bake - October 2014 - 30

DON'T FORGET ABOUT YOURSELF
TD Ameritrade's Self-Employment and
Retirement Survey reports that almost
70% of self-employed people aren't saving
for retirement on a regular basis.
Some 40% don't save regularly, while
28% admit they don't save at all. By
comparison, just 12% of employees say
they don't save regularly and only 10%
don't save at all.
Small business owners face more
financial challenges than the traditionally
employed, including unpredictable income
(cited by 61%), which can make it hard to
save for retirement. And they frequently
have to spend more to afford health
insurance than do employees, which can
chip away at money that might otherwise
be earmarked for retirement.

The retail bakery business doesn't remain static
throughout the year, quarter, etc. Owners and
managers must remember this when creating and
reviewing budgets. A ﬁrst budget will uncover
unforeseen problems and provide useful information
when deciding how you want to handle these
problems in the future.
Overtime working and re-working budgets will
provide you with a detailed plan for when and how
budgets need to be set up throughout the business
year in terms sales spikes and drops as well.
The Basics
Spend some time and think about your budget.
Make sure you work at it and avoid a half-hearted
attempt that could possibly put you in a bad ﬁnancial
situation. Whether you budget for the next ﬁve years,
three years, one year or just for the quarter, a few
basics exist that will help ask and answer budget
questions.
If you haven't already, make contacts with other

Retirement plans today offer more options
than ever before. There are even 401(k)
plans for one-person businesses and
plans that allow you to make irregular
contributions when your income allows it.

retail bakeries, especially in your area and region.
Ask questions about budgeting speciﬁcally. While
every retail operation is different, other successful
bakery owners can share insight into unseen budget
considerations.
For the retail bakery, budgets need to have some

proﬁts, lower their expenses, or both. The best part of

wiggle room. Remember that ﬂexibility in your

the budget is that it enables a bakery to forecast the

budget provides safety for months that revenue

future. Once the period that was budgeted has past,

falls short. Also, some months might bring in more

you can then review it and ﬁgure out where you need

revenue than expected. You should prepare to adjust

to make adjustments.

on the ﬂy when necessary. Always make conservative
estimates, have an alternative plan to handle any

Don't overlook the
advantages of spending
some extra time and
effort on a budget and
remember that budgeting
is a work in progress.
30 < OCT 2014 | bakemag.com

extra proﬁts wisely and continuously look for ways to
cut costs without jeopardizing quality.
Always shop around and get multiple estimates
when spending money, especially on big spends. The
cheapest isn't necessarily the best. Look for overall
value on purchases and plan ahead for them by
beginning to shop in advance.
The internet provides a wealth of free resources
when it comes to budgeting. Take advantage of every
possible one out there.
http://www.bakemag.com
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