For a small local cake business I found a few (fairly cheap) facebook ads worked really well. They gave my business a boost as well as word of mouth advertising from friends and family. I do still have a website with more photos and prices, as I don't believe you should be totally reliant on social media; after all, they could start charging or pull the plug at any time, and all would be lost! A combination works really well, especially for cancellations or last minute offers!
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I can imagine that Facebook would work really well for a local cake business. Facebook ads are very cost effective.