The Cake Decorating Business section of CC often has posts where someone asks if their cakes are good enough to start a business. I would like to answer every request; past, present, and future right now. The answer is Probably. If someone that isnt related to you has given you money for a cake that you create and they were pleased with it then regardless of your cake decorating ability, there are others out there that are willing to pay money for your cakes.

Now that we have that out of the the way, I would like to state that your decorating expertise has little or no bearing on whether or not you will be able to run a successful business.

According to Dun & Bradstreet, about 100,000 business fail every single year in the United States. Just 10% of those businesses fail because of "lack of line experience", which would be akin to "being a cake decorator that doesn't know how to decorate cakes properly" (or a carpet cleaner that doesn't know how to clean carpets very well, etc).

83% (or 83,000) of the businesses that fail every year, fail because of either "Unbalanced Experience" or "Managerial Incompetence". Unbalanced experience & Managerial incompetence can be summed up as basically knowing how to decorate cakes, but having no idea how to properly manage the other parts of your business; marketing, advertising, maintaining a web presence, taxes, risk management, health department, employee relations, inventory, scheduling, ordering, time management, insurance, supplier relations, consultations, and the other 50 duties that are placed on the shoulders of the small business owner.

Basically a general lack of skills in a number of aspects of running a business with the exception of the talent part.

My point is not to discourage anyone but to make you evaluate your "non cake decorating" skills and make sure they equal or exceed your decorating skills. If they don't do the same things you had to do to become a great decorator take some classes, read some books, talk to other small business owners about their challenges (you can trade cake for their time ) and get your skill level where it needs to be. Obviously being educated on the "what & how" to run a successful business is no guarantee of success, you know that many of the 100,000 businesses that fail annually are run by Harvard MBA types who were bred from birth to be entrepreneurs, but the more you know about running a business, the better off you will be.

It should be noted, if you are thinking about running a business that produces just a few wedding cakes a month from home this probably doesn't apply to you, but hopefully for those of you that are seriously considering opening up your own shop and risking your financial future, it will give you something else to consider before taking the leap.

Just my .02

Best of luck!

wow, that is very intresting. I would fail badly if I opened a bakery any time soon.....I lack organizational skills, and all the other business skills it takes to be successful. I will stick to making a few wedding cakes out of my home. I do have a small commercial kitchen here. my plan is to do slowly pick up clients and eventually outgrow my little kitchen and open a retail space....but I really need to rethink that.
thank you for the info.

melody

thank you for this post. i have been wondering this and have looked into small classes for starting a business at my local community college.

i'm so afraid of the business part of it. i really have a lot to learn about taxes and other business aspects. there is no way i could jump into doing it without preparing myself. i can honestly say i'm clueless when it comes to business. i've always been the 'right-brained' creative type who just does things by intuition and trust. LOL i'd probably be in for a rude awakening if i was in business at this point.

so, its off to class i go!

what a great post pieceofcake.....

She is right! My big launch is getting close and I have spent HOURS and HOURS reading every small business book I can get my hands and every one of them had good points. The SBA (small business association) is a great resource also. One eye opender I had was that people preparing a business have a tendency to work over and over on the aspects that they know well but ignore or put off learning the important business aspects thinking that it will just happen. Nothing JUST happens. Research, research, research.

Thanks for the reminder.
SLO

she's so right, my DH runs a home based business and organization is as important as the work itself. I just started a small business for dessert items this week, but only plan on doing a few a month so this really doesn't apply to me yet (ran out of a church kitchen to save on costs) I'm doing a ton of research for it and it's really limiting my CC time

I am in the ongoing process of learning all I can to operate a successful home-based business. In the spring, I took an Entrepreneur class on starting a business including writing a business plan (still in the formative stage). This fall I've been taking a basic culinary course (we are up to the baking and pastry part, finally!). Next spring, I plan to continue my education on the baking and pastry skills. The same school will be offering business classes geared towards the food industry and I plan to take those classes as well. I figure that by the time I complete the classes that I'm interested in that I'll have about two years invested but I believe that it will be time well spent.

Your post was interesting and informative, thank you!

Leslie

guess I have to do lots of reading to accomplish my goal.

Thanks, PieceofCakeAZ, I'm learning a lot as well as having fun and doing some great networking!
So far, I am maintaining an A average in my culinary class!
Leslie

[/quote]Who's "she". (yep... I'm a dude ). [/quote]


LOL isn't it funny how we assume?
its so great that you and your wife work on the business together. i've got to get my DH into the business side of this! i think he is just enjoying being the "quality control officer" at this point.

thanks again for the info!

POCAZ, is right, in my last year of culinary school, I spent a lot of time on my eventual goal project and my business plan.

Since I do everything in my store, it's very hard to wear all the hats.

I get over tired and right now...I'm in the grips of a cold..I NEVER GET SICK..only when I get overworked.

I have to clean, bake, order supplies, go get them, store them, clean up..do the books, do customer service. Update my portfolio. Make cakes for the web site. Marketing.

it's a little much and still make enough cakes to pay my 2,000 a month rent for my CLOSET!

I couldn't open with a partner because most of the students in school were kids right out of high school and because of the type of cakes I do I cannot hire anyone under 21.

I work over 10 hours a day, 7 days a week right now, I come home...take a hot shower, 2 aspirins, get my dinner if I can still keep my eyes open and then flop into bed.

I've only been open 4 months, and this is going to be my life for the next year!

So....sound good? anyone willing to do this day in and day out?? year after year???

I definitely want to eventually open up my own business. I'm in school right now for business management, I have about 1 year left. In January I'm going to start my culinary classes (im sooooo excited!!!) I know it will be a lot of hard work, but I'm definitely willing to do it. Its kind of a relief actually knowing what I want to do with my life, because for awhile there I had no goals and no vision.

What a wonderful thread to get started!!! Thanks pieceofcake!!

Risque - You have pointed out some VALUABLE information. Alot of us (myself included) think that starting our own business will give us more "free time". Thinking we can get out of the 9-5 rut. When actually, the complete opposite is true! There is a LOT more to running a successful business that meets the eye! Im sure this thread has gotten a LOT of us thinking! And it's wonderful! Thank you so much!!!
Laura

I honestly think (although I could be proven wrong ) that I am a perfect candidate for having my own business. I would love more than anything to do so soon.

In my short 36 years I have done accounting for 11 yrs. and
Managed retail for 7 years. I do not have formal training or business schooling but plenty of experience. I have done payroll, business and personal taxes (including income, payroll, and unemployment). I do personal and small business taxes every year from home and have a small client base who will only use me to do their taxes. I am not the most organized person by the look of my desk but oddly enough I do know where everything is. There are a lot of business management aspects that I may not know but my sister is majoring in business management and these are things if I don't know them she can help.

My husband has his own business and I take care off all the administrative end of it as well.

Could I guarantee the success or fail of my business...no. But I feel that I have as good a shot at making a business successful as anyone from life experience and work experience. The things that I do know I would need to learn first is the rules and guidelines that are expected by the state (FDA). Other than that I think I am ready. I am one of the most personable people you will ever meet. I love dealing with people, even the nasty ones. I have learned in my time working with the public although the nasty ones can get on your last nerve it is that one that comes in and is so sweet and nice that makes it all worth while.

patticakesc

You my friend have a leg up! you have the business side of the business down pat. You will not have a problem trying to figure out where your expenses are!

Good luck with your endeavor!

Ha..I wish I could HIRE you as my PARTNER! lol

RisqueBusiness LOL I wish you could too. The only thing I am really lacking in my plan for my business is $$$$$. Maybe that will work out though.

sorry piece of cake for thinking you where a girl instead of a dude but it was still great advice. I've taken business math and other classes but I still feel a little overwhelmed by trying to cruch #'s. Just something I need to buckle down and work through. Opening up a business with a store front is a lot of work and long hours, I think a lot of people forget that though. My DH, like I mentioned earlier, runs his business from home---but he's hardly ever here!! Always gone working at the next computer emergency. His business is going very well which I'm proud of for him..... just wish he could get some time off though for his own sanity!

it really is alot more than people think it is.....

alot of people have said things like..."you must have so much fun playing in the icing all day!"

yeahhhhhhhhhh...esp. when the phones ringing....the oven buzzer is going off....i'm dripping batter on my foot as i answer the phone, people are "dropping by" for a consult and i have an order due in 20 minutes.

You know what's funny though? The businesses that stay open and do well despite not knowing anything.... I am AMAZED by some of the people I know who have businesses or even some of the businesses I've worked where the computers are ancient and crash all the time, nothing is organized, the people have no clue about marketing or even how to go to the internet and open up a page, etc. etc..... and they STILL make it. I think it's really about having a product that people want. Not that the other stuff isn't important.... but it's amazing how businesses can run without it sometimes too....... I know one guy who sells books & CDs on ebay and he has NO clue how to really use ebay...... I've looked on there about classes and about really marketing your product right and what "keywords" to use, etc. etc..... nope he has NO clue..... but he does really well anyway. So don't get discouraged b/c you don't know some things!!! LOL wish I could listen to my own advice!

The things that scare me the most are the accounting aspect and legal aspect of things..... I suck at numbers..... but u know, a lot of places are pretty forgiving.... if you're late on a payment or something they'll let it slide a few times if you keep ordering from them & you develop a good business relationship..... or you can ask for extensions on your taxes and stuff... and you don't always have to have money up front - you can do a "30 days" payment kind of thing where you don't pay until 30 days after you've gotten the product.....

I'm always amazed at how many people come to the U.S. and open up their own businesses and barely speak the English language! Now that's some guts!!! And a lot of them are successful...

I think I'd like to have my own cake shop one day - like on Ace of Cakes .... but maybe not really a full-time bakery or something like that..... just doing orders..... but we'll see! I have some entrepreneurial (sp?) characteristics but I'm better as a "second in command"..... doing research and "behind the scenes" type of stuff and leaving the big things to someone else..... so maybe that person will come along by the time I'm ready to own my own business!

Thanks for the post by the way!!!

I figured that ( all nighters)

Thank you for all the useful information. Luckily at the moment I am only looking at a small type operation. Mind you I have spent a lot of time reading things on tax and food laws.
Thanks for posting this,
Mel