Starting Cake Business from home

Akemi

Hi there i was wondering if i could get some advice from you guys
Im wanting to start a cake decorating business from home doing wedding cakes and the like, but im terriefied about doing anything that will cause problems with tax etc.
I currently work part time and get help from working tax and some help with my rent etc.
I dont want to give up working as its my safety net finacially, but i really feel my cakes will do well.
I have done many for friends and family, and a few for work collegues and so far the response had been overwhelming.
I have had to say no to many many wedding cakes and other such as i dont have the knowledge to start a proper business and worry i wont be protected should a bride be unhappy with her cake etc.
I have a small child and really want to get off all help from tax payers so i can be proud of myself.
Im totally self tought and i understand i will need a few food hygene certs and one or two other things but its the tax, etc side that im scared off.
Id really appreciate any help with my situation.
Also ive been asked by a lady who runs a surestart centre if i will do cakes for an event for local ladies but i really want ot get sorted with the business aspect first.
I really enjoy making cakes, its my passion.
Sorry for the rant
Sam

borders_dude

There have been threads on this before in the 'up your income' area of the board. It would be worth your time and effort to go to that thread and have a look or this forum has a search facility which you could also use.

paulwf

I second the thread on baking on the other boards.

Please contact Business Link or regional equivalent...BL run free courses on setting up your business and these take place in most areas and at a range of times so should fit around childcare. The assume you don't have any knowledge of running a business so don't be put off they are really friendly. Most areas have enterprise agencies or something similar (check with BL or do a Google search or look in the business pages of the local paper or contact the business department of the local council). Enterprise agencies can give one to one help in some cases and are worth contacting.

Food hygiene courses are usually run by local colleges and are around £60, I think there might be reductions for those on benefits but check with your local provider. You will need to call the council and register with environmental health, they will probably come and inspect your kitchen. They will try and work with you if there are any issues so don't worry about that but make sure your kitchen is suitable before you invest any money in the business.

I think the baking thread covers insurance, if not you should be able to get basic public liability insurance for not much. Having a backup plan and a small contingency fund is probably a good idea...a Plan B if something goes wrong like dropping a cake! M&S usually have various sizes of wedding cakes in stock for example, would they do as a substitute if the worst ever happened? Or is there a baker that can help you out?

Registering with HMRC and paying tax and NI is fairly straightforward...I'm not sure about your benefits but the benefits board should be able to help with that question.

Good luck with it...once you get up and running try and get some help with the marketing and build a website etc, that will help you to maintain your prices and make a reasonable profit Any questions on that side of things just post here.

laurajayne

I run a cake decorating business from home, it's a lot of work - mountains of paperwork, and occasionally you get to bake a cake

Firstly, you will need to register with your local Environmental Health; 28 days before you start trading. They usually come and inspect your kitchen, but what exactly is required varies by area. I'm lucky, I didn't have to do anything, but some of my 'cake mates' had to install double sinks and the like.

You will also need to get the 'Safer Food, Better Business for Caterers' from the FSA. It's free, and has a diary that you must fill in each time you bake/decorate.

Obviously you must register with HMRC as soon as you become a business - else get a fine.

Food Hygiene cert is a must have really, my local EHO runs courses that are cheaper than the local colleges, yours may too.

Insurance - public liability is a must - the British Sugarcraft Guild have a policy for members at £14.50 a year, will cover you as long as turnover isn't over £7,500 and you only do it part time.

And then there's the rest. In this day and age you need a website, that's where most of my orders come from, even if it's only a portfolio. Listings, advertising, networking, you really need to get your name out there. Vistaprint does some good deals for business cards to get you started.

There's unfortunately quite a lot of outlay - I've spent a fortune on equipment....usually the odd cutter for a specific cake, it's getting better now, but I spent most of what I made to begin with back into the business. And do not underestimate how much space you need - my 'stuff' is taking over the house!

You'll obviously need to work out costings, which takes an age, and I'm sure, like all of us, you'll underprice your first few cakes...it's a steep learning curve!

You'll need to think where you'll entertain clients - the most money is in weddings, obviously, and it's usual to offer a consultation and tasting.

I'm sure you're aware, the client always comes first. So I'm afraid if your little one is ill, then you still have to make the cake, even if it means an all nighter. You will loose your weekends, as that's when most of the cakes are due for. Have you thought about how you'll offer delivery, as again, this is usual when you book weddings.

Don't forget, lots of people will say your cakes are amazing, you should start a business.....and then wont pay your prices when you do so. Take a look at some local cake maker's sites, and be honest with yourself, am I at that standard yet? If not, more practise

Please don't get me wrong, it's a fantasitc thing to get into, I love what I do (albeit it's my part time occupation too, for now), but I wish sometimes someone had been honest with me....it's much much more than baking the cake! Best of Luck!