Utilities typically account for 5-10
Posted: Sun Jan 19, 2025 7:07 am
Utilities typically account for 5-10% of annual income in food businesses. However, since you are operating from home, you can estimate you will be on the lower end of this spectrum, so figure the added utilities will be about 5% of your revenues.
Cost of Ingredients
Another advantage of focusing on home baked goods is that bakery ingredients—including flour, sugar, eggs, and salt—are relatively inexpensive. To track how much money you are spending on ingredients, you can use this baking cost calculator to determine the cost of ingredients per individual product.
You should price your finished goods according to the market switzerland buy cell phone number list home baked goods in your area. On average, however, the cost of ingredients for your baked goods will probably be around 30% of your final price.
What Bottom Line Profit Can Your Home Baking Business Make?
A man with handfuls of baked goods wears an apron in a kitchen.
You can determine your bottom line profit by subtracting your expenses from your revenue.
Predicted Expenses
Assuming you decide to spend some money in startup costs upgrading your kitchen to accommodate the extra baking, here are some expenses you will incur in the first year of your home-based baking business:
Kitchen upgrades (range hood and ventilation fan): $714
Prep table, shelves, miscellaneous kitchen utensils: $300
Basic marketing $183.88
ServSafe certification: $15
Business license: $100
Liability insurance: $228
These predicted expenses add up to $1,540.88. We haven’t calculated revenue yet, so these expenses do not include the cost of ingredients, which should be about 30% of your sales. It also doesn’t include the utility differential for the extra energy you need to bake your products, estimated at 5% of sales.
Cost of Ingredients
Another advantage of focusing on home baked goods is that bakery ingredients—including flour, sugar, eggs, and salt—are relatively inexpensive. To track how much money you are spending on ingredients, you can use this baking cost calculator to determine the cost of ingredients per individual product.
You should price your finished goods according to the market switzerland buy cell phone number list home baked goods in your area. On average, however, the cost of ingredients for your baked goods will probably be around 30% of your final price.
What Bottom Line Profit Can Your Home Baking Business Make?
A man with handfuls of baked goods wears an apron in a kitchen.
You can determine your bottom line profit by subtracting your expenses from your revenue.
Predicted Expenses
Assuming you decide to spend some money in startup costs upgrading your kitchen to accommodate the extra baking, here are some expenses you will incur in the first year of your home-based baking business:
Kitchen upgrades (range hood and ventilation fan): $714
Prep table, shelves, miscellaneous kitchen utensils: $300
Basic marketing $183.88
ServSafe certification: $15
Business license: $100
Liability insurance: $228
These predicted expenses add up to $1,540.88. We haven’t calculated revenue yet, so these expenses do not include the cost of ingredients, which should be about 30% of your sales. It also doesn’t include the utility differential for the extra energy you need to bake your products, estimated at 5% of sales.