As the popular expression goes, “The way to a person’s heart is through their stomach.” When you run a food-based business, whether it’s a juice bar, catering company or a concession stand, you have the opportunity to provide people with nourishment. It can be a very fulfilling way to make a living—you get tangible, everyday proof that you’re impacting the world and generating an income at the same time.
Building a food-based business from the ground up is about more than coming up with an idea—you’ll need brand principles, startup funds and food business insurance for financial protection. Learn more with CoverHound below.
A Distinct Brand
Think about how people refer to eating and drinking establishments to their friends when they can’t remember the name: “You know, the place with the great deep-dish pizza” or “That’s the cafe with two-for-one juices before 10 a.m.” A good brand needs a unique selling proposition (USP). In other words, every brand can’t be known for everything; each one needs a specific draw or reputational talking point to set them apart from competitors.
In a market as saturated as food preparation and sales, standing out is literally make-or-break. For frame of reference, 80 percent of restaurants do not make it past five years. This phenomenon can be directly related to poor customer service, subpar culinary offerings, so-so location or lack of branding. Maybe you’ll run an exclusively vegan cupcake shop, or perhaps you’ll specialize in themed catering. Whatever it is, pick a USP and use it to build your brand.
A business plan is the first thing investors, partners, family members and friends will ask you for when you share your plans to start a business within the food industry. Whether they’re asking for a formalized document complete with objectives or they’re merely curious about your general plans, you need a business plan in place well before day one. Pro tip: If you can’t sum up your plan of action in a few sentences and back it up with applicable data, you’re not quite ready to launch.
Health and Safety Guidelines
Before you so much as touch an appetizer or fire up your blender, you need to understand the basics for food handling on a national, state and local level. This is crucial for passing inspections and ensuring you avoid any unseemly lawsuits stemming from unsanitary conditions.
When it comes to securing investments for your food business, you have options: food-focused crowdfunding platforms, grants, small business loans, angel investors, etc. It’s up to you to research the best method (or combination of strategies) for getting the cash to launch your SMB. It depends on factors like credit, professional network, publicity, marketing and more.
Last but not least, you’ll need food business insurance to protect your company against steep financial damages from property damage, a customer sustaining and injury in your store, alleged copyright infringement and/or accusations of misconduct.
CoverHound makes it easy to compare personalized quotes for free to ensure you find the best fit. Investigate business insurance policy rates and terms today!