6 steps to start a cake business
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A few days ago we were talking about naming your cake business here on Knead to Dough. Today we are going to take your cake business dream a step further, closer to reality, as we go through the six steps you need to start a cake business. It couldn’t be simpler!
If you need a little extra motivation to make that final push, make sure you sign up for my FREE 5-day Cake Business Roadmap Challenge which starts in July! We’ll map out what your dream cake business looks like and go through actionable advice so you know how to get there. You don’t want to miss it!
1. Register your business
Hopefully after reading this post you’ve got your cake business name all worked out. Well done, it can be a pretty tricky step and an easy one to put off, meaning you also put off your cake business dreams in the process.
Next up you need to register your cake business and premises with your local authority and government. The individual requirements for this will vary from area to area and country to country, so visit their websites to make sure you tick all the boxes. We want to start off stress free!
2. Get kitchen approval
You will need to get your kitchen approved for commercial use (or wherever you will be doing your baking and decorating). This is usually done through your local authority and must be done well in advance of you selling your first cake. Again, the timescale and requirements for this vary from place to place so check with your own authorities.
Food hygiene training may also be required and is definitely worth doing so you know you’re running your cake business as safely as possible.
3. Choose your menu
Now we are into the fun steps! It’s a good idea to have a set list of flavours and the types of cake or bake you will be offering. Deciding on an initial menu when you start a cake business means you can begin with orders you are comfortable with, before adapting to include your new skills and cakes that are in high demand.
Consider what flavours are popular, whether your cake needs to be stackable, easy to carve, or last uncovered for a long time (such as a wedding cake) when deciding what types of cake to offer and what recipes to use.
For help choosing your flavours, I surveyed cake business owners and put together a list of the 5 bestselling cake flavours for you here.
4. Invest in equipment
You’ve probably got a good stash of baking stuff by now, but do you have everything you need to send out a high standard order? Tins in a range of sizes, plenty of mixing bowls, a decorating turntable, and cake packaging are all essential. If you can afford one, a mixer will save you a lot of time and effort, too.
The key is to only buy what you need, and then add to the collection with extra items when you are earning a profit and can afford to reinvest in your business.
5. Work out your overheads including insurance
Once you’ve opened the doors to your cake business, you’re going to have lots of people contacting you to ask you how much X, Y, or Z cake will cost.
When you prepare quotes, it will be a lot quicker and simpler for you if you already know your overheads. Think your energy and water costs for producing the cake, fuel costs for trips to the supermarket, packaging, and business insurance. If you can calculate an hourly rate, it’ll be easy to multiply up or down to fit a custom cake order.
Then add in the cost of ingredients and decorations, cost of your time, and cost of any equipment hired or purchased to complete the order.
6. Tell the world!
Hopefully when you named your cake business you checked the website domain and social media handles were available for it. Now is the time to create those accounts and tell the world you are in business! When you buy a domain name (your website address) you will need to buy hosting – the service that hosts your website domain on the internet. I use SiteGround for Knead to Dough because they are a cheaper option at a few dollars per month, they have an online chat support for any questions, and if you’re moving from a wordpress.com website like I was – they do it for you! No tech required 🙂
Share photos of your cake portfolio, testimonials from happy clients, and updates from your kitchen with any news or special offers to get started. Enlist the help of family and friends to share your page to start you off. When you’re ready, I have more in-depth posts on Twitter, Pinterest, Facebook and Instagram here and get your FREE copy of the Sweeten Up Your Social Media E-Guide!
Are you ready to start a cake business? Let me know in the comments below the steps you’re going to take. Commit and make the cake business you’ve been dreaming of a reality.
*Please note, I am not a financial or legal advisor and you agree that this is not financial or legal advice*