How to Start a Cake Decorating Supply Store

If you have a passion for baking and cake decorating, opening your own cake decorating supply store is a great business idea.  It will allow you to earn an income while doing something that you enjoy.  As with any successful business, the first step in opening a successful store is to develop a business plan. 

1. Develop your business plan.  This is the first and most important step in beginning your own business.  Develop a thorough business plan for your cake decorating store.  Include the types of items you will sell, what services you will provide and your targeted customer market.  Include plans for hiring employees and making a profit. 


2. Secure financing.  In most cases, you will need a small business loan to help with the start-up costs of your store.  You can find a good rate on a business loan through local banks and credit untions.  Contact them to inquire about the loan process and being your application.  Most banks will request to review your business plan prior to approving your loan.


3. Find a storefront location.  Decide whether you want to buy or lease your space, and enlist the help of a commercial real estate agent to help you search for available properties.  Choose a location with a lot of car or foot traffic.  Opening your store in an established shopping plaza can be a great idea, as you will have a great amount of foot traffic simply from visitors to the shopping plaza.


4. Register for your business license.  Licensing laws and requirements vary by state, but you will need to obtain a license prior to opening your cake supply store.  Contact your state's licensing board to inquire about the licensing process in your state.  If you decide to hire employees or incorporate, you will need to obtain a federal tax ID number from the IRS for tax purposes.


5. Purchase your supplies and merchandise.  If you are working with a bare space, you will need to purchase shelving and display racks for your store.  You will also need display cases and a checkout counter.  In addition, you will need business supplies such as a cash register, credit card machine, computer and other basic office equipment.  Determine what products you will sell and order them from suppliers.  Allow plenty of time before your opening to receive your products and stock your shelves.


6. Advertise your grand opening.  Colorful signs and balloons can draw attention to your store front on your opening day.  Run ads in local newspapers.  Hand out flyers and business cards.  Consider offering an opening day cake tasting, sale or special to draw in a crowd.