Home cake business

AHewlett

Forgot to mention that this will not be a cake decorating place, just homemade cakes.

Planning permission is not needed as according to the council, I won't be building anything. Landlord has already been informed and permission granted. I don't drive and people will be collecting until I can drive.

I only mentioned a bank account because I knew it would be easier for me because of sending in tax returns and what not.

earthstorm

hayley11 wrote: »

Opening business bank account, personally I wouldn't unless the amount you're making is worth the cost.

The banks wont see it this way, if they find you are using a personal bank account for business activity then they can and most likely close that account as you have breached the terms of the account.

Most banks will give start up business accounts with 12 /24 months free banking

molerat

AHewlett wrote: »

Forgot to mention that this will not be a cake decorating place, just homemade cakes.

Planning permission is not needed as according to the council, I won't be building anything. Landlord has already been informed and permission granted. I don't drive and people will be collecting until I can drive.

I only mentioned a bank account because I knew it would be easier for me because of sending in tax returns and what not.

What exactly does that mean, customers collecting from your house ? If so how many and how often as this could cause you insurance and planning problems as well as neighbour complaints.

earthstorm

AHewlett wrote: »

Forgot to mention that this will not be a cake decorating place, just homemade cakes.

Planning permission is not needed as according to the council, I won't be building anything. Landlord has already been informed and permission granted. I don't drive and people will be collecting until I can drive.

I only mentioned a bank account because I knew it would be easier for me because of sending in tax returns and what not.

As customers will be collected from you at home, then i think this will require council planning permission. also

- Public liability insurance (Not yet done but quote for £6 a month. Needed for markets/fairs)

are you planning to place a market stall and all your stock on a bicycle as you will need a vehicle and be able to drive to trade and markets/fairs.

paddyrg

Look at alternative sales channels - local businesses servicing the office birthday cake market, Friday cupcake deliveries, sale or return in shops. Always always always keep samples of fresh baked cake and business cards and leaflets with you wherever you go. Maybe make special trial/sample packs with cubes of 4 different mixtures (rich fruit, jam sponge, carrot, house speciality) which you can pack nicely and leave with prospective clients?

It's a busy sector, so thinking of new sales channels will get you areas of the competition!

hayley11

paddyrg wrote: »

Look at alternative sales channels - local businesses servicing the office birthday cake market, Friday cupcake deliveries, sale or return in shops. Always always always keep samples of fresh baked cake and business cards and leaflets with you wherever you go. Maybe make special trial/sample packs with cubes of 4 different mixtures (rich fruit, jam sponge, carrot, house speciality) which you can pack nicely and leave with prospective clients?

It's a busy sector, so thinking of new sales channels will get you areas of the competition!

This wouldn't work, it would end up costing you a fortune in ingredients and time and no business can afford to give samples away like that. Save your samples for occassions where the chances of getting a sale are higher, like events, fairs. Or ring up a local cafe, ask them if they bake their own cakes or buy them in, if they buy them in, offer to take some samples and price list round and see if they're interested in stocking yours.

Business cards yes, with a link to your website which should have a range of decent photographs, information on you, where you cover and your price.

Also OP, with regards to having people come to your house to collect cakes, this does impact your home insurance so you will need to inform them. If you think you're going to be having a lot of people drop round, then maybe mention it to your neighbours but my next door neighbour has people coming and going most days but that's just because she's sociable and seems to have a lot of friends/family, that's nobody else's business and it wouldn't occur to me to think it was my business, unless they were being noisy or something.

RE: the bank account, I think 70% of my money is cash, which is then used to buy supplies, ingredients (obviously I keep a log of all cash/orders and give customers receipts etc) and i'd say another 20% is through PayPal, very little actually goes into my bank. I don't see any benefits to a business bank account so I won't be getting one.

earthstorm

hayley11 wrote: »

I don't see any benefits to a business bank account so I won't be getting one.

until you goto trade suppliers who request you show you are a business with a business bank account. you will still need to bank cash and banks come down hard on businesses that use personal accounts for business activities.

AHewlett

Concerning people coming to the property, I live in a flat. However, they won't be coming to the door because my address is awkward and I'll be waiting outside for them. As for neighbours being bugged, everyone in my block has been informed as well as my social landlord who has given me permission.

And for me getting to and from fairs, most of these fairs are either every few months or once a month depending. To get there, my boyfriend will use his car. I don't know if I have to cover his car with insurance seeing as he already has insurance.

I've tried with a couple of cafes if they would be interested in my cakes. I took a couple of samples round but never heard back.

earthstorm

AHewlett wrote: »

Concerning people coming to the property, I live in a flat. However, they won't be coming to the door because my address is awkward and I'll be waiting outside for them. As for neighbours being bugged, everyone in my block has been informed as well as my social landlord who has given me permission.

by you will have more than normal coming to your residential street/block of flats, so permission from local authority may be needed regardless if your landlord has given your permission. also household insurance would not cover you if for instance you a re making cakemix in a mixer and the mixer catches fire and causes damage, as you are using this for business purposed your home insurance will not pay out.

earthstorm

AHewlett wrote: »

I've tried with a couple of cafes if they would be interested in my cakes. I took a couple of samples round but never heard back.

Maybe they are waiting for you to follow up with them or they were not good sellers, so they wont be wanting anymore.

you wont know until you follow up