It really depends on whether or not your state allows home based baking. I would guess, most bakers start at home. And depending on the quality of your work, increase the business until you have to decide where your limits are.
One person, doing only cakes, normally cannot support a storefront. Special occasions cakes-birthday, showers etc-are not money makers, unless you can produce a large volume, or can charge a preimium price.
I built my commercial kitchen in my garage with a bank loan. Money well spent. Once the loan was paid off, there is very little overhead, and the freedom to work whenever I want.
JoAnnB, that is what I want to do . . . build a garage and put my kitchen in a third of it. Do you have any pictures? I have an idea in my head of how it should be set up, etc. Thanks for any help or ideas. What would you differently from how you have it set up now, or would you?
TIA
Leslie
Well, I have lots of practice to go before I think of opening my own business, but I talked to my husband and he said that since we are members of the NASE (self employeed association) that they help out a lot if you want to start your own business! thats cool! Im certainly going to look into that!
It really depends on whether or not your state allows home based baking. I would guess, most bakers start at home. And depending on the quality of your work, increase the business until you have to decide where your limits are.
One person, doing only cakes, normally cannot support a storefront. Special occasions cakes-birthday, showers etc-are not money makers, unless you can produce a large volume, or can charge a preimium price.
I built my commercial kitchen in my garage with a bank loan. Money well spent. Once the loan was paid off, there is very little overhead, and the freedom to work whenever I want.
JoAnnB, I have to disagree with your post. I know 3 cake shop owners in Houston who are supporting their storefronts making cakes....I am one of them. I also know of several businesses on CC that are making it just fine. I don't produce a large volume and I charge the price I would pay myself if I were buying a cake. It all depends if you have the right location and can run a business. The cake decorating is only a peice of the work. 
I have thought about this alot lately. Do I convert a home space or have a store front. There are pluses in both ways. I could really save alot of money if I did it out of the house. If I had a store front I could potentially make more money and get more exposure or go bust.
For me i'm going for the store front. I want to do things like have a annual gingerbread competions, cake decorating lessons for each season and things such as that. I could'nt do that from home. Right now I rent space from a local bakery and I can just see the potential of what I can make of it. It really depends on you and what you want to do with you business.
Next month I start applying for business grants and start making a business plan of my own. I'm pretty scared to borrow money but it's what I have to do to make my dream come true.
On another note, a very wise baker told me to find a business partner to split the rent and cross promote each other. I did what she suggested and now we are going to have a bakery and tea room. With her just there as mental support and finacially helping make the rent I could'nt be happier with the decision. I don't know if anyone has ever thought about this but with the right partner you could ease the burdens of doing it on your own.
Andrea
Do you guys believe that the same motto for most other businesses applies to the cake business? (i.e. "location, location, location!") Or, is it more of a word of mouth and publicity type business where location really is not essential? Thanks!
I didn't want to type it again or simply write "bump". 
I am still trying to get all my ducks in a row. To me having just a comemercial home based kitchen is ideal. I would pay down for a space that I can keep rather than lease.
I am sorta a control freak and have to have my own space. As JoAnn B said you have freedom. I look at it this way I can go work on a cake and not have to drive anywehere. My daughter can play outside and I can keep an eye her.
It is different for everyone.
Do you guys believe that the same motto for most other businesses applies to the cake business? (i.e. "location, location, location!") Or, is it more of a word of mouth and publicity type business where location really is not essential? Thanks!
I didn't want to type it again or simply write "bump".
If you want a full line bakery and sales all day long...location, location...
If you want a cake shop/special order only business...location is not so important. There are many sahb to prove you don't need a storefront to get orders.
mpc
Do you guys believe that the same motto for most other businesses applies to the cake business? (i.e. "location, location, location!") Or, is it more of a word of mouth and publicity type business where location really is not essential? Thanks!
I didn't want to type it again or simply write "bump".
If you want a full line bakery and sales all day long...location, location...
If you want a cake shop/special order only business...location is not so important. There are many sahb to prove you don't need a storefront to get orders.
mpc
When you say "sales all day long", do you mean in the actual cakes or other pastries?
I think she means sales "all day long" as in people coming in the store to buy - whether it be cakes, pastries, cookies etc.
For a specail order business....(like Charm City Cakes) - it is by appointment only, you don't have to depend on people coming IN to purchase, you rely on the cakes special ordered.
mpc
When you say "sales all day long", do you mean in the actual cakes or other pastries?[/quote]
Full line bakery means you sell a little bit of everything and if that is what you do you really need people coming in all day long to generate enough sales.
mpc
Does anyone have background knowledge in the business aspect of it all?
My 2 degrees are completely unrelated, so I assumed that I would need to take some classes on the business/accounting part.
I've thought about starting a bakery someday. I truly enjoy working with infants/toddlers now, so I see a bakery quite a ways down the road. But I would love to have ideas and plans in place when the time comes.
Thanks,
Bethany
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