Starting a food business is always one of the ideas that leave most doubts to entrepreneurs; this is so because they do not know what requirements, materials, and experience are needed. Due to this, studies indicate that 75% of these businesses fail after spending two years in the market.
Although some businesses became successful with owners who knew nothing about sales, it is better to ensure success and know what I need for a food business.
Defining the Concept
There are several food businesses focused on different sectors. For example, one of the most popular in recent years is Fast Food, thanks to almost all the “dishes” offered and more than one way to prepare them (veggie burger, potatoes with cheese, etc.
So, you must decide what type of food you would be directing your business idea. You do not have to limit yourself to a single dish; If you like Italian food a lot, you can offer the main dish, for example, the pizzas; but you can also make other options for the client spaghetti, macaroni, fettuccini, etc.
Why is it important to know what will be sold? Because it depends on the investment we make, many who still do not know how to start a restaurant ask, “How much does it cost to open a food business?”, To which there is no exact answer because each type of food varies in its costs: It is not the same to open a Mexican restaurant to a Japanese restaurant, where many ingredients are imported and raise their cost.
Once you have defined what to sell, it is recommended that you establish the costs that this business idea would generate. Of these, there are two types: Fixed costs and variable costs.
It refers to all the expenses you will do, whose numbers will not change, or at least not for a long time. An example of this would be the rent of the premises and the salary of the restaurant’s employees. This way, you will know how much money corresponds to those expenses and how much corresponds to you.
For example, if you have an ice cream business, you should consider that. Usually, a local of this turn is in central locations, so the rent will surely be a little expensive and increase the odds of profit.
The rent costs $10,000 monthly, which you must add to your Fixed Cost.
If we also consider staff to serve cones, and help with cleaning and other activities, then there are at least two salaries, which would be approximately $8,000 for both.
So, it would be best to consider those costs that will never change, whether you sell or not.
Find Another Location
One of the expenses that end up killing the project for those who do not know how to put a food business is the rent, which is usually a little high. Consider that in a company, the establishment is not everything, but the location, that is, there is an influx and low or no competition. There are many places; go back to search!
Change the Concept
The concept involves something called design, where the presentation of the place is included. The first sight indeed is what falls in love; still, the mistake of many entrepreneurs is that they do not measure with the decoration and invest everything in it when they have not considered other more important expenses.
Another tip you could consider here is to change the business mode. For example, if you want to open a Japanese food business but you cannot pay for the place, then consider starting a sushi business, which is cheaper. Did you know that this Japanese delicacy has a lot of profitability on its own? So, you can sell the sushi at home and go around the streets offering it (where you know they will buy it).
Buy Supplies in Bulk
Some believe they save when they buy ingredients in small quantities, but it is the opposite. Although at the time of paying for the order seems expensive, the truth is that when purchasing wholesale, costs are reduced because suppliers improve the price.
For example, if you have a craft chocolate shop, you can order some bars per package instead of a few dozen, or if you prepare them yourself, you can keep some at room temperature so that they are sold when needed.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.