Quality fresh ingredients are key to a successful small food business.
Business opportunities for small food businesses are limited only by your creativity in the kitchen. A small food business should focus on a niche within the specialty food market. A niche business will allow you to compete with larger food companies and become recognized sooner since you will have a small focus. Operate your small food business out of a small commercial kitchen space with a retail space in the front. Location for your business will be critical to your success. Research your market carefully to determine the right combination of location and product.
Instructions
1. Research your market to determine what businesses exist within this market as well as needs that may not be fulfilled. Look for a sector of the market that is not being served that you also have an interest in. This should be your focus. Further research will allow you to refine your idea for a niche market to create. An example would be that there are many barbeque supply stores, fresh meat markets, and no specialty sauce providers in the market. You might consider starting a line of specialty barbeque sauces as your small food business.
2. Write a detailed business plan based on your research and planning. Provide a mission statement to define your business goals. Write a description of your business. Include details about the necessary skills you will need, ideal location, production/retail layout, equipment, marketing strategy, pricing, and financial projections. Attach any documents that you will need to start your business at the end of the business plan. The business plan should detail the first year of the business. Revise the business plan after a year to reflect the current situation of the business.
3. Fill out and file a business registration and tax form as well as any other necessary forms at the local, state, and federal level. You may need a permit for your building, food safety inspection, as well as a license for food production. Check with your local and state authorities to determine the specific regulations for your area as regulations vary from one locale to another.
4. Meet with a local insurance agent to discuss your options for insuring your small food business. Considerations for your business will include claims of food-related illness, injury while in your retail space, and theft and or damage of your products. A package will include liability as well as property insurance. The agent will be able to advise you of your operation. Be sure to provide an in-depth description of your business so that you receive the coverage you need.
5. Determine what qualifications you will need to produce your food products. You may already be a chef or cook, but your specialty will require additional skills. Pick up a cooking class or workshop to gain the additional skills needed to produce your product. Experiment with techniques and recipes until you have a line of exceptional products. Ask for input from friends and family along the way. Use their input, but don't stray from your culinary vision.
6. Locate a production/retail space based on your research and budget. An ideal location for a specialty or niche food company is in a shopping or restaurant district with small boutiques and independently owned shops. Heavy foot traffic and boutique shoppers will provide you will a steady flow of people, many who appreciate local products and the unique quality of specialty foods.
7. Set up your kitchen with equipment to produce your specialty foods. The equipment you need will vary according to the food you are producing, but common kitchen equipment includes stove, refrigeration, pots, pans, measuring tools, mixers, food processors, serving dishes, packaging materials, and dishwashing equipment. Devise a work flow for your kitchen and place your equipment accordingly. Achieve the work flow by listing the steps necessary for receiving food supplies, production, packaging, and clean-up.
8. Locate a food supplier for your business. A supplier that provides local ingredients is ideal for your niche market. Use of local ingredients is a good marketing tool as well as a way to support other local businesses. Be sure that you will be able to maintain a consistent and steady supply of ingredients.
9. Set up your retail space in the front of your shop. Create a boutique experience that reflects the mood, feeling of your product. Sell the lifestyle as opposed to the actual product. If it is a specialty sauce business, for example, you might consider setting up a high-end barbeque experience to represent a complete outdoor living space. Your sauces can be tastefully incorporated into the display.
10. Work with a web designer to create an interactive e-commerce website. Provide a secure website so that your products can reach a larger market. Security is a large concern for online shoppers, so make sure your website is equipped with the latest security measures. Integrate social networking links that allow users to share the products with others in their social networks. Write a blog to highlight new products as well as creative dining ideas based on your products. Create a forum to allow interactivity on your site. Use the feedback to create a better product and level of service.
11. Advertise your opening in local newspapers. Place ads in the local newspapers for weekly specials or with special promotions. Join a local specialty food organization to take advantage of their collective marketing initiatives. Join your local chamber of commerce. Many chambers offer networking and advertising opportunities.
Tags: your business, food business, business plan, retail space, based your, business will