Small Businesses – Planning your Next Endeavor

New cafes, restaurants and bakeries seem to be popping up everywhere. Small businesses require careful planning and execution to find success. Understanding how to create a successful business in the food industry can be exceptionally challenging as the competition is fierce and ever-changing. To help, we have compiled a list of the steps that should be taken when planning for a new small business.

1. Find your niche: Knowing what you are good at and identifying your weaknesses are the first steps to starting a business. You may be business-minded, but that doesn’t necessarily mean you should open a restaurant. Maybe you love French cooking, this is a great place to start. By identifying your passions, you can start to outline the style of restaurant you want to open and can then begin looking for a chef or partner to discuss the possibilities with. Small businesses don’t just crop up on their own. By consulting with experts, foodies, chefs and others involved in the food and beverage industry, you can begin to build a base upon which to grow your company.
2. Plan ahead: Once you have evaluated the viability of your ideas you can begin to create a business plan and determine measurements of success. According to the Small Business Association, only about half of small businesses survive the first 5 years. It’s tough! Going in with a clear plan, monitoring key performance indicators, and an understanding of what success means to all involved are all important steps to starting.
3. Invest in quality: From your location and decorations, to your staff and ultimately your food, small businesses can sometimes skimp on these key factors in an effort to cut costs. A reputation for being clean, friendly and having delicious food will grow your business exponentially more than the minimal savings you’ll get hiring a mediocre staff and buying pre-processed food.
4. Create a killer menu: People dine out because they want something new, or they don’t want to cook. Either way, the food should be more impressive than something they can whip up in their own kitchen. Creating stellar dishes such as classics with a twist to a unique chef specialty, will make your menu shine. Once you have perfected your menu, let your clients influence it, too. Take suggestions to heart – if people are constantly asking for a particular dish you know can be made to perfection in your kitchen, add it to the menu for a week and see how it’s received. You may be surprised at the reaction. Flexibility in the menu also allows your chef the opportunity to take advantage of seasonal, local and limited quantity foods to create new dishes.
5. Be organized: Having important papers and documents organized will keep things running smoothly. Hiring an accountant can also take away stress, and an outside pair of eyes may also provide valuable suggestions. The key is to outsource things you aren’t an expert in, and shine at things in which you excel.
6. Put yourself out there: Just as hiring an accountant can help keep your books running smoothly, marketing managers can clean up your online presence, promote your business and build a reputation. Small businesses too often rely on word of mouth to build their business base. Marketing professionals can do this, usually for a nominal fee. By making this a priority from the beginning, you can build your customer base and then use this base to spread the word.

Small businesses, especially in the food and beverage industry, face unique challenges. From increased competition, to food fads and changing demographics, this industry can be boom or bust. Feeling intimidated by the prospects of starting from scratch? Franchises can provide more stability and support than striking out on your own, you can read more about them in our blog post.

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