AT HOME IN THE BAKING BUSINESS
(Page 3 of 5)
By the way, your license will probably cover only "plain"
baked items . . . that is, bread, rolls, bagels, etc. It's
best not to sell any cream pies, custard-filled pastries,
or similar items that could spoil and make someone sick.
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[2] Maintain good records! This is vital . . . since such
data will probably be the only tool that can tell you
whether or not you're making a profit on your goods.
Furthermore, some of your expenses can be deducted from
your bread income at tag time (yes, you do have to give
Uncle Sam his cut), but you won't be able to take advantage
of deductions that you forget . . . or can't
verify.
Record-keeping needn't be a formidable chore if you simply
make it a regular practice. For instance, before I bake
anything for sale, I figure the cost of the ingredients and
make up a price sheet for each recipe. Of course, that
calculation does involve spending some time weighing and
measuring the contents of standard-sized packages of flour,
spices, etc. so that I know exactly how many cups, ounces,
or whatever are contained in each package. Once that's
done, though, I simply divide the price of the package by
the number of cups or ounces to arrive at the cost of each
unit. Then it's easy to figure up what I've spent for the
ingredients in any one recipe.
I also write down all my orders in a 35¢ receipt book
— the kind with carbon paper attached — and
total them at the end of each month. I then subtract the
ingredients cost of each order, and my mileage expense for
the month (which I record in a little notebook in my car),
and what's left is my profit !
[3] Keep track of your supplies. After all, a frantic dash
to the midnight market to pick up the molasses you thought
you had could really eat into your net income! I shop for
perishables once a week and purchase staples, on a monthly
basis, through a food co-op or (sometimes) a grocery
wholesaler.
[4] Stick to what you do best. Early on, I tried to offer
every kind of bread I could think of . . . from bagels and
brioches to Swedish limpa. After a few charred fiascoes,
though, I narrowed my list. My mainstays now are whole
wheat bread, oatmeal bread, and cinnamon rolls.
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