From : U.S. Small Business Administration
Location : Washington , DC |
Question :
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Reply :
Thank you very much to everyone for the great questions and enthusiasm for CakeLove and Love Cafe. All of the steps I've taken to grow my business have been rewarding as well as educating. In running a business I'm fulfilling a dream and the best part is that I get to change directions and shape that dream everyday. My best of luck to everyone as you continue your venture. Please visit blog.cakelove.com for more info on my experience in running CakeLove and Love Cafe. For pics and product info, look at ww.cakelove.com. A new season of Sugar Rush will renew on Food Network in October on Saturdays at 2pm. The news season will be a lot of fun so enjoy! Thank you to the SBA for the opportunity to address the webchat community. Today's webchat will be archived at www.sba.gov/chats Again, thank you everyone. Follow your heart and good luck! Warren Brown |
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From : Kelly Mahon
Location : Washington , DC |
Question :
At first, did you find it hard to establish a clientele for your indulgent cakes a city that has the reputation of being, perhaps, a little stuffy? |
Reply :
The biggest challenge I faced was getting people to understand the variety of our products and how best serve them. I've enjoyed the process of marketing cakelove and one of the best campaigns has been to "Serve Cake at Room Temperature." We're all butter based and when cake and buttercream are eaten straight from the fridge, the flavors will fall flat and the cake may taste dry. Some people like it cold, but most don't. Our campaign has helped tremendously to take away confusion. DC is a high powered town and we understand that people have a lot going on and need their service to be complete. We love the challenge and have fun with it at the bakery and cafe. |
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From : jean mashako
Location : Chesapeake , Virginia |
Question :
I have a business plan already but now how do I go about financing it |
Reply :
It's great that you have a plan. Nice job. Share it with others, even people who you think won't be into reading it. Talk to strangers about the bigger picture of your business plan. Shop it to banks. Meet and greet bankers with your exec summary and go into the financials. I think being fluent in the numbers is the best way to earn their confidence. Don't forget to talk up the personnel where it's relevant. Banks want to know not only what the product or service is, they also need to know that the infrastructure exists to manage the operations so the business can exist. |
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From : Marvin
Location : Centreville , VA |
Question :
What type of legal services did you retain initially and how has that changed over time? |
Reply :
Yes, it's changed. Everything has really. Now we have legal services for various needs and it's all been very helpful. A lot of the services come by referrals and I suggest that for others. If you're needing referrals please let me know via my blog.cakelove.com I'd be happy to elaborate there. |
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From : Dee
Location : Frederick , MD |
Question :
How did you identify and market your services in a area that there are plenty of bakeries |
Reply :
Well, I started small and drove around DC in my truck with samples for people to try- managers at cafes and things. That was tough and never wonderful, but it was good enough. The distinction with Cakelove is the methods of production and quality of ingredients. We blend European and American styles of baking to create products that are made from scratch, not too sweet, all natural and made with love. That combo translates into tasty cakes and things that people have been into. Once we saw that we kept innovating and expanding the product line. |
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From : James Jones
Location : Fort Washington , MD |
Question :
I am very new to Business ownership; actually I just said one day that I am going to do it. I went downtown got an EIN, found a site that I could use to create a website, submitted my site to search engines and now I am looking to sell my products to various government agencies. As of now my business is not doing great. There are a few sales here and there, but I need some sort of grant to help me expand, acquire merchandise, and marketing. Most grants however are not geared towards expanding businesses as they are for facilities to offer help and advise. Any suggestions? Thanks |
Reply :
Be sure to research and have a strong basis to your claim that your business will succeed. Passion and enthusiasm are excellent and essential, but make close honest analysis of what you're doing to see that the sales are possible. |
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From : Tony
Location : Washington , DC |
Question :
What can you do to separate your business from others to be more competitive? |
Reply :
Branding - make a creative and distinctive experience in patronizing your business. It's your shop, let people know it by enveloping them when they enter your zone. Create something that pays attention to the very last detail and be sure they know what business brought the experience to them. I don't mean clobbering them over the head with a logo on everything. It's more about the whole look/feel/vibe/ that takes them through every encounter with your business. |
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From : Marsha Dexter
Location : Milwaukie , OR |
Question :
I would like to purchase a franchise. I already have the franchise picked out and the cost for this purchase. My obstacle at this moment is my low credit score. Most likely I would be able to come up with 20% of the price of the franchise price within the next year. My debt is low and I have everything paid. |
Reply :
Franchising can be a great way into business but it's not always a sure thing. And it's not quite like working for yourself. Myself I wouldn't thrive as a franchisee but not everyone is the same. That's one thing that makes this country great, that we can exhibit our differences. So, look into all of the ups and downs of franchising by researching on line to see other people's experiences. |
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From : jenina williams
Location : walls , ms |
Question :
How did it all begin? |
Reply :
Well, it all started on a lark. No, really I was always interested in building a food business but never knew how to do it or what I could sell. I never ever dreamed it would be cake. I've cooked since I was a kid for my folks and family so you can believe that I was quite frustrated in that I hadn't started with food until I was 30. When I made a New Year's resolution to start baking I found that people really liked cakes, and I remembered that I really liked them too. From there I kinda always had my eye on cake. |
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From : Charles Norton
Location : Cherry Hill , New Jersey |
Question :
I'm planning to start a Cell phone bus. and I was wondering how do I separate myself from everyone else, how do I make people come to me and my the other cellphone stores? |
Reply :
Seems like a tough market to me but I know that I am regularly losing service and more, when I call I get very very very long wait times for the customer service people. Like 45 minutes and up. So, if you can address that, I think it'll be helpful. |
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From : Mikki
Location : |
Question :
What was the least expensive form of marketing you used in the very beginning? |
Reply :
Just talking to people about what I was up to. Takes a lot of energy but the cost is low! |
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From : Thaddeus Averhart
Location : Springfield , Ohio |
Question :
I am dead set on starting my own business in automotive aftermarket retail sales. I know this is going to require some startup money. My impression is that a business plan is essential to the loan acquisition process. My background is Engineering, not finances. How important is it to forecast numbers in the business plan and what are some of my better options for help in starting and completing a business plan? |
Reply :
It's essential to forecast the numbers. They're guestimates when it comes down to it, but those with sound assumptions based on solid research will win support from lenders. Look on-line and to trade associations for help with getting the percentages for expenses. Without that you'll be flying blind so reach out to those in the field for guidance. |
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From : Becky Maxwell
Location : Danville , Ohio |
Question :
How did you pick your employees for the bakery, I'm opening a bakery and I need a baker and so many say they're bakers and turn out not to be,so how do you pick them? |
Reply :
It's tough to find skilled, experienced bakers. I wish that more education was happening for that. Great schools are out there for contacting to look for candidates and we do that, but we also rely heavily on training bakers-and all staff members. Training costs are always high but that's just apart of doing business. |
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From : michael hartmann
Location : south san francisco , california |
Question :
My question is , are there programs that provide funding to start-up a new company for the products that I have invented and have patent pending. Funding would cover manufacturing and start up working capital? thank you |
Reply :
Venture Capital firms do that all of the time when the product promises big returns. A large stake in the company is usually required for that type of funding, and not every product is desired by VC firms. I'm a fan of debt-financed growth b/c it gives the business owner the greatest amount of control. The disadvantage is that growth is not instant and the debt burden sits on the owner. |
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From : Michael
Location : |
Question :
For the past five years I've been doing quite a bit of traveling in overseas locales and I notice that there's was an open an available Bus. Market for Clubs or "Cash Cows". Yes, there's always research however what would you suggest as far as getting Licence,Bus. Passports, and visas. Where would you began and what inspired you as an entrepreneur to change careers? Thanks for your time and convenience. Email: black_onyx777@yahoo.com |
Reply :
Sorry, I'm not sure of what the question is. |
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From : Clarence
Location : Allen , CA. |
Question :
How did you get the funding to start your business. |
Reply :
City First Bank of DC made me a loan offer that was guaranteed by the SBA. |
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From : Felice Eckhouse
Location : Chicago |
Question :
if one is INC, rather than LLC doesn't that eliminate some of the legal problems referred to by Mark, before? |
Reply :
Not necessarily. I would have to suggest consulting an attorney and/or googling for background info on the subject. |
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From : lisa
Location : |
Question :
HI, I HAVE TRIED EVERYTHING TO GET MY BUSINESS ON IT'S WAY. I AM UNABLE TO GET A LOAN, SO MY NEXT APPROCH WAS FINDING A GRANT TO HELP ME. I AM A SINGLE MOM TRYING TO MAKE ENDS MEAT. I KNOW SOMEONE OUT THERE CAN HELP, I JUST DONT KNOW WHO? CAN YOU? |
Reply :
I'm afraid I can't help you directly but I wouldn't hesitate from using the web as a source for finding people/building a network. |
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From : Kelly Mahon
Location : Washington , DC |
Question :
DC is s very competetive city. How did you successfully compete for your space on the market? |
Reply :
Very competitive, indeed. But I lucked out and found a space that no one could really use. I ran fast to see it and when I did I didn't hesitate to state my interest in it. I didn't have all of the money sorted out yet but knew that I would just have to make it all work. Creating the pressure was OK, it made me work hard and I knew I could manage it. Going into business does create a good deal of pressure so be sure you're OK with what may come with starting-up. |
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From : Selena Swartzfager
Location : Jackson , MS |
Question :
When starting a small biz in the service industry, ie business consulting, that you feel strongly about...what is the best way to find the customers that need your service and how do you get the word out about what you are offering? |
Reply :
We get the word out by giving product away. Freebies are loved by everyone and gets an excitement going, so they're a good fallback. |
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From : Melissa Bosch
Location : Miami , Florida |
Question :
I have been so disillusioned with the corporate world as well (although making good money) and have decided to venture out to do what I have always wanted to do - open a bakery/cafe! Are there any beginner's "tips" you think you can give me so that (a) I don't lose hope and (b) I am successful?!?!?!?! You are such an inspirational person - please help ME! Any guidance/words of wisdom will be greatly appreciated. |
Reply :
From one baker to another, I most certainly advise this: bake from scratch, use all natural ingredients, bake with love, and enjoy spending time with your customers. People love bakeries so half the battle of becoming successful is already won--the customers want to come to the store. What they really need is a fairly decent excuse so they can put themselves in front of your display case and say "why not, I'll have one of those." Keeping core principles that keep the product real help tremendously, but so does having a great time with the people who choose to come through your storefront doors. |
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From : Jeani Dickens
Location : Oklahoma City , OK
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Question :
I was disabled in an auto accident so I have bad credit now. How can I get seed $$ or some money to open a quality Thrift shoppe that also has a food & clothing ministry for the working poor in an undeserved, disadvantaged community? Thank You! |
Reply :
Not sure. Perhaps go to the local business community development corporation if their is one. Also, go the municipal office on business development to find what services and partners they work with to help people get started. Government and non-profit orgs are very good places to look for general start-up help on finance needs and general "how do I get there from here" type of questions which everyone has and are totally valid. |
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From : yvonne
Location : porstmouth , VA
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Question :
I love to design 1 of a kind flower arrangements and would like to start my own business. but need serious advise on how to get started as well as grant funded. |
Reply :
Find some local florists and talk to them. Maybe go one or two towns over if you're in a small area. The flower business, any business, will have it's own ups and downs and speaking with a player in the field will be essential to devising your business plan. |
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From : Debi McKinney
Location : Phoenix , Arizona
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Question :
Would like to buy a candy franchise and need to know how to get a small business loan. |
Reply :
Candy...yum! Seek out your local SBA office from the sba.gov website. They're connected with local lenders who may be able to help. |
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From : Penny Vickas
Location : Wood Dale , IL
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Question :
How long was it before you started to see profit? |
Reply :
It takes time. Sometimes up to a year before the numbers start to go deep into the black. That's not uncommon, no matter what level of business you're at. A lot of big businesses say that they start new ventures all of the time and never know what will pan out. When something makes a successful showing, then they pour money into it until the rewards/profit start to appear. |
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From : Kelly Mahon
Location : Washington , DC
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Question :
What about DC made you choose it as the place to establish your first business venture? |
Reply :
I already lived here and I'm a news junkie so I like being here. |
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From : Thomas Grady
Location :
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Question :
Repeat b/c wasn't sure if previous question got through as error note came up - You general and first instincts on a Chocolate and Wine cafe? |
Reply :
Chocolate and wine cafe- sounds great. See the Mars, Inc. version of this in Chicago, Ellas or stella's --something like that. It's trendy and has a lot of marketing dollars behind it. A small start-up I think would do very well with such a concept. |
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From : Thaddeus Averhart
Location :
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Question :
How did you go about getting information on your competitors and information about your local market for your business plan? |
Reply :
Study and research. I walked around and visited all that i found. I drove around town in LA, DC, NYC, Cleveland, San Fran and many more. Many friends and family helped me out here to understand what the cake market is/was like for their region. I'm forever grateful to them for their help with that early research! |
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From : Colin St. Clair
Location : Frisco , TX
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Question :
Did you consider buying an existing business and applying your concept to it? If so, what happened, if not, why not...? |
Reply :
I wanted to begin from scratch and didn't see anything out there that I wanted to do. |
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From : Kelly Mahon
Location : Washington , DC
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Question :
Here in DC, you're something of a local celebrity. Is there another prominent DC figure that you'd love to see in your bakery? |
Reply :
We love everyone and anyone. Whenever there is a chance for folks to stop in, we'll welcome them! |
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From : shoma balleram
Location : melbourne , florida
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Question :
I am having problems deciding what type of business to open in melbourne,florida. |
Reply :
Deciding on what business to go with is very personal. Make it with the advice and counsel of people you are close with and some people who should be impartial. Most of all, ask yourself what it important. |
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From : ramana.v.v.
Location : visakhapatnam , andhra pradesh
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Question :
I want small business details. |
Reply :
Then you've come to the right place. We're trying to get them out to everyone! |
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From : Tony Jenkins
Location : Silver Spring , Maryland
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Question :
What was the biggest challenge with regards to financing the startup?? |
Reply :
Carving out the time to write a business plan. When I first took a leave of absence from my job I thought I'd be able to write the plan and bake cakes. Well, doing both almost drove me bonkers. And |
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From : Kelly Mahon
Location : Washington , DC
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Question :
Did you ever think, when you first started baking, that making cakes would propel you to national stardom? |
Reply :
Not stardom and I'm flattered at the distinction, but I always have aimed for having a national presence with my bakeries. We're growing locally to figure out all of the kinks with storefront operations and then plan to move beyond the DC region. |
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From : Heidi Lawrence
Location : Reynoldsburg , Ohio
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Question :
I am wanting to start a real estate investing business. However, I do not know where to find the financial help that I need to get started. Any suggestions for women looking for grants and special financing? |
Reply :
Go to the local SBA and chat them up. Really, they'll be a starting point for local resources. Banks and lenders go to the SBA to market their services for small business start-ups, so let the SBA help you. I suppose find their closest office via the web. I'm from Ohio - Cleveland. I don't know where Reynoldsburg is but I'll have to look it up! |
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From : Andrea
Location : ventura , Ca
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Question :
How would I find a company to make my business cards? |
Reply :
vsitaprint, ltd on the web will make low cost business cards- try it. |
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From : Carl A.Smith
Location : toms river , nj
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Question :
To whom it may concern,I Carl A. Smith Would like to know how to get started with my own business,I looking forward into start a unisex hair solon ,barber shop.please can you forward me some information on how I can get started and what I need to get started,thank you for your professionalism. |
Reply :
Please see above for an answer to this question. |
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From : Brand-di Palmer
Location : san jose , california
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Question :
Hi Warren, I want to start my own dessert shop. I am almost finished with my business plan, but where do I get financing. I have a family and no capital to put into it. This has been my passion for a long time and like you I make things for my friends all the time. They are my biggest supporters. I have no doubt that I will succeed, but where do I go from here? |
Reply :
Speak with a local small bank to see how the can assist you. At the same time, seek guidance from the local SBA rep to know what other lending sources are near to you and accessible for what you want to achieve. |
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From : CARLOS GUANILO
Location : LIMA , LIMA
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Question :
iD LIKE TO CONTAC TO YOU |
Reply :
Please feel free to e-mail through my blog at blog.cakelove.com Thank you! |
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From : Aixa McLean
Location : Atlanta , GA
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Question :
What is the very FIRST step you must consider before opening a business? |
Reply :
Make a plan. Be sure to make an agreement with yourself to be honest about what your goals and capabilities are. |
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From : A.S.
Location : Blowing Rock ,
NC
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Question :
Is their a minimum credit score to obtain a small business loan? |
Reply :
Not that I know of. |
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From : Thomas Szmanda
Location : Rockford , IL
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Question :
I will be unavailable to hear this live; will this be recorded to listen at a later time. Thank you. |
Reply :
Perhaps the SBA moderator can answer this. |
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From : Crystyl
Location : Petersburg , VA
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Question :
My boyfriend and I are looking to start a business(retail or sports bar) and we don't have the necessary funds to do so. We've tried every get rich scheme, but all they seem to want is more money and it doesn't work. We are determined to do this. Is there any advice you can give us on how to get funding? What struggles did you face getting started? |
Reply :
Talk to the SBA representative in your area and ask about non-traditional debt financing institutions. This may be community banks but it can also be business coalitions that make loans in conjunction with banks and the SBA. Family and friends can be a resource but I realize that this may not be a viable alternative all of the time. A small business doesn't have to be huge to get going. Perhaps finding the right product that can be small can be enough to get momentum and then enough attention for financing to be closer/more available to you. |
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From : Mark Imburgia
Location : Chicago , IL
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Question :
I suspect most established businesses have, from time to time, difficulties with collecting payment from some customers. Whether the difficulty stems from a customer's outright refusal to pay for products or services received, or a the inability of customers to punctually submit payment. For a new or small business dependent on this income and cash flow, the potential for disruption seems more pronounced, and pursuing other enforcement or collection remedies can be lengthy and costly. The quick answer would be to ensure the business has substantial capital to allow for the delay in payment, but this solution may be impractical or otherwise less than ideal. How can a new or small business better deal with this common and potentially disrupting problem? |
Reply :
That's a tough one. The key thing is to keep up to date with clients and vendors. Letting invoicing go or get out of control is a sign of weakness to the party on the other end of the table. I'm sorry to make it seem so adversarial but an imbalance of power can quickly develop where invoicing isn't monitored to resolve problems that are require memory and recall. When there is a problem on an invoice and too much time passes before it's redressed, your client may shrug their shoulders and deny ever receiving the product in the first place. Be vigilant, suss out your business partners, map out and record the terms, be sure to set aside time in your schedule to invoice, cease new shipments where warranted due to violations of the terms, do what you can to maintain relations but never compromise your principles. That sort of business isn't worth it anyway. |
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From : Mark Imburgia
Location : Chicago , IL
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Question :
There is a common belief that if the majority of an LLC's or closely held corporation's initial capital is sourced by a third party lender (e.g bank loan, capital venture firms) rather than capital contributed by the owners that the owners run the risk of having the "corporate veil" of the company pierced by claims of the company having been undercapitalized. Is this true? What other actions can a small business owner take to ensure separation between the business entity and the personal entity? |
Reply :
It's difficult and never fool proof. Piercing the corporate veil of a LLC may not be too difficult. I'm not speaking with case law behind me but the reality is that with a start-up every vendor wants a personal guarantee from the owner so that puts one on the hook. The income is taxed personally so I think that would help poke holes through it, too. In my business I use the LLC structure to organize some of my entities and it works well. But after having studied some corporate law, it seems that owners bear the responsibility of corporate governance quite a bit. |
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From : Paul Cherry
Location : Corinth , TX
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Question :
Making money takes money, from lawyer to entrepreneur isn't that big a stretch. What was your initial start-up cost, how much of that was out-of-pocket and how can one accomplish the same without the luxury of a large bank account? Thanks, from a low wage earner baby boomer currently employed as a machine operator/adjuster. |
Reply :
When I got serious I started with about $10,000 in expenses charged on a credit card. Before that was a few hundred dollars and lots of time in expenses on pots and pans. When I was ready to move to the retail level I secured a SBA guaranteed low-doc loan from a community bank for $125,000. The bank worked with me (City First Bank of DC) I think in part b/c I worked hard to help them understand the unconventional vision I had: a bakery focused on cakes. |
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From : John G. Pillow
Location :
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Question :
how can you stay focused on your homebased business while trying to do your full time job? |
Reply :
In the long term you can't. I mean, focusing is about letting one thing dominate your mental real estate. And as you grow your business it will likely overwhelm the current full time job. If you can juggle many balls then you'll be fine but be sure not to overload your personal capacity. Eventually one job/venture will have to be carved out and moved to it's own sphere. |
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From : Janetta McDowell
Location : Fontana , CA
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Question :
What were some of the challenges you faced before you started your business Tips for those considering a new venture..please answer...If I knew then what I know now... |
Reply :
Challenges before I started: Capital- the best thing is to have the money to finance the venture lined up and in place. That's hard to coordinate in the best timely fashion b/c any start-up has a lot of moving parts and many people to inform, persuade, and keep in contact with. Keeping good lines of communication with your financing net is highly suggested. Forecasting- it's impossible to know what the future will hold but gathering info from a variety of sources to understand your market's dynamics is critical. Get percentages of what a similar business normally does--access this by joining associations and if you can finding mentors that will share their numbers. Sleep and exercise- an entrepreneur is only as good as they can act, so be sure your body, mind and spirit are ready to go everyday. For me that means regular exercise. When I push myself physically I have a barometer to know and live up to for pushing myself mentally and spiritually for my business and my personal life. |
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From : Annetta Wright
Location : Elizabethtown , N C
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Question :
How did you come to chose between your job and going into your own business? |
Reply :
When I couldn't continue moonlighting b/c my health was suffering I knew that I had to act. Ignoring the opportunity that seemed like it was staring me in the face was too tempting. |
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From : Lovado Bryan
Location : Cornelius , NC
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Question :
How would you go about obtaining license to bake form your home kitchen to sell to the public. |
Reply :
Research the rules of the local health department/code. Many prohibit the sale of food made in private homes. It's done to protect the public from kitchens that don't meet commercial standards which are designed to protect the public from food borne illnesses and hazards. |
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From : Mary
Location : Palm Bay , FL |
Question :
Lokking for pointers on getting started on a Staffing Business |
Reply :
I'm a retail food entrepreneur so I'm sorry I don't have any pointers here. Query the market and see what the standard practices for hiring or creating a cast of personnel...apply to a few yourself and see what they ask. |
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