Hobby or Entrepreneurial Business? Costings will show you which one you have
Costing a product in your home kitchen should be easy, but is it? All the elements of making your product are there in front of you but…
My mother in law made pies in our kitchen for a local market each week for several years. When she stopped our electricity bill fell by £100/month but it was never in her costings. That was a hobby but what if it were a business?
Don’t take costs for granted, as your sales increase these extra costs will bite, dramatically decreasing your profitability. Here are a few costs you can’t afford to miss:-
Are you Launch Ready?
Knowing whether you have checked all the necessary boxes before launching your product(s) is vital.
Costs you can’t afford to miss
- Your time – When you grow you will need to pay someone to do what you are doing.
- Wastage – you pay for everything gramme of every ingredients whether you sell or bin it
- Cost fluctuations – be aware ingredients may change each time you buy remember the other costs
- Utilities – ovens on all day costs money and your phone is not free.
- Admin costs – You need to make money to pay insurance, accountants and bankers.
- Marketing – Social media advertising isn’t free.
- Delivery costs – even if you did it all your time and vehicle have a cost too.