I think it s worth it, risk is low and even if you don t make much at first you ll be learning a lot about how to start a small business. Don t be the low cost supplier, be a better quality muffin at mid level price. And have a strong brand identity, something distinctive and memorable so people can remember your muffins and tell friends about them.
You need to calculate all your costs. You have gotten start by getting the costs for your location and insurance, there are many more costs you need to factor. 1) How much does it costs you to make each muffin? Once you have that you can determine how much profit you can make on each muffin sold. (Don t forget that you will probably not sale every muffin you make each day, so you will have some spoil at the end of the day)2) Once you know on each muffin, then you need to determine all your operating expenses (ie. sales tax, business license, health inspections, advertising, etc.) 3) You can then determine how many muffins you have to sell each day in order to make a profit. Then determine how many you will have to sale in order to make how much money you think will make it worth you while in operating the business.What these steps will help you do, is to back into how much in sales you need to make the net profit you want. Use this simple formula (use annual numbers)How much you expect to gain + Costs to make product + operating expenses = SalesYou can take you sales number and divide it by $2 then by 365 days and it will give you how many muffins you will need to sale each day.Hope that helps you get started,Good luck.
