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burned out.... - Page 2

post #16 of 23
I am getting back into the business and decided to focus on wedding cakes rather than birthday cakes. I agree the birthday cakes brings in steady income, but the wedding cakes have a higher profit margin.

Just a thought for you to scale back a bit.
post #17 of 23
no no no nonononononnonono! ON PARTNERSHIPS! "So whats the alternative to a partnership? Depending on your situation, we might recommend a joint venture. This would basically make you the owners of two separate companies who are working under one legal entity. Joint ventures are much easier to manage than partnerships if you ever decide to part ways and do your own thing."- Dave Ramsey

Maybe you could have a joint venture where you release a certain part of your business where you aren't making as money, or it is becoming too much work to deal with, such as cake balls and coffee, or whatever. Have them make an investment on the ingredients and packaging and advertisement, and just wash your hands on the whole thing. If they need extra equipment, they need to furnish it.

It seems to me you also need to raise your prices! It may thin out some of the orders, and if you aren't selling a lot of an item, eliminate it. Thinning out choices means less work. At least hire someone to do the dishes. My understanding is that with an IC, you can say," Your job is to do these dishes, it pays $25." Or ,"You get $1 per serving on each cake you decorate. This cake needs to be done before 3pm." There can't be hourly wages, everything must be a fixed wage.
Beginners, be sure to parrot advice and get your post count up as fast as you can. After all, it's not what you know, it's what people THINK you know.
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Beginners, be sure to parrot advice and get your post count up as fast as you can. After all, it's not what you know, it's what people THINK you know.
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post #18 of 23
Thread Starter 
Thank you guys and gals so much for spending a few minutes to help me out....its also so nice to see some familiar faces icon_smile.gif
So, I think I will schedule some classes for September and use that time to hire and train a few part timers that will each do a specific thing .... I think if I come into a clean store with cakes already iced and filled, then I can handle the decorating. I literally have people coming in DAILY asking me for a job. I currently have 3 interns.... I definitely need advice about how to manage them because a business person I am not! Lol
I opened only because I had amazing support from my brilliant husband and cousins ....an attorney, an accountant, a plumber and a contractor!

Like many cake artists, I feel like i need to have control over everything.....the answer is probably to let go a little.

While my cake prices are OK....I charge $8 per serving....I need to re-evaluate my sugar-work prices and definitely raise them. I am exhausted but I still love to admire the finished product so I think there is still hope for me. Thanks again ....I will keep you posted!!!
post #19 of 23
Quote:
Quote:

While my cake prices are OK....I charge $8 per serving....



I don't get it...How do you not have the money to hire? Maybe it would help if we knew how much the rent is...Costs must be much higher up there!!! What is the cost of a gallon of milk, or a loaf of bread? How about a dumpy 2 bedroom apartment? I charge $2.75 for buttercream and $3.25 for fondant, though it is going to $3. and $3.75 next year. I am going to be bringing in a dishwasher in the next month. Milk is $2.59 for the store brand, bread is $2.10 for a good national brand and you can get a dumpy 2 bedroom apartment for $575 a month icon_smile.gif
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post #20 of 23
Two - bedroom apartment for $575???? Wow-- you can't even walk in the door to look at a studio for $575.00 in NY-- and I'm not even exaggerating. On Long Island we pay the highest property taxes and utilities in the country.To put it into perspective, my property taxes, for a medium size home approx 12 rooms, are $11,000.00 a year!--ugh-- and your looking at approx 500- 600 a month for utilities.. So if you were ever wondering why New Yorkers are cranky- that is one of the reasons- ha!!
post #21 of 23
Wait! A medium sized home is 12 rooms? Are bath rooms "rooms" when calculating? I have a small ranch style home, 3 bedroom, 3 bath, living, dining, kitchen, all very small with full, unfinished basement. Value $145,000, taxes ...I forget...between $800- $1,200? I'll remember in a couple months when I get the bill! thumbsdown.gif

A decent 2 bedroom is more like $700- $1,100. Most typical houses rent for $1,200 a month. In the dumpier areas, IE, the ghettos of greater Cincinnati, my friend rents a 2 bedroom $275 a month, and it is the kind of neighborhood you take the long way to drive around, and when visiting, you are surprised to see your car intact and where you left it when you look out the window.
Beginners, be sure to parrot advice and get your post count up as fast as you can. After all, it's not what you know, it's what people THINK you know.
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Beginners, be sure to parrot advice and get your post count up as fast as you can. After all, it's not what you know, it's what people THINK you know.
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post #22 of 23
Well, compared to some of the houses here- it is med- to largeish I guess- 5 bedrooms, 3 baths, den, living room, dining room , office, playroom, kitchen- so I guess largeish-. I do live in a very nice area out on Eastern Long Island, across the street from the bay- I have a creek that runs through my backyard- my town is precious, we actually have a Main Street with all Mom and Pop stores etc-

Home values are CRAZY here- and they went down- so $480,000- down about $120,000 at least- I bought at at GREAT time so I am still ahead of the game- but man, the monthly nut- especially taxes on Long Island are out of control- and get this, most Long Islanders don't move off the Island- we just don't- if you are a South Shore girl- no way are you going to the North Shore- forget another state- ha!!!
post #23 of 23
Quote:
Originally Posted by carmijok

The bakery I worked for had this same problem and she ended up closing her business. She was NOT a good manager and she hated that side of things. She chose not expand. Which is too bad because she did really nice work.

Personally, if I were you, I'd hire a couple of part time people, (you will avoid a lot of the financial burdens of having a full time employee). Bring them in to do a lot of your busy work including scheduling cakes, dealing with customer pick-ups, coloring fondant, cleaning, doing dishes, etc. Then as you observe them you may find they have the potential and the desire to do more and you can train to bring in more to the baking and decorating side of things.

If you are concerned about hiring them yourself, look at working with an employment agency that can screen applicants first (you still choose) and if they aren't working out, the agency is the one to release them and find new. They are also the ones who deal with the taxes, etc. You will pay for this service, but it might be worth it if you can give yourself a normal life. Might have to raise your prices as well.
Just some thoughts! thumbs_up.gif



Carmijok, I think you have a great suggestion that could be implemented easily. thumbs_up.gif
Linda
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Linda
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