Meet Katie: the entrepreneur who set up her own baking business after missing out on The Great British Bake Off

• Business name: Cake or Death 

• Industry: Food and drink

• Founded in: 2019

• Top business product: Business bank account

• Key learning: “I think a lot of people assume you need a new idea for a business, but I disagree. If you find something you really enjoy and it has the potential to work commercially, then give it a go!

Life’s too short for bad brownies. 

That’s the motto for Cake or Death, a vegan bakery business that was founded by Katie Cross in 2019. 

Since then, Cake or Death has gone from strength to strength, and customers across the UK can’t get enough of its sweet treats. 

Here, Katie reflects on the past six years and explains how a rejection from a famous bakery competition set her on the right path… 

What motivated you to set up your own business? 

That is a difficult question, because although I always wanted to run my own business, I didn’t know what type of business it would be.

Previously, I worked in business development in the nonprofit sector, specifically running fundraising teams. One of the biggest jobs I had was for a charity that was building and running schools in Africa. I joined that business at the very beginning, so I experienced what it was like to set up something from scratch. 

But after 15 years of working in this sector, I felt it was time for a change. I learned a lot of transferable skills and I knew that I could use them commercially for my own business. I had always loved baking, and I even applied for The Great British Bake Off. I didn’t get on the show, but I got really far in the process and the judges were very complimentary about my bakes. After this experience, it really inspired me to set something up myself. 

I think a lot of people assume you need a new idea for a business, but I disagree. If you can find something you really enjoy and it has the potential to work commercially, then give it a go! That’s what I did with Cake or Death. 

How did you start the business? 

I started by doing some afternoon tea events and then I tried market stalls at the weekend, but these ideas weren’t accelerating the business financially. So that’s when I decided to move into wholesale and I supplied businesses in London with cake. This worked, but again, I couldn’t see how to make a big profit from it. 

So, then we finally landed on the iteration of the business you see today, which is ecommerce. I think it’s important to adapt your business to the market, and sometimes if you wait around for the big idea or lightbulb moment, it might never come. That’s why you’ve got to get on with it and give things a try! 

What do you like most about running your own business? 

I think it’s the challenge and that every day is different. Running a business allows me to constantly challenge myself, and I really thrive in this environment. I also love coming up with new product ideas and it’s exciting to see how the team works together to make them a reality. 

How did you come up with the name Cake or Death? 

I was inspired by an old comedy sketch from Suzy Eddie Izzard, which is called Cake or Death. I thought it would be a really funny name for a cake business. I did ask for permission for it to be used and I got the go-ahead! I think it’s definitely a memorable name for a business and people seem to love it. 

Why did you decide to focus on brownies? 

I did some market research in London and I asked local cafes what cakes they would love to sell. The overwhelming response was vegan cake, or specifically a really good vegan brownie. Well, challenge accepted! I started making the brownies in 2019 and I made it my mission to create a delicious vegan recipe. But then the pandemic hit. 

How did your business navigate the pandemic? 

Well, my wholesale customers had to shut, so I was at home thinking I had lost my business. But then I had an idea to send the brownies through the post. They were letterbox size and our brownies are very robust because they are extremely fudgy, so I thought it was worth a try. 

I made myself a website that had the ability to take payments, and I had some boxes already prepared. I then posted on Instagram about our brownies, which felt a bit like a cry for help! 

But friends and family started ordering them for their relatives, and soon we got more and more orders. We found that when someone sent a box of brownies, the recipient would then send another box to someone they knew – and the chain just grew and grew! We ended up sending more than 1,000 boxes a week. 

How did you manage the initial funding and budget for the business? 

I didn’t have any funding or investment, aside from my husband supporting us financially while I set up the business. I had around £3,000 in my bank account and I used this to get started. The first year was really on a shoestring budget, and working in a bakery was a big shift from sitting at a desk every day. I used domestic baking appliances to start with and then I borrowed a community kitchen as they charged very low rent. This meant I kept all my outgoings very low, as I didn’t want to pour money into an unproven business. 

But, during the pandemic, our profits increased dramatically and we decided to move from London to Devon, as the new business meant we could be based anywhere. I then set up our bakery with commercial ovens, and hired a small team so we could keep up with the demand. 

Were there any financial products that helped during the early days? 

Yes, I have a business bank account with Starling and it’s excellent. I find it really easy to use and the app is very intuitive. The customer service is also great as whenever I have a question they always respond quickly. I would definitely recommend them.

Starling also ran a small business competition about four years ago and I won a prize, which meant I could buy some equipment. So it’s important to keep an eye on competitions like this as it can really help small businesses. 

What’s next for Cake or Death?

The big plan is to grow – I would like to triple the size of the business and diversify our product offering. Brownies will always be a core product for us, but we’re looking at offering different products to give people more choice. I want to become the one-stop shop for gifting. 

What would you say to someone who is considering setting up a business?

I would say just go for it! Crack on and get started as that’s when you start to really learn what works and what doesn’t work. Plus, try and test out your ideas without a big financial investment. This might not work for every business idea, but if there’s a way to do it, then it’s worth giving it a test first. 

You also need to prioritise your finances as it will make or break your business. A good accountant can help with this and they can be a real support in the early days.  

This case study is for informational purposes only and is not intended as financial or professional advice. The results described are specific to the individual's personal experience, so please consult with a qualified professional if you need financial advice.