Start-Up Cost For New Cake Business

Business By LCBakinCAKE Updated 16 Aug 2011 , 6:43pm by LCBakinCAKE

LCBakinCAKE Posted 15 Aug 2011 , 5:17pm
post #1 of 12

I am planning on starting my own Cake business in about a year. I went to school for Pastry & Baking, and I currently work for a cake designer. I wanted to start the business plan ahead of time so I can be fully prepared once I go ahead with my plans. I predicted the start-up cost to be around 30,000 assuming that I will be renting and not buying. Does this sound about right?

http://cake-business.com/blog/2009/03/how-much-does-it-cost-to-start-a-cupcake-business/

I used this website as a guideline, but I changed some things such as construction because I have contacts for things like that. I also got rid of staffing because I want to start out working alone.

Does 30,000 sound about right to those who own their own business? Any suggestions would help! Thanks again!

11 replies
jason_kraft Posted 15 Aug 2011 , 5:29pm
post #2 of 12

The number will vary widely depending on the market in your area and what kind of cake business you want to open. In the San Jose, CA area a buildout for a retail shop can cost $50-100K or more, depending on how much infrastructure work is required.

On the other hand, we were able to open our business for less than $5000 in startup costs, since we rent an existing commercial kitchen instead of building our own.

Doing this without help will be a challenge, especially if you have a retail location with regular hours that must be staffed. I recommend recruiting at least one other person with business knowledge to free up your time to focus on products.

LCBakinCAKE Posted 15 Aug 2011 , 5:45pm
post #3 of 12

Thanks so much for your help! I will opening in central Alabama so I toyed with the idea of doing a home based bakery with a separate kitchen. I have to look more into the leal aspects of that though.
I might look into renting a commercial kitchen. $5000 would be so much better then $30,000

I want to focus mainly on wedding/groom's cakes, but I also will be doing birthday and celebration cakes as well. I was a bookkeeper/accountant when I graduated from college so I have some business experience, but I will look into have some other help if it seems too overwhelming.
Thanks again!

tracycakes Posted 15 Aug 2011 , 10:06pm
post #4 of 12

Well, it depends. We have an existing cake business but rent space in a catering business. We already have some equipment but need ovens, sink, refrigerators, etc. Since the space we are going to was previously a deli and already has a kitchen, so we are just moving the sink to a more desirable location and doing very little in the way of construction. We are just painting, fixing some floors, etc.. We will have a retail business in addition to our custom business now also. We are looking at $70,000 - $100,00 to get open.

The best thing to do is to locate your local small business association. They can provide great assistance in helping you determine what you need to do. Then start pricing equipment, looking at locations and above all, DO A BUSINESS PLAN! It is the only way you will really get a handle on what it will take to open in your area.

LCBakinCAKE Posted 16 Aug 2011 , 1:44pm
post #5 of 12

Thank you! I didnt even think about contacting them. I will do that soon. Appreciate the help!

LCBakinCAKE Posted 16 Aug 2011 , 1:45pm
post #6 of 12

Thank you! I didnt even think about contacting them. I will do that soon. Appreciate the help!

LCBakinCAKE Posted 16 Aug 2011 , 1:46pm
post #7 of 12

Thank you! I didnt even think about contacting them. I will do that soon. Appreciate the help!

dchockeyguy Posted 16 Aug 2011 , 2:30pm
post #8 of 12

Oddly enough, I didn't see any cost for a mixer in there. I guess they just used one from home? And that was an expensive, maybe big, oven for that price. At the ICES convention, I priced out some ovens from Deluxe, and they were like $4500 for an 4 pan oven. It's hot huge, I'll admit, but could be a good starting point to spend less and still be functional.

CWR41 Posted 16 Aug 2011 , 2:46pm
post #9 of 12

The link provided is for a cupcake only business... a cake business would have many more expenses.

It's great that you are preparing a business plan and getting it started a year in advance because it can take several months to a year to complete.

You might find this thread helpful:
Business Expenses--
http://cakecentral.com/cake-decorating-ftopict-707078-startup.html

LCBakinCAKE Posted 16 Aug 2011 , 3:27pm
post #10 of 12

Thanks for the replies. I think we use an oven that size where I work so I think being functional is best when starting out. Thanks for the suggestion. Illl look into that brand. I looked up some slightly used 60 qt mixers. Im not sure if this is a good route to go, but Ill see what I save vs spend by buying used.

I didnt realize the ICES convention has stuff useful towards businesses. I thought it mainly demos. I should look into attending the one next year.

That thread is very helpful. Thank you for the suggestion. I will read over it and take note.

southerncross Posted 16 Aug 2011 , 4:02pm
post #11 of 12

Lexicarlly, you should also consider used equipment to keep your startup costs down. A friend of mine opened a wee bakery in a small town and bought all of her equipment, eg. pans, mixer, racks, tables, etc for $500 from a retiring caterer. She got a commercial oven and vent from an auction of a restaurant that had closed and she got them for a fraction of the usual cost at a retail used equipment vendor.

LCBakinCAKE Posted 16 Aug 2011 , 6:43pm
post #12 of 12

That's a good idea. I didnt think of that either. I will look into used equipment as well.

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