Idid not read all of the responses to your issue. However, I do have some thoughts on saving your business. I do not think that you really HAVE to become a scratch baker to make it work. What I do think you need to do is stop worrying aobut knocking her socks off and knock your customers socks off instead. Great customer service will win out everytime. I would also start some sort of referal system. For instance, EVERY time a do a cake, I send them a hand written thank you note that does double duty as a coupon for either thier next order or a dicount for refering a customer who buys from me. I live in a town of less than 6000 people so the personal touch has done wonders for growing my business. You are allways going to have competition it is up to you to respond to it in a way that earns you the buiness. GOOD LUCK!
You can use it measure for measure, with no problem.
When my business really gets going, I'm going to buy it directly from the distributor and in larger amounts. Right now, it's better for me to do it this way. We have almost no storage. 
Why are the 1950's houses built with vitually NO closet/storage space?
(it's definitely NOT a farmhouse, that's for sure.) 
Why are the 1950's houses built with vitually NO closet/storage space?
(it's definitely NOT a farmhouse, that's for sure.)
Well as my Mom used to say......."you kids don't want to throw anything away", I guess her generation didn't have as much "stuff" as we do. When we built this house in 2004 I made sure the closets were huge and the attic is a walk-up with a floor and tons of storage. Well, 5 years later I'm saying, "I need more storage" go figure, the more space I have the more stuff I save. Oh well!
Good luck Karema, I hope things get better for you guys 
So have been working on flyers while I'm at the flea market. I am working on getting out of there but for now this is what I've come up with. How do you think it looks do you think I've said the right things?
Ok I cant attach it but basically it says
A little Piece of heave
New york State Licenced Home baker
Homemade
cookies
cakes
pies
muffins
cupcakes
The location in the market
Look for the pink table
We also walk around so look for the pink basket to see our daily specials
"Often imatated, never duplicated"
What do you all think does this sound ok?
First, I hope you run a spell check and grammar check on your final copy, because you have serious capitalization issues in your post and 'licensed' is spelled wrong.
You also may want to run a check on whether the phrase, "Often imitated, never duplicated" (correct the spelling of 'imitated' if you do use it) is copyrighted. I seriously doubt you will be able to use that phrase.
Other than those errors, it sounds pretty to the point.
I think that you need to check this out.
http://www.etsy.com/view_listing.php?listing_id=10856855
Fat Daddy's Cupcakes. It's a bit gimmicky, but something like this, I think, is going to set you apart from the others. You can get disposable (sp???) cups or bowls with lids and make yours that way. or in 8 oz take-out containers, or whatever. Put a cute little ribbon and a tag on it...
Good luck!
Karema: When I moved here I didn't know anyone, so I started baking cakes (6"), decorate them, simple but elegant, went to doctors offices and hand them out to the personnel in each office (about 15 offices), baked cupcakes and went to different churchs and give them for free with my card attached. At first I had to do them without any income coming in, which was very risky. Result: Word spread out, now I have lots of orders, and even already have until March 2010 booked. I know you will have success in your business, it will take time (like mine did), but at the end you will see your orders coming in...
Best of luck!!!!
I think that you need to check this out.
http://www.etsy.com/view_listing.php?listing_id=10856855
Fat Daddy's Cupcakes. It's a bit gimmicky, but something like this, I think, is going to set you apart from the others. You can get disposable (sp???) cups or bowls with lids and make yours that way. or in 8 oz take-out containers, or whatever. Put a cute little ribbon and a tag on it...
Good luck!
That site could also give you some flavour combo possibilities! 
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