cake business start-up

Planning Your Home Based Cake Business

 

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!

  

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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.

 

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  • 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!

 

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  • 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.

 

How To Make Money- Calling All Home Bakers: How to Earn Money Selling Your Cakes over the Xmas Holidays

 

 

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Do people love your cakes and cupcakes? Do you hear comments that your cakes are awesome and that you should go into business?

If so, it might be time to start a home baking business on the side. In today’s day and age, most people would rather order their cake from a cake shop than from a supermarket and no one has time to make a cake either.

For home bakers, this is a golden opportunity to earn some extra cash.

 How to Get Started Selling Home-Baked Goods

There’s one thing home bakers should keep in mind that cannot be emphasized: the power of word-of-mouth.

Be sure to bake delicious products, give excellent customer service and tell everyone you know that you’re now selling cakes.

To help you get started with this side hustle, here are 5 tips for getting your new side hustle off the ground:

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  1. Share Photos on Facebook

Most Cakers say that when they started posting their cakes on Facebook their business “really started taking off.”

There are a lot of home based cake businesses who had thriving side businesses because of this so that they can run a business and still be able to be at home to raise their children.

  1. Create a Signature Item

A signature item (especially if it’s holiday-themed) will establish you in the minds of your customers so they know in advance who to contact when they want that special something.”

  1. Hand Out Business Cards

Even if your doors aren’t officially open yet, get some business cards printed up.

They are the best way to get your name out there. So no matter where you are, market yourself. Hand out your cards to everybody  at the supermarket, your kids schools, at the mall — to anybody that will listen.

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  1. Network With Other Bakers

Know of any other home bakers in your area? Look at them as friends, not competitors. You can meet other bakers through Facebook and other networking events. If you are friends and one of them is too busy to take an order, you may get a referral from them.

  1. Pass Out Samples of your cakes

One thing is clear: Everyone loves free cake. So why not show off your baking skills by sharing free samples with potential customers?

You can drop off samples at places you have contacts, such as your, school, book club, church group, your friend’s offices, etc. (And don’t forget to leave a card!).

Just be sure to only visit places where you have a connection, as Short warned that dropping off samples at random offices almost never results in orders.

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How Much to Charge for Home-Baked Goods

When you start selling baked goods, figuring out how much to charge is going to be one of your biggest hurdles.

The first step is to assess your target market. How much are other bakers charging? And for what types of products? Next, look at your own skill set. How much experience do you have? How quickly will you be able to complete the work?

One way to determine prices is by adding all of your expenses (including packaging), then multiplying that number by three: 1/3 covers ingredients, one-third covers water and electricity and 1/3 is your profit.

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Most importantly, don’t get discouraged if people hesitate at your prices. You have to “remind your customers it’s a custom item, so it’s going to have a custom price. Do not sell your art cheaply.

If you continue to discount your price to get more orders, you will find out that you will just work yourself to exhaustion and have less to show for it at the end.

As for how much you can earn, it depends on how much work you put into both the baking and the marketing. If you’re just taking special orders, the bakers estimated you can earn between N200,000 and N400,000 per month; if you’re working 20 hours per week, N80,000 to N100,000; and if you start baking lots of wedding cake, you will earn a whole lot more.

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Should You Start Selling Your Home-Baked Goods?

Does earning money selling your home baked goods sound like a sweet deal? It can be, and you may find that your business lasts well during and beyond the holiday season — especially if you follow these 3 pieces of essential advice from our Cakepreneurs:

  • Keep Advancing

Be confident and bake and do the best you can do — and keep excelling. Baking is constantly changing, and skills are constantly changing. Keep advancing, because each and every day, something new comes up. Keep trying to find that wow factor.

  • Get In the Right Mindset

Be patient and learn the science behind your baking. Also remember that everything is fixable. Working from that mindset is going to save you a lot of stress.

  • Don’t Lose Sight of What’s Important

The major reason most cakepreneurs enter the home based cake business world is that they want to have a successful and profitable business doing something they love so that they can become financially independent and be at home with the kids.

You’ll regret the baking if you neglect the ones you’re doing it all for. Remember you can create the life you have always dreamed of.

Found this article useful? Please leave a comment below or contact me if you have any questions.

Don’t forget to subscribe to our newsletter here for more cake business tips or read our previous blogposts.

It’s time to live your cake business dream

Till next week.

Happy Caking!
RotimiCakeLady

P.S. I am also happy to tell you that we now have a Facebook Group Page. This is where all Cakers can come together to share ideas and tips, plus I will be sharing useful business tips ready at your fingertips. Join here for the Baking Business School community.

How Many Days Before a Cake Order Can I Start Baking

Time Management is very important for your cake business.  Having your own business does not mean you should work for 24 hours straight, having sleepless nights or try and manage a cake disaster.

 So the secret to dealing with all this is the No.1 secret for all cake decorators and it is so simple. This is known as the  4 Day Cake Rule

 What is the 4 Day Cake Rule?

 When you have a large cake order such as, tiered cakes, wedding cakes or a big birthday or novelty cake or fondant decorated cakes, then the 4 Day Cake Rule Applies. 

 You should try not to bake big cake order the day before. Infact it is a recipe for disaster. First you will have to measure the ingredients, make the mixture, bake in the oven, leave to cook, make the buttercream, crumb coat, cook off in the fridge, cover with fondant, make decorations and then decorate the cake. I will like to see you try all this in just 24 hours.

 It’s not possible, plus you need time to fix any errors that may come about.

Some may say that the cake will not be fresh, but most cakes are still fresh and taste more amazing 3-5 days after baking. A good chocolate cake recipe can last up to 10 days and will still taste scrumptious. 

 

The main reason for 4 Day Cake rule, is that you are not doing any decorating on the delivery day and you are able to fix any cake decorating disasters that may crop up. This will enable you to take care of the ‘what if’s’ or ‘just in case’ like for example if the cake burns you can do it again.

 By breaking all the steps down in the 4 days, you wont feel all flustered about all the cake orders you will be getting.

 So here is a timetable to follow where you have a big cake order 

                   The 4 Day Cake Rule

Day 1                                                                            

  • Bake Cakes

  • Cover cake board in fondant

  • Moisten the cakes with sugar syrup

  • Start on your fondant decorations such as flowers or figurines, etc

Day 2  

  • Start to layer the cakes

  • Cover each cake in fondant and  leave to ‘set’ overnight.

  • Finish up fondant decorations

Day 3

  • Stack the cakes.

  • Decorate the cakes

  • Take Photos

Day 4

  • Cake is ready for pickup or delivery.

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 Cake Regards,