Starting a business

[Captain...]

The advice about just get started on the internet is the best, if you are looking at getting your own premises don't just sink all your own money into it. I don't know how much capital you have, but unless you are a millionaire you are better off looking for investment or a small business loan tied into your business to minimise your personal risk.

 

To get a business loan or investment you will need a sound business plan, there are templates and advice online, this will force you to actually do your research look at the start-up costs and running costs document it and then give it to someone else to see if your business is worth putting money into. 

 

First step is set up your business, register your business and set up a business account.

 

Then get your online presence, see if you get any orders, there are plenty of sites out there that will help out new businesses (do some research for your industry), as it is food I don't know if you will need any hygiene certificates.

 

Then work on your business plan in your spare time, then you will have the business plan, the experience and the customers to get investment/loan to get your own place.

[katieakita]

Is it an option for you to buy one of your chosen business types that are established and up for sale? There are positives and negatives in going done this route.

[Rincewind]

Do you have  qualifications in bakery and catering?

[Wymsey]

Do you have  qualifications in bakery and catering?

He has experience, isn't that more crucial?

[FoxInTheBirstallBox]

Thankyou all for your input, I have an now level 2 in patisserie and earnt one rosette in my current work

And I knew you had to do some research and plans but didn't realise it was as intense as this, it's safe to say it's not to be taken lightly.

Looking into somewhere in town as my first look, but the overheads are crazy! Maybe not the best place for a first venture so looking more at places like quorn, rothley, birstall and possibly Loughborough

As for the place itself I am looking at having a place similar to patisserie valerie but better quality but costs no more also serving afternoon teas, coffees and fancy sandwiches and lunch options.

It's hard to find people who have experience in what I do who have done this so I may go into some places in town Saturday and see if they will give me some advice as well

[FoxInTheBirstallBox]

Safe to say I would be able to make everything but would need a couple of staff straight off the mark which may be a bit of a stretch. Not sure if I'm being ambitious or just need to scale down what I'm thinking of doing

[Wymsey]

Check out 'Geary's Bakeries' (in Barrow) if you can.

 

They started from a being small shop into now providing bakery produce to major retailers.

[ousefox]

Safe to say I would be able to make everything but would need a couple of staff straight off the mark which may be a bit of a stretch. Not sure if I'm being ambitious or just need to scale down what I'm thinking of doing

Do a cash flow forecast for the next 2 years minimum. It's easy to do and will give you a good idea as to whether the business will be viable. Employing 2 staff straight away is going to be very expensive.

[Guest]

Do a cash flow forecast for the next 2 years minimum. It's easy to do and will give you a good idea as to whether the business will be viable. Employing 2 staff straight away is going to be very expensive.

 

illegal immigrants should be easier to find by the time you set up.

[Captain...]

You could approach patisserie Valerie about setting up one of their franchises, from what I understand you buy into it and then can use their expertise suppliers and such like so then you will be able to run your place but with the backing of a successful company then in a few years you will have the experience and the contacts to start out on your own.

[Guest]

Like many have said above, definitely see if you can step into it slowly at first, either selling to order, or setting up a small stall in a market on the weekends. Not only does this minimise the upfront costs, but also allows you to test the waters and get yourself established without risking damage to your company name if things don't start smoothly. First impressions matter, so I recommend holding off on a brick and mortar shop until you're ironed out the inevitable start up kinks.

 

Also, seriously consider what your weaknesses are. Hate doing taxes and paperwork? You might be better off paying to have it done professionally, than wasting your time at something you're neither good at or enjoy.

 

On the other hand, look for cost savings in all areas. Do you need a website? probably. But don't let yourself be taken to the cleaners; consider DIY and using squarespace, weebly, wix or even strikingly.

 

Make friends with fellow small businesses. This is especially true if you move into a physical location. Even if they're in the same business as you, don't see them solely as competitors, but see them as partners. After all, you probably have common goals (attracting customers to that part of town, gaining media publicity, negotiating with suppliers, etc)

[Guest]

You could approach patisserie Valerie about setting up one of their franchises, from what I understand you buy into it and then can use their expertise suppliers and such like so then you will be able to run your place but with the backing of a successful company then in a few years you will have the experience and the contacts to start out on your own.

 

This sounds a good idea to me.

[Stadt]

1. Make product

2. Sell product

3. ????

4. Profit.

[Izzy]

Before I went self-employed back in 1999, I attended a 1-week full-time course at Business Link, covering every aspect of running a business (planning, research, marketing, finance, accounts, tax, employment, premises, location etc. etc.).

I'm not sure Business Link exists any more, but some institution must offer a similar service....and you definitely need a lot of advice.

 

My business set-up was very low-risk compared to yours (just me, a computer and a few dictionaries in a spare room at home - very low overheads).

 

You could do worse than just sit down with a bit of paper and come up with some rough figures for start-up capital required (e.g. kitchen equipment, cafe furnishings/decor), overheads (payable regardless of sales) and cost of purchases/ingredients for resale/cooking/baking.

 

Unless you have the capital to buy a property outright, I'm guessing that rent or mortgage payments alone would be at least £15k per year. Add in wages (unless you do everything yourself - cooking and serving), business rates, utility bills, maintenance of premises and I'd be surprised if your overheads came to less than £40k (a pure guess)....and that's before you buy foodstuffs for cooking/baking or resale. As you'd need a decent mark-up to be viable, I'd be astonished if you could run such a business viably on an annual turnover of less than about £80k (though I'd stress that I have no knowledge of the sector).

 

So, now you're onto the easy bit of working out how to generate a turnover of, maybe, £80k (nearly £2000 per week) in a highly-competitive market where business failures are the norm....   

Remember, too, that on a turnover above about £82k, you're obliged to register for VAT (claiming it back on purchases, but potentially charging it to all diners.....though cakes may be zero-rated, I think).

 

Sounds as if you have a massive amount of research and planning to do, otherwise it'll just be a pipedream - or, worse, a financial disaster.

Sorry if that sounds gloomy. Obviously, some cafes/bakeries are great successes, so yours could be. Sounds like you need intensive advice, research & planning, though.

Good luck! 

Great advice mate. This thread represents Foxes Talk at its best for me. Someone comes on with a genuine need for help and advice and fellow supporters go out of their way to construct a detailed reply like this. Makes me proud to be a City fan.

[Ross-Kemp]

I would suggest starting up online, possibly via Facebook to begin with, selling cakes (birthdays / weddings etc), it a) gets your name out there, b) is a sound basis to start, c) you earn some cash with little to no overheads, d) build up a customer base.

[Nalis]

Some great advice here.

I know nothing about catering unfortunately but I take it you might also be qualified to offer baking classes, particularly as its become more popular with the public in recent years. Could be another string to your bow particularly when building your profile.

[Great Boos Up]

I think I can help a little and sorry if I sound a little terse, but first you need to decide if you want to start a bakery, cafe or casual restaurant.

All are completely different. Why not think about a café for starters and shop around to sell bakery, basic food products.

A full working kitchen is expensive and comes with public liability clauses and assessments.

A good passing trade (and you won't be able to afford a prime spot)  so think about a popular place that has no such competition. Location will be the key, but when you find it you will need to be ready to rock and roll.

[Guest]

Some great advice here.

I know nothing about catering unfortunately but I take it you might also be qualified to offer baking classes, particularly as its become more popular with the public in recent years. Could be another string to your bow particularly when building your profile.

 

Great idea.

 

Piggy back that TV programmes popularity and get out into homes to do demos and classes for a few lonely housewives. the new tupperware party.

 

Sounds a great money earner to me.

[Rincewind]

He has experience, isn't that more crucial?

Yes it is crucial. I was thinking more to do with having qualifications so health and safety etc will allow him to handle food and sell it to customers. I may be wrong though.

I volunteer for a group that prepares and serves food in a kitchen and before they started they had to be passed and authorised.

I was not having a go.

Sorry I must have missed the post where you say you have experience in a hotel and awards. That will go a long way towards setting up contacts if you need to.

[Guest]

if the bakery thing doesn't take off there's always other options available.

 

[Alf Bentley]

Great advice mate. This thread represents Foxes Talk at its best for me. Someone comes on with a genuine need for help and advice and fellow supporters go out of their way to construct a detailed reply like this. Makes me proud to be a City fan.

 

 

It's just that I'm so rubbish at running a small business that I've no work to do and too much time on my hands, mate! 

[Bettsj2]

Whatever you do, dont get premises or staff to start with.

You need to be absolutely clear on what it is you want to do and what you want to achieve. For example if you just dont want to work for someone else and aren't interested in getting rich etc, look to work from home doing bespoke cakes for events or advertise on Facebook/Gumtree etc home baking classes where you go and teach lonely housewives how to bake properly.

If you want to get rich, realise that in the food industry, you will need to work 18 hour days for about 5 years before you get close to making serious money.

Either way, learn to crawl before you work. The amount of start ups that fail in the first year due to bad planning and mis-management is pretty frightening. Cover all your bases and go in with your eyes open. Speak to other business owners in your field and get their take. Invest in business literature on how to write a business plan and business management. If you're going to take the plunge, so all the prep before hand so you dont feel like you're treading water from the start.

But most importantly, make sure you're properly insured. At Prime Insurance Consultancy, we provide policies that are both reasonable in price and water tight in cover, giving you the peace of mind that your business is fully protected so you can get on with what you're good at.

Prime Insurance Consultancy. A new breed of Insurance Broking.

Email me at [email protected] for more details.

[Guest]

Whatever you do, dont get premises or staff to start with.

You need to be absolutely clear on what it is you want to do and what you want to achieve. For example if you just dont want to work for someone else and aren't interested in getting rich etc, look to work from home doing bespoke cakes for events or advertise on Facebook/Gumtree etc home baking classes where you go and teach lonely housewives how to bake properly.

If you want to get rich, realise that in the food industry, you will need to work 18 hour days for about 5 years before you get close to making serious money.

Either way, learn to crawl before you work. The amount of start ups that fail in the first year due to bad planning and mis-management is pretty frightening. Cover all your bases and go in with your eyes open. Speak to other business owners in your field and get their take. Invest in business literature on how to write a business plan and business management. If you're going to take the plunge, so all the prep before hand so you dont feel like you're treading water from the start.

But most importantly, make sure you're properly insured. At Prime Insurance Consultancy, we provide policies that are both reasonable in price and water tight in cover, giving you the peace of mind that your business is fully protected so you can get on with what you're good at.

Prime Insurance Consultancy. A new breed of Insurance Broking.

Email me at [email protected] for more details.

 

 

Win - Win.

 

[Merging Cultures]

Whatever you do, dont get premises or staff to start with.

You need to be absolutely clear on what it is you want to do and what you want to achieve. For example if you just dont want to work for someone else and aren't interested in getting rich etc, look to work from home doing bespoke cakes for events or advertise on Facebook/Gumtree etc home baking classes where you go and teach lonely housewives how to bake properly.

If you want to get rich, realise that in the food industry, you will need to work 18 hour days for about 5 years before you get close to making serious money.

Either way, learn to crawl before you work. The amount of start ups that fail in the first year due to bad planning and mis-management is pretty frightening. Cover all your bases and go in with your eyes open. Speak to other business owners in your field and get their take. Invest in business literature on how to write a business plan and business management. If you're going to take the plunge, so all the prep before hand so you dont feel like you're treading water from the start.

But most importantly, make sure you're properly insured. At Prime Insurance Consultancy, we provide policies that are both reasonable in price and water tight in cover, giving you the peace of mind that your business is fully protected so you can get on with what you're good at.

Prime Insurance Consultancy. A new breed of Insurance Broking.

Email me at [email protected] for more details.

 

Also, if you need a microfinance loan... we at my firm invest in SMEs...

[Crinklyfox]

Lots of good advice so I'm only going to add a couple of points I found relevant during the time I ran my own business:

1. It's prudent to be aware of the risks of running your own business. If you look at the figures for small businesses (I used Companies House) there are a huge number that close every year. Lots of small businesses fail. For that reason I made sure that I had a secondary income which I could rely on. In the early stages of my business I had a number of expenses, including Accountants (which you need) and insurance, fortunately I could work from home so didn't need premises. Nevertheless, I felt considerable pressure as I had a family to support and the income from my business ranged from feast to famine, with a lot of famine early on.

2. I had to consider if I had the right personality to run a business. Could I take the pressure of months with low income and the impact that this could have on my family. Did I have the skills to sell my own business (I could have the best product in the world but if I couldn't convince anyone to buy it then my business would fail).

3. Consider the worst case scenario and plan to avoid or mitigate it. For example, if you leased property rather than buying and the business didn't do well, you could be trapped into paying for the period of the lease even if the business was losing money hand over fist. You could end up bankrupt. It's harsh but as other posters have said, if you don't go into this fully prepared then there is a risk of failure.

I wish you luck in your enterprise, should you decide to go ahead.