Great thread. I'm a new small business owner as of last June, and although I feel like I've got a lot of the basics down, I love to read experiences like this - lots of good information being passed around here. I feel like the more I learn, the more I realize I don't know much at all.
I did a bit of a similar thing...I started my graphic design business on the side as a hobby while working my corporate job to build up some savings and avoid a loan straight off the bat, as well as establish a [meager] client base. I'm mathtarded, so I've hired a local CPA and it's almost the best money I spend all month. I'd be up to my tits in paperwork and grief if I was trying to take care of most of that stuff myself. Incorporated right away too, which helps me sleep at night.
To add to what others have posted: dig the logo. maybe see if your artist is willing to try putting the "bread" text outside the guitar silhouette, below and sized larger. I think it's very clever with the grain making up the neck but you do lose the bread aspect in the body of the guitar. I like the red color too....reminds me of an old barn so I get that rustic, hand crafted feeling of your product. maybe you could fabricate a little branding iron in the shape of your grain-guitar and stamp the tops of your loaves or something as a cool effect 
I think as far as budget marketing avenues, social marketing is tops for value. A facebook page is free, easy to make, and doesn't require huge time input to keep people interested and drive traffic to your webpage. Twitter is effective also. Blogging is helpful as well - if your site is rarely updated, you won't get much repeat traffic and interest. A blog can help keep people coming back and keeping their attention, as well as allowing you to maintain some openness and transparency in your adventure which people will appreciate. I've sold some personal stuff on Etsy but I could see it being a worthwhile way to sell things non-wholesale.
almost forgot, don't forget to check out your local chamber of commerce. they may have some great info for new business owners as well as free seminars you can attend.
