Contrary to popular belief, an economically turbulent era can be a great time to start a home based business. If you are interested in putting your culinary skills to work to create a successful business venture, or simply to bring in extra spending money, now is an excellent time to get started. One major factor that works in the favor of a home based food production business during a bad economy is the simple fact that people with less financial resources do not have any less of an appetite. By cleverly cutting overhead costs and production costs while still manufacturing a superior product, you can undercut competition and bring in a mass amount of sales. Hitting on a popular trend, such as green products and organic food products, is another great method to help to position your product in the right place to catch fire with popularity. The possibilities are endless and, if you have the skills and vision, there is no reason not to move forward in the entrepreneurial spirit.
One of the biggest pitfalls that a small business can deal with at the outset is to move forward without setting up a solid strategy and well thought-out and researched game plan. It’s important to know what kind of mistakes other similarly minded entrepreneurs have made in the past so that you may learn from their example. More importantly still is to research the most successful of your predecessors to learn from their successes. As the old saying goes, you shouldn’t be trying to reinvent the wheel. Originality and creativity should come in when it’s time to find or create your products. They can also be excellent tools to use for marketing and advertising, although this is an area where learning from others’ example is also invaluable. If you’ve made the excellent decision to start your own home based food production business, what steps should you be taking now?
1. Research, Research, Research!
You simply can’t do enough research on the subject of the business you are opening. Learning from the trials of other businesses of the same type can save you years of headaches and large sums of wasted money. This step will also help you to decide exactly what type of business you’d like to start. You may not already be aware of how many options there really are. For example, your business could focus on direct online sales, consignment sales at other small businesses, and licensing the product to already successful companies, among a great deal more. This step should absolutely not be rushed through. Find out who has succeeded, who has failed and why.
2. Choose Your Product(s)
Another incredibly important step to take before opening for business is to find the right product or products. What type of food products that you can manufacture with quality in large quantities, are selling right now? Can you find a way to produce these foods at a lower cost than the big competition? If not, how can you make your product more desirable to the general public? Branding is also an important part of this step. You want to capture the hearts, minds and appetites of your customers and leave them telling their friends and wanting more for themselves.
3. Finance Your Business
Now here is a step that scares a lot of potential entrepreneurs away. For many, the idea of starting a business first comes during a financial crisis. It seems like a catch twenty two, but in truth there are a lot of options for financing. The government’s Small Business Association offers a number of different loan programs for small businesses. While this organization won’t actually be lending you the money, they can help facilitate a loan for your business through banks or credit unions. A grant may also be available to you. If you don’t believe you will be eligible for these programs or for a standard bank loan, take a look at online lending options.
4. Get a License
Licensing and registration can be a bit of hassle but is actually fairly easy to do. It’s important to get a grasp of your local city and state’s laws in regards to a food production business. More information on the subject can be found at SBA.gov.
5. Market Your Product
Once your business is up and running and you have the ability to produce, package and sell your food products legally, it’s time to get the word out there. While you can always hire advertising services to help in the process, using avenues like video sharing sites, social networking sites, and viral marketing, can allow your business to take wing overnight.
Remember to constantly expand your business. Look to nationwide distribution, confectionary warehouses and national shipping companies. The options are endless, so keep moving forward with your business!