When coming up with an operating budget we first have to think of what we will be spending on and what will make us money and then we need to make sure it comes out to where we are saving money in the long run in order to make a profit on the bakery business. Creating a budget for each area will help everyone in the company know what the end goal is for the company.

Sales- we need to be able to make money on the goods we sell but also still need to be competitive with our competitors.

Production or manufacturing- On this budget you do not want to cut yourself short, you want to be able to have enough here so you are not short when it comes to the production you are able to produce. If customers come in and we are constantly out of something they will get the hint we cannot afford the bakery therefore we will not be successful.

Labor- As most people know it is very hard to find employees, especially in the world we are living in today. You have to be competitive with pay but yet not offer too much to where you are losing money.

Overhead- This is everything leftover from production that isn't included under any other category.

Administration- Keeping administration on a level that is appropriate after a couple months of seeing the bills come out will decide on what the best budget for this would be.

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