cake website

7 Tips For Starting Your Successful Cake Business

 

Here are some of the key Tips I would recommend:

 Tip 1: GET CAKE TRAINED

If you really want to build your cake business, then you need to take your cake business seriously so that it can be a major source of your income. You will need to educate yourself and get trained. I sometimes find that hobby cake makers may be very good at baking but their cake decorating may not be the best.  

I always recommend you take a course or attend a few trainings on cake decorating and sugarcraft. There are loads of cake training in Lagos, just do an internet search on them.

Getting a cake decoration certification can also boost your personal brand. You may think you are good and you may be right, but there is nothing wrong in adding to your cake skills. Once trained, Practice, Practice, Practice. Keep pushing yourself and continue learning new skills.

The best people to test your cakes on are family and friends who are also very good at spreading the word about your new cake business.

 

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 Tip 2: FIND AND DEVELOP A NICHE

Pick which cakes you want to focus on, whether it is cupcakes,children’s cake, wedding cakes, desserts or something else.

Having a niche can help you develop your cake company’s brand and even choose the right name to stand out from other cake businesses. Think about what makes you different from other cake businesses. Is there something that you can do that others do not?

Think about it.

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 Tip 3: PRICING

Pricing your cakes can be one of the hardest things when running a cake business. The most important things is to work out your pricing structure. It needs to be realistic and take into account your time. There are so many methods to pricing your products that you may get confused.

One quick and very simple way is to calculate the price for your cake is to add up the cost of ingredients then add about 30-50% to it, so this will cover your labour, indirect costs and some other things you forgot to include, or you could do some research and see what others are charging and then your price will be at the middle range.

Please please please, try and do not undercharge your cakes.

Also it is essential to research the industry and your market. This will help towards your pricing too.

I will be launching my pricing Course this October, so keep on reading my blog, so you don’t miss out on this Course.

 TIP 4: REGISTER YOUR CAKE BUSINESS

If you are serious to taking your cake business to the top. The next step is to make it legal and register your cake business name with the Corporate Affairs Commission. Just because you have been operating under a particular name for some time and people know you under a name which has not been registered, that does not confer legal ownership of such business name on you.

Once registered, it’s a good idea to have a corporate account for your cake business and also register your business with the tax authorities so you can get a tax identification number.

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TIP 5: BUILD A WEBSITE

Having a website is the key to marketing your business and it’s the simplest place for your potential customers to see pictures of your cakes.

If you’re not sure how to set one up, do an internet search on creating a website where you will find lots of easy templates.

If you need help setting up a website, here is a link on how to an create your own WordPress website.

 TIP 6: MARKETING

Once you’re up and running, marketing is one of the most important things to get your cake business out there. For example, Business cards, fliers, word of mouth, a portfolio of your work to show to prospective clients, and contacting local and national press are all low-cost ways of advertising about your brilliant cakes.

The use of social media is It’s a great way of spreading the word about your business. Twitter, Instagram. Pinterest  and Facebook are free and easy-to-use marketing tools.

If you need help on how to market your cakes, take a look at this Marketing Course.

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 TIP 7: KNOW WHAT CAKES AND FLAVOURS YOU WILL BE SELLING

So now you have done the above, start testing out some recipes and once you have picked the few you like, stick to it. One of the reason people buy your cakes is for the taste and you don’t want to be experiencing a different taste anytime they buy your cakes. So be consistent with the recipe you use.

And that is it. Did you find this article useful, Please leave a comment below (would love to hear from you) or if have any questions. I am here to help.

 

HOW LONG WOULD IT TAKE BEFORE I MAKE SERIOUS MONEY IN MY CAKE BUSINESS

We’ve all heard that 9 out of 10 businesses fail. So you may be thinking why should I even bother about starting or being in the cake business.

For the brave ones who still go into this business, you might be wondering when can you expect to finally be making some money out of it?

Before I answer that, let me point out that your first thing is to work out what “some money” actually means. Financially speaking we all have different goals – for some, enough money to pay for family extras like schools fees and holidays in Dubai.

For others, enough money to support an entire family. You’ve got to work out HOW MUCH money you need and want to earn as a first step.  If not, NO amount of money will ever be “enough” because there is no definition for what “enough” is.

So let me give you an idea of how a 5 year plan to money making looks like for a home based cake business:

  • Year One: 

You hardly will make any money in the first year as you will be plowing every Naira you make back into the business to grow it. This is the year you’ll invest in your business (such as websites, training, marketing etc) so the year is about putting in and not taking out. Your pricing is probably also not the best but it covers the cost of ingredients.

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  • Year Two: 

You will make some money, but you will still need to plow back very money you make back into the business to grow it. This is the year you start to get more serious about things. Your skill has improved, your pricing is more structured, which will probably cover your goods, overheads and your labour costs. 

 

  • Year Three: 

You may be getting frustrated at the point and may feel like quitting, because you feel you are not making enough money. You may be asking yourself, ‘Why am I working so hard for so little?”.

So you start to bring some strategy on how you do business. Your cake decorating skills have improved, you’ve learned to speed up you orders, and you’ve started to feel the pain of working for no money – so you start to take some money out of the business and pay yourself a salary. HOORAY!

By this time, you would have determined your niche (or are working on it) and you’re starting to feel like you control your business as opposed to the other way round and you’re  starting to think about scaling up or out.

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  • Year Four: 

You’ve been getting paid for a while, you’ve started investing a bit heavier into your business (business coach, business classes, , more heavy-duty equipment or maybe getting a small cake shop) and you’re starting to see how you can make this thing work.

You’ve started to build profit into your prices, you’ve got a niche (or several), you may have an employee or helpers of some kind who are also paid and profits are starting to appear in your balance sheets. 

 

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  • Year Five: 

This is when things start to feel like you can breathe a bit because you’re getting paid, your employees get paid, you’re seeing profit, this whole thing is starting to feel worthwhile. 

Those cycles of business might take you a shorter or a l longer to meet, it really depends on how much time and investment you put in but invariably those things will happen.

 Business is a process. How long it will take you to be successful depends entirely on your definition of success, how much time/effort/money/marketing you’ve got to invest, and your ability to keep on keeping on each time you feel you want to give up.

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 contact you when  the E-Course is launched)