I am seriously wondering! I have a lot of money and time invested in my legal business and just found out my state's cottage law goes into effect June 25th.

There are already people in town with FB pages up and running, taking orders for cakes, cupcakes, etc anticipating the 25th. Of course they are charging considerably less than me, across the board.

I am in a small town with a limited number of customers--how do I protect my customer base when these newcomers have such a different price point than I do since they are working from home, without rent/insurance/inspection costs?

This is so disheartening to me after all this work and expense to become legal and then almost 4 years of work building up my clientele, educating them and working my a** off making sure I have a quality product.

Any suggestions from someone that has a legal business with a cottage law in their state? Do you see it affecting your business or am I panicking for nothing?

Here's a thread on the same subject.

http://cakecentral.com/cake-decorating-ftopict-742656.html

To summarize, the best thing you can do is focus on your competitive advantages -- the stuff you can do that CFL bakers can't. This could mean exclusive channels (like wholesale), exclusive products (potentially hazardous items like cheesecakes), and/or exclusive venues (e.g. signing agreements with venues as a preferred vendor or having them disallow non-inspected vendors).

Another option would be becoming a home-based business yourself to reduce your overhead.

There's no doubt this will affect your business so you are doing the right thing by being proactive about it.