If you have mastered the art of making good cakes, you may be thinking about starting your own business. Fortunately, the market for good cakes can be just what your local area may need. However, before getting started, it is important for all aspiring business owners to know that one of the essential keys to starting a successful cake bakery is in the planning. In fact, with adequate planning, the owner can start a very profitable venture. Therefore, for those of you who are interested in baking cakes as a business, here’s are some of the basic guidelines.
1 . Research Your Local Area for Marketability and Demand
Even though starting a bakery may be a good ideal for anyone who has the special skill sets, there are numerous factors that must be considered in advance. If the baker expects to be successful in their ventures, they must have consumers who will be willing to buy the cakes that will be made at a price that they can afford. In some cases, the market for good cakes may be wide open if there is no bakery in the local or surrounding area that they are considering. Meaning this may be a good ideal for the baker. On the other hand, the new cake baker may find that there are several bakeries in a particular locale that has the areas all wrapped up and there is no real room for any more competitors. Whatever the case or situation, this is research that must be done well in advance to see if there is a high enough demand for the products that they will be offering.
2 .Determine If its an Independent Venture or a Franchise
Fortunately, there is more than one way to start a new business. Meaning people who bake the best cakes can decide which one will fit or suit their needs. Franchise or an independent venture are two of the more of the more common options or alternatives. So, the choice is normally based on what the new owner foresees as their new role and how much money that it will cost them to get started. For instance, if the baker is expecting to sell and promote their own specialty cakes based on their own recipes, the best choice is normally starting an independent venture that will allow them to do their own thing. Either wise, the new baker must be willing to duplicate recipes of the franchise so that they can make their fair share of the profits in their own location.
3. Identify Funding Needs
Starting a profitable business does not always come cheap or without certain embedded expenses. Unlike starting a business online, there are expenses that will need to be funded. From buying flour and other ingredients in bulk orders to purchasing business equipment for the bakery, these expenses can easily add up to several thousand of dollars at a time and more based on the venture. Therefore, the new baker must make sure that they have identified all of the initial start-up cost and the amounts going forward to ensure that they have the financing for their new business. In some cases, the initial start of this type of business may begin in the home. When this is the situation, the expenses may still be costly, but can often be kept to a minimum. Regardless to the decision that is made, the option selected will be based on the individual, their personal preferences and the cost associated with the start-up.
4 . Write Your Business Plan
After the type of business has been selected and other related decisions are made, the baker can begin creating their business plan. This plan will consist of quite a few essential factors including outlining what the business will be located (in the home or in an offsite facility), what type of business venture is expected (franchise or independent venture), identifying the financing needed and a wide variety of other factors that will describe the business. More importantly, this business plan can also be used to solicit funds from interested in investors. Specifically, those people who have been encouraging the baker to sell their cakes to others outside of their circle of friends and family members.