Something has been on my mind for quite some time, long before I opened the bakery, how do people survive in business when they say they are working without a salary unless they are rich?
But first, today was a great day at the bakery for many reasons. First, Paola and Alberto came and worked with us and it was incredible. They really saved us as it was our busiest day to date, and even with the three of them working, it was a bit crazy...but in a good way......
I do not know why but I was a zombie getting up this morning and I slept a long time (well, I was in bed a long time - NOTE TO SELF, do not eat a bucket load of watermelon before bed, you may need to get up two or three or eight times to use the bathroom)...
Once I got to work, I was a machine, I made white breads, then integral breads and then pan payas... oops... I made them after making a discovery which made me very sad. In the centeno (rye) flour, there were moths.. I literally had to dump the flour in the trash (maybe 15-20kgs worth. There is nothing worse than a moth problem as everything has to go, it is a sad fact and reality. Strangely, and thankfully, they have not gone in to any other of the flours. In case you are wondering, when I get flour, I pour it into giant plastic containers with lids for the very reason of keeping uninvited guests from checking in and looking around.
I also baked another tray of croissants. Today we sold I think 30 of them before 1:30. I had two customers come in to the bakery twice today too.. Ahhhh I love that !!!! please come three times next time. We also have a small group of guys (usually 3 but today was 2) who come in every Thursday. That makes me feel great and I really appreciate their business very much. I also think it speaks to the quality of what we offer, and the great customer service.
....
I do not take a salary, nor does Sandra. Honestly, I do not know a day in time where I see this happening. So it takes me back to that thought I have always had, how do people survive? Well, from what I can gather, if they are doing things like I have been, there is not a solid line between personal bank account and business expenses, and vice versa. What this means is, I lump all of my bills together right now (its temporary) as I use my bank account to pay for the things we need for both the bakery, and the house. This includes all expenses. So, I take the gross income we get from the bakery and deposit this in to my account. Now, before you tell me, I am well aware of the pitfalls of this approach, but it really is only a temporary measure while we find stability, and we see our customer base growing. Right now we are more focused on customer service and satisfaction than where the money resides.
So, it could appear that I do indeed have an income of sorts, but the fact of the matter is that much more money goes out of my account than comes in. Even with today being our best day ever, I think if that was the norm (and it isn't) we would be hovering around 60% of breaking even. Maybe a bit more, but not much. For instance, yesterday, I think for the whole day our gross income was 49 euros. I do not even need to begin to explain how little bit of money that is, and how far from what we need to survive.
Now.. do not be afraid. Do not worry. I look at this as part of the learning of how to be successful. I do not look at anything we do wrong as failures, but opportunities. I learn from what goes wrong and apply it to what I do next. And, I believe that this will most certainly help us continue to grow. While my bank account nears zero, I must continue to believe in what will be, not what has happened. Just continue to work hard and focus on making the best breads and pastries that one can find in Mallorca. Zero is a number, just like any other number, I do not take it lightly, but I also do not let it keep me up at night (well not many at least).
And finally... I had some great unexpected visitors today., Maria Isabel & Andres came in, and my super awesome friend (and dive instructor) Andrea visited.. I will include that photo here...
Thank you as always for reading this post, even though it is a bit longer than the usual.
#doeverythingwithlove
PS - lets see how far you made it.. we decided to name the cat Yoko <3
Great post. My business has been struggling for three years and just came out of the red at the end of 2017. You can't be exceptional if you don't take the chance.
ReplyDeleteWhen I first started my business I was so busy learning how to make, market, source materials and etc., that I didn't really focus on stream-lining or figuring out the "making money, part.
I'm now rebranding and working with manufacturers to offer some things I don't make. I wouldn't know to do this without grinding it out first. I feel like I know what I did wrong, I've learned from my mistakes and that takes time.
Hopefully, you will get a big commercial account. Maybe a hotel or resort. It seems like, as with farmers markets, a commercial account can lift you up. Check out Seth Godin's books; Purple Cow, Lynchpin etc. He really talks about being exceptional and what that means. It's not what you think it means. One of the things he talks about is building your tribe, sounds like you are already doing that. Seth is a New York intellectual, very smart dude.
You are doing it. Keep doing it.
Thanks so much Scott for this thoughtful and detailed response. I think you are the second person to recommend me this book in the past two weeks so it is a sign.
ReplyDeleteI love your work as you know and think you are true artist..
🌻❤️