Is The Recession Making You Re-Think?

Business By Motta Updated 28 Aug 2009 , 3:01pm by Motta

Motta Cake Central Cake Decorator Profile
Motta Posted 27 Aug 2009 , 4:47am
post #1 of 14

My hubby and I have been approved for a bank loan to make my much-dreamed of commercial kitchen in my home. However, we are waffling on accepting the loan because of DH's job. It's tied to the gas/oil industry and sales are low. I fully expect things to bounce back and I really want to go ahead but I'm often too optimistic.

Is anyone really suffering in their cake biz right now? Are people not buying cakes or just buying cheaper cakes?

13 replies
madgeowens Cake Central Cake Decorator Profile
madgeowens Posted 27 Aug 2009 , 5:06am
post #2 of 14

People will always want cakes for those special celebrations. As long as they can't find something as good as gas and oil, you will be ok....I don't think anything they have thus far is very successful. We are in the same business.....keep your chin up, and go for it.............then if things turn south for his job, you will be established and bringing in doremi...good luck...........

LaBellaFlor Cake Central Cake Decorator Profile
LaBellaFlor Posted 27 Aug 2009 , 5:31am
post #3 of 14

People will always buy what they really want, recession or not. You have to decide if you think you can pull those clients in.

SweetArt Cake Central Cake Decorator Profile
SweetArt Posted 27 Aug 2009 , 11:02pm
post #4 of 14

I have not slowed down at all. I'm in the Midwest though, which is not as affected as the coastal states. The only change that I have seen is that I'm doing fewer smaller weddings. (I do almost only weddings.) My guess is that those who are having smaller weddings are going somewhere cheaper for their cakes, freeing me up to do more of the larger weddings.

littlecake Cake Central Cake Decorator Profile
littlecake Posted 28 Aug 2009 , 5:06am
post #5 of 14

i been open since sign of a recession in my biz, in fact they are buying more expensive stuff these days.

leepat Cake Central Cake Decorator Profile
leepat Posted 28 Aug 2009 , 10:33am
post #6 of 14

I've only seen an increase in my business. My suggestion to you is to look as some other comparable businesses in your area and see how their businesses are doing.

neelycharmed Cake Central Cake Decorator Profile
neelycharmed Posted 28 Aug 2009 , 10:51am
post #7 of 14

I agree with everyone, check out your area..
This summer for me was my busiest yet! no signs of changing either.,
Good luck with whatever you decide.
Jodi icon_smile.gif

indydebi Cake Central Cake Decorator Profile
indydebi Posted 28 Aug 2009 , 1:12pm
post #8 of 14

If everyone waited until the economy was perfect for opening a biz, there would be no businesses open.

HeidiCrumbs Cake Central Cake Decorator Profile
HeidiCrumbs Posted 28 Aug 2009 , 1:32pm
post #9 of 14

I am using the SCORE organization and they have touched on this a bit. They said that it is almost better to start in at a time like this, as long as you're not needing a HUGE start up loan, to get a small business going. That in a time of excess spending when things are going well people get used to that and then when things start looking down people don't know what to do because they're used to it being so good. I think opening an in-home business (which is what I did last month) is a perfect way to get your feet wet without paying large amounts for rent/lease, empolyees etc...I also agree with someone before me who said that people will always want special occasion cakes (cookies in my case) and will make room for that even if they're struggling a bit. It won't be an everyday thing but for weddings, birthdays, anniversaries etc...people are willing to spend a little more. This of course is all just my opintion, but I think it makes sense. Good luck to you!

majka_ze Cake Central Cake Decorator Profile
majka_ze Posted 28 Aug 2009 , 1:33pm
post #10 of 14

Go with it and good luck to you!

Food industry is usually quite stable, recession or not. People will always do grocery shopping and will be always buying cakes, be it birthday or wedding cake. They might be looking for bargains, but this is not as much connected to recession as simply to the mentality. Everybody (me included) is looking for getting something cheaper than the quoted price.

Kiddiekakes Cake Central Cake Decorator Profile
Kiddiekakes Posted 28 Aug 2009 , 1:36pm
post #11 of 14

I say go for it...Start small and gain a clientelle...The oil and Gas industry here in Alberta may never get back to the crazy boom (And do we want it to crash again anyway) but it is settling out...I say do it....It may end up saving your butt if hubby does get laid off.

Laurel icon_smile.gif

Motta Cake Central Cake Decorator Profile
Motta Posted 28 Aug 2009 , 1:50pm
post #12 of 14

Thank you all for your input! I'm excited to say we're going ahead with it!!! I agree with all that you said - DH was convinced fully when he read that the commercial kitchen will allow us to keep our income up even if he's laid off. (Yes, he reads this stuff too and he even tries to make cakes with me!)

I'm surprised that many of you have seen an increase in business. Good for you! Again, thank you so much for helping me get a perspective on this issue. icon_biggrin.gif

-Tubbs Cake Central Cake Decorator Profile
-Tubbs Posted 28 Aug 2009 , 2:04pm
post #13 of 14

Good luck with your business! PPs are right - everyone has birthdays, weddings and celebrations that need cake. You should be fine.

BTW My DH is also in oil and gas (isn't everyone's in AB?!) as an engineer. He is waiting for the right time to start his own business, and now doesn't seem to be it. Fingers crossed natural gas prices rise a bit soon and give us all a boost.

Motta Cake Central Cake Decorator Profile
Motta Posted 28 Aug 2009 , 3:01pm
post #14 of 14

Thanks Tubbs!

It's not easy to establish a oil/gas dependent business right now. But, like Laurel said, it's going to stabilize sometime and then when the dust settles your DH will really know where to position himself in the market. Good luck to you too.

Quote by @%username% on %date%