When it comes to financial health, every financially responsible person should follow dos and don’ts. Here are six excellent financial rules of thumb that, if followed, can save you BIG!
Say NO to Credit Cards
Saying no to credit cards is a rule of thumb that every person should follow. I know some would argue that they are good for emergencies, but a better idea would be to use the money you save on credit card high-interest payments to start an emergency savings account, one that gains your interest. Credit card debt is a billion-dollar industry and mainly from the interest people pay, not the principle. Even if you have a fantastic credit score, say no to a credit card and keep it that way.
Don’t Buy an Expensive Vehicle
While many vehicles are a status symbol, paying a lot for status is not a good rule of thumb. The good rule of thumb when it comes to purchasing transportation is the final price should not be more than half of your yearly income. If you can’t afford to pay for a vehicle in cash, only buy from a dealership where you can get a decent interest rate and affordable car payment amount not to exceed a quarter of your monthly income. When negotiating, make the salesperson give you the final total cost of the car with and without interest, don’t let them only give you the price in the monthly payment amount. This way of presenting the cost of the vehicle often hides high-interest rates or vehicle price. And of course, as always, buy used if you can.
Be Choosy About Insurance
The rule of thumb on insurance is only buy what you need. Because insurance is something you pay into “just in case,” you must be smart when purchasing it. Some insurance is required by law, such as automobile insurance; therefore, get the best coverage but shop around for the best prices, I could make hundreds of dollars of difference. Health insurance, homeowners or renters insurance, and life insurance are other types of coverages you should have, but shop around for the most excellent coverage and the least expense.
10/10/80
Savings should be the number one priority of every financially responsible person. There is a rule that says save 10%, give 10%, and spend 80% as a simple means of allocating your income. While this is an excellent rule of thumb, this should be a starting point towards savings and giving. The most important thing is that you save, give, and thoughtfully spend. You can adjust the allocation percentages to fit your goals and lifestyle. But one rule of thumb that comes from the 10/10/80 method is that savings are first, not last. Warren Buffet explained that you should save first before you spend, not the other way around.
50/30/20
50/30/20 is another money allocation rule of thumb. This rule of thumb also has savings built-in, but only after debt is paid off. This rule is 50% of your income for necessities and bills, 30% towards financial goals such as paying down debt and savings, and 20% to wants, which is anything you desire to purchase that isn’t in the other two categories. This rule of thumb can be adjusted according to your lifestyle, but it does not prioritize savings like the 10/10/80 rule of thumb.
20% Down Payment
The 20% down payment rule is the idea that anything you will buy on credit should have 20% of the total cost saved before the purchase. This rule is mostly applicable to purchasing a home or a vehicle. The idea is that paying 20% of the total cost upfront will lower interest and payments, adding up to considerable savings when the final payment is made. This rule can be applied to anything you buy on credit, even if the place of purchase doesn’t accept a down payment. If you can pay down 20% of the total cost in your first payment, this will bring you to your payoff date sooner and save you money on interest.
Conclusion
Financial health and freedom should be every financially responsible person’s goal. While there are many things you can do to contribute to your financial health and freedom, using one or more of these rules of thumb will ensure you reach this goal.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Many people dream of owning their own business but often let that dream go due to the difficulty of successfully running a business. However, one corner of entrepreneurship is more easily obtained for those dreamers: the home-based business. Having a home-based business can be profitable and relatively easy to start. Here are the top five home-based businesses you can start TODAY!
Second-Hand Selling Online
In a once dominated market by eBay, second-hand or used selling has spread to other platforms, and in some cases, you can resell items for no fee to the hosting site. While platforms like Amazon and eBay offer a way to sell items worldwide, they come with fees and limits. These fees and limitations can be overcome easily by a savvy seller. Social media and selling apps offer the ability to sell items locally and be profitable without fees. Having a business page and using the marketplace on Facebook allows both local and worldwide selling for free. Fees only come into play if you want to boost ads. This type of selling is not for the lazy. You must obtain, refurbish (as needed), list, respond to customers, and ship items or meet for the exchange. However, some have made this type of home-based business extremely profitable, making the hustle worth it.
Photography
While it may be true that anyone with a smartphone can take amazing photographs, photographers go above and beyond in what they offer. This business is equally as quick to start but does require equipment. You can get a decent digital camera and lenses, essential lighting tools, and good photography software for under $2,000, sometimes well under if you’re a savvy shopper, and get started. Photography requires creativity and patience but can be profitable, especially if your photography is unique. But keep in mind this business is highly competitive, and you will need to stand out and offer high-quality final products.
Home Bakery
If you ask most owners of bakery shops how they got started, they will tell you they started with a home-based bakery business. The overhead is low as you only need to buy the ingredients in most cases and occasionally additional baking equipment. This home-based business does require a lot of time to be profitable, and you must love to bake. Some successful home bakeries specialize in one type of item, making it easier to keep it low overhead and a lot of product. Some baked goods can even be shipped, such as cookies and certain types of cakes and pastries that would hold up and taste great upon arrival. Since it is a food-based business, be sure you research the health department requirements for a home-based food service business.
Freelance Writing
Freelance writing is among the most popular home-based businesses because if you can write, you can easily start your business. While it is competitive, freelance sites and online classified sites such as Fiverr and Craigslist are where writers can put themselves out for hire. Several blog sites will pay for articles if accepted upon submission. Even if your writing skills are moderate, you can take free online writing courses to improve your writing and use some reasonably priced editing tools to help make your writing shine and give you a competitive edge.
Social Media Specialist
Social media is the number one way every business, large or small, uses to market. While larger corporations will have more advertising dollars to spend on print, television, and billboard ads, they will still have a strong social media presence for marketing. A social media specialist will post and promote a person or a business on social media platforms. Business owners are often so concerned with their business’s operations that they will hire a social media specialist to do it for them. The social media specialist is another business that only requires a bit of social media knowledge, and you can start it today with no overhead.
Conclusion
Though hundreds of home-based business ideas are among the top five due to ease of start-up, low overhead, and demand, the information about these five should help you decide to be your boss and start your home-based business TODAY!
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
In today’s gig economy, freelance businesses are more common than they used to be. Most people were reluctant to earn money through such a sporadic means of income. But with the digital world we live in, it is much easier to establish and maintain a freelance business that is profitable and fulfilling. Here are some tips to help you succeed in your freelance business.
Choose a Niche
Though you might be tempted to do anything and everything freelance, finding your niche and sticking to it will be more profitable. When you focus on one (or two) freelancing types, you can build your business more efficiently. It’s not to say there is not a place for a jack of all trades, but there is a well-known saying, “jack of all trades and master of none.” Having one that you can not only master but excel at will be an advantage, especially in the competitive freelance job market.
Be Clear on Service Offerings
Once you have decided on your niche, it is time to discover then determine what services you will offer. For example, for a freelance writer, writing is the niche, but they may provide services for only one kind of writing or multiple writing types. Decide on what type of services you will offer in your niche then make them clear for your potential clients. If you don’t know what services you offer, how can you expect them to be clear?
Define Your Client
Understanding who your ideal client is will help you with the direction you go on many aspects of your freelance business. Defining and having a clear picture of who will benefit most from your services will inform your approach to gaining clients and keeping them. Also, knowing the demographics of your ideal client will help with marketing strategies and pitches.
Don’t Quit Your Day Job (Yet)
Freelancing can be so freeing that it will be attractive to someone who is not working for themselves, especially if they are in a job they hate. Though the temptation may be great, start freelancing while you still have your primary source of income. Once you build your freelance income and flow to be 50-75% of your current income, you can make moves to quit and fill in that last 50-25% with more time to dedicate to it. Sometimes getting a freelance business to a healthy state can take a long time to build, depending on the type of work you are doing. Also, some types of freelance work are heavily saturated, so being competitive can be difficult. Ultimately, only you know when it is safe to quit your job because you will feel comfortable with the decision (you can always get a new job if it doesn’t work out.)
Level Up Your Skills
Higher skill levels equal higher rates. There are many ways to differentiate yourself from the competition, but an extremely effective one is having a high skill level in your niche. You can do this in several ways. You can take on smaller projects that may not pay as much but will gain you experience and skills. You can also take on projects for which you will need to learn a new skill to complete, be careful doing so. However, if you can’t master the skill, this could be disastrous to the project. Take online classes or watch videos that expand skills in your chosen niche and read books, blogs, and articles by those who have succeeded in their freelance business who share their best practices. Building skills will pay off.
Determine Your Pricing
When deciding how much to charge, you have to consider your skill level and experience. You can’t start at the highest prices with nothing to show you are worth the cost. The best advice is to set a rate that is your bare minimum you need to make to pay your bills. Having a minimum will give you a baseline to jump from when your business builds, and you can ask for higher rates. You must go in knowing what you will and won’t take.
Conclusion
Starting a freelance business can be exciting and freeing and a little scary due to the sporadic nature of the income. Having a base using these tips will ensure success in your highly rewarding freelance business.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Investments should be as important to an adult as savings though few people do either of those things. Investments and savings should be focused on by everyone who looks to have strong finances. When consulting a financial advisor, they will generally help you with both short-term and long-term financial goals. Here are eight long-term financial investments you should consider.
Growth stocks
Growth stocks are investments in companies with the promise of high growth. This high growth also offers high investment returns. These stocks don’t often pay dividends since most of these companies’ profits get invested back into the company. Dividends generally come once the growth begins to slow. If you are in for the long-term, this type of stock can pay off over time, as growth stocks have consistently been the best stock performers overall.
These stocks are considered higher risk because they can be vulnerable to market fluctuations but if you hold on to the stocks long-term, riding out those storms is all the investor needs to do to get a long-term payout on their investment.
Stock funds
Stock funds are mutual funds and are a great long-term investment for investors who don’t have time to study individual stocks. The fund’s return is based on the average return of all the companies in the fund. Stock funds are generally diversified, pulling in various companies, not all in the same industry. This diversification is an advantage over keeping it all in the same industry for those times certain industries will have a downturn as a whole.
Stock funds are lower-risk than growth stocks because they are a mutual fund with diversification. But they do still carry some market risks.
Bond funds
Bond funds are when the government or a company issues a bond. They then pay the bondholder a certain amount of interest each year. At the end of the bond term, the initial principal is paid back by the bond issuer. Bond funds are an excellent long-term investment due to their diversity and fairly low risk.
Bonds, while a good long-term investment, have a lower pay off so if you are looking for higher rates of return, they may not be where you want to place all of your investment dollars.
Dividend stocks
A dividend stock is a stock that has a regular cash payout. Dividend stocks are popular because they produce a regular income. They also are the best stocks to grow dividends over time. Like with all stocks, they are at higher risk because of the lack of diversification and the vulnerability of market fluctuations. But they are a great source of passive income when they are doing well as the dividends are paid out quarterly.
Real estate
Real estate is a great investment due to the passive income over time as a rental property. Real estate is a great long-term financial investment because of the control as the property can be sold at any time.
Small-cap stocks
Small-cap stocks are similar to growth stocks, the difference being that the companies are fairly small. If you stick with these stocks long-term, the pay off can be significant if the company you bought stock in grows substantially.
Robo-adviser portfolio
Robo-advisers are great if you don’t want to invest yourself. Robo-advisers leave the investing up to a professional; all you have to do is deposit money into the Robo account. A professional automatically invest it based on your goals. The Robo-adviser is another diversified portfolio, which makes it have a high return. It is also more stable because of diversification, but that contributes to its low rate of return.
IRA CD
An IRA CD is a good option if you’re risk-averse and want a guaranteed income without any chance of loss. Like the name says, this investment is just a CD inside an IRA. And inside a tax-friendly IRA, you’ll avoid taxes on the interest you accrue, as long as you stick to the plan’s rules.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Most responsible adults earn money through active income, which is income for services that have been performed. Active income includes salaries, wages, commissions, and tips. It also includes earnings from a business that you own and operate.
Passive income is earning money through sources in which the earner is not actively involved. This includes dividends, royalties, interest, and rental income. Passive income is a rewarding way to earn money because your money is doing all the work while reaping the benefits. Here are six ways to earn money through passive income.
Real Estate Investment
There is more than one way to earn money through real estate investments. You can purchase a property then rent it out. Once expenses are paid, such as a mortgage, taxes, and maintenance, the rest of the money earned is passive income.
Another way to earn money is through crowdfunded real estate. This type of real estate investment offers investors less money to purchase real estate as the buy-in amount ranges from $500 to $5,000. Most crowdfunded real estate options don’t allow you to choose where to invest, nor is it easily liquidated. But it is still a great option to earn money through passive income.
Dividend-Paying Stocks
Buying stocks is not a new concept when it comes to earning money through passive income. Dividend-paying stocks generally pay out dividends quarterly. Most smart investors take dividends and reinvest them. But if you are looking at it as a passive income source, you can use the money you earn to pay bills or save towards long term goals.
Peer-to-Peer Lending
Another great way to earn a passive income is through peer-to-peer lending by becoming a part of a lending club. You earn money receiving returns on interest. There is some risk though minimal, due to the possibility of the lendee defaulting on the loan. The risk is far less in lending clubs than if you directly lent money to a loved one.
High-Yield Savings
There are several types of savings accounts but opening a high-yield savings account immediately starts earning you money on dividends, earning you passive income. Similar to dividend-paying stocks, some high-yield savings account will earn you a usable income, quarterly. Check with a financial advisor to find the best high-yield savings options that will earn you the most passive income.
Royalty Earning Creations
There are multiple creative ways to earn a passive income after you complete the initial work. Writing an ebook is one way to earn money on a passive income. You can also earn royalties by selling your photos on stock photo sites. And yet another way to earn a passive income through creativity is to produce an online course. Once you do the initial work, the income from that point forward will be passive.
Use What You Have
There are several ways you can earn a passive income using what you have. You can use your car to earn money while you drive by using it to advertise. You get a percentage of the income that comes in from your efforts. You can also earn money by renting out an extra room in your home. Yet another way to earn is by shopping. Some apps offer cash for shopping in certain stores or for specific products.
Conclusion
A passive income is a great way to increase your income streams or replace your main source of income. There are many other ways to earn a passive income. The main thing to remember is you may have to put in some initial work to earn money, but the payoff will be worth it.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Many adults, though they may try, are in poor financial health. This is due to high debt and lack of savings and financial planning. Most would likely cite money as a significant source of stress though the principals to reach financial health are simple, don’t live beyond your means, and have some savings for the future. While this does sound easy, it proves difficult for one simple reason; financial psychology.
People fail to realize that when they get to a place of complete financial breakdown and sleep-depriving stress, money problems have as much to do with the mind as it does money management skills. You can talk yourself into and out of financial health issues by merely having the wrong mentality. Here are five mentally focused steps to psych yourself up to better financial health.
Identify Three Financial Goals
Identifying a specific number of goals helps you figure out what is most important to you. Keeping it limited makes the goals more easily attained then having several financial goals that are waiting to be reached all at once.
Name Your Financial Goals
This step is going to seem silly, but in reality, it is a highly effective technique. Instead of calling a goal “retirement” call it something more exciting like “Golden Years Goals.” This simple mental trick will help keep your goals in focus.
Time-stamp Your Goals
Once you have named your financial goals, it’s time to give them a deadline. This time-stamp can be a specific date, or simply a month or a year. What’s important to remember is that by setting the time-stamp or deadline, you will not leave the goals lingering unreached because you have an achievement goal.
Picture Your Financial Goals
Visualizing has been a form of mental goal setting used successfully for years. There are many ways you can bring out visualization, and you should do the method that is right for you and proves the most successful. Here are some methods of visualization that work.
Picture yourself succeeding If you see yourself with the things you hope to accomplish by saving towards your future, you will more likely complete it in reality
Create a vision board when most people think of a vision board; they see something arts and craftsy. In some ways, it is, but this gets you creatively involved in your goals. It doesn’t have to be a board; it could be a vision wall or whiteboard. It just needs to be interactive.
Meditate or pray towards success
Meditating or praying towards your goals connects you spiritually to your vision, which adds to the visualization and success.
Daily affirmations
These affirmations are a way of verbally claiming these goals until they are obtained in reality.
Mental rehearsal
Mental rehearsal is something athletes have used towards winning. Mental rehearsal is going into your mind and seeing yourself making the plays or taking the steps and seeing the winning outcome.
Automate to Success
Now that you have set the goals, it’s time to automate them to success. One of the best ways to trick ourselves mentally when it comes to financial health is the theory that if money is allocated to savings automatically, we get used to the lower amount of spendable income, and we “don’t miss it.” We already take part in the automation when taxes are withheld, and what we receive in our paycheck is the net income after the IRS and social security take their allotment out. Using automation for savings lowers the net income more and puts the money withheld into one or various accounts set up for savings.
Conclusion
Financial psychology is directly related to financial health, so your mind is as essential as learning money management skills. If you use these simple steps, you will say goodbye to the stress money issues have been causing you for years.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
When starting a small business and even in later phases of operations, there are mistakes you want to avoid to have a successful business. Knowing what the typical mistakes are for small businesses and how to avoid them will spell profits and success. Here are the common mistakes made by small business owners and some ideas on how to prevent them.
No Business Plan
A business plan is a must for every small business before start-up, and every year the business operates. A business plan pinpoints the company’s mission statement, which is the foundation for the rest of the plan. Planning also lays out financial needs, marketing plans, supplies and equipment, projections, and summarizes. These plans are essential for the business owner and potential investors or lenders.
No Market Research
No amount of marketresearch will be too much. The more you know about the market, the more chances of success at both start-up and throughout the business. Market research is essential for pinpointing your target customer. This should be done every few years to ensure there is no shift in your target demographic unless what you sell is specific to the same demographic.
Building the Wrong Team
A small business’s success often depends heavily on the supporting staff as it does on the owner. When hiring staff, you must make choices that will work well within the business dynamic and other staff members. It is also vital that the team members have skills to serve your business best and fill the various positions needed for your business type.
No Website
In today’s heavily digital world, not having a website for your small business can be a fatal mistake. Every business needs to be searchable by people who don’t know about your business but may search that will lead them to you. Most small business owners don’t have a site because they think the cost will be too much. However, having a website designed is not as expensive as you think, and there are even sites that you can build your own site for little to no money. However, you make it happen; getting a business website operational from the beginning is crucial.
Lack of Financing
Many small business owners fail to get the proper financing in place before opening. This lack of financing can cause problems that become insurmountable quickly and sink the business. The way to avoid these points back to the business plan. A financial overview of your business can let you know how much financing you need and when to obtain it.
Underpricing Your Products or Services
Some small business owners have difficulty coming up with prices for products and services. The greatest fear is that people will not bring the business to you if it’s priced too high. To deal with this issue, first, do research and set a price comparable to the market. Another rule of thumb to follow is to figure out what the bare minimum is you need to make to pay bills and staff and do what needs to be done in the business and set your prices to match this need.
Failing to Invest in Marketing
In today’s digital world, marketing is not as expensive as it used to be. In many cases, marketing is free when using social media platforms to market. If you have the solid foundation of a business plan, marketing, and its costs are built into the plan, there would be no surprises regarding planning and costs.
Ignoring Accounting and Bookkeeping
There are a lot of reasons accounting and bookkeeping needs focus. The main reason you need to focus on accounting and bookkeeping is always to be aware of your business’s financial health. Whether you use a professional (recommended) or use a bookkeeping or accounting software and do it yourself, it is essential to take control of your business’s accounting and bookkeeping.
Conclusion
Starting and running a successful small business is not for the faint of heart. It requires dedication and intelligence. These are common mistakes new or small business owners make. If you know what they are and have a plan, you can avoid these mistakes for your business’s lifespan.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Master Bakery Operations: Delight Your Customers Today!
How to run a bakery successfully involves mastering three interconnected pillars: operational excellence, financial management, and exceptional customer service. To operate a bakery profitably, you need clear processes for production and inventory management, strategic pricing that protects your margins, and a customer-first mindset that transforms first-time buyers into loyal regulars. The fundamentals stay constant whether you’re operating from a small home kitchen or managing multiple locations—precision in your craft, discipline in your business, and genuine care for every customer interaction.
Over my two decades as CEO of Complete Controller, I’ve had the privilege of working with hundreds of bakery owners across the country. What separates thriving bakeries from those barely surviving isn’t always the quality of their croissants or creativity of their flavors—it’s their willingness to treat their bakery like a business, not just a passion project. I’ve watched talented bakers pour their hearts into beautiful products, only to undermine their success with chaotic inventory systems, unclear pricing strategies, and inconsistent customer experiences. This article distills what I’ve learned from those real-world experiences, including the sobering fact that 60% of new bakeries fail within three years. The good news? Armed with the right systems and strategies, you can build a bakery that both fulfills your creative passion and sustains your livelihood for years to come.
What is how to run a bakery and how do you get it right?
Run a bakery successfully by balancing production excellence, smart financial operations, and memorable customer service
Master operational systems through SOPs, inventory tracking, and demand-based production scheduling
Build sustainable finances with accurate cost calculations, strategic pricing, and monthly financial reviews
Create loyal customers through warm interactions, proactive problem-solving, and personalized experiences
Scale sustainably by diversifying revenue streams, leveraging technology, and maintaining quality standards
Building Your Operational Foundation
Your bakery’s operations form its backbone. Without clear systems, even the most talented bakers struggle to scale, maintain quality, or manage costs effectively. The difference between struggling bakeries that waste 12-15% of their production and market leaders who keep waste below 3% comes down to operational discipline.
Start by establishing Standard Operating Procedures (SOPs) for every process in your bakery. Create written protocols for production schedules, quality control checkpoints, cleaning routines, and safety standards. These SOPs transform your bakery from a collection of tasks into a predictable, scalable operation. When you document exactly how each product should look, taste, and feel at different stages, any team member can maintain your standards—whether you’re baking at 4 AM or your assistant handles the afternoon shift.
Inventory management separates profitable bakeries from those hemorrhaging money through waste. Most bakeries lose 10-20% of their margins to spoilage, over-purchasing, and poor tracking. Implement a dedicated inventory system like Craftybase to monitor ingredients, track expiration dates, and identify which products consume costly inputs. Since mold causes 65% of global bakery waste, proper storage and rotation become critical profit protectors. This visibility helps you negotiate better supplier rates, reduce over-purchasing, and make smarter menu decisions based on actual ingredient costs.
Production scheduling aligned with customer demand dramatically reduces waste while keeping products fresher. Analyze your sales patterns by day and product type—if you sell 40 croissants on Friday mornings but only 10 on Tuesday afternoons, adjust production accordingly. This data-driven approach frees up time for other business tasks while cutting waste from 15% down to 6% or lower, as demonstrated by successful subscription bakeries like Hearth & Crust.
Financial Operations That Drive Profitability
A beautiful bakery with exceptional products can still fail without careful financial management. Most bakeries operate with profit margins between 4-9%, meaning they keep only $4-9 of every $100 in sales. However, well-run artisanal bakeries achieve 8-12% margins through disciplined cost control and strategic pricing.
Master your cost structure by calculating exactly what each product costs to make—including ingredients, labor, packaging, and overhead. Many bakery owners underprice because they miss hidden costs like equipment depreciation, utility usage during baking, and ingredient waste. Use this formula for confident pricing: Product Cost ÷ Target Margin = Retail Price. If a custom cake costs $15 to produce and you want a 60% margin, price it at $37-40. This accounts for unsold inventory and recognizes the skill embedded in your craft.
Track every expense category meticulously—ingredient costs, labor expenses, utilities, and overhead. Monitor waste percentages by weighing what doesn’t sell or gets discarded for quality issues. Negotiate bulk discounts with suppliers without sacrificing ingredient quality—customers taste the difference immediately. Schedule labor based on demand patterns to avoid overstaffing during slow periods, and cross-train employees to handle multiple tasks during rushes.
Build sustainable margins by offering a strategic mix of high-margin specialty items (custom cakes, decorated cookies) alongside popular everyday products (bread, croissants, muffins). Experiment with seasonal items and unique flavors to attract diverse customer bases while maintaining your pricing discipline. A 5% price increase on $350,000 in revenue adds $17,500 directly to profit—a 60% increase in total profits—even if you lose 2-3% of customers.
Create a monthly financial dashboard tracking revenue, cost of goods sold (COGS), labor costs, and operating expenses. Know your profit margins by product and sales channel. Use this data for strategic decisions about which products to feature, where to increase production, and when to adjust prices. This single practice—consistent financial review—separates businesses that grow from those merely surviving.
Hiring and Training Your Bakery Team
Running a bakery alone proves unsustainable quickly. Your team directly impacts product quality, customer experience, and your ability to scale. The food manufacturing industry experiences 23% annual turnover, with replacement costs reaching five times an employee’s annual salary when accounting for recruiting, training, and lost productivity.
Hire for attitude alongside baking skills. You can teach someone proper dough proofing techniques—you can’t teach them to care about excellence. Look for candidates with food industry experience who demonstrate genuine enthusiasm for the craft. During interviews, watch how they discuss past work experiences and interact with your existing team.
Building team excellence
Define clear brand identity and customer service standards that every employee understands and embodies. If your bakery prides itself on warm, welcoming atmosphere, train staff to greet every customer with genuine smiles and friendly conversation. Provide specific greeting examples and acceptable responses so interactions feel consistent yet natural across your team.
Invest heavily in product knowledge training. Staff should know ingredient sourcing, flavor profiles, dietary accommodations, and stories behind signature items. Train them in active listening—the best salespeople hear what customers want and match it perfectly with products. When customers share event details, your team should translate those needs into confident recommendations.
Create positive work culture to reduce costly turnover. Baking demands early hours and physical stamina—retain your best people by making them feel valued. Recognize outstanding work publicly, involve team members in menu development, and provide skill growth opportunities. Happy employees deliver better customer service and maintain consistent quality without constant supervision. Competitive pay helps, but research shows employees stay for growth opportunities, flexibility, and alignment with company values.
Customer-Focused Operations That Build Loyalty
Customer service isn’t a department—it’s your bakery’s entire philosophy. Since a 5% increase in customer retention can boost profits by 25-95%, every interaction matters. Loyal customers spend 67% more than new customers and are 5.1 times more likely to recommend your bakery.
Master first impressions at every touchpoint. Whether customers enter your retail space, pick up online orders, or meet you at farmers markets, initial interactions shape perceptions. Train staff to provide warm greetings, stand when customers approach, and use names correctly in all communications. Show genuine interest beyond transactions—ask about occasions, preferences, and past experiences with your products.
Proactive problem resolution
Handle challenges with proactive honesty before customers discover issues. If you notice a loaf baked slightly darker, reach out first: “Hi Sarah, I wanted to let you know before pickup—one of your loaves came out darker than usual. Still delicious, but I’d be happy to offer a replacement.” This approach builds trust and often converts potential complaints into loyalty moments.
When customers do complain, pause before responding. Acknowledge concerns genuinely: “I’m sorry your order wasn’t what you expected. I always want customers to love what they receive.” Ask clarifying questions, then offer fair solutions—replacement, discount, or explanation. Often, simply showing you care maintains the relationship.
Build systematic loyalty through personalized experiences. Track frequent customers’ names and favorite products. Surprise regulars with special offers, early access to seasonal items, or complimentary treats. Implement loyalty programs rewarding repeat purchases—83% of customers with loyalty memberships make repeat purchases. Ask for feedback and product suggestions regularly—customers often provide insights into exactly what your market wants.
Scaling Through Strategic Growth
Once your bakery establishes solid operations and customer loyalty, strategic expansion becomes possible without sacrificing quality. Success requires careful channel diversification and maintaining operational excellence as you grow.
Develop menus reflecting your unique niche while attracting target markets. Find your “best, first, or only” positioning—be the best at what you make, first to offer unique twists, or only bakery in your area making something specific. Start with signature items and expand gradually as demand validates new offerings. Include dietary options (gluten-free, vegan) to capture wider audiences while staying true to your core strengths.
Enable customers to order through multiple channels. Partner with delivery services or establish in-house delivery for convenience. Professional product photography showcases your work’s quality on social media and websites. Share behind-the-scenes content, baking tips, and special offers to build community. Respond thoughtfully to all reviews—this social proof builds trust with potential customers while improving local search visibility.
Learning from success stories
Bull Butter Co. demonstrates how cottage bakeries can thrive through creativity and community relationships. Starting with a single pregnancy craving for sourdough, this Oklahoma mother built a multi-channel business selling through farmers markets, mobile farmstands, pre-orders, and local business partnerships—all while maintaining work-life balance and operating from her home kitchen.
The key? Authentic storytelling on social media attracted loyal followers. Revenue stream diversification reduced risk. Strategic partnerships with other local producers offered variety without expanding production. This proves bakery success doesn’t require massive investment or commercial space—just intentional systems and customer focus.
Conclusion: Your Path From Passion to Profit
Running a successful bakery requires more than creating delicious treats—though that remains essential. It demands building a business that sustains itself financially, operates with clear systems, and creates genuine connections with customers who return repeatedly.
Throughout my career at Complete Controller, I’ve seen countless bakery owners discover that the financial and operational skills they initially avoided were actually keys to protecting their passion and scaling their impact. When you master cost control, pricing strategy, and financial tracking, you’re not compromising your craft—you’re ensuring it survives and thrives.
The bakery owners who succeed treat their business with the same care they put into every bake. They invest in their teams, listen to customers, manage finances intentionally, and adapt continuously. If you’re ready to move beyond simply loving to bake into actually running a bakery that delights customers and sustains your livelihood, start with these fundamentals. Ready to take control of your bakery’s financial future? Complete Controller specializes in helping food and beverage businesses implement the financial systems supporting growth without headaches. Visit Complete Controller today to learn how we can help you master both the art and business of running a bakery.
Frequently Asked Questions About How to Run a Bakery
What’s the biggest mistake new bakery owners make?
Underestimating the importance of financial management. Many bakers focus exclusively on product quality while neglecting cost tracking, pricing strategy, and margin analysis. This leads to working exhausting hours for minimal profit. Success requires balancing your craft with solid business fundamentals—tracking costs, setting appropriate prices, and reviewing finances monthly.
How much should I charge for my bakery products?
Calculate your true product cost including all ingredients, labor, packaging, and overhead expenses. Then use this pricing formula: Product Cost ÷ Target Margin = Retail Price. Most successful bakeries maintain 50-60% margins. Fair pricing supports business sustainability and allows you to invest in quality ingredients and proper staff compensation.
What’s the best way to reduce waste in my bakery?
Implement inventory tracking systems, analyze daily sales patterns to align production with actual demand, establish quality control checkpoints throughout production, and monitor what products don’t sell. Most bakeries discover they can reduce waste by 10-20% through intentional tracking and demand-based production scheduling.
How do I handle upset customers professionally?
First, pause and avoid becoming defensive. Acknowledge their concern with genuine empathy, ask clarifying questions to understand the issue fully, then offer a fair solution like a replacement or discount. Often, showing you genuinely care about their experience turns a complaint into an opportunity to build deeper loyalty.
Should I start in a commercial kitchen or from home?
Many successful bakeries start from home kitchens under cottage food laws. This approach minimizes initial investment and proves your concept before committing to commercial space. Focus on building loyal customers through farmers markets, pre-orders, and local partnerships. Scale to commercial space only when demand consistently exceeds your home kitchen capacity.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Jennifer BrazerFounder/CEO
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.
A positive corporate culture is essential to the success of any company, large or small. While there are many factors in creating an excellent corporate culture, some elements are consistently found in all companies with a positive corporate culture. To ensure your company has a positive corporate culture, there are four key components on which to focus.
Vision
A positive corporate culture is first built on the company’s vision. The vision is laid out in a company’s mission statement. This statement will lay out the company’s goals and should be on the mind of every employee from CEO to receptionist. If every employee knows the company’s mission, it will promote confidence and understanding of what the overall goals are to help guide individual goals. This will be something you need to ensure is instilled in your employees through evaluations and conversations. The top of the pyramid of importance is the vision of the company so that everyone is striving towards the mission of the company every day.
Values
A company’s values are the core of its culture. While a vision is a company’s mission, values are guidelines on the mindset and behaviors necessary to achieve company goals. Values communicate to everyone in the company how it treats employees and co-workers, serves clients, and upholds professional standards. The company’s values are based not only on the vision but also on the authenticity of the values presented. The values of a company can differ from the values of the individuals within the company. While you would encourage each person to be themselves, you need to make it clear that within the corporate culture of your company, while at work, everyone is expected to uphold the company values.
Practices
Company practices are how vision and values are put into use. If your company has a compelling vision statement and clearly defined values, if there is no action behind them, the corporate culture will be negative and cause a company to suffer or possibly fail. Whatever the vision and values are, they should be reflected in the policies and operations of the company. Vision and values mean nothing if they are not expressed through action set forth through company expectations of each position and the person holding it.
People
No company can have a positive corporate culture without people sharing the vision and values. The shared vision and values should be part of the recruiting and hiring process. To ensure the company’s corporate culture is positive, all new or seasoned employees must be on board with the core vision and values. Having this be part of the recruitment and hiring process helps with retention and reduces issues that can negatively impact the corporate culture. People stick with corporate cultures they like, and bringing on the right “culture carriers” through recruitment reinforces the culture a company already has. This attention to staffing will pay off when it comes to the company continuing to succeed through the vision and values it practices. And having such a positive corporate culture will promote productivity and high employee retention rates.
Conclusion
Of course, there are other factors that can influence a positive corporate culture. But these components provide a firm foundation for shaping a positive company corporate culture. A positive corporate culture promotes the retention of like-minded employees and has a strong impact on productivity, attendance, and promotion from within the company. Making sure every employee fits into the corporate culture by sharing the vision and the values and putting them into practice will guarantee overall company success.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Saving money is something every responsible adultwants to do but often fails to do. It’s not that it’s incredibly challenging, but it does take some work to do it. Saving money is not something that comes naturally to most people. It is the opposite; what seems to come naturally is spending and often outside their means.
Even micro-savings can add up over time. Some savings are even from sources that essentially are giving you free money. Here are some painless ways to save money that should add up to a more significant savings account.
Painless Ways to Save Money:
The Internet is filled with many online rebatesites such as MrRebates and Ebates offering money-back rebates and online coupons.
Signing up for customer rewards is another great way to save money. Many stores offer client rewards on many products the customer is already buying.
Switching from ordinary bulbs to compact, bright bulbs will go easy on electricity and eventually save money.
Buy a programmable thermostat to power cooling and heat when nobody is at home.
Buying coffee from a shop is costly. Making coffee at home is easy and saves a lot of money.
Use clipped coupons to save that extra money on groceries and household products.
Pack and bring homemade lunches to work instead of going to a restaurant.
Eat at home more often can help save money and is a healthier option.
Avoid buying name brands instead of buying store brands, as most of these generic brands are just as good as name brands and are much cheaper.
Start drinking tap water by filtering it instead of buying bottles.
Avoid buying items from vending machines; they are usually over-priced.
Daytime movie showtimes are cheaper than night showtimes.
Cancel extra cable/satellite channels that nobody watches.
Using online automatic payment systems saves money, as many companies offer discounts for automatic payments.
Buy daily use items in bulk as bulk pricing is significantly cheaper.
Get a library card instead of buying books; it is free in most cities.
Cancel all the newspaper or magazine subscriptions that you do not read, use the Internet to get news or information.
Checking the air pressure in your tires while keeping up proper automobile maintenance will result in better fuel mileage.
Make a habit of buying used items, whether small like a video game or big such furniture or a car. Buying useful conditioned used items will save a lot of money compared to buying new ones.
Avoid going off the grocery list. Make a list of the household items before going shopping and stick to that list at all costs.
Never be afraid to ask for a discount. Ask for discounted prices and bargains when shopping.
The Internet is filled with instructions on how to fix or refurbish almost anything. Try fixing old stuff instead of buying new ones.
Many legit online sources allow a user to swap and trade used books, music, and movies with other online users.
Compare prices before buying items such as clothes and accessories.
Seek out free items; they can be for your use or to resale for pure profit.
Buy items used and refurbish, repurpose, or resale.
Budget and Financial Goals
Once you have built some habits and found some ways to save money, you should consider keeping a budget that includes your financial goals. Most people are barely getting by living paycheck to paycheck with no savings or financial goals. This is the time to set goals such as:
Purchasing a home
Purchasing a car
Getting married
Taking vacations
Emergency funds
Retirement
And more…
Conclusion
Everyone hears about spending habits, but now you need to focus on savings habits. Until you stop spending beyond your means or ignoring your savings account, you can never expect to be financially free or reaching your financial goals.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
