Is anyting easy!! I am trying to become legal. And I finally found a commercial kitchen that I can rent. The owners of the kitchen are requiring that I have a minimum of $1,000,000.00 product and general liability insurance.

Well, the insurance people want to know what my annual sales will be? I don't know!! I only intend to do this part time for now but I need to insurance in order to rent the kitchen space.

How do you estimate what you will be making? I can't use my current sales, becasue I don't have any. The occansional cake/cookies for family and friends really doesn't add up to much.

Help!

how much product would you like to be selling per week? realistically? 10 dozen cookies a day, 3 cakes a week? you have to come up with a daily or weekly average and then figure out what that would be for the year. They know it'll be a guesstimate for now, next year when you renew you can give more realistic numbers.

Can you estimate how many cookies/cakes you made last year, then put a value to it (what you would have charged if you'd sold them)--that might give you at least a ball park figure.

When I went in to get my insurance, they told me to give my best guess, and then the premium would be adjusted the next year when I had a concrete number... That doesn't really help with your current situation of NOT KNOWING, but you might start with estimating an average cake order cost and number of cakes per week you think you may get, starting off slow. I gave them a number of $10,000 IN GROSS SALES, and then they will readjust the insurance price after one year. I'm a part timer, too, and didn't know what to tell them, but you might just ask how exact it NEEDS to be...

thanks for the feedback!!!