How to Start a Cake-Making Business

Birthdays, anniversaries and celebrations often feature cake as the main dessert. Basic sheet cakes, tiered cakes and miniature versions can steal the show with elaborate decorations and yummy goodness. Those individuals with a knack for baking delectable and beautiful cakes may find opening their own cake business a rewarding experience. Though certainly not a piece of cake, opening your own cake business can help you explore your passion while cooking up profits.

Step 1

Create a plan for your cake-making business. Provide a detailed overview of your business, lay out future plans and provide details related to the potential profitability of your cake-making business. Pinpoint your target market and decide on the types of service you will offer, such as wedding cakes and catering services. Include details related to equipment needs and financing requirements. Contact the U.S. Small Business Administration for additional help developing a business plan.

Step 2

Register your business. Develop a name for your cake-making business and determine how you wish to organize the company. Sole proprietorship, limited liability company and general partnership represent a few of the options for business organization. Contact your state’s secretary of state office to determine if the name is available. File the appropriate forms with your state’s secretary of state office to officially register the business. Apply for an Employee Identification Number from the Internal Revenue Service for tax purposes.

Step 3

Find a location for your cake-making enterprise. You can start a small start-up from your own home kitchen. This works well for part-time operations and those that focus on a niche market, such as wedding cakes. Speak with local restaurants and ask them about the cost associated with renting out kitchen space during nonbusiness hours, in lieu of working from the home or renting a formal retail space. Check out retail storefronts if your plans include a retail space for displays and walk-in purchases.

Step 4

Obtain the necessary permits and licenses. Check with your local health department to obtain a health board permit. Home-based cake businesses and retail-space cake businesses need to demonstrate cleanliness and meet all necessary requirements to obtain a health permit. Contact the Department of Taxation for your state. Ask about the requirements for sales tax payments and collection requirements.

Step 5

Seek out marketing and advertising opportunities for your cake-making business. Build relationships with those in similar fields and with those that could use your services. Network with wedding planners, event planners and caterers. Offer discounts for referrals and remember to reward those who recommend your services with similar recommendations and praise. Attend local and regional industry expos that feature food, wine or cake. Set up a booth to market your own business or use the time to network.

How to Start a Professional Decorating Business ) (Настя)

Start a professional decorating business to help homeowners and business professional create a personalized space for their home or office. Professional decorators work with a variety of people with different tastes and decorating goals. Although you do not have to be formally educated in design to start a decoration business, you should enjoy working with people, learning about the latest trends in decorating and have some business management knowledge. Building a client base through referrals and additional projects from existing clients is one way to maintain steady profits.

Step 1

Create a business plan to follow during each stage of business development. Describe the types of decorating services to provide clients, such as home or office decorating in the first section. List startup costs for supplies, computer equipment, rent, transportation and labor if hiring employees in the second section. Determine ways to market your business in the third section. List the roles and duties of management and employees in the fourth section.

Step 2

Apply for a business permit through the county clerk's office that oversees the county in which your decorating business is located or through the small business administration office in your area. Register your business with the secretary of state's office. Apply for an Employer Identification Number through the Internal Revenue Service. Use the EIN on all state and federal tax forms. Apply for a sales tax license through the department of revenue to accept sales tax from clients.

Step 3

Purchase business insurance from a licensed insurance provider. Business insurance such as general liability, worker's compensation, property, product and auto help cover the costs of lawsuits or settlements in the event of an accident, injury or damage to property.

Step 4

Lease commercial retail space or create a home office. Use this space to display photographs of previous decorating jobs, display sample materials and to meet with prospective clients. Contact a commercial real estate agent to find an appropriate space. If creating a home office, contact the local small business development or small business administration office to ask if a home permit is needed to run your business out of your home. Additional permits may be required to meet with clients in your home.

Step 5

Create a list of vendors to order materials and supplies from for decorating jobs. Visit home or professional decor trade shows to learn more about the types of decorating products on the market. Purchase computer equipment and software to track invoicing, client projects and employee earnings.

Step 6

Market your services by attending home and professional decor trade shows or local artisan events. Join local business owners associations, such as the Chamber of Commerce. List your services in online or print business directories. Ask for referrals from satisfied clients to build your business.

                                                                                                       ( МАРИНА С.)