If you have a knack for making diaper cakes, it can be a fun and profitable way to make a bit of extra spending cash. After all, who couldn't use a little more money in their wallet!
The best way to get started is to prepare a business plan. A business plan may sound like a scary proposition, but it does not have to be as complicated as some people think. It could be as simple as a one or two page report which answers these questions:
How much will an average cake cost to make? By buying in bulk or at wholesale prices, you can reduce the cost of materials needed to make a cake.
How much time will it take to create a cake? In addition to the cost of materials, consider labor costs (even if they are your own) in the equation.
How do you plan to market your diaper cake business? Determine how you plan to market your business, as well as any costs associated with your marketing plan.
For example, if you plan to sell your diaper cakes locally, you may want to look into how much it costs to advertise in your yellow pages or your newspaper. You may also have expenses if you set up tables at craft shows or related venues. Don't forget that there are also many inexpensive (sometimes free) ways to market locally - for example, by networking with baby boutique owners, florist shops, and other related businesses.
If you plan to market your business online or through mail order, research the costs associated with this, including web design, hosting fees, and pay per click fees, as well as fees taken by eBay or other retail sites that offer similar listing services.
What types of payment will you accept? By accepting credit cards, you will open up your client base. However, research the fees charged by credit card companies for their services.
What kind of profit can you expect to make? Once you look at your overhead expenses (i.e. materials, labor, marketing, professional fees, and other expenses), determine how many cakes you will need to make and sell in order to meet your income goals.
Finally, handle your business like a professional. Meet with your accountant to determine the potential tax consequences and to discuss the steps needed for proper record-keeping.
With a little pre-planning, making diaper cakes can be a fun, profitable business.
photo credit: tierrific!
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