Vent About Starting Business (A Little Lengthy)

Business By sweetrat Updated 13 Sep 2007 , 2:17am by sweetrat

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sweetrat Posted 12 Sep 2007 , 6:14pm
post #1 of 20

Please forgive me the posting space, but I just gotta talk to some people who can understand. I have been slowly building a client base for what I had hoped would become a buisness for me. In a complete lapse of intelligence, I am just now checking my state's requirements. I am so depressed. That completely shuts out any chance I had at doing what I love as a buisness. I am not making that much off my cakes (anywhere from $20-30) and the fact I have to build a completely commerical kitchen makes it financially impossible. I can't even begin to describe my heartbreak. If you look at my gallery, be nice, I am still learning. But, in my area, there aren't any places that do cakes like I am willing to try. One bakery doesn't touch fondant (profit just isn't there) and the other one charges no less than $100 and that gets you a very small, basic cake. ARGGHHH!!!!! And on top of it all, I now have to call all my orders and cancel them. I'm so scared now that I'll "get caught" or my insurance company will drop me.

I am curious, though. For anyone who has built a commerical kitchen at their home, approx what did it cost you? I realize build costs in every area is different, but I have no idea whether it would be $500 or $10,000. My husband and I are looking into renovation options that would provide the space I need. I just don't think I can really justify it now since I'm not making enough from it and I'm nervous about putting myself out there full time. All my life I've been creative and never found a medium I was good with. It's been incredibly frustrating. Now that I found something I really love and feel comfortable with, the law jerks it out from under me. Again, sorry for the length, I just gotta let some of this go! icon_cry.gificon_cry.gificon_cry.gif

19 replies
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authress Posted 12 Sep 2007 , 6:23pm
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I'm with ya all the way! (I actually just posted my own vent re. day job woes.) Save your money and practice practice! If you bake it, they will come. (And, with the health inspector's blessing, they'll pay, too!)

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keriskreations Posted 12 Sep 2007 , 6:24pm
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Sweet,

I'm so sorry! It is frustrating - I'm looking in to the same thing here, and like you, it's looking in to renovating, but unfortunately, we just don't have the space at our current house. It is my understanding that you are okay if you don't do any advertising, and people know that these cakes are coming from your home. That's what I do - my clients come from a friend of a friend, but everyone knows I'm making them in my home, and are fine with it. In order to become a full fledged business in my state, you need a commercial kitchen as well. Would you be able to look at renting space at a restaurant or somewhere in town? Maybe a church or something? I've been looking in to that - just trying to find the best fit for me. It has to be a kitchen that's licensed and gets regular checks from the state. It might be something to look at, so you don't have to give up what you love - that way you could do some advertising, and before you know it - you'll need a true space of your own!!! Hang in there!

Oh - ps.... looked at your cakes, and you are very talented, anyone would be lucky to have you as their cake maker!

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CarolAnn Posted 12 Sep 2007 , 6:24pm
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I'm sure sorry to hear that your dream may not be realized. It has to be a very big letdown, to say the least. I looked at your gallery and you do real nice cakes. You ought to go to your profile and enable comments so we can leave them on your cakes. Cheer up, maybe it'll work out for you yet.
Sincerely,
Carol

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ladij153 Posted 12 Sep 2007 , 6:25pm
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Have you tried finding a caterer or restaurant that has a licensed kitchen that will rent you some space? That might be an option for you so you can do your cakes as a business but not have to build an entire commercial kitchen right off the bat!

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OhMyGoodies Posted 12 Sep 2007 , 6:37pm
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I looked at your cakes, and I have to say you do great work! You have alot of potential! If you think you have a decent client base where you'll be having orders at least full time, meaning at the very least 4 cakes a month, every month... then I'd say go for it!

You can have someone do some of the work really cheap... my husband does side work for people and it varies what he does for them but you want to make sure it's all going to be up to code and pass inspection once completed... so don't go cheap unless you trust the person will do it right icon_wink.gif

I think the most expensive thing you're going to be looking at is the appliances, which you could probably get some of them alot cheaper at auctions or store close downs... check your area for recently closed businesses like resturants and stuff for the fridge, oven, and sinks. You also need to find out from your state what the regulations are and what exactly you need in your commercial kitchen... some states require 3 section sinks, some require 2, some require 2 seperate sinks, one being a 3 section and one being just a hand sink. Some require you to have a grease trap put in and some don't... so you need to call and get them to mail you the paper work on what exactly you need to build and have in the kitchen icon_smile.gif

Good luck! Also think about a small business loan... if you think your client base will grow and will make all this worth it... you don't want to get a loan to build a $10,000.~ - $20.000.~ kitchen and end up only doing 4 cakes a month...

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KoryAK Posted 12 Sep 2007 , 6:41pm
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You absolutely do NOT have to call all of your orders and cancel them. The only thing that has changed from yesterday to today is that you found out about the law, it was still there a month ago. If you don't feel comfortable, don't take on any new orders, but you will damage the reputation you re trying to build (as well as your pocketbook) by canceling current orders.

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sweetrat Posted 12 Sep 2007 , 6:43pm
post #8 of 20
Quote:
Quote:

You ought to go to your profile and enable comments so we can leave them on your cakes.




Carol - Didn't know I had to. Some of my early cakes have comments, then they just stopped. Looked in my profile but couldn't find where to change it. Thanks for letting me know it's just a glitch, I was beginning to feel unloved!

I'm trying to decide about asking to rent my church's kitchen. I don't know how that will go. Too, I have a 3 and 6 year old so I could only work on those days the youngest is in preschool (MWF). But, most of my baking falls on Thursday and Friday so maybe it will work out. You girls are great, just getting to talk to others about this helps. ouch.gif

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nautkl1 Posted 12 Sep 2007 , 6:58pm
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I'm in the process of converting our garage to a commercial kitchen. We are doing all the work ourselves and all of the money is coming out of my cake orders and my cake decorating instructor pay. I did get a 3 compartment sink off of ebay for only $200. 5 oak kitchen cabinets from a garage sale for $40 and some drywall and insulation has only cost $100. I live in a small town and the local lumber company that specializes in doors is having a "driveway" sale soon and hoping to find an exterior french patio doors to replace the current garage door. And lastly the permit was $50.00.

Keep looking in the newspaper for deals and DON'T cancel any of your orders! It is true, as long as you do not advertise you should be just fine. icon_smile.gif

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saleann Posted 12 Sep 2007 , 6:58pm
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I too am from AR and have just had my parade rained on! There is an article I believe I found here that had some loop holes in it! I'm thinking I'm going to talk to a senator or something and see if we can change this! I don't know what part of AR you're in but here in NE AR costs are pretty low for remodeling compared to other places but it's still money you have to come up with instead of being able to use what you have until your business out grows it. I'm sorry I'm not more help but I wanted to let you know others are addressing this same situation in AR! I do cakes for people if they bring me the ingredients and then if they feel like "tipping" I accept! Good luck!

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barbydoll8 Posted 12 Sep 2007 , 7:03pm
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Trying a commerical realtor. They would know of any current kitchens for sale or rent. They specialise in finding what you need to get started.

Even though your state may have regulations, I've been warned by my instructor who has a commercial bakery that you may still need to be licenced by the department of agriculture since there are fresh eggs involved. At least in FL, that's what it comes down to.

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sweetrat Posted 12 Sep 2007 , 7:04pm
post #12 of 20

Saleann, I'm in NEA too! If you will PM me who you are contacting in the state gov't, I'll pester them too. My worry is about the homeowner's insurance refusing coverage and my liability for lawsuits. I've only done one cake for someone I wasn't totally familiar with and I can make sure that doesn't happen again. I don't know. I'm going to inquire about my church, we have 2 commercial kitchens and I'm hoping I can rent one by the hour. Anyone ever rent a facility before? How much is fair if you don't store anything and are responsible for the cleanliness of the facility before and after you use it?

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saleann Posted 12 Sep 2007 , 9:11pm
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Well I dont know about the insurance part of this but I've always heard not to volunteer info to an insurance company and that it's easier to ask forgiveness than permission! My "customers (friends and family) know that i'm not licensed when they get a cake from me so I wouldn't think they'd sue me. Other states allow you to have your home kitchen inspected by the health dept and they license it..i guess AR is just weird!

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vrmcc1 Posted 12 Sep 2007 , 9:26pm
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I am so sorry to hear about your states regulations icon_cry.gificon_cry.gif If you do decide to start looking for commerical equipment check out http://www.auctionzip.com for a list of commerical auctions in your area. I have gotten some thing really cheap, and some things really, really, really cheap.

Val

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Nikki_B Posted 12 Sep 2007 , 10:22pm
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I'm very sorry to hear about your heartbreak-- as someone else suggested, renting a commercial and licensed kitchen is always good potential way to get a business off the ground.

My only other tips are to really cut back where you can in your other finances and tuck away that money.

And, always check out second-hand equipment.. one of my baking instructors at my culinary school ran an out-of-home business and she got a one of those huge 2000 dollar stand mixers for only 200 dollars and she STILL has it to this day!

Also, if you come up with a business plan and info. maybe you could take it to a bank and get a business loan? That's what I plan on doing when I get out of school.

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Monilynn Posted 12 Sep 2007 , 10:36pm
post #16 of 20

* hugs * I know this is frustrating and I too feel your frustration. I love your cakes and think you have great potential ! Keep your chin up !


Monica

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indydebi Posted 12 Sep 2007 , 10:44pm
post #17 of 20
Quote:
Originally Posted by barbydoll8

Trying a commerical realtor. They would know of any current kitchens for sale or rent. They specialise in finding what you need to get started.




Also talk to Sysco and GFS sales reps. Trust me, they are the FIRST ones who know which kitchens are closing down and/or may have surplus time to rent out!

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sweetrat Posted 13 Sep 2007 , 1:29am
post #18 of 20

Thanks, gals! Nothing like a group hug to make things seem less bleak! I will know Sunday afternoon if I will be allowed to rent my church's kitchen, then I'll have to make sure it's to speck and get my permits. So, I'll still have plenty of hoops to jump through. Thanks for the info about all the cheap commerical stuff! If I can get a temporary location and pick up some more business, I am totally gonna deck out my own space. BTW, this is the COOLEST site on the net! I love you guys! No, I'm not crying, I just have something in my eye! icon_redface.gificon_lol.gificon_redface.gificon_lol.gif

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JanetPlanet Posted 13 Sep 2007 , 2:01am
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There's a new idea going around some states where they are setting up commercial kitchen "business incubators" ~ especially in farm areas. It's to help home bakers and chefs (cakes, salsa, jerky etc) start their business. You can rent time (and storage/freezer space) using their equipment, plus volunteers are there to help you with your costs, bookkeeping, and business plan. We have two in Michigan now that are to be open 24/7, so you can keep the day job as long as you have to. I'm bummed cuz neither is near me icon_sad.gif

Maybe Arkansas is doing this too?

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sweetrat Posted 13 Sep 2007 , 2:17am
post #20 of 20

That's a great idea, I wish out state would do that! It's actually something I thought about too, leasing a space and then basically having a commerical kitchen for hire. It would help offset my cost of having a commerical kitchen and provide other home-based businesses a place to work.

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