All You Need To Know About Setting Up A Cake Business

how to set up a cake business

If you have a knack for baking tasty cakes and would like to start your own business, there is much to consider. Are you planning to retail your products to the general public, or supply in a wholesale format? This is an important aspect and if you are planning to set up a retail outlet, this adds a level of difficulty to the equation, as you have to retail as well as produce the cakes. 

Target Your Customers 

Prior to doing anything, you need to consider who will you be aiming to sell your cakes to. If you are planning to wholesale to local bakery stores, you will need to do some market research, in order to determine which products are in demand. If, for example, you visit some retail outlets with a few samples, this would help your potential customers decide if they would like to add your products to their existing menu. 

Packaging 

This is a very important aspect of marketing cakes and it is vital that your packaging keeps the product fresh for a long time, while also presenting the product in the best possible way. There are suppliers of cake boxes online who can design packaging around your needs, and they can be sourced with an online search. Folding cake boxes are obviously ideal, plus they come in a wide range of sizes and you can have your logo and information printed, making the packaging your branding.

how to start cake pastry store bakery shop startup

Costing 

You will need to crunch the numbers and find out how much it costs you to produce one item, including packaging and transportation, then you can look at the market prices for similar products and work out a profit margin. You must include all of your outgoings when calculating your costs and if there seems to be a good profit margin, then your business is a viable prospect. 

Start Up Costs 

If you are planning to bake at home, this will keep your start-up costs to a minimum, plus you will need to purchase all the necessary equipment that will enable you to start baking. As with any new venture, you are advised to create a detailed business plan, as this will help you to identify and overcome obstacles, and when that is finished, let a few business gurus take a critical look at the plan. 

You must also consider things like wastage, when calculating your profit margins, and you will need an aggressive marketing campaign to make people aware of your products. You could, for example, start out part time and keep your 9-5 job until you are sure you are making enough money to quit your day job, which is much safer than throwing everything into the project. 

One thing is for sure, you will need to design and build a website, from where people can order your products, plus you will need a delivery system. You should also offer personalised birthday cakes that are made to order, which would be very popular, plus gradually increase your cake menu items, based on customer feedback.

Bootstrap Business Blog Newest Posts From Mike Schiemer, Partners, & Blog Outreach Services