While anyone can start a bakery business, not everyone can keep it alive. Many food-based businesses fold within one year of their start up. Here’s what you should not do to keep your business alive.
Choosing the Wrong Supplier
Your cupcake supplies, like cupcake cups and wrappers, should be purchased from the most affordable supplier. The best way to make a profit is to purchase in bulk so it would cheaper. Look for suppliers that can give you wholesale prices or even discounts for buying in bulk.
Going for the Big Cupcake Shop Spot
No matter how excited you might be to open a cupcake shop, try to limit your operation through a virtual office and website first. Renting a shop could be a serious drain on your resources especially if you’re still not making enough to make a significant profit. Try to keep your business virtual and focus on building consumer rapport.
Forgetting to Market
It’s not enough that the business is there, you have to make people come your way by marketing your products. Use social media, encourage word of mouth marketing, or even start by selling cupcakes to friends. One great way to get started is by asking a local diner to sell your cupcakes and leave a business card with it, so people will know exactly where to order their cupcakes.
Failing to Keep a Record Book
While you may enjoy the baking and selling portion, you should also keep track of what you’re spending and earning. Maintain a record book of your transactions to ensure that you’re pricing your products correctly to compensate for the supplies and the time and effort it took you to prepare your cupcakes. Knowing the production price of each cupcake lets you give a discount to favored clients.
In business, it’s normal to have bad days and good days. Only those who are willing to pick up after the bad day will find themselves making a success of it later in life.