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Cake & Loaf Bakery is one of five semi-finalists in the Globe's Small Business Challenge contest

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Nicole Miller, left, and Josie Rudderham opened Cake & Loaf Bakery in Hamilton about six years ago. Today they are semi-finalists in The Globe and Mail’s Small Business Challenge Contest. The pair make freshly baked bread, cakes, pies, eclairs, cupcakes and more in the cinder-block and red-brick house that serves as storefront and artisanal kitchen for the business.Glenn Lowson/The Globe and Mail

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Ms. Rudderham at the Challenge contest event on July 29. She and Ms. Miller employ close to two dozen workers. The two met while studying pastry arts at Niagara College in Niagara-on-the-Lake, Ont. “We literally sat down for one coffee and decided we would start a business,” recalls Ms. Rudderham. “We were both really jaded about bakeries, which were using a lot of frozen products and turning bakeries into factories.”JENNIFER ROBERTS/The Globe and Mail

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The company has five departments: pastry, bread, custom cakes, savoury foods, and candy. Their goods are produced from scratch using local ingredients, Ms. Rudderham says. “One of the things we’re really proud of is the fact that we’re creating quality employment that pays as well as is possible for our business,” she says. “It’s a physically demanding place to work, but people here love their jobs.” Cake & Loaf now has two locations, with the second one in the Hamilton Farmers’ Market.Glenn Lowson/The Globe and Mail

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At the Challenge event in June, where the five contest semi-finalists made their pitches. The drawing shows the founders' plans for expanding their business beyond the one-storey structure and adding a community space.JENNIFER ROBERTS/The Globe and Mail

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As Cake & Loaf continues to grow, the founders want to keep the personal touch that’s become as much of a trademark of their business as their baked goods. They would like to expand Cake & Loaf’s original store to include a public space where customers can sit down to eat, and where they can play host to baking classes and community events. Ms. Rudderham estimates this expansion will cost about $150,000 and hopes to finance it with money from the Challenge contest and from community fundraising.JENNIFER ROBERTS/The Globe and Mail

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Ms. Miller at the Challenge contest event. Ms. Rudderham says, “We’re in a neighbourhood that’s very residential but is seeing more businesses popping up along the street, so we would like to grow as the neighbourhood grows.”JENNIFER ROBERTS/The Globe and Mail

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