Start A Cake Sales Business - Business Ideas

Updated: September 15th, 2022
Start A Cake Sales 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.

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

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

Key Stats

market size
$75B
starting costs
$13.7K
gross margin
40%
time to build
210 days

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$7,000

Inventory Expenses

$350

$14,750

Software Expenses

$150

$2,794

Website Costs

$13

$215

Advertising & Marketing Costs

$0

$2,450

Total Startup Costs

$513

$27,209

Successful Businesses

Business URL Rank

Kodiak Cakes

kodiakcakes.com

168,154

FunnelCake

getfunnelcake.com

397,524

Keto Candy Girl

ketocandygirl.com

805,531

DRAKE'S CAKE

drakescake.com

819,382

Claxton Bakery

claxtonfruitcake.com

2,306,705

Cake Among Us

cakeamongus.com

3,497,232

Beatrice Bakery

beatricebakery.com

3,821,895

Romano's Italian Bakery

romanositalianbakery.com

5,504,592

Bon Appetit

bonappetitbakery.com

5,693,845

danielle kattan

daniellekattancakes.com

5,917,864

The Great Cake Warehouse

thegreatcakewarehouse.co.uk

6,806,112

Pros & Cons

Pros Description

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

Little startup costs required

The cost to start a cake sales business costs significantly less money than most businesses, ranging anywhere from 12 to 27,209.

Rewarding work

Starting a cake sales 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.

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

Traffic to your website

A cake sales business gives people a reason to visit your website and to keep coming back to you!

Cons Description

Crowded Space

Competition is high when it comes to your cake sales business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

Finding The Right Supplier

Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.

Security Issues

With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.

Lack of benefits

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

Isolation

Often times, as a cake sales business, you typically work alone and do not have much face-to-face interaction with other team members.

Taxes

As a cake sales 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.