Diaper cakes are usually used as centerpieces for baby showers and gifts for expectant moms. They are actually made of rolled or folded diapers and adorned with ribbons, bows, stuffed animals and gifts for mother and baby. You can start a diaper cake business for a small initial investment in some inventory and a little effort to market your new products.
Practice making diaper cakes before you start your business. Even if you're not planning on making the cakes yourself, you need to be familiar with the process, and you may have to train your employees as well. Determine if this is something you can do out of your home or if you'll need to rent a shop.
Do a budget and project how much you'll need to sell to break even each month and recoup your initial investment. To do this, you'll need to price how much the diapers and accessories will cost and figure rough prices for the diaper cakes. Obtain any financial assistance you may need.
Buy the stock you need to make your diaper cakes. You can call manufacturers directly to locate suppliers who can service smaller companies. Also decide on a name for your company and file a fictitious name registration or paperwork for an LLC or corporation.
Set up a merchant account so you can accept credit cards. If you don't have a storefront and will be accepting only online or phone orders, expect to pay a higher discount fee. Determine what your payment policies will be (e.g., charging a fee for bounced checks).
Start marketing your diaper cake business. Create a website and display your prices, along with pictures of sample cakes. Talk to area hospitals, doctor's offices, midwives and children's clothing stores to see if you can contract with them or set up small displays in their lobbies. Your biggest source of advertising will most likely be word of mouth, so tell everyone who will listen about your new diaper cake business.