One of my biggest failures in business came at a time that initially felt like success.
Our company, Candy’s Cupcakes, was experiencing rapid growth. Demand was increasing, and we were expanding our operations.
However, what I failed to recognise at the time was that growth does not just require more customers or revenue. It requires the right people and the right structure to support it.
As the business expanded, we needed to increase our workforce quickly.
In particular, we needed more kitchen staff and managers to keep up with demand.
Wanting to maintain momentum, I rushed the hiring process. At the time, I had very little experience in recruitment and assumed that filling roles quickly was the most important thing. In hindsight, this was a critical mistake.
As our operating hours grew, we also realised we needed an out-of-hours team to support the business.
We hired quickly to fill these positions, but without putting the right supervision, structure or expectations in place.
What followed was a gradual but noticeable decline in productivity and morale.
Without clear leadership and accountability, communication between teams began to break down.
Candy’s Cupcakes founder’s journey from home kitchen to £2m turnover
Core staff members started to experience frustrations with new hires who did not share the same work ethic or understanding of our culture.
Small disagreements grew into larger conflicts, and the atmosphere within the team deteriorated. Staff turnover became increasingly high, which only worsened the situation.
At the same time, our staffing costs began to spiral.
Because we were constantly trying to cover shifts, replace staff who had left, and manage inefficiencies, we were significantly overspending on labour.
What made the situation more difficult was that the full impact of these inefficiencies was not immediately visible.
It took several months before we truly realised how damaging the situation had become.
This period nearly cost us the business. For the first time in years, we found ourselves only just breaking even.
After so much hard work to build the company, it was a difficult moment to accept that poor hiring decisions and lack of structure had brought us so close to failure.
However, this experience became one of the most valuable lessons I have learned as a business owner.
Hiring quickly rarely works
The first lesson was that hiring quickly is rarely the right solution.
The cost of a poor hire, both financially and culturally, is far greater than the cost of taking the time to recruit properly.
We realised that building the right team requires a clear recruitment process, strong expectations, and a willingness to wait for the right person rather than settling for the wrong one.
We completely redesigned our approach to recruitment.
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Today, every new member of staff goes through a structured hiring process, a clear probation period, and thorough training.
If someone is not the right fit for the role or the culture of the business, we address it early rather than allowing the issue to grow and affect the wider team.
The second lesson was the importance of clarity and communication within a growing organisation.
We now make sure that everyone understands the company’s strategic objectives and how their role contributes to them.
Each team member has clearly defined responsibilities and targets so that expectations are transparent.
Most importantly, we have focused on building a strong team culture.
Today, we have a team of around 20 staff who are not only responsible for their individual roles but are also encouraged to contribute to the development of the business.
Staff regularly share ideas, use their creative skills to produce content, suggest new products, and highlight better ways of working.
Looking back, that period of failure was incredibly difficult, but it fundamentally changed the way we operate.
It taught me that sustainable growth depends on people, structure and culture.
By learning from those mistakes, we have built a stronger, more resilient organisation that is far better prepared for the challenges that come with growth.
- Candice Bannister began baking cupcakes from her home kitchen back in 2011. Last year Candy’s Cupcakes reported a turnover of over £2m and a fast-growing TikTok Shop.