Best Place To Open A Bakery
The best place to open a bakery is at an accessible location near your suppliers and your target demographic. Regardless of the type of bakery you’re opening, there are universal considerations for where you start your bakery business. Consider the following in your bakery location analysis:
- Health Regulations and Zoning
- Safety and Crime Rates
Once you’ve found a suitable location for your business, you can hire a lawyer to draw up and negotiate a lease with the landlord. To protect yourself from any potential issues when negotiating a lease, be sure to specify the length of the lease, any raises in rent that might be included, who will pay for potential renovations, and any utilities that are covered.
Find A Business Mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Network With Local Businesses
5. Network with other local businesses in the same niche. I have befriended a local restaurant owner who recommends my cakes. When her customers book a party or catering job with her and they need a cake, she calls me! I had no idea she would do this when we initially became friends, but it’s great that she does! I have lost count of how many cakes I’ve made based on her recommendation.
I also have contacts with local photographers, wedding planners, and caterers. We recommend each other for services when our clients make inquiries and it’s beneficial for everybody! Note: I didn’t begin relationships with any of these people simply to gain an edge in my business. I recommended them because I genuinely like their work and the friendships and mutual promotion followed. Being authentic and putting people first is key!!
The great thing about these 5 Easy Ways to Grow Your Cake Business is that they won’t cost you a lot of money other than the business cards and the website . Granted they won’t explode your business overnight, but they will bring slow and steady growth, which is best!
Do you have other tips or suggestions to grow a cake business? I’d love to hear your thoughts in the comments!
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Get Baking With Sweet Artist Academy
It can be a challenge to start a cake business from home, but all it needs is a little time and your commitment.
Sweet Artist Academy makes your dream cake business at home quick and easy. We have the courses and all the resources you need to get your business at home going. So check our class calendar, book a class with Sweet Artist Academy, and get your cakes in front of the nation!
Open A Business Bank Account
It is important to establish a bank account in your cake business name. This process is fairly simple and involves the following steps:
If youd like to quickly and easily complete your business plan, and complete your business plan and financial model in hours.
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What Happens During A Typical Day At A Cake Business
Each day will be structured differently from the next, depending upon the orders you have lined up and how youve decided to structure your business. Many cake businesses forego a storefront location, focusing solely on custom orders. If you do choose a brick and mortar location, you will need to spend additional time baking, so that custom orders are met and displays are filled regularly. Once cakes are baked and decorated, orders should be packaged for delivery.
For many bakers, wedding cakes are their biggest revenue generators. To insure the cake arrives safely to the venue and is presented correctly, these works of art are often delivered and set up by the bakers, themselves. If wedding cakes are something you wish to offer, plan on devoting a portion of each day for transporting these goods. Most prospective customers will also want to have a taste-testing session prior to placing an order. This is an opportunity to build a relationship with the client, showing them how your creations stand out above the competition. It also gives them a chance to make decisions regarding the flavors and decor of the cake.
Cleanliness sets the professional apart from the hobbyist. A bakers kitchen is like a sanctuary and must be treated as such. It should be thoroughly cleaned after each order is filled, and at the end of the day. Since each creation required a different set of ingredients, replenishing baking supplies is typically done on a weekly or bi-weekly basis.
Theres Always Room At The Top
The fact that there seems to be many, many others more successful than you, doesnt mean there isnt space for you to succeed too. No industry ever says Nope, weve got enough gifted, influential people here. Please try somewhere else. There is opportunity and space for each one of us to come out tops in our chosen field of work.
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What I Needed Was A Miracle
As things seemed to peak to a terrible crescendo, fervent prayers of my church, friends & family led to a sudden breakthrough when I was in ICU. I cant quite explain it, but I know God healed me. In the deepest darkest time of my life, He was right there with me and walked me through it. And in the weeks that followed, I gradually inched my way to a full and complete recovery without any lingering impairments or need for ongoing medication
Once recovered, I was keen as beans to start LIVING again, and I thought that meant getting right back into my pastry job . But fresh outta recovery, I was unexpectedly made redundant, which I suspect was a result of my bosses getting freaked out with my whole sicky-stroke-seizure-gross-weirdo fiasco. So yeahMAJOR bummer.
Almost at exactly the same time, my then fiancé lost his job too. Which meant we were planning a wedding and a life together without any money.
What Can I Make For My Home Baking Business
The list is endless when it comes to choosing what to bake for your new business. A cake making business isnt necessarily just cakes some choose to branch out into other areas.Just a small selection of our personal favourites include:
- Brownies and blondies
You could even go savoury with pies, bread, pastries and so on.
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A Spark Was Lit And I Was Bewildered To Realise How Much I Enjoyed Making A Handcrafted Meticulously Designed Cake And Selling It To Someone Who Appreciated And Loved It So Much
It was a no brainer for me.
I realised didnt JUST want a job for jobs sake. I didnt want to work for under-appreciative bosses. I didnt want to spend a majority of my life doing something I didnt remotely enjoy.
I wanted to create. I wanted to bake. I wanted to be a #girlboss . And call me immature, but I wanted to work at home in my pyjamas everyday!
So the decision was made and I went for it. I had set myself a steep learning curve but I was determined to make it work because I thought if others can successfully carve out a career out of this, then I can too.
..
Which leads me to share a few very important core mantras that saw me through the rough patches of my caking odyssey:
Lets Meet The Bakery Business Owners:
Michelle Green started baking when she was a teen, but it wasnt until she was well into her corporate career that she realized baking was her true calling. Fed up with the stale muffins that seemed to be standard fare at all of her board meetings, this baker and mother of triplets decided to ditch the business suit and open her own shop in Australia called Three Sweeties.
Barbara Batiste was also baking treats at an early age for her close-knit Filipino family, and after years of amazing her relatives with her creations, she decided to turn her love of all things tasty into a business. She started in her home, and her business continued to expand. She has outgrown three commercial kitchens since, in part due to her creative business modeling, which includes both a catering service and a mobile dessert food truck. Now, shes preparing to open a storefront in West Los Angeles called B Sweet Dessert Bar.
Victoria Roe started baking over a decade ago when she was asked to make a carrot cake for her mother in laws birthday. She runs her business from home, a cottage industry, in a small village in Ohio. Most of her customers find her through word of mouth or learn about her business when they taste one her creations at a local coffee shop. She focuses on gluten-free and veganbut youd never know it to taste them. Running Three Leee Cupcakery from home gives Victoria the flexibility be present to her young family and pursue a degree in business while bringing in income.
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Dont Forget About Marketing
Your initial marketing strategies will hopefully result in a steady stream of repeat customers, but that doesnt mean you should let up on your marketing efforts.
Try new marketing tactics. Buy ads on social media, participate in charity events, and hand out business cards as often as possible. You should always be looking for new ways to get your name out there, Green says.
Choose Where To Register Your Company
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if youre planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to cupcake businesses.
If youre willing to move, you could really maximize your business! Keep in mind, its relatively easy to transfer your business to another state.
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Step : Obtain Necessary Permits And Licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
Federal Business Licensing Requirements
There are federal regulations regarding what can and cannot be added to, sold as, and processed with food. Attached is a resource from the Food and Drug Administration detailing the process of starting a food business: How to Start a Food Business
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a cake business. Learn more about licensing requirements in your state by visiting SBAs reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerks office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Certificate of Occupancy
A cake business is generally run out of a bakery with a commercial kitchen. Businesses operating out of a physical location typically require a Certificate of Occupancy . A CO confirms that all building codes, zoning laws and government regulations have been met.
Food Regulations
Secure Startup Funding For Your Cake Business
In developing your cake business plan, you might have determined that you need to raise funding to launch your business.
If so, the main sources of funding for a cake business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a cake business that they believe has high potential for growth.
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Get A Business Credit Card
You should get a business credit card for your cake business to help you separate personal and business expenses.
You can either apply for a business credit card through your bank or apply for one through a credit card company.
When youre applying for a business credit card, youll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business youre running. Youll also need to provide some information about yourself, including your name, Social Security number, and date of birth.
Once youve been approved for a business credit card, youll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.
Freedom To Work When You Want
A home bakery business will allow you to set your own hours. You can work when you want and take time off in the wedding off-season which is typically the winter. You can also work in the evenings only if that works better for your schedule.
This is a great job for a stay at home mom who wants to make extra money.
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Organize Your Finances And Plan For Taxes
One of the cardinal rules in business is to always keep your business banking separate from your personal banking. This means setting up a separate business bank account, which you can do once youve created your company.
You may also have to charge sales tax and/or food tax on the items you sell. Youll need to keep careful track of your sales and document their breakdowns so you can ensure you pay the proper amount of local and state taxes.
Get Some Good Recipes Behind You
I have always loved baking so I have some recipes I’ve developed over time. I tend to stick to only offering a few flavour options but I’ll do something a bit different on request, especially if it’s a dietary requirement. Also, spend some time sourcing ingredients – if you shop around you can save lots of money.
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Have A Defined Friends And Family Policy
Before you sell your first scone, be aware that friends and family will probably ask for a discount.
When youre selling cakes and cookies as a side gig, its fine to give the neighbor or the PTA president a discount, but when you start your business, its different. All those wonderful people who previously bought cakes off of you for the cost of ingredients are going to need to be re-educated about what youre doing now,
Green says. Those who really love and support you will also understand your need to feed your family and pay your rent. If you want to offer a 10 percent discount to friends and family, thats fine, but whatever your policy is, make sure its consistent.
How To Turn Your Cake Decorating Hobby Into A Business
At this point you probably arent making much of a profit on your cakes. This is because youre doing this as a favor for friends and family and friends of friends of friends but where does it end?
Youre run ragged, stressed out and maybe making only a few pounds pocket money along the way. If youre going to be this busy and stressed , you may as well start making at least a half-decent income from this hobby of yours.
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Obtain License And Permits For Food Businesses
The next thing to keep in mind is you need a permit for food safety and a license to sell food products. For all food startups in Australia, a license and permit to operate are required. If you are caught conducting business without a license, you will be fined, which might jeopardize your business. Better yet, get started right by obtaining the requisite licenses and permits.
Get Business Insurance For Your Cake Business
The type of insurance you need to operate a cake business will depend on the type of cake business you are running.
Some business insurance policies you should consider for your cake business include:
- General liability insurance: This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
- Workers compensation insurance: If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
- Commercial property insurance: This covers damage to your property caused by fire, theft, or vandalism.
- Business interruption insurance: This covers lost income and expenses if your business is forced to close due to a covered event.
- Professional liability insurance: This protects your business against claims of professional negligence.
Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.
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Include Business Cards With Orders
3. Get great business cards and include them when you send out orders. Back when I was actively trying to gain new clients and more orders, I included 3-5 business cards on or in the boxes of every order I sent out. That way if guests at the party or wedding asked who did the cake, my client could not only tell them but hand them a card! I can’t tell you how many times I gained new clients this way. Grab some beautiful cards here.
If other local businesses allow, you can also place them on the counter or in the windows where potential clients might hang out.