To create a successful food business, one must have the passion for cooking food and the art of selling it. The combination of the above mentioned qualities is a must for being successful in the food business.
The first step to enter the food business is to identify the product on which the business will be focussed. It is to be decided keeping in mind the taste and likes of customers in the particular area.
While starting a business one must keep in mind to buy the right and necessary equipments required to create the product. Usually in the beginning the equipments and tools can be rented but as the money starts flowing, one can opt to buy them at a whole sale cost.
The product chosen should be able to satisfy the customer and be able to make a profit. Since it is a food product, the level of hygiene should be adhered to strictly as the laws are very strict when it comes to health violations especially in food products. The shelf life of the product should be pre determined which will give an approximate idea to the user about its freshness.
Also it is very important to market the product in an attractive and colourful manner as it helps in luring the potential customers. One can hold a free tasting event where samples of the products can be distributed to the neighbours and people passing by. If they like the product they one can be sure that word will spread around.
Before starting a catering business, one needs to get familiar with catering. Usually caterers are supposed to provide food along with some times supplies and service for social functions such as weddings, parties, anniversaries and social gatherings.
To begin a catering business, one needs to have love for food and a passion for cooking food. One needs to keep calm and cool under pressure when involved in the catering business along with being reliable as catering is a service based business instead of a product based business.
To save on the starting costs, one can rent the equipments instead of purchasing them outright until the cash inflow begins. Renting the equipments over and over can get costly so as soon as the business starts prospering it may be a good idea to purchase personal tools and equipments.
The chafing dishes should be bought in order to keep the food hot along with insulated food containers in order to transport it.
One will need to check with the local authorities before actually beginning with the catering business as it involves hygiene and cleanliness issues. Depending on different state laws, various permits might be needed.
Also one needs to check with the other caterers in the specific area as to determine reasonable prices which the customer does not find too daunting.
With the catering business, marketing is a key tool to promote the business. Putting up printed flyers and sending out business cards can be pretty helpful.
Start Up Costs
The key thing to remember while opening a restaurant or investing in one is that it will take a minimum of two to three years before the restaurant starts making any decent profit. Thereby it is always advisable to have enough capital while starting a restaurant which can support the expenses before it starts making profit.
The restaurant start up costs include the cost of buying or renovating a place, cost of getting the specialized permits and licenses depending on the local laws and the cost of buying cooking equipments.
The expenses will also include the decorating accessories, dishes, cutlery, sales equipments such as cash register and credit card machines.
The cost of food and beverages can also be included in the start up cost itself but it can be negotiated with the suppliers as the business grows and contacts are made.
The average cost of opening a restaurant can range from a quarter million dollars to a million dollars depending upon the taste and style of the clientele the restaurant would be looking to target.
Many a restaurants have failed in the past because often people do not have enough capital to keep the restaurant functioning till it breaks even. It can be attributed to bad business planning or simply bad luck also. It is always advisable to create a business plan with a solid contingency plan and several risk management strategies.