I have what might be a fantastic opportunity to rent space/time in a commercial kitchen locally. I am trying not to get too excited (!!!!) before I figure out the details. My question to you guys out there is, what sounds like a reasonable rate? I am considering offering a percentage of my cake sales. This way I pay only when I have cakes, instead of paying through the nose during the slower months. I don't know how busy I will be because I cannot advertise until I'm legal. It's hard to figure out if it will be worth the time and start up costs... I'm currently calculating costs for business license, ficticious name, liability insurance, etc.....
Any advice from those of you who have made the leap from hobby to business would be tremendously appreciated! Thanks

Anybody have some advice? I'm thinking of offering 20%. Just wondering if this seems fair to you guys...?

Anybody have some advice? I'm thinking of offering 20%. Just wondering if this seems fair to you guys...?

Come on, guys...someone out there must have an opinion on the matter...Anyone???
I'm supposed to meet with her and see the kitchen this coming week. I want to be sure I have a ballpark figure in mind before I go.

How wonderful you have that opportunity! I can not help you because I have no idea, I was also looking for a rented commercial kitchen here in Texas and could not find one around where I live.
I hope someone answers you, I have read here that some CCers are renting. It would be great if you could have at least a base price before you meet with the person in charge. Personally I think is a good idea to pay a percentage on your cakes. But the 20% would be on the gross price of the cake or on your profit? I think, in my HO that 20% on the gross price is a bit too much. Hope this helps a bit.

Everyone is caught up on the soap opera on the other thread. But I have never really liked soap operas so....

I am thinking of making the leap as well. But it is just in the "what if" stage for me. But that 20% sounds pretty steep. I know I would feel much better with a set amount to budget both as a landlord and as a tenant. How much time are you going to be in there? How much of that time are you going to be actually baking, i.e using more electricity/gas? Will you have people come in for tastings or to pick-up? All of these things in my mind would affect the cost.

Mind you I am just a home baker for now. Maybe after the drama is done someone more knowledgable will be able to respond.

BEST of luck in your new endeavor!!
Lisa

Thanks for the response! I knew someone was out there!! Do you think 20% of net is a fair deal? I don't want to give away too much, but I also want to make it an attractive enough deal to actually get the space...
Does anyone else out there pay a percentage of their cakes??

I actually use our local fire department kitchen to do mine. I dont use it for tastings or making my flowers at but just for baking the cakes. The guys at the fire department are really nice and they let me do it for nothing, but I comphensate them with leaving them cakes or cookies and they like that.
I dont have insurance because I really dont have anyone but myself that does it. Im not sure if Im totally "legal" by doing this but I am licensed. Its enough for the health department that I do my work in a sanitary kitchen that is more than fire safe!! lol
But I know Indydebi I think does it from her home and is licensed. I believe she said that she actually turned her garage into her bakery. But she might be able to help you with more of the legal aspects. Or maybe call your local Department of Agriculture and find out exactly what you need.