Start A Cake Delivery Business - Business Ideas

Updated: September 15th, 2022
Start A Cake Delivery Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

The global cake market size has been growing tremendously. The increased popularity results from celebrating various occasions like birthdays, weddings, and personal achievements.

A popular trend within the cake industry is the delivery of cakes. People opt to order cakes online as it allows them to try different options.

Therefore, starting a cake delivery business can be a fulfilling business idea. To start your cake delivery business, identify a niche, and define your cake recipe.

Starting a cake delivery business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell cake delivery services, or selling cake delivery services online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
$152B
starting costs
$18K
gross margin
90%
time to build
270 days

Startup Costs

Min Startup Costs Max Startup Costs

Employee & Freelancer Expenses

$151

$252

Website Costs

$223

$7,015

Business Formation Fees

$600

$4,700

Vehicle Expenses

$0

$10,000

Retail Business Expenses

$1,250

$6,650

Advertising & Marketing Costs

$75

$3,986

Software Expenses

$162

$2,720

Office Space Expenses

$0

$100

Specific Industry Expenses

$0

$500

Total Startup Costs

$2,461

$35,923

Successful Businesses

Business URL Rank

Ferns N Petals

fnp.com

7,816

Milk Bar

milkbarstore.com

52,366

Wicked Good Cupcakes

wickedgoodcupcakes.com

120,780

Birthday Cakes Delivered

bakemeawish.com

184,648

Tatte Bakery and Cafe

tattebakery.com

188,623

IndiaCakes: Order Cakes

indiacakes.com

264,832

Monginis

monginis.net

348,245

85°C

85cbakerycafe.com

357,942

countryoven.com

countryoven.com

362,991

Art's Bakery Glendale

artsbakeryglendale.com

379,621

CAKE

trycake.com

393,797

Pros & Cons

Pros Description

Little startup costs required

The cost to start a cake delivery business costs significantly less money than most businesses, ranging anywhere from 62 to 35,923.

Rewarding work

Starting a cake delivery business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Pick & choose the clients you work with

Cake Delivery Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!

Control of workload

With starting a cake delivery business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

Gain exposure and experience

This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!

Cons Description

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A cake delivery business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

Work can be inconsistent

As a cake delivery business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.

Lack of benefits

With a cake delivery business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.

Taxes

As a cake delivery business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

No safety net

Typically, as a cake delivery business, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

    Learn more about direct sales ➜

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

    Learn more about word of mouth ➜

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜