How to Start a Cake Business?

Celebrations are incomplete without a succulent and attention-seeking cake. Cake has become an integral part of every occasion. Cutting cake on every occasion has become a trend.

People are getting influenced by the trend and actively entering into the cake business. Some are following their passion while others are getting lured to potential profits.

If you want to start a cake business, but do not possess enough knowledge, then this blog is for you. We will be discussing everything about starting a cake business. You will also be getting magical tips to decorate your cake. 

The cake business is easy to start. You can start this business from your home as well. All you need to know is pro-level baking and the right technique of marketing and you are ready to outshine your competitors.

The cake business demands uniqueness and innovation. So, make sure your ideas are unique, attractive, and promising and should appeal to the tongue of the customers. 

Scope of cake business

Every time we think of starting a business, the first question that arises in our mind is – What about scope? Is it profitable to expand? And how many options are available in the same area? So, here we go with the answers-

You will be happy to know that the Indian cake market grows with a CAGR of 12.5% during the forecast period, 2020-2025. People are entering into cake business as they know that the opportunities are available in abundance in the bakery industry.

The cake is a part of the bakery industry. The cake is the biggest contributor to profit in the bakery industry. Check out the following ways through which you can expand your cake business. 

• Start cake selling from home- One of the simplest methods of entering into the cake business is starting it from home. If you cannot arrange finance for a shop, you can start baking and selling from home.
• Start selling online– You must be waiting for this point. Like any other business, you can use online methods to run a cake business. For this, you need to have a website from where you’ll receive orders and promote your business.
• Start a cake shop- The traditional and the most convenient method of running a cake business. You can open a cake shop and sell customized cakes. You can begin with cake and gradually expand and sell other bakery items.
• Find dealers- You can also make connections with event management companies and run your business. You can sell your cakes to them and earn heavy revenue. 
• Connect with other businesses- You must have heard of B2B contracts. You can also try hands-on it. Start dealing with other businesses and supply them with fresh cakes. 
• Chef and head cook- You can also join restaurants as a chef or head cook in restaurants. You will be allotted the task of directing kitchen staff and handle food-related matters.

After researching, you can choose your perfect fit. Do not forget to consider other factors like budget, skills, resources, managing abilities, etc. 

How to start a cake business?

This question must have landed you on this page. As we discussed, it is not a big deal to start a cake business in India. All you need is skills, a plan, and a guide to starting. Go through this stepwise guide to start a cake business.

Research

So, you must be wondering, what shall I research just for a cake business? Well, you must be having competition and you are baking for customers for sure. You have to research the market trend, competition, and the taste of customers. After that, you can proceed with further steps.

Choose your target audience

For whom would you like to bake? After researching, make sure you choose your target audience and make your business plan accordingly. The choice of location, marketing strategies, and even pricing depends on your target audience. 

Hard-hitting business plan

The business plan is mandatory. If you want to avoid problems related, mismanagement, improper planning, or lack of strategies, then make a strong business plan. Your business plan should contain the information related to your budget, cost, marketing strategies, SWOT analysis, plan of action, etc. A hard-hitting business plan can help you in pitching investors, in case, you are going to choose that way.

Choose your location

The next step is to choose the location. If you are targeting the middle-class or planning for B2B contracts, then own a shop in the middle of the market. But if you are targeting high-profile people, get a shop in the area where such people reside. While choosing a shop, make sure you have both the front area and back area.

The back area can be used for baking and the front area for dealing. The shop should have an area of 500 sq. mt. If you cannot manage to get a shop of this size, make sure you divide the area properly. You can also go to a commercial kitchen.

Commercial kitchen owners charge fees based on the number of hours. You can even start baking from home. The procedure will be slightly different if you start a cake business from home.

Get a license

You cannot run a business without a license. You need to obtain the necessary licenses to run a business smoothly as well as legally. The licenses that you would require to start a cake business are FSSAI, Fire License, and Municipal License. We will be discussing these licenses in the other section of the blog.

Find a raw material supplier

You would need raw material like wheat flour, edible decorative items, etc for your cake business. Now you have to look for suppliers of the raw material. While choosing the supplier, make sure they comply with your timings and should have their shops nearby. You can also buy from grocery stores, but it would be advisable to make contracts with wholesalers.

Buying equipment

A cake business cannot run without equipment. The equipment you would require includes, oven, storage utensils, display fridge, gas stove, scoops, mixers, etc. 

Name and logo of your business

Choose a unique, catchy, and meaningful name for your business. It should be short, simple, and pronounceable. This could help people in retaining the name of the shop.

Get your logo designed by professional designers

Your logo should be recognizable and descriptive. It should narrate the story of your business. It should comply with the theme of your business. Try choosing the same colors for the interior of the shop and logo. This could help you in seeking the attention of the customers.

Marketing

The cake business is not going to compromise with one of the methods of marketing. Yes! Your mind is going in the right direction. The cake business demands a combination of digital and traditional techniques of marketing. You need to be innovative while marketing your cake business. The choice of the technique should be accurate. Because the wrong technique can make you eligible to bear the avoidable loss.

After-sale service

Customer satisfaction should be a priority. Make sure the way of your dealing is polite and promising. You should act a bit poised when you present your items. Let your customer leave the shop, but you shouldn’t leave their minds. Provide first-class after-sale services so that your customer visits again and again. He should not fail to recommend your shop to others as well.

By following these steps, you can start a cake business in India. Make sure that you are being unique because uniqueness is going to distinguish you from others. 

License required to start a cake business

The requirement of the license varies based on the types of business. The license required to start a cake business includes-

• Food license- You cannot start your cake business without a food license. It is advisable to apply for an FSSAI license as you don’t have to renew it every year. 
  
• Fire license- After the installation of fire extinguisher cylinders, you can apply for a fire license. It does not cost you much. It would cost you around INR 1000-2000.
  
• Health license- Another important license is the Municipal Corporation Health license. You can get this license with the help of a Municipal Health inspector and it would cost you around INR 3000.
  

You also have to get GST registration to start a cake business. It can be obtained with the help of a Chartered Accountant.

If possible, go for trademark registration as well. It would be beneficial to have trademark registration because your brand name and logo would get registered and no one else would be able to use the same. This will help you in getting recognition and is not going to cost you more than INR 7000.

Before proceeding, make sure you obtained all the licenses and registered your cake business with the relevant authorities. The whole process of obtaining a license and registration would not cost you more than INR 20000.

Investment Required to start a cake Business

There are only a few businesses that can be started with a small investment. The cake business does not fall in that category. It nowhere means that you have to spend a lot to start a cake business. Now we will be discussing the different types of costs you have to bear to start a cake business.

• Space- You would require a shop or store to sell the cake. Either you can purchase a property or get a rental shop. The ideal space for the shop of cake is 500 sq. ft. The rent would be around 50k or more depending on the location.
  
  
• Business license- You cannot obtain the license without paying fees. You have to obtain an FSSAI license, municipal health license, fire license to start a cake business. Obtaining all kinds of licenses and registrations would not cost you more than INR 20000.
  
  
• Equipment cost- The equipment you would require for a cake business includes mixers, ovens, deep fridges, measuring spoons, storage utensils, trays, etc. Buying equipment would cost you around, INR 3 lakhs- 6 lakhs depending on the type of equipment you are buying. The cost may vary depending on the quality and dealer. 
  
  
• Ingredient cost- Create a list of ingredients you would require to start a cake business. The common ingredients include wheat flour, flavors, milk, decorative items, baking powder, etc. The cost of ingredients would be around INR 7000- 20000. 
  
  
• Packaging Cost- Packaging is the first thing your customer is going to see. It is the first impression of your business. Packaging includes cake boxes, etc. It is a bit difficult to calculate the amount required for packaging. However, an estimated amount of packaging at the initial level could be INR 10000.
  
  
• Marketing Cost- The cake business depends heavily on marketing. You should choose a combination of digital and traditional marketing strategies to promote your cake business. It would cost you around 100k to advertise your cake business.
  
  
• Miscellaneous cost- The miscellaneous cost may include delivery charges, electricity, cleaning, etc. This would cost you around INR 20000-30000. 
  

A numerical presentation of the cost that you have to bear to start a cake business= 150k+ 10k+ 600k+ 20K+ 10k+ 100k+ 10k = 900k.

Another cost that you can bear is- bank loans- EMI, website costs, professional costs, insurances, etc. 

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How can I obtain the investment?

The next question is how can I obtain the finances for my cake business. There are different ways to arrange finance for the cake business. Either you can use savings to finance your business or you can start your business in partnership.

You can also finance your business through bank loans or investors. Investors should be approached if you are planning to start the cake business at a bigger level. 

If you cannot afford to start a cake shop, you can start this business from home as well. As the cost to start a cake business from home is lesser than starting a shop. Go through this stepwise guide to start a cake business from home.

How to start a cake business from home? 

1. Business plan- Prepare a business plan to start a cake business from home. As you are starting from home, the points that should be included in your business plan are-

• Marketing strategy
• Plan of action
• Budget
• Finance 
• SWOT analysis
  

2. License and Registration- It doesn’t matter whether you are running a shop or running a cake business from home, you have to get a food license. Food businesses must obtain an FSSAI license. 

3. Decide what you want to sell- One of the most important questions is- what do you want to sell? Develop a niche, decide the types of cakes you want to sell according to the taste of your customers. People have become health conscious, so offering gluten-free products would be a great idea. You can also offer specialized cakes for weddings or birthdays or any other occasion.

4. Learn baking- Eventually, the taste of the cake is going to give you customers. Make sure your cakes should appeal to both the eyes and tongue of your customer. You can learn different recipes to outshine the crowd. Learn baking and keep updating your knowledge. Move according to the trend and you can earn from your cake business.

5. Buy equipment- This is one of the most obvious requirements of a business. You would require the right equipment to run the business. The equipment that you would require to start a cake business is ovens, a fridge, big storage utensils, scoops, tray, cooling racks, measuring spoons, mixers, etc.

6. Set your kitchen- Having a spacious and well-ventilated kitchen for the cake business is necessary. As you would require space to keep your equipment. It should have enough racks, shelves and a big counter to place the equipment and other material. A big refrigerator is also required for a cake business.

7. Cake ingredients and inventory- You would require different equipment like wheat flour, jam, sugar, milk, decorative items, sweeteners, etc for the cake business. Also, you would have to keep an eye on the inventory of these products. It is advisable to enter into contracts with people who deal in such items. Prefer wholesalers. 

8. Cake Photography- Many home bakers struggle with clicking high-quality pictures of their cakes. Before tasting, the picture of the cake is the first thing that the customer is going to see. Make sure you learn to capture your talent beautifully. You can take photography tips from YouTube or even from your family members or friends. 

9. Packaging– Packaging does not only protect your cake but also a point of judging the services of your business. It is the first thing a customer is going to see. Make sure your cake is packed beautifully.

You can also get your name printed on the packet and bags. Or you can use plain or shiny packets to pack your product. And if no one is using packaging material of such kind, then you can get the attention of your customers easily.

10. Pricing- Set the price of your cakes carefully. It is advisable to start with a low price to capture the market. You can keep a margin of 25-30% in a cake business. 

11. Marketing- Whether you start it from home or shop, you have to promote your cake business. If you are starting a cake business from home, your marketing strategies should be strongest. Before promoting, get a logo for your business and then start. Another way of tapping potential customers is by attending cake fairs and exhibitions.

12. Kickstart your business- Now you are all set to begin a cake business. Start your cake business, follow your plan and remain updated with the trend. This is how you can progress. 

You can also start a cake business online. Now, this statement would have flooded your mind with plenty of questions. Keep reading and you will be getting answers to all your questions. 

How to start an online cake business?

The global pandemic is compelling people to rely on online sources for their survival. People are hunting for different sources of earning online. So, here is good news for bakers. If you think your baking skills can bring money, then you should go for an online cake business. Go through this guide to start an online cake business.

• Define Your Niche- You can sell different flavors of cake. But when you are starting an online cake business, make sure you define your niche right from the beginning. This could help you in inventory management as well.
  
  
• Consider logistics- How are you going to make your goods available to your customers? Yes, logistics. Your logistics should be very strong. Make sure that the raw material is available on time.
  
  You are making timely delivery of cakes to your customers. You have to plan everything. Right from the day of shopping for raw material to which set of goods should be bought on which day, everything should be planned carefully. 
  
  
• Equipment- You cannot run a bakery without equipment. So, the different equipment you would require for the cake business includes mixers, ovens fridge, measuring spoons, etc. 
  
  
• Choose your platform- You need to have a digital presence to start a cake business. You can get a website and use social media handles to promote your business. You can use different digital marketing techniques to promote your business. Landing page, SEO, and many other relevant techniques can be used to promote your business.
  
  You can also register your business on Google MyBusiness to get the leads. As a beginner, you may find it difficult to develop a website and choose the right technique for your cake business. Don’t worry, Traffic Tail is here to help you.
  
  We can help you in designing the best website for your cake business. We consider understanding the needs and requirements of your business and suggest the marketing strategies accordingly.
  
  
• Register your business- Before you start your cake business, make sure you have registered it under the local government. That simply means you have to obtain a license that certifies that you can produce and distribute eatable goods. You would also have to apply for a distributor’s license or food manufacturer license.
  
  
• Build and promote your brand- The next step is to decide on a name and get a logo for your online business. It would help you in creating brand recognition. 

Also, you can use different techniques of marketing to promote your bakery business. Choose the best digital marketing strategies to promote your cake business and increase sales. 

This is how you can start an online cake business. It is not complicated to open an online bakery. All you need to do is channelize your baking skills in the right direction and the game is yours. You can expand and open offline stores as well. You can also collaborate with other businesses to promote your cake business.

Commercial Equipment

Choosing the right equipment for your cake business is not hectic. All you need to do is decide your niche and prepare the list of equipment required to run a cake business. Make sure you purchase high-quality equipment for your cake business. Equipment required to start a cake business includes-

• Baker’s table
• Commercial Mixer
• Dough Dividers and Sheeters
• Holding/ Proofing
• Retarder
• Convection Ovens
• Deck Ovens
• Roll-in-back ovens
• Revolving ovens
• Display cases

Inventory and Logistics

Inventory planning is an important part of a business. Inventory planning or stock management ensures that you have enough stock of ingredients at right time. It makes sure that you do not run out of the raw material required to make the cake.

At the initial level, you can make an excel sheet to keep the record. But when you expand, make sure you are investing in the stock management system.

Logistics talk about the purchase and delivery of raw materials, packaging, and shipment of cakes to the customer. The logistics of the cake business should be the strongest. Be it, home bakers or shop owners. A cake business should have effective logistics as the cake is a vulnerable eatable item. It can get spoiled or the decorative items can get misplaced. 

Packaging

The presentation and packaging of the cake should be first-class. Good packaging does not only keep your cake safe but also lasts an impact on the minds of your customers. While selecting the packaging design and material for your cake business, keep the following points in your mind-

• Shape and Size of your packaging- You need to consider the sizes of cakes you are going to sell and according to that you have to purchase packaging material. The size and the shape of the packet should be attractive. Make sure that the décor of the cake is not spoiled when it arrives at its destination.
  
  
• Unique and identifiable- When you see a brown bag with a green logo, you instantly think of Starbucks. Your business should also add some unique features to your packaging so that local people can distinguish your cake from another seller just after looking at the packaging. Choose a signature color or get your logo printed on your bag.
  
  
• What you want to deliver- Your cake should convey your message to your customers. You must be aiming to deliver uniqueness to your customers by delivering a beautifully packed, mouth-watering cake to the customers. Sometimes, people dislike the packaging and abandon the seller without even tasting the cake. Make sure you deliver a good vibe through a good packet.
  
  
• Customized packaging- Cake is a giftable item. So, you should provide customized packing service to the customers. It should be packed according to the need of the occasion and customers.
  
  
• Get your bags- You should also get the bags designed for carrying the cake. The bag should contain the logo of your business. 
  

Do not forget to consider these points while deciding the packaging for your cake. Also, choose fine quality material for making packets and bags. This helps in building the reputation of your business.

Marketing Strategies

The cake business is the biggest fan of marketing. Although, marketing is the blood of every business it does a bit more for the cake business. Cake business can be promoted using traditional and digital methods. Check out the following methods to promote your cake business.

• Store merchandising- The way you display your cakes is an important factor. Beauty lures eyes. If your store is designed beautifully and the cakes are organized properly, then people would love to shop from your store. 
  
  
• Theme cake- Nowadays, bakers have resorted to the practice of displaying cakes according to the occasion. For example, on mothers’ day, you will find women-oriented designs of cakes. On Christmas day, you will find Santa is ruling the display racks. 
  
  
• Offer samples- If your customer has come to buy pineapple cake, don’t hesitate in offering them another flavor cake to taste after the purchase. If they liked it, congratulations you sold one more cake. Free samples help In building the reputation of your business.
  
  
• Loyalty discounts- You can also offer discounts to your regular customers. This would not only make them loyal but would prompt them to recommend your cakes to their friends and family. 
  
  
• Get a website- You can use digital methods to promote your business. Get a website designed that should comply with the theme of your business. It should contain the menu, offers, etc.
  
  You can also add blogs on cake decoration tips, the best equipment for your cake business, etc to maintain the engagement on your website. You can receive orders from the website and run your business both online and offline.
  
  
• Social Media Marketing– Social media is a perfect choice for promoting your cake business. You can upload the pictures of your cakes and describe the ingredients. You can make connections through social media to make your customers feel connected with your business.
  
  
• Product review- Ask your customers to write their reviews. Positive reviews prompt other customers to buy. Make sure your happy customer should post their reviews. 
  
  
• Know your customers- You can create online surveys to know the tastes and preferences of your customers. You can lure them to complete the survey by offering discount coupons for the next visit or small cakes as a reward.
  
  
• Cross-selling and tie-ups- You can tie up with event planners to sell your cake. You can also use other platforms to sell your cakes. You can also sell related items like knives, candles along with the cake.
  
  
• Pamphlets- Distributing pamphlets is a traditional technique of marketing. You can consider trying hands-on this as well.
  

You can always experiment and use different marketing strategies to promote your business. The one that worked for you is the best.

Is it a good idea to start a cake franchise?

Definitely! Running cake franchise is not a bad idea. It is a profitable business and you can learn a lot about the business. Do you know that the profit margin in the food business is very high? Then why shouldn’t you invest in the cake business?

You can generate heavy revenue from a cake business. It is not difficult to run a franchise. All you need to do is consider the specifications of the franchise while designing the store, choosing the ingredients. Also, you get a chance to deal with a huge range of products. You get a chance to learn a lot about business.

Also, owning a franchise can cut the cost of marketing. Because it is a prominent business, you don’t have to spend extra bucks to generate profits. As you enter into the business, you will learn a lot about the franchise and would become eligible to enjoy the benefits of owning a franchise.

It nowhere means that you can sit and print notes. Like other businesses, you have to invest your efforts along with the money. As we all know, hard work is the key to success.

Let’s talk about the bakery industry

The bakery industry is one of the oldest businesses in India. The opportunities in this industry are available in abundance. It has been growing for decades. Every day a new product or a variant of existing ones gets introduced in the market.

People are entering the industry as they are well aware of the scope available in it. You can start with a single product like biscuits, buns, cakes, or anything and then you can expand. Both international and domestic market has potential to support this industry.

Foreign bakeries are constantly entering the market paving the way for growth for Indian bakery products as well. Indians are getting a chance to taste unique and innovative recipes. They get inspired and produce something better. In the coming five years, the Indian bakery industry is expected to reach the mark of INR 483 Billion. 

The bakery industry is expected to experience growth in the global market. The bakery items can be compared to the cherry on the cake for an occasion. The celebrations remain incomplete without bakery items. Nowadays, supermarkets have started selling pies, doughnuts, pastries, buns to have their share of the revenue. 

With the improving lifestyle, the demand for bread, rolls, cakes, pretzels is increasing. People are resorting to on-the-go foods such as rolls, croissants. Global urbanization has prompted the growth of the bakery industry to a great extent.

Other product that can be sold

Right from designs to flavors, several bakery products can be sold along with the cake. Who doesn’t want to make a profit? Who does not get lured to money? You, me, your friend, and I guess everyone. And you can do this by expanding your cake business. Along with customized and non-customized cakes, here is a list of products that you can consider selling along with the cake.

1. Baby Cheesecakes- You can make small cheesecakes. The size of cheesecakes could be as small as a muffin or a cupcake. Cheesecakes are available in a variety of flavors. Bakers try to introduce innovative flavors.
   
2. Pies- People love pies. Pies are a little large than slices. Like cakes, pies are available in different flavors. You can consider selling pie as they are demanded in the market.
   
3. Homemade bread- You can also sell homemade bread. This can be prepared by baking a loaf of bread. 
   
4. Cannolis- If you are looking for a decent product to be sold, go for cannolis. It is a kind of pastry that is simple, tasty, light. They are large, that can be used to fill snacks. But the miniature side is preferable for desserts.
   
5. Cookie Sandwich- This is an all-time favorite product. From kids to adults, everyone loves them. The cookies of different flavors can be used for these cookie sandwiches. Do not hesitate to sell this item as it appears beautiful and tastes incredibly awesome. 

The bakery industry has room for unique and innovative recipes. Do not hesitate to introduce your unique recipes. Make sure your new products are succulent and promising.

Key Takeaways- 

• Create a strong business plan. A business plan contains every detail of a business. The plan of action should be clearly defined as it can guide your movement.
• Choose your location wisely. Consider every possible factor and research a lot before choosing a location for your cake business.
• Gather all the necessary licenses before starting a business.
• Get a unique name for your business and the logo should be simple and catchy.
• Plan your menu. Your menu should be readable. Simple and catchy fonts should be preferred for the menu.
• One of the most important things to be kept in mind is the price of the cake. Start your business with low prices to capture the market.

Tips to decorate the cake

We love to provide maximum knowledge to our visitors. So, here we go with incredible tips to decorate the cake.

• Freeze the cake layers for at least an hour and up to a month. If you are planning to keep the cake frozen for more than a week, cover it with foil paper.
  
  
• Start using a crumb coat. Crumb coat is a thin layer of frosting. These crumby frostings are reusable. It prevents loose crumbs to appear on the top.
  
  
• Bench Scraper- If you want the edges of your cake to be extra smooth, then use this tool. Make sure you hold it in your dominant hand and the cake is placed on a turntable.
  
  
• Piping- Piping is a great way to ornate a cake. Piping on the frosting is a simple method that makes your cake look elegant. You can make stars, flowers, waves, or other designs from the piping. A cone is filled with cream and is used to design the cake.
  
  
• Marzipan Cutouts- This is a personal favorite technique of decorating the cake. This is a way to add little elements to the cake. Knead gel or liquid food coloring into marzipan and cut out the desired shape. This makes your cake look charming.
  
  
• Ombre cakes- It is a method of getting layered frosting. You can use different colors or shades of a single color to get multiple frosting.
  
  
• Dusting edges- To get 100/100 for presentation, you can cover the edges by dusting sugar powder or cocoa powder.
  
  
• Scallops- Scallops can be done using a spoon and Ziploc bag. All you need to do is learn the technique and that’s it. This is an easy method of decorating a cake.

Starting a cake business could be the best decision of your life. It has the scope and is expected to grow with flying colors in the next five years. Make sure you have created a strong business plan and you are going to execute it properly. 

The cake business always has room for innovative marketing techniques. You can use digital as well as traditional marketing techniques to promote your cake business. One of the best parts is, you can start this business from home as well. 

You can also go for a cake franchise or expand your business accordingly. The cake is a part of the bakery industry and the bakery industry deals in a wide range of products. So, you can expand your business by adding new products to your inventory. 

Understand the business and the market. Go through the pros and cons, consider the relevant factors and then start your cake business.

Frequently Asked Questions

1. How can I start a cake business?

Ans. The cake business is a profitable one. It is not a big deal to start a cake business. You can start a cake business from home. Follow these steps to start a cake business-

• Research
• Choose your target audience
• Business plan
• Choose your location
• Get license
• Find supplier
• Buying equipment
• Name and logo of the business
• Marketing
• Kickstart your business

2. List the licenses required to start a cake business.

Ans. The licenses required to start a cake business-

• FSSAI license
• Fire license
• Municipal license

3. Is it profitable to start a cake business?

Ans. Yes, the cake business Is profitable as cake cutting has become a trend. Every occasion is incomplete without the cake. And with the improvement in lifestyle, the tastes and requirements of customers are evolving. People cut cakes. They cut cakes on small celebrations as well. If run properly, this is one of the most profitable businesses.

4. How much does it cost to obtain a license and registration?

Ans. You don’t have to spend a big amount on licenses and registrations. It would not cost you more than INR 20000 to obtain all the licenses and registrations.

5. How much would it cost to start a cake business in India?

Ans. You have to spend on business license, equipment, rent, marketing, ingredients, etc. On average, you can start a cake business with an amount of 900k. 

6. How can I arrange investment for a cake business?

Ans. There are different ways to finance your cake business. If it is possible, you can use your savings to finance your business. Other ways to obtain funds are pitching investors, bank loans. You can also start your business in partnership with friends or family.

7. Can I start a cake business from home?

Ans. Yes, you can start a cake business from home as well. You need to arrange for space, equipment and must have a strong marketing plan if you want to start a cake business from home.

8. What are the necessary ingredients required for making a cake?

Ans. The necessary ingredients that are required to make a cake include flours, sweeteners, milk, decorative items, flavors, fruits, baking powder. 

9. How much investment is required to start a cake business in India?

Ans. The different types of costs you have to bear include, license cost, equipment cost, packaging cost, inventory, marketing, etc. The estimated amount you would require to start a cake business is 900k.

10. What kind of fixed and variable cost I have to bear to run a cake business?

Ans. Fixed cost-

• Bank loans- EMI
• Computer
• Website cost
• Software and tools
• Equipment
• Internet

Variable cost-

• Taxes
• Packaging
• Stationery
• Ingredients
• Electricity
• Water
• Marketing

11. Can I own a cake franchise?

Ans. Yes, you can own a cake franchise. Owning a cake franchise is beneficial as you don’t have to spend much on the marketing of your business. Keep the specifications of the franchise company in your mind, while building or choosing the shop.

12. What other products can be sold along with the cake?

Ans. Along with cake, you can sell other products like pastries, doughnuts, pies, decorative items, candles, etc. You can even expand it as a café cum bakery. At the initial level, you can start with a cake business and use profits to finance your business.