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How to Pay Yourself $1K a Month From Your Micro Bakery (Part 2) | Episode 100



When you’re pouring your heart into a sourdough microbakery, getting paid can sometimes feel like a distant dream—or a luxury. But it doesn’t have to be. With intention, planning, and the right numbers in front of you, that first $1,000 of personal income can become a real, achievable milestone.


This post outlines the exact strategy to help you understand your costs, set prices that work, and build a monthly (and weekly) revenue plan that supports your business—and your life.


Step One: Understand Your True Product Costs

Before you can price with confidence, you need to know exactly how much each product costs to make. That means breaking down ingredients, packaging, and even the small stuff like parchment paper or labels.

  • Calculate the full batch cost of any product.

  • Divide by the number of units it produces.

  • Don’t forget to add packaging.


For example, if a cookie batch makes 20 cookies, and the total cost of the batch is $10, then each cookie costs 50¢. If you sell half a dozen, that's $3 in raw cost—before overhead, taxes, or profit.

If math makes your head spin, use a spreadsheet. My Profit & Pricing Calculator (linked below) does the legwork for you.

Step Two: Price for Profit

Pricing isn’t just about covering ingredient costs. It’s about:

  • Covering overhead like software, insurance, utilities

  • Setting aside money for taxes and savings

  • Paying yourself—intentionally and regularly


So often, we reinvest every dollar back into the business. That may feel like the responsible thing to do in the early stages, but skipping over paying yourself isn’t sustainable. Choose to set this habit early—even if it’s just a small percentage.


Step Three: Break It Down by Revenue Goals

Now that you’ve priced each item for profit, it’s time to reverse engineer your income.

Let’s say you want to pay yourself $1,000/month. Here’s how to break it down:


Using a Simple 25% Allocation Model:

  • 25% for owner's pay

  • 25% for taxes

  • 25% for overhead

  • 25% for savings


To take home $1,000, you’d need to generate $4,000/month in revenue.

  • That’s $1,000/week in product sales.


Using a 40/20/30/10 Model (owner’s pay/tax/overhead/savings):

  • To take home $1,000, your total revenue only needs to be $2,500/month.

  • Weekly goal becomes $625 in sales.


Step Four: Mix and Match Your Products to Hit the Numbers

Once you know your weekly revenue goal, go back to your product list.

Play with combinations of items to see how you can meet your number. For example:


To reach $1,000/week in revenue:

  • 30 classic loaves at $10 = $300

  • 30 inclusion loaves at $12 = $360

  • 10 pans of focaccia at $10 = $100

  • 5 dozen cookie packs at $30 = $150

  • 18 cinnamon rolls at $5 = $90

Total = $1,000


Or start with staples you know you always sell:

  • 40 classic loaves = $400

  • 24 sandwich loaves = $240

  • 16 pans of focaccia = $160


That’s $800 already. Then choose add-ons:

  • Scones, muffins, granola, cookies—anything you enjoy making and customers love.


With the right mix, you can hit your target without overproducing or guessing.


Strategy Tip: Make a System That Works for You

You don’t need to calculate everything by hand each week. Whether it’s:

  • A notepad and pencil

  • Your own spreadsheet

  • My Profit & Pricing Calculator


Use a system that helps you:

  • Keep up with changing ingredient costs

  • Easily plug in products and adjust quantities

  • Visualize how close you are to your goal


A Business That Pays You (On Purpose)

Baking without a plan often leads to burnout. It’s easy to get caught up in special requests, fun flavor ideas, and baking just for the joy of it. But joy and profit aren’t mutually exclusive.

When you:

  • Know your numbers

  • Price intentionally

  • Set clear revenue goals

  • Match your production to those goals


You build a business that works for your life—not the other way around.

This is how you move from “baking for fun” to running a microbakery that supports your household, your future, and your community.


Take the First Step

If you’ve been hesitant to look at your numbers, or feel overwhelmed by spreadsheets, know that you’re not alone. This strategy is here to simplify things.

  • Start with product costs

  • Price with intention

  • Build a weekly plan

  • Stick to it and adjust as needed


And if you want a tool to make this easier? The Profit & Pricing Calculator is a great place to start.


Here’s to your first (or next) $1,000 month—and to building a business that pays you well and fits your life.


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