Local Professional Targeting

Ayaan runs a homemade baking business called Teens to Table, selling cookies and baked goods to local establishments and schools in New Jersey. He's currently facing challenges with scaling production while maintaining quality and is considering hiring help.

Business Overview:

• Freshman in high school running a baking business for one year
• Did $4K in revenue last year, projecting 600% growth to $25K this year
• Currently bakes everything himself (cookies, brownies) but needs to scale

Distribution Channels:

• Local establishments (bakeries, ice cream shops)
• Schools (products available during lunch service)
• Sells to school suppliers

Pricing & Margin Challenge:

• Currently making about 80¢ per cookie (when sold for $1)
• Margins too thin to support hiring help

Growth Strategy Recommendations:

• Target higher-margin customers:

  • Sell to "richer customers" who are less price-sensitive
  • Focus on local entrepreneurs (real estate agents, dentists, car dealerships)
  • These customers care more about the story and supporting young entrepreneurs than price

• Leverage reciprocity principle:

  • Pitch to car dealerships about giving free cookies to customers
  • Position as sales tool: "When customers eat a delicious cookie, they feel taken care of"
  • Frame as high ROI: "A $1 cookie that helps close even one $35,000 car sale pays for itself"

• Increase prices:

  • Approach existing customers about price increases
  • Frame honestly: "I'm 14, figuring this out, need to hire help to meet demand"
  • For new customers, start with higher prices from the beginning
  • Increase perceived value through packaging, story, and community impact

• Test gradually:

  • First test in Excel to validate the model
  • Start with one hire before expanding to multiple people
  • Cut bait if the economics don't work out