Starting a Cake Decorating Business

Before starting a cake decorating business you must take into consideration the cost aspect, legal factors, city and state health regulations, methods of advertising, sale price, and work schedule. You have to research, plan, and develop a business strategy in order to avoid mistakes and build a successful company. The existing competition must also be considered since they already have developed a clientele.

Where to Begin a Cake Decorating Home Business

Upon starting a cake decorating business you must determine the startup costs. To accomplish this you need to know all of the fees for licenses and other government requirements, the location of the business, the necessary supplies, appliances, legal expenses, and the cost of insurance.

The best place to start is at your local government’s website or call them to find out exactly what paperwork has to be submitted, the fees associated with the forms, and the amount of time it takes for everything to be finalized. This lays the foundation for everything else because if you can’t meet certain regulations, like obtaining a food handler’s license, there is no point in going any further.

Once you discover the city and state requirements, it is time to seek out a lawyer. Ask around for a referral and set up consultations so that you find someone affordable and knowledgeable. The lawyer’s job is to incorporate the business or set up the partnership if that is your choice. They also assist in resolving any conflicts with the city or health inspector and can also aid in drafting or reviewing a lease.

Cake Business Location

Everyone knows that the location of a business is important, but that’s not always the case if you are starting a cake decorating business. This type of business is based on word of mouth, and it’s not a traditional bakery so you don’t necessarily need a store front.

You could do this out of your home, which many decorators chose to do especially when they are just starting out, or you can rent something small but with a good size kitchen. Remember, you want to keep renovation and appliance costs down, so look for the best space not the cheapest.

Home Business Insurance

You should not start a cake decorating business without insurance especially if you are working out of your home. In case you burn down the house, give someone food poisoning, or drop a hot pan on an employee and get sued, you need to have insurance. Your homeowner’s policy might not cover a home business so be sure you have the specific coverage you need.

What to charge when Starting a Cake Decorating Business

When determining what price to charge for your cakes, check to see what competitors are charging for their merchandise so you will be competitively priced. Some businesses are going to have high prices while others are low but most of them are going to be within a very close range and that is where your price point should fall. You should not sell yourself short and low ball your cakes, but you may not be able to charge as much as someone with 15 years of experience and a strong reputation.

Is Starting a Cake Decorating Business for You?

So far, all of the external factors involving opening a business have been mentioned but what about you? Can you handle everything that running this type of business entails? Do you mind working long hours or during the weekend? Are you able to tell friends and family “no” when they ask for a free cake? If you are operating the business from your home, do you have the extra cooking and storage space?

These are just some questions that you have to answer before starting a cake decorating business because if you can’t meet some of these requirements your company won’t be successful.