I Started It, Let's Talk About It...

Business By NikiH Updated 7 Apr 2013 , 1:30am by AnnieCahill

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aswartzw Posted 9 Dec 2010 , 8:12pm
post #61 of 183
Quote:
Originally Posted by Annabakescakes

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Quote:

if i totaled up all of the money i would have charged these people when i was doing free cakes for "family and friends" for two years, i would have made $10,000+. that's ten grand i'm taking away from other bakeries in the area.



In the fun spirit of great debateicon_wink.gif

If they hadn't gotten a free cake from you, would they have gotten one from somewhere where they would have had to pay? If so, then it is still "taking from other bakeries in the area"

But that is also like saying that I do my laundry at home, so I am taking money from the laundry mat. But I take my comforters to Coin Laundry, up the road, so I am taking money from Laundry Queen. Or the time DH dropped the kids off at my mom's with dirty clothes for the next day.(I was having a baby 3 weeks early) She washed them! I guess she took the money from the laundry mat, or from walmart, because she used her own detergent from Big Lots, and if I had used my own from walmart, then I would have to buy more.




icon_eek.gif I can't believe you stole from your water company!!

icon_lol.gif

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Annabakescakes Posted 9 Dec 2010 , 8:15pm
post #62 of 183
Quote:
Originally Posted by Kitagrl

Most successful cake artists, especially those who started maybe 20-25 years ago, started at home, unlicensed. Period. I did...people in this thread did....and I know for a fact many successful and well known cake artists did as well. I'm still not running a full time business here....2-3 cakes a week, max. My first responsibility is to my kids...and that's how it will stay. I was glad to finally be able to save up enough cake money to buy my license and insurance 3 years ago.

I think its a personal choice (yes, its law...yes...its a choice.). And I also do not feel threatened by the tons of unlicensed bakers we have in our area. I need to concentrate on making MY licensed business the BEST and highest quality it can be. That takes enough effort, and will keep my customers ordering...if I'm the best, I don't have to worry about people "stealing" my orders. They say if you are running a race, you should not look back to see where the competitors are...because it will slow you down. Just a thought.

The only thing that totally annoys me about this discussion is that we have newer cakers that get on...ask a question about a cake they did for their neighbor, and suddenly all the CC police come and say "Ummmm! You aren't allowed to do that!!! UMMMM!!!!" Its so wearing. Just answer the cake question...ya know? There are plenty of "licensed" threads on this board without turning 50% of the threads into that debate.




Thank you! Awesome! BTW, if you aren't the best in your area, then NEVER point me in the direction of your competitor's website. I almost *swooned* when I saw that puppy cake you did with the 3D puppy on top with the drawings on the sides of the tiers. It was so sweet, I would have cried if i saw it in person! I showed it to my DH and kids! My daughter is 6 and she was stroking the computer monitor where his little head was.

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Annabakescakes Posted 9 Dec 2010 , 8:17pm
post #63 of 183
Quote:
Originally Posted by aswartzw

Quote:
Originally Posted by Annabakescakes

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Quote:

if i totaled up all of the money i would have charged these people when i was doing free cakes for "family and friends" for two years, i would have made $10,000+. that's ten grand i'm taking away from other bakeries in the area.



In the fun spirit of great debateicon_wink.gif

If they hadn't gotten a free cake from you, would they have gotten one from somewhere where they would have had to pay? If so, then it is still "taking from other bakeries in the area"

But that is also like saying that I do my laundry at home, so I am taking money from the laundry mat. But I take my comforters to Coin Laundry, up the road, so I am taking money from Laundry Queen. Or the time DH dropped the kids off at my mom's with dirty clothes for the next day.(I was having a baby 3 weeks early) She washed them! I guess she took the money from the laundry mat, or from walmart, because she used her own detergent from Big Lots, and if I had used my own from walmart, then I would have to buy more.



icon_eek.gif I can't believe you stole from your water company!!

icon_lol.gif




LOL!!! (for real!!)

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UpAt2am Posted 9 Dec 2010 , 8:19pm
post #64 of 183
Quote:
Originally Posted by Annabakescakes

Quote:
Quote:

if i totaled up all of the money i would have charged these people when i was doing free cakes for "family and friends" for two years, i would have made $10,000+. that's ten grand i'm taking away from other bakeries in the area.



In the fun spirit of great debateicon_wink.gif

If they hadn't gotten a free cake from you, would they have gotten one from somewhere where they would have had to pay? If so, then it is still "taking from other bakeries in the area"

But that is also like saying that I do my laundry at home, so I am taking money from the laundry mat. But I take my comforters to Coin Laundry, up the road, so I am taking money from Laundry Queen. Or the time DH dropped the kids off at my mom's with dirty clothes for the next day.(I was having a baby 3 weeks early) She washed them! I guess she took the money from the laundry mat, or from walmart, because she used her own detergent from Big Lots, and if I had used my own from walmart, then I would have to buy more.




you are funny, and i get what you're saying icon_biggrin.gif
my point was that IF i had charged for them, i would have been operating illegally, which is not fair to the legal ones out there. my point was that we should all compete against each other the right way. i gave them as gifts to those people...and they were grateful for them! and if i didn't make them the cake, they would have probably gone to walmart and gotten a sheet cake. or most likely (and knowing my family this is the truest of all), they would have gone and bought a mix and made it themselves, and wouldn't have even taken the time to flip it out of the pan before they iced it LOL and ya know what, we would have loved every bit still icon_smile.gif

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Kitagrl Posted 9 Dec 2010 , 8:19pm
post #65 of 183
Quote:
Originally Posted by Annabakescakes

Quote:
Originally Posted by Kitagrl

Most successful cake artists, especially those who started maybe 20-25 years ago, started at home, unlicensed. Period. I did...people in this thread did....and I know for a fact many successful and well known cake artists did as well. I'm still not running a full time business here....2-3 cakes a week, max. My first responsibility is to my kids...and that's how it will stay. I was glad to finally be able to save up enough cake money to buy my license and insurance 3 years ago.

I think its a personal choice (yes, its law...yes...its a choice.). And I also do not feel threatened by the tons of unlicensed bakers we have in our area. I need to concentrate on making MY licensed business the BEST and highest quality it can be. That takes enough effort, and will keep my customers ordering...if I'm the best, I don't have to worry about people "stealing" my orders. They say if you are running a race, you should not look back to see where the competitors are...because it will slow you down. Just a thought.

The only thing that totally annoys me about this discussion is that we have newer cakers that get on...ask a question about a cake they did for their neighbor, and suddenly all the CC police come and say "Ummmm! You aren't allowed to do that!!! UMMMM!!!!" Its so wearing. Just answer the cake question...ya know? There are plenty of "licensed" threads on this board without turning 50% of the threads into that debate.



Thank you! Awesome! BTW, if you aren't the best in your area, then NEVER point me in the direction of your competitor's website. I almost *swooned* when I saw that puppy cake you did with the 3D puppy on top with the drawings on the sides of the tiers. It was so sweet, I would have cried if i saw it in person! I showed it to my DH and kids! My daughter is 6 and she was stroking the computer monitor where his little head was.




Aww thanks!

Nope I'm not the best in my area! I've got a BIIIIIIIG area!!!! haha. But its okay...would like to keep my business simple for now!

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sadsmile Posted 9 Dec 2010 , 8:35pm
post #66 of 183

My my how nice it is for people to comfort each other for doing something illegal and say it's not nice to tell it like it is. icon_rolleyes.gif

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Mama_Mias_Cakes Posted 9 Dec 2010 , 8:52pm
post #67 of 183

If you are an illegal baker posting a question in the Cake Business forum about selling, pricing, etc., then you may get answers that you may not like to hear. Yes, it's illegal to sell baked goods from home except in a small handful of states. So when someone who has put a lot of time and money into becoming legal tells you that, it's not the "cake police", and that newbie should really see it as sound advice from someone with experience rather than a debate/argument.

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Kitagrl Posted 9 Dec 2010 , 9:20pm
post #68 of 183
Quote:
Originally Posted by sadsmile

My my how nice it is for people to comfort each other for doing something illegal and say it's not nice to tell it like it is. icon_rolleyes.gif




I didn't say it was right, or the best choice, I just basically said its none of my business what everyone else does. I'm not the cake police.

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Annabakescakes Posted 9 Dec 2010 , 9:51pm
post #69 of 183
Quote:
Originally Posted by Kitagrl

Quote:
Originally Posted by sadsmile

My my how nice it is for people to comfort each other for doing something illegal and say it's not nice to tell it like it is. icon_rolleyes.gif



I didn't say it was right, or the best choice, I just basically said its none of my business what everyone else does. I'm not the cake police.




Maybe cake police would be nice to have! But not to see if someone is legal or not, but when somebody makes a really hideous cake!

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sadsmile Posted 9 Dec 2010 , 10:40pm
post #70 of 183

My statement wasn't directed at anyone particular but rather the acceptance of doing it illegally. The blind eye and the we know it's not right but nobody is going to say anything... Society has that attitude about a lot of things and people suffer for it.
The "Lots of people did it or started out that way.", doesn't make it OK.

Lots of people doing it doesn't make it any less wrong or any more right. It is what it is. Though people who are selling illegally don't like to hear it or have someone tell them it is wrong, nothing can make it right but going about it through the proper legal channels businesses must go through. It's just an old annoying topic. Right is right and wrong is wrong.



Send those cake police my way- they won't find anything! icon_wink.gif

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Msjckson Posted 9 Dec 2010 , 10:51pm
post #71 of 183

@Kitagrl:

Awesome post! Thank you, Thank you, Thank you! Now I'll admit, I was one of those people that didn't know about that law and probably wouldn't have found out had it not been for this site. However, you are absolutely right.. its one thing to be informative and another to be a police throwing your badge in peoples face. Especially, since this should be a place for support. We all have to start someplace. It's not always what you say but how you say it.

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scp1127 Posted 9 Dec 2010 , 11:05pm
post #72 of 183

I am going to say something that will probably be unpopular, but this is the only industry I can think of that tolerates unlicensed vendors. Is it because we are mostly women... or more likely, bakers who go into business don't necessarily have to have tough business instinct to get started. Think of other similar industries, massage therapists, contractors(I am one), personal trainers, hairdressers, cosmetologists, just to name a few. If someone was taking money without a license in any of these occupations, they would get turned in by their peers. And why do we need a license? PUBLIC SAFETY!!! You can disagree with the law, just like disagreeing with taxes, but the outcome is the same, it's the law. And although we can debate it, the law does not change.

Do something that does not require a license to fund your savings for a cake business. I am sorry for those of you who lack funding, but we all make choices in our life that put us where we are now. If you want a cake business, save and sacrifice like the rest of us.

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costumeczar Posted 9 Dec 2010 , 11:06pm
post #73 of 183

This "debate" is ridiculous, because whenever people post about this they're just looking for the answer thay want to hear. If it's illegal in your area it's illegal, so that's it. Not everyone who starts a business sells illegally first, I didn't and I know that there are other people on here who didn't.

Personally, I want to set the right excample for my kids. Do things the right way, and if you don't like the way the laws are set up, work to get those laws changed. If I told my kids "well, everyone else does it" then I'm setting myself up for some nasty "do as I do and not as I say" scenarios when they're older.

I realize that people who are going to sell illegally are going to do it and rationalize it to themselves, but that doesn't mean that it's okay, so don't kid yourself. Also don't expect to come on a business forum and have people tell you to have fun selling your illegal cakes.

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-K8memphis Posted 9 Dec 2010 , 11:42pm
post #74 of 183

I started legal in an approved facility.

Later on when I learned that I could not have a legal place on my property in any way--I got a full time job in front of a computer. Hey it handily paid the bills and I can still do cakes.
When I'm not fully pissed off about the inconsistent unfairness of it.

edited to say--this all way before cake message boards

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playingwithsugar Posted 10 Dec 2010 , 12:03am
post #75 of 183
Quote:
Originally Posted by scp1127

I am going to say something that will probably be unpopular, but this is the only industry I can think of that tolerates unlicensed vendors.




I can think of a few others -

catering
hair styling
home health care

Theresa icon_smile.gif

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scp1127 Posted 10 Dec 2010 , 12:18am
post #76 of 183

I have mentioned this awhile back, but in my last business, the IRS seized my books (in a nice way) in a fraud case of another business. They looked at many businesses that he worked with. In their investigation of him, they found cash transactions with my business. The person being investigated had not recorded all of his cash transactions, but I had recorded every penny. People have always laughed at me for recording cash transactions, but that day, I was so relieved to know that I had followed the rules to the letter of the law. What are the odds of this happening? I would have said, "never". If the IRS finds any unreported or improperly (on purpose) reported income, they can go back to "the day you were born" (quote) to find more unreported income. So you can sit back and say, "I don't have to follow the law". And then one day your little cake business gets a knock on the door, and you will wish that you did the right thing. If you have unreported income, the lawyer alone will probably take more than you have ever made. I don't think the IRS will look for illegal cake businesses, but this business being investigated was much bigger than mine. My books (and others) were used to show he commited tax fraud. But I am not so sure that if I had unreported income I would have been at least audited and fined.

I do not choose to do business by looking over my shoulder.

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costumeczar Posted 10 Dec 2010 , 12:24am
post #77 of 183
Quote:
Originally Posted by scp1127

I have mentioned this awhile back, but in my last business, the IRS seized my books (in a nice way) in a fraud case of another business. They looked at many businesses that he worked with. In their investigation of him, they found cash transactions with my business. The person being investigated had not recorded all of his cash transactions, but I had recorded every penny. People have always laughed at me for recording cash transactions, but that day, I was so relieved to know that I had followed the rules to the letter of the law. What are the odds of this happening? I would have said, "never".

.




My husband is an auditor for a commercial finance company, and in the course of auditing companies' books he finds all kinds of stuff. That then leads to "bigger" things, shall we say. You never know what will lead to someone knocking on your door to get information.

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scp1127 Posted 10 Dec 2010 , 12:32am
post #78 of 183

Playingwithsugar, I couldn't think of any more at the time. I know hairdressers in my area turned in all of the improperly licensed cosmetologists when the nail craze started. And I have been in the construction industry for years. If a contractor finds out that an unlicensed person got a job that he bid on, that phone call is made right then. I think construction and baking are similar in that the general public assumes the person has proper licensing and insurance if they look like they have a business. How many people have asked to see bakers' licenses and insurance policies? Again, it comes back to public safety.

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Annabakescakes Posted 10 Dec 2010 , 12:43am
post #79 of 183
Quote:
Originally Posted by scp1127

I am going to say something that will probably be unpopular, but this is the only industry I can think of that tolerates unlicensed vendors. Is it because we are mostly women... or more likely, bakers who go into business don't necessarily have to have tough business instinct to get started. Think of other similar industries, massage therapists, contractors(I am one), personal trainers, , just to name a few. If someone was taking money without a license in any of these occupations, they would get turned in by their peers. And why do we need a license? PUBLIC SAFETY!!! You can disagree with the law, just like disagreeing with taxes, but the outcome is the same, it's the law. And although we can debate it, the law does not change.

Do something that does not require a license to fund your savings for a cake business. I am sorry for those of you who lack funding, but we all make choices in our life that put us where we are now. If you want a cake business, save and sacrifice like the rest of us.




Oh crap!!! You got me on that one too! I cut all my home boys and home girls hair! And I game my mom a make-over and took her picture to put it on a dating site once a few years ago. I guess that make me an illegal hairdresser, cosmetologist, photographer, and consultant. I also proof read her book (it was crap) I guess I am an illegal editor!! (The HORROR!) And DH massages the tension out of my shoulders and dug a french drain out around our pool, so he is an illegal massage therapist and landscaper. And when my Grandma ate too much on Thanksgiving I walked with her that evening, so I am also an illegal personal trainer.

And if we are going to go that far, it is illegal to practice being a Dr. without a license, even if it is free and you just give it away, same as legal council, so therefore it should also be illegal to practice cakes for free. Not even in your own home. After all, you would never take Timmy's tonsils out in your kitchen, so you shouldn't be able to bake him a cake either! And I guess I'm having take-out tonight, because I don't have my food service license.

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LoveMeSomeCake615 Posted 10 Dec 2010 , 12:52am
post #80 of 183
Quote:
Originally Posted by Annabakescakes

Quote:
Originally Posted by scp1127

I am going to say something that will probably be unpopular, but this is the only industry I can think of that tolerates unlicensed vendors. Is it because we are mostly women... or more likely, bakers who go into business don't necessarily have to have tough business instinct to get started. Think of other similar industries, massage therapists, contractors(I am one), personal trainers, , just to name a few. If someone was taking money without a license in any of these occupations, they would get turned in by their peers. And why do we need a license? PUBLIC SAFETY!!! You can disagree with the law, just like disagreeing with taxes, but the outcome is the same, it's the law. And although we can debate it, the law does not change.

Do something that does not require a license to fund your savings for a cake business. I am sorry for those of you who lack funding, but we all make choices in our life that put us where we are now. If you want a cake business, save and sacrifice like the rest of us.



Oh crap!!! You got me on that one too! I cut all my home boys and home girls hair! And I game my mom a make-over and took her picture to put it on a dating site once a few years ago. I guess that make me an illegal hairdresser, cosmetologist, photographer, and consultant. I also proof read her book (it was crap) I guess I am an illegal editor!! (The HORROR!) And DH massages the tension out of my shoulders and dug a french drain out around our pool, so he is an illegal massage therapist and landscaper. And when my Grandma ate too much on Thanksgiving I walked with her that evening, so I am also an illegal personal trainer.

And if we are going to go that far, it is illegal to practice being a Dr. without a license, even if it is free and you just give it away, same as legal council, so therefore it should also be illegal to practice cakes for free. Not even in your own home. After all, you would never take Timmy's tonsils out in your kitchen, so you shouldn't be able to bake him a cake either! And I guess I'm having take-out tonight, because I don't have my food service license.




Oh, so you charge your children to cut their hair? And your husband charges you for a massage? And you charged your grandmother to take a walk with her?

And practicing medicine or law for free would be a completely different scenario than giving away cakes for free. It's a simple matter of the law- you must have a license to practice medicine or law, regardless of whether you charge or not, but you are not required to have a license to give away cakes.

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-K8memphis Posted 10 Dec 2010 , 12:53am
post #81 of 183

Y'know when people pass me speeding,
I say, "Go 'head, hurry, go get your ticket."

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cheatize Posted 10 Dec 2010 , 6:00am
post #82 of 183

I read this far and just had to stop to reply.

Isn't running money from an illegal business through a legal business money laundering? Whooo-weeee, you are setting yourself up for a big heartache. You are risking everything to bake the occasional cake. I beg you to consider this: if you are caught running that money through there, will you think it was worth it to lose your accounting licensing?????

You'd have no cake biz and no bookeeping biz, either. If you think you can't afford to go legal now, what will you do for money when the bookeeping biz is gone?


Quote:
Originally Posted by scp1127

Why do you have to do illegal cakes to start a cake business? As it was stated before, do something else and save your money.... something that does not require a specialized license. Cakes are not the only way to make money. Clean houses, work a part time job, etc. If you are selling for ingredients, there is no savings for your dream business. At least a designated job would help save for that goal. If you have children, work out of a closed restaurant in the middle of the night.

And watch the advice for running your expenses for your illegal business through your legal business. If you get caught, that is IRS FRAUD. As times are tough, watch out for someone turning you in. All it takes is one person losing a sale to you and that person decides "that's enough".


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scp1127 Posted 10 Dec 2010 , 6:22am
post #83 of 183

Cheatize, I was going to mention that but this situation is running expenses, not cash, through a legal business. If it is not money laundering, I am sure they have a word for it.

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K1976 Posted 10 Dec 2010 , 7:01am
post #84 of 183

-K8memphis
Y'know when people pass me speeding,
I say, "Go 'head, hurry, go get your ticket"

'Nuff said!

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silverdragon997 Posted 10 Dec 2010 , 9:26am
post #85 of 183

I started off illegal, but I wasn't aware of it until I found this site. It just never even occurred to me to look into the legalities of it because I was only making cakes for friends and family. But now that I'm aware, I'm in the process of becoming legal, and will be completely legal by the new year. I WANT to advertise and get more business.

I really don't have a problem with people going the illegal route. Assuming they are aware of the laws, they made the choice and will have to live with any consequences that may come of it.

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BethLS Posted 10 Dec 2010 , 12:41pm
post #86 of 183

While I tend to agree with most of the comments made on this...what drives me crazy is that just because "you're baking illegally" automatically means that you're putting out an inferior product, that is "thisclose to making someone sick" Just because you're baking without insurance or license does not mean you don't care about your product, or its safety.

I was once an illegal baker, until June of this year when Michigan passed the Cottage food law. I was and IS darn careful on cake production. Clean as you go was and IS my motto. I am not sorry for doing cakes illegally. I would've never been able in a million years to do cakes NOW without doing it illegally first. Without HANDS ON training, (classes maybe, or perhaps working as a decorator prior to in a "real" bakery or heck, I dunno, doing it, gasp, illegally) the fact is most people can't. One poster here has a great signature line, something about, "dont judge a person without walking in their shoes"

I know here in Michigan, it is illegal to drive my car without wearing a seatbelt. Why? If I am hurting absolutely NO ONE with my choice, why should the government tell me I have to do it? To line their pockets even further when I get pulled over without my buckle on. (note, I DO wear my seatbelt, and never been pulled over for anything, but just trying to make a point). Sometimes laws are stupid...yes they're there, so you should try to do your best and abide by them. But you shouldn't, ever, as a human being try to degrade another. It is not the "nice" thing to do. Remembering my momma always told me, "Don't say something if you dont have anything nice to say". People in this world are totally forgetting the humane factor here. But my momma also taught me if someone throws the first punch, I have the right to swing back!

I wish people that commenting wouldn't get their nickers all in a bunch saying rude things. Facts is one thing, but there is no reason under God to be so cruel and heartless.

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scp1127 Posted 10 Dec 2010 , 12:48pm
post #87 of 183

Seatbelts enable you to maintain better control of the car in an accident or in a skid... in certain cases, helping to minimize damage and to avoid colliding with another vehicle or someone else's property. Again, public safety and that is why it is not your choice.

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-K8memphis Posted 10 Dec 2010 , 1:40pm
post #88 of 183

Hey SCP, I forgot to tell you that you get the prize for the heaviest requirments I've ever heard of in order to open your shop. OMG.
B.R.U.T.AL.

I mean in this case I could recommend my county as an easier alternative--I got my fire marshall to sign off on no fire suppression system. icon_biggrin.gif I have a Deluxe cake oven and I use induction burners &, microwave. But I gotta have the floor drain and the plumbing.

Wow you have gone the extra ten miles to get your place. Hats off.

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BethLS Posted 10 Dec 2010 , 2:20pm
post #89 of 183

Yep, sure.

Whatabout the people who die in cars because they cant get their seatbelts off?

(Sorry, daughter of a fireman here. You dont even want to know how many people have died in cars who would've been FINE if they werent wearing their seatbelts. Ever hear a man BEGGING you to get him out of the car screaming bloody murder and you can't do anything about it in time?)

Two sides to every. single. story.

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-K8memphis Posted 10 Dec 2010 , 2:27pm
post #90 of 183
Quote:
Originally Posted by BethLS

Yep, sure.

Whatabout the people who die in cars because they cant get their seatbelts off?

(Sorry, daughter of a fireman here. You dont even want to know how many people have died in cars who would've been FINE if they werent wearing their seatbelts. Ever hear a man BEGGING you to get him out of the car screaming bloody murder and you can't do anything about it in time?)

Two sides to every. single. story.




They are all called accidents--the ones where seatbelts help the ones when they don't help. Life is risk.

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