Just tossing something out there...but do YOU personally know of anyone that is doing cakes from their home? Is there someone out there that may want to share in your dream? Just an idea but maybe you can partner up with someone that can bring in their clientele (it now makes them legal) and maybe help bring in business.

I'm not sure of your training or talents, but perhaps you can offer classes.

IDK...just thinking outloud. I wish you all the luck in the world.

Oh sweetie, if there are only 607 people in your town I can see why that would just add to the problem. It doesn't sound like there is a large enough population to support the business even if they did want to pay what the cakes are worth.

I don't have any other words of advice other than to see if there's anyway you can market to any larger towns nearby?

My children grew up from the age of 2 and 3 in my store...it was the best experience for them...they also brought in a lot of families, due to their school, church activities, etc. We lived in a really 'large' town of 5,000, so I do understand the mentality of small town 'family politics'.

By putting in $100,000 in your business and it has only been since February, you need to give it more than four months... you knew your limitations physically prior to opening...no matter where you make a cake, you still have to hunch over it and stand for long periods of time * I was not buying that excuse from you...it did not fly...that was just an excuse to make you feel better...I know, I broke my back and have it flare up when I have to be standing for more than a couple of hours...you sound depressed about the slow progression of your business, but I WOULD NOT GIVE UP!!!

Also, I would tell my daughter this is the way it is for the summer...I am still old fashioned enough to let your child adjust to her new surroundings...put a small TV in the shop for her to watch, a computer, and hire a local teen to come and take her out a few hours a day. Your family could take her one day a week and she could then only be there four days a week...your mom one week and your sister could do one day every couple of weeks...

Do not blame anyone for your business not being profitable (It takes five years or so to be profitable)...You need to know when to hold and when to fold...it is not time to fold...just change your business profile until you have your expenses met...then go back to what you are best at doing...sacrifice is what small businesses are based upon...it is the dream...do not make it your nightmare...look at it from another view...you will succeed if you are willing to get some good business advice from others.

I recently visited a cake shop but not for the cakes, I went for the supplies for cakes. This place had everything from styrofoam, cake boxes to all kinds of dusts and tools for gumpaste, everything a home baker or hobbyists would want. I wonder if you made some room in your store and carried this stuff those same home bakers might be visiting you for their supplies. At the same time take on line oders too. Good luck with everything.

I do get business, probably cause I under sell my cakes, I have to beat the home bakers prices. I have been doing 2 sculpted cakes a week. I alone cannot do anymore sculpted cakes per week. Most of my business comes from out of towners who have seen my brochures, cards and/or website. There's no market for "regular" cakes in my area because everyone tells me the "Walmart has them cheaper" story. I offer cupcakes, cookies, pound cakes, cakes... I guess I'm frustrated that I feel alone, besides husband, in my business venture. I can't understand why family wouldn't help me try to better myself. It could be profitable for them also if I make it and they helped. But really its no different than the rest of my life (yes, I'm bitter about that). Lutie, I didn't spend $100,000, thousands yes but not near $100,000. If I had spent that much I probably wouldnt need to quit cause with that money I would have hired help! And until anyone has been thrown threw the windshield of car and hit a pine tree you won't know my pain. I'm not making up excuses, yes I'm sad that it will be more profitable for me to close because the money I'm spending on shop can be spent at home but not depressed. Yes, I knew it would hurt my back to open business and stand up all day but I'm the type of person who will do anything to better herself and the lives of her family. Since my accident I have gone to college and graduated. This was to better our lives. A lot of good that did too. No daycare openings and again no family willing to help me out so that I could go to work. Because of my injuries I could sit back and draw disability but I'm not that type of person. I sound bitter probably because I am. If I don't get a head in life its not because I didn't try. I just think that everyone who is someone is there because someone at some point their life gave them a helping hand. Whether it was time, money, advice, a raise, a promotion, introduced to the right people, babysitting... Thanks for all the advice yall!

Have classes for kids, e.g. baking cupcakes, small fondant cake, gingerbread houses, holiday items, etc. Hold Girls nights out for ladies - BYOB wine and cupcake making classes for a bunch of friends on a Thursday night. Find local coffee shops, deli's, catering halls, restuarants you can supply desserts for on a weekly basis, offer wedding, party, shower cookie trays, favors. Invest in a great website if you do not have one already and tap the on line market - you can ship some baked goods and it's a great area to focus on during down time @ your shop - e.g. cake pop wedding favors, etc. Look into the possibility of renting out your kitchen to other bakers in the area. If you do not offer it already to your walk-in's, offer coffee, bottled water - great profit margin.
The first year of business is the hardest - as long as you aren't going into debt, I would try to stick it out for another 6 months and give it your all.
Good luck to you!

Just wanted to say a big thank you to all my fellow CC members for giving Kim some great advice & support!

Kim is my sister-in-law (my husband's big sis) and I know she has tried so very hard to make this shop work. I think her work is excellent and was hoping she would be successful with her shop. She has worked very hard; she is completely self-taught and she and her husband brought the shop up to code by themselves.
I hope she will reconsider and give it another try! I've told her she needs to raise her prices (the quality of her work and the time she puts into each cake demands it) and people will come!

I wish I could be there in person to help her, but her brother moved us halfway across the country!!

Good luck with what ever you decide!!

Please don't try to undercut the home bakers!!!

I was told this one time...."If you price yourself cheap, then that's what you will be viewed as....CHEAP. If you price yourself high-end (assuming your work is high end quality look and taste), then people will feel they are buying high-end."

I can see that South Carolina folks would not want to splurge on cake unless you can market to Greenville, Columbia, or some of the richer shore cities.... but you need to market an image that you ARE the source for high end, gourmet, awesome cakes you can't get anywhere else.

I think (and I'm still learning this) there has to be a certain assertiveness and confidence when it comes to having a business...you have to price yourself what you are worth and get out there and show people that you are worth what they are about to pay you.

Best of luck to you....

kim... do not give up! I know that I might not have a complete idea of your pain and the difficulties you are facing, but if you and your husband manage to open your shop you already did the more difficult part and the expensive part of it!! PLS re read every advice that has been giving to you...class decorating...selling supplies...renting kitchen space...selling to restaurants, selling different products.
You had a dream and you are half way there! You have to give more time to your business. A business is not profitable right away ,eventually, if your product and attitude merits it, it will. Go not dwell on the help you are not getting, no one owes you anything!!! Think of all the single mothers that went and accomplished what they set out to do!! You have your husband, you are not alone and he supports you and is more than willing to help and that is what matters, do not give up on his dream for you. ! I am sorry to say this, but it is what I think, I know you do not have to agree with me, I am not trying to run your life but in regards to your seven year old child, remember she is the child and you are the parent! You can re read what CC members have say... have her involve and what you are doing, talk to her, have her as your first student, give her something to help you with! Who knows she might get to be your greatest helper. But do not use her as an excuse to close! Abraham Lincoln, Winston Churchill, Henry Ford, Tomas Edison , they did not give up!!! I am not judging you!! GIVING UP IS NOT AN OPTION!!!
May God guide you and bless you!
CIAO

In business, sometimes giving up is a viable option -- it's important to look at business decisions analytically rather than emotionally, and if the numbers in the business plan don't work out, you either need to change something (your product line, your target market, etc.) or shut down the business. Ideally the business plan would be completed before too much was invested, and here the current competitive analysis and local demographics would have probably shown that a retail bakery like OP opened would not be profitable long term in her area.

If projections indicate that you will be profitable down the road that's one thing, but it doesn't make sense to keep throwing money at an unprofitable business venture unless things change drastically. In this case the most likely sources of change are the nature of your business (renting to others vs. making cakes) or the competitive landscape (illegal bakers being shut down en masse), unless you can find a way to market to more affluent areas or selling through the wholesale channel instead of retail.

BTW I hope you are carefully recording your expenses, since if you are running a loss with your business you should at least be able to reduce your income tax bill by offsetting income from other sources with the business loss.

Jason_Kraft said it all. In other words, if you fail to plan, you're planning to fail. In a town of 607, you had to plan very, very carefully. I'm sorry, I don't mean to be harsh on you, but all of this research should be done before you opened your store.
Best of luck with your decision.

I do admit I jumped into opening a shop to quickly. I was home baking and business was picking up. I didn't want to be an illegal home baker, I wanted to do it the right way. When a building became available in town I jumped on it. I would have preferred a building in the capital or its surrounding suburbs but I coudn't afford the rent those locations. I'm learning in life that doing things the "right" way doesn't always payoff. I just recalled something. A family member asked me if one of their friends could sell their homemade bread and muffins in my display case. I told the family member, "umm, no. I don't think the health dept would go for that". They wanted to know why. I explained that the reason I had to have this building, convert it, spend lots of money..., was because the health dept sets ups standards to protect the public. I have to bake goods in this kitchen. How could I sell something that was made in someone's home? Trying to offer my kitchen for rent would probably be useless in my area because everyone gets away with it. The health dept told me while they were inspecting my building that they are under staffed, only 2 inspectors. So no one will probably get caught around here... except me if I was home baking, lol.

I agree with Jason - setting aside emotion and attachment (and dreams) to deal with the reality of a business is necessary to make a wise decsion to go forward or not.

OP - it seems you've made up your mind and all of the reasons you give are good. Whether someone else would do what you are doing is irrelevant. I made a similar decision 1-1/2 years ago and with the sadness comes a relief when you know you've done what is best. Better days will come! Good luck with whatever you decide to do.

Sounds like you have already made up your mind to close, which is fine. Sometimes that is the best and/or only option.

Hopefully others here will be able to learn something from you sharing your experience.

Annabakescakes- do you have a separate kitchen in your home bakery? I live in Louisville and was just told by an inspector that I need a separate kitchen completely brought to code before I can legally bake out of my home and they need all the permits from plumbers and electricians. I'm getting ready to lease a church kitchen for $12.00 an hour, all the proceeds goes to their children's programs... Beats paying $10,000 or more on a separate kitchen.

I say you audition for next great cake boss, win and save your business!

I know, I know, if only it were that simple

One of my competitors has a really nice setup. She has a full bakery with wedding cakes, but she bakes bread also and has a great lunch crowd. It's upscale and people love it. You may not have the market for high end cakes in a small town, as Jason suggested. But if you diversified, you could save this.

I live in an area that can afford luxury cakes, but I am not going to sit around and wait for a wedding or big cake. I actually didn't want to do weddings, but it happened. My business is based around items that people can purchase often. Many CC members want to do the challenging cakes exclusively, but if your area can't support it or the competition is stiff, you must find the need and fill it.

If you advertise this business, you may be able to recoup your cash investment. There are many people who want to open a bakery, small restaurant, or catering business. Unfortunately for you, their best deal is to find an establishment that is closing. But I bet right now, that money back in the bank would feel good. And don't hire a realtor in a town that small. Word-of-mouth and a sign will spread the message.

Good luck to you and your family. I hope this works out for you.

have you thought about advertising with the local cable co?.....i checked here and it's surprisingly affordable...300 bucks to get started and lik 4 bucks a 15 second spot.

did you ever hear of hulu? watch anything you want online...that could keep you baby entertained for awhile..

for years sheet cakes were my bread and butter...they still are about 50% of my biz...those 25 and 50 buck cakes really can add up...esp after youy get them down to a science and can whip em out in 15 or 20 minutes.

i don't think the population has anything to do with it either...i have peeps coming as much as 50 miles