Texas Cottage Food Law, Among Other Questions...
Business By maira5792 Updated 15 Nov 2013 , 12:23am by kikiandkyle
Hi all :)
I have a couple of questions for yall. I really want to turn my passion into a business & I want to do things the right way.
Should I mention on my website that I will be operating a cake business under Texas CFL?
Should I mention I have a food handlers license, am ServSafe Food Protection Manager certified, have culinary school experience?
Do you suggest I license the operation? Obtain an EIN # from the IRS?
Thank you
wow--cool i just looked it up --you can have employees in texas under cfl but no commercial equipment--bummer--but all around that's very very cool
and your zoning cannot deny you your cfl--so cool! but hoa's can deny you understandably
all good!
AI bake under that law as well. Yes on all counts. There's a check list on the website when you sign up for an EIN so see if you even need it
AI recommend checking out the local competition before starting up. The market is saturated with bakers. Some do awesome work for next to nothing. The saying you get what you pay for isn't true in states with generous cottage food laws like we have in Texas. It's becoming less and less viable to dream of a storefront cake store.
When your competitors don't charge enough to make even as much as a grocery store decorator, it's extremely difficult to compete with them. It's appalling what a lack of business sense these people have. Normally that would be to one's advantage, but when their spouses are subsidizing their businesses then they can play at business all day long.
Do I sound disgusted? I am. If I'd known what the effect of the cottage law was going to be, I'd have chosen a different path.
A
Original message sent by MimiFix
It's not just Texas. This is happening in most states with (or without) a CFL.
At least in states without a CFL or with a more conservative CFL that provides some kind of oversight and enforcement you can do something about it.
At least in states without a CFL or with a more conservative CFL that provides some kind of oversight and enforcement you can do something about it.
I have students, readers, and clients all across the U.S. From what I hear, the oversight is dwindling. Some county health departments and state Ag & Mkt divisions do follow up on complaints. But many times they do nothing.
A
Our subdivision has some fairly tight restrictions, but when it comes to home businesses, the only no-nos are huge, obtrusive signage and traffic that annoys your neighbors.
The Texas CFL came through right as we moved into our home. I thought about being a "business" when I got my new, cool kitchen. What fun, right - make cakes for shoe money! No accountability to speak of, as long as I tithed and paid my taxes. :)
This website is INVALUABLE to creative ditzes just like me who have no clue about market saturation and undercutting. Now I would never dream of doing the kind of damage to real businesses around town that I was almost guilty of.
I guess I say that to say this: The CFL is really awesome for some things, but a little education for the masses is more than needed.
Thank you everyone! I will try to work on a way to word all of that. I definitely understand your reasoning howsweet, that is why I want to make sure to things the right way. I just feel sort of lost because "most" home bakers charge $2.50- $3.50/serving & then there are the ones who start @ a $1. Some established bakeries charge $1.50-$1.75/serving. So its all over the place
I fall under the category or not charging enough. I am slowly starting to charge more. My issue more than anything is where I am located. I am only 30-45 minutes outside of a large metroplex area but in an area that only a few and far between will pay what I think I should charge. If I needed to do this to support my family, I could not do it. Luckily, it is supplemental money.
Wish there were more people like you, Kimmisue!
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Thank you everyone! I will try to work on a way to word all of that. I definitely understand your reasoning howsweet, that is why I want to make sure to things the right way. I just feel sort of lost because "most" home bakers charge $2.50- $3.50/serving & then there are the ones who start @ a $1. Some established bakeries charge $1.50-$1.75/serving. So its all over the place
No, it's not. And I wasn't "reasoning" or speculating, I was telling you what the situation is. With the prices above, it sounds like you're comparing apples and oranges. A real bakery has to charge enough to make a profit, otherwise they're not a real bakery anymore. (They go out of business) On the other hand a "business" subsidized by a spouse or day job can sustain itself for years while drastically undercharging, however unconscionable it may be.
$2.50-$3.50 per serving is low for high end custom decorated cakes. Don't know how anyone could make a real living with prices like that. But as I said, I'm not sure that you're comparing similar products.
That's most real bakeries, btw. Grocery store bakeries may operate the decorated cakes part at a loss. They do that to bring you into the store for other items and to keep the corner bakery a thing of the past. And that's why you don't want to even consider competing with them.
AYou can charge $1 a serving and get 4 orders, or charge $4 a serving and just get one order. You take in as much money but work way less.
People make the mistake of equating volume with success. If you're not making any profit (or salary at some of the prices we see here), then it doesn't matter how many orders you're getting.
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