Renting Growing Pains

Business By funfoodie2

funfoodie2 Cake Central Cake Decorator Profile
funfoodie2 Posted 5 Oct 2007 , 2:01pm
post #1 of 1

I've found a great lady that is renting me space in her commercial kitchen. She sharing her equipment and seems very supportive.

Here is my dilemma. I now can advertise and expand my business. However, now that I have "overhead" per hour, I'm kinda freaking out about profit margins now.

Example: 3 cakes = $245.00 I bake for 4 hours. I am estimating each cake to take at least 2 hours to decorate. That is 10 hours. So if I do all the work at the rental location, I'm out $150.00 already. Not including the ingredients.

I now this is an awesome opportunity for me in the long run and I will need to get more cake orders to make it profitable, but in the meantime. Ouch! lol

I guess I'm looking for moral support. icon_biggrin.gif

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