My business name use to be Michelle Lindell Arts but recently I have been toying with the idea of getting a store front. (I know fun right!?) And I thought Michelle Lindell Arts wouldn't be the best name to go with. SO- I changed it to Sweet To Eat Cakes. check out the website www.sweettoeatcakes.com.
At the beginning of 2012 I made a promise I would learn 12 new things about cake decorating and I believe I surpassed that goal. I am pleased to say I have grown as a cake decorator and I plan to make the same goal again in 2013! I want to be the next "Cake Boss" or "Ace of Cakes" for Iowa! (Watch for a Dr Seuss cake at the fair 2013!)
Here is a little insight to the world of owning your own business and why my prices will continue to go up in future years:
I have big plans for my little cake shop to be. I want to bring home as much as my husband does per month. (Just throwing numbers out now not really sharing what my husband brings home!!!!) --- When owning your own business in order to bring home $3000 a month you have to make x3 that amount. So I would have to make $9000 a month. Right now I charge $2.20 per person (going up soon.) That means I have to make 4091 servings of cake. That is a LOT of cake. On the bigger side for the weddings I do right now I serve 300 and average would be 250. So I would need to do 16.3 weddings to make my $9k goal per month. I did 2-3 per month this past year with many many birthdays. While this is a huge step for me from 2011 I still am too far away from the finish line to see the light at the end of the tunnel. Right now I see the "you are headed in the correct direction" arrow!! (Which is still exciting in and of itself!)
Another issue I am going to be dealing with sooner or later is the fact that I only charge $2.20 right now. (In 2013 that will be going up to $2.50) I have brides telling me at pretty much every visit "you are the cheapest person we have spoken with." While I am happy it is bringing in brides at the same time I will not be able to do this forever! In the future the amount of work I am needing to do to bring in a real income I will need to have full time employees ($10hrx40x4=$1600mo) And I will also have rent to think about. I can get away with $2.20 because I hire friends to come work for me for a shirt from maurices, and I don't have $1200 rent or water, electric, and other bills at a store front. JUST the employee and rent will set me back from bringing home my $3000 a month. --- but making 16 wedding cakes a month I will NEED the help! so it wont be avoided. I'm sure at that point I will have to offer some kind of health insurance too which will take another chunk out of my bring home... and then taxes ... taxes for my own business will be 1/3rd of what I make. Before any of that gets paid for I will have to pay for supplies. And lastly for what I'm thinking about now I will have to pay some money for advertizing! Birthday parties come every year but brides only get married once and in order to get my name out to the new brides I have to be in the public eye!!
In years past I might feel bad about my prices because I was still learning what I was doing and didn't feel like my cakes were worth a higher price. I do feel however now that I have the experience to start charging more, and I also understand just how much money I will have to spend in order to even bring a profit home.
So I do apologize for having to raise my prices, but at the same time I'm sure you understand now why I will have to!
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