It can be tricky to find out how to start a small business of food. Though it is true that the food service industry is enjoying rapid growth, starting the business might be daunting for some people. After all, research shows that 90% of new restaurants fail. This page will show you step-by-step guidance to start your own food business successfully.
#1. Create a Good Food Business Plan
The first step on how to start a small business in the food service industry is doing your research thoroughly. You need to understand the broader landscape of foodservice. Not only that but you also need to learn more about the latest trends in the industry, your competitors, and customer targets. Then, create a solid business plan based on the information that you have gathered before.
#2. Secure Your Financing
It is a common fact that not everyone who wants to start a food business has the startup cash to do so. Fortunately, there are some ways that you can do to have the personal funding for that. Getting a loan becomes a good solution on how to start a small business of food with no cash. As an alternative, you can also bring in a partner, find investors, use crowdfunding, or get government aid.
#3. Find a Perfect Location
If you want to run a restaurant, you need to decide whether you will buy or rent. If you can’t afford both, starting an online food service can be a good solution. Instead of dine-in restaurants, you can offer delivery orders. It is not only practical but also money-saving.
#4. Select Your Suppliers
Suppliers play an important role in food service businesses. In this way, make sure that you choose your suppliers carefully. To find a trustworthy supplier, you can start from local farmer’s markets, wholesale retailers, or F&B conventions. You can also ask fellow restaurant owners for recommendations.
#5. Get Your Business Licenses and Permits
Last but not least. The next step on how to start a small business of food is get your licenses or permits. However, you need to keep in mind that different states require different sets of rules when it comes to licenses and permits in food businesses. In this way, make sure that you do your research to meet your local food regulations as well as the health and safety codes required.