A little background: I was planning to get my home kitchen licensed for commercial use, but I've just gotten the official word from my city zoning department that I cannot operate a baking business within a residential zone. My health inspector would have given me the ok, and I wasn't going to have any storefront or signage, but nevermind that...
So now I'm looking into renting a church kitchen. However, I'm just starting out and I don't have nearly enough business to afford monthly rent. I was thinking of offering to pay them an hourly/daily rate, or perhaps a percentage of sales. Has anyone done this? What would be a fair fee for something like this? Any advice would be great!
There was anther thread about this that I remember:
A non-profit like a church can not rent their kitchen to a for profit business, they'd lose their non-profit status
I read this at the link posted above. Now I don't know what to do. Where else can I go?
Here is the best advice ever:
Enjoy your cake hobby--you don't have to make it your life's work and sole support or partial support. Find a charity and a silent auction to give a cake to. Find underprivileged kids that would enjoy some cool cupcakes--at a community center or a home.
Give to a church in a more needy area. Bake for the police department and the firehouse.
Bake for the folks working in the emergency room or trauma center. Bake a cake for the Salvation Army or the Mission in your town. Treat those folks! Talk about a payoff! Find out where they are doing a meal on Christmas for the homeless. Bake your butt off!
Find a nice job somewhere to support your cake habit/hobby.
I do enjoy the hobby, but I also have people who have been offering to pay me, and from what I understand, I can't accept payment. I'm not looking to make a living off this, I just don't want to end up in trouble.
Do you have any Elks, VFW or Mason Lodges in your area? My husband's Mason Lodge rents out it's kitchen to a caterer.
oh, the church thing is ok! I just read the ruling in the court case referenced above, and it's fine.
So back to my original questions...
Do the math and figure it out. It's the hard part of having a business.
You determine how much it costs you to produce your goods.
You figure out how much it costs to pay the overhead.
This is how you figure out how much you gotta make to break even.
The scant difference is profit.
Goggle 'commercial kitchen rental".