I apologize in advance for how long this is going to be.
There are so many factors ......
I think the biggest thing that gets overlooked is the very real expenses when going from a home-baker to a shop-baker. PLEASE NOTE: I'm not starting the home vs shop baker thing here.... I'm speaking from my personal view point, my personal experience, and my conversations with many folks who have made the transition.
As a home baker, a person may intellectually know there is rent and add'l expenses involved if/when they move to a shop, but until you are paying those bills, you don't really comprehend how much it is for:
-That $1150 monthly rent that goes up to $1525 when the landlord FINALLY gets around to figuring common areas maintenance fees for the year ... and then expects you to pay 3 months worth all at once because they screwed around and didn't get it done for 3 months.
-the $100 monthly dumpster bill that you don't have at home.
-the semi-annual fire inspection bill
-the payroll taxes,
-the bill to the accountant for doing the payroll,
-the actual and very real higher utility bills at a comm'l location (because god knows the utilities set their rates based in the "fact" that we business people have a ton more money just laying around doing nothing!),
-the equipment you never thought you needed ... like the $1000 grease trap, or just how much it REALLY costs, like the $8000 hood over the stove/oven ....
-the quarterly "cleaning out the grease trap" bill
-the $50 price tag for a comm'l mop bucket. (FIfty bucks??? For a freakin' bucket??? Are you kidding me????)
-the $2300 annual commerical auto policy on two vehicles when you were used to paying $900 annually on 3 vehicles on your personal policy,
-the liability insurance,
-the equipment insurance,
-the worker's comp insurance,
-------Note: I have to put back $10 every single day of the year just to pay my annual insurance bills
-any loans you took out for the equipment/construction
-any add'l credit card pymts that you ran up to make ends meet on those slow months.
-the $700 for all the soaps you need to run the bathroom, the kitchen sinks, the comm'l dishwasher, the floors, etc. (although to be fair, these have lasted me 6 months).
-the $2200 to fix the store's air conditioner because it turns out that's NOT a landlord responsibility (and the AC guy does not take monthly payments!)
-$3000 for the sign over your store (that I don't have yet),
-the cost to join the chamber and networking groups to get your name out fast and to a lot of people (it's called "advertisng" - and in case you're wondering, this money is the best advertising money I have ever spent!)
-the $45 a week linen bill for towels and aprons because you just do not have time to take them all home and wash them yourself anymore,
-the expense of buying more and more duplicate pans and equipment because higher volume means you can't do it with just two 8" round pans anymore
-and then figure that all of this is due and payable even when you don't have any orders ... the landlord still wants his rent and the power company still expects to be paid for electricity. A person no longer has the luxury of just paying the household electric bill and figure they "got a month off". No, no, no, ..... add to this the extra expense of gas and spending money on supplies to make those free samples to take to area businesses to try to get your name out and drum up add'l business.
It's a sticker shock to many ..... what a person thought was "good money" and/or "a decent profit" at home based on the pricing and volume they are doing from a home kitchen can throw them into bankruptcy in a shop kitchen if they don't do good market analysis and give their pricing and volume a reality check and if they don't have a good marketing plan.
It seems there is always something you need to buy, to update, to upgrade, to replace, to fix, to stock up on.
Here's a silly one .... I NEVER thougth about a sweeper for the shop (I have carpet in the front office area). I dont' want to spend the money to buy even a cheap one for the office, but I hate dragging my home sweeper back and forth between home and the shop.
Again ... this is NOT about being a home hobbyist, a home-based business, or a shop business. It's just a list of expenses that a comm'l space tends to have (repeat, TENDS to have) that a home-based business may or may not have and/or may not have been thoroughly considered.