I have been searching for a space to rent so that I can be legal. I have only sold one cake and that was to a friend. I make a cake every week so that I can have a portfolio. I think I found a space and have been toying with renting out the kitchen to other bakers to help cover the rent. I didn't want to do that because I would be creating my own competition. My DH told me to go ahead and sign the lease but I keep putting it off getting cold feet. (& I am feeling some self sabotage coming on)
I was reading a post elsewhere about legal bakers being self sustaining and I was shocked at the answers. Now I just found that there is a licensed baker that is no longer at their location and I am wondering if maybe the market here for specialty cakes isn't that great. I don't have a niche, I know I need to find one but right now I just don't. Looking at this from someone who isn't licensed but wants to be, I don't want to invest $ in something that I can't make a go of it. I really enjoy baking and decorating cakes, I thought I finally found something that would make me happy but I'm just unsure.
I am just wondering what you guys think being on the licensed end of it and on the non licensed end, what would be your next step? How would would you feel?
Well, I know in my situation, if I had NOT been legal, I would have been reported right away. So, I became legal before that could happen. I was fortunate, in that I didn't have to rent a space - I had an outdoor kitchen that I renovated to meet requirements.Becoming legal really helped my business, in that I could advertise, tell EVERYONE, and really get after it. Right now, less than 1 year after beginning, I have as much business as I can handle. Of course, I do catering, too. But, the cakes just keep on coming in. I would advise you to become legal. Also, whatever expenses you have are a great tax deduction. You might want to talk to a CPA.
Good Luck!
Hi!
I am a licensed baker and have my own custom cake/cookie shop. I am going to give you my opinion about the whole thing...and its just my opinion so not meant to b offensive or anything.
I am lucky that we own my building so we don't have any rent to pay. We just pay for utilities and insurance. My cake money is just spending money and we would not be in any kind of financial difficulty if I chose to quit at any time. We did not go into debt to do this so I am far less stressed than most licensed bakers might be. That being said, Being a licensed shop is hard work and can get very tedious. ...I can just imagined how magnified that would be if I was trying to do enough cakes to pay business rent etc. Its not like doing it from home as a fun hobby where you can just get your house stuff done while a cake bakes etc; and if your running a business its not just a cake here and there for a friend or relative. Its cakes for strangers who can be difficult to deal with and that you have to complete cakes for even if at the last minute you decide you don't feel like it or want to. If you get busy enough to have a viable business you will feel the effects of burn out and they come sooner than you think. There is a reason why most towns only have one or two free standing bakeries...its a hard job to have. Also, most people start off doing it alone. you are every part of your business...baker, decorator, janitor, CPA etc and it is a lot of hats to wear. I think lots of people think oh if I could just be legal it would be so easy....nope its not. Its a hard business especially when you are starting out and trying to get your name out there. In the mean time you are also competing with unlicensed bakers that can charge less than you because they don't pay licensing fees, health dept fees, insurance, rent etc., and the already established bakeries in town.
People can be hesitant to try new food products and some people are also cheap. They want to pay Wally World price for a cake thats so much better than anything they could get there. I have a nice steady stream of customers who are not like that and are very loyal. That is the type of customers you need as a base and they refer you and your business will grown...as your get busier things get hectic, you get tired and you start burning out and not loving it like you did before. I have thought about quitting more times than I care to admit and I don't have near the pressures most bakeries have.
Keep in mind your rent, bills and insurance costs per month and see how many cakes you will have to sell in order to just cover that....and that means to be sure you only count the profit after you pay for your ingredients and boxes etc per cake. Even a low rent of $400 doesnt seem like much until your figure how much work you will have just to cover that...then the utilities etc also.
I don't want to be discouraging to any1 i am just providing my opinion from a licensed bakery stand point. Its not so easy and not so fun always. Do I still do cakes I enjoy ABSOLUTELY and I love to do those but sometimes I also do some that I wonder why I even took the order for them. I did set an order minimum of $35 recently but am going to raise that to $50 soon. I do not do Sheet cakes at all, and I also don't take orders for just plain old cakes anymore. Again if I was worried about bills, I would probably have to take most orders and not have a minimum order either.
Sorry this was so long winded, but I just wanted to share my opinions. It wasnt meant to be offensive or anything so plz don't get upset. I'd be happy to answer any questions if I can.
CupofButter. Very well done! You said exactly what I was going to.
I'm in the same boat. I have no overhead in rent/utliites etc. As I chose to have a commercial kitchen in my home. We didn't have to invest too much $$. So now all the cake money is profit.
As well, I could quit at anytime (well after I fulfill my contracts 
) and not be in financial hardship.
Just be careful and consider what type of lease you are signing.
Here is my story: I am a stay-at-home mom and have a "knack for baking and cake decorating" I sold cakes to my friends for years for their kids birthdays and special occasions. I knew I wanted to be legal, but also wanted to be a stay-at-home mom...we knew we were going to finish the basement because we needed two bedrooms for the big boys...now my 16 and 14 year old. anyway, we had my brother do the work and we built two bedrooms in the basement, a little front room for them, and a bathroom and my kitchen. It took a lot longer than I had ever imagined it would, but is now finished and I have a commercial kitchen that is liscenced. I don't have any over head, so my cakes are all profit...somewhat, I still have to pay the credit card bill that I charged some advertising and a two huge bridal shows on....but anyway. I get to stay at home and do my thing, which is hanging out in pj's and getting kids off to school and having my daughter home with me all day. I really do have the best of both worlds this way.
If I had rent to pay...it would be much more stressful for a new business.
I am not sure of your situation, and if you have kids and all that so you'll have to decided what is right for you.
I would contact the business that went out of business and ask the lady out for coffee, and pick her brain and find out why she went out of business....maybe the market sucks and there isn't a way to make the big bucks in your area....you really need to know that before you sink your $$$ into opening your business.
Most importantly, Good luck!
melody
I agree with cup of butter & sugar bean. It is hard work. I don't know if I would have taken the plunge had I not had a building, no overhead, and not much expense. I also didn't need the income to survive. I started out to "test the waters" so to speak. I also have other income coming in. You have to consider all of these things. You also have to consider the time you will no longer have with your family. This business takes ALL of your time, especially in the beginning, when you can't afford to hire help. (RELIABLE HELP)
Thank you all for your input. I'm not offended at all I appreciate the honesty. I do understand all that is involved running a business as far as wearing all the hats, that doesn't bother me, done it before.
I used to own a salon so I am used to dealing with (difficult) people and I do understand about the burnout.
I wouldn't be going into this with debt so that's not a problem. I guess I just don't want to fork over money every month out of our household money. I want this business to carry itself. I know that isn't going to happen overnight. The other bakers here all have something else that they do with cakes and I don't so I worry about that.
If I could convert my garage into a commercial kitchen this wouldn't be an issue. I've refrained from selling illegally because I know that if I get caught that it could cost me the money that I have saved to become legal and then when I try to get a license I could be denied. I don't want to chance it. So I guess it's sell illegally and take a chance of getting caught and fined or take a chance and become legal...
I just wish I could convince the city to let me convert this all my problems would be solved. Why does it have to be a PIA?
So does anyone actually rent space here? or is everyone working from their licensed home kitchens or owned property?
Maybe I can convince my DH to move again 
Ok I'm done, sorry about the tangent
Slightly off topic -
This is a question for those bakers out there that have a commercial kitchen that is liscenced from thier property (ie: basement or garage). Do you live in more rural areas or are you in a suburban neighborhood? I thought that having a second oven on your property or running a business out of your home was not legal? Or maybe it depends upon the zoning of each home?
This is great information!! Thanks for your honest opinions and for posting your experiences.
I dream of having my one bakery someday....but there needs to be some reality attached to my dreams, too!!
Has anyone considered or does anyone sell decorating supplies as a way to increase income?
I looked at the incubator thread that is here in the forum but the place that is listed didn't have a kitchen they had office incubator. I have tried churches,lodges, restaurants, craigslist and nothing. The only space that I found where the rent was very minimal needed so much work it would have taken all of my equipment money & more just to move in.
Slightly off topic -
This is a question for those bakers out there that have a commercial kitchen that is liscenced from thier property (ie: basement or garage). Do you live in more rural areas or are you in a suburban neighborhood? I thought that having a second oven on your property or running a business out of your home was not legal? Or maybe it depends upon the zoning of each home?
Depends on where you live. I live in suburban city. Its legal here, so long as it is not my primary kitchen and I have locking door.
Azterp:
I live in a rural area, no zoning problems. I think it all has to do with state and local laws in your area. If you contact your health dept. they would be able to tell you what restrictrions apply in your situation. My business is in an entirely separate building from my home. It has its own electric meter base, sewerage treatment plant, water, etc. I don't think I would have been allowed (in my area) to do it from a place attached to my residence (garage, etc.)
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