Your bakery budget is a plan you’ve likely put a lot of time and effort into. You may have spent hours poring over your notes and your spreadsheets, and making sure your operating expenses are in line with your revenue. Now comes the truly exciting part: putting your plan into action.
When you’re opening a bakery, you’re betting on yourself. You’re betting that your skills and your drive will mean success for your new business. And you’re probably right! Bakeries are a staple of American neighborhoods, with countless families getting their breads, muffins and other treats from their local baker.
You want your bakery to stand out and become a must-visit location in the neighborhood, but part of your success will involve making your bakery budget work for you. How?
Know Your Break-Even Point
How will you know if your bakery budget is working and your business is turning a profit unless you track expenses and income?
Designing a bakery budget is a great first step, but monitoring your cash flow closely will help you know when you’ve reached the break-even point and how to maintain profitability.
Accept Credit Card Payments
Accepting credit card payments will help boost your bakery budget. While many bakeries cringe when they see high processing fees, think about what the customer wants. By allowing payment flexibility, you’re enhancing the customer experience and making it much more likely that they will return for a second (or third, or fourth) visit.
Don’t Depend on Cash Flow from Sales Right Away
Your bakery could have an amazing influx of sales right away — as soon as you open your doors — but don’t bank on this. Make sure you have enough money to get you through the first few months without having to rely on unknown sales figures to fill in the gaps in your budget.
Consider Equipment Financing
When you finance bakery equipment, you’re reserving funds for more immediate expenses, such as ingredients, marketing and employee paychecks. Many commercial appliances outlast their payment plans, such as commercial mixers and water chillers. If your credit is good and you’re approved for budget-friendly financing, choose your payment plan smartly and use this to your advantage, making extra room in your budget for startup costs.
Make Quality Your Top Priority
You can’t go wrong if you put product quality at the top of your priority list. From equipment selection to ingredient purchases, make wise decisions focused on one goal: producing the best baked goods your customer base has ever tasted.
At Dough Tech, we want to help you with immediate and long-term success by providing tips on building a bakery budget, but also by providing high-quality commercial mixers and other baking appliances you need for your shop. Contact us today to learn more about our products.