How to Start Your Food Business: an 8-step Guide

 Not sure how to start your food business? Find out what to consider, and how to make it happen with our practical 8-step guide.

Are you an aspiring restaurateur with a fresh new business idea, but not sure where to start? Well, it turns out that now might actually be a great time to take the plunge. Research shows that the food service industry is booming, and is set to reach $4.2 trillion with an annual CAGR of 3.6% by 2024.

But the idea of starting up your own F&B business may seem daunting, especially when the outlook for start-ups is bleak. Research shows that as many as 90% of new restaurants fail. The silver lining is that 10% don’t.

So to help you get started, we’ve pulled together an 8-step beginner’s guide, with insider tips to give you every chance at success.

1. Make a solid Business Plan

The first thing you’ll want to do before making any investment is do your research, diligently. Spend a few weeks (or even months) getting a deeper understanding of the broader foodservice landscape, your customer target, latest trends and competitors, and start writing a business plan for your investors. Think of it as exploring your 4C’s: customer, consumer, channel and context.

For this, you’ll want to:

Define your target market: Who is your new business targeting ­– baby boomers, gen X, gen Z, empty nesters, seniors? Once you’ve defined your target segment, make sure you understand what they buy, why they buy, where they buy from and what makes them tick. This will help you create a relevant, targeted offering.

Define your USP: Find what sets you apart from the rest of the herd. Have a look at what your direct (and indirect) competitors are doing, and establish your point of competitive difference. Now here, it doesn’t’ have to be radical, but it does have to be relevant. For example, if you’re targeting young families, creating a child-friendly establishment with nutritious children’s meals could be enough to give you a leg up on the competition.

Define your restaurant style: Are you thinking of opening a bakery, coffeeshop, quick-service, fast-casual or full-service dining restaurant? Each one of these channels requires their own unique approach, operating hours and investment, so make sure to pick one that suits you as an individual, and the work schedule that you’ll want to have.

Select your food type/menu offering: Think carefully about your menu and the type of food you’ll want to offer – and do so early on in the process. Find out what the latest menu trends are (especially for your target market) and tailor your offering to them. Some of the hottest trends right now include: vegetarian/vegan diets, allergy-friendly & gluten-free menu options and sourcing your produce locally.

Define your brand: Your branding – from your logo and the imagery you use, to the design of your menu, music you play and even and uniforms of your staff – define what your business is all about, and what you stand for. It sets the tone for your restaurant and lets your customers know what they can expect. Think carefully about how you want to position yourself and what you want your identity to be.

Once you have your business plan in place, go out into the world – and test it. Find some of your target customers and ask them for their thoughts and impressions. This could be as simple as polling a handful of people off the street to a full-blown market research study.

2. Secure your financing

Now it’s time to sort your finances. But not everyone who wants to start a restaurant has the personal funding to do so. In fact, most don’t.

Thankfully, there are lots of other ways that you can find funding for your new venture:

Get a business loan

Turn to family/friends

Find outside investors or bring in a partner

Use crowdfunding

Get government aid

Just remember that it’s likely to take years before you turn your first profit, and money will be tight at first. So think about starting small (you can always scale up) and choose your business partners wisely, because they’ll be around for a good while.

3. Choose your location

You know what they say: “location, location, location”. Well, as it turns out, that’s not always the case. The location you choose for your establishment will depend on the a number of factors, and unless you’re relying heavily on foot-traffic, you don’t necessarily need to be in the hottest new retail location.

Here are a few factors you’ll want to consider:

Cost: based on your sales and profit projections, what can you afford to spend on rent?

Accessibility to potential customers: how are you customers getting to your restaurant, by foot, by car, by public transport?

Restrictive ordinances: some neighborhoods have strict noise regulations or restrictions on the times when your suppliers can deliver your produce

Proximity to other businesses: competitors and other businesses can influence your traffic, so map out what’s happening around you, and how it could affect your business

Plans for the future: consider what the neighborhood will look like in 2, 5, 10 years, and if there are any major development projects underway that could change the local landscape

 

4. Design the layout of your space

Once you have the a venue, it’s time to start working on the layout and design your space.

Of course, this will depend on the type of establishment you’re running, but typically restaurants dedicate about 45-60% of their space to the dining area, about 35% to the kitchen area and the remainder to storage and office space.

Think carefully about the layout of your kitchen and dining areas, and make sure there’s a smooth flow between the two. Prep space is also critical, so make sure your chefs have enough room to plate, garnish and decorate their dishes.

And most importantly: don’t cut corners in your dining area. This is the stage of the show – literally where all of the magic happens – so finding the right ambiance and decor to make your customers feel welcome is critical to success.

5. Choose your suppliers

As a restaurateur, you’ll be working with a number of different suppliers – from furnishings to POS systems, bar equipment, kitchen appliances and of course, food. Make your wish list, scope out your short and long-term budget, and go on the hunt for your partners. But remember that while you don’t want to cut corners when it comes to quality, over-priced suppliers can minimize your margins and run your business into the ground. So make sure to negotiate, hard.

But where do you start looking? Try going to wholesale retailers, local farmer’s markets, F&B conventions, ask for recommendations from fellow restaurateurs or just do a simple Google search.

You’ll be looking for a trustworthy supplier, who has a good track record of providing quality products and rota of successful partnerships. For food suppliers, be sure to about their delivery schedules and food safety management practices. And go local – they usually offer fresher ingredients.

6. Get your licences and permits 

When it comes to regulations, every country, county and city is different. But make sure that you check in with your local regulatory office, and consider getting legal counsel to make sure you adhere to all of your local health & safety codes and food regulations. Just know that some licenses can take months to acquire, so make sure to get started on this process well before opening day.

7. Start hiring your employees

First, think about what staff you need to hire for your restaurant type. Based on the scale of your restaurant, this may include: HR managers, purchasing experts, accountants, marketing & sales managers, chefs and sommeliers, waiters, hosts, bartenders and cleaning and dish-washing staff. Make sure to hire enough staff for each job, and anticipate shift planning and back-ups in case of illnesses and vacations.

Look for candidates with sufficient experience and a successful track-record, who are quick on their feet, can multi-task and are efficient. All of your employees should work well under pressure, and customer-facing staff should have exceptional social skills.

And when it comes to hiring staff, you can never be too careful – so do your due diligence. Make sure to do background checks, conduct several face-to-face interviews and call their references.

8. Advertise your business

Before opening your restaurant, you’ll want to do a fair amount of advertising to alert your local community that there’s a new eatery on the block.

And while word of mouth is still the best form of publicity, here are a few other ways you might like to consider announcing your new venture:

Build a great website: make sure that it’s easy to navigate and includes all of the key information, including your opening times, menu, a booking engine and if/how you cater to special requests

Use social media: create accounts on Facebook, Twitter, Linkedin and Instagram, and share relevant news and high-quality photos of your restaurant and the behind-the-scenes process as you’re getting ready for opening day

Put an ad in the local newspaper (and online news platform)

Host a soft opening: this is not only a great practice-run before opening day, but will also help create some buzz about your restaurant within your local community. Make the guest-list small, and consider having a soft opening for family & friends, followed by one for local businesses and partners.

Offer promotions to new guests: offer a free drink or dessert for the first 10, 50 or 100 customers – you’ll be remembered for your hospitality and generosity. After all, who doesn’t love free stuff?

And with that, we leave you with one last tip for success: work hard, don’t give up, and be prepared to risk it all. Starting any new venture will be a challenge and most likely an uphill battle, but in the end, nothing tastes sweeter than victory.

Source: https://hospitalityinsights.ehl.edu/how-to-start-your-food-business

5 Tips on Starting a Small Food Business

So you want to get into the food business? You love to cook or bake and have mama's secret recipe

that's been handed down from generation to generation You have a great product and you are wondering how to bring it to the masses. Here are a few tips from someone who with her sister is doing just that.

1. Where are you producing your product? Is this something you can make in your kitchen at home and sell or do you need a commercial use kitchen? Call your local health department and find out licensing and inspection requirements and restrictions on what you can legally produce and sell from your kitchen at home. If you do need a commercial use kitchen look for a "shared use kitchen" or a "community use kitchen" in your area to start. These generally have a small monthly fee and you pay by the hour when you use the kitchen. This is a great way to keep costs low while you grow your business.

2. Determine price point. Break down what it cost to produce your product and comparison shop. Purchase a similar product through a local speciality food store or market and through an online competitor. Ask yourself can your product command the same price, more or less. What will it cost to put your product in a customer's hand?

3. Labelling. Check with your local state health department and the FDA for labeling requirements. There are federally regulated guidelines you need to follow and there may be local state, city or town labelling requirements. Check on these and make sure you are adhering to them before you hire someone to create your labels. This could be a very costly mistake if you need to reprint your labels or pull your product from a shelf because the labels are incorrect.

4. How are you packaging your product? Wherever you intend on selling your goods, you need to test, test and test. You can't just put perishables in a box and send them. When you order from your competitors pay attention to how you received the goods. Did they include an ice brick or was it vacuum packed for freshness. Is this something your goods would need to arrive in edible condition? Test your packaging in a variety of climates. Send samples to your Aunt Betty who lives in Arizona and ask her to leave the sample outside all day to see how the contents hold up. Remember, when shipping to a residence someone may not be there to immediately take the package into the house and refrigerate. You need to plan for this. If you intend on selling in a store how will your packaging differentiate your product from the rest. Separate your product from the clutter.

5. How many products are you selling? If you are selling more than 1 item, don't be afraid to cut from your list of items, those that don't sell or no one is interested in. Do not get attached to products because they're one of your favourites but no one else is interested in them. When it's something your offer on your website or business, you need to have on hand the ingredients to make it. Never use old ingredients to make a product, it will affect the taste and ruin your reputation. Cut out what is not working. Think of your inventory as money with an expiration date sitting on a shelf just waiting to be thrown away.

There are a lot of other considerations before you start your business such as business name, web address, getting a trademark, business certificates, getting insurance, hiring a lawyer and so on. Make a list and work your list. It all starts when you implement. Remember you can have a great product or idea but if you do nothing about it it's nothing more than a great idea or product.

http://ezinearticles.com/?5-Tips-on-Starting-a-Small-Food-Business&id=1859045 

Tips and Tricks for Women Entrepreneurs

These five tips for women entrepreneurs that will help you immensely on getting funds:

1. Think BIG

Oh dear, there is nothing inspiring about thinking small. Be (or become) a high-impact entrepreneur. That means: Find a problem that impacts a lot of people and solve that problem. Put the destination before the journey so you can get there, align interests, and recruit talent. Stay away from local or small goals to create your business model. If you are a woman entrepreneur seeking funds: DO NOT THINK SMALL.

2. Manage by DATA

Thinking artsy? think again. Define what Data you need to know if you are getting closer or further from your goals, or if you need to modify them. That means: Create KPI (key performance indicators) that are aligned with the goal of your organization, and establish key milestones that help you focus and feel accomplished. Stay away from unsubstantiated information that might as well be a paradigm waiting to be broken.If you are a woman entrepreneur seeking funds: DO NOT MANAGE BY INTUITION

3. Work on Design and Strategy

Boy (I mean girl) that is a hard one. Work ON the business, not IN the business. That means: make your job redundant continuously, learn the basics enough to supervise early on, but quickly hire talent and move to think strategically. Every minute used on doing the work is a minute wasted to think strategically. Stay away from repetitive tasks, use technology or outsource it. If you are a woman entrepreneur seeking funds: GO BEYOND GETTING THE WORK DONE.

4. Become Known

Shake out the boy's club or the men's club. Nurture relationships, everything is right about professional and personal connections. That means: be (or become) a reputable expert in your field, deliver value in your conversations, help and ask for help, and be grateful. It is not what you do but who you are. Stay away from feeling sorry that you are not remembered or recognized, be useful. If you are a woman entrepreneur seeking funds: DO NOT RELY ONLY ON YOUR NETWORK.

5. Be Irreverent

Rejection does not measure your value. Keep your inner voice as more important than other's opinion of you. That means: accept feedback and listen very attentively when someone tells you something you don't want to hear, then filter inappropriate from relevant feedback, and then decided if you accept that feedback. Stay away from making quick judgments without asking enough questions or having data, and accept that no everybody agrees with you. Rejection does not define you, it is an opinion about an idea. Use "What do you mean?." It is a wonderful question. If you are a woman entrepreneur seeking funds: DO NOT PURSUE REINFORCEMENT.

BONUS TIP:

Trust Yourself

A pat in the back does not help you move forward. Yes, failing sucks, and crying can be an option, but retrain yourself to step up. The opposite of success is not failure, it is inaction. That means: shift from victim to hero, life does not happen to you, you happen to life. Trust your capacity to solve challenges. Stay away from (other's) fear from (your) success. Find the relevant support to help you overcome your challenges instead. If you are a woman entrepreneur seeking funds: DO NOT SEEK COMPASSION.

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Is There A Right Time To Start Your Own Business?

Many people think about starting a business. They dream of being an entrepreneur. The idea of being their own boss, making the decisions and having the financial freedom that comes with business ownership is quite appealing. As a business owner, I am often asked how you know when it's the right time to start your own business.

Often our body will tell you it's time. If you are getting an upset stomach on Sunday night just thinking about going to work the next morning, it might be time. If you move from job to job, very quickly getting bored, it might be time. Or if you watch the clock, waiting for lunch, then again for 5:00 to arrive, it might be time.

There is no set answer, but there are steps to take to prepare for it.

Find your passion.

If you don't know what you want to do, then that is your first project. Decide your passion. Passion helps you through a lot of tough times. What do you love to do? What would you do for free if you didn't need the money? Answers to these questions will guide you to choose your new vision.

Don't just quit; have a goal.

Quitting a job without a plan or goal will most often not be a good thing. Put a plan together. Determine the date to turn in your resignation from your current job. Work during the evenings and weekends preparing for your departure.

Most new business have a ramp-up period, so having a business already up and running - even if only part-time - will give you some immediate income from the start. You certainly don't want to quit your income source without some funds already coming in.

Be financially prepared.

Pay as much debt off as you can. Have some money set aside to supplement your business revenues so you can continue meeting all of your financial responsibilities.

While you're still working full time, apply for a credit card in your name and in your business name. Have them locked away in a safe and use them only in an emergency.

Be healthy.

You will spend many hours your first few years. There is more to it than just finding customers. You'll have processes and procedures to establish, a website to create, marketing materials to design, networking to do, social media accounts to create and nurture, quotes to prepare, invoices to send, trips to the bank, etc. Whether you have a service or a product, you'll have all of this to do, and so much more.

Because you'll most likely face stress, work a lot of hours and often forget to eat, you should consider your health. Take vitamins, exercise and eat a healthy, balanced diet. When snacking, choose healthy foods. Drink plenty of water.

Be ready.

Is there a right time to start a business? Only you will know when it is the right time for you.

http://ezinearticles.com/?Is-There-A-Right-Time-To-Start-Your-Own-Business?&id=5809836

How to Introduce Your Gourmet Food Business

It is most likely that you often invite your friends and relatives to keep sampling your best dishes because you love gourmet foods. People who love cooking so much are always doing this, but the best way to expose your dishes to people is by opening a food business.

To introduce as many people to your gourmet food business as much as possible, just invite as many of them as you can on the day you start producing the food and let them taste your cooking free of charge. You need not implore them to come and buy, but just tell them to feel free to serve themselves. That is how you will end up with loyal customers.

You could also go as a volunteer at a school function or a place like that where your cooking will be sampled by all. If you take time to make as many varieties as possible for such occasions, you will soon find parents and staff, asking about your dishes.

This will start landing you some invitations to serve at smaller functions, house warming or birthday parties. That is a good way to start acquiring a small customer base.

Another step to take is to attend as many house parties as possible and be sure to carry one of your favourite gourmet food items. As they begin to praise your dishes, you will be signing on customers without them knowing it.

Of course many people will begin to notice you and your kindness. It will win you many friends and as the social circle continues to widen, so will your list of future customers. You might also find that a few people will begin to buy from you.

If you care to join some community activities; like volunteer work in a church, school or social center, it will give you a good opportunity to meet more people and let them sample your food.

At first it will be expensive on you as you try to charge moderately for the food, but you must keep it up. To do this, you will need to do your shopping economically and serve just small portions which will not drain more of your money. Remember when one day the business starts to grow; will be a good time to recover your costs.

Carry with you some of your best dishes as you go to different functions, and your list of gourmet food items will continue to grow on people's pallets. Soon they will start looking for you to sell to them.

http://ezinearticles.com/?How-to-Introduce-Your-Gourmet-Food-Business&id=4703641

Beginning Your Own Food Business

Many chefs and cooks aim to make money out of their delicious dishes. A good concept is not enough in starting your own restaurant, though. You have to plan, learn the business and customer service techniques, and maximize tools like the Internet and restaurant search engine marketing. Food is not just a need, but also an object of passion and, sometimes, obsession. Many love to indulge in food, while cooks and chefs enjoy cooking for them. These same cooks and chefs would love to make money from their expertise, as well. This is why starting a food business is a common idea. Getting into this venture is not simple, though. This article will discuss some of the things you should know about making it big in the food industry, and some resources you should use, like the Internet.

There is more to a Great Food Business than the Concept

Many people attribute successful food businesses to a unique concept. This creative idea may be the backbone of a restaurant, but it is just one of many parts. A good concept will just remain as it is without the talent. Only a good chef can bring out the potential of a nice restaurant idea. If you are a cook but can't handle leading a restaurant, make it a point to hire a good chef and a dedicated supporting team. The workforce is important in any business.

You should also think of a good location - one that is accessible and business-friendly. The concept should suit the location, and people should find that location easily. Without a good location, your business cannot prosper.

If you have no concept in mind yet, you can start the other way around. Know the market and location first. Find out what food the people love, and one that matches their location well. The risk of this approach is you might come up with a concept that is exciting for now but does not have the potential to last long. As an entrepreneur, you should have a good business vision combined with people's demands.

Food Menu

Creating the food menu is vital in starting a restaurant or a food kiosk. Keep the menu short, but work smart in making it taste the best. A menu with huge variety can only spell doom for your staff. Start small but create a specialty out of it. This is where you can build your business identity.

Promote!

Exhaust all possible resources where you can promote your business. If you have the budget, post signs around your city with the name and address of your business. Use your creativity and include a map or instructions to get to your restaurant. Introduce some gimmicks like discounts for the first 50 or so diners.

The Internet is a free medium where you can also promote your business. Build a website and maximize social sites like Facebook and Twitter to spread the word to your network. You have the option of hiring professional services. Search engine optimization can help make your business more visible online. There is even a specialized means for your industry: restaurant search engine marketing. Providers dedicate this to users who are into food business. This lets you connect with more suppliers and customers alike.

Execution

Quality service is critical in any food business. Owners have to make sure their employees treat their customers right. Don't cut corners, especially with anything that directly goes to the guests, like ingredients and equipment. Allocate a part of your budget for regular enhancement, be it the menu or the restaurant.

At all times, just capitalize on your resources, subscribe to restaurant search engine marketing, study recipes to improve your menu, and always look for new ways to provide quality service.

http://ezinearticles.com/?Beginning-Your-Own-Food-Business&id=7483071

4 Mistakes That Start-Up Restaurant Businesses Make

Restaurant business requires unwavering efforts, dedication and perseverance to achieve success in this type of business. You need to relentlessly brainstorm in order to come out with a suitable concept for your food business. Remember a single poor decision of yours can bring downfall to your food business. Moreover, you should have success-oriented character traits such as zeal, perseverance and a great sense of commitment. As a restaurant owner, you should be able to overcome hurdles that come ahead, and may sometimes change your business tactics if required. Mistakes are a part of every business. You should strive hard to work on your mistakes, and make smart and flawless decisions in your business. Being resilient will help you achieve success in a short period of time.

Here are four common mistakes that many newbie restaurateurs make while starting their food business.

Loopholes in Planning

There is no doubt that planning a business is a boring process, but without a concrete plan your restaurant cannot be a profit-making venture. A solid plan includes business idea, research and market potentiality. It enables you to operate your business in a streamlined manner. Apart from business plan, you should also have a financial plan and marketing plan too. However, it is to be mentioned that your plan should be free from flaws. Otherwise it will not give you desired results. While planning your business, you can seek professional help from experts like chartered accountant, lawyers or financial consultants.

Starting Without Any Specific Goal

A goal gives you a direction when you first start your business. It keeps you on track during your day-to-day business operations. Setting goals help you evaluate what you want to achieve and how you can achieve. As a restaurateur, your business objectives should be attached to your mission and value statements. Make sure your goals and objectives are relevant, specific, attainable and realistic.

Avoidance of Latest Technology

Small business owners should not avoid using new technology, as it can help them work more efficiently and save money at the same time. Although, it may require time for you to learn and understand new technologies, you should not hesitate to implement new technologies, as it can affect your business in the long run.

Not Making a Proper Budget

Budget is a crucial factor and you should decide it carefully while starting your business. You should not overspend as well as you should not spend too little on your start-up project. Keep in mind that large investment without proper execution cannot bring success to your food business. You should make reasonable budgetary decisions while purchasing equipment and software for your business. You should also determine your budget wisely while executing your marketing strategies. Similarly, you should not spend too little that it limits your potential for success.

Besides, fear of failure and lack of confidence can also lead to business failure. Likewise, poor marketing strategies can bring pitfalls to your food business too. Moreover, other common mistakes that most entrepreneurs make are choosing a wrong location and hiring less manpower.

http://ezinearticles.com/?4-Mistakes-That-Start-Up-Restaurant-Businesses-Make&id=8915612

How I Started My Restaurant Business

Oliver Trezise opened his restaurant, The Yurt, in Thornham in rural North Norfolk, in the summer of 2009. He retraces the steps he took to turn his unique idea into a culinary crowd-puller.

"I'd worked in the catering and hospitality industry for seven years, managing various hotels and restaurants. I wanted to do something of my own.

"A yurt is a portable, felt-covered, wood lattice-framed structure in which nomads in the steppes of Central Asia traditionally live. They're fantastic. My mum runs a cottage rental business and she emailed me details of yurts she'd found online. She thought they'd make an unusual additional shelter for the garden.

"Then I met Andrew Jamieson, owner of Drove Orchards, who wanted to open a coffee shop in his grounds. I suggested a restaurant as an alternative and he liked the idea. Three months later, my mother, step-dad and I opened The Yurt.

Sorting out premises

"I was born and bred in Norfolk, knew the 'foody' scene and identified a gap for something simpler and cheaper. Having a restaurant in a yurt is different; therefore it has novelty value. Buying one also costs significantly less than a permanent building or trying to find premises on the main coastal road here in North Norfolk.

"We approached King's Lynn and West Norfolk Council's planning department and invited Environmental Health in. The Yurt is so unique that it didn't fit into to any of the council's definitions, but eventually we made a full planning application. We also had to apply for an alcohol licence, which was delayed somewhat, so initially we only had a weekend licence.

"We researched a few yurt-makers but a company in Cumbria offered the best quality and most practical solution. Soon they began to make the Yurt, which they later erected onsite in Norfolk.

Start-up advice

"I sought general business advice from my mum and a few people I knew who ran their own businesses. We put together a rough business plan and sought advice from an accountant. We didn't borrow from a bank, but used our own savings and did what we could to minimise costs. For example, we used timber from a scrap yard to make tables and bought some chairs on eBay for £5 each. Most things we bought were second-hand.

"I did some free food safety training at the local council under their 'Safer food, better business' scheme. They sent us a pack that included cleaning schedules and a diary to record details of products we would throw out. Then if there's a problem, we can show it wasn't because we've used out-of-date ingredients.

"We also carried out a health and safety risk assessment. Obviously, because I've managed restaurants, I already had a good knowledge of food hygiene rules and best practice, as do the people I employ. Hygiene is essential when you run a food business — you can't leave it to chance."

Pre-launch marketing

"Our customers are a mix of locals and people with second homes in the area. Many people saw the yurt from the road and stopped to have a look. Quickly, word spread and interest grew.

"I also wrote and distributed a press release one month before opening. The Eastern Daily Press wrote a full page about us. Obviously, the people who come to visit the Orchard and its farm shop are told about the restaurant and we get a lot of business this way.

"Our main marketing initiative was a launch weekend for locals. We put flyers around the two local villages and spoke to more than 500 potential customers in the area, telling them more about their new local restaurant and its food. We've been full every Friday and Saturday night since."

Recruitment advice

"We've got 15 regular staff and take on more at peak periods. Staffing was our main challenge, because you have to find the right people. We advertised in local newspapers and approached the catering college in King's Lynn. At first it was just two chefs, two waiting staff and me, with my mum and step-dad helping out occasionally. Recruiting staff became easier the more we became established.

"We work closely with the Orchard and use its fruit and vegetables, as well as benefiting from its good reputation. Our mussels and crabs come from Brancaster and we use two local butchers. Offering delicious, rustic dishes made from wholesome local produce is very attractive to our target market. It also helps to keep costs down.

"Our menus are seasonal and our evening menu changes daily. I produce the menus on my PC, but we paid a freelance designer to create our website. We print our menu inserts and slot them into an outer card, which we had printed by a company in Norwich. They also do our flyers and business cards.

"The Yurt is doing very well. In fact, we've done so well that we've now taken over the Deepdale Café in Burnham Deepdale."

Oliver's top three tips:

• Be as original as you can. Being different can provide a valuable competitive advantage, which is vital in a busy market place.
• Take your time when looking for staff. Having good people in all areas of your business is a must. They are the face of your business.
• Don't leave anything to chance when it comes to food hygiene, health and safety and licensing rules. If you lack knowledge, seek expert advice.

http://www.startupdonut.co.uk/startup/start-up-business-ideas/how-i-started-my-restaurant-business

How to Calculate the Cost of Food for Your Culinary Business Venture

Are you hungry for information about launching your food-service small business? While there’s a lot of shared information to get started across all industries, the food industry poses unique opportunities and questions. One of the most common we see is how to calculate the cost of food. Here’s one approach from small-business expert Sam Ashe-Edmunds, who dishes out food-cost calculations into nine steps to help ensure that you’ll be able to keep a consistent menu, please customers and remain profitable.

 

Here’s what he has to say:

 

Step 1: Pick a dish to start and list all of its ingredients – even condiments and garnishes. You’ll want to make sure that the portion for each dish is the same so that it always costs the same.

 

Step 2: Calculate the cost of each ingredient. Take a head of lettuce, for example. If it costs 75 cents and you get 30 leaves, the lettuce cost for a dish that includes one lettuce leaf would be about 2.5 cents. Ashe-Edmunds reminds us to include a proportion of any expenses directly related to purchasing foods, such as delivery fees or interest.

 

Step 3: Add up the costs of all the ingredients for the dish, but don’t include costs for labor or actually serving the dish.

 

Step 4: To start figuring out if you’ve priced the meal right, divide the menu price by the food cost to calculate the percentage of the price that comes from food. If you charge $10 for a meal for which food costs are $5, then your food cost is 50 percent.

 

Step 5: Now, you’ll want to determine overhead cost per meal, which includes everything not related to food that’s required to run your restaurant. This includes things such as labor, rent, marketing, taxes, etc. So, consider what it will cost to run your restaurant on a daily basis – then divide that number by the number of customers you think you’ll serve every day. If your overhead is $1,000 per day and you have 200 customers each day, your overhead per person is $5.

 

TIP: Keep employee meals and food theft in this overhead figure as well, because they’re not included as direct costs to serve a meal but can’t be left out.

 

Step 6: Using your overhead costs as a guide, decide your ideal food-cost percentage. If you charge $10 for a meal and your overhead cost is $6, then your food costs can’t be more than $4 to break even. Want a $2 profit per meal? Then you’ll have to charge $12 for that particular dish.

 

Step 7: Take a look at the prices listed in your menu to figure out if they’ll cover your overhead and food costs – and if you’ll be able to make a profit. So if you’ve calculated an ideal food-cost percentage of 20 percent and a dish uses $4 of ingredients, you can’t sell that dish for any less than $20.

 

Step 8: You may need to calculate different food-cost percentages for different services or items, such as a breakfast menu versus dinner menu, because of different requirements – some less, some more – to satisfy each dish.

 

Step 9: Finally, examine your sales by item to determine if your food-cost percentages are adequate to keep your restaurant in business. If it turns out you’re selling at primarily a low cost, you might need to raise prices (or lower food costs) to be profitable.

 

TIP: Get a more complete picture of your food costs by checking out total food costs per service and dividing them by total sales. Then you won’t have to calculate the actual cost of each menu item.

 

 

http://www.sba.gov/community/blogs/how-calculate-cost-food-your-culinary-business-venture

Selling Food and Drink Online: Product Descriptions Top Tips

Selling food and drink online can sometimes mean exercising creative muscles you might not have used in a long time. If writing about your products isn’t something that comes naturally, fear not! We’ve put together some top tips for writing product descriptions – inspiration guaranteed.

Whether you’re about to start selling online for the first time or thinking of fine-tuning your existing online shop, here are 5 key tips to help you overcome that dreaded writers block.

 

1. Who are you writing for? 

If you’re an established business or are used to selling face-to-face, you might already have a clear picture in your mind of who your target customer is. Perhaps your typical customer is a health-conscious foodie who knows her shallots, or the discerning husband shopping for the perfect birthday gift for his  (incredibly lucky) wife?

Having a clear idea in mind of who you’re writing for before you get started and this will make the whole process of writing product descriptions much easier.

If you don’t have any direct experience to draw from, who can you imagine buying your products online? Who would your dream customer be?

 

2. Answer their questions 

Now that you have an image of your customer in your mind, imagine what would be going through their head before buying your product online. What would they want to know? What questions would they have? The health-conscious foodie might want to know about the exact provenance of your ingredients and suitability for her special diet. While the gift-hunting husband might be more concerned about whether your will arrive in drool-worthy packaging (and, whether you can save his bacon by delivering the goods on time).

Make a list of questions you think your customer might ask, and ensure you answer these key points in your product copy.

 

3. Know what makes you different 

When you’re selling food or drink you’ve produced yourself, it’s sometimes easy to take the small details for granted. Of course you bake your biscuits using traditional techniques! Of course your eggs are free range! Why wouldn’t you use British butter, organic flour, hand-decorate your creations…..and ship them in a hand-illustrated box?!

These exquisite details can make all the difference when it comes to differentiating your products and standing out from the crowd online. So don’t forget to include them when writing product descriptions for your shop.

 

4. Don’t be afraid to sell

Remember that when buying online, customers don’t have the opportunity to pick up, smell or taste your wonderful creations. So while it’s absolutely true that your product photographs have a crucial role to play in grabbing browsers’ attention and showing off your wares, your product descriptions need to fill in any gaps. Imagine you’re selling face-to-face at a fair or market – what would you be telling potential customers there?

Whether it’s suggestions for how to use your product, the fact it’s a Great Taste Award Winner or sharing praise other customers have lavished on your range – don’t be afraid you’re being “salesy” – just tell it like it is.

 

5. Tell stories

For many shoppers, buying from independents (whether online or offline) is a deliberate lifestyle choice. Many will want to support small businesses and value all the little details that make buying from you a special experience they just won’t get from a larger retailer. So don’t miss the opportunity to give these customers what they want! Use your product descriptions to paint a picture and draw potential customers in.

Whether it’s the fact you make your gourmet marshmallows in small batches from your family kitchen in Cornwall or that you’re a fourth generation cook using recipes handed-down by your Great, Great Granny….. if stories form an important part of your brand,  weave them throughout your shop.

 

 

http://blog.yumbles.com/2014/07/01/selling-food-and-drink-online-product-descriptions-top-tips/

Charlie Bigham: Cooking up a successful food business

Inspiration can often come from strange places. For UK ready meals boss Charlie Bigham it was being unable to sleep at the border between Iran and Pakistan.

Mr Bigham was 28 years old at the time, and he and his then girlfriend were travelling from the UK to India by camper van.

"It was very, very hot, and we were in a really tough place," he says. "I couldn't sleep, so I just laid there restlessly thinking about what I was going to do for a living when we got back home.

"I decided there and then that I was going to set up a food business, and it was going to look a bit like this."

Work experience

Mr Bigham had previously worked as a management consultant in London, before he and his girlfriend quit their jobs to go travelling for nine months.

His ambition was to set up his own company when they returned to the UK, and now he had his idea - he was going to establish a business that made upmarket ready meals.

Mr Bigham was not going to let the fact that he had never worked in the food industry before put him off, and instead he decided he would quickly set about gaining the knowledge and skills he needed.

And so upon his return to the UK he got a job at a delicatessen in London's fashionable Notting Hill area.

"I've always been really interested in food, but I had no food industry experience, so I knew I had to get some cheese under my fingernails, so to speak," he says.

Business inspiration can come from unlikely circumstances

He ended up spending almost four months at the deli, and at the same time did lots of research, and working on recipes.

"It became clear that the idea of making meals which are then sold via shops was a very good idea for a business because it was a massive market, yet one which was very straightforward to start up in," says Mr Bigham.

"I knew we could start under the radar before any bigger rivals could crush us, and then build quite quickly."

'Knocking on doors'

In November 1996, 11 months after his return from travelling, and now married to his girlfriend, Mr Bigham launched the business with £25,000 of savings, calling it simply "Charlie Bigham's".

To begin with, it was just him and one chef based at a small facility in London's Park Royal business estate.

Mr Bigham says: "We had just three product lines to start with - zesty Caribbean lamb, Cajun chicken with salsa, and salmon with a dill and cream sauce. I think we made just 20 meals in total in that first week."

To get sales moving, Mr Bigham, now 47, says he simply started "knocking on people's doors".

"I went round all the posh delis in London, and the big department stores with food halls. Everyone was approachable, and said, 'Yeah we'll give you a go'.

"I just had to be mildly persuasive, and I'm not a salesman.

"What greatly helped us, is that you have to remember that at the time, most ready - or convenience - meals, as I prefer to call them, were pretty dreadful.

Charlie Bigham's food is now stocked at Waitrose, Ocado and Booths

"We were one of the first to make quality ones without anything artificial. This set us apart and made shops interested in stocking us."

But while selling to posh stores in London was pleasing, Mr Bigham realised that in order to grow the business he needed to win a contract with one of the UK's supermarket groups. And so he cold-called Waitrose.

"I just picked up the phone and rang the Waitrose switchboard. I managed to persuade a lovely woman on the phone to put me through to a buyer. I got a meeting, and the buyer said she would give us a go."

Charlie Bigham's meals have been stocked by Waitrose ever since, initially at 40 stores for a successful trial period, and then nationwide. Online supermarket Ocado, and Booths, the north of England supermarket chain, have since followed suit.

Good timing

The company now employs 200 people across two sites at the Park Royal business park, and has an annual turnover of £20m, which is now growing at 19% per annum. 

Charlie Bigham's best sellers

1 Fish pie

2 Steak and ale pie

3 Lasagne

4 Moroccan chicken tagine

Mr Bigham says his former job as a management consultant helped him manage the company's growth over the past 17 years.

But he is the first to admit that luck and good timing played a major role in his success.

"The only way you can ever set up a successful business is to be lucky," he says. "It is the thing you need more than anything else. Anyone who says otherwise is just lying."

Mr Bigham says that most important piece of luck was all to do with timing.

"I set up a food business just as interest in food was blossoming in this country. Suddenly there was a wealth of TV chefs, and the national newspapers all added food sections at weekends.

"And the supermarkets were all being brave and looking outwards towards new suppliers. There was no planning or forethought about all this on my part, it was pure luck."

'Hugely privileged'

Mr Bigham today gives himself the job title "chairman and creative director". This followed his decision back in 2010 to bring in someone else to handle the chief executive role.

The company has no plans to start exporting

"It has enabled me to focus on the bits of the business I'm really interested in - product development, and the big strategic picture - working out plans for the next three to five years," he says.

"The bit in the middle [the day-to-day financial decisions etc] I'm easily bored by, and is best done by someone else."

Looking ahead, Mr Bigham says the company has no plans to start exporting, because the freshness, and therefore limited shelf life of his products, makes it too expensive.

Nor does he ever intend to move production away from London to somewhere cheaper, because he says he is loyal to his hard-working staff.

"I'm proud of what we have done to date, but I'm in no way complacent. Owning your own business is a hugely privileged position to be in, because I work with people I have chosen - not many people can say that."

 

http://www.bbc.co.uk/news/business-24434154

5 Steps To Starting A New Specialty Food Brand

As a bulk oil ingredient supplier, we have an unique vantage point: we get watch food companies grow from their inception into a strong brand name and then, (for the lucky few) become nationally renowned. This is one of the perks of our job: the joy in watching something real and strong grow from just a little seed.

We often work with these manufacturing companies from their start-- as they’re writing their business plan, to comparing how to bring their new ingredients in. And then later, we get to see their finished products flourish. We have the privilege to help them transition from small to large, and watch them grow. Many manufacturers we’ve worked with go on to sell to Whole Foods, UNFI, and other natural grocery chains.

But, most food manufacturers start their journey along the same path. To be able to build a solid foundation, we’ve noticed that they all need to need to learn the same things about the industry and make some key decisions about their new business. These decisions will allow them to really get their feet underneath them and begin growing their brand.

So as a way of paying it forward, here’s what you should keep in mind as you’re starting your new food brand. We hope others’ experiences can help you flourish!

New Food Business Startup Checklist

Want to start a food business? 1.    Business and Marketing Plan. Preliminarily, even just brainstorming ideas on paper to create a basic foundation is a good start. Unless you are planning on getting an SBA loan or funding from Angel Investors, Venture Capitalists, etc. then you don’t have to have a formally completed business plan to get started. A business plan is great to put your ideas and vision on paper, but most of the time it will be pretty fluid during the first year or two – so don’t waste too much time stressing about it. Now, if you are seeking outside funding/financing to launch your business, then you will certainly need a solid, polished food business plan . 2.    Establish business name. You can have a corporate name such as “Your Name Foods Incorporated” and a different brand name (or names) such as “XYZ Sweets” for your products. Setting up your business name this way is a good idea if you plan on introducing brand extensions at a later time that are completely different from your first line (i.e. you start with a line of salsas and sauces but then introduce a different line of baked goods a year later). A good example of this is Bodine Specialty Foods (corporate name) who produces several lines, including their “RC Buck’s” line, their “Cocktail Dancers” line, and their “Memphis Mojo” line, just to name a few. It is strongly suggested to trademark your business and (and eventually product/brand names), which can be done online here: www.uspto.gov 3.    Business filing (Sole-proprietorship, LLC, S-Corp, etc). Before filing, you will need to register for an EIN (Employer Identification Number) which can be done online at the IRS website here. It is then advised to consult with a CPA to determine best option for your business structure and state in which you conduct business. Your CPA can do the filing for you, but you can also do it on your own (and save some money in the process) at sites like www.incfile.com once the filing status has been chosen. 4.    Manufacturing: Self or Co-pack? It is recommended to make this decision as early as possible. This can be one of the most difficult and frustrating parts of launching a food product. •    Self-manufacturing: will you be building/customizing your own facility, renting a commercial kitchen, or using a shared commercial kitchen? Your facility will need to comply with health standards and will need inspection from the local health department. •    Using a co-packer: a co-packer (contract packaging company) is a company that will produce your product for you in large quantities for a fee. Most co-packers produce their own line of branded products, but aren’t operating at full capacity – so they also produce other products to maximize their production facilities’ efficiency. Consider different production obstacles your products may encounter (i.e. products with meat and dairy will require USDA certified facilities, not just FDA certified). It is always preferable to find a local co-packer within a reasonable driving distance for testing and quality control purposes. Co-packers provide a great advantage when getting started as they typically have a food-scientist/technologist on staff that can help you with your recipe and regulatory issues (shelf-stability, compliance, etc). *Get help understanding the ‘ins and outs’ of manufacturing food products . 4a. Product liability insurance. You will need to get product liability insurance to protect your business. This can be attained from most insurance companies with most policies offering coverage in the $500k-$2MM range. 5.    Logo and Branding. This is the face of your business/products, and must be done with great consideration and planning. Your logo and brand should be something that can implemented with consistency throughout all literatures and sales channels such as your packaging/labeling, letterhead, business cards, sales materials, order forms, and website. Get help with food logo design and food branding . 6.    Packaging/Labeling: if using the services of a co-packer, they will likely have many resources for bottling/packaging to fit your needs. If you plan using a non-standard package/bottle/jar, make sure you check with the co-packer to see if they can fill that type of container. Some co-packers offer nutritional label & ingredient statement analysis services, but most of the time you will need to take your recipe to a 3rd party labeling company. LabelCalc is our preferred provider of nutritional labeling and ingredient statement labeling services. In addition to the nutritional/ingredient labeling, it is recommended to attain UPC codes for each of your SKUs. There are a number of resources available online for UPC codes, and surprisingly, the process and turn-around time is quite simple, quick, and reasonably priced. Once you have your nutritional/ingredient statement labels and UPC labels, you will need to find a company that help with your food label design. 7.    Website , Sales Materials Business Cards, etc 8.    Time to Market and Sell! http://www.gourmetbusinesssolutions.com/new-food-business-services-51?task=view

Cafe Culture Enjoys Homemade Success

 

FISH finger sandwiches are rarely found on the menu of a city centre cafe – but that is what makes one deli stand out from the crowd.
Homemade, in Pelham Street, Hockley, is a quirky hideaway which fuses traditional homely grub with one or two surprises.
The lifelong dream of owner Jasmin Barlow-Wilkinson, it has been drawing in the crowds since it first opened its doors nine years ago.
The cafe is now in the running to win the Post and Nottingham Business Improvement District's competition to find the best independent business in the city, after being nominated by customers.
The contest, now in its third year, is designed to discover and celebrate the best independent retailers across the city for 2014.

For Jasmin, the key to Homemade's success is its "feel good, family-friendly" vibe.
The name perfectly sums up what Homemade is all about – food made from scratch that makes people feel at home..
The 35-year-old said: "When people come here they know what they're getting – we're not trying to be something we're not.
"Our feedback is really positive – we've got a great army of Homemade fans who tweet about us and write nice things on Facebook."
But far from being a "hipster hangout", Homemade attracts people from all walks of life.
Jasmin added: "Sometimes you'll look in the cafe and see some guys having a business meeting, some students celebrating the end of exams, some yummy mummies sitting with their babies and two old ladies having some tea and scones.
"It's always a real mix. But that's what's great about Homemade – there really is something for everyone."
Jasmin, who started cooking at the age of four, is passionate about food.
Her decision to open a city centre cafe has paid off, and there are now two other Homemade cafes in Sherwood and on The Forest recreation ground.
She said: "Having independent businesses is really important to any city.
"It gives it that USP and unique quirkiness.
"Brighton is one of my favourite places, where the independent shops outweigh the chains. I think that's what Nottingham could become.
"It's taken a while, but there are now more and more independent shops in prominent places, which is great."
Homemade Pelham Street cafe manager Jessica Buckley, 25, says being able to take the establishment in new directions marks it out from some of its high-street rivals.
She said: "I worked at Tesco for six years and left because I wanted to come to an independent company.
"I really feel like we're making more of a difference here – it's much more personal and I can actually make decisions that change the direction of the company by listening to what customer want.
"We've got so many regulars that we know so well – a lot of them have become friends."
Customer Harriet Shaw, 21, visited Homemade after hearing good things.
She said: "I love quaint little cafés like this – it has such a nice feel to it.
"I much prefer going to individual places like this than going to one of the chains.

 

http://www.nottinghampost.com/Cafe-culture-enjoys-Homemade-success/story-21206981-detail/story.html

Monday’s Business Tips: How to Start a Fast Food Business From Home

Are you interested in starting a fast food business? Do you want to open a fast food restaurant but you don't know how to go about it? Do you need a sample fast food business plan template or feasibility

study report? Then I advice you read on.

Starting or opening a fast food business is challenging and difficult, but the experience can be rewarding if done correctly. Americans alone spent around $110 billion on fast food in the year 2000. Now with a rapidly growing population throughout the world, that figure is only bound to increase.

The fast food industry is highly competitive, with notable brand names like Drum stis, Chicken Republic, Mr Biggs, Tantalizer, Crunchies, Tasty Fried Chicken (TFC), Kentucky Fried Chicken (KFC), etc. It is also capital intensive and as well rewarding, so it is very essential to have a sound business strategy in place.

However, it will be best if you start a fast food business from home instead especially if you are aiming at having a restaurant of your own, but do not have enough resources. So if you are interested in starting a fast food business from home, then below is a sample business plan on how to go about it.

1. Your target market should be identified

Before ever investing a dime in starting a fast food business, you must think of who your target customers are and as well consider their different generational uniqueness and preferences. Try to understand the demographics of your potential customers and how they frequent fast food restaurants You can get such information by doing an online research or hiring a company that will provide a market research report for you.

• Make a research of fast food franchises in order to discover the
most suitable one for you.

• Get knowledge about the market demand in the location where you
want to open a fast food business.

2. Determine what type of fast food business you would like to operate

When it comes to a fast food business, there are many options and these include food truck business, ice cream truck business, fry fast food and burger restaurants, fish fast food restaurants, chicken fast food restaurants and sandwich fast food restaurants. It is left for you to either start your own fast food restaurants or purchasing a fast food franchise. A franchise is a nice option for those who wants the parent company to manage some of the marketing and operations. But bear in mind that there are royalty fees and up-front fees you will be required to pay the franchisor.

3. Write your business plan

The next step is to develop your business plan and strategy. When writing your plan, include a detailed description of your fast food business concept and target market; your market analysis, hiring strategy; pricing and menu options, employee training and financial projections.

4. Secure funds from investors or start with your money

A fast food business will never be up and running without some expenses like building rental or mortgage payments, supplies, food, employee salaries, insurance, equipments, marketing and advertising.
So you have to factor out how to raise the money to startup. If you can't personally finance the business, you can always take into consideration of other sources of funding like family and friends or government programs, etc.

5. Choose your location

When choosing a location for your business, you must consider some factors such as the volume of traffic in that area, local law and ordinances, customer accessibility, parking, lease terms, site history and sales projections.

Now for those that don't have the capital to start big, you can start small from home by using a good, ventilated section of your house. It does not necessarily mean that you will need to renovate your house to become a big fast food establishment like Taste Fried Chicken.

You can start by delivering your fast food to your neighbors and small business owners existing within your vicinity. You can also start delivering your products to young students and kids in your neighborhood. This is a logical step since it will not require a large startup capital, and your neighbors will surely love home delivery.

6. Design your fast food restaurant layout

You should take into account the amount it would cost you to design your restaurant, office and also the size of storage space you will be requiring. Carryout research or hire a professional design company to assist your drawing plans and create layouts for both the dinning and production areas for your business.

7. Get the understanding of safety and legal implications

You should not forget to consult a lawyer in this case, so that he will walk you through the legal processes for owning a fast food business.

8. Locate suppliers that will be sourcing your food and office supplies
You have to negotiate and get the best terms that is possible and most importantly, reach an agreement so that when you reach a certain level of sales, your rates will go down.

9. Buy the necessary fast food utensils

After earning some money from your delivery service, you can start investing on high quality fast food cooking utensils. A few of those utensils are:

1. Burger Equipment
2. Fryers
3. Bain Maries
4. Boiling Tops
5. Counter Fridges
6. Hot Dog Grills
7. Pizza Oven

10. Setting Up Your Diner

Subsequently, your delivery customers might increase in number. When that happens, deliveries can become such a hassle. Because of that, it is the right time to set up a simple diner. You can use your front yard, and put some beach parasols, tables, and chairs.

11. You should hire and train employees

You will be required to recruit and train managers and other employees and as well determine the play scale for all employees in your fast
food restaurant. Always take into consideration of things like employees training, benefits, bonuses and career paths for prospective
employees. For a start, your top picks as employees are your family members, and friends. However, in case they are unavailable, you can consider hiring college students.

12. Advertise your restaurant business

It is important that you advertise your service since nobody would ever know your business if you do not tell them. One of the few things you could do is to post some flyers around your neighbourhood. Or in case you have some time to burn, you could go around in your community to inform every person there about the service you offer.

It is also important that you outline strategies and develop a detailed marketing plan which you will be using to advertise your fast food business. Always consider marketing mediums such as television, print, radio and internet-based marketing. Immediately you have launched your marketing strategy, your fast food business is qualified for the grand opening.

13. Renovate or Relocate

The decisive moment comes when you already have attracted a large customer base. And together with that, you will need to decide whether you will need to renovate your house to become a legit fast food place, or to relocate your business. This decision is up to you.

At this stage, don't forget to get your business licensed because the government will definitely notice you and check to see if you are running your business legally. In addition, after your expansion, you can consider if you consider continuing your fast food business, or
changing it to a restaurant.

 

http://nigeriasrenaissance.com/index.php/news/item/42040-monday-s-business-tips-how-to-start-a-fast-food-business-from-home

Starting a Home-Based Food Production Business: Making Your Culinary Hobby Your Job

 

If it is your passion to reap the rewards of your culinary skills by starting an at-home catering or food business, you can find yourself at the center of a very rewarding form of business ownership.

In addition to providing the flexibility of a work-from-home business model, it can also offer a low risk entry into the competitive and ever-popular restaurant and food service business industry. And, it will allow you to learn the ropes at your own pace, in the familiar surroundings of your own kitchen! Take Martha Stewart, for example: She famously entered the food service business with a basement-based catering company in 1976. From there she quickly branched out and opened a gourmet food store, before entering the media industry and becoming one of the most successful lifestyle brands in the U.S.

Of course, before you start a home-based food business you will need to understand the rules and regulations that govern the production of food for public consumption in an at-home environment. For example do you need a separate kitchen? What about product labeling? And so on.

You'll also need to pay attention to the basic legal and regulatory requirements that all small business start-ups have to address (registering your business, getting a tax ID, e-commerce, etc.). And lastly, do you need financing for your venture?

All this can seem overwhelming, so here are five steps that you can follow that will help comply with the rules and regulations that govern home-based catering or food production businesses:

 

1. Ensure that You and Your Home Are Properly Equipped for the Business of Food Production

While this isn't necessarily your first step as a home-based food business owner, it is something you will need to consider before you kick-off your new venture.

If you already know what product(s) you intend to produce, ask yourself if you have the right equipment with which to adequately prepare, cook, store and transport your product. Will you need to invest in a separate kitchen or additional equipment to scale to your business needs (many states forbid the use of residential kitchens for commercial food production)? How do you intend to support the ebb and flow of production? Are you willing to hire employees? And, once you share control of food production, how will you ensure consistent quality standards?

Some local governments also restrict at-home commercial food production, so be sure to check out local zoning laws and contact your local Public Health Department.

 

2. Finance your Home-Based Food Business

While starting a home-based food business can be low risk, you may need to consider available financing options to help cover your start-up equipment or other asset costs. The government's Small Business Administration (SBA) offers a variety of loan programs - it won't lend you the money, but the government does provide a guaranty to banks and lenders for money lent to small businesses. A great option is the SBA's Microloan program, which guarantees loans up to $35,000 but typically averages $13,000. Find other loans using the government's Loans and Grants Search Tool.

 

3. Register and License Your Home-Based Business

Once you are ready to start your business venture, you will need to take the appropriate steps to 'register' your business with your state and county government; obtain appropriate food service and general business permits; as well as register with the IRS. The government (through SBA.gov) provides a lot of guidance on making sure your new business is operating legally; check out this guide on Steps to Registering a Business.

 

4. Understand the Regulations that Govern Food Production

Aside from ensuring that you can produce food for commercial purposes from your home, you will also need to understand and comply with a variety of laws that govern food preparation, food safety, product packaging and labeling, etc. At the local level, your county's Public Health Department is responsible for regulating commercial food production activities, and regulations vary from jurisdiction to jurisdiction.

If you produce a food product that is shipped across state boundaries then the FDA and Department of Agriculture both provide compliance guidelines. For an overview of federal regulations that affect this industry, check out the resources on Business.gov's Restaurant and Food Service Business Guide or visit www.foodsafety.gov.

 

5. Marketing Your Food Product or Services Online

If you intend to accept orders or even just advertise your food service business online via a Web site, there are a few government laws that you'll need to follow with regard to e-commerce, sales tax, truth in advertising, data privacy, and so on. Find out more at Business.gov's Online Business Compliance Guide.

So these are five basic steps you need to consider before embarking on a home-based commercial food production or catering business. Since much of the regulation is at the state level it's worth talking to a small business expert in your community to get practical advice. The SBA has local offices across the country; Small Business Development Centers and SCORE (link is external) can also help you get started.

 

http://www.sba.gov/blogs/starting-home-based-food-production-business-making-your-culinary-hobby-your-job