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Would anyone be willing to share...

post #1 of 9
9/22/05 at 6:02am
Thread Starter 
Their experiences in opening up a business - a "store front" as opposed to a home based? I don't know if I'm going to be able to do something at home, which would be much cheaper, because of zoning issues. However, the Ag department in Michigan told me I don't need commercial grade appliances--as long as they're in good working order, and fit for the intended purpose--but I'm trying to figure out where to start!

My husband also made the comment along the lines that a living can't really be made on a business like this. (Not mean, just trying voicing his opinion.) That can't be true or no one would do it! Any insight would be very much appreciated!

Traci
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post #2 of 9
9/22/05 at 6:31am
You can find used equipment to start with....but there is an overhead to starting ANY business.

Money can be made..you have to develop a following and offer a good product. But you still have to be able to do enough business to pay your bills.

Have you scoped out your area? Check your competition...see what they offer and for how much. Then try and figure what your monthly expenses might be and just how many cakes you will have to sell to meet those expenses.
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post #3 of 9
9/22/05 at 7:02am
Hi Tracy,
First of all, you are very talented. Your cakes are so creative. I haven't been on the home side of the baking business - I can only offer advice from the "store front" side. There is money to be made in this business, but it takes a long time to even break even. You have the cost of renting your space, buying or renting equipment, utilities, supplies, licenses, taxes,etc.etc. This isn't meant to discourage anyone from starting their own business - I hope nobody takes it that way. I started in the coffee shop/bakery business 6 years ago and its been a constant struggle, but its been worth it. You just have to decide how much you are willing to put into it to make it work. My advice would be to maybe start from home, build up a good following and then when you have enough business and some money saved up, open your own shop or maybe rent space from someone else's kitchen. Also, I sell cheesecakes wholesale to area restaurants to pick up extra money. Which ever way you choose I'm sure you will be successful.
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post #4 of 9
9/22/05 at 8:38am
i agree! i would get a client base built up before you do anything! you can sell to family and friends, and one day friends of friends...than you need to think about being legal.
personally, i am a stay at home mom, and i just bake a cake here and there....hopefully going to get more business soon. i am in process of getting a licscence for my kitchen we built in my basement. at one time i thought about having a retail business, but the long hours away from home didnt apeal to me after i thought about it. doing it this way, my overhead is low,.....on the other hand i dont make much money because i'm not in the public eye constantly.
you really have to decide what you want to put into your business,...hours, money, sweet, away from home, ect... then decide whats best for you.
i hope you keep us posted on what you decide!
good luck
melody
www.sweetcreationsbymelody.com
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www.sweetcreationsbymelody.com
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post #5 of 9
9/22/05 at 11:44am
Hi Traci,
I'm also very new to cake decorating but eventually I'd like to open up my own business. Right now I'm planning on working directly from home not only until I get more experience but also until I get client base too. I think that that's the best way to do it because I can learn how to be my own boss and manage a small business so that by the time I open it out of home I won't feel overwhelmed with all that needs to be done. Hope I helped icon_biggrin.gif
~*:.Daniela.:*~
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~*:.Daniela.:*~
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post #6 of 9
9/22/05 at 12:27pm
You have to make a lot of cakes to pay rent on a business. Specialty/novelty cakes are often not money makers because of the time it takes to put them together. By the time you pay for overhead, supplies, licensing and taxes, it really adds up.

Many bake shops add other product to make enough money to pay the bills, and that means a lot of work and very long days.

The zoning may not be a big problem, since a home based business for cakes does not generate foot traffic. The neighbors won't have to be concerned about the occasional car.

I don't want to discourage you, either. But a license for home baking would be ideal, if you can swing it. good luck.

JoAnn
Cake. So many flavors, so little time.
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Cake. So many flavors, so little time.
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post #7 of 9
9/23/05 at 12:51am
I think money an be made from this business!! you just need to offer a great product and have it know out there......This was a hobby for me....Im a photographer..... but lately it seems im known for cakes. when I startd may be I did a cake every other month..........now to 2-8 a month. in may i got swamped so I limit myself to 3 a week.
the more my name get spread and more people know The more advance bookings ive gotten. In the past month I have booked 15 people for future orders (beyond a month)....this scares me because the constant stream of business Ive been having often books 1-2 weeks ahead... so if things keep up I may need help....
I had a girl tell me today that she has friends that are bridal consultants and need a cake decorator to refer too...she askedd if i wanted the business....
I dont have permits or any thing. So im hesitant. But told her give them my name.

Imagine a shop!!
your good ....I think that once you build your base you will be OK .....

I here its take 4 years on average for a businesses to see a return on thier investments....as long as you dont expect for it to happen overnight youll be ok
I didn't choose cake decorating.......cake decorating chose me!
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I didn't choose cake decorating.......cake decorating chose me!
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post #8 of 9
9/23/05 at 6:42am
Thread Starter 
Thanks a bunch for all the advice. I am one of those types of people that has to plan everything like crazy--my wedding was completely planned a year in advance. icon_lol.gif

I have some really great contacts and ins. I just don't want to run into problems with the licensing issue. I am DYING to get things rolling so I can start telling those contacts to send people my way!! I have a few catering contacts, a photographer, and my daughter works at the local bakery -- but they do only simple cakes and turn business away ALL THE TIME. My daughter just dies when she hears it too. They're really great people and I am pretty sure they'd refer a local person as long as I'm licensed. Sooooooooooo....now I'm trying to get it all together.

Thank you, thank you for all the support--AND helpful advice. I'd rather see the difficulties now than wait until after I'm knee deep in icing and debt. thumbs_up.gif
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post #9 of 9
9/26/05 at 10:26am
I am getting ready to build a kitchen in my garage and the health department here has been extremely helpful and easy to work with. They came out and okayed my plans and told me some things to change. I felt so much better after they came. They said that the appliances don't have to be commercial or even new as long as they are in good repair. The major requirement was the three compartment sink and another sink for hand washing. I have estimates from everyone and I think it is going to cost me about $5000. That is with some friends doing the drywall and the plumbing. Hope your health department is as helpful as mine has been. Good luck.
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