Starting your own cake business is a lucrative idea in any environment. Cakes are used birthday parties, weddings and other special occasions, cakes are an integral part of many celebrations in the United Sates and anywhere in the World. Industry innovations have made it possible for consumers to turn their confectioner’s dream into a reality and allow bakers to become more imaginative with their creations. Depending upon the business plan and overall goals of the entrepreneur, a cake business can be structured several different ways. Many business owners service the entire community, while targeting a specific niche market, based on their baking strengths and public need.
Making cakes is an art but running a cake-making business is a science. There’s a lot to consider when starting your own cake business from perfecting recipes and mastering the art of cake decorating to marketing your delicious creations.
This guide will cover everything you need to know about how to start your own cake business. So let’s get started on your journey to success!
How to Start Your Own Cake Business
To start your own cake business, you can even start your cake business from home before investing in a commercial space. While cakes are comparatively accessible foodservice businesses, they present unique challenges. From writing a cake business plan to getting funding and filing for permits especially in the United States, here’s a walkout steps of opening your own cake business.
1. Decide Your Recipes
To start your own cake business in the United States, there are a lot of decisions to be made. Perhaps the most important decision is deciding what cake recipes are best for your business. There are a lot of factors to consider, such as your target market, your budget, and your own personal preferences. But with so many delicious options out there, how can you choose just a few? Here are a few tips to help you decide your recipes:
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Look at your target market
What type of cakes do they like? Do they prefer classic flavours or something more unique or contemporary? Once you have an idea of what our potential customers are looking for, you can start to narrow down your options.
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Consider your budget
Cake ingredients can be expensive so you’ll need to choose recipes that use ingredients that you can afford. You should also factor in the cost of decorating supplies and labour when deciding how much to charge for your cakes.
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Think about your own preferences
What type of cakes do you like to make? What flavours do you enjoy? Choose recipes that you will actually enjoy making as well as ones that you think will be popular with your customers. By taking the time to choose the right recipes for your business, you can ensure that everyone involved – from the baker to the customer – will have a tasty experience.
Read Also: How Small Businesses Can Thrive During Economic Recession
2. Know the Equipment do You Need for Your Business
What equipment do you need for your business? Any aspiring cake maker will need to invest in some key equipment before they can start their business:
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An Oven
Obviously, the first piece of equipment you will need is an oven. The price range for ovens varies dramatically so take a look at your budget as well as the space in your kitchen and see what makes the most sense for your business. Hopefully, you already have an oven if you are starting the business from home, so this won’t be an issue.
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A Mixer and Cake Tins
You will definitely need a good quality mixer for whipping up the cake batter. A stand mixer is ideal, but a hand-held mixer will also do the job. A selection of cake tins in different shapes and sizes are also must-have items. These tins will be used for baking the cakes, so it’s important to choose ones that are durable and non-stick.
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Decoration and Packaging
A skilled cake maker will also need a wide variety of decorating equipment, such as piping bags and fondant cutters. And finally, don’t will need some basic packaging supplies, such as cellophane wrappers and ribbons. A well-packaged cake is a valuable final touch to add to your product. With all of this equipment on hand, you will be well-prepared to start your business.
3. Know the Cost of Cake Business
What are the cost of cake business? Aside from standard overhead costs, your expenses will be fairly minimal. Your operating license and insurance will renew annually and could set you back anywhere from $800 to $1,600. Cake ingredients, packaging, and promotional items will consume the greatest portion of your budget. These costs fluctuate, depending upon how busy you are that particular month. Regular maintenance and repair on your equipment will limit costs associated with replacing damaged items. If you offer delivery, you will also need to budget for fuel, costs associated with the vehicle, and higher insurance premiums.
4. Know Your Target Market
Who is the target market? When developing your business plan, you will want to identify your target market. Research other bakers in the area and identify community needs that aren’t being met. Do any of those niches appeal to you? Organic cakes, vegan products, and gluten free options are niches you might want to explore. Do you want to specialize in wedding cakes or is this a niche you want to avoid altogether? Once you’ve identified the facets of the business that most appeal to you, you can begin to build your buyer personas and target them in marketing efforts.
5. Perfect Your Baking Skills
There’s nothing like the satisfaction of taking a cake out of the oven that you’ve made from scratch. The aroma of the freshly baked cake, the sight of the fluffy frosting… it’s enough to make your mouth water! However, if you’re running a cake-making business, the cake needs to be perfect. After all, customers won’t keep coming back if they’re not happy with the product. That’s why it’s important to practise and perfect your baking skills all the time.
Baking is both an art and a science, and anyone who wants to start a cake-making business must be able to master both aspects of the craft. Recipes must be followed to the letter, measuring all the ingredients precisely and ensuring that they are all fresh and of the highest quality.
However, even perfect recipes will only produce an average cake if it is not baked with skill and care. The baker must know how to adjust the oven temperature and baking time to suit the recipe, as well as have a light touch when it comes to handling the cake batter and dough. With enough practice, perfecting these baking skills becomes second nature and the results will be scrumptious cakes that are sure to please even the most discerning customer.
6. Obtain the Necessary Permits and Licenses
Obtaining the necessary permits and licenses is an important step to start your own cake business in the United States.
United States residents who are interested in starting a small business baking and decorating cakes may be surprised to learn that there are several permits and licenses that are required in order to operate legally. These include:
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Food Handler’s License
If you’re planning on serving food in the United States, you’ll need to get a food handler’s license. The process is pretty straightforward and there’s no need to worry if you don’t have any experience as anyone can get a permit as long as they pass the test.
There are several online platforms in the United States offering food handling training to proves that you are committed to giving your customers the safest and best experience possible.
Once you’ve got your permit, you’re free to start serving food to the public. Just make sure that you keep up with your food safety knowledge and renew your permit every three years.
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Business Permit
Anyone looking to start a business in the United States will need to obtain a permit from the government. The process can be a bit confusing, but here are the basics:
First, you will need to fill out the necessary application form. This can be done online or in person at your local government office. Once you have submitted your form, you will need to pay a fee and provide proof of your identity.
Next, you will need to attend an interview with a member of the United States business permit team. During this interview, you will be asked about your business plans and what type of permit you need.
Finally, once your application has been approved, you will be issued a United States business permit.
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Public Liability Insurance
In the United States, public liability insurance is a type of insurance that businesses are required to have in order to protect themselves from claims made by the public. This includes things like slips and falls, property damage, and personal injury. If you’re a business owner, it’s important to make sure that you have public liability insurance in place to protect yourself from these types of claims.
There are a few different ways to get public liability insurance in the United States. You can either buy it from an insurance company or get it through a business association. If you’re not sure where to start, you can always speak to a solicitor to get some advice on how to get started.
How to Market Your Cake Business in the United States
Now that the baking side of your new business is taken care of, you need to consider how you are actually going to sell your products. If you’re in the business of making cakes, you’ll need to do more than simply put up a sign that says ‘cakes for sale.’ You need to get creative with your marketing if you want your business to be a success. Here are a few ideas to get you started:
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Make use of social media
Regularly post mouth-watering photos of your latest creations on Google, Instagram, Facebook, and TikTok, making sure to use relevant hashtags so that potential customers can easily find your page.
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Get involved with local events
Whether it’s setting up a stall at the farmer’s market or providing prizes for a bake-off competition, getting your name out there will help to raise awareness of your business.
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Offer discounts or freebies
Who doesn’t love a bargain? Offering discounts on your products will encourage people to give them a try, and you may just find that you gain some loyal customers as a result.
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Think outside the (cake) box
There are plenty of other ways to market your business from hosting baking classes to creating bespoke cakes for special occasions. Be creative and have fun with it.
