10 Key Steps To Starting A Food Business
1. Be unique
There are many different food businesses out there. In order to stand out from the crowd, you need to come up with a brand-new concept or a concept which already works, but with your own USP (unique Selling Point). Conducting market research is essential to find out what is already out there, what is successful and how you can make your concept compete and stand out in a highly competitive industry. That said, remember not to be too ‘out there’.
2. Get practicing
If you want paying customers to buy your products over and over again, then your products need to be of a consistently high standard. Perfect your recipes as much as possible. Conduct taste tests with family, friends and local markets and welcome both positive and negative feedback, in order to help you improve your product.
3. Create your business plan
Ensure investors and stakeholders take your proposal seriously and make sure your idea is viable with a solid business plan. Follow expert tips to ensure your business plan is professional and detailed.
4. Contact authorities
Contact your local Trading Standards Officer for labeling and legal advice. You will also need to contact your local council and their environmental health department. Their advice can help to make sure you have a safe and effective kitchen to comply with hygiene requirements.
5. Register your business
You must register your business at least 28 days before trading. Registration is free with your local authority. Depending on your food business, you may need approval. Once you are registered, an officer may inspect your business. As well as registering with your local council, you also need to register your business or sole trader account with Companies House.
6. Get food hygiene savvy
Food safety is crucial to your new business as well as being a legal requirement. Food safety training can help you and your team to get up to date with the latest food laws and regulations to ensure you remain compliant.
7. Gather capital
From loans to crowdfunding, to start a food business, you will need an initial investment to buy supplies, stock and potentially premises. You’ll need starting capital to cover staff costs, insurance and ensure your business is ready to go. That said however, many food businesses fail early on because they are under capitalised, over-spend on non-essentials or get into too much debt.
8. Start marketing
Make sure your customers know where to find you with marketing. This could include advertising on social media, building a website and sending flyers out. Marketing can be expensive, so it is essential to set aside a budget for this purpose.
9. Shine with customer service
To keep your customers returning again and again, your business needs to stand out from your competitors. Many food businesses claim to offer exceptional customer service, – but in reality, very few do!
Get the basics right, and everything else will follow. A great product at a sensible price with exceptional customer service is the recipe for success in any food business.
10. Stay positive
As long as you enjoy running your food business, the enthusiasm will show. To build a successful business takes time! Concentrate on the fundamentals; your product, price and service. Remember that it takes time to build up momentum and for the word to get out, so be patient and don’t give up. Stay positive and persevere.
