Open your own home food business might be a challenge. Here are some tips we collected from our clients.
- Pizza requires different regulations than sushi, so spend some time to master the food regulations and requirements. Check if and what kind of licenses and equipment to must have to be certified. Remember also to check regulation related to kitchen and storage sizes.
- Maybe you just love your grandma cooking, but will everybody else will? Make a research and be sure there is enough demand for your cooking “niche”.
- As a business you will be handling different types of payments. Not only sales, but also expenses, investments (investments are expenses that will be deducted from your profit suring a period of time – sometimes years), salaries, and other types of payments. Even the sales can come in different ways of payments like cash, credit cards, online payments sys like PayPal, wire transfers, and many others, therefor it is crucial to register your business as a legal entity.
- Register yourself as self-employed. as you need to make tax deductions, social securities payments, and withrow a salary, it is important that you register yourself as a self employed, so all these payments will be deducted from the business cash flow.
- Make yourself familiar with food hygiene requirements.
- When you do not know something, hire professional who knows. This is your business, and despite the immediate will to save money, in some cases it is better to be careful than sorry, because it is not only the extra costs that might be to fix something you have broken, but there might be also legal implications if someone got hurt
- Prepare a business plan and KPI’s. In writing! knowing what your a doing is not enough, putting that in writing, will not only allow you to make sure you have not forgot anything, but will also allow you to see if there is a sense in your business plan.
- Start branding from day one (Google, Facebook, Instagram, and PRs). Most of the small business owners focus on the business operation sided which is a mistake. The owner of a business is also its best salesman. Not only because you are the one who know everything about your business, but more important, you really believe in what you sell
- Calculate your costs carefully. Don’t forget to include overheads. One of the biggest mistakes of small business is to calculate only the immediate expenses which are directly connected to their product and to ignore cost and expenses like: extra miles you will have to do with your car, electricity, insurance, licenses and legal costs, equipment and tools.
- Prepare a storage for dry ingredients, and a second fridge for the ones that need cooling.
- Make sure you run a proper risk assessment.