Create a realistic budget — and don't assume your numbers will be the same as your competitors. Make sure you learn the requirements of running a cake decorating business from a legal point of view.
But if this is your dream, go for it. For example, if there are already five bakeries offering doughnuts, you'll need to either create a kind of doughnut not being offered by the other bakeries, or choose another signature pastry.
Your budget is a roadmap that tells you how much money you have available to spend on everything. Cake decoration is one of the sugar arts that uses icings or frosting and other edible decorative elements to create patterns on plain cakes and make it more visually interesting.
You can lower that number by only buying what you need when you need it. As with all businesses, the fewer overheads you have, the lower your expenditure.
Cake decorators perform the same duties as those who work in a bakery, but often offer lower prices since they have lower overhead costs. These businesses may or may not offer birthday cakes, but because they are in the same business, you're both competing for the same clientele — those who consume baked goods.
Research Your Competition Chances are there are several if not dozens of bakeries in your hometown. Is your niche fondant cakes?
StartupSmart does some market research to help you have your cake and eat it too. Remember, you may be writing checks for a commercial space to lease, commercial ovens, refrigerators, work spaces, lighting, flooring and seating.