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4 Types of Cake Decorating Business To Choose

A cake business can be an enjoyable and consistent source of income for someone who loves to bake and decorate. There are also plenty of avenues to explore, if you decide to open one. Also, there are four ways to start selling your baked goods and open your cake shop.

1. Franchising

This method is a good way to avoid the difficulties of building a brand of your cakes from the ground up. Many people take to franchising because the business is already established and proven in terms of profitability. The policies and system are already laid out for you to take over.

However, buying a franchise requires a considerable amount of money and experience in managing one. Furthermore, a franchise is not a guarantee to a successful cake business. The profitability of your cake business will still depend on many internal and external factors.

2. Buying an existing cake business

Another way for you to get into a cake business is to buy an existing one. This is a good idea if you have money to pay for an upfront investment. Furthermore, you should get ready to update or renovate some areas in the business to reflect your brand of cakes and service and this will require more investment in terms of money and time.

An advantage though is that an existing cake shop already has all the tools and equipment that you need and offers established loyal customer base in the area where it is in operation.

3. Opening a new cake business

Launching a new cake business such as shop or cupcakery with their own brand of colors and design is what most cake decorator’s dream of. There are many advantages to running a business that you built from the start; you know how to estimate expenses and are comfortable running usual tasks and you are able to maintain a high level of creativity with your own brand of cakes and baked goods.

However, opening a cake shop requires a big investment because you will have to buy a shop or rent, pay for utilities and employees salary and most importantly, invest in expensive equipment and building your store from scratch. Furthermore, like in the two previous types of cake business, you have to work a strict schedule and keep an inventory of baked goods for display.

4. Having a home based cake business

A home based cake business meanwhile allows you to bake at your own time and determine how many orders you would like to take. Also, you only have to take photos of your creations, if you do not own a cake display and make an online or a print catalog. You could also offer cake decorating videos and classes online in addition to your baked goods. It won’t require you to come up with a substantial initial investment to be able to operate and sell your products.

You also won’t need to rent nor hire many employees, since you will certainly be able to run your kitchen comfortably on your own. You will have less overhead costs than compared to working in a commercial location and will potentially allow you to take advantage of some tax benefits that apply to your home cake shop. All these factors will help you to be more profitable.

Understanding Bankruptcy for Business Owners

Bankruptcy isn’t always a “fun” issue to discuss or consider, especially when it comes to your business. However, if financial struggles plague your business, it’s crucial to address the situation as soon as possible. Failing to identify a solution could result in the eventual collapse of the organization, which is why a business bankruptcy must be considered. By allowing you to reorganize and rebuild your company, a business bankruptcy could be the solution for your struggling business model to start afresh. Meeting with a bankruptcy attorney will help you understand each option clearly and allow you to see whether or not a specific chapter is right for you.

Bankruptcy Options for Small Business Owners

Before meeting with a bankruptcy attorney, it’s important to have a basic understanding of the various business bankruptcy options available. Having general knowledge of the business bankruptcy selections will make your meeting with a bankruptcy attorney more productive. Options include:

1.Chapter 7. This business bankruptcy option is for those businesses that have no future or means to restructure their debt. This option is known as “liquidation” because the business’s assets will be sold to gather capital to repair creditors. While Chapter 7 is best suited for individuals and sole proprietors, limited liability companies and corporations can file for a Chapter 7 business bankruptcy as well.

2.Chapter 11. Unlike a Chapter 7 filing, Chapter 11 is for those businesses that have a plan for the future of their business and can continue operating with a reorganization of their debts and proper money management. Chapter 11 is one of the most complex of the filing options, so it’s vital to seek the counsel of a bankruptcy attorney if Chapter 11 is the option your business would like to pursue. However, only sole proprietorships, corporations, and partnerships can apply for a Chapter 11 business bankruptcy. It is likely that a court-appointed trustee will keep a discerning eye focused on the business and its operation during and after the bankruptcy filing.

3.Chapter 13. Similar to Chapter 11, a Chapter 13 business bankruptcy filing allows the organization to reorganize their debts. However, the business must meet Chapter 13′s eligibility requirements, something that a bankruptcy attorney can help you determine. This option is particularly popular for business owners whose personal assets are connected to their business, as Chapter 13 provides more protection for those major assets, such as a home, for example. Keep in mind that a bankruptcy attorney will also help you protect your valued assets.

4.Chapter 12. This option is specifically designed for “family farmers” or “family fisherman.” Under this business bankruptcy option, debt will be reorganized for a payment plan lasting 3 to 5 years.

Still unsure of which option is best for your business? Before meeting with a bankruptcy attorney, be sure to consider whether or not your business should be reorganized or liquidated. Answering this simple question quickly determines whether Chapter 7 is a feasible option. Also consider how much of the debt is secured and whether or not you could start over after the liquidation process. Disclosing your full situation to the bankruptcy attorney will allow him or her to provide the best guidance possible.