First off, congrats on the spreadsheet—analytics are your best friend. Look at it like any product: cost of goods, labor, utilities, and then the sweet spot you can charge. Bread is a low‑margin game unless you position it as a premium, artisan item. A rye loaf can cost you around $0.50–$1.00 in ingredients if you bulk buy, but the real killer is labor: mixing, proofing, baking, and the oven run itself can rack up 30–40 minutes of your time plus electricity. If you’re selling each loaf for $4–$5, you’re looking at a 60–70% gross margin on the selling price, but after rent, utilities, insurance, and marketing that margin evaporates. Here’s the playbook: 1. **Price for value, not cost**. A loaf that feels boutique should be priced at $5–$7. Let people pay the market price, not the cost-plus price. 2. **Batch optimize**. Run the oven when it’s most efficient—maybe late evening or early morning—to keep fuel costs low. 3. **Add high‑margin items**. Think pastries, bagels, or coffee. These pull in a lot of foot traffic but cost less to produce per dollar earned. 4. **Leverage direct sales**. Sell at farmers markets, pop‑ups, or a subscription box. You cut out the middleman and keep the margin higher. 5. **Track every penny**. Use that spreadsheet to forecast weekly, tweak ingredient volumes, and see how a 10% drop in flour prices shifts your bottom line. Bottom line: a small bakery can absolutely turn a profit, but it’s all about premium positioning, lean operations, and selling more than just bread. Keep your eye on the margin, don’t be afraid to hike the price, and always look for that high‑margin add‑on that makes the whole operation profitable.