Cake Studio Or Bakery Storefront

Business By ymmat77 Updated 7 Feb 2011 , 2:23pm by leily

ymmat77 Posted 6 Feb 2011 , 7:28pm
post #1 of 7

Hello to all the experts!!!

I am at a point in my biz that I either need to put a commercial kitchen in my home, "somewhere", rent a commercial space, or have a small bakery storefront the sells some retail pastries, coffee, etc, but also a specialty cake studio.

Does anyone have an opinion on which way to go???? My youngest is about to be in school and I don't really want to go back to teaching school (what I did before cake design). I can stay small with no overhead or branch out with overhead, but ability to grow. Right now I don't have enough oven and fridge space to take the bigger orders that keep coming my way......

6 replies
jason_kraft Posted 6 Feb 2011 , 8:25pm
post #2 of 7

If you can bake commercially from home I would definitely start there, Iowa has a cottage food law so you should contact your local dept of health (or whoever manages food safety) to get the details.

The next step would be to rent a commercial kitchen once you have a good amount of sales volume, startup costs for kitchen rentals are very low so you won't have as much sunk cost if it doesn't work out. Once you have enough sales to support the increased overhead of a retail bakery (and enough retained earnings in your business to pay the startup costs) you can start looking at opening a storefront.

All this should be detailed in your business plan, which is the first step before you start accepting customers. Just realize that it will probably be at least a few years before you can draw enough of a salary to compete with a teaching job.

ymmat77 Posted 6 Feb 2011 , 8:47pm
post #3 of 7

Thanks for the reply.
Yes Iowa's laws aren't super strict. I can bake cake and cookie items only, types that don't require total refrigeration from home if I sell less than $20,000. My biggest problem is finding the space and spending the money on renovating a portion of my house instead of just spending the money on a commercial kitchen. Of course now it's a question of rent!!!

Annabakescakes Posted 6 Feb 2011 , 11:36pm
post #4 of 7

What I plan on doing is starting in a commercial bakery in my garage. I have 4 kids, 3 of which I home school, the other is almost 2. I would love a little retail locstion and a couple employees, but I know there is no posssible way I would be able to maintain it right now. I figure that by starting small at home, I can have very little overhead and work on my terms while the kids are small. If I still want to have a retail location once they are older, then I can always gut my garage and move it all to a retail location. thumbs_up.gif

scp1127 Posted 7 Feb 2011 , 1:44am
post #5 of 7

I love my separate commercial kitchen. We have a large house and I took over the bottom level (above ground). The convenience is wonderful. We own a commercial building a mile from our house, but that would not have been as enjoyable. It was just as expensive to redo our home as the commercial building, so the decision was made to keep the convenience.

LindaF144a Posted 7 Feb 2011 , 1:02pm
post #6 of 7
Quote:
Originally Posted by ymmat77

Hello to all the experts!!!

I am at a point in my biz that I either need to put a commercial kitchen in my home, "somewhere", rent a commercial space, or have a small bakery storefront the sells some retail pastries, coffee, etc, but also a specialty cake studio.

Does anyone have an opinion on which way to go???? My youngest is about to be in school and I don't really want to go back to teaching school (what I did before cake design). I can stay small with no overhead or branch out with overhead, but ability to grow. Right now I don't have enough oven and fridge space to take the bigger orders that keep coming my way......




You have done a business plan, right?
I am in the same process and I am not doing a thing without it. It is a necessary process that keeps you honest and not all starry eyed. I highly recommend one.

leily Posted 7 Feb 2011 , 2:23pm
post #7 of 7
Quote:
Originally Posted by LindaF144a

Quote:
Originally Posted by ymmat77

Hello to all the experts!!!

I am at a point in my biz that I either need to put a commercial kitchen in my home, "somewhere", rent a commercial space, or have a small bakery storefront the sells some retail pastries, coffee, etc, but also a specialty cake studio.

Does anyone have an opinion on which way to go???? My youngest is about to be in school and I don't really want to go back to teaching school (what I did before cake design). I can stay small with no overhead or branch out with overhead, but ability to grow. Right now I don't have enough oven and fridge space to take the bigger orders that keep coming my way......



You have done a business plan, right?
I am in the same process and I am not doing a thing without it. It is a necessary process that keeps you honest and not all starry eyed. I highly recommend one.




I agree, a business plan will help you decide which way is best for you. Depending on which option you choose you'll have pros and cons (as someone else mentioned above, staying in their home was the convience they wanted)

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