I was told by the guy at my cake supply place that no matter what the economy does, there will always be birthdays and weddings and graduations and parties. And that there will always be cake.

I have noticed October is slowing down, I'm assuming once the election is over things will go back to status quo.

I really don't think the economy is "that bad" yet. People are still driving, still working, still buying, overall. We are used to a more luxurious lifestyle compared to the depression days, and may have to cut back, but we'll still probably always have it much better.

And its true, weddings will still happen...and they will still need those cakes! Good business for us to be in!

In uncertain times, people crave carbohydrates. They calm anxieties. Our walk in trade over the past week has been close to double that of September.

Go Figure.

I have been doing very well still (although brides are paying up later then they used to..and using more CCards) There has been a lot of bakeries in our area that sell speciality goods going out of business. The local cheesecake only place, the local cookie only place and even the local Doggie goodies place. and lots and lots and lots of these illegal suzie home maker trying to make extra money. (I don't feel competitive with them, but I do feel sorry for the people who are paying 2.75 a serving for a badly done Wilton Dora cake..they order it once and then come back to me) I am more nervous about how I am going to keep being able to afford gas and flour and sugar...there was one saturday when I was afraid I wouldn't be able to do deliveries because nobody had gas to sell!!

I agree, I wouldn't start a business now, because you cannot get a loan to save your life...but if you already have the money and can survive that first couple of years without any more money coming in, go for it!!
(remember, you don't make much of a profit the first couple of years..)

I agree with loriemoms....if you can start the business without a small business loan, than go for it. This is not the type of economy that supports taking on more debt. That's what got most of these people in hot water to begin with......they're weighed down with loans and credit cards. It's the age of "entitlement" nobody saves for anything anymore they just buy on credit, credit, credit!!!

Remember "lay away", I bet a lot of people don't know what it is. My parents would put our School clothes on lay away in July and if we were lucky they would have it paid off for the first day of school.
Can you believe they never had a major credit card? When they passed away, they didn't owe a penny to anyone, and their house was there's free and clear.......they raised 8 kids and my dad's highest yearly salary was $18,000. He just passed away in 2007 and my mom in 2000. I am in awe of what they accomplished on that salary and I thank them for raising me with the good sense to not get into credit card debt.

loriemoms.....is the gas situation any better in NC? My husband works for Bank of America and a lot of his colleagues are in the Raleigh area. They were working from home because they couldn't get gas for their cars.

Actually, my wedding business has increased 5 times much as last year! I've had weddings nearly every weekend through the summer and a few this fall. My bakery business has been good this fall, too. I think that people find comfort in sugar! My boss said to me before, "People may not be able to afford a new car, but they can still afford a donut." They seem to be able to afford cakes and cookies, too, because I had 7 1/2 hours of sleep total over last Thursday, Friday and Saturday because I was so busy!

The less you have, the less you have to take care of -- physically, financially, etc. etc.

Well, I don't have a cake business, but I saw the same news program that talked about people turning to comfort foods in time of stress. And I haven't noticed a decrease in the lengths of the waiting lines OUTSIDE the local resataurants. Yes, they are so long that they extend to the outdoors.

I work for a jewelry manufacturer and while the industry as a whole has slowed, we are chugging away because we are a just-in-time supplier, which means we ship overnight so that jewelers don't have stock deep inventories. Our founder and CEO says that as long as there is love, lust, and guilt, people will be buying jewelry.

Personally, DH and I broke free from credit cards several years ago when we decided that we wanted to buy a home and didn't want to bring the debt with us! We still have fuel cards, but we pay them off each month. We're lucky that we work about a mile from each other so we ride to work and back home together, which not only saves on gas but gives us quality time to decompress and have adult conversations away from the kids. Last year we sold his SUV and bought a more economical car.

We know that it's always possible for things to get worse so we try to spend wisely and put as much as possible in savings for that rainy day. We live WAY within our means because you never know what could happen - one of us could become ill or lose our job.

I really feel for everyone who is feeling the effects of the current economical situation and hope that all of you continue to prosper or at least continue to stay in the black!

Hang in there!

I too remember, layaways and black & white tv's. My parents were born in the depression era. My paternal grandmother owned a tortilla factory and sold only to stores and restaurants. She supported herself, her family and all the many families that were employed by her. Sadly to say, I never got a chance to meet her. I'm sure she could have given me some great advise on biz.

So in these days when we see our countries economy falling apart, I see people either coming to me for cakes, pastries and chocolates. I used to only sell 1/2 sheet cakes or larger, but that might change soon. My lollipops still get shipped globally, and I could add more classes because in hard times people go back to learning to advance their degrees or learn new skills.

loriemoms.
that was out of touch and rude.
Please describe this "Susie". Does she wear a flowered apron and have her hair in a bun? Is she a single mother who can't afford to have a shop of her own? How much are her college loans? How tight do you think her calendar is? Is she an artist who JUST found her talent? Maybe she falls asleep every night thinking of just the right design and technique for this bride, devoting all free thoughts to her art. Maybe she just throws a box mix in her Sunbeam mixer and doesn't give a sh*t..... On Wed., Do you think it says, "bake cakes for Saturday" on a big blank page, or that it is sandwiched between, "fold laundry, check leak in faucet, take little Susie (of course that's her name) to Dentist, make appt for oil change/brakes checked, meet with Johnny's Teacher, print coupons, go to grocery store, fold laundry, buy tickets for school play."
sorry, but I wonder what percentage of this board falls into this cookie cutter category you just invented, this category whose customers you just feel so sorry for.............


An aside, this economy is going to hit all, ALL of us. This illusion that this is some short term thing, that we are at the height of this, is going to leave many people very unprepared. Please prepare for this. Please put some money aside, becaus the chances this will hit you, all of you, are very high.

I agree that the Suzie Homebaker comment was harsh, however, I do think that there is a difference in expertise clients expect. It all depends on what the client wants. Some people would rather deal with a "Suzie Homebaker" than have to pay the prices (home bakers are generally cheaper (not Walmart cheap, but less expensive!), but not always) of a larger bakery or even deal with the staff. Most of my business comes from people from my kids' schools and such. I send them goodies for holidays, and they know the quality of my work.

As for my opinion about the economy, I think that I will be doing fine no matter the situation. My husband works out of the home, and we have four children. We have one credit card that we keep for emergencies, and pay it off every month. We have plenty of "things" (that is just what they are because they aren't important), but each has been saved for and then purchased. I watched my parents struggle with finances all of my life, and I decided very young that I didn't want to follow down that path. So, my family has not!

Again, I think that bakers will do okay in the next few years. No, we may not sell 5 teir, fondant covered cakes (you may still sell bunches - depending on the area), but you will probably still sell goodies. Those of us that offer candy, cookies and other tasty items might sell more. People will STILL buy things like that no matter what. It just seems to soothe the soul after a tough day. It has been proven more time than just the Depression (take a look around the world at economic hardships including currency collapses) chocolate and cookies were something people were always willing to buy or trade for (as well as milk and bread! )

As I said before, keep baking. No, I wouldn't open a new business right now, but those of us working, I think most will be fine.

You know, this IS the business section.

Those of us who have invested the time, energy, and lots (LOTS!) of money in our *businesses* know all about the Susie Homebaker.

I'm kind of offended that I can't come to the business section without someone getting uppity about coming to the defense of Susie Homebakers! It's a business section.

In BUSINESS, we

- Have overhead. Lots of it. susie Homebaker, who doesn't, can devalue the market price for cake, because she doesn't have that overhead.

- Have to deal with headaches like inspections, paperwork, etc.

- Can't even make Dora cakes! As BUSINESS people, we have laws to abide by. The same laws that should be applying to Susie Homebakers, but realistically..in the states where that's illegal anyway, why would they respect the copyright laws, but not the food laws?

Before you go an get offended by a phrase like "Illegal Susie Homebakers trying to make money".. remember what section you are in. Oh, and the "illegal" part of it, too.

Awww, c'mon folks, loriesmom didn't mean any direspect to the home bakers. As usual, some people wear their feelings on their sleeves and one little remark will turn this into a verbal brawl.

I, too, was a "Susie Homebaker" until I was forced to either quit or become legal by the health department. And it DOES take alot of money to become legal. And I'm just renting a kitchen, so I don't have all the overhead that she does.

Unless you have walked in loriesmom's shoes, let's not criticize her for HER opinion. Everybody can have one, but heaven forbid, if it doesn't agree with yours.

I am a legal at Home Baker, and I do have overhead. My electric bill has jumped from about $160.00 a month to almost $400.00 a month. I have spent $1000.00 on advertising, etc.....I would love to have a shop, but right now with the economy it is not feasible. My business has not slowed down, actually this last weekend I had 8 cakes to pump out. I work from home, but I think it is actually harder because there are more distractions (with kids) and the kitchen is always used. Thank goodness my house is paid for, I rarely use credit cards and I just bought a 2007 Van that I paid for. I think I am glad that I chose to do these things. Give Loriesmom a break, she has worked very long and hard for what she has created!

yes stefanie, you beat me to it. Lorriemoms deserves a break, her comment was taken out of context, she was referring to ILLEGAL home bakers. I also have a legal at home kitchen, although I am fortunate that when we built our home almost 5 yrs ago we added a 2nd kitchen in the basement, so I can close the door and be alone. Cakes are only my very part time job though because I own a Hair Salon and that is my main income.

In my area I definitely see a change in my cake orders, people are trying to save money. My salon is very busy though so that's good.

I'm licensed in RI for my salon by the Board of Health, and they haven't even had an inspector on the payroll for the past 3 yrs. It's rediculous, they take our money every year for license renewal though. This has resulted in TONS of Nail Salons popping up everywhere, and they just had a news report about how they are "unlicensed". So I have to deal with Illegal businesses in both of my fields, it stinks. We try to do everything to code and spend all kinds of money on insurance and licenses and these people come in and think they are above it all, they don't need to follow the rules. Than, they become offended when someone calls them on it ?

If you're a LEGAL "Suzie homebaker" than you shouldn't be OFFENDED by lorriemom's comment, you should be DEFENDING it. If you're ILLEGAL than you should keep your comments to yourself, you have no ground to stand on until you walk in our shoes, and until you pay to become LEGAL, until you share your profits with Uncle Sam.

lorriemoms, you're absolutely right

The original poster asked about the the practicality of starting a new business in this economy. I believe she was referring to a legal, licensed business. That takes a lot of money to start. Until you have a regular customer base, you will most likely lose money in the beginning. Then you have the overhead: Rent, Utilities, insurance, gas, loan payment, etc that are above and beyond that of a home-baker. I think that Loriemom's post was suggesting that when considering if opening a bakery now is a smart move you have to take into account not only that the economy is going from bad to worse, but you also have to compete with homebakers that can charge less and still make profit. If customers believe (even if it's not the same quality, they don't know that, YET) they can get the same cake for half the price then they are more likely to do so when they really have to watch their pennies. Therefore, it's a factor to consider when deciding to start a new business in this economy.

I'm licensed and legal, have overhead, pay taxes, etc. This doesn't make me better than "Susie Homebaker", it just keeps me out of legal trouble. I won't begrudge anyone else trying to support their family however they have to... If they know the risks involved and are willing to take them, that's their choice. Let's all keep in mind that Paula Deen started out illegally too.

Also, let's give people the benefit of the doubt. Yes, the "Susie Homebaker" comment could be taken as insulting especially since this board's members are mostly that. However, I don't believe she meant to insult anyone with her comment. People who are operating legally simply have a different mindset, and those skirting the laws might be understandably defensive.

We can all benefit and compliment each other... That is, if we aren't too busy trying to bring others down.

thank you guys SO much for the comments and for understanding what I was trying to say. I appreciate it more then you know!!

Have a happy day!

I have a legal home bakery....just started in fact in March. I work full time and do this on the side b/c it's my true passion. I've always wanted to own a bakery but was too scared to do it so I just went out on faith and started it out of my home.

Here's my question.....when is it a good idea to quit my job and do this full time?? This business is killing me. I really thought I would only have a cake here and there....oh no...I'm so busy and I don't advertise nor is my website up yet. I have at least 2 cakes a week that's b/c I'm turning people down b/c I can't do much more with my full time job too. I have 5 wedding cakes scheduled....that is crazy to me...I thought it would take a long time to build my business before I would have a wedding cake order.

I'm starting to really dislike my real job b/c I'd rather be baking cakes. How do you know when you are really doing well in this business and what is the money really like?

I got my head chewed off a few months ago on a similiar thread. Yes, the economy happens to be heading south, how far south is yet to be determined and I realize people didn't like my comment that the economy was cyclical, what goes up-most come down and sometimes we have economic downturns-some worse than others and when it's good, it's great (excuse the run-on sentence). Anyway, as others have stated, there are always people getting married, having babies and birthdays. My parents grew up during the great depression. My dad's uncle owned a candy store, he did very well during that time. My mom talked about getting a nickle once a month and going to the candy store, even though they were poor, her father was out of work and did handyman/odd jobs to get by.
Similiar in the vein of what Debi said, my girlfriend in IL works in a "high end" salon. They've tripled their "bridal packages" this year and are already booked through April for next year. She did say these are ladies who normally wouldn't go there but they're saving and putting away money for their big day and they want the works.
Spoonful, I have a friend also on the board who is in the same boat as you. She's contemplating the when does it make sense to quit option too as she's getting and doing a lot of orders. I am excited for you both that your business is doing so well.

this has been a very interesting thread to read. I have just had my 2 year anniversary of being in business (I have a store front) and as of the end of Sept. I have surpassed last years sales by over $15,000 and I am so excited with the holidays coming. I don't think that I could be happier at this time, I would have never guessed that I would have picked up this fast after opening. I basically planned on struggling for at least a few years. Now, with all that in mind - I am not a big financial person, I don't watch the news like I should or follow things like the market, but I do know that our economy is in trouble and even though my business has not felt any of this I am trying to make sure that I am prepared in case things get really bad. So I am putting business money into savings and trying to build an "emergency" fund just in case we do hit some hard times. None of us can say what is going to happen or if we will be affected but we can do our best to try and be prepared for anything. And if in the end things start getting better and we never have to dip into that emergency fund then maybe it can be used to expand - so WIN-WIN all around. What ever you do just gather all the info. that you can and be as smart about it as you can. Ask questions to whoever could possibility help you with any part of the business (money, accounts, baking, supplies, time, wages for employees, etc.) Good luck with everything. I too have been thinking about expanding - my lease is up next Sept. (will have been in business for 3 years) and I have thought about moving to another location that has much much more traffic. I would really like to build or buy but have been concerned with things the way they are whether or not I would be able to get any financing. Again, I am not real familiar with loan aspects of things as I started my store with my own money so I don't really even know where to start but hope that I don't just hit a brick wall because of the economy. Hmmm we'll see i guess

this economy sucks... the big one... i am in the process of trying to find a loophole in florida that will alow me to bake with out a store front or trying to find a storefront that is closing...

in the meantime i am a suzie... i dont take offense... becuase my clients all know what they are getting, and they are mostly friends and family, because i have had to turn people away...

my parents and i went into business together 6 years ago and opened a coin laundry... we had employees and everything was ok... then come february of this year our sales declined to a third of our monthly sales... we were putting 10k if not more a month just to stay afloat... our savings went to zero....

i was downsized becuase the plastic surgeon i worked for didnt have money to pay all of his employees... now... tell me... should i starve, or bake cakes... ?

oh yeah... i had to move back in with my parents, terminate my lease, and now my parents cant even afford to pay the mortgage on their house, which they mortgaged to pay the overhead of the business... and that they built with their own two hand from the time i was 6 months till i was three...

is it fair... no... and i am not asking anyone for pitty... but a girls gotta do what a girls gotta do...

please, lets get back to discussing the economy and our business!


I talked to a very famous and very expensive cake decorator in my area this weekend, and she said people seem to be ordering smaller cakes then sheet cakes because of the economy.
I also worry about next years orders.

although, my business has doubled this year....I think it is due to my new bakery...yeah! ( I used to have a LEGAL 2nd kitchen in my home that was a major pain, no where to meet with the brides)
I want to do even more next year.....so I can take home a profit

thanks for sharing everyone!

my business has increased so much it's scaring me....i think we just picked the right biz for the times....i was watching "the big idea" the other evening...everyone was calling in "boo hoo everything sucks"...and they were giving them advice...THEN... a bakery owner came on....her biz was going thru the roof....and she was opening another site....

during these times i think it's like taxcat said...people are looking for comfort....sometimes it comes from carbs.

i cut up my credit cards over a decade ago, and never looked back, if i can't afford it, i don't buy it, i pay cash for everything....but i own everything, no one can come and get it from me...my only bills are for utlities it's very freeing, i feel like i'd been let out of prison.

Whatever happened to supporting fellow bakers? This is sad! You CANNOT compare what's going on now to the Great Depression! It's not even close to the same thing. Do you know WHY candy companies did well then!? That's all people could afford!!! I know the education system down there sucks but come on! And yes I can criticize all I want because I am both American and Canadian! (and yes, I am voting).

GROW UP! You are Ladies not Children!