# Starting a Business



## Lady_Husker (Aug 8, 2015)

So I've been toying around with the idea of starting a cupcake business out of my kitchen. My area doesn't have such a business and I really enjoy baking. However, I know almost nothing about starting a business. So for those of you on here who have started your own businesses, what tips/info/ideas/etc can you offer?


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## Rob Roy (Nov 6, 2013)

Money. Lots of it

Research. Lots of it

Patience. Lots of it

Prepare to despise baking

Then just go for it and don't stop until you're where you want to be. You will be slapped by so many roadblocks and speed bumps and will grow tired and doubtful... just keep going.


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## Urinal Cake (Oct 19, 2013)

I have started many businesses but theres so many factors, that I couldn't begin to write them out for you.
Off the top of my head:
Where will you be selling them?
How will people know your business exists?
Which is you apart from anybody else in this business?
What will be your cost to produce your product and what will you be selling them for?
Your market have the ability to afford your product?

I can come up with 50 more things for you to think about but typing is not of my better skills


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## Rob Roy (Nov 6, 2013)

Urinal Cake said:


> How will people know your business exists?


This is EVERYTHING


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## Prepared One (Nov 5, 2014)

Don't be afraid to fail. Many a business was started in the kitchen or garage.


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## tinkerhell (Oct 8, 2014)

Lady_Husker said:


> So I've been toying around with the idea of starting a cupcake business out of my kitchen. My area doesn't have such a business and I really enjoy baking. However, I know almost nothing about starting a business. So for those of you on here who have started your own businesses, what tips/info/ideas/etc can you offer?


stay realistic when you envision how your time will be spent. It won't always be a happy party making cupcakes. You will have to market yourself and your product. You will have to be a salesperson.


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## tinkerhell (Oct 8, 2014)

I suppose my advice wont work for a business that needs a commercial kitchen, but I was going to tell you not to move your business out of your house until you absolutely have to.


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## alterego (Jan 27, 2013)

Go to county seat.
Pay 11 dollars to register DBA license name
Got to bank with DBA license and open checking account in business name.

You are then officially in business.


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## Joe Smith (Aug 21, 2015)

Hello, 
Well first I would say that you don't necessarily need a lot of money, I started my business with no money. It's more of what you can do with your assets than the vast sums you have, besides if you had money why bother trying to start a small business.

Let's see- you live in Nebraska, so hopefully you don't have a hyper regulatory gov't like Florida. I have a small, emphasis on small, construction company. I have to have a business license from the state, but not for each separate county as in FLA. A test was required, books purchased to study from, and had to re-take a portion of the test. All of this had costs and scheduling that took several months. The state tests were all given in the same room, doesn't matter what your license or teaching endorsement was for, a rather disparate group. Contact the state license board and ask them.

Since you would like to sell food products there may very well be regulations regarding the preparation, storage, kitchen etc. I am in a parents group and we wanted to have a bake sale, but we would have to find a kitchen that has been inspected, by the health dept. I believe.

Insurance might be required, that's not too bad. I need to have a liability policy and got it through the same guy I get my car insurance from.

Don't be discouraged by the preceding text, all businesses have paperwork nonsense they have to get through. The most challenging part might be to get new customers. You might bring samples around to bake shops, etc, but they will want to pay absolute bottom price.

Since you know your college, I assume it's nearby, try selling to the college shops, snack shops, what ever they have there, they may look favorably on you since you are a grad. Become the "cupcake Lady", I know it sounds funny but you might know there are a number of stoners that would come running, with a bad case of the munchies, a rapid profit from a weekend night might help.

A kiosk, food truck, or something might work for you and wouldn't have the associated costs of a storefront. Talk to some people that do this for a living, find a internet forum where bakers, cooks gather to get more specific info. I wish I could help more, gather your info, and ask more questions. Good Luck.


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## Hemi45 (May 5, 2014)

Cover your ass - incorporate!!! Spend the couple hundred bucks to get a LLC. Selling anything *but ESPECIALLY food/drink* to the public exposes you to enormous risk of suit and liability. 

Naturally you'll need to do your research, develop a business plan, secure capital, etc. first ... BUT ... before you frost your first cupcake for the public, have that LLC.


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## PaulS (Mar 11, 2013)

Business... Find out what others in your area are charging for similar items and then make sure you charge at the upper range for your product.

To make sure you are charging enough calculate your time at the average hourly rate, the cost of supplies including electricity, water and gas and add 50% to all of it. If that is more than you are charging you need to charge more - a business is supposed to support you and not the other way around. Get your food handlers permit and license your business before you buy anything for it. That way you can deduct the business costs from your taxes.

People will gladly pay a fair price (or even more) as long as they get a quality product. Keep it simple! You start with the basics that everyone wants and then you can add to it in small amounts to see if there is a high enough demand for the novelties. Don't give away your profits - collect profits from your give aways.

Family and friends are usually the first to eat and the last to pay. This is a business treat it as such.


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## Panchito (Aug 24, 2015)

Lady_Husker said:


> So I've been toying around with the idea of starting a cupcake business out of my kitchen. My area doesn't have such a business and I really enjoy baking. However, I know almost nothing about starting a business. So for those of you on here who have started your own businesses, what tips/info/ideas/etc can you offer?


Have you ever seen that show. Two broke girls. Self employment is no peice of cake. No pun intended.


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## Mish (Nov 5, 2013)

I will need to taste the product to give you sound advice. 
I will PM you my address!


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## Lady_Husker (Aug 8, 2015)

Wow! So many helpful suggestions and encouragement  To add a little more information, I have done some research around town and I would have three competitors. Walmart obviously sells cupcakes but mine taste so much better! There is a bakery in town but they are more focused on big cakes and pies not cupcakes. In terms of direct competition from other individuals or companies that focus sales on cupcake, I have no competition. At some point, likely three years, I would like a store front in the town I'm closest to.

Some cupcakes I'm going to experimenting with this weekend are vanilla lemon, root beer float (really excited for this one), mint chocolate, and banana caramel topped with walnuts. I've been using facebook to give me a general idea if people in my area would be interested in my business and I'm researching how to write a business proposal.

Oh and Mish, my max delivery distance is 30 miles. You might need to think about re-locating if you want to taste my cupcakes


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## Mish (Nov 5, 2013)

Figure out the markets that you are trying to corner! Birthday parties? Baby showers? Engagement/Bridal showers? How do you advertise to get your name out there to those potential buyers? Are there any coffee shops that will house some of your products and a business card? Craft shows? 

Oh and what is your business name?


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## Camel923 (Aug 13, 2014)

Incorporate as soon as you can. Its easy and if you do it yourself inexpensive. Otherwise if some one sues all of your personel assets are at risk as well as future earnings. More tax benefits that way too. AS previously mentioned, know what licenses you must have and inspections.


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## Lady_Husker (Aug 8, 2015)

I would do birthday, baby shower, bridal, etc. cupcakes. I would sell my cupcakes to other local businesses (like coffee shops) if they were interested. This whole area is a bunch of smaller towns that talk talk talk talk. So I have that going for me. The people I've already talked too are really supportive of the idea for the area. Also, farmer's markets are big in this area.

I have several ideas for business names and haven't fully decided at this point. I only conceived of this idea about two weeks ago lol


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## Maine-Marine (Mar 7, 2014)

I ran a successful business for 7 years until the economy (and some bad vendor issues) killed me

I did research on my target market first and then focused on that...

There is a person on ebay that sells no bake cookies and it looks like she has sold a ton of them

go ahead and send a dozen over to me, I will sample them and give you some good write ups and advice


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## Mish (Nov 5, 2013)

Lady_Husker said:


> I would do birthday, baby shower, bridal, etc. cupcakes. I would sell my cupcakes to other local businesses (like coffee shops) if they were interested. This whole area is a bunch of smaller towns that talk talk talk talk. So I have that going for me. The people I've already talked too are really supportive of the idea for the area. Also, farmer's markets are big in this area.
> 
> I have several ideas for business names and haven't fully decided at this point. I only conceived of this idea about two weeks ago lol


You have a lot to think about. I wish you the best of luck on your need adventure!!
I'm sure there is a forum for small start up businesses. I would look one up and read a lot/ask a lot of questions. Being prepared could save you a lot of money in the long run.


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## Mish (Nov 5, 2013)

Maine-Marine said:


> I ran a successful business for 7 years until the economy (and some bad vendor issues) killed me
> 
> I did research on my target market first and then focused on that...
> 
> ...


Beat it buddy!! I already told her to send them to me!!


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## Lady_Husker (Aug 8, 2015)

Children children (Mish and MM), you must learn to share LOL Unfortunately homemade cupcakes don't ship well and you both are SOL...so I guess sharing is mute here.


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## MedicYeti (Sep 2, 2015)

Doing an LLC gives you some legal protection. Creating an incorporation gives you an extra layer of legal protection but you get taxed twice, one for the inc and again when you pay yourself. I'm over-simplifying the explanation, some more research will help. For you an LLC would probably be best. You would need insurance to cover you so that offers legal protection. 
Find a Business Plan template that explains everything and start working on the business plan. This seems silly to start writing a plan before having much info, but the plan asks questions you may not think to ask. It takes research and time, and when you answer question, 2 more come up. Look into the Small Bussiness Association and find out if they have a local office. 
Some questions to start. According to local laws, do you need to be zoned commercial? Do you need to have your kitchen inspected and approved for commercial cooking? Who is involved in the business, just you or are you going to have help? What equipment do you need? What supplies do you need? Where are they being stored? Where are cooked cupcakes being stored? Will you be cooking for events and catering or do you want to also open a retail store? Or is a retail store a business goal for the future? Who are your competitors? What are they doing to be successful? How will you be different? 
There is a retail cupcake store near me "Chocolate Face" that makes cupcakes that are twice the size of an average cupcake. The cupcakes are very good, they have some usual then some seasonal cupcakes so there is variety. They have boxes that the cupcake fits perfectly into protecting it very nicely; I often wonder what the little boxes cost. 
Good luck.


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## James m (Mar 11, 2014)

Some colleges that offer business courses have business incubation something something. Check out colleges business schools and tech schools. Didn't you attend an expensive school? Time for them to work for you.


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## 8301 (Nov 29, 2014)

If you are making food you will first need to take the Serve-Safe course. Takes 2 days and teaches food safety. It used to be optional but it is now required in most states if you intend to make food to sell to the public.

You can start very small just delivering your cupcakes ect. to local business to resell. Realize than most businesses make little or no money the 1st year or two as they become known and build a sales base. Packaging that allows you to sell in local stores can be tough to find unless you're willing to buy 5000 units ect. Use plain jane packaging and have the local print shop make you stickers that identify your product.

Advertise, print flyers or refrigerator magnets. Tie balloons to your door. Anything to get noticed.

If you already have or have a friend who has a good retail location use it mercilessly but at first you'll probably need to get out and hustle sales and keep pushing everywhere for sales, local offices, stores, schools, ect.

Starting a small business is a lot of work but if it is work you love then go for it. mental mind set is: don't "try" to have a bakery. Instead you "have" a bakery business and you will provide a great product and service. Push and keep pushing, it usually takes a while.


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## James m (Mar 11, 2014)

Give samples at stores that will sell for you. People may be more willing to buy them if they can taste them first.


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## Camel923 (Aug 13, 2014)

Find some one who successfully does something similar or exactly the same cupcake business. See what works for them, and what business model/tax structure they use. A local competitor may not be helpful but why reinvent the wheel? Sometimes local business women have organisations to help each other. If you want to be a millionaire do you ask a homeless guy or a millionaire how it is done? Best wishes in you endeavor and finding a mentor.


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## tinkerhell (Oct 8, 2014)

yep, find a would be competitor in another town or state, and offer to take them out to lunch.


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## Gunner's Mate (Aug 13, 2013)

I would recommend cookiies


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## PaulS (Mar 11, 2013)

Gunner's Mate said:


> I would recommend cookiies


Oatmeal-Chocolate chip- with walnuts.... real cookies! (I wonder, I might try some cupcakes with that recipe)

Back to sales; Boxes with a plastic window and print your own labels on your computer. You can buy sheet labels by the box and print your own personalized labels. That way you get to write off the computer and printer. It is also a good way to keep track of what sells and you profit/loss information. If you are going to retail then there is Point Of Sale software that will act as a cash register and keep your records at the same time (although it is easier to use a spreadsheet to do the math).


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## tinkerhell (Oct 8, 2014)

just my opinion, but have an exit strategy.

And, don't build a job for yourself. instead, build a business system that makes you money even if you decide to go home for a few days to spend time with a sick family member. Businesses that rely solely on the owner are best described as self employment, and just like employment your revenue stream comes to a halt whenever you come to a halt. not good to have that sort of plan.


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## Lady_Husker (Aug 8, 2015)

So I have a couple updates. First, I have found several ways how NOT to make a cupcake LOL. Second, I have posted on a facebook page in my area asking how many people would be interested in a gourmet cupcake shop and the response was overwhelming. There is definitely a niche in my community for my business. And third, I have been speaking with a local woman who also would like to start a cupcake business and has the financial background to get it done. I'm feeling pretty confident that I would be able to have a cupcake business at some point in the future.


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## Prepadoodle (May 28, 2013)

Develop a business plan, then go to your local SBA office. See what help they will offer.

Also look into SCORE, the Service Corp of Retired Executives. They might be willing to assign you a mentor who has decades of business experience... free. Woman owned startups are eligible for a lot of grants, tax breaks, and so on. Take advantage of this and good luck.


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## dkiieas (May 5, 2021)

(spam)


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## inceptor (Nov 19, 2012)

dkiieas said:


> Entrepreneurship is an idea that appeals to many, but figuring out how to start a business can sometimes be so overwhelming it scares people away. What should you sell? Who should you sell to? How will you get customers?


And with the lock down they seem to be focusing on small businesses. It's not looking great for the future.

Yet, if thing do go to hell in a hand basket, this may be a way to survive. Barter. You can trade services for items you need. If you have any skills, hone them. If you need tools or equipment to use those skills, now would be the best time to acquire them.


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## Folklore (Apr 6, 2021)

dkiieas said:


> What should you sell? Who should you sell to? How will you get customers?


I know how to do it, if you do not take into account the bureaucratic side. Officials and bureaucracy kills me.


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## Megamom134 (Jan 30, 2021)

Your kitchen will need to be inspected and then you could do what one lady in town here does, she works out of her kitchen making amazing cakes but several of the local brewery/eateries have her cakes as deserts you can buy. You could try those type of places and they routinely don't do much in the desert, think wood fired pizza etc. Good luck.


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## The Tourist (Jun 9, 2016)

I started a home business by sharpening knives. It was a matter of "had to." Even the guys who claimed to be "professional sharpeners" did some of the most downright atrocious work I have ever seen.

I accidently got into the business. I bought a knife, and put a perfectly uniform edge on both sides of my new toy. As I pulled up articles on places like a forum, I found that polishing edges not only made the item "pretty," but sharper as well.

I never wanted to make this a business, but guys are very particular about their knife edges. I even get work from guys who drop and chip a knife--and pay for it, too!


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## bigwheel (Sep 22, 2014)

Meet a nice lady a few years back who runs an active catering business from her home kitchen. She says advertise only by word of mouth or business cards to keep the health goons away. Selling only one product is usually not a good idea if making money is the object. Old pal had a concession trailer at a big flea market type place. He sold everything. Turkey legs..bbq..funnel cake..cotton candy..drinks etc. One of kin sold only roasted corn and didnt make near as much money.


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## [email protected] (Jan 27, 2020)

Lady_Husker said:


> So I have a couple updates. First, I have found several ways how NOT to make a cupcake LOL. Second, I have posted on a facebook page in my area asking how many people would be interested in a gourmet cupcake shop and the response was overwhelming. There is definitely a niche in my community for my business. And third, I have been speaking with a local woman who also would like to start a cupcake business and has the financial background to get it done. I'm feeling pretty confident that I would be able to have a cupcake business at some point in the future.


Be VERY careful if taking on a partner in any business. You will have to give up more then part of the profits, every idea and promotion will need to be discussed with someone else. I started my auto detailing business part time 10 years ago and used my ft job and income from the details to open a shop after 1 year and haven't looked back since. It's hard and very draining at times but it works for me. DO NOT open a business just because there is a niche market, do it because you are passionate about it. As much as you read or even hear will never fully prepare you for the ups and downs of owning your own business. Its thrilling and scary in the same breath. 
Never underestimate starting small, develop your customer base and then launching full scale. 
There are lots of ways to market your goods. Besides fb and craigslist there is NextDoor. com which helped my business grow more then any paid service could. Try setting up at local craft fairs (they usually allow small food vendors). Packaging is important too. ULine has great food packaging items. 
Even if there is no competition you need to create your brand because I promise if someone sees you becoming successful they will jump in your market!
Dont forget to try different unusual flavors - Think outside the box (Oreo Cupcake?).
Wishing you much success.
Joe


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