We caught up with the brilliant and insightful Martha Whitlock a few weeks ago and have shared our conversation below.

Martha, appreciate you joining us today. Growth is exciting, but from what we’ve seen across thousands of conversations with entrepreneurs it’s also dangerous if costs aren’t watched closely – sometimes costs can grow out of control outpacing revenue growth and putting the viability of the entire business at risk. How have you managed to keep costs under control?

Buttah Bakehouse has kept costs under control by growing at a slow and sustainable pace. This pace may not be desirable in all industries or even for a fellow baker, however, it’s working for us right now and is manageable.

When Buttah Bakehouse was established in 2021, I had a set dollar amount of money my partner and I agreed to put into the business. Once we reached that amount, we had to figure out how to operate without adding more of our own cash. This was challenging but caused us to be innovative. It was tempting to spend early to purchase a large mixer and second oven, but I didn’t have the cash to do it. I kept reminding myself to save up for these things with revenue from the business then make the purchase. Plus, I had to build the customer base to support the additional product I would be able to bake with more kitchen capacity. Our demand is now exceeding capacity and we are making a profit two years into business, so I’ve begun exploring options for growth.

At the start of 2023 a tempting opportunity arose to buy an already established bakery. At first, this was my dream; to own a brick and mortar. I would have to put down a significant amount of savings and finance the remainder to make the purchase, but it was possible. My partner and I were approved for financing, however during the process of buying the bakery, the operating numbers weren’t in our favor. The rent was outrageous, a problem for many businesses right now, and the bakery’s food cost compared to their monthly revenue was too high. I learned this by reaching out to free organizations and reading books. The local Small Business Development Center is a great starting place to receive free coaching. During the buying process, I also had an enlightening and free conversation with the Colorado Enterprise Fund and learned that it would take an expert in the food industry to turn around the financials of the bakery I was planning to buy. I backed out of the deal and am now expanding into a commercial kitchen which fits my budget.

My two biggest pieces of advice to new entrepreneurs trying to control costs is to give yourself a set amount of cash your comfortable putting into the business and seek out free organizations and resources that can get you started on the right path. The set amount of cash may change, start-ups usually end up costing twice as much and taking twice as long. Giving yourself an initial guideline will cause you to consider everything you are spending money on and if it’s truly needed in the early stages of business. Also, don’t pay someone to guide you immediately. I had a business coach for a short time, but after taking a hard look at my numbers, learned that it was an unnecessary expense. In the future, I may hire someone again for advisement, but right now, it just isn’t in the budget.

If you are considering buying a business, I highly recommend the book Buy Then Build by Walker Diebel. You can find it at your local library and even listen to the audio version free on a library app, such as Hoopla, CloudLibrary and Libby. Another book I recommend and has changed how I manage money is Profit First by Mike Michalowicz. Again, you don’t have to buy it, get a copy from your local library or listen to it for free on Hoopla. Reading this book resulted in Buttah Bakehouse making a profit in its second year and caused me to take a hard look at my numbers.

Awesome – so before we get into the rest of our questions, can you briefly introduce yourself to our readers.

Food was a love language in my family growing up and I learned to bake from my mother. Originally from Rhode Island, I appreciate a good New England accent and how the letter “R” disappears…hence the name Buttah Bakehouse (pronounced like butter but drop the “er” at the end and add “ah”). In 2020, after nine years in the Army as a Blackhawk helicopter pilot I became a civilian and enrolled in the Baking and Pastry program at Pikes Peak State College. While in school, I started baking out of my home kitchen under the Colorado Cottage Food Act and Buttah Bakehouse was born. Now my mission is to create small batch, homemade goodness that’s wicked good. I used to whip “rotah” blades, now I whip “buttah.”

Buttah strives to create cookies that make customers smile. Our cookies are large and perfect for sharing or treating yourself. We use quality ingredients and create unique flavors like Peanut Buttah and Jelly, Brown Buttah Pecan, Strawberry Shortcake and Apple Pie Snickerdoodle.

Each month Buttah sets aside a portion of revenue to donate to local charities. The amount isn’t huge, but we’ve been able to donate to The Place (a youth homeless shelter), Springs Rescue Mission, The Children’s Literacy Center, Angels of America’s Fallen, Meals on Wheels, and the local Food Pantry in Woodland Park. I’m most excited for this amount to grow and for Buttah to have a larger impact within our community.

What’s been the best source of new clients for you?

Giving out free cookies has been the best source of new clients for me. It’s not always fun giving away products, but when I first started baking, it was a good way to receive feedback. The neighbors I gave cookies to are now some of my best customers. I’ve also had markets where there were many cookies left over which can be disheartening. I’ve given these to teachers at my children’s school and real estate agents and it’s resulted in large orders at Christmas and for open houses.

Learning and unlearning are both critical parts of growth – can you share a story of a time when you had to unlearn a lesson?

While in the military, and especially as a helicopter pilot, I would plan things to excruciating detail and strive for perfection. In business, I’ve learned that good enough is good enough to get the job done. I still strive to put out an excellent product but must stop myself from getting paralyzed by perfection and just get cookies to customers, or make the social media post, or get a rough draft of a business plan completed and go for it. I’m my own worst critic, and often things don’t turn out as envisioned, but I’m learning that 80% will create forward progress. So now. I’m striving for good enough and refining as I go.

Contact Info:

• Website: https://www.buttahbakehouse.com/
• Instagram: https://www.instagram.com/buttahbakehouse/
• Facebook: https://www.facebook.com/ButtahBakehouse

Image Credits
Sherene Martensen Photography LLC Amy Kunstle Nancy Pitu