How to Open Your Own Cake Business

Opening a cake business can be rewarding but requires careful planning.

When starting a cake business, the costs and work involved are significant. Take time before you jump in to research each step of the process by soliciting advice from professional chefs, bakers, decorators and others in the industry about your plans. To test out recipes and customer demand, consider operating a small business out of your home before opening up a retail outlet.

Things You'll Need

• Business space
• Business license
• Start-up funds
• Commercial baking equipment
• Kitchen
• Ingredients
• Packaging
• Staff

Instructions

1. Decide on and develop the scope of your business: Are you going to begin as a small operation with just yourself, or do you plan to expand the business immediately and gather a staff? Will you focus on wedding cakes and special-occasion cakes? What will your specific role in the business be? Will you make deliveries or shipments? Who will most of your customers be? The answers to these questions will help determine the resources you need, including how much funding you must secure to get started.

2. Register your business and business name with the U.S. government at Business.gov, the U.S. Small Business Administration's website. Obtain a federal tax ID number, register with your state's revenue agency and get any state or federal licenses or permits necessary to operate your business. Get the kitchen and equipment you'll be using for your business inspected by sanitation and health officials. If you skip this step, you'll be subject to fines and health-code violations.

3. Secure and apply the funding you need to start your business, either by dipping into a savings account, soliciting loans from friends and relatives, or securing a small-business loan from a bank or other lending institution. Invest the money you get in start-up equipment, supplies and ingredients, rent (if you're operating in a commercial environment) and basic operating costs.

4. Advertise your business locally, and spread information by word of mouth. Promote the opening of your business, and offer free products or discounts for those who show up for your first day or first week of operation.

5. Prepare your business for opening. Test recipes in small and large batches, organize your kitchen and decorating area and judge the heat and consistency produced by the ovens you have. As a final test before you open to the public, schedule a "soft opening" or mock opening in which you will bake, prepare, decorate and ship or deliver as many cakes as you would during a traditional business day. Iron out any mistakes from the mock opening before your grand opening so that you can serve your customers as successfully as possible.

References

• Business.Gov: Steps to Registering a Business
• Google Books: How to Open a Financially Successful Bakery

Resources

• Earlene's Cakes: The Business of Cake Decorating