What's More Profitable, Own A Cakery Or Working For One
Decorating By Maria_Campos Updated 26 Jun 2008 , 2:20am by indydebi
I'm in the middle of registering my cake business, and I had a contractor come out to my house to make plans to build a separate kitchen on my property ( because I have indoor pets I can't bake in my kitchen). Right now I am renting kitchen space in a bakery, and I'm also looking at taking over the lease of a bakery near my home. All of this is going to cost $$$$. My clintele is growing, but I am also wondering if it would be better to work for a bakery.
I work full-time and make a decent salary, about $42 per yr, I would like to quit and do it full-time but not sure at this point what direction I should go, and still make enough to support my family and make a profit at the same time. What do you think?
Just using your salary, straight calculation, you would need to sell more than $3500.00 in cake to replace your salary, only, no taxes, insurance etc.
Owning a full bakery, there is also all the overhead involved to consider, rent utilities, insurance, wages, advertising.
That is a LOT of cake.
A formal business would be very useful in making your decision. My second kitchen cost me about $23,000 so paing that off didn't take long. It also allowed me to continue my regular job that pays too well to quit.
Just using your salary, straight calculation, you would need to sell more than $3500.00 in cake to replace your salary, only, no taxes, insurance etc.
Owning a full bakery, there is also all the overhead involved to consider, rent utilities, insurance, wages, advertising.
That is a LOT of cake.
A formal business would be very useful in making your decision. My second kitchen cost me about $23,000 so paing that off didn't take long. It also allowed me to continue my regular job that pays too well to quit.
Do you make a decent profit from your business? I was also thinking about opening a cake supply store also, because I figured I can't get wealthy of of just decorating cakes, I would have to find other sources of income like some of these other famous cake decorator do by writing a cake book, or teaching classes, selling or designing tool, DVD's tutorials etc...
That's a hard Q to answer. Is it possible, sure. Is it probable, more than likely not. Starting, owning, operating a business is more than just making profit. Given the lil info provided. I would say to make currently what you make now 10-15 years. That includes paying off the building. That's a lot of cake. I would make sure I have different product line to go with that. To produce those kinds of #'s you will also need help. Good help at that. For a lot of those years that good help will make more than you do.
Good Luck,
Mike
So Mike, you are saying it is better to work for someone rather than owning your own business?
So Mike, you are saying it is better to work for someone rather than owning your own business?
That's something only you can answer. I'm in the process of opening my own. I love the process of starting, creating, carving out your niche. I absolutely thrive on it. I can't answer if it's right for you, or not. This is also a big sacrifice for your family. Can they make the committment also? I don't know if you have kids, or not. They could become a obstacle, unless you have rope hehehehe.
I'm saying there are many things you have to look at before the choice is made.
Mike
So Mike, you are saying it is better to work for someone rather than owning your own business?
That's something only you can answer. I'm in the process of opening my own. I love the process of starting, creating, carving out your niche. I absolutely thrive on it.
Ironically, I was driving to my shop yesterday and thinking to myself (and no, I am not making this up ... I really DID have this conversation with myself), and I said, "Self ..... I may not be making a fortune yet, but I LOVE going to work everyday!" I'm with Mike .... I THRIVE on it!!!!
I believe the decision to own/run your own business starts with "do you have the entreprenuerial (sp?) gene?" If you just like to decorate cakes, then work in a bakery. Because on the list of things that HAVE to handled every day when you own the biz, decorating the cakes is NOT at the top of the list. You have to know how to be a salesman, a manager, an HR person, a purchasing person, a janitor, an accountant, and every other type of manager you see in a corporate office under one hat ... and you're wearing it. (and I seem to be wearing that janitor/cleaning crew hat a lot more than any of the others!!)
You have to LUV what you do. Not like it, not enjoy it, but you have to LIVE AND BREATHE IT!! You can't just be creative in a medium of icing, but you have to be creative in sales and marketing. You can't be a person who likes to lock herself away in a kitchen with her icing bag ... you have to LUV being around people .... you have to LUV being a salesman ... you have to LUV being in charge .... you have to LUV promoting yourself!
Ok.... can you tell that I just LUV what I do for a living??? I've never been so blessed in my entire 50 years of life!
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