Small Home Businesses: How Many Cakes/month And Earnings . .

Business By CupcakeQT82 Updated 13 Aug 2011 , 5:23pm by jason_kraft

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CupcakeQT82 Posted 13 Aug 2011 , 4:30pm
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For those of you who do mostly cakes and cupcakes out of your home as a side business, how many cakes/orders per month do you average? What is the number you feel comfortable with? Also, personal here, but how much does this come to per month? I'm just trying to get a feel for how many orders I need to stay steady and make a small parrt-time income. Any advice is helpful!

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juicyscakes Posted 13 Aug 2011 , 4:58pm
post #2 of 4

that depends on the baker. How many cakes and cupcakes they are doing and what they are charging for each one. look at what you are doing and what you are charging and see how many you need to sell and then go for it

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pinkpiggie78 Posted 13 Aug 2011 , 5:06pm
post #3 of 4

I am in my third year of business and for me, things vary wildly. I have weeks where I do two wedding cakes and other weekends where I do three single tier cakes. I have months I gross $3000 (not profit) and months I gross $500.

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jason_kraft Posted 13 Aug 2011 , 5:23pm
post #4 of 4

We don't bake from home (selling homemade cakes is illegal in CA) but we do have a relatively small-scale operation operated out of a rented commercial kitchen. We also do mostly party cakes as opposed to wedding cakes.

I've found that as a small batch custom baker our maximum throughput with one full-time pastry chef (and myself as a part-time business manger) is 8-10 cakes per weekend, depending on the complexity of the orders. Our average weekly workload is between 4-8 cakes, and our weekly gross usually ranges from $250-1000. If you were doing this yourself part-time and managing the business on your own I would say you could probably manage about 30-40% of that throughput. This number might be lower depending on the configuration of your home kitchen, since things go much faster in a commercial kitchen with multiple ovens and tons of workspace.

These types of businesses usually have a net profit margin in the 10-20% range (after you pay yourself your hourly wage) -- so if you have steady business, set your prices correctly, and can manage 35% of the throughput mentioned above you might see $1000-2000/year in net profits accruing to the business, before taxes. Of course this would be in addition to the hourly wage you draw from the business.

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