done, or do people usually charge per tier?

Thanks for taking time to reply! icon_smile.gif
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post #4 of 5
4/27/12 at 3:53am
I know how overwhelming it can be.
There are lots of things that can change the price of a cake.
Most people add to the price of a cake for a bigger amount of servings from a cake and add to the cost if a cake has more tiers.

Wilton has basic servings charts for weddings and parties you can see here,
http://www.wilton.com/cakes/cake-cutting-guides/

Also fillings and cake flavours can alter the price, for example a vanillia cake would cost less than a flavoured cake like chocolate, lemon coffee etc.
and a simple buttercream filling would cost less than chocolate mousse or ganache, or flavoured buttercream.

Also "extras" would add to the cost, edible flowers, piping, edible figures etc.

Something else to think about also is a good contract. I was reading a thread yesterday about how this lady baker had a bride asking for refunds and free cakes because the baker hadn't been able to provide edible flowers for the cake.
Lots of people ask for a nonrefundable deposit to be paid first, some people ask for 10%, 20% or some even ask for 50% of the cake price to be paid in advance.

Hope this helps. icon_smile.gif
My cakes are never level. . . . .its because my damn cooker is wonky!!
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My cakes are never level. . . . .its because my damn cooker is wonky!!
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post #5 of 5
4/27/12 at 11:35am
Quote:
Originally Posted by laura4795

Ugh. It really is overwhelming. I get bogged down with the basics. Like how many servings really is in a cake like the one in the picture? I hear about people charging a certain price per serving. Is this usually how it's done, or do people usually charge per tier?

Thanks for taking time to reply! icon_smile.gif



I'm probably going to have people say that I'm mean for saying this, but if you're asking basic questions like this you're NOT ready to start a business yet.

I'd take some time and get the basics down, get your plan in place as far as how you're going to rent space etc. if you need to do that, figure out your basic recipes that you'll be using, blah blah blah. Having a fun hobby is one thing, but when it becomes your business it's work, not fun. Unless you want to burn out really fast you need to realize that a business is a job and you need to be able to make a profit or it will just be something that you start to resent. I wrote a book about this exact thing...One person read it and wrote me a thank you note for showing her that she was not ready for a business because she didn't want to deal with it on that level. It's not always as easy as getting a business license and having orders sart pouring in. Although you probably could go ahead and get a license to get the process started while you're figuring out the rest.
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http://www.acaketorememberva.blogspot.com
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