I have had a couple of chances at opening a small bakery/cake business in my town, and I have had many many people tell me that this is exactly what our town needs and that they would support my business if i were to head out on this venture.
I really want to do this. It is something that I love doing and truly enjoy..but im scared stiff about starting. Right now i do all of my baking at home and sell at our local farmers market...having a shop would be totally different.
I would love to be able to talk with someone who has started very small on a small budget and had it work for them. I think just knowing that it has been done and can be done and having some ideas about how to go about doing it will give me the push that i need to jump in.
Im open for any advice, help, stories, anything.
thanks bunches!
Tiff

i sure feel for ya. i'm scared stiff about going ahead too. i hope you get lots of advice!!

hey TiffTurtle --

where are you in NC?

you're lucky to be in a state that allows home-based baking and selling with only a few restrictions -- major one: NO house pets.

see this thread for lots more info:

http://cakecentral.com/cake-decorating-ftopict-25271-nc.html


and also these:

http://cakecentral.com/cake-decorating-ftopict-439263-nc.html

http://cakecentral.com/cake-decorating-ftopict-410843-tax.html

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and be sure to see this thread about a meet-up we're trying to get going:

http://cakecentral.com/cake-decorating-ftopict-450423-.html

Starting a business is a lot like having a baby. If you aren't prepared to get very little sleep, take on another huge expense, and let your life revolve around it for at least 4 or 5 years - then don't do it.

I'm here with ya. I can't give you any Mentoring but I can give you support.

I'm looking into doing the same thing. I was thinking of going to the next town over (9miles) instead of my town (4 1/2 miles) Because My towm is tiny with not much in it. But I spoke to people who think it could be really need in my small town.

So I'm here with ya

cCc

I agree and am trying to do the same thing. I am currently working on my business plan. Can't wait to hear the replies.

I have opened a very small bake shoppe. All I wanted was a licensed kitchen with a small retail space. I worked from my home for 2 years to build my business. Present day, my tiny little shop is going gangbusters. I will tell you it is challenging knowing what to have on hand. Today I sold out of everything. It is a juggling act as I am a one man show. I have to do all of my supply shopping at night as I'm at the shop in the day. I did not borrow any money to open my shop. My rent is $475.00 Cdn. this includes water. I am not on the street yet people are finding me just fine. I never wanted anything huge to start with. I wanted manageable rent and hours and no staff headaches. I love that I get to market my ideas and that people love my little shop and the baking. I like the creativity of baking in small batches. If I can do it anyone can. It doesn't have to be a huge financial burden. I have exactly what I want. It is hard long work, but it is so rewarding. I say go for it. Stick with your gut as far as size and $$ goes. Look at Magnolia Bakery tiny tiny and they sell over 3000 cupcakes a week. It can be done. Good Luck!

Thanks for the support ...
Doug, I am in upper easter Carolina...bout an hour from OBX.
do you do things out of your home or do you have a store?

obx = outer banks?

do you have any of the equipment you need yet?

i got about half of mine used and half new.

i didn't borrow any money either.... i'm the only cake shop in town besides the grocery stores...it can get very overwhelming...

it's my sole means of support, so it can be done...i'm certainly not getting rich...but it can be very rewarding.

the equipment will be your biggest expense....

with the remodel, first food bill, and equipment, i had invested 28 thousand dollars....that was soup to nuts.


not too bad, i pinched every penny.

I have looked into some used equipment, and im sure that i will go that way...i found a vulcan full sixe oven last night for 650 and im hoping that i can get him to come down on it. i think im mostly worried that the stuff that i do have wont be able to be used in the business...im having a hard time finding out what the restrictions are on what you can use and what you cant.

Where is the best place to find used equipment?

cCc

They have Larger equipment? It would take me a year to figure out e-bay what section can I find it in?

cCc

narrow down your search. Search for "commercial oven" or "3-door refrigerator" .... not "restaurant equipment".

Oops I spoke too soon. I just got on there and I think I found what I am looking for. I just have to go through the listings and find what I can afford.

Thanks everyone!

cCc

gotta watch watch the shipping on ebay.

look in the yellow pages for used restaurant equipment....i went to one , the stuff he had was amazing...he even had automated stuff....

i got my 30 qt mixer for 1800.00....i thought that was a deal, it was almost new.

sounds like a good price on that oven!

By day I am a small biz consultant - have been running my own biz for over a year and a half - have been helping others run their businesses for over ten years.

My first suggestion is put things to paper. Opening a biz can be an emotional thing for people - especially those who are passionate about their craft. I have seen many people go into biz without much planning and it makes things more difficult for them.

Start here:

1. Make a financial assessment of your personal finances. How much debt do you have? How is your credit score? How are your savings - do you have reserves to pull on? How much money do you need a month in order to pay all your bills ? Do you have any other sources of income (partner, alimony, investments)? Are those sources of income enough to cover your monthly bills?

2. Create a start-up budget. This includes deposits (rental, phone and utilities), equipment purchases/leases, tools and smallwares purchases (pans, rolling stacked carts, spatulas, etc) administrative costs (biz licenses, permits, etc.), inventory (you will need flour, butter, oil, etc. to make product), marketing (the sign for your store, carry-out bags with your logo on them, biz cards, etc.), leasehold improvements (finding the right commercial space may require you to upgrade the space in order to move in), and more. Then add 20% to the total for all those misc things that WILL come up.

Play with the budget numbers - cost of buying everything new, cost of some things new, some not. Cost of buying some things now and some later as cash flow improves.

Once you have that done, take an inventory of local bakeries - where are they located? How much do they charge for their products? How do their products compare to those you will be selling? (This is technically called market research). If you live in a rural or suburbian area, do this for your entire county.

When you're done with all that, let me know! I have a longer to-do list yet! ROFL

Best of luck!

TiffTurtle,

Have u thought about going to the SBA ( Small Business Associations) chapter in your area?

Most colleges have SBA classes- if not check your local yellow pages for their location.

These guys are a very good source and they can address most- if not all your concerns and even mentor...

Go 4 it!

brownsugar...thanks for the info! time to get out the pencil and paper

Thanks ..
I had thought about the SBA..and then i thought who better to talk to than you guys ....people who really understand.
Im looking at 2 places right now...one will require a 5,000.oo deposit and 1,000.00 monthly rent. it is a fully equip. restaurant that closed down about a year ago. But i would still have to put in an oven and mixer.
the second place that im looking into will prolly run between 350.00 and 500.00 a month , however there is NOTHING in there.
the second is about half the size of the first....but for what i want to do i really dont need a large space.
if i go for the large space my mom wants to go in with me and run a sandwich shope and have me run the bakery part.
and to be honest im kinda leary about going into business with someone.....i mean if her part fails, then in essence mine will 2 because they will be 1...argh.....more planning here i come........

From what I've seen and heard, partnerships rarely work out in the long run. Anyone have experience in this area?

I'd go for the larger space. If you have someone willing to share the rent with you, you end up coming out WAY ahead. Depending on how comfortable you are with a partner, you may each want to simply operate your own businesses; just under the same roof (like roommates).

Blank spaces are VERY expensive to build out... especially when you have to do everything to health department regulations, and sometimes it seems they change their mind after inspecting what they told you to do! LOL! Add in the cost of equipment, and the fact that doing a build-out takes time - and you will be paying money out that entire time, but not pulling in any income. If the other place needs only an oven, you can be operational that much quicker.

I've seen small build-outs take MONTHS because of inspections, and re-inspections, and someone installed something wrong. It can be a nightmare. If you become successful, you can always move to a different location and just do a build-out while you're still in business at the first location.