Post by LauraMoser on Jan 17, 2013 15:10:49 GMT -5
I've mentioned it before on here, but I really want to start my own custom cake business. I've talked to someone from a local group that provides guidance for people starting small businesses. I've gotten lots of great info from them, and I have a good idea of the whole process.
My problem is the money part. I want to start this business like, yesterday, but lack the financial means at this point. DH and I are working on getting out of debt and trying to save rather than spend. Quite honestly, my credit sucks currently from past mistakes. We are working on fixing it, but it will take some time.
When I spoke to the man at the SCORE office (organization to help start small businesses) he did say that banks use your own personal credit history when you apply for a small business loan. That means that I'm very unlikely to get any kind of loan at this point, and really, I wouldn't feel comfortable with a loan payment at this point.
I really want to get a business going, but my biggest obstacle is having licensed kitchen space. There is a local kitchen incubator, which is a great resource, but at $25/hour to rent it, it would cost me more than I would charge for a cake. I could work on getting my own personal kitchen licensed, but that would require us to get rid of our pets and to do some improvements. We can't afford a kitchen reno right now, and I don't want to get rid of our pets that the kids love.
So can anyone help me think outside of the box here? Or am I just stuck waiting until our debt is paid off and we can save up the money I would need to get it started?
I've wanted to start this business for years now, but it is always the money that is holding me back...boo.
I agree with Velvet, please do not make cakes without a license. The liability is huge and there are very large fines should you get caught.
I don't have advice for you because I'm in similar shoes, except cookies instead of cake. I haven't found the answer to this solution. The only suggestion I would have is to research cottage laws in your state.
Post by phunluvin82 on Jan 17, 2013 16:20:09 GMT -5
Do you have a friend or relative who has and updated kitchen and no pets that could maybe get licensed?
I don't know how much of a PITA the process is so I don't know if that's realistic or not.
But in that instance, maybe you could agree to paying them whatever the licensing process costs + a % of your profit to use their kitchen like 1 day a week or something?
How about this - is there anyone else you know that is interested in doing the same, so you could split kitchen costs? That's probably a reach...
I would definately try to go this route or to look for a silent partner who can front you the money. Is there a place you can advertise for a kitchen share partner? Does SCORE have a bulliten board or something like that?
On average, how long does it take you to make and decorate a cake? Are there things you can legally do outside the kitchen to speed up the time (make sugar flowers, etc ahead of time?)?
I think getting started you are going to have to spend some money. I would make arrangements to for the rental space as needed. You need to charge for your cakes accordingly. I have not seen a professional baker in our area make even a small 6 inch cake for less than $25. That said some of your first cakes may be at a loss/break even but you need to get some references and referrals. Once you get some larger orders, you will make money. I would definitely do some research on cake prices in your area for starters to get a more accurate idea of what you should charge.
1. Can you use a local firehall or church? Their kitchens may already be licensed and they're likely to let you use it for less money, especially if maybe you also made some treats for them. Also, try a local soup kitchen too in exchange for some baked goods.
2. My cake baker for my wedding---she purposely lived *just* over the border into another state where regulations were totally lax. Perhaps that's something you could look into, another county?
3. Use a relative's house.
4. Use a local bakery's kitchen. Or a local grocery store.
5. My cake baker eventually had a commercial kitchen built in her basement. There's a separate entrance and everything.
6. Contract for wedding cake with hotels---you can then use THEIR kitchen if you cut a deal--I'll provide all the cakes for weddings here for just X if I am also allowed to use your kitchen to make them and my other orders.
Kwynn had a good point here: "Contract for wedding cake with hotels---you can then use THEIR kitchen if you cut a deal--I'll provide all the cakes for weddings here for just X if I am also allowed to use your kitchen to make them and my other orders."
I had a former co-worker who did this at the resort where I worked. It was great on both sides.
Post by imojoebunny on Jan 17, 2013 19:21:53 GMT -5
I don't know if this exist we're you are, but near my house are live work lofts and condos. Many of the businesses are only for work. They all have kitchens. It might be an option for you to connect with someone who owns one of those, but does not use the kitchen part, which is often on a different floor, or would be available after hours for you to use, in exchange for subsidizing the rent.
You would obviously have to go through the certification process, but a lot of them don't have pets, and would not be using the kitchen for much more than coffee and a microwave. They are also in commercial area, so no business zoning problems.
highlandbakery.com/ is a great bakery. Check out their cakes. They keep growing and growing, and also have a killer restaurant.
1. Can you use a local firehall or church? Their kitchens may already be licensed and they're likely to let you use it for less money, especially if maybe you also made some treats for them. Also, try a local soup kitchen too in exchange for some baked goods.
2. My cake baker for my wedding---she purposely lived *just* over the border into another state where regulations were totally lax. Perhaps that's something you could look into, another county?
3. Use a relative's house.
4. Use a local bakery's kitchen. Or a local grocery store.
5. My cake baker eventually had a commercial kitchen built in her basement. There's a separate entrance and everything.
6. Contract for wedding cake with hotels---you can then use THEIR kitchen if you cut a deal--I'll provide all the cakes for weddings here for just X if I am also allowed to use your kitchen to make them and my other orders.
Hope that helps!
#1 is a good idea assuming you can find a place that will let you do it. (possible liability issue)
#4 is pretty unlikely since you'd be a direct competitor AND it's a liability issue.
#6 is pretty unlikely since you're just breaking into the business. I doubt many hotels are going to be willing to take a chance on a newbie. Plus, nicer hotels that have the need for a pastry chef usually have one already.
#5 is exactly what my wedding cake maker did. If you were to get inexpensive/used appliances and some stainless counters / shelves it might not be overly expensive. The most expensive part would be getting the gas/electric & water to the new space. I think if you can keep a door between you and the pets it'll pass code (but check your area - that works in our county).
It's going to be tough without significant cash investment... can you maybe try a kickstarter campaign?
Hmm, what about finding a caterer in your area that does weddings and does *not* do cakes currently? And they do on-site catering (food is made in their kitchen and then transported). Could you try offering them free wedding cakes in exchange for the use of their kitchen?
Or what about buying (this might be crazy) a mobile truck, like a cupcake truck, and cooking out of there?
Hmm, what about finding a caterer in your area that does weddings and does *not* do cakes currently? And they do on-site catering (food is made in their kitchen and then transported). Could you try offering them free wedding cakes in exchange for the use of their kitchen?
Or what about buying (this might be crazy) a mobile truck, like a cupcake truck, and cooking out of there?
Hmm, what about finding a caterer in your area that does weddings and does *not* do cakes currently? And they do on-site catering (food is made in their kitchen and then transported). Could you try offering them free wedding cakes in exchange for the use of their kitchen?
Or what about buying (this might be crazy) a mobile truck, like a cupcake truck, and cooking out of there?
NOT a bad idea!
It isn't a bad idea but do not barter cakes for your space. They will charge you a $ amount and you need to pay them in $. Trust me, people do not value cake and you could get into a sticky situation. Dollars are dollars. But the issue with a caterer is that they will be busy during wedding season the same time cake people are busy: weekends. So it might be difficult to find a caterer to rent from.
Can you make cakes without the license until you build up enough credit and pay off your debt?
Please, please, please do not listen to this advice.
I don't know anything about the cake business. Is this really that weird not to have license? I didn't even know such a thing existed.
As a consumer looking for a tasty, reasonably priced cake, I'd be more than happy to buy a cake someone made at their home as a side business. Particularly if they were a recommendation. Obviously this type of situation wouldn't be as profitable as making huge wedding cakes and cakes for big corporate events or whatever, but I'm certain you could make some money and start building a clientele on birthday cakes and other more casual cakes. Assuming you keep your kitchen clean and don't hang out with the dog while you're baking, I can't see how there would be any more harm in eating a cake you made vs. something I cook in my own kitchen so I don't care if you have some kind of fancy license, KWIM?
Don't take this to mean I'm suggesting breaking a law, I just mean maybe start out earning some money on the side and then eventually move into a more "official" business and get licensed and whatever. I don't imagine it is illegal to sell a cake without a license, it just might not be possible to truly run a business.
Please, please, please do not listen to this advice.
I don't know anything about the cake business. Is this really that weird not to have license? I didn't even know such a thing existed.
As a consumer looking for a tasty, reasonably priced cake, I'd be more than happy to buy a cake someone made at their home as a side business. Particularly if they were a recommendation. Obviously this type of situation wouldn't be as profitable as making huge wedding cakes and cakes for big corporate events or whatever, but I'm certain you could make some money and start building a clientele on birthday cakes and other more casual cakes. Assuming you keep your kitchen clean and don't hang out with the dog while you're baking, I can't see how there would be any more harm in eating a cake you made vs. something I cook in my own kitchen so I don't care if you have some kind of fancy license, KWIM?
Don't take this to mean I'm suggesting breaking a law, I just mean maybe start out earning some money on the side and then eventually move into a more "official" business and get licensed and whatever. I don't imagine it is illegal to sell a cake without a license, it just might not be possible to truly run a business.
The risks of starting a business making cute crocheted, doggie beds on Etsy without the proper licenses/legal business structure is pretty low, once you involved food, the risk sky rockets. All it would take is one unhappy customer to ruin her financially. One person who got a tummy-ache after eating a slice of cake, one stray dog hair, and she could be sued for everything she is worth. If she doesn't have the proper business licenses/permits/legal structure and she is cooking food for commercial purposes in a non-licensed kitchen, it would be extremely difficult for her to prevail if sued. And without the proper business protections, she has no limits on her liability (personal assets are not protected).
You need a business plan. The price of your cakes needs to incorporate your business costs.
Can you post a pic of some of the cakes you've made? I'm curious to see what they look like.
Agreed.
Do you use mixes or anything pre made? That would be worth less to me. I would pay more for a cake made from scratch. But that's going to cost more than $25 to make!