What does it Cost?

https://www.waspbarcode.com/buzz/10-hidden-costs-running-small-business

 Cost/Profit can create a fine line in business.  The cost of making a product vs. what it can reasonably be sold for determine if a product is worth making.  In a bakery I am looking at cost all the time.  Cost doesn't mean just my ingredients, but it also has to include the labor.  Over the years I have battled this dilemma.  What can I reasonably charge for a product compared to the time invested into that product.  As food prices are going up, I have to evaluate if I can continue to make a product with the my current pricing, raise prices, or discontinue that product.  

Here is an example.  I love brownies, but the cost of butter, chocolate, and other ingredients to make a single pan of brownies is around $10.  Add my time and other expenses invested in making brownies, and I would have to sell an 8x8 pan of brownies for $20, which seems excessive.  The cost of making brownies vs the price I could reasonable sell them for does not create a profit, so I don't sell brownies.

  

*inspiredtaste.net

So what are other costs in building a business?  Not all are monetary.  Time is an ever increasing cost in business.  To create more time sometimes a business owner will sleep less.  In the short term this is not a big problem, but over a long period of time this can have an adverse effect on health.  Sleep and health become a cost of business.  Eventually this will have added effects on a family, a marriage, and in the quality of products a business creates.  In the end, when time becomes a commodity we trade for higher production, a business owner can lose everything, even the business.  

How do you balance the cost of business?  You establish priorities.   Don't get me wrong, I love to bake.  I love to create something that is beautiful and tasty.  This is how I get creative, how I express myself, and how I show love.  I am also the kind of person that will push myself to my limits even when doing something that I love.  This is where priorities come in.  My first priority is to my family.  I will often choose them over work, and sometime that will mean turning down orders, or closing for a short time.  Down time with my family allows me to recharge and be ready to tackle challenges again.  This week has been spring break for my kids.  It has also been busy as I still have classes and assignments.  I closed the bakery to orders this week to give a bit more time for family and fun. 

Hiking with my kids is one of my favorite things to do.

Good thing I live in an amazing place with lots of hiking trails. 

My other priorities are to my faith and my health.  I make sure to keep time for building my faith and serving in my church and my community.  I know that God strengthens me when I strive to keep Him as a priority in my life.  He is my partner in business, and will guide me in each decision I make.  

I also make time to build and strengthen my body.  My body is a gift from God and enables me to do all the things.  I try to honor my body with exercise and good food.  

Rosemary Sourdough with cream cheese, avocado, and micro greens.

In life we always have to evaluate the cost, and keep perspective of what is most important.