Starting a food Business!?Help!?

Question

I wanted to start a business selling spanish food but i can't afford a place to rent for it. so for now i have do do it from home. i have no idea what i'm doing, so any tips on how to sell food from home would be appreciated. and I mean anything at all. thanks :)

Answer 1

Be aware that over 90% of new restaurants fail in the first 5 years.  A specialized food has an even more limited market.  Aperson that admits they have "no idea" is certain to fail.

As a business owner you need to know way too many things to "not know" starting with federal and state taxes, sales taxes, unemployment tax, FICA, workers comp, training, recruiting, staffing, scheduling, marketing, advertising, distribution, etc.  Also, most states require food handling certifications, business licenses, and insurance.  Your town may have laws prohibiting home based businesses that deal with the public.  You need proper refrigeration.  Poisoned people aren't good customers!  The food must always be hot (over 148 degrees) or cold (below 42 degrees).  Bacteria grows at the range in between.

My best advice for you is to get a job working for a company and learn how to do all of these things first.  Find out if you really love the job.  And realize that when you work for someone, they have all the headaches, you go home after you punch out.  They may be filling out payroll information long into the night, or balancing the books, or fighting with Mastercard over a cancelled charge, or dealing with the county health inspectors, or the fire marshall, or the plumber.

Take some classes at the community college about running a small business!  Contact the SBA for free help and pointers on how to get started.  

If you buy a McDonald's Franchise, you have to prove you have  enough money in the bank to pay for one full year's operating expenses, (after you pay $600,000 for the franchise, building and equipment).  The reserve that McDonalds asks is currently $1,000,000 in the bank.  Now think about it, the day McDonalds opens...there will be alot of customers...no introductory phase, no advertising costs, no growth learning curve, they know who, what, when, and how before they open the door AND THEY HAVE TO HAVE $1,000,000 LIQUID TO GUARANTEE THAT THE FRANCHISEE CAN PAY HIS BILLS FOR ONE YEAR!

Do not start a business without cash reserves...you are guaranteed to fail if you have to rely on cash flow.  Rent, gas, electric, deposits, water, sewer, repairs, payroll, bank charges, VISA/MC charges, cost of food, cost of packaging.....believe it or not, this list, when complete will contain about 112 costs.  If you fail to make your payroll tax deposit by one day, the fine is $1,000.   You have alot to learn first.  

Answer 2

You need a lot more information, and very specific information that no-one here can give you, about the regulations in your local area. Most places have stiff rules about selling food - where and how it's produced and sold, who is involved, etc. Your local public health department (whatever it's called) will have information about that - try looking for their website.

Don't let the need for more information scare you off - but do your research first before you commit time, energy and money. There is amost certainly some kind of goverment small business website where you are, which will give you all kinds of useful information.