When to do what next?

pitkin2020

Yes and no, it would totally depend on your savings, other income etc. You would probably be best to start a new thread in the benefits section.

Savvy_Sue

mummytwinton wrote: »

one more question, if I take my VR package to give me the time to make a go of my business would i be able to claim JSA while I try to make some money from my business?

Not unless you are actively looking for a job, and would drop the self employment if you got one. Remember it is Job Seekers Allowance, not Unemployment (or Underemployment) Benefit these days.

Kim_Possible

I'm sure this thread gets questions like mine all the time, but here goes:
In this past year I have found i am particulary good at and enjoy baking. In particular cupcakes.
I regularly bake for family and work collegues, who suggest " You should start a business and charge". Over time I have realised flattering comments have become serious suggestions.
I am at a cross roads( more like a dead end) in my life, I graduated from uni 3 years ago, at the start of the recession, with a degree in Computer Science, of which I have done nothing with, I have been employed temporarily for 2.5 years doing admin. However during this time I have had time to develop some hobbies namely baking. I like to bake simple flavours with buttercream. I have been on one course to refine by decorating skills.
I have been considering how I would even setting up a viable bussiness.
I have a rough business idea.
Idea:Wedding cupcakes; keep it simple 3 types with buttercream.
Venue: I would need premises. (I live at parents house, so baking from home would not be viable) I feel this would be my biggest expense.
I do not think I would need a premises with a shop front, more of a unit.
Start up costs: venue rent, rates, electricity. Equipment, Ingredients and pacakaging.
Customer base:Couples getting married- why them? Sold in large quantities as apposed to half dozen to one customer, a dozen to another etc.
Capital: Savings which I could use as start up costs
How do I go about perusing this idea further?
Market Researching?
A business Plan?
If this idea is viable etc etc?
The costs incurred?
Advise welcome
Thanks

chalkie99

Right, I'll kick this off with a couple of thoughts off the top of my head -

Firstly, friends and family are usually very encouraging with this sort of thing but real-life reaction might be a little more judgemental.

Secondly, cup cakes are something that an awful lot of people think they can do and are trying. Whether their popularity will be maintained in the future or if they will go the same way as chocolate fountains and other fads is open to debate.

To start your research, Google wedding cup cakes and look at the competition you are up against. You will almost certainly need a decent website to act as a catalogue so budget for that.

I just had a quick look at one of the top results and you can order a sample online for £4. Why not order one and ask yourself, honestly, if you can match the quality and then cost it out properly for ingredients and time.

Premises - Not sure if a potential bride would want to go to a unit, it doesn't fit in with the wedding preparation "experience".

If you do get premises then there are all sorts of expenses such as rates, water rates, waste collection, insurance, service charges .......... etc, etc, to take into account.

Sorry if that all seems negative, just trying to put some perspective on the dream.

steve1980

Is this not exactly the same as someone else the other day?

On page 3

https://forums.moneysavingexpert.com/discussion/3369406

Kim_Possible

Chalkie99- thank you for your input. I certainly have a lot to think about. You raise some valid points, all of which I need to consider. The most valid point is that cupcakes could be a fad that will/ could die off.
Stevo1980- I had not seen that thread of a similar nature. I have read through it.
I think maybe I'm elusioned with doing something interesting and rewarding for a day to day job.
I think I my next move is to contact my local business advise centre.

pitkin2020

everyone and their dog are making cupcakes at the moment. I would seriously look at expanding your baking skills to other things aswell or you will just become another 1 trick pony left behind when the fad for cupcakes wears off. As your starting out a retail/industrial unit is going to be a big expense, retail more so. You will also need to equip it so expect to lose a couple of K in just getting all that set up.

If your market would be weddings, you don't really need a fancy shop for them to come into you can easily enough go and visit them but you have to take those costs into consideration also. There also lots of other places you can sell them if you need daily work, i.e plenty of business have coffee/cake runs, you could supply one of them or do it yourself, local sandwich shops etc.

Kim_Possible

Due to one of my major issues being premises, I was looking in my local area for places to hire that would have cooking/ baking facilities. I thought of a visitors centre more of a tea room that is owned by the council and tendered during the summer months apr to sept as a tea room, situated along a main walking route.
It got me thinking if they hired it during the "off season" Oct to March and would it be suitable to rent as a premises for baking.
Currently tendered out to different people each summer, however not very successful this season. I had thought of hiring it during the next peak season, selling baked goods, scones, sandwiches, ice creams and tea/ coffees.
If i were able to generate business from cupcakes then this venue could be another string to my bow, so to speak.

pitkin2020

hhmm not something I would do personally, as its temporary. If people start to use you and you then go and move whats to stop some one offering the same service hiring it after you picking up all your clients, after you have laid down all the ground work for them!

Two options I would say, deal with it at home and be mobile see that their is a market their for your services, if there is move onto either a retail or industrial unit and work it.

The other option would to be find a very low cost industrial unit and still be mobile getting out and selling via markets, other shops etc.

I see you live with parents still but why is it not a viable option to do from home and sell via markets to begin with, offer the service for weddings/receptions/christening etc go and visit the client with samples/prices and sell from the comfort of their own home?

Savvy_Sue

Kim_Possible wrote: »

The most valid point is that cupcakes could be a fad that will/ could die off.

That would be my concern, in your position. It seems to me that the cupcake 'thing' has already been running for a while. And limiting yourself to weddings might make sense, but might also be quite seasonal and possibly also very pressured on a weekly basis, as (I think) weekend weddings are still more popular than mid-week ones.

Kim_Possible wrote: »

Stevo1980- I had not seen that thread of a similar nature. I have read through it.

I will merge the two as they are quite similar.

Kim_Possible wrote: »

I think I my next move is to contact my local business advise centre.

Always a good plan.

pitkin2020 wrote: »

I see you live with parents still but why is it not a viable option to do from home and sell via markets to begin with, offer the service for weddings/receptions/christening etc go and visit the client with samples/prices and sell from the comfort of their own home?

The kitchen would need to be inspected by Environmental Health, I believe, and eg as a minimum there would need to be a separate handwashing sink installed. I could be wrong about this, but it could be quite a big 'commitment' of the family kitchen - it would always have to be very clean - so I can understand why the OP might discount this.

BTW, I think there are a lot of cake bakers on the Up Your Income board ... I see a whole thread on 'cash from baking' there.