Cake Central › Cake Forums › Cake Talk › Cake Decorating Business › To purchase or not to purchase?
New Posts  All Forums:Forum Nav:

To purchase or not to purchase?

post #1 of 74
Thread Starter 
I need some opinions. I have been an at home baker specializing in custom cakes and cupcakes for about 3 years now. Even moving from one state to another during the 3 years and starting over with cliental.

Well, 2 days ago a local bakery propositioned me with the opportunity to purchase their business located in a local farmers market. The current owners have opened a full time building for their shop and don't have the time for the one in the market any longer. The purchase price is very reasonable and includes everything at the booth already in place. Also includes license and whatnot. The only thing I would have to do is start baking and bring in my own products.

I have looked over their numbers roughly and everything looks great and what I'm looking for as far as being a stay at home mom and just going to the market 4 days a week to sell my products. Everything would still be baked in my home and just transported.

Here is the dilema I'm facing. They opened up their new bakery within 1 mile of the market. One of my advisors that I have been speaking with thinks it maybe a bad idea as their current customer base will follow them being so close. The markets traffic is roughly 40,000 visitors a week, so there are lots of new client potential. I would also have custom cake dummies on display so that would be great advertising for that part of the business. I would also offer some different products then they did.

Anyway, I would love any feedback on this. So, please chime in. Thanks in advance.
post #2 of 74
My 1st thought: is it legal for you to bake at home in your area? Have you looked into Health Dept rules?
I would tend to agree w/your thinking that there is plenty of chance to develop your own following and not be too worried about the former owners. Just my 2 cents worthicon_smile.gif
post #3 of 74
What exactly are the assets you will be purchasing, and how much would it cost you to do the same thing yourself?
post #4 of 74
My opinion is that people do not shop at farmer markets for custom cakes. Farmers markets are also a ton of work. Legalities aside, I think if it were me, I would pass this up.
post #5 of 74
Thread Starter 
Thanks for replying. Yes, I'm legal to sell out of my home, I have followed all the rules since the beginning, so that's not an issue.

The farmers market is a very high end place, this is not just a flea market. My booth would be inside and is open 4 days a week. Everything that is there now to run it would stay and they would transfer the food service license to me that is needed to sell there. There are no other bakery type shops aloud to sell there so there is no compition. I'm not trying to sell the designer cakes as much as just have my own business that pays my bills and from the numbers I have been shown so far (like I said, I have seen rough numbers, not the actual books yet) then I would be very happy if it continued to stay that way. Yes, I would have a couple of dummies out of designer cakes but that isn't my sole purpose there.
post #6 of 74
Thread Starter 
Can you give me a few reasons you think the markets are a ton of work? Not questioning you, I'm seriously asking why as I haven't worked in one yet.

Quote:
Originally Posted by kelleym

My opinion is that people do not shop at farmer markets for custom cakes. Farmers markets are also a ton of work. Legalities aside, I think if it were me, I would pass this up.
post #7 of 74
You're legal to sell from home, but is it legal to sell home produced goods at the farmers market? This is worth exploring. They would transfer the license to you, but the license may not be able to transferred if they are working from a commercial kitchen and you are working from home.

Would you have to bake at home and then bring in your inventory to sell? How would your booth be staffed? Would you have to personally work it 4 days a week, then go home and bake after you wrap up at the market? Would you have any employees or assistance?

From posts I've read here, plus speaking with vendors at the farmers market I go to every Saturday, it seems like a hellish amount of work, especially if you were limited to the production capacity of your home's kitchen. Also keep in mind that if you did this, you would be completely changing the focus of your business from what it currently is (custom cakes) to single-serve, speculative baking. Speculative, meaning, you bake what you think people will want to buy, and you end up eating the cost of whatever is not purchased.

These are just some things to think about. Be sure to get every question answered before you make any final decisions. icon_smile.gif
post #8 of 74
Thread Starter 
Thank you for responding. Yes, it is legal to sell home produced goods at the market. (I live in OH). They actually started the business as a home baker as well so the license isn't out of a commercial kitchen (I've already asked that, lol).

Yes, I would bake at home and bring the product with me. Myself mainly and my family would all help out working the booth 4 days a week. Yes, coming home afterwards and baking for the next days event would be how I had to do it.

Again, thank you for your input. It is much appreciated.


Quote:
Originally Posted by kelleym

You're legal to sell from home, but is it legal to sell home produced goods at the farmers market? This is worth exploring. They would transfer the license to you, but the license may not be able to transferred if they are working from a commercial kitchen and you are working from home.

Would you have to bake at home and then bring in your inventory to sell? How would your booth be staffed? Would you have to personally work it 4 days a week, then go home and bake after you wrap up at the market? Would you have any employees or assistance?

From posts I've read here, plus speaking with vendors at the farmers market I go to every Saturday, it seems like a hellish amount of work, especially if you were limited to the production capacity of your home's kitchen. Also keep in mind that if you did this, you would be completely changing the focus of your business from what it currently is (custom cakes) to single-serve, speculative baking. Speculative, meaning, you bake what you think people will want to buy, and you end up eating the cost of whatever is not purchased.

These are just some things to think about. Be sure to get every question answered before you make any final decisions. icon_smile.gif
post #9 of 74
How old are you children? If they are of legal working age they may be able to lighten the load by helping out some days. I couldn't imagine doing it with young children at home all day while baking in the kitchen.
post #10 of 74
Quote:
Originally Posted by sfrog68

Everything that is there now to run it would stay and they would transfer the food service license to me that is needed to sell there.


What is "everything that is there now"? Other than a table, some displays, and possibly a POS system I can't think of much else that would be needed at the market itself.
post #11 of 74
Thread Starter 
Sale to include the following:

Federal Bakery Display Case, as is (non-refrigerated)
Residential Convection Oven (in great condition)
Point of Sale Counter
Computer Desk with shelves
5 Black Buffet
(2) Backless Stools
(1) Folding Black chair
Work Table with skirting and shelves
New Cash Register
Cupcake Banner Sign
(500) Cupcake Boxes and Inserts
Decorative Mirrors
Chalkboard
Black linoleum flooring
Broom
Food Service License transfer

Quote:
Originally Posted by jason_kraft

Quote:
Originally Posted by sfrog68

Everything that is there now to run it would stay and they would transfer the food service license to me that is needed to sell there.


What is "everything that is there now"? Other than a table, some displays, and possibly a POS system I can't think of much else that would be needed at the market itself.
post #12 of 74
Thread Starter 
My oldest is of legal working age. He would probably be my Saturday man for sure and then any days were they are out of school. So yes, he would be a huge help.

Quote:
Originally Posted by HalifaxMommy

How old are you children? If they are of legal working age they may be able to lighten the load by helping out some days. I couldn't imagine doing it with young children at home all day while baking in the kitchen.
post #13 of 74
Quote:
Originally Posted by sfrog68

Sale to include the following:

Federal Bakery Display Case, as is (non-refrigerated)
Residential Convection Oven (in great condition)
Point of Sale Counter
Computer Desk with shelves
5� Black Buffet
(2) Backless Stools
(1) Folding Black chair
Work Table with skirting and shelves
New Cash Register
Cupcake �Banner� Sign
(500) Cupcake Boxes and Inserts
Decorative Mirrors
Chalkboard
Black linoleum flooring
Broom
Food Service License transfer


How much would you be paying for this?

And BTW how big is this booth?
post #14 of 74
Thread Starter 
$3000 and 12 x 12.

Quote:
Originally Posted by jason_kraft

Quote:
Originally Posted by sfrog68

Sale to include the following:

Federal Bakery Display Case, as is (non-refrigerated)
Residential Convection Oven (in great condition)
Point of Sale Counter
Computer Desk with shelves
5� Black Buffet
(2) Backless Stools
(1) Folding Black chair
Work Table with skirting and shelves
New Cash Register
Cupcake �Banner� Sign
(500) Cupcake Boxes and Inserts
Decorative Mirrors
Chalkboard
Black linoleum flooring
Broom
Food Service License transfer


How much would you be paying for this?

And BTW how big is this booth?
post #15 of 74
Since there's an oven, is on-premise baking allowed?

VISIT US at BAKINGFIX

 

             Bookshelf    Consulting    Classes    Blog    Facebook  

    

 

 

Reply

VISIT US at BAKINGFIX

 

             Bookshelf    Consulting    Classes    Blog    Facebook  

    

 

 

Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Cake Decorating Business
Cake Central › Cake Forums › Cake Talk › Cake Decorating Business › To purchase or not to purchase?