Start a Cake Baking Business
So you want to start a cake baking business.
Some of the things to consider that may be overlooked in many cases are that doing something that you normally enjoy on a personal basis can turn into drudgery if done as a way to make money.
You may love to bake any kind of dessert with your children but if you know you have to get up early to get a job done baking may become something that you dread instead of enjoy.
If you get great satisfaction from people enjoying what you bake then a cake baking business can be a great way for personal satisfaction along with earning additional income for the family.
Permits and licenses vary by state and locale.
Check with the state as to what kind of sales tax license you will need.
In many cases food is not taxed and as a result you may not be required to get a sales tax certificate.
Depending on whether you will be having customers come into a "store" area you may be required to have a health license and have to go under health inspections of your equipment and prep area.
Other considerations are whether you will have enough business to keep you as busy as you want to be.
There are certain times when a cake baking business is busier than others.
In these cases you may want consider offering all kinds of desserts and offer graduation and retirement party services.
My wife has made special occasion cookies (football shaped cookies for a youth football party), graduation cap cookies for grad parties, birthday cookies and holiday themed shaped cookies as well.
You will need to look at storage for bulk ingredients as well as sources for major ingredients (flour, cane sugar, powdered sugar, brown sugar, etc.
) in bulk as well to keep your costs as low as possible.
By keeping costs low you can have a higher gross margin when you price your desserts at the same level as local bakeries.
Never think that you need to be lower priced than a local bakery because you want to break into a market.
You can charge the same prices, but you will need to be aware of what certain kinds of cakes cost from the warehouse clubs in your area and stay away from those kinds of desserts unless you get a special order.
Some of the things to consider that may be overlooked in many cases are that doing something that you normally enjoy on a personal basis can turn into drudgery if done as a way to make money.
You may love to bake any kind of dessert with your children but if you know you have to get up early to get a job done baking may become something that you dread instead of enjoy.
If you get great satisfaction from people enjoying what you bake then a cake baking business can be a great way for personal satisfaction along with earning additional income for the family.
Permits and licenses vary by state and locale.
Check with the state as to what kind of sales tax license you will need.
In many cases food is not taxed and as a result you may not be required to get a sales tax certificate.
Depending on whether you will be having customers come into a "store" area you may be required to have a health license and have to go under health inspections of your equipment and prep area.
Other considerations are whether you will have enough business to keep you as busy as you want to be.
There are certain times when a cake baking business is busier than others.
In these cases you may want consider offering all kinds of desserts and offer graduation and retirement party services.
My wife has made special occasion cookies (football shaped cookies for a youth football party), graduation cap cookies for grad parties, birthday cookies and holiday themed shaped cookies as well.
You will need to look at storage for bulk ingredients as well as sources for major ingredients (flour, cane sugar, powdered sugar, brown sugar, etc.
) in bulk as well to keep your costs as low as possible.
By keeping costs low you can have a higher gross margin when you price your desserts at the same level as local bakeries.
Never think that you need to be lower priced than a local bakery because you want to break into a market.
You can charge the same prices, but you will need to be aware of what certain kinds of cakes cost from the warehouse clubs in your area and stay away from those kinds of desserts unless you get a special order.
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