When we start out making cakes as a hobby, most of us find ourselves magically in business without really meaning to.
One day we make a cake for a few friends, and then someone asks you to make a cake for a price, and then before you know it you’re in business!
The decision to stay at home or having a shop is based on many different factors – money, lifestyle, the kind of product you make, who your target market is and so on. There is a lot more to it than this list, but here are some things to think about if you’re going to consider having a home based cake business:
- The overheads for running a home based business are generally lower. Some (not all) of your costs simply won’t apply in a home environment, for example you will be dealing with a whole lot of local authority permissions when having a shop. The bonus to having less overheads is having more profit.
- It can be a great way to try out having a business. I’m not suggesting you go in and out of business overnight, but the outlay to starting from home is small enough that if you decide that business is not for you, it’s a lot simpler and faster to close down.
- It can be a challenge to have a work and family balance and to keep your work space as your work space without interruption from your kids, but on the plus side, your children can learn from you. Kids learn a lot by watching you work and are happier to have you around making flowers than not have you around because you’re at your shop.
- Space, or rather a lack of space, can either be a challenge or teach you how to work very efficiently. You will find out that being in the cake business requires a lot of equipment and space.
- There is a perception (an unfair one) that prices from home-based cake businesses should be less than those at a cake shop, so you’ll need to consider that when doing your marketing and branding.
- Strangers will know where you live. This isn’t a big deal, and there are ways to manage it (don’t put your whole address on your website) but it’s something to think about it. Your privacy becomes less private than you might like!
- Working from home is a lot more flexible, but that also means it potentially gives you less personal time as well. Working from home requires a fair amount of self discipline because it’s so much easier to “just answer this last email,” or take that call at 5pm on a Sunday night.
- Clients will expect that you are more available because you work from home, so they will be really late or really early to pick up their cakes. They will also expect that you work to their timetable of when it’s convenient for them to pick up or meet. They assume because you work from home you sit around all day waiting for them. You’re going to be firm and discipline them about your availability, which is sometimes hard to do.
I would love to help you further. Baking Business School has a Coaching / Mentorship Program.It’s a training program, where we work together, creating action steps, with support and help on every single level of your cake business.
It is also Marketing Strategy session designed specifically for your cake business and how you can go about implementing it.
If you are just starting your Cake Business, this is how i can help you. Just click here.
If you are already in the cake business, this is how i can help you. Just click here.
Need some help with your Pricing? Register for the Pricing your Cakes for Profit Course.