Are you working on a full-time job and still looking for a part-time hustle? Are you a foodpreneur and want to venture into a Cake business from home? Are you still searching for a low-cost investment business that can produce better return than your primary income?
If you have answered “yes,” then you should be curious to dig and understand more about a Cake Business in India that have provided a great return to a retail or full-time investors.
In this blog, we’ll be discovering more about a Cake Business Ideas, along with its primary requirement, cost, profit margin, and a step-by-step guide to launch a cake retail business in city – and answer some common questions about the chain.
- Idea: Cake Business
- Segment: Bakery
- Growth rate: 9-10%%
- Channels: Online & Offline
- Total Investment: Less than ₹1 Lakh
- Area Required: 200-300 sq ft
- Profit margin: 30-35%
- Flexibility: Yes
- Platforms: Amazon & Flipkart
Table of Contents
Overview of Cake Business Ideas
If you love cooking or baking then sometime or other you might have thought of baking a cake on your special day. Or, It could might be your passion to prepare a freshly baked cakes and serve it to your family and friends. While some of them might have appreciated your baking skills and some might have advised you start a cake business in your home town.
As an aspiring entrepreneur you started googling but couldn’t find a detailed approach for it. No worries! we got you back. But, before we start, let me congratulate you for your future endeavors!!
Without even a single bit of doubt, Starting a cake business from your place can be rewarding and exhilarating venture, if executed properly with a full dedication. Since last few years, with the rise in digital space penetration and e-commerce platforms, it has become easier to reach a wider audience and turn your freshly started business into a profitable one.
With desserts playing an integral role in our regular and cultural celebrations, ranging from weddings & birthdays to religious festivals, cakes and sweets are a ubiquitous part of Indian cuisine. There are several youtuber and Instagrammers who always posts their cakes works with audience and they earn a enormous sum from these platforms.
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Current and Future growth prospects for Cake Business in India
Cake business, which a part of Food and Beverages business that falls in bakery category, caters a wide audience in India and there are several bakery franchises that have created a significant impact on the Indian consumers.
According to a study performed by IMARC group, The Indian bakery market was valued at US$ 11.3 Billion in 2022, and it is anticipated to reach US$ 21.2 Billion by 2028, exhibiting a staggering CAGR growth rate of 10.8% for a period of 2023-2028.
Moreover, Irrespective of background, any business will require a proper planning, preparation, marketing, and execution. To learn further, considering reading the complete article.
Business Plan for Starting a Cake Business From Home | How to Start a Cake Business?
Home can be a best place to start a indoor business that may not require a lot of people to get started. Additionally, to become a successful Cake Entrepreneur, you need to have dedication and passion to work in this industry.
To make your path easy, we are going to lay down a few major business plans associated with Cake Retail business in India;
- Put up a brief summary for your project:
- This is one of the basic or primary setup guide that may provide a brief overview of business, which may include the product and service offered, the target market, and the goal and objective of your business.
- Form a Company or Sole-proprietorship:
- In this step, one may need to submit or list their business to government platform, basically you need to get a GST and other required license. You can also elaborate more about company’s legal structure, location, and ownership.
- Market Research and Analysis:
- One should be familiar to the current trends and demand for a variety of cakes available in the market, along with competitors and their USP. It will also provide enough insight into your target cake business ideas from home.
- Product and Services:
- Once you have finalized cake’s niche, put up a detailed description of product and services offered at the outlet. You can try adding more varieties & flavors later.
- Finalize Marketing and Sales Funnel:
- Outline the marketing strategy and mid-term and long-term goal for the venture. One should know the basics or hire professional that can market and promote their businesses on social media platforms.
- Day-to-Day Operations Planning:
- It will help you in planning your cakes preparation and its final processing in advance, ultimately making better inventory management. It also provide details on employee and their daily routine at work.
- Financial Planning:
- Once you are ready with above steps, outline the cost and estimated revenue projections, including start-up costs, overhead expenses, and profit margins.
- Recheck it monthly or quarterly to track business progress.
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How Much Does a Cake Business Cost?
The cost for starting a Cake business from house in India may vary depending on numerous factors, including the scale of the business, equipment and raw material supplies, and marketing costs.
A detailed break-up on its estimated costs are;
- Kitchen Equipment:
- After all you are starting from home, so you may not need to pay for a space to put up an equipment. But you may need a few kitchen equipment like an oven, mixing bowls, measuring cups, and spoons, that makes a estimated figure of ₹ 15,000 – 25,000.
- Raw Materials:
- A handpicked and fresh ingredients will always help you in baking a fresh and aroma full Cakes for the consumers. The raw materials includes, Flour, Sugar, butter, eggs(not mandatory), baking powder, baking soda, flavorings, cake pans, decorating tools, and packaging materials. It will cost around ₹8000 to ₹15000.
- Licensing & Registration:
- Irrespective of your location, you may need to obtain a food business license, health and safety permits, and register your business with the local government authorities, which will eventually cost ₹5000 to ₹10,000.
- Marketing and Advertising:
- A proper marketing on several social media platforms like Facebook, Google ads, Instagram, and a few offline marketing will eventually cost around ₹5000 to ₹10,000.
To Buy a Handpicked Raw materials – Best Bakery Supplies
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Summary:
| Type of Cost | Estimated Figure |
|---|---|
| Kitchen Equipment | ₹15,000 – ₹25,000 |
| Raw Materials | ₹8000 – ₹15,000 |
| Licensing & Registration | ₹5000 – ₹10,000 |
| Marketing & Advertising | ₹5000 – ₹10,000 |
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How Much is Cake Business Profit Margin?
The profitability of a Cake business from your place may vary depending on several factors, including cake’s quality, service offering, pricing, overall customer experience, and average marketing costs.
Usually, There are several cakes options available in the market and their probability also depends on them. Nevertheless, considering a rapid and stable growth in India’s bakery industry, penetration of international brand, affordability, healthy options with variety, one may anticipate a gross profit margin of 50-60% and a net profit margin of 25-33%
With an investment of around ₹50,000 – ₹70,000, one may expect an approximate income of ₹1 lacs per month. While machinery and equipment will be considered as one-time investment, but obviously you’ll be required to invest in procuring raw materials on daily, weekly, or monthly basis.
Cake Business Ideas with its profit margins
| Cake Business Ideas | Estimated Profit Margins |
|---|---|
| Customized Cakes | ~ 30 – 50% |
| Cake Pops | ~ 50 – 60% |
| Cupcakes | ~ 40 – 50% |
| Healthy Cakes | ~ 30 -40% |
| Cake Decoration Classes or Courses | ~50 – 60% |
| Cake Delivery | ~ 20 – 30% |
| Cake Catering | ~ 25 – 35% |
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How Do I Attract Customers to my Cake Shop?
The profitability of any business is one of the key driver for a long term operations of any kind of venture. We always try to implement certain tips and tricks to enhance sales or revenue of our businesses. While sometimes we may succeed or may fail, but with a proper guidelines, one may achieve a stable growth and regular customers at their outlets.
- Indeed food business is quite competitive and any deviation from its quality and services may lead to downtrend of your business. So always try to maintain the quality standards.
- Perform a detailed marketing analysis and figure out your competitor and their USP’s. It will help you in finding a gap in your business.
- To increase or attract customer, one can try offering free additional services like Cake stands or decorations for rent.
- Initiate some cake testing sessions or partner with a event planner for catering orders.
- List your business on several digital platforms like Youtube, Instagram, Facebook, and Google. Try to post a regular article or blog or videos that may help you in building a loyal customer fan base, and leading to a profitable business chain.
What are the requirements to Start a Cake Business from Home?
- One should have a basic baking skills and some knowledge about cake recipes ingredients and techniques. If you don’t have the skills, you can learn it online through several article(NOT TO PAID COURSE).
- You should have a basic business skills that includes marketing, bookkeeping, customer management, and quality control system.
- Interested entrepreneurs may need to invest in procuring kitchen equipment, ingredients, and raw material supplies.
- You’ll have to obtain a food license, safety permits, other required license from local government body.
- Last but not the least, You need to have enough capital to start a cake venture and should be ready with few more bucks to withstand for initial few months.
Final Takeaway – Summary
Overall, Starting a Cake Venture from home may not require a huge investment but may prove to be a profitable and fulfilling venture for an aspiring entrepreneur. With a right skills, proper mindset, marketing strategy, and deep market understanding may help a new business owner to expand and create a significant impact in their local market.
And with further franchising technique or self-owned business operation, one may grow their presence across the country in no time. A cake venture started from home can require an initial investment of ₹50,000 to ₹70000, which an return a growth potential of 25-30% as a net profit margin.
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Want to explore more? Then check out below franchising opportunities.
Tea & Café Franchise, Ice Cream Franchise, Food & Beverages, Delivery, Dealership/Distributorship, Business Ideas, and Apparel Franchise
FAQ
Is Cake Business Profitable?
Ans: Absolutely yes, if executed perfectly. Cake business can be started from a home with a initial investment of around ₹70,000 that can provide a return of approximately 35-40%.
Where can I buy Raw materials at an affordable price?
Ans: It depends on you, either you can choose a local market or trusted shop, or to buy a complete range at an affordable pricing, you can visit the amazon store and place it all at once. DON’T Miss out to check their deals.
