Cake Central › Cake Forums › Cake Talk › Cake Decorating Business › What does it REALLY involve? (long)
New Posts  All Forums:Forum Nav:

What does it REALLY involve? (long) - Page 4

post #46 of 135
Thread Starter 
K8 - PLEASE don't bash me over the head for this, but $5000/wk is good or bad? I assume it is bad? I am REALLY not trying to look like an idiot here, but I am sure I come off that way. Wouldn't part of putting together a biz plan include potential biz? Wouldn't that bring in more of a profit? Do you vote no because it is too much time, too much $ without enough return, or what? Again, please don't hit me for asking this.

She has readily admitted to me that she turns down business - there is a LOT of business that she doesn't do because she doesn't want to do this and doesn't want to deal with it. She had two assistants before, but let one go. I spoke to her husband and he made it clear to e that she wants out. No partnership. I might be able to work out something with her and have her teach the classes there, but no partnership.
post #47 of 135
My added advice would be to call your insurance company to see how much insurance will cost you to cover your business as well as car insurance (this usually triples when a car is being used for a business).

Everyone has given wonderful advice. The thing that concerns me most about your post is the hours you want to work. You need to add many more hours to that in order to run a business. (My DH who owns a computer business -no store front and does other businesses computers only- his average work week is 80+ hours. I know that it's not a bakery, but being an owner means working really long hours.) I'm sure your probably willing to do so though since it sound like it's your dream.

Another thing to think about is who will help you decorate if you get hurt or sick and can't fulfill orders?
What will be your backup plan if your DH and sister no longer want to help you down the road? If your sister decides she wants out and she has stake in the business what would the agreement be?

Did I read your post right about her making a $16,000 profit on the business? Is that $16,000 after all the expenses are paid and if so does that include her paycheck or not? That doesn't seem like much profit to me, but then again she's only been open for a few years and is probably just now seeing a profit.

Once again, this is not meant to discourage you, but these are things you need to figure out before hand.
Have you talked to anyone about financing yet or done a business plan?
Make sure to do that business plan first and have a lot of info. so that way you look well prepared to those you'll speak to about financing.
1, 2, 3, 4 UNITED STATES MARINE CORPS!
SEMPER FI!
Reply
1, 2, 3, 4 UNITED STATES MARINE CORPS!
SEMPER FI!
Reply
post #48 of 135
Saberger, did you look or read the link to the thread that K8memphis gave you?

If you haven't, you really should. The thread is about a gal opening a bakery and the work that was involved.
post #49 of 135
Thread Starter 
The net profit is $75K. And I did check the link. I had actually come across that awhile back. So, correct me if I am wrong but is the main concern about the amount of hours it will involve and if I am willing to do that? (not meant confrontational-just inquiring)
post #50 of 135
Thread Starter 
I actually joined SCORE last night in order to get help with creating a business plan. In the meantime I am writing down my goals and ideas and concerns.
post #51 of 135
Okay, so here are my thoughts.

1. My sis & BIL have their own equipment rental company - in the process of moving into a retail store. My BIL works ALL WEEKEND LONG! I now it's a different business, but he spends hours delivering the equipment/setting up and such. His bro and dad help and we chip in from time to time, but he is always working. In our case (bakery), yes there's the baking and decorating. Well, as someone mentioned theirs also the sales/marketing (creating flyers, building & maintaining a website, creating a business card, trade shows, etc.), customer appointments/tasting, ordering supplies, maintaining equipment, cleaning the kitchen/storefront/bathroom, hiring employees. No way are you gonna fit all of that into a 8-5 workday/week.

2. Marketing - I'm big on this b/c it's what I studied. You say SHE turns away business. Not to sounds cruel, but who says you will? People may not like your style of doing things or whatever. Plus are you gonna always want to work under her current business model? I would hope not. You have to stragetize on how to slowly phase her business model out and yours in w/o alienating customers and bringing in new ones.

3. It's been said on her over and over - with any business, you HAVE to have a business frame of mind first AND then the talent. All the talent in the world doesn't mean anything if you don't know how to administrate it.

Just some things to consider - for whatever it's worth.
Cake decorating ROCKS!!
Reply
Cake decorating ROCKS!!
Reply
post #52 of 135
Ok, $75,000 profit is a lot better than the $16,000 I thought it was. icon_redface.gif

Yes, my main concern would be the hours. A business is pretty much all the time even on the days closed you will be working, weekends---what are those, holidays--those are busy times too so be prepared to be working or dead tired on the day you have off.
You totally have the cake decorating talent. I'm not questioning that at all. If your willing to put in the hours your dream may be obtainable. There are a lot of variables when it comes to a business start digging and getting every little bit of info you can under the sun and go to a lawyer before you move on it.

I hope everything works out for you.
1, 2, 3, 4 UNITED STATES MARINE CORPS!
SEMPER FI!
Reply
1, 2, 3, 4 UNITED STATES MARINE CORPS!
SEMPER FI!
Reply
post #53 of 135
Thread Starter 
Thank you. I did talk to the people at OK Kosher Certification - REALLY helpful. You are right about having to be closed on Sat. if I want to make the bakery kosher. HOWEVER, there is a way that I CAN proceed with my Passover goods and sell them there without going kosher. So, all is NOT lost with that. I am actually going to proceed with THAT no matter what the outcome is with this bakery. YEAH

I will most definitely talk with a lawyer, esp. if I have several people going in on this for funding (not sure about that part yet). I KNOW there is nothing that I can assume will be or will happen or anything.....all MUST be legal and I need EVERY little thing considered.
post #54 of 135
have you ever thought of just starting from scratch yourself?

it might be cheaper...and maybe you could find a smaller place that would rent for less....i started my place from scratch in 02 for 28K.....you do not need that much room just to do cakes...k8 is dead on about everything she's said.

it is kinda fun starting from scratch....
post #55 of 135
i hate to ask...but did you ever mention what they were asking for it?...i guess i musta missed it...
post #56 of 135
Thread Starter 
I did find a place that was half the rent, but the oven didn't work, I would have to bring it up to code and I would have to start from scratch. Scratch is not a bad thing, but it IS a lot more work I think. If this doesn't work out, that is fine.....I will just wait until it is a better time and continue to build my name. It is just that I REALLY want/need to be legal by September.

The asking price is $125K.
post #57 of 135
Quote:
Originally Posted by saberger

K8 - PLEASE don't bash me over the head for this, but $5000/wk is good or bad? I assume it is bad? I am REALLY not trying to look like an idiot here, but I am sure I come off that way. Wouldn't part of putting together a biz plan include potential biz? Wouldn't that bring in more of a profit? Do you vote no because it is too much time, too much $ without enough return, or what? Again, please don't hit me for asking this.

She has readily admitted to me that she turns down business - there is a LOT of business that she doesn't do because she doesn't want to do this and doesn't want to deal with it. She had two assistants before, but let one go. I spoke to her husband and he made it clear to e that she wants out. No partnership. I might be able to work out something with her and have her teach the classes there, but no partnership.



Isn't $5000 a week a lot of money to you? And likely in January it will get quiet but not to worry too much because in December you were hauling it in to make up for it. You will need more than one other person to keep this off the ground

Say for example every cake you sell is an $800 cake. You have to sell 6.25 of those every week to make your $5000, if there's 4.3 business weeks in the month that means you have to deal with 26.875 brides every month, plus be setting up appointements and dealing with 26.875 brides for the next month. You've got 6.25 deliveries every Saturday

You have to order the ingredients and supplies from several different places, you have to run by several different stores sometimes--do you have kids? And Snarks, don't bite me I'm just saying kids need some of their Mother some of the time.

But unless you go big like Snarkette or cater like IndyIndy your overhead is going to eat your life up and will never be sated.

The owner is burnt out. Wonder why.

I vote no because this operation is too big for you right now--too much money--too many sq ft--and you're coming off as if you are allergic to working the hours you're gonna have to put in to make it work. You need to want to be a business woman to run that store which probably is why the owner wants to bale.

That's one of the biggest reasons I never jumped off the cake business cliff ('cause I can't do it from home) is because I don't wanna be a business woman I wanna be a cake artist. I don't think I could do both very well.

So I vote no because you're not ready, it's too big and it's too much money.

She cannot be a making $75K a year and gonna sell that for $125K something is all wrong isn't it Snarks and Indy???. She must owe big time on equipment huh?

You need to shadow owner chickie for a week--walk in her mocassins from the time she opens till the time she closes.
one baker's never ever do is the next baker's 'i swear by this'
 
Reply
one baker's never ever do is the next baker's 'i swear by this'
 
Reply
post #58 of 135
it's really not as bad as you'd think.

i think you could get A LOT more bang for your buck starting from scratch...

what is your vision for a place?....do you just want to do cakes?....or cookies and stuff for walk ins?

i only do orders...when i first opened i had cookies and dessert bars cupcakes and snacks for walk ins...but there was alot of waste at the end of the week.....and there is more of a profit margin with cakes.

i'm sorry if you already mentioned it...this has been the busiest week of the year so far with graduation and 4 weddings this week, i'm kinda fried.
post #59 of 135
Quote:
Originally Posted by littlecake

it's really not as bad as you'd think.

i think you could get A LOT more bang for your buck starting from scratch...




Me too.

Quote:
Originally Posted by littlecake



what is your vision for a place?....do you just want to do cakes?....or cookies and stuff for walk ins?



Quote:
Originally Posted by saberger

She basically does wedding cakes with some side pastries (which I would like to replace with cupcakes and decorated cookies). I know that I can decorate as well, if not better, PLUS there is room to hold classes (which is another thing that I want to offer along with parties).
one baker's never ever do is the next baker's 'i swear by this'
 
Reply
one baker's never ever do is the next baker's 'i swear by this'
 
Reply
post #60 of 135
since you are asking for opinions, i wouldn't rule out sheetcakes...i know peeps think they are not "artistically challenging"...but DUDE!...they are SO FAST, and the profit margin is really good with sheetcakes, since they ARE so fast....i do gobs of them,

you are really creative, you could really come up with some cool designs.....and truthfully, when you are trying to pay the bills....artistically challenging turns into nerve wracking pretty fast, esp. when you're tired from putting in so many hours.
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Cake Decorating Business
Cake Central › Cake Forums › Cake Talk › Cake Decorating Business › What does it REALLY involve? (long)