Hello, My name is Cheryl and I' am Sixteen years old. I' am wanting to start a business dealing with cakes, cookies and, dougnuts for the working people. I happen to live in a small town were nothing really happens and there is this building at the end of my street that can never really hold a business there because nobody really goes down there. I just want to know if it would be a great ideal for me to start a cake business down there?? If I really advertised my business would I get any business?? Please give me Advice as what to do and were to go for some Grants and other financial help
Thank you
Cheryl

Hi there,

This is a post from the marketing mix forum that I did. Your situation is a little different because your business isn't established yet, but the others have given you good advice with that. I just thought this might be a good fit for what you'd like to do. Let me know what you think:

I found some notes I had written for another baker. These links will also apply very well to you in your business. Have a look:

The first thing I think you should do is listen to this great CD I found for you. It's called Buffy and the Baker - you can probably buy it from Dan Kennedy at www.dankennedyrocks.com - an excellent interview with a guy who sells baked goods and has done very well improving his profits using untraditional marketing.

Have you tried The Nutman approach? That has built them a very sizable business in Calgary.

Could you not give away some coupons to the office managers in the towers or downtown businesses nearby?

Have a look at these articles - while it is selling juice drinks - the
application is the same.

http://www.makepeacetotalpackage.com/troy-white/turn-your-small-business-into-a-state-of-the-art-new-customer-generating-machine.html

others...

http://www.makepeacetotalpackage.com/troy-white/small-business-growth-strategies-your-marketing-blueprint-for-success-in-2007.html

http://www.makepeacetotalpackage.com/troy-white/small-business-growth-strategies-for-entrepreneurs-who-need-quick-results-from-a-tight-budget.html

Let me know if any of this helps.
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Hi Cheryl,

What you have in your mind is a great idea!

There is nothing more rewarding than working for yourself, but know up front, it's not an easy road.

The first thought that came to my mind is that you need a commercial kitchen. In other words, where are you going to bake your cakes and assorted goodies?

The second thought is in reference to the empty building, that if you do it right, you won't have to worry about the fact that "nobody really goes down there", because, as long as they have a place to park, if that's where "the best (insert name of baked goodies here) is sold", they'll come. Unfortunately, letting everyone know that you're there is the tricky and or expensive part. Don't worry about the building initially. Since it's empty anyway, chances are it won't be so expensive, and as such, it could be the ideal place for you to begin.

Location may be everything but if it's cheap enough to make your business worthwhile the location doesn't necessarily mean death, it just means you have more logistics to deal with.

We have a "bad location" as far as business real estate goes. We're in a small town, on the main street, yes, but we don't really get street traffic like they do in the big metropolis 45 minutes down the highway. Instead, we have to do a lot of retail marketing to sell our products, so, really, we're often not in our shoppe.

To begin with you should put together a concrete idea of what you need to start your business. Put together some samples, figure out what it would cost you to make each cake or batch of cookies, etc. And what you could sell them for. Bear in mind that given your location, you'd probably be selling specialty cakes and dozens of cookies, because you wouldn't have the walk in crowd. Also, don't forget to add in a percentage (10%?) for waste and spillage, you will have accidents.

Then find out what it would cost to rent, then renovate the building to suit what you want to do. (You can do this piecemeal, as you make more money.

Add your salary into the calculation. There is nothing worse than paying everyone else's bills and at the end of the month discovering you don't have enough money to give yourself a paycheque.

That will give you a very basic idea what it will cost to put your business together.

The next step is to create a business plan and do some test marketing.

You can find help doing your business plan in the https://www.businessownersideacafe.com/business/index.php section of Idea Cafe.

Then if you timed it right, take some of your samples down to the local high traffic area and give them away, asking people for feedback. Ask them if they would purchase cakes or cookies, when they would do so, ask them about the location you're thinking of using, etc.

btw, in the event that your market data doesn't pan out, it doesn't mean it's not a good idea, it just means that you'll have to go further afield perhaps to find your customers. (Mail order?)

Once you have all of that information in your hands, go to City Hall, business registrations clerk and they will help you figure out all of the licenses and registrations that you need to do this business and how much they will cost.

What you are going to discover is that, short of borrowing money from family members, nobody, grantwise is going to simply loan you all of the money. You may find that you can qualify for $10,000 from one group, if you are a black woman, for example, but you will need to meet certain criteria. Other groups, may require that you have at least twice the amount you request, already invested in your business.

I know this isn't anywhere near all of the information you could use, others will add to it or suggest variations on my theme, but I wish you good luck with it.

Oh and take a final piece of advice to heart... if you think you are a great baker and you really want to do this for a living, don't let anyone stop you.

T

Tina Brooks, VP Marketing
Brooks Pepperfire Foods, Inc.
Makers of Peppermaster Hot Sauces
http://www.peppermaster.com

Eat more peppers!

If you live in a small town where everyone knows everybody and you know the local restaurant owners or better yet have access to a kitchen in your local church you will beat a major obstacle in starting your business. It is rare that you find you can start the business out of your house because of health code regulations but go ahead and check with your health department they may say it is ok. At 16 years old I would not get to wrapped up in a business plan it will burn you out at your age because there often many complex concepts that go into a business plan you are not familiar with but I would say if you know somebody that owns a business set down and talk to them on the costs. I work in the commercial side of the foodservice industry and am quite familiar with what you want to do. Keep it simple at this stage. Realize you tecnically need a business license to start which is usually a couple hundred dollars, you have quarterly taxes to consider, basic small wares equipment (pans, spatulas, bowls,etc.), ingredients, your time and effort, and your rent, electric, and gas. Cut a deal with your local church to use there kitchen that is the best most cost effective thing to do. Don't forget you will need marketing pieces and advertising. Many of which you can create on your computer. People may ask for samples. You can start buying your ingredients at the store but down the road as you become successful you can buy from commercial distributors which will cut your product costs. I see many foodservice operations in the first 12 months fail but you are going after a very simple model. The most important thing of all is to concentrate on your school work when in school and work your business around your schedule. Always remember you have your entire life to work and once you are out of high school or college those days are gone. Enjoy your younger years now. It is nice to chase money but when all is said in done it is more important the people you shared your life with and have helped be successful. Give the business a shot just don't get over whelmed in the idea of a business plan. Have a measurable plan but focus yourself on being with your friends, enjoying your free time, and getting into college if that is what you want to do after high school.

Equiprep,

I doubt the 16 year old baker requires a fully complicated business plan such as my incorporated business requires, but she most definitely requires a business plan.

Without it, she is guaranteed to join the ranks of those food service operations you describe that fail within their first 12 months.

One point I hadn't considered is that it is possible that this business idea of our baker's is eligible for school credit. She should definitely inquire about that from her principal.

T

Tina Brooks, VP Marketing
Brooks Pepperfire Foods, Inc.
Makers of Peppermaster Hot Sauces
http://www.peppermaster.com

Eat more peppers!