So I know things will vary depending on the state you live in, and I know its kind of a personal question, but I was wondering for people in the midwest (specifically Iowa) what are your average monthly expenses? Im trying to figure things out for my business plan, so I can open a bakery, and to be honest im kind of stumped. Also what kind of insurance should I have and whom should I go through to get it? If nobody feels comfortable answering thats fine, but just thought I would put itout there....for those who do answer thanks sooo much!
Rent and labor will probably be your biggest expenses...rent can be anywhere from $500/month (if you rent a kitchen with no storefront for a few hours every week) to $3000/month or more for a retail bakery in a prime location. For labor you need to look at your own wage plus payroll for other employees who mind the shop. Payroll and overhead in general will be much lower if you skip the retail storefront.
You will have to also wait to plug in heat and air expenses based on the space you choose. It could be efficient or drafty. You may get some help with the amount of the electric bill from the power company, but that will still have many factors.
State Farm Has a specific policy for bakeries. It runs $275 to about $350 yearly. You can add property protection to that. I have $25,000 property protection for an extra $25. But you will need to cover the building and your buildout too. Ours is covered in our homeowners. If you deliver, you will need commercial auto insurance. If you have employees or interns, you will need workers comp. That gets pricey.
Also if you need to take out a loan, the interest payments can be pretty steep. Depending on the area and how much work needs to be done, a full buildout of a retail bakery can run $50K-$100K or more.
I didn't even mention the loan because if you don't have collateral, this will be difficult, and impossible with no business ownership experience. You may want to check this out first if you will need to borrow the funds.