Cake decorating supply shop

Home bakers, cottage food bakers, small bakeries and parents shopping for birthday cakes.

Retail markup on products, plus class fees and bulk sales to professional bakers who return regularly.

• Cake decorating knowledge
• Stock buying and inventory
• Customer service
• Basic bookkeeping

• Lease terms and rent, which are the biggest ongoing cost
• Sales tax permit with your state, and a local business license
• Certificate of occupancy or zoning rules for retail use, check with your city
• Selling edible items such as sprinkles and fondant may need a health department registration in some places
• General liability insurance and property insurance for stock
• Slow seasons and stock that does not sell

Startup costs are typically estimated at around $25,000 to $100,000, depending on your premises, fit-out and how much stock you buy. Lease terms and rent are the biggest ongoing cost, so review them carefully.

Monthly revenue is typically estimated at around $5,000 to $25,000, depending on location, product range and whether you run classes. Slow seasons and unsold stock can affect this, and the idea is estimated at a minimum of about 35 hours a week.

Check a sales tax permit with your state and a local business license. Check certificate of occupancy or zoning rules for retail use with your city. Selling edibles like sprinkles and fondant may need health department registration, plus general liability and property insurance.