5 mistakes new cake business make

Struggling To Make More Cake Sales? Follow These Simple Steps

Happy New Month!

We’re approaching the end of the year. Believe it or not

When I read my blog comments, and my number of emails, I have noticed that most cake business owners all want one major thing:

MORE SALES.

In case you don’t know, sales are the lifeblood of very business.

You see, some people think it’s all about “having quality cakes,” “being passionate,” and/or “doing what you love,” yes all these things are important but let me tell you something

… knowing how to make more sales, steadily, without seeming desperate, is how you win the game.

Having additional revenue and income that comes from making more sales makes your business – and life – so much better.

Imagine this scenario a friend calls you and asks, “Do you want to come to Paris?” And you are able to respond instantly with a “ yes!”

And that was that.

See you didn’t have to ask about the cost. The cost and time are a mere triviality to you. You run your own business and you set your own vacation times.

On the other hand, you can reinvest the additional revenue back into your business, to keep your customers happy, or buy more equipment.

So what would you do if money didn’t matter?

Well, when you’ve got profitable sales coming in, day in and day out, you’re no longer thinking about a “what if” fantasy. You’re living it.

The question is, “How can you generate these sales for your cake business?

Here Are 2 Big Problems Cake Business Owners Face When Growing Their Business

Business growth, comes down to solving 2 big problems. And they are:

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Problem #1: “How do I find more customers who are interested in buying my cakes?”

Whether you’re just getting started, or you’ve been baking for a while, your income is tied directly to the number of people you reach who are interested in buying your cakes.

And you can trust me on this: if you reach more of the right people, you will get more clients, customers, and sales.

I will still show you how you can do this but first, let me tell you about the second problem.

 

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Problem #2: “How do I make people really interested in my cakes (without feeling somehow)?

This should be clear, but once you’re reaching the right people, you need to make them interested in buying your cakes.

And, ideally, you should do it without being salesy, pushy, or desperate.

So how do you solve these major issues.

Well for the next 2 weeks I will show you how to solve them

Because I believe doing that is the secret to building a large and profitable cake business.

So don’t miss reading my blogpost next week.


 

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Rotimicakelady is your personal cake fairy. She is a cake business consultant and Coach.

She runs the Cake Business Owners Club where she helps bakers through Online courses have super profitable and successful cake businesses.

She has a passion for helping women who have a passion for baking, transition from hobby cake makers to successful and profitable cake business owners.

She also help cake business owners who have struggling in their cake business with strategies to enable them get more customers, so you make more money. Rotimicakelady is passionate about Cakes, business and making money.

5 Mistakes Made by Bakers In Marketing Their Business

 

So here goes:

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Mistake 1- Not following up with customers and potential clients

Following up with customers after they have ordered from you will guarantee you repeat orders and perhaps recommendations. Remember, getting repeat business from customers is important to growing and staying in business.

Try and always keep in touch with your customers and try and contact them at least once a month or more if you want. You could do this through monthly email newsletters or by SMS. This way, they are more likely to remember you and tell their friends about you.

So to do this, you need to maintain a data base of your customers such as their email address, birthdays, the type of cake they ordered,  phone number, etc. With this information, you will know how to communicate effectively with your customers.

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Mistake 2- Ignoring customers around you

Prospective customers are all around you; in your compound, your kids school, the salon you go to. So get involved and familarise yourself with your local area and network your cake business to them.

To succeed in your cake business, you need to expose yourself and network. People need to know about you so that they can remember you when they need to order a cake.

Many bakers are introverts and would rather be in the background decorating their cakes while someone else sells their cakes. That will be great if you are a big company and can hire staff to do your marketing for you. But most likely you are a one woman business, so you need to expose yourself enough to generate a sustained flow of customers and cake orders.

Don’t be shy, make sure you get out there and tell everybody you meet about your business.

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Mistake 3- Failing to monitor the success or failure of your marketing strategy

Whatever marketing strategy you do, you must monitor it from time to time. If you are not seeing any results, that is, you are not getting any additional orders then you must try another strategy. 

Your marketing efforts should bring you a reasonable return on your investment. You cannot be spending money on marketing s strategy if it doesn’t lead to sales.

So every few months, reflect on your marketing strategies and find out what works and what doesn’t and think of new ways to attract new customers to your business.

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Mistake 4- Misuse of your Social Media 

Social media marketing is a must-have for your cake business. However, starting a Facebook page and posting a few posts are not enough.

Social media is a marketing tool and should be used with a strategy in mind, if not it can actually harm your business.

First, understand how to use social media effectively, and then, create a social media marketing plan. Use your market research to know where your customers are online and create a presence there and communicate relevant, helpful information to them.

Another big mistake that Bakers make is join all the Facebook Bakery groups and be gisting with other bakers. 

Yes this may be all well and good, but being in those groups will not attract any customers.

So instead of joining various cake groups, join groups whose members are your target customers such as groups where mothers are gathered, wedding planners groups etc and build relationships with the admins in the groups so they can give positive recommendations, answer their questions, tell them about your cakes which could lead to more customers.

Mistake 5- Not having a Website 

A website is an absolute must for your cake business. I cannot stress it enough. Your website doesn’t have to be complicated. A website will enable people to view your cakes and also get the information needed to make an order or to contact you. 

Finally, I hope the knowledge of these common mistakes will help you to review your marketing strategy for your cake business and help you make the necessary changes to guarantee your success and more cake orders.

Please leave a comment below if you found this article useful or have any questions. I am here to help.

Till next week.


 

Need help in avoiding these marketing mistakes or do you have a challenge in marketing your business.

Need a step to step guide and helping hand on how you should market your business?

You might then want to have a look at this awesome Course calledThe Ultimate Guide to Marketing your Cake Business’ – This Course is ideal and will give you a boost forward to get your business back on track if you have been having low sales.

So are you ready to finally start making serious money in your cake business, so that you can get more orders!

                             THEN REGISTER HERE

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(Just fill in your details below and  we shall email you with details of the Course or just click on this Link)


me 6Rotimicakelady is your personal cake fairy. She is a cake business consultant and Coach.

She runs the Cake Business Owners Club where she helps bakers through Online courses have super profitable and successful cake businesses.

She has a passion for helping women who have a passion for baking, transition from hobby cake makers to successful and profitable cake business owners.

She also help cake business owners who have struggling in their cake business with strategies to enable them get more customers, so you make more money. Rotimicakelady is passionate about Cakes, business and making money.

Why you are not Making Money in your Cake Business

Okay you have finally taken the push and have started your cake business, maybe part or full time. You are passionate about baking. You have done business card, printed fliers and have gone for training to improve your skills, but still you are hardly getting any orders.

And when you finally get an order, the customer prices your cakes so low that you are telling yourself what is the point.

If this is you, please continue reading.

The hustle is real but here are some mistakes you probably are making that is preventing you from making money

You are selling cakes that people do not want to buy

Maybe you want to do something different, like maybe do different flavours of cake. Maybe you offer unusual flavours like beetroot, peanut butter, avocado, wheat germ, etc. Yes if you were abroad, you could get customers but here, there are few adventurous types in Nigeria.

So it’s best you stick to the common flavours like vanilla, chocolate, strawberry, lemon, chocolate and red velvet. Maybe when you become more popular you can expand your product range after you have done enough research and offer those unusual cake flavours.

Not realizing you are in business

You are still seeing yourself as a hobby baker, even though people are paying you money for your cakes. Once money is exchanged, this is a business transaction even if you are selling to your sister or a close friend.

 As a business owner, things become different. You are now a professional baker and you should see and portray yourself as such.

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Not keeping track of expenses

 You have to keep track of what you are spending. You have to form this habit or keeping bookkeeping books and keeping receipts and not using your personal money to pay for cake stuff. A helpful guide is a webinar I did- Booking Systems for Cake Businesses. Click here and here to watch.

 

Waiting for customers to just miraculously appear

Customers are not going to magically appear. They just don’t fall from the sky. Yes it will be lovely if that happens. You have to go out there are find them. And that means you have to market your business to the hilt. If not you will just be staring at the sky. I have a marketing Course that can help. Here are the details.

You Discount and negotiate too much

Once a potential customer starts complaining about your price or question your pricing or do not immediately order, you start offering discounts.

I know especially when you first start and really want to make a sale you give discount, offer extras, and promise all sorts of things just to get that order.

The problem with this, is that I might set of a trend and sooner or later you will be known as the cheap baker and you will be working for next to nothing.

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You are not confident

You are unsure of yourself or your skills. You still view yourself as a beginner or a learner. When you are describing your business or describing a cake you want to do for a customer, you do not talk in a confident tone. 

You do not own the conversation. You don’t give ideas and just accept whatever the customer wants. When you do this, people can tell that you are a learner, even though you may be the best baker in town. You are scared of charging high prices, you don’t sound confident about your skills, you can’t really articulate why someone should pick you to make their cakes over another brand, and you can’t say no to the customers who price you cheaply.

You are a Jack of all trades

You are one of those people that have multiple businesses. You not only sell cakes, but also clothes, shoes, toys. You also are a network marketer.  You need to concentrate on one thing or at least a similar line of business. People will just get confused not knowing what exactly you do. In your profile you advertise all sort of stuffs. If you are serious about your cake business and want to make a success of it, then you should let go of the others and concentrate on cake.

Whew!

I’m going to stop at these reasons ( so I do not overwhelm you), but believe me there’s still so much more.

 

There are a lot of reasons you might not be making money, and my question is always this:

 

“What are you going to do about it?”

 

“Are you going to allow this your business that you are so passionate about go to waste? Because if you keep going from month to month without making money…it’s only a matter of time”

Let’s solve this problem together.

 

Let me help you make your money

 

I am still taking cakers for my Masterclass- Pricing your cakes right to build a profitable cake business. This course is a 30 day Masterclass program that will help you gain the confidence to price your cakes, how to market to get customers, how to price your cakes easily, how to deal with customers and also pricing system to have in place for your cake business so that you can build a profitable cake business.

I am sure you know that this is the course for you…so join the masterclass.

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me3Rotimicakelady is your personal cake fairy. She is a cake business consultant and Coach.

She runs the Cake Business Owners Club where she helps bakers through Online courses have super profitable and successful cake businesses.

She has a passion for helping women who have a passion for baking, transition from hobby cake makers to successful and profitable cake business owners.

She also help cake business owners who have struggling in their cake business with strategies to enable them get more customers, so you make more money. Rotimicakelady is passionate about Cakes, business and making money.

 

Top 5 Mistakes New Cake Business Owners Make

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When I was complying materials for the Baking Business School. I observed some common mistakes made by new cake business owners. It’s one thing to be a skilled cake decorator, but it’s something quite different to be the owner of a successful cake business.

 
Making mistakes is part of life and it’s only by learning from those mistakes that we become better business owners. Having a cake business is about figuring things out as you go along, but knowing the common mistakes new baking business owners make is a good way to avoid them entirely.
 
                    ‘Remember you’re A Cake Business Owner, not a Cake Decorator
 
To thrive in the cake business world, you have to be a good marketer and be business-minded.
 
Here are a few of the most common mistakes in staring a cake business that you should try to avoid.
 

 #1: Undercharging For Your Time and Talent

Most of us started like this- you make a cake for a friend and suddenly everyone is telling you to go into business because your cakes are great. Then a friend asks you to make a cake for her child, gives you money and suddenly you’re in business. You have just conducted your first business transaction. Yay!
 
The thing you have to realize is that the moment you charge for a cake, you’ve moved from amateur to professional. This shift requires a change in thinking, especially when it comes to how you view the value of your time.
 
In most cases, selling your cakes means you’ve already made an investment in becoming a legally registered business. All that is needed is a simple change in perspective: from amateur to serious business. The rules are entirely different, and you need to think about things in a different way  – even if your cakes are not perfect and you only charged a few Naira for the cake.
 
If you are serious about your cake business and it’s not just “a side hustle”, you must think seriously about the cost of keeping your business open. With this change in perspective and a realistic valuation of your time, you can calculate accurate prices that reflect your work, effort and skills.
 

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#2: Working For Free

Even if you are new in the cake business, my advice is to always know what your cakes are worth, and refuse to negotiate below a certain price.

Making a cake for free in the hope of future orders means you won’t be in business for very long. If someone asks you to bake a cake for a very low price saying that your sacrifice will lead to more highly-paid opportunities in the future. Don’t do it! This is an insult to any baker and does a lot of damage to your business and the cake industry at large. You risk being known as a cheap cake maker who will negotiate at any price.

#3: Waiting for cake customers to just appear

 You’ve got the business cards, the cake equipment, the website and the logo, but no cake orders are coming in. New cake business owners forget that it’s not enough just to be a great baker; you’ve got to go out there and get customers. You need to market and get on social media to advertise your cake business. Word of mouth is good and helps bring in customers, but you can’t always rely on that.

#4: Not keeping track of your expenses

While you were still an amateur baker you never thought that such things as your cake equipment and ingredients were ‘expenses’. When you start selling your cakes as soon as you start, you should start keeping track of what you’re spending.
 
So keep track of the items you’re buying and note your expenses even if it’s just in a notebook and also keep your receipts. This exercise helps to keep a business mindset.

#5: Living in a Dream Fantasy

Running a professional cake business, is not so easy. Most cake business owners feel u will become a millionaire overnight just by baking cakes.
 
The reality is that the cake baking and decorating is only a small part of your business efforts.  The rest is selling, accounting, marketing, social media, customer service, ordering supplies, negotiating with customers and so on. Those business-related tasks are required in running your business so don’t ignore them. However, the good news  is that now when you’re doing those tasks, you’re and investing in your future cake business long-term success.
 

Other Business Mistakes worth noting include:

Worrying about the competition

As a new cake business owner, you need to know your competition, like what they charge and what products they sell. Knowing this is information is vital because it helps you make decisions.
 
However, if you’re spending the time comparing yourself to the competition online, complaining about other bakers doing better than you is a complete waste of your time. Spend that time marketing your business, developing new products, and surveying new and existing customers. Remember this is a business and you are doing this to make money doing what you love.

Setting Prices Without Knowing your total Cost of Goods Sold

Pricing is not discretionary. It is a calculated process. Costs includes all the direct costs necessary for making a sale such as ingredients, but not fixed costs such as internet, telephone, rent etc.
 
Take note that you should also include your time in calculating your costs. Your time is your most valuable asset and you need to charge for it.
Having determined the cost for any cake you sell, its good practice to mark that up at least 3 times or 50% to give a final retail price. Try and resist the temptation to reduce your prices for fear of not being able to make a sale.
 
To know more about pricing with pricing guides.  Register for the Start Your Cake Business in 7 days free Mini Course..
 

Failing to have Business Plan

I know! I know! this can be a hassle, but it is worth doing. When you’ve started your new cake business try to take a break and write a business plan.  Know this can be quite boring especially when you not only have to bake, but market, sell and so on. However, without a plan, you are unlikely to achieve long-term success. A business plan helps you plan your goals and tracks your progress.
 
It provides a continuous frame of reference for your cake business, defining your goals, and making you accountable.
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In conclusion, in the cake business, the easy part is the baking and decorating but the tricky part comes once you are actually in the business. Staying in business, and being successful at it, is most challenging thing you may have to face.
 
If you remember one thing, is that, this is your cake business and is not just about the baking, it’s about the business side of it too.
Happy Caking.
Talk to you next week.
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RotimiCakeLady