While launching a food-based business may seem more intimidating than most start-up ventures, it can be a great way to find a market for your homegrown or produced edibles and to build a community of likeminded creators. It might be a lifelong dream, or the logical next step on a path you’ve been working on for years. Because of it’s potential to start small and grow, setting up a small food store is actually a more accessible business venture than many, despite the added challenges of dealing with food regulations. Here’s how to make it happen:
Any time you’re dealing with foodstuffs, you need to be aware of the applicable national and regional regulations in effect. Do your research well ahead of any anticipated launch date because you need to file applications, get permits, and potentially undergo inspections before providing food to the public.
Examine your food production and transport system, preparation and packaging, and storage practices and spaces. Connecting with other food storeowners or food producers in your area can be a good way to gain more understanding of what’s required.
You’ll also need to apply for business licensing just like any other type of business in your community. Research what type of legal status your business should operate under, and get your licensing, insurance, and finances in place. While you’re going to make every effort to ensure safe, healthy, and regulation-compliant food processes, you also need to carry insurance on your business no matter how small as a precautionary measure in case of mishaps.
Research the market
It’s important to understand your competition. If someone is selling the exact same thing as you down the road for a lower price, you need to know that and match prices or convince customers that what you have to offer is better. Study a range of possible competitors, including traditional supermarkets, delivery-based food sources, and local small business sources.
It helps to follow the market for a time, so you can gain an understanding of its ebb and flow. You’ll also learn to anticipate the unexpected, like downturns and changing trends. If you’re not experienced in market research, enlisting a more experienced partner, mentor, or paid professional can be a good way to get down to useful data and insights.
Know your customers
Knowing your customers is related to understanding your market, and it’s important to have a very clear idea of exactly who will be buying your product. You want to know what they value and care about, both as it relates to the food they’re buying from you, and in more general terms of taste and style.
Understanding your customers can help you position your product and increase their perception of its value. You’ll be able to do things like arrange your storefront in a way that appeals to the sorts of people who are likely to spend money there. Attractive storage, décor, and signage can make the same products more appealing to customers than untidy, utilitarian bins, dingy walls, and poorly scribbled prices.
Invest strategically. Consider trendy touches like a chalkboard on which you can write specials or sales. Depending on your store’s theme, you can choose a rustic board, a raw slate or one with a nice frame; a framed chalkboard is a popular choice that brings together professionalism and charm.