Starting a new business can be a daunting task. There are numerous things that need to be taken care of, including menu planning,
location scouting, financing, permit acquisition, construction, food supplier selection, HACCP plan creation,
and Food Safety Management Systems implementation. Additionally, hiring, training, marketing, and social media management are all crucial elements
that must be addressed before opening day. This is just a short list of all the activities that must be completed.
Key Considerations for Starting Your First Food Service Business.
- How much cash do you have available to get the business going? Remember you may not turn a profit for a while so don't think of this as a get rich quick scheme.
- What is going to be the legal form of your business? Consult your lawyer AND tax person on this - each has a different perspective when it comes to corporations, LLC, sole-proprietorship, etc...
- What is going to be on your first menu? What do you envision for 1 year, 2 years and even 5 years from now? Don't dream to big here but be realistic about what you are going to expect to be serving as your business grows.
- Who are your customers going to be? Describe them. Demographics, income level, etc.
- Take a food safety manager training class. Yes do this now! It may open your eyes up to all that is involved and you may change your mind. Better now than before you start a build out and paying fees.
- What equipment do you need to produce the food you are going to serve?
- Make a list and start a budget for what you think your equipment costs, building costs and operating costs will be for 6 months. Add 20% to that number and you should have that much on cash on hand or financing to cover it.
- Will you look for an existing similar business to purchase or start from scratch?
Now that you have thought all that through and your ready to take the plunge you will need to do the following:
- Find your location and negotiate lease. Make sure you ask for free rent period during build out. 90 days is fairly standard on a 5 year lease.
- Sketch out a plan and contact an architect. Most jurisdictions now require stamped drawings to be submitted for permits to be issued.
- Contact your local health department. Ask for Planning. Since each county is different follow the information they provide to you. You should be prepared to show them drawings and proposed menu.
- Contact contractors and make sure they have experience building a food service facility. Get references. Make sure the contract has a penalty if they do not complete project on time.
- Contact food suppliers - don't forget about sourcing from smaller local companies if you are just getting started. Take advantage of the knowledge food sales reps have. Most have been in your shoes before.
- Contact a pest control company. Get a contract. You will need this for Health Department.
- Contact equipment maintenance company. Get a contract with someone you trust to maintain your equipment. This should include regular preventive maintenance visits.
- Create your HACCP plan. This is a state of Maryland requirement and may need to be completed when drawings are submitted.
- Receive your use and occupancy permit and final health inspection!
- There are a lot of other administrative duties to be taken care of between conception and completion but these are the big items you must have before you serve your first customer.
