Starting A Cake Decorating Business

What Is Involved In Running A Cake Decorating Business?

Cake decorators typically get up early, even before the sun comes up in the morning. Most of the day is spent baking cakes and decorating them. This includes designing and building cake towers, using sugar moldings, creating figures and shapes, and blending colors.

A normal workday is filled with typical designing, baking and decorating duties as well as the administrative duties necessary to run a business. While the majority of administrative duties are not required to be performed every day, they need to be done at least once during the week.

In addition, the owner of a cake decorating business is responsible for dealing with customers directly with customer complaints, advertising and other customer service duties. The owner must also insure that all sanitary rules and precautions are being followed to ensure that all codes for local and state laws are met.

If you have employees working for you, in addition to other tasks, must manage payroll, hire and fire, update benefits, set schedules and make sure everyone shows up to work on time.

The owner of a cake decorating business must also efficiently manage inventory making sure there is always enough to cover the incoming orders. Inventory shipments must be counted and put up after every delivery to ensure all items were received correctly.

Special Requirements:
A cake decorator must have adequate artistic talent in order to succeed in the business.

Equipment Necessary To Run A Cake Decorating Business:

Cake decorating equipment & supplies
Heavy-duty mixer
Cake pans
Icing bags
Couplers
Decorating tips
Cake boxes
Cake mixes
Non-stick spray
Shortening
Flavoring
Food coloring
A digital camera to photograph your finished products
A 3-ring binder to hold a portfolio of your cakes
A computer with Internet access
Business cards and a website
Delivery van or truck

The Cons Of Running A Cake Decorating Business:

Image of A Cake

Many fail to realize the amount of work that actually goes into a cake decorating business.
The majority of your customers' events will be held on weekends, taking up time that you may usually spend with your family and friends.
The special classes and equipment to enhance your business may be expensive.
Running a cake decorating business requires a great deal of self-discipline.

The Pros Of Running A Cake Decorating Business:

You are able to work on your own schedule at your own pace.
You can see customers by appointment only if you so choose.
The better skilled you are at delivering a creatively unique cake, the greater you chances of earning a substantial income.

Skills Necessary To Run A Cake Decorating Business:

Business skills
Basic math skills
Bakery experience
Cake decorating skills
Creativity

Licenses Necessary For Running A Cake Decorating Business:

You will need a business license and a permit from the local health department in your area. Check with your local authorities to determine any other licenses necessary to run a cake decorating business in your area.

Associations:

Retail Bakers of America (RBA)

Employees & Job Requirements

You may wish to hire an assistant who has an interest in baking and can help you with the administrative side of the business. The person you hire needs to be able to handle the telephones, provide basic assistance when required for a cooking project and schedule deliveries.

In addition, you may also want to hire a baker to make the cakes that you decorate if you chose not to do both on your own.

Approximate Minimum Start Up Cost

If you choose to run your business from home, there are a few rules to which you must adhere such as drainage, pest control, doors with direct outside access. A cake decorating business run out of a home can run you roughly $15,000 minimum.

If you plan to open a freestanding establishment, then you are looking at more like $50,000 to $100,000 for startup.

12 Steps to starting A Cake Decorating Business Business

Before You consider a Cake Decorating Business, see 16 Questions to Consider Before Starting a Business
1. Ensure A Cake Decorating Business is for You!

You have a choice as to what business you're going to start, so start one that's right for you. Getting into the right business can dramatically increase your success. Get into the wrong business and your success rate drops. Read Five Secrets to Getting into the Right Business for more information.

2. Understand How A Cake Decorating Business Operates

How can you run a Cake Decorating Business if you don't know much about the business? What if you run into an issue that you can't or won't deal with? Then what? You're in a business that you hate working in and that's a problem. See Understand How a Business Operates for more information.

3. Make Sure there is a Profitable Market for Your Business

What's the use of starting a Cake Decorating Business that is not profitable? You'll be putting all your effort in something that can't support itself or you. There are a variety of issues when it comes to setting the stage for profitability. See Tips for Identifying a Profitable Market.

4. Create a Business Plan For Your Cake Decorating Business

A business plan is a must for any size business because it helps you stay focused, see the big picture, and get funding. It's something that you create when you start your business and then update as your Cake Decorating Business evolves. Read our free online guide on How to Write a Business Plan

5. Set up your Business Team

Setting up your team includes finding the right employees and professionals that will help you run your Cake Decorating Business.

You don't need to employ everyone you work with, but you will need a team of people you can depend on, which could consist of a lawyer, accountant, banker, and consultant, as well as professionals in your industry. See Creating a Business Team for more on this subject.

6. Get a Small Business Loan if You Don't Have the Money to Start

If you don't have the money to get started, then you'll need the necessary financing or you won't have the opportunity to start your Cake Decorating Business. This can be done as a small business loan, a personal loan, or other small business financing options.

For more on financing your Cake Decorating Business see our guide on Financing Your Small Business

7. Legalize Your Cake Decorating Business

In order to run your Cake Decorating Business legally you'll need to abide by government rules and regulations on the state and local level.

You'll need to do your research, determine what type of business (sole proprietorship, corporation LLC, etc.) to register, create and register your business name, and register your Cake Decorating Business with state and local authorities.

To go through the business registration process, see Chapter 6: Making Your Business Legitimate, starting with 6 Easy Steps to a Good Business Name.

8. Get Equipment for Your Cake Decorating Business

In order to run your Cake Decorating Business successfully and efficiently you'll need to acquire the right type of equipment. How can you run an online business without a computer? You can't! This is an important issue. See Acquiring Equipment for more on this topic.

9. Insure Your Cake Decorating Business

Make sure you have the proper insurance for your Cake Decorating Business. Without the right coverage you could lose everything you've worked for. For tips on insuring your Cake Decorating Business, see our free online guide: Insuring Your Small Business.

10. Prepare To Accept Money

You'll need a way to accept money, you can't depend just on cash or checks. You'll need to accept plastic: Visa, MasterCard, and American Express. To do that you'll need to apply for a merchant account. See Setting Up a Merchant Account for more on this topic.

11. Set up Your Accounting System

Running a Cake Decorating Business requires you to collect taxes, and report your earnings. So it's best to set up an accounting system in before you start your Cake Decorating Business. See Setting Up Your Accounting System for more on this topic.

12. Acquire Customers for your Cake Decorating Business

In order to exist, every business needs customers. Getting customers is one thing you'll need to be good at. If you can master the tasks of getting customers, it's just like turning on a cash machine almost any time you want. See Acquiring Customers for more on this topic

See Also: Our Free Online Guide to Starting A Business

Cake Decorating Resources

Cake Decorating Blueprint

Cake Decorating Business

Cake Decorating Business Research:

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Cake Decorating Business Issues's:

Estimating Startup Costs - Find out if you're forgetting something

Business Location - Choosing A suitable one For Your Cake Decorating Business

Build or Buy A Business? - Buying an existing Cake Decorating Business

Business Builders For Your Cake Decorating Business:

Business cards for Your Cake Decorating Business

Business Plan for Your Cake Decorating Business

Business Insurance for Your Cake Decorating Business

Small Business Loans: Finance Your Cake Decorating Business

More Business Ideas:

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