What Do You Do With Your Profits?

Business By jammjenks Updated 1 Dec 2008 , 6:30am by Denise

jammjenks Posted 6 Nov 2008 , 8:32pm
post #1 of 27

I am particularly interested in home-based operations since that's what I am. I have been doing cakes for about 2 years, in addition to my full time job, and have only recently started having a little $ to show for it. I started out by using any money I make to purchase more cake supplies, but now I'm not having to buy as much as in the beginning. I have a business checking account and have my cake money in there. I also handle the finances for our household, so I keep all cake money separate from our regular household/bill money. I have big dreams of using it for a shop or something one day, but I was curious to see what the rest of you do with your profits. Do you save them up like me to try to do something with later? Do you put it in with your other money?

26 replies
MicheleH Posted 6 Nov 2008 , 9:43pm
post #2 of 27

I too, only bake from home and I don't have any intention on doing anything else. I keep seperate books for home & biz. I started out using the $$ for supplies, but now I use for fun things like family vacations, fun extra purchases. But, I've also used it for things like paying the LP bill in the winter!!

UltimateCakes Posted 6 Nov 2008 , 9:46pm
post #3 of 27

Still buying supplies. Soon will save for a 2nd Honeymoon!

Mencked Posted 6 Nov 2008 , 9:57pm
post #4 of 27

I keep my cake money separate from family money. I have saved enough in the last couple of years to finance a bake shop at my house--I'm in the process of setting one up now. All of the equipment is still in my garage awaiting the arrival of the pre-fab building I'm putting it all in....All paid for in cash--thank goodness for ebay and craig's list and increasing cake orders over the last couple of years. I admit we have relied on my cash (I call myself the First National Bank of Mencke) for many things, especially during the first couple of years, for family trips, etc....but I really try to keep it separated now!

keyshia Posted 6 Nov 2008 , 9:58pm
post #5 of 27

I will soon be baking from home (only one more inspection til I'm all legit) but have a question. When I did the cakes before (in Turkey) I either used the $ to buy other cake stuff, or to contribute to the house. Do you all use a percentage? I was thinking of taking a percentage for myself, a percentage for biz expenses (like contributing to electricity etc) and the rest in the bank for future cake purchases...is this a flawed thinking? What portions do you all consider "yours"? Sorry...new to this all and still reading up on it!

mandysue Posted 6 Nov 2008 , 9:58pm
post #6 of 27

I'm not a very good business person, I guess...I use it just like any other money...if I have to pay a bill, I do that. If not, then I might buy myself a treat like a new purse or an outfit. Mostly, I invest it back into cake decorating supplies or classes. It's nice to have that extra money!

Mandy

Eisskween Posted 6 Nov 2008 , 10:01pm
post #7 of 27

Back into the business. They say you really don't make a profit for the first two years, so I say "what profit?" LOL Someday, but still building here.

onegr8girl Posted 6 Nov 2008 , 10:09pm
post #8 of 27

I keep mine in a seperate account with a seperate debit card. I buy all of my supplies with it, etc. The left over money funds my horse showing hobby (board and training for the horse, lessons for me, showing, expenses at the shows, etc). This year I'm hoping to landscape my very small backyard with it as well.

layers Posted 6 Nov 2008 , 10:09pm
post #9 of 27

I too have a business from home. And I'm still buying supplies. When will that part ever end? So as of now I have no money saved. Sometimes I think I'm not charging enough and at other times I think I'm charging too much. What do you guys charge on average per slice?Any ways I hope one day I could save enough to buy a store, that's my dream and maybe a holiday with my husband and kids.

indydebi Posted 6 Nov 2008 , 10:21pm
post #10 of 27

Gee, I kinda got this food-shelter thing going for me right now! icon_rolleyes.gif

gr8cakemaker Posted 6 Nov 2008 , 10:25pm
post #11 of 27

25% of all the money I make goes into a college fund for my two year old son! Even if its only a couple dollars, that adds up pretty quickly. Then 50% goes back into my business, buying supplies or a neat cake stand to rent out or something. The other 25% goes into my cake savings for one day opening a bakery...probably not until my son starts 1st grade since I am a SAHM and LOVE it! Oh I work from home (obviously) too! balancing my cake money is something that was pretty difficult at first, but I had to break it down like this to stay on track. Hope this helps!

korkyo Posted 6 Nov 2008 , 11:34pm
post #12 of 27

I set some aside to go to the next convention, some kept for general expenses in the shop, and right now anything extra is going to pay for my new roof!! icon_cry.gif At least it's only the 500.00 deductable!!

missmeg Posted 7 Nov 2008 , 3:48pm
post #13 of 27

I'm like the OP - right now about 75% of it goes to purchasing supplies and ingredients. What's left is my Mad Money, and I do what I want with it. Sometimes it's for stuff that the household can't afford (school shoes in August comes to mind), and other times it's for a date night with me and dh. But dh understands that it's MY money, and at this time does not get dumped into anything household related, except by my designation.

kimmypooh79 Posted 7 Nov 2008 , 8:12pm
post #14 of 27

At this point I only do 1 cake a month for profit and anything I make goes to groceries.

marmalade1687 Posted 7 Nov 2008 , 8:30pm
post #15 of 27

Once or twice a year I make a deposit into our retirement savings plan...sort of my contributions into it since I am "self-employed". The other part of my profits goes towards household improvements (since this is where my business is located!) - we just did hardwood and ceramic floors a couple of years ago. It also pays for biggies like family trips down south that my whole family needs after I go through "wedding season" - I SHOULD be able to write it all off for stress/medical reasons! LOL! I don't think the government would see it that way though... icon_sad.gif

Wesha Posted 29 Nov 2008 , 3:04pm
post #16 of 27

I icon_biggrin.gif

CakesByJen2 Posted 29 Nov 2008 , 7:15pm
post #17 of 27

My husband's income pays for all the bills, and my money (which is the money I make from cakes plus our tax refunds) goes for extras like vacations, the kid's extra-curricular activities, my clothes, furniture, home-improvement projects, etc.

littlecake Posted 30 Nov 2008 , 12:24am
post #18 of 27

i pay my bills and buy food....with what's left over, i am saving up for a new roof for the bakery.

i never thought of this before, am i the only one here who makes a living at this?

KoryAK Posted 30 Nov 2008 , 1:14am
post #19 of 27

mortgage!

costumeczar Posted 30 Nov 2008 , 12:55pm
post #20 of 27

I fund my retirement account and pay for "extras" like the expensive new sewing machine I just bought (But it was on sale!!!) I also pay for vacations and kids' activities, pretty much.

karenm0712 Posted 30 Nov 2008 , 1:28pm
post #21 of 27

I just recently started charging for my cakes and all money that I have made (a couple hundred dollars! icon_smile.gif ) is going toward Christmas presents for our kiddos.

cakesdivine Posted 30 Nov 2008 , 2:42pm
post #22 of 27

Profits? what are those....just kidding. I currently take all my profits and reinvest it back into the business. There is still so much I need, and I am trying to get a new storefront before wedding cake season hits hard & heavy again. (I currently use the commercial kitchen at a church).

Kiddiekakes Posted 30 Nov 2008 , 3:02pm
post #23 of 27

The money I make goes to paying for bills and all the extras that kids need.We owed quite a bit of debt and we are now at a point where most of it is paid off.

indydebi Posted 30 Nov 2008 , 3:18pm
post #24 of 27
Quote:
Originally Posted by littlecake

i pay my bills and buy food....with what's left over, i am saving up for a new roof for the bakery.

i never thought of this before, am i the only one here who makes a living at this?




Heck, sometimes I feel good when I can keep the lights for the month! icon_eek.gificon_lol.gif

FullHouse Posted 30 Nov 2008 , 3:40pm
post #25 of 27

I have only been charging for my cakes for a couple of months. At this point, I'm just hoping to earn enough money to pay ourselves back for all of the supplies I've had to purchase to get started. Once we pay ourselves back, I hope to reinvest 50% into supplies (would love to have an airbrush machine and additional standmixer) and use the rest to help pay household expenses or someday even a family vacation.

leah_s Posted 30 Nov 2008 , 4:51pm
post #26 of 27
Quote:
Originally Posted by littlecake

i pay my bills and buy food....with what's left over, i am saving up for a new roof for the bakery.

i never thought of this before, am i the only one here who makes a living at this?




::waves hand::

This is my living. Invest some, pay myself a little, save a lot at this point.

Denise Posted 1 Dec 2008 , 6:30am
post #27 of 27

Pay my expenses and save the rest.

Last year I used all my "saved" money to pay 1/4 of my daughters car we bought her. Paid 1/2 for the new huge driveway and patio we poured and then had the metal roof put on the patio and bought the patio furnature and new grill. Lastly, I gave Honey Darling Precious a chunk of money to put down on his new Tundra...then I was BROKE! UGH.

Now I have saved a chunk again and I am going to buy myself a present for my upcoming birthday...wooo hooo can't wait.

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