One of the most challenging businesses to break into is the food business. You may have heard that most food businesses fail within their first year of opening. Even if that is the case, don’t let the failure of others bring your dream of a food business to a crashing halt. With the right research, planning, ambition and a little perseverance, you can make your food service business dream a reality. Before you dive head first into the entrepreneurial world of food, there are few things you will want to know.
Conduct Your Research
The food industry is one of the most competitive areas in the business world. That being said, it is vital that you conduct the right research. Start off by going to business networking events to expand your network of those in the food industry. Ask your freshly new contacts about what works and what they would do differently if they were stating out.
If you know of food businesses that failed, find out the reason. Head to online community forums to read reviews and comments.
Conducting this research will help you establish your target market and identify risk factors, that will help you build a strong business plan.
Study Food Laws and Regulations
An additional step to your research should be looking up the food laws and regulations for your state. Understanding labor laws and food safety laws will ensure that business is meeting mandatory compliance requirements.
Create a Business Plan
Your business plan doesn’t have to follow an exact outline or be incredibly formal. Your plan will act as a guide for you and help match the strengths of your business to any opportunities that may emerge on the market.
A business plan will also come in handy when talking to potential customers, partners, or investors. If you want these people to support you and your business, you need convince them that your plan is solid.
Obtain Licenses and Permits
Since you will be producing products that your customers will be consuming, there will be a number of licenses and permits you will have to obtain in order to be compliant. A Federal Employer Identification Number (EIN), a business license from your city or state, and a food service license from the state or town are just a few licenses you will need.
Examine Your Financing Options
Unless you have enough cash saved up, there is a good chance you will have to look at financing options. There are many financing options from crowdfunding, to miro-lenders, to grants. Crowdfunding websites like Kickstarter and Indiegogo are popular crowdfunding websites used by many entrepreneurs across multiple industries.