How Long Did It Take Before You Turned A Profit

Business By babeebk Updated 10 Jun 2011 , 6:59pm by bakingpw

babeebk Cake Central Cake Decorator Profile
babeebk Posted 8 Jun 2011 , 11:35pm
post #1 of 7

For those of you who own your own bakeries (not home-based), would you be willing to share how long it took you before you started to make a profit from your business? I'm toying with the idea of opening my own place. I've been stockpiling equipment now for almost two years (gotta love craigslist). I have a commercial fridge, a 20qt hobart, a deluxe oven and lots of s/s tables and other supplies. When/If I do find a space all I will need to purchase is my sinks and storage shelves. I will not be taking out any bank loans as I have been saving for this for a very long time. I've written a business plan and I'm just waiting to find the right location. I'm hoping to turn a profit within 6 that unrealistic?

6 replies
kristiemarie Cake Central Cake Decorator Profile
kristiemarie Posted 9 Jun 2011 , 4:08pm
post #2 of 7

In general, (not talking just cake business here) the first year you won't make money. I'd put the time line at 2+ without hesitation.

You have to consider rent, heating/cooling, electric, payroll, taxes (property and sales), credit card fees (if you'll accept them), food costs, supplies, gas for delivery....the list is nearly endless.

jason_kraft Cake Central Cake Decorator Profile
jason_kraft Posted 9 Jun 2011 , 5:04pm
post #3 of 7

6 months might be a good estimate if operating out of a rental kitchen, but if you are opening your own retail shop I think 2 years is more realistic.

Don't forget to take into account the opportunity cost of using your savings to build the business instead of in other investments.

louanne Cake Central Cake Decorator Profile
louanne Posted 9 Jun 2011 , 6:19pm
post #4 of 7

6 months is pretty unrealistic, sorry, i have been open since october and am just below breaking even point, most business are breaking even at 1 year and turning profit at 2 years. HTH

hellie0h Cake Central Cake Decorator Profile
hellie0h Posted 9 Jun 2011 , 7:01pm
post #5 of 7

I agree, 6 months is really pushing it for a profit. I did not have a bakery, I owned a sandwich/pizza/beer establishment. The mortgage, insurance, utilities, supplies, license fees, accountant fees, just because fees, take its' toll on your finances. I did not have a payroll to worry about as this was my family business, but if you hire employees the payroll and taxes, workers comp., ss...well the list goes on and on. Two or three years maybe, if you can stay in business, by the fifth year you should be doing well. I can only add, location location location. That was my downfall.

leepat Cake Central Cake Decorator Profile
leepat Posted 10 Jun 2011 , 10:12am
post #6 of 7

I opened my shop in spring of 07 and it looks like we may just finish the year in the black. That is if things continue on as they are.

bakingpw Cake Central Cake Decorator Profile
bakingpw Posted 10 Jun 2011 , 6:59pm
post #7 of 7

For me, 6 mos. to break even BUT 6 more years at break even! NO Profit. Finally realized I was killing myself for everyone else to make their money.

Quote by @%username% on %date%