For many people, owning a food business is the ultimate dream. Considering opening your very own food business? Here are some reasons why it might not be as easy as pie.
Thanks to the world of blogging, many food bloggers have found that it is incredibly simple to make the jump from simple foodie writer to running their very own food business. After all, I bet you already know a few bloggers – especially ones who focus on fashion and beauty – who now manage to make their living from their blog or YouTube channel, and have even started to develop their own product range. This is also the case for all the foodie writers who regularly update their blog. They can start to write cookbooks that they can sell, and if they have a particular culinary speciality, they could set themselves up with a food truck or small cafe selling their wares. For many people, this is the ultimate dream. I know lots of people who would gladly pack in their full-time job to go off and start their own food business.
But is it really as easy as that? From the outside looking in, it certainly looks simple enough to get a new company up and running. But being on the other end of this situation – actually needing to put in all the time and effort to get the business off the ground – is a lot more difficult than what it looks.
Still considering going ahead with your very own food business? Here are some reasons why it might not be as easy as pie.
Research The Market
There’s no point blindly setting up your own business. Otherwise, you might try to force your way into an industry sector that is currently saturated, which will make it exceptionally hard for you to make enough sales to break into a profit. One way around this is to carry out plenty of market research before you start setting up the company. This should show you who your main competitors will be and whether or not your local area really does need the product you want to sell. You should be able to carry out your own market research. This might not be so in depth, but it should give you a basic overview of the local market. If you want to get a better overview of what’s going on, it’s worth contacting a market research company like card-group.com/contact/.
Next, it’s worth considering whether your food company will be home-based or if it is worth all the extra expense to move into a professional space. Believe me, this is a huge decision as it could make or break your company! If you currently blog, you might want to consider remaining at home until your company is making enough profit. This is especially the case if you want your company to be a mail order one – you should be able to carry out everything in your own home as you will only interact with customers online or via the phone. But if you want to buy a food truck or rent out a cafe, there is no way you can remain a home-based business. In this situation, it’s a good idea to save up so that you can afford this kind of company space outright before you launch your business. Otherwise, you will find that your company is in a lot of debt in its early years, and that will eat into your profits.
Know The Regulations
When you work with food, there will be a lot of rules and regulations that you need to adhere to. This ensures that your food preparation areas are always as clean as can be and that your food is prepared to the highest of standards. That way, there is little chance of any of your customers falling ill. If they were to become ill with food poisoning, then they would be able to sue your company. And that will be a very costly process for you! To make sure that you are never in this situation, you will need to go on some food hygiene courses to get the necessary qualifications and to find out all about professional food prep. One such certifcate you might need to get is americansafetycouncil.com/content/texas-food-handler-certification, though you will need to check exactly what you should get as it depends on where you live. Each state has different requirements. Taking all of these courses and food hygiene examinations might be quite expensive, but it is absolutely necessary. Not doing so will prevent you from opening your food business.
Keep Written Records
Any formal agreements need to be put into writing. Even if you agree to something over the phone, you should still send a follow-up email afterwards to create a papertrail. No matter who you have been speaking to about the company, whether vendors, potential clients and customers, or even relatives, you should keep it all in writing. Not only does this prevent you from forgetting what was said, but it can also be used as evidence if ever needed at a later date. As well as this, you should also keep all of your certificates, contracts, and other important documents relating to your company stored safely so that you can never lose them.
Price Your Products
Another of the most difficult aspects of running a food company is pricing the products or services. You need to think about this carefully. The products should not be too expensive as this will really slow down your sales. However, they need to be high enough so that you are able to make a profit and cover all of your costs and expenses. As you can probably tell, then this can be a very difficult balancing act. One way to figure out the best price is to see what the market average for your product is. You can do this by checking what your competitors are selling their goods for. Alternatively, you might want to discuss this with your accountant.
So, setting up a food business isn’t always as easy as pie. But you won’t find it completely impossible – you just need a lot of passion and dedication!