People love home-baked goodies. All it takes to satisfy that need is an oven, some recipes, and a way to let people know that you’re in business. Birthday cakes for children are especially popular; a home baker can customize and personalize them in countless ways to please the customer. Creating and selling wedding cakes can be very lucrative but require more time and equipment than cakes for other occasions. Nowadays people want to choose from more than chocolate, vanilla, or yellow cakes—the sky’s the limit!
The start-up cost for a cake-baking business is minimal. Some great recipes, baking pans, decorating supplies, utensils, and an oven are all that you need. You’ll also need to be aware of food preparation codes, and you may need to pay for inspection and permits. If you can’t easily learn to decorate cakes from a book or by trial-and-error, you may want to invest in an inexpensive cake decorating course. If you plan to deliver the cakes, you will need an appropriate vehicle.
The potential market is huge, especially since most working women and men don’t have time to bake, but still want homemade cakes. There are so many special occasions to celebrate, and most of them feature great cakes: graduations, birthdays, anniversaries, retirement parties, baby and wedding showers, weddings . . . the list is endless! A cake that can be made for as little as 60 cents can sell for as much as $9—a nice profit for your efforts! On the downside, it may take some practice to make beautiful cakes.
Approx. cost of start-up:$100 to $200Approx. potential earnings:$5,000 to $25,000
Typical fees: $10 to $1,000 per cake
Where to promote: Newspaper ads, neighborhood bulletins, brochures
Qualifications: Cake baking and decorating knowledge; knowledge of health regulations; possible food preparation permits; patience and good marketing skills
Things needed: Baking pans and utensils, decorating supplies, ingredients, oven
Required staff: None
Hidden costs: Possibly a second oven or other facilities as business grows; need vehicle if you deliver
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