12 Ways to Start a Food Business for Beginners

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How to Start a Food Business? As you know, the food business is currently one of the most popular types of business. Besides being easily recognized by the public, this business is fairly easy to innovate. So that it can present a variety of varied products. Well, if you are interested in trying a business in this field, here is how to start a food business for beginners that you can try to apply directly.

How to Start Your Food Business

how to start a food business from home

Prepare a business plan

Most ways to start a food business are usually focused on the food itself. However, there is something equally important, namely how you manage the business itself. Concrete steps, such as choosing a business structure, managing financial plans, and making a flagship product will be something that must be prepared carefully. The reason is that in this business, you will manage not a few. For example, buying raw materials, making menus, buying equipment, doing promotions, hiring employees, and much more.

Therefore, it would be the right step if you prepare a business plan starting with determining the business idea, product uniqueness, target customers, the concept of the product being sold, to the promotion strategy. Of course, all of these business plans can run smoothly when you can prepare well.

Also Read: 30 Best Legitimate Work From Home Jobs Hiring Now

Define product ideas and uniqueness

As you know, competition is fierce in the food industry. Starting from the form of online food business, at home, or with contemporary elements. You can also find various products with each uniqueness. So it’s not a new thing when you see many people who are interested in starting this culinary business.

Therefore, it is very important to identify the specialization and uniqueness (unique selling points / USP) of the product that you will sell later. As for finding the uniqueness of the product, you can have a better selling point than others. Quoted from americanexpress.com, there are several ways that you can use to determine the uniqueness of your product.

  • List the uniqueness of your product. For example, the highlighted taste, price, portion, and others.
  • Find out how your product can meet customer needs. For example, the price offered or the appropriate portion.
  • Identify aspects of the product that competitors cannot imitate. For example, look or feel.
  • Keep your brand name and product slogan short, clear, and easy to remember.
  • Try to answer the customer’s main question “What’s in it for me?” with your product.

By doing this, you can determine not only the uniqueness of the product but also the idea that is suitable for your business. Well, if you want to know more about how to define a business idea and manage a food business more deeply, you can take the class by clicking the banner below.

Define target customers

The next step is to determine your potential customers. Find out to who your food product will be sold. You can identify your potential customers based on their demographics such as:

  • Age
  • Gender
  • Income level
  • Work
  • Background
  • And others

For example, it would not be suitable for you to sell luxury food at high prices to children aged 18 years and under. Therefore, it is very important to determine this before you decide to sell your food products.

After determining the target customer segment, you can determine the match between your product and your customers by answering the following questions:

  • What did they buy?
  • Why do they buy?
  • Where do they buy from?
  • What attracted them to your product?

The answers to the questions above can also help you in making relevant offers for the potential customers you are targeting.

Learn about competitors

After determining potential customers, the next step is to study the competitors of your business. This is something you should not take for granted. Because knowing things about competitors, can help you to find out the advantages and disadvantages of your product. Try to find out a few things about your competitors such as:

  • What products do they offer?
  • What price do they charge for the product?
  • What do they use to improve product quality?
  • Who are their suppliers and vendors?
  • How do they build their brand?
  • Are they always innovating or not?

In addition, to be able to get more tangible evidence, there is nothing wrong with you occasionally going to a competitor’s store to try out the product while analyzing the business they are doing.

By knowing this, you can determine various strategies that will later be used in developing your business. Like,

  • Create unique products
  • Develop an effective marketing strategy
  • Set prices competitively
  • Help to get customers according to the previous target.

Create a business concept

The next step is an important thing for you to know, which is knowing how the business concept you want to run is. With this, it can be a guideline that can help you in managing the business.

Pay attention to product quality

Because this is a culinary business, the food you want to sell must have a promising quality. One of the factors that influence the success of this business is how the food that you will sell has good taste. Based on a survey conducted by the International Food Information Council Foundation in 2020, 88% of those surveyed stated taste as their main reason for buying a product. This shows that taste should be the main focus in the culinary business, especially in product development.

In addition to the taste of food with various menus offered, don’t forget that portions and packaging are also things that can affect sales. This of course affects the design of your product. Therefore, it is important to be able to create an attractive product design.

Determine the business location

Although later you may prefer to do production from home. However, it is not impossible that in the future you will open a shop and even a warehouse to store food stock. For example, a shop will be needed when you want to sell products directly and provide a place to eat for customers.

Well, if you later intend to open a shop, here are some considerations that you need to pay attention to:

  • Cost (rent)
  • Business location
  • Place size
  • Access to store locations

In addition, the layout of your store must also be considered properly. Quoted from Hospitality Insights, restaurants usually dedicate about 45-60% of their space to the dining room, about 35% to the kitchen area, and the rest to storage and office space. This is of course also a factor to consider when you want to rent a place of business.

Also Read: How To Start An Online Business Successful For Beginners

Find a suitable vendor/supplier

When running a business, you will work with various parties such as vendors and suppliers. These vendors will later supply various needs for your business, ranging from shop equipment, kitchen utensils, and raw materials for food. This makes you have to be able to determine the vendor that fits your business. Because starting from negotiations to shipping goods, it will have a huge impact on your business later. Therefore, it is very important to be able to determine a vendor that fits your way of working.

In addition, maintaining good relations with vendors/suppliers is an important factor. Besides being able to build cooperation, this good relationship can also open up opportunities to get relatively cheap prices from others. However, don’t be too dependent on one vendor/supplier. Because having many choices of suppliers can be a solution when one supplier cannot provide a request.

Make a budget plan

The next step is to compile and determine the budget needed to run your business. This business budget will cover all the costs you will need from funding sources, purchasing raw materials, and operations, to long- and short-term funding planning.

However, before actually running a business, it is important for you to determine the initial funding source that is usually used for capital. Generally, you can get it in various ways such as,

  • Business loan
  • Help from family/friends
  • Outside investors or partners
  • Crowdfunding
  • Government assistance

After having the right source of capital, then you must have clear books of account for the use of funds. By having bookkeeping, you can see various financial aspects ranging from income, expenses, and profits, to losses. In addition, the determination of funds in operations is also important. Because this really depends on the expenses of your business. All operational aspects should be clearly recorded such as,

  • Raw material
  • Bills and place rent
  • Store asset maintenance
  • Employee costs (salary)
  • Promotion fee

Of course, with a clear funding plan, every business activity that you will do later can run well.

Create Rules and hire employees

Standard Operating Procedure or SOP is a set of rules and procedures designed in such a way that all teams in the business can carry out their duties properly, consistently, and according to the standards that have been set every day. This SOP can help you maintain standards and consistency of food & service quality. SOPs can also help you when you want to recruit employees. Besides being able to facilitate the process of briefing new employees. You can also briefly explain the operating procedures of your restaurant.

After having SOPs, you can increase the productivity of your business by recruiting employees. In recruiting, try to choose a candidate who can certainly work with you. Because having these employees can help you carry out operational activities such as, making food and serving customers.

Take advantage of social media and create a website

Maybe this is not a new step. However, utilizing social media to promote your business is still the best option when you want to reach a wider market. With each characteristic that each social media has, it can make you present more varied content and not just focus on promotional content. For example, like Instagram, you can promote your products through endorsements inserted in video content.

In addition to social media, you can also create a special website and present your own online store. The website can also increase consumer confidence and also facilitate the process of buying and selling your products. In addition, you can also promote menus or other products easily.

Register your business on Google My Business

Are you planning to open a shop? Want your shop easy to find? Well, Google My Business can be the solution. But before that, you have to register your shop first. In addition to making your store discoverable in Google searches, you can also add various information about your business through Google My Business. Starting from, the location (Google Map), operating hours, and telephone number, to become a means to have direct contact with your customers.

In addition, with Google My Business, customers can also provide a rating and assessment of your business. So that this can be an evaluation material for the business and can make the culinary business you run grow.

Also Read: How To Make Money While Sleeping

Those are some tips and Ways to Start a Food Business that you can use in building a food business or culinary business.

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