Business Opportunity
Tanesha Wilson
MKT/431
July 31, 2014
Edward Foxworth

Business Opportunity
Although developing an idea for a new business venture may not seem difficult, but a business idea differs from a business opportunity. To properly assess an opportunity for a new business, one must analyze various aspects of the business, such as, demographics, niche market, and trends that occur within the industry.
Retail baking operations generate approximately $33 billion dollars annually (Center for Economic Vitality, 2011). During the past decade, cupcake shops have gained a tremendous amount of exposure in movies and on cooking shows. Recently, some experts in the food industry believe the cupcake trend is headed downward. Other experts believe even though the trend has tapered off some, gourmet style cupcakes will remain an industry favorite, especially if potential owners pay close attention to the current trends in the market.
This research will focus on three trends that many in the food industry believe will sustain the once booming industry. Market analysts suggest focusing on all natural, organic and gluten-free products is trending among those who just cannot stay away for the bite-size “comfort food.” A second trend in the cupcake industry is to not focus solely on cupcakes but to include other types of cakes, such as, wedding cakes and special occasion cakes. To accommodate the needs of its customers, A Piece of Cake will provide additional services. The last trend that has evolved in the cupcake industry is the size of the delicious treats. With more people counting calories than ever before, A Piece of Cake will focus mainly on producing mini sized cupcakes.
Business Concept
The business concept for A Piece of Cake is to become a premier cupcake shop on wheels. The idea is to operate a mobile cupcake shop eliminating the overhead costs of traditional store fronts. A Piece of cake will offer several cupcake flavors, which will be made fresh daily at a central location. The owners believe a key component of the success of this business opportunity is the accessibility the cupcake shop will provide.
Healthy Alternative With the on slot of many health initiatives, it is also a belief of the owners that another key aspect of the business’ success and longevity is to create a product that is all natural, organic, and gluten free, without comprising the taste. Across the country pastry shop sales are down, but certain markets are experiencing a surge. Health and wellness, even for sinful treats, has become the bright spot for many pastry shop owners. Today’s consumer wants healthy alternatives and they are willing to pay for it. According to Jeff Wells (2014), studies indicate customers will choose value over price and even though they want to save, most are not willing to sacrifice quality. Furthermore, with so many people suffering from various illnesses, it becomes necessary to provide a healthier alternative.
Special Occasion Cakes While others in the food service sector are experiencing a decline in sales, including cupcake shops, wedding cakes and special occasion cake orders remain the most promising sector in the retail baking arena (Anything Research, 2014). To operate a successful mobile cupcake shop, A Piece of Cake must have the ability to provide a wide range of services to its customers as well. In addition, the company’s website and brochure lists the additional products and services they will offer. Not only will providing specialty cakes increase the inventory, it will also boost sales. Over the last 20 years the amount spent on weddings has nearly doubled. The average cost for a wedding cake has also increase to about $550 dollars. Specialty cake prices can range from $3 to $10 or more per slice, depending on the design (Naylor, 2013).
Mini Treats Adapting to change is a necessary component to survive in an ever-changing market. Crumbs, one of the most recognizable cupcake chains and known for its four-inch tall cupcakes, closed its doors this year. Proving that more is not always better, the trend in the cupcake area seems to swing toward less is best. Because of this trend, mini cupcakes will replace the traditional size at A Piece of Cake, but the traditional cupcake will remain available by special order only.
Conclusion
Although developing an idea for a new business venture may not seem difficult, possessing an idea differs from taking advantage of a business opportunity. To determine the viability of a business opportunity, entrepreneurs must analyze various aspects within the industry, such as, demographics, niche market, and industry trends. The owners of A Piece of Cake believe keeping their expenses low with their mobile idea, capitalizing on the current trends in the market, and providing additional products, are the key components for success.

Reference
Anything Research. (2014). 2014 market research report on retail bakeries industry. Retrieved from http://www.anythingresearch.com/industry/Retail-Bakeries.htm
Center for Economic Vitality. (2011). Bakeries industry snapshot. Retrieved from http://www.pacificedc.org/Library%20Docs/Bakeries%20Industry%20Snapshot.pdf
Naylor, S. (2013, June 6). Wedding cake prices: 20 ways to save big. Huffington Post. Retrieved from http://www.huffingtonpost.com/2013/06/12/wedding-cake-prices-n_3423921.html
Wells, J. (2014). Expo west: Healthy baking trends. Retrieved from http://supermarketnews.com/blog/expo-west-healthy-baking-trends