How we got together online to boost our cupcake businesses

Cupcakes are very popular and lots of new businesses are baking and decorating to satisfy the nation’s sweet tooth by supplying local cafés and shops. Now two cake-making social networking groups have sprung up helping these small bakers to market their wares more widely. James Ainsworth reports

Many commentators cite the TV series Sex and the City as the catalyst for a growth in the cupcake industry. Does this mean we’re slaves to fashion? Or are cupcakes — as a sort of guilt-free bite-sized treat — naturally appealing in a recession?

Maybe there’s something else at work here. Like many niche industries, the world of cupcakes has developed its own online communities where sellers can share good sales and marketing knowledge and information. Perhaps this social exchange is responsible for more confident and successful cupcake manufacturers and sellers?

Two such groups, the linked Cake Biz UK, and Cakes Uk Style can be found on the Flickr image-based network. Supported by Flickr’s ability to host and organise images and related discussions, the groups perform two functions: Cake Biz UK limits itself to discussion of business issues; Cakes Uk Style is the place for cake-makers to share technical cake craft information.

The two groups host everything cake-related, from queries about whether ganache can be made with white chocolate to the now legendary ‘Pricing Bingo’ thread where images of cakes are shown and members guess what price it should have sold for and what price it actually sold for. A lesson in pricing has been learned by many through a spot of community-sourced fun and sharing.

Meet the administrators

The groups were set up by Karen Labett of Tasty Little Cakes and Svarna Singh of The Little Cakery.

“Many of us were asking the same questions, but there was no UK website offering what we needed. Therefore, we decided to start our own support group,” explains Karen.

Svarna explains why they chose Flickr to host their group. “The ability to share hi-resolution images with anyone is made immensely easy by Flickr,” she says. “The ability to create a group brings together people that have the same interests. Furthermore, the discussion boards have allowed it to become so much more than a photo-sharing website.

Karen adds: “Overall, these facilities are easy to use, easy to access and affordable — it doesn’t get more affordable than free! — which is what makes it a great platform for the Cake Biz UK, group. Images not only provide group inspiration, but can be used as examples for business-related queries.”

The administrators screen all requests to join the group to make sure that a member will add value and are genuine cake-makers.

“From a numbers perspective, the group has grown very organically since it first started back in July 2009,” continues Svarna “It now has over 100 members. I don’t think the goal is to gain a certain number of members by a certain time. It purely exists to benefit those who are looking for business advice on their cake business.”

Meet the members

But how do members benefit, really? This is what three of them told us:

Jen Cooper, Jen's Cakery:

“I honestly don't think I would have left my previous job as a chemical engineer and set up my business had it not been for the various cake groups on Flickr. I was already in business when I joined Cake Biz UK, but it has been invaluable. It's pretty much the only group I check every day!

“Flumpette's ‘Pricing Bingo’ thread was the greatest business analysis tool ever, dressed up as a bit of fun. It made me realise that I was underpricing my cakes — and I wasn't the only one.

“I would absolutely recommend other businesses to have groups like ours. It’s cheaper than therapy, and the wealth of advice is just amazing. I'm sure it’s good for business, too. If I’m unable to take an order, I frequently pass on the details of those Cake Biz UK contributors that are local to me.”

Cat Beurnier, Little Miss Cupcake:

“For much of the past year and a half, I feel like I have been baking in isolation. There are very few bakers in France that do Anglo-style baked goods like layer cakes, cupcakes, and so on, and most of them are French. I’m learning a lot about the business via trial and error.

“I think the model that has been created here is wonderful. The discussions are easy to follow and topics are easy to search. I like the element of having to join the group, which means that I can discuss things in close to privacy, meaning the questions or statements I make here are not going to turn up in a Google search.

“I would highly recommend seeking out a group like this for anyone in any industry anywhere.”

Liana Stevens, Star Bakery:

“My business started as a part time venture in January 2009 and has recently become my full time source of income since January 2010 after I was made redundant from my full time day job.

“I originally started looking into local networking groups I could attend, but I couldn't find one that fit in with my childcare options so I turned to what I could find online.

“Business has been very busy for me with increasing public interest in cupcakes and many younger adults purchasing cupcakes as gifts, whereas previously the buying of cakes has always been done by a slightly older audience.

“It’s great that more and more smaller shops and cafes are now stocking cupcakes as these shops tend to get local stockists in to supply them, which is great news for us small local businesses!

“I do believe they are a ‘fashion food’ right now, but I don’t believe cupcakes will ever fall out of favour with people. Cupcakes are merely the next progression of cake in the bakery market and they are the perfect affordable treat for those still counting the cost of the recent recession.”

There is great support to be found in niche networks. If you can’t find one on your platform of choice, Flickr, LinkedIn, Facebook or Ning, why not start one yourself and leverage your contacts of retailers, suppliers and fellow businesses to get the community going.

More on social networking:

• How to use social media to market your business — for free
• Nine steps to getting started with social media
• Social media - right for small firms?