I am continuing my post from last week on the structures you should have in place to have a successful cake business. In case you missed the first 6, you can read them here. Now lets get to it.
Keep track of your ingoings and outgoings.
Since you’re running your own business, you need to keep track of your income and your business expenses so that you can enter this information into the necessary financial books so you will know whether you are making a loss or profit.
Well there are 3 essential books you should have in your Cake Business where you will input information such as records of money coming in and out and they are:
- The Profit and Loss Statement,
- the Cash Flow Statement and
- The Balance Sheet
These are the 3 primary financial statements used to assess a company’s performance and financial position.
Develop a business plan. Everyone always wants to skip this part and get straight to the baking, but it is really and truly important.
Think of a business plan as simply a list of questions on a form or a template. It makes you think of questions that you may have or have not considered like
How much does your product cost you to make, and how much do you want to sell it for?? Where will you sell? How will you market yourself? Is there demand for your cakes in your area? How much competition will you have? How do the competition’s products compare to yours in price and quality? How long will it take to turn a profit?
Your business plan will tell you whether or not your business is even profitable.
It’s worth it to make a plan, rather than bang your head against a wall for months wondering why your business isn’t working.
By having those questions and answers in front of you, it can help you map the way forward for your business and help you define your goals in real terms and it is something to refer to when your business starts to grow.
For your cake business you should develop an online presence.
You make a product that looks beautiful, so photographs are going to be key.
Set up a simple website with important details like what you do, where you’re based, and how people can place an order, and add plenty of mouth-watering photos. There are tons of website builders to choose from, including WordPress, or Wix.
Also set up a Twitter account, a Facebook page, and an Instagram account for your business, and keep them updated with posts and photographs. It’s also important to interact with other people on social media, so spend a few minutes each day liking and commenting on other people’s posts, and following relevant accounts.
To help in your marketing efforts, you should Set up a website and Facebook page for your business marketing. Quite a lot of marketing on Facebook can be achieved for free or at least very inexpensively.
The importance of a professional looking web site is that people will be able to find you more easily and your business will appear more professional. Also with sites like Facebook and Instagram you can display a gallery of your cakes and also give details of how potential customers can contact you.
You should always your business cards with you. when you are out and about marketing or just going on with your life.
Unique Selling Position
Think about standing out. There’s a large number of baking and cake making businesses out there, so you need to think about how you’re going to differentiate yourself.
What is your unique selling proposition or USP.
A USP is the reason why your baked products are different from the rest. What makes your customers prefer you more than the other bakers.
Your USP is the reason why your customers decide to order from you and why they decide to remain with you.
Think about something in your business that makes it different from the rest. Your business is unique; it has its own personality. So think about what makes you distinct and special. Do you make awesome cupcakes or your cakes are fat free. You could specialise in vegan and/or gluten-free or fat free bakes, for instance, or concentrate on children’s party cupcakes or wedding cakes.
Take a few moments and think on this.
Develop a Marketing Strategy
You need to market your business.
People need to discover your wonderful cakes, so it’s important to think about marketing strategies. Of course you can use social media to reach potential customers, but you can think of other ways.
If you’re specialising in wedding cakes, you may be able to put flyers in a wedding dress shop, or develop a relationship with a local wedding venue.
Here are a few examples of some marketing strategies you can employ for your cake business:
- Use Facebook advertising.
- Word of mouth
- Create fliers
- Offer an opening special
- Attend local events
That is it, the business structures you should have in place in your cake business.
Now go out there and Start selling! What are you going to do today to improve your cake business. Please comment below.
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Hello, my name is Rotimicakelady and I am a cake business coach that teaches cake business owners how to grow and have a profitable cake business so that they have a constant stream of customers buying their delicious treats.
I have been running my own successful home based cake business for some years now. I have also been teaching bakers through my online courses who are struggling with low sales, with strategies on how to market, and price their cakes for profit.
In addition I am also run a Facebook Group where I coach, offer support and help bakers in their businesses.
I have helped over 50 bakers through my online course ‘A comprehensive guide to starting your cake business in 30 days’ with much needed information on how to start a cake business in Nigeria. I also teach close to 4000 cake enthusiasts through my Facebook Group how to run a money making cake business.
I have been featured in ‘Naija Top Baker’ magazine, one of Nigeria’s foremost cake magazines and also been a Guest Speaker at the Bakery World Convention.
If you are struggling with getting customers for their cakes, I can help you solve this problem by showing you how to market, sell, price, plan, structure and brand your business so you are constantly selling to the right people who want your cakes.
We are available on a number of social media platforms where you will find educative content, videos, audios and other resources to help you in your cake business.
So please check them out and don’t forget to follow, subscribe and engage with us on all the baking Business School accounts.