Cake Business Guide

How To
Start a
Cake
Business
howtostartacakebusiness.com
Index
Cakes and More Page 3

Step 1 Define your concept Page 4
Step 2 Find Great Location Page 6
Step 3 Create your Brand Page 9
Step 4 Design your Menu Page 11
Step 5 Cake Equiptment Page 13
Step 6 Ingredients and Supplies Page 22
Step 7 Hire and Train Employees Page 24
Step 8 Business Permit Page 26
Step 9 How to do marketing Page 29
Step 10 How much you can earn Page 32
Step 10 The Decision Page 38
Cakes & More

Have you always had a passion about cake?
Very often I meet people that are deeply passionate

about cakes and share that they sell their cakes as a
sideline. While working on a steady job and their cakes
looks absolutely stunning.
Cakes and pastries is something close to heart. It is

very hard to describe this feeling, but when you see
people cooking with love that contains something
magical. We all know the common saying that love
goes through the stomach. Well, when you cook with
passion you sprinkle a bit of the magical ingredient
called "love" onto your food. And everyone can taste it.
Before starting from home was not really accepted.

Having a shop with big investment was the start. Now
starting from home is the standard as there is no other
option. If you have passion for cakes you already have
that magical ingredients.
This guide has been designed to help you start your

passion and transform your sideline into your main
source of income. Because here is the thing:
"If you love what you do, the work does not like work".
Let's start!
Page 3
Step 1
Define Your
Concept
Page 4
Step 1: Define your cake business concept
So you want to start a cake business. So you need a

concept, a concept is a business idea though out.
It is now time to define that store so you can see the

shop in your mind. Here are a few questions you must
be able to answer.
1. Are you a take out cake store or can customer sit
and enjoy the a slice of pie in your shop?
2. If it is a shop with chairs, how many seat will be
available?
3. Will your store be a expensive type of store and will
you offer any drinks as well?
4. How many flavours will you have?
5. Will you be homebased and make them by order?
6. What is your signature cake? (a cake that is your
specialty cake if people ask for an unique cake)
Define your cake shop and give it shape in your mind.
Page 5
Step 2: Find
a great
location
Page 6
Step 2: Find a great location

The next and most important step in the business is
called location. Very commonly people say the 3 most
important things of a business is Location, Location
and Location! Yes, they repeat it three times because a
business location can make or break you.
So what would be a great location for your cheesecake

business? Here are some of the best locations to
consider.
Church
Being located nearby a church is fantastic. The amount
of church goers is huge and many people usually
spend time around the church before, during and after
the mass. Especially Sundays will become very
important for you.
Shopping Mall
The shopping malls is a paradise and dream for most.
Starting in a mall is one of the best places with the
highest amount of customers. Being in a SM, Robinsons
or Ayala mall is wonderful. Of course consider the cost
of rental will be high.
Page 7
Subdivisions and Condominiums

Locations like a subdivision and condominiums is a
great place where many people live together. Most of
the people who live there are young professionals or
families. They tend to have higher income and willing
to spend money on a delicious cheesecake.
Office Buildings
Being close to large office buildings is wonderful as
many office workers have a higher salary and usually
are very busy but tend to buy cakes to celebrate a
special moment. This is a huge market as these
customers tend to also buy paper plates and more.
Busy Streets
High foot traffic areas and busy locations are also a
great place to be. Look where Red Ribbons and
Goldilocks is located. They give a good indication what
is a good place be as well.
So now you have some ideas of what is considered a

great location. And since location is the most
important factor for your business you need to really
think carefully where you will start your business.
Before you continue on the next step start to select

your location. And if you are not sure what would be
suitable for you, you need to get an idea. Look where
Red Ribbon and Goldielocks are located. That will give
you a good indicator of what might be good for you.
Page 8
Step 3
Create Your
Brand
Page 9
Step 3: Create your brand
Your branding will depend on your location. You are

expected to have an idea where your cheesecake
business will be. Now you have to look for a branding
that matches with the location.
The design of your cake store will determine who you

will focus on. Looking expensive means you will be
attracting high end customers. Are you offering more
normal prized products, make your store match the
design. Red Ribbon and Goldilocks have a very
welcoming ambiance and design suitable for mass
market.
Go and research in your location who is your

competitor and how do they present their cake
business and products. What you need to do is to
ensure your business is different from theirs. A simple
question that a customer might ask you.
"Why should I buy from you instead of the competitor?"
You must have a good answer or else they will go to

your competitors. The answer you should give is
anything that makes you unique. For example, you
offer real bits of fruits, made with topnotch products.
Think carefully what to you will say. It will impact if a
customer will buy from you.
Page 10
Step 4
Design Your
Menu
Page 11
Step 4: Design Your Menu

The products you offer in your cheesecake business
goes hand-in-hand with your brand identity. This
means your brand identity and design must match with
your customer base and also match with your type of
cheesecake you offer.
Important parts of your menu should be, it must be

easy to read and easy to understand within seconds.
The best is to use large pictures of the product with
clear pricing and product name. Having this will help
your to easy spot and make a quick decision.
Also the branding color of your business must match

with menu. Make sure you have high quality pictures of
the cakes you offer. To sell a cake you do not need
many words. You need great looking pictures.
People buy cakes with their eyes. The nicest cake

design well presented will be the most eye-catching
and that sells. The eyes will be buying the product so
nice picture of cakes is key to selling. This means your
menu must be picture perfect or "instagram-able"!
Page 12
Step 5
Cake
Equipment
Page 13
Step 5: Invest in the right equipment
Having the right equipment is essential for your cake

business. Not only will it keep the quality consistent
but also speeds up the process. Since time is money,
this step is essential. So which equipment do you need
for your cake business?
1. Gas Stove or electric induction heater to cooking.

2. Refrigerator to chill all cakes.
3. Mixer to mix ingredients and creams.
4. Blender to puree chunks of fruits
5. A nine inch cake shaper
6. Mixing bowl
7. Spatula
8. Measuring jug
9. Measuring spoons
Page 14
If you start out you do not need to have all the

machines as mentioned here. The key is to start and as
you grow you can start to add to adjust what you are
using to something better. Most likely you will have
many of these items or are very familiar with them.
Page 15
Hand Mixer
Page 16
Mixing Bowl
Page 2
Measuring Jug
Page 18
Measuring Spoons
Page 19
Blender (Optional)
Page 20
Spatula
Page 21
Step 6
Ingredients
and
Supplies
Page 22
Step 6: Ingredients and Supplies
The next step is the find great suppliers to be able to

give consistent quality. We added a few suppliers you
can start with in our other book "Cake Suppliers List".
Once you start, your customers will keep on expecting
the same or better quality. So you need to make sure
you find a great supplier that can deliver quick and
consistently. It could be you need more than one
supplier of all the type of products.
Things you will be ordering are, cream cheese, sugar,

crushed graham crumbles, all purpose cream and
other type items such cheesecake boxes, baking paper
and more.
Page 23
Step 7
Hire and
Train
Employees
Page 24
Step 7: Hire and Train Employees
Once you have everything you need to start to hire and

train employees to be great. Your customers expect
great service and high quality of service. You need to
train your employees to be great in making and
designing cakes and serve your customers fast.
They need to know what is in the cakes if people have

specific questions and know how to operate the
machine or use equipment such as blender and more.
They need to know how to greet a customer and help

them in a friendly and professional manner. As a
business owner you need to motivate them and set
high standards and reward your employees when they
preform at their best with perks, bonuses and more.
Page 25
Step 8
Business
Permits
Page 26
Step 8: Obtain Business Permits and Licenses
No business can run without the proper documents and

permits. Every business must have it and this also goes
for you.
Many inspections, licenses and permits take several

weeks, and sometimes even months to be approved.
Make sure you have all the necessary document as
soon as possible so you are ready to start and serve
your customers and make money. Check with your
local municipality for the full list of requirements for a
cake (food) business as things might be different.
Page 27
Permits and Application Procedures:
DTI
Requirements: 1 Valid ID (SSS ID, GSIS, Voter’s ID, PRC license, DL,
Passport)
Application Form
Registration Fee Per Territorial Scheme
Barangay Permit
Where to get it: Barangay Hall
Requirements: Registration certificate from DTI and valid ID. You should
also have fire and safety and electrical inspection certificates and
presented Lease of Contract of the Site.
Fee: ₱ 1,500 (may vary for each municipality or city)
Mayor’s Permit (also known as business permit)

Where to get it: Municipal or City Hall in the place where you will setup
your business.
Requirements: Barangay Clearance, Registration Certificate from DTI or
SEC, Valid IDs and location map/sketch of your place of business. You will
also need to secure a community tax certificate.
Tax Registration Number (or TIN)

Where to get it: Bureau of Internal Revenue (BIR)
Requirements: Accomplished BIR forms 1901 or business, a copy of your
mayor’s permit or municipal license, registration certificate form from DTI
or SEC • Fee: ₱ 500 plus 1% of subscribed capital for the documentary
stamp
Page 28
Step 9
How to do
Marketing
Page 29
Step 9: How To Market Your New Business
Currently the cake market is starting to grow and is

growing faster and faster. It is a strong growing trend
and starting now is one of the best moments in time.
There is no better time than promoting right now your
new cake business. If you do not have a website it is
highly recommended to start having one.
Be sure you include the products of your menu on your

site and add the prices, store address, opening and
closing hours and contact information. If customers
want to have your products they should be able find
you fast.
Make sure you are active on social media and have a

Facebook Page where customers can post their own
photos and review your cheesecake business. All for
extra marketing and attention. Be active everywhere
such as Facebook, Twitter, Instagram, and offer your
services to delivery apps such as Foodpanda, Grab and
lalafood. It can do wonders for marketing your
business and of course your company earns.
Page 30
Great Marketing Strategies
You can find here some great marketing strategies that

you can consider.
Opening Marketing Strategies
Offer a great appealing offer that people cannot resist
and want to get on your opening day. Examples are:
Buy 1 take 1.
Or go crazy Buy 1 and get the next one for only ₱ 1.
Non Peak Hour Promo Offers

Offer discount during not busy hours days to get your
store busy. Examples are:
Pre order promo such as ₱ 100 discount
Discounts during weekdays
Event Based Marketing Offers (Limited Editions)

Promote cakes only made for special events such as
Christmas, Mothers Day, Fathers Day, Easter and more.
How to boost your marketing?

Create a Facebook page
Make an Instagram account
Provide flyers (flyer-ing is an effective way of
promoting your business, always add your store hours,
address, contact numbers.
Add Tarpaulin banners
Page 31
How Much
You Can
Earn?
Page 32
Profit Calculation
Perhaps you are wondering how much will you earn if

you start a cake business. Well we have some great
news, lets calculate it. You will be pleasantly surprised
about the earning potential of the cake business. Let's
begin.
On the next page you will see a calculation of the

expected cost per cake and the potential earnings.
Please note that this is a estimate based on 20 cakes
sold per day.
Secondly, we did not add the rental and any other

cost. As this is something you have to do research on
as you will be having this information. However, we
will cover this information as well after calculating the
costs and earnings.
Page 33
Average Costing Per Cake 9 inch

Cost Per Cake 9 Inch ₱ 300.00
Profit Calculation
Selling Price (SRP): ₱ 650.00

Costing Per Cake: ₱ 300.00
Profit Per Cake: ₱ 350.00
Cake Sold Per Day: 20 cakes
Profit Per Day: ₱ 7,000

Profit Per Month (30 days): ₱ 210,000
Page 34
Perhaps you are wondering how much will you earn

based on your own preferred selling price and how
many cakes you estimate to sell a day. Below we
empty the fields you enter your data and calculate it.
We highlight these. We have added an Excel
attachment the "Profit Calculator" to help you
calculate it directly in Excel.
Profit Calculation
Selling Price (SRP): ₱
Costing Per Cake 9 inch : ₱ 300.00
Profit Per Cake: ₱
Cakes Sold Per Day: pieces
Profit Per Day: ₱
Profit Per Month (30 days): ₱
Page 35
Once you have the calculated your potential earnings

per day you have an idea what your costing for other
items can be. In the cake business it is very common to
sell at least 20 cakes a day.
Imagine you would be open 10 hours a day and would

sell 20 cakes daily. This would mean every hour you
sell 2 cakea. Which means every 30 minutes you have
a customer. This is very reasonable or even quite low
estimate.
The average sales price is around ₱ 650 as suggested

retail price (SRP). Price could even be higher. This is
especially the case if you use the expensive packaging
design, which we did.
What you need to consider next is if you have a store

you will need to consider the cost of the following.
1. Rent of your Cake business

2. Staff Wages
3. Electricity
4. Water Usage
5. Gas
6. Internet (if applicable)
7. Tax
Page 36
Check our website to automatically calculate your cost

and see how much will last. it will show you the
numbers quickly. We tried to make it as easy as
possible for you. Please use this wisely and use the
Profit Calculate in the website
https://www.howtostartacakebusiness.com/profit-
calculator/
Monthly Cost Calculations
Rent of Your Shop ₱ 10,000.00
Staff Wages ₱ 18,000.00
Electricity (Utility) ₱ 3,500.00
Water (Utility) ₱ 1,500.00
Gas (Utility) ₱ 1,000.00
Internet ₱ 1,888.00
Total Costs ₱ 35,888.00
Tax (3% = 20 cheesecakes x

₱ 11,700.00
650 each x 30 days)
Nett Profit Per Month (30 Days) ₱ 162,412.00
Nett Profit Per Year (12 Months) ₱ 1,948,944.00
Page 37
The
Decision
Page 38
The Decision of a Lifetime
Now you have all the information to make a careful

decision if the cake business is something for you. We
gave you a lot of steps to get you going.
Now comes the key question? Are you going to take

action? Are you going to make your dream come true?
The time to decide is now!
Page 39
"You are only
one decision
away from a
totally
different life"
Your future self
Page 40

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How To

Cakes and More Page 3

Cakes & More

Very often I meet people that are deeply passionate

Cakes and pastries is something close to heart. It is

Before starting from home was not really accepted.

This guide has been designed to help you start your

Step 1: Define your cake business concept

So you want to start a cake business. So you need a

It is now time to define that store so you can see the

Define your cake shop and give it shape in your mind.

Step 2: Find a great location

So what would be a great location for your cheesecake

Subdivisions and Condominiums

So now you have some ideas of what is considered a

Before you continue on the next step start to select

Step 3: Create your brand

Your branding will depend on your location. You are

The design of your cake store will determine who you

Go and research in your location who is your

"Why should I buy from you instead of the competitor?"

You must have a good answer or else they will go to

Step 4: Design Your Menu

Important parts of your menu should be, it must be

Also the branding color of your business must match

People buy cakes with their eyes. The nicest cake

Step 5: Invest in the right equipment

Having the right equipment is essential for your cake

1. Gas Stove or electric induction heater to cooking.

If you start out you do not need to have all the

Step 6: Ingredients and Supplies

The next step is the find great suppliers to be able to

Things you will be ordering are, cream cheese, sugar,

Step 7: Hire and Train Employees

Once you have everything you need to start to hire and

They need to know what is in the cakes if people have

They need to know how to greet a customer and help

Step 8: Obtain Business Permits and Licenses

No business can run without the proper documents and

Many inspections, licenses and permits take several

Permits and Application Procedures:

Mayor’s Permit (also known as business permit)

Tax Registration Number (or TIN)

Step 9: How To Market Your New Business

Currently the cake market is starting to grow and is

Be sure you include the products of your menu on your

Make sure you are active on social media and have a

Great Marketing Strategies

You can find here some great marketing strategies that

Non Peak Hour Promo Offers

Event Based Marketing Offers (Limited Editions)

How to boost your marketing?

Perhaps you are wondering how much will you earn if

On the next page you will see a calculation of the

Secondly, we did not add the rental and any other

Average Costing Per Cake 9 inch

Selling Price (SRP): ₱ 650.00

Profit Per Day: ₱ 7,000

Perhaps you are wondering how much will you earn

Costing Per Cake 9 inch : ₱ 300.00

Profit Per Cake: ₱

Cakes Sold Per Day: pieces

Profit Per Day: ₱

Profit Per Month (30 days): ₱