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 7

post #91 of 135
Thread Starter 
Actually....I was just about to update ya'll.

So.....wow...busy weekend....in my mind. It is SO hard to figure this out. We got copy of lease and last year taxes - according to that, they are just breaking even. All equipment is free and clear. Had some questions about cash business, so I met with him today.

On average they bring in $4500/week. Around xmas (and working like a dog) they bring in @ $12K/wk. So, she clears 64K/year.

30 day training period; non compete clause; all inspections passed and will be done prior to closing; all info on appliances; 800 email mailing list; all info in running business (ie suppliers, etc).

Owner is there from @ 8 till @6. Depending on the season of course.

Thoughts?

In regards to bringing in chairs and tables - could probably be done under grandfather clause.
post #92 of 135
I just don't see how two people are able to do all the work to bring in $4500/week.
It's Cake-tastic!
Reply
It's Cake-tastic!
Reply
post #93 of 135
Quote:
Originally Posted by saberger

Actually....I was just about to update ya'll.

So.....wow...busy weekend....in my mind. It is SO hard to figure this out. We got copy of lease and last year taxes - according to that, they are just breaking even. All equipment is free and clear. Had some questions about cash business, so I met with him today.

On average they bring in $4500/week. Around xmas (and working like a dog) they bring in @ $12K/wk. So, she clears 64K/year.

30 day training period; non compete clause; all inspections passed and will be done prior to closing; all info on appliances; 800 email mailing list; all info in running business (ie suppliers, etc).

Owner is there from @ 8 till @6. Depending on the season of course.

Thoughts?

In regards to bringing in chairs and tables - could probably be done under grandfather clause.



Your numbers wont be the same as yours. You will have all the same expenses as her and the payment for whatever you pay them for the business.
$4500 a week is pretty light for an established business. That is what we make on a decent wedding Saturday, and New jersey is mucho more expensive than North Carolina.
If you change the product mix, your revenue will go down early on, because you will lose the people who came in for pies, and won't have picked up your own new clientele yet.

The space is very nice, but don't get starry-eyed and do something that is financially imprudent.
Scratch bakers of the world UNITE !!
Inrideo ergo sum ~ I snark therefore I am.
Cake or Death?......Cake Please!
Reply
Scratch bakers of the world UNITE !!
Inrideo ergo sum ~ I snark therefore I am.
Cake or Death?......Cake Please!
Reply
post #94 of 135
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

This is the lady that you should be listening to icon_biggrin.gif (snarkybaker)
post #95 of 135
Quote:
Originally Posted by saberger


In regards to bringing in chairs and tables - could probably be done under grandfather clause.



(This sounds really bad---)

Grandfather's die when the business is sold. (agh!!!)

Maybe I should say new grandfathers are born.

No grandfathers for you.

Only the current business owner gets grandfathered for whatever new codes come up. If she sidestepped something building up whether she knew it or not she's gotta comply.

You on the other hand will have to comply with anything that had been grandfathered for her. That's how it is in 10C.

I still can't get over the difference in plumbing!
anytime you judge somebody and
you judge something that makes them happy 
that's your weakness speaking ~~ hilaria baldwin
Reply
anytime you judge somebody and
you judge something that makes them happy 
that's your weakness speaking ~~ hilaria baldwin
Reply
post #96 of 135
I wonder if you would get grandfathered if you were related... like your grandfather was her grandfather... icon_smile.gif Then...I bet you could get grandfathered...icon_smile.gif
A merry heart doeth good like a medicine: but a broken spirit drieth the bones. Proverbs 17:22
Reply
A merry heart doeth good like a medicine: but a broken spirit drieth the bones. Proverbs 17:22
Reply
post #97 of 135
Thread Starter 
Have a really stupid question. In looking over the inventory list, it mentions a Cleveland Electric Steam kettle. What is that used for? Anybody know?

ha, ha - grandfather clause.....you guys are funny!! icon_smile.gif

Sorry I typed the wrong numbers: The $4500/week is what she brings in during the slow season. Busy season is @ 18K/week. That doesn't include classes.

She has a regular girl and brings in a 3rd one on the weekends.

Spoke with my sister yesterday.....*sigh* I made it perfectly clear to her that IF she were to invest then things would be done with a lawyer. NOTHING would be assumed in any regards and that she needs to decide if she would want to invest $ or $ and working there. As well, she would need to decide what exactly she wanted out of it and that would be done legally. Of course, her concern is my hours and whether I would follow through. I got a bit pissed. I am not a 5 yr old. I laid into her for treating me that way and not assuming that I would do the necessary research and considerations. I guess that is a cross I must bear (told you I didn't like finances!). But I think she understands that I am not the same person and have no intention of being thought of that way.

Ya'll have given me the strength (and the kick in the arse) to look at and deal with the biz end of all of this. You should see the BP and graph I have put together! You would be SOOOO proud of me. I would also like to let you know that I am looking into the option of starting from scratch as well, just to compare.
post #98 of 135
Maybe I missed it, but my biggest concern for you still is production. You have to actually be able to turn out the volume. Beyond the $$s, have you looked at exactly what she was making to do that volume? Have you compared that with what you can turn out in that amount of time?
"To laugh often and to love much..., to appreciate beauty, to find the best in others, to give one's self..., this is to have succeeded."
Ralph Waldo Emerson
Reply
"To laugh often and to love much..., to appreciate beauty, to find the best in others, to give one's self..., this is to have succeeded."
Ralph Waldo Emerson
Reply
post #99 of 135
Quote:
Originally Posted by ziggytarheel

Maybe I missed it, but my biggest concern for you still is production. You have to actually be able to turn out the volume. Beyond the $$s, have you looked at exactly what she was making to do that volume? Have you compared that with what you can turn out in that amount of time?



Yes. I mean just figure counting up the money every week, every evening. $18k in one week--think about 2.5 people packaging eighteen thousand dollars worth of product in a week. This just seems to be ambitious out the whazoo. Which I'm not exactly doubting the current owner's figures I'm just saying replicating them ain't gonna be easy. Probably ain't gonna happen.
anytime you judge somebody and
you judge something that makes them happy 
that's your weakness speaking ~~ hilaria baldwin
Reply
anytime you judge somebody and
you judge something that makes them happy 
that's your weakness speaking ~~ hilaria baldwin
Reply
post #100 of 135
I'm wondering if the present owner actually bakes everything she sells.......she could be buying some pre-made or frozen items from Sysco or another wholesaler.

I agree, that's a lot of product for 2 people to produce alone.
post #101 of 135
Quote:
Quote:

The $4500/week is what she brings in during the slow season. Busy season is @ 18K/week



Sorry, again, I call foul. There is just no possible way for those numbers to be correct. You need to see and audited profit and loss statement for the last two years. And what constitutes " busy season" ? Is it the two weeks before Christmas, or is it May -October ( wedding season). You need a sales breakdown by item so you can decide whether or not you really want to cut some items. 25% of my TOTAL income comes from individual cupcakes. What if somebody who decided to buy my business decided the cupcake fad was over ? He would go broke almost immediately.

WAAAAAAAY before you worry about the chair situation, you have to know if you can make a living while paying off your sister, plus the previous owner. It will take you a while ( up to two years) to really find your market and get to know what you are doing on a day to day basis, and you either need to be okay earning nothing during those two years or continuing with a successful business model that is in place.

Im just sayin' it sounds like this woman is blowing a little sunshine up your skirt. Before you do anymore work on this project, I would get me some facts and figures ON PAPER from an independent auditor. A business broker won't even list a business for sale if an owner can't produce them.

JMO YMMV ETC.
Scratch bakers of the world UNITE !!
Inrideo ergo sum ~ I snark therefore I am.
Cake or Death?......Cake Please!
Reply
Scratch bakers of the world UNITE !!
Inrideo ergo sum ~ I snark therefore I am.
Cake or Death?......Cake Please!
Reply
post #102 of 135
To OP - what is your current weekly order status?

I know it won't be the same as when you move into the shop, but if you are used to 2-3 cakes on the weekend, having to do $18k worth of product may be a rude awakening.

Production is also my main concern. Production and marketing. When you've got bills to pay, you can't rely solely on word of mouth.
Cake decorating ROCKS!!
Reply
Cake decorating ROCKS!!
Reply
post #103 of 135
Quote:
Originally Posted by ccr03

To OP - what is your current weekly order status?

I know it won't be the same as when you move into the shop, but if you are used to 2-3 cakes on the weekend, having to do $18k worth of product may be a rude awakening.

Production is also my main concern. Production and marketing. When you've got bills to pay, you can't rely solely on word of mouth.



Gosh that's funny!!!! Rude awakening ah huh.

But there' s not gonna be much marketing going on when you
are tied up producing selling and raking in the money for eighteen big ones a week for 2.5 folks. Say it was three folks, $6k each for three weeks in a row--Dude after that I'm seeing Hawaiin vacation for several more weeks or a hospital stay.


Op, CakeBuddy, you're not gonna have time to pay bills, order ingredients & products, keep the bathroom clean, answer the phone, schmooze customers, sell over the counter (or loose $1.5k- $6K a week)* and do your accounting, make bank deposits, stop at Sam's, and make & bake and have any brain at all left to decorate fine cake and deliver them.

I hope the road to finding something 'from scratch' works out.

*owner states 30% of her receipts are from over the counter sales
anytime you judge somebody and
you judge something that makes them happy 
that's your weakness speaking ~~ hilaria baldwin
Reply
anytime you judge somebody and
you judge something that makes them happy 
that's your weakness speaking ~~ hilaria baldwin
Reply
post #104 of 135
Thread Starter 
Ok. So I need to ask for a profit/loss statement (which I believe is not the same thing as taxes, correct?) and I should ask how many cakes and such she sells per week, correct?

The production IS a concern to me as well, since, as CCR03 mentions, I am not used to that amount of volume. Another thing that is a concern to me is that the owner is always mentioning that it is mainly a cash business. So a lot of things are not recorded. I'm sorry, but even if it IS cash, wouldn't you still want a record of it for yourself in some way? I think it is a red flag if they can't give me a more accurate account of the volume.

I do believe she bakes everything herself. The advertising I am not as worried about, since I have experience with that and have already looked into the cost and procedures for the things that I want to do.

No decision can be made right now. My DH finds out mid-July his job status, whether he still has one, is transferred to CA, or out of one completely. Nothing will be rushed into. I PROMISE!!!! I am taking it slow and heeding all of your advice to find info out.

PLEASE don't lose patience with me. *puppy-dog eyes*

Snarkybaker - do you have a shop? what does "JMO YMMV ETC" mean?
post #105 of 135
Quote:
Originally Posted by k8memphis

Ok I'm chiming, KiddieK, but you're not gonna like it.

Quote:
Originally Posted by saberger

This way I can just decorate, right?

I have heard about endless hours and LOTS of work, esp. the first year. But if this is already established, what do I have to do? Seriously! I need to know EXACTLY what I would be getting myself into here if we were to do this. ....but I do NOT want to fail or go into this naively!!!!

Please, please, PLEASE....put me in my place and tell me.



<This is written in a conversational tone>

Honestly if you want a business-you have to be a trailblazer. Your spirit of wanting others to tell you is in itself telltale that you're not the kind of person to do this.

You have the dream but you want your husband and sister and us to do the dirty work. Nice work if you can get it.

No there's several other things besides decorating that you'll have to do.

There are people out there right now reading this who are sucking all the air out of the room--"Oh my oh my K8's being harsh", they are thinking. That might be one way to look at it. But business is nothing if not unrelenting sandpaper harsh. I on the other hand am being for real which is what is needed to launch and run a successful business.

If you can set this up and keep yourself further insulated from reality go for it. I just feel from what you've written that you've got a ways to go. Keep at it-- you can get there if you want to. If you don't want to go into this naively then regroup because you're there.

Just some business start up thoughts for you.



I dont have time to read this whole thread (I am living on fumes right now and had to take a break! haha)
I dont konw if others have given you a hard time or not, but I have to say I completely agree with you.

To the OP: If you dont want to put in long hard hours, don't like to deal with Money, don't have a business head, then walk away. During wedding season, I work 100 hours a week easy, and that is every week from April to October. 7 days a week. My average day is from 6 am to midnight. That is if I actually have "days" My days kind of run together, as usualy I work 18 hours, take a 3-5 hour nap, then work 18 hours again. I know it sounds crazy, but you don't just have to be a decorator, you have to be a salesperson, a fair boss, a bookkeeper, a order clerk, a baker, and on and on. Forget about weekends off as weekends are the busy time!

On the plus side, you are your own boss. If you want to take a week off, a month off (I am not usually very busy in December, so I take most of the month off) you can. If you want to drink a nice glass of wine while working, you can. If you want to work till 5 am and then sleep till noon, you can.

But I have to tell you, you have to really really love this. I dont know anyone who has a bakery like Ace of Cakes! It isnt throwing fondant at each other and laughing and goofing off. You know why you see Duff sleeping on the couch? Probably because he has been up for 18 hours!

And I wont even get into the financing end of things in this economy! Hope your lottery ticket is a winner, because most banks are not giving out loans, despite what the media is trying to have you think.

Anyway, sorry I am being so honest as well, I just hate for you to go into something so huge so blindly..

good luck!
Gotta have more cowbell!
Reply
Gotta have more cowbell!
Reply
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)