4 questions to ask yourself before setting your cake business New Years resolutions.It’s that time of the year when draft a plan to do acts of self improvement like losing weight, eat better or quit smoking. Praying more, be closer to God, be more spiritual.For me I also promise to spend quality time with family members. This is normally done at the end of each year.New Years resolutions are just like a personal plan for the year.As a mum entrepreneur, this year I have decided to do new year’s resolutions for my business instead.In business this is in form of a yearly business plan.How many of you reading this now writes a long list of these of resolutions that you do not follow? How many of you have very professional business plans you drafted or was created for you by your business advisor but have never referred to it since you started trading?I remember one year my husband and I spent all night doing a long list of our new year resolutions in 2007, but by end of January 2008 we had abandoned all the resolutions and went back to old ways.Research has shown at least 88% of people fail to follow though with their set resolutions. Why do this resolutions fail? The main reason why our resolutions fail is that we set ourselves unrealistic goals.Our New Years resolutions need to be achievable, realistic and timed.Before you sit done this year to write yet another long list of resolutions, take a moment to ask yourself these 4 simple questions.
1. What did you do well in your cake business this year?What do you think contributed to your success this year?A Simple income and expenditure chart will help you clearly see we’re your income came from and what you spend most of your income on. (See charts below) This will help you to review your performance of the previous trading year.My husband is an accountant and has taught me to record every Business activity daily in my diary. This is good because if you wait till end of the year to do this you will forget the important transactions.Get an accountant if you can’t do it yourself.
2. Were your financial projections paralleled to the results you achieved?
Financial projection is a powerful tool to motivate, inspire and help you focus on the development of your business in the future. Each year set your set a realistic target of how much you expect to earn from your cake business.
Its not easy to know what will be your realistic financial, this is best to proffessional accountants or business mentors
How many wedding cake orders are you expecting to get this year?
How much money are you expecting to earn for each service?
Setting theses targets will guide you into writing a clear business plan to follow
3. Were some cakes popular than others?A glance at the filled in income chart below will show you which products or services generated the most income for your business.That product should be what you should promote more and improve on. In cake business this could be wedding cakes versus birthday cakes. As Eme always teach at Cake PLC, find your niche, find your market and stick to it.If there is a particular product or service that did not do well, then make a plan to improve it or stop providing this service. When ever i stay up all night making a cake, my husband always pass by and ask me what the customer paid for it. If its not worth the time spent on it stop!!!!!!!!!!!!
4. What mistakes did you make?Was your marketing and pricing strategy right?Did you make a profit or loss?What when wrong?Mistake happen for a reason. Take every mistake as a lesson learnt.Evaluate you feedback good and bad. If there is a particular cake recipe customers did not like, improve it or change it. Advertise as new improved or launch a new recipe. In most supermarket aisles you see some products with a mark (new improved recipe).
These questions will help you identify business strength and weakness, while allowing you to prepare for a better profitable year. Remember cake decorating is a very challenging and demanding industry. Do not lose heart or give up.You are in this business because you are talented and passionate.I wish you all a merry Christmas and a happy prosperous new year.