Accounting

Do You Have A Business Or An Expensive Hobby?

This is something many home based cake business owners struggle with, and I will admit have struggled with this in the past.

Treating your business like an expensive hobby instead of a business. You might be doing this right now but you might not know it.

So, in this blogpost I am going to help you recognise whether you are actually running a business or in fact just have a very expensive hobby.

If anything I say below rings true, then you may just be running a hobby rather than a fully-fledged business, then please go and register for my Pricing your cakes right to build a money making cake business Masterclass where you will be taken through the process to make sure you move away from hobby cake business owner and move into the role of a successful cake businesswoman.

  1. You have not even registered your company

One of the first steps in setting up your business is to register it at the Corporate Affairs Commission.  Structuring your business properly from the start sets the right tone for not only yourself but for your potential customers as well.

You will appear more trustworthy and professional if you have a duly registered company. How can you expect your potential customers seriously if you too don’t take yourself seriously?

  1. You do not know how to price your cakes

I know pricing can be a real struggle for cake business owners. Most times we do not know how much we should charge for our cakes and in the end we allow ourselves to be under-priced.

People value what they pay for. If a person values what you are doing, then you should charge appropriately otherwise they will value you less and you will be known as the cheap cake lady.

You are in business to make money, so you need to charge right for your time, skill and effort you put in in crating that masterpiece of a cake.

If pricing is a struggle for you then register for my Pricing your cakes right to build a money making cake business Masterclass and all your pricing woes will be out to bed.

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  1. You don’t know how much money you make from my business.

If you don’t know how much money you are making then you also don’t know if, or when your business is making a profit or loss.

This is a clear sign your business is an expensive hobby.

The foundation of any business is in good record keeping and keeping track of your expenses. You need to have bookkeeping and accounting systems in place. This will help you monitor the finances of your business.

If you cannot tell how much you made and how much you spent in previous months, then it means you’re treating it like an expensive hobby.

So, if this is you then please, please watch my Training on Bookkeeping Systems you should have in your cake business here and here and put an end to it now with my simple actionable tactics.

  1. You know nothing about marketing

Customers do not fall from the sky. You have to go out there to get them and the only way you can get customers is by marketing. 

Marketing your business is a must. There are various marketing strategies you can employ such as social media marketing, having a blog, sending out email or sms newsletters. You need to be doing some sort of marketing on a consistent basis every day, if not; your business will find it hard to survive.

If you are unsure about marketing, then register for Pricing your cakes right to build a money making cake business Masterclass which has an  entire Module dedicated to Marketing.

Stop waiting for people to find you and go out and go get them

  1. You do not keep track of your time

Do you how long it takes you to bake and decorate a cake from start to finish? How long does it take for you to give a quote for a cake, answering emails, shopping for ingredients and so on? You need to keep track of your time. Because you need to be paid for your time. You need to earn a wage for the time you use for an order.

If you feel you are worth N500 an hour, then if you spend 5 hours shopping, baking and decorating a cake, that means you will have earned N2,500. So that amount should be added to the price of your cake.

If you don’t know where you are spending your time then you have no idea what you are actually getting paid.

 

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6.    Your family and friends don’t take your business seriously

The energy that we give off about something reflects on those around us. If you are finding that your friends treat your business like a hobby, then it’s likely you are also speaking about it in that way as well.

What kind of language do you use when you speak about your cake business? How do you stand and how do you feel? All of these signals are emitted and interpreted by those around us.
If you are upset by a friend or maybe even family members  not taking your business seriously or they keep asking you for a free or a cheap cake, then this is a sign that you probably aren’t taking your business seriously.

  1. You do not have a website because you are still deciding what logo to use

If the reason you have not launched your website is because you are still deciding on what colours, or logo or theme to use, then you really are missing the point of being in business.

Yes it’s good to get those things right, but don’t spend time and a lot of money deciding on such trivial matters. You mind should be on how to get your business out there so that people will know you and you can start making money, how to add value and how to be different from the other cake businesses out there.

So that’s it.

I have struggled with all of these in the past, and many home based cake business owners do to. And this is something that I help my clients to deal with all of the time through my coaching programs and courses.

So, if any of these are true for you don’t worry. You are not alone.

The most important step is to become aware of and identify the issue, and if you have done this by reading to the end of this article, that is a huge step, well done.

The next step is to come over and register for my Pricing your cake right to build a money making cake business masterclass and I will give you some really actionable strategies that you can implement straight away to build a more profitable and lucrative cake business.

 

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JOIN THE MASTERCLASS HERE


 

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About Me:

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.

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.

 

Bookkeeping Systems To Have For Your Cake Business

This week on Cake Business Owners Club I have been showing and revealing accounting and bookkeeping tips that you should incorporate in your cake business.

I also hosted a Webinar on Thursday where i spoke about:

  1. Things you should start doing so that you are on top of your finances;
  2. What books you need for your cake business;
  3. Software to make your bookkeeping much easier.

If you missed the live Webinar and replay, well I’m sorry, access to the Replay has expired.

So remember make sure you follow my blog and subscribe so that you will not miss awoof like this again.

This past week on both the Cake Business Owners Club Facebook Group and Fan Page, I revealed Bookkeeping Systems to have for your cake Business.

In case you missed these tips during the week, here is a recap for your information.

Thank me later. Enjoy!

As Bakers most times we do not have a head for figures. We prefer to spend our time looking at cake pictures and trying out different recipes. Rather than tracking your receipts, remembering the costs of things you bought, having to put your expenses in a book. However you need to realize that you need to establish a record keeping process if you want to succeed in your cake business.

 In this training I will reveal to you bookkeeping and accounting systems you should have in place to have a sustainable business.

Have a Separate Bank Account for your Business.

Do not mix your personal account with money earned from your business. It is vital to keep your personal finances and business finances separate. You can easily open a business account with any bank as long as you have a registered incorporated business. Most people will always prefer to pay money in a business account rather than a personal one. This will build trust and will make you appear more professional.

Have a Business Plan for your Cake Business

When you have a business plan, it is like a road map for your business. This will help as a guide in your decision making and track progresses in your business. You will also need to have a record of your income, cost of goods sold, projected sales. You should also set targets for start-up costs, on-going expenditures and planned growth.

Develop a Chart of Accounts for your Cake Business

There are generally 4 books you should have for your cake business

  1. General account book (a ledger)
  2. Cash flow account
  3. Profit and loss account
  4. Balance sheet

These books help you categorize all financial aspects of your business, including cash, income and expenditures. Also will help you identify types of expenses and sources of income.

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Keep all your Business Invoices and Receipts

Whenever you buy something for your business like ingredients and such, always keep your receipts. Make sure you always issues invoices to your customers and once it is paid, provide a receipt and keep a record. Keep separate files and folders for all these paperwork, that is, receipts, expenses and invoices.

Having all this information will help you to reconcile your bookkeeping and even for tax purposes.

Keep Records of all your Business Income and Expenses

If you haven’t been doing this before, start from now on you must keep every single receipt and invoice that relates to your cake business. When going out to shop for cake ingredients, don’t add your personal shopping too. Keep it separate. That is why you should have a business account so that all expenses for your business will be done from hat account. That will help you keep track of what you are spending ion your business.

Keep a Ledger or Account book of expenses and update the ledger regularly

As said yesterday, you should keep a separate file for receipts and invoices. Once a customer has made payment, make the entry in your accounting book in the income column, plus the final expenses in the expense column. And remember to update the ledger regularly

Having a ledger will allow you to keep track of expenses and your business growth.

Review your Business Bookkeeping Accounting Entries

Either weekly or monthly you should take a look at your bookkeeping entries to obtain a picture of your financial health and to correct any bookkeeping errors. This will help you access your financial position and see if your business goals have been met. It will also help you correct any errors that you come across.


 

If you have not yet registered for my Pricing Course. Better do so soon, before it closed. I will be launching my Pricing Course this month.   Here is the link to register .


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.