This is my first post on here - There is so much information on here - it's almost overwhelming, i love it though!
I am in the process of setting up my own at home cake business. I'm not being naive about it though - I'm taking my time and plan on "opening up shop" next wedding season/spring.
I have a lot of the legal stuff put together so far, however, I am in process of fine tuning my baking/decorating skills.
My question is for you at home bakers - does having your own business like this bring in any money at all? I plan on this being a part time gig until I have enough clients where I can do this full time - but I don't want all my time and effort and cakes to only bring in next to nothing...ya know?
This is kind of a personal question and don't answer if you don't feel comfortable - but what is the average amount of income you receive from your business? Is all of it worth it? For me - cakes/baking is a passion of mine - so I know that's not the issue. I just want to make sure that I will be able to pull my weight in our home
Thanks your your input here! I've been doing a lot of research and haven't found much information about this!
I am in the very early stages of my home business, too. I do it part time and I bring in an average of $500/month gross. However, I do not have a website yet, nor do I do any sort of marketing yet. That is all word of mouth. Not enough to quit my day job, but it's picking up. Most importantly, I love doing it and it does help with the groceries every month. HTH and good luck!
The answer to your question is going to be different from every baker out there.
Of course your income will depend on how many customers you have, but you must insure that your pricing is properly structured for your market. Make sure all your costs are covered (including your time) and that you have allowed for a decent profit margin. Your prices must also reflect your skill level - if the product is there, your customers will pay for it.
You probably won't get rich doing this part time (or full time, for that matter). If you're not depending on the income right now, you should at least try to cover your costs on every cake while you get your name out there. Only you can decide what amount is an acceptable income, and then adjust your business to make that happen.
I just started out really ..this year. March was my busiest so far. I work from home, only me, and could barely keep up with how many cakes I did (a total of 8 that I made profit on, and 3 that were gifts). I made $300 profit. Not nearly enough I believe..which makes me hesitant on continuing....I probably am not charging enough..but do not want to go into wedding cakes yet..I would like to just stick with birthday and those type of events.
My business is only 1 1/2 years old and it has made a profit from day one, but that was my business plan.
As far as earning a living, I am developing this business for one of my daughters. But in this time, I have a retail bakery location (in a restaurant), a booming national wholesale business, regular business from individual clients, and a wholesaler that wants to mainstream one of my products to gourmet stores across the country. So can it be done? Sure. But a good working knowledge of business and marketing, a complete business plan, and a scheduled growth plan are musts. Experience in owning or running a successful business will go a long way to insuring profitability.
Future plans are a retail store and an online shipping business.
I live in a very rural area, and sell about 15 cakes a year. I pocket quite a bit from each cake, but it goes right from my pocket to insurance and more cake toys. I make enough profit to take my kids to the "big city" (3 hours away with 50,000 people!), twice a year to spend the night and go swimming or to a concert. There is no way I could do this as a real job.
I am also just starting out. I work a full time job and do this on the side. I do have a website and I advertise at two local businesses and have friends that work at children's party places that recommend my services.
It been about 7 months and I seem to have orders every week, if not more then one. I run holiday menus and monthly events. I have been surprised on how busy my passion has been. But it does all depend on the area you are in and how willing people are to pay. For me, I live in an area were there are a lot of decorates around and bakeries. I try to keep my stuff unique and customized to my clients. I have never done the same cake design for a set of clients. I do not offer ordering online, which gives me the flexibility to make my schedule according to what I have going on in my own life.
You might see a loss/profit in the beginning, but as long as your sticking to your goals and having fun with it, you are the only one to decide if it is truly worth it.
I forgot to answer the main question. In the 7 months I have made around $1,200 in profit.