Start & Run a Home-Based Food Business. Mimi Shotland Fix

      7. Market Research

      The first thing you need to describe in the market research section of your business plan is your target market. Will your customers be retail customers, wholesale customers, or both? Retail is where you sell directly to the consumer. Wholesale means that you sell your products to businesses that resell your products to their consumers. (For more information on retail and wholesale customers, see Chapter 9.) Why have you targeted this area of consumer?

      Discuss what market research you have done and break it into primary and secondary categories. Primary research is the work that you have done to gather information, such as doing informal surveys of potential customers or visiting stores to see what your potential competition is doing. Use your notes — add dates and list the places you visited — to show that you really have done the research.

      Secondary research includes looking at materials and data that have been collected by others. Places to look for this information include libraries, trade associations, and local business groups. List anything else that you’ve done, such as looking through the phone book for potential competitors, searching the Internet, reading magazines, and studying this book. If you have a subscription to a trade magazine, add that here as well.

      In this section, you may also talk about your potential competition. Include information about who they are, what they sell, and what makes your products different. What sets you apart? Be as specific as possible.

      8. Promotional Strategies

      The promotional strategies section describes how you will target and develop a customer base, how the business will be marketed, and if you will participate in any community activities to promote your business.

      List the activities you will do to promote your business, such as creating flyers and brochures for distribution at public markets or making guest appearances on local radio and cable shows. For additional promotional ideas, read Chapter 10.

      9. Financing and Start-up Expenses

      If you’re appealing to potential financiers for start-up capital, the finance and start-up expenses section will be the most important element of the plan. This area shows potential backers that you are serious about making the business profitable. Your lenders want to know they will be paid back, so there must be enough details in this section for them to feel confident that they will have their investment returned.

      Include how much you will need for start-up, how you will acquire it, how long it will take to make a profit, and how much of your own money will be invested. You will need to speak in terms that bankers understand, so include graphs and charts. You may want to consider hiring a professional to help you create this section.

      This section may also include spreadsheets to predict future monthly projections. Your market research data, along with how much you think you can produce and sell within your projected business operation, will help you fill in the numbers. Build any seasonal fluctuations into your forecast. This section should give you an understanding of how much business you need to do in order to make a profit.

      When I hoped to move my bakery business from a rental site and purchase a building for a bakery café concept, I needed financing. At that time, bakeries and cafés were an unusual pairing. I asked my tax accountant for help with my financial plan and he put together an extensive outline. He sent it to three banks and from that information, one of the banks, with the backing of the Small Business Administration (SBA) and the city’s development office, provided the loan. Without an in-depth business plan, getting the loans would have been impossible.

      10. Projections and Forecasts

      If you plan to keep your company in business for many years, you may want to make a forecast of where you want to be in the next three to five years. This helps you keep focused on your goals as your business grows. For example, you may need to set aside money quarterly in order to move your business from your home into a retail location in two years.

      Revisiting your plan annually will help you to know if you are on track with your goals. If you are off track, your business plan can help you get refocused.

      11. Personal Business Plan

      If you need investors, then you will need to create a more detailed plan.

      As you read through this book, you will understand more and can fill in your business plan. (If you need a template for a business plan, Self-Counsel Press sells business forms kits for each of our Start & Run tiles.) First, write some general ideas for your basic planning, add issues you will need to address, and leave lots of space for the answers you don’t yet know.

      12. Business Planning Help

      If you’re nervous about starting a business and need some coaching or one-on-one help, both the United States and Canada have small business groups offering no-cost programs and services. Small Business Development Centers can be found across both countries. The Resources section has links to more information for both US and Canadian businesses.

      In the United States there are online classes and individualized mentors from the Service Corp of Retired Executives (SCORE) to help you succeed. They’re a partnership involving the federal and local government and they have low cost or free business training.

      In Canada, you can contact Canada Business, which gives up-to-date and accurate business information as well as provides referrals to government services, regulations, and programs. Additionally, Self-Counsel Press has a kit titled Starting a Successful Business in Canada Kit, which contains lots of helpful advice for new business owners.

      Be wary of businesses or websites that tell you how to become rich if you pay for their products or advice. I came across a few of them while researching this book. If they scream about how much they can help, and how wonderfully awesome they are, let temptation pass. They’re small businesses too, and the only thing they want to help is their own bank accounts!

       Apple Crumb Cake

       Cake

      • 4 cups chopped apples with skin (approximately 4 large apples)

      • 2 cups granulated sugar

      • 1/2 cup oil

      • 2 large eggs

      • 2 teaspoons vanilla extract

      • 2 cups whole wheat pastry flour

      • 1 cup all-purpose flour

      • 2 teaspoons baking soda

      • 2 teaspoons cinnamon

      • 1 teaspoon salt

      • Optional: 1 cup chopped walnuts

       Streusel This recipe makes more than you need; keep unused portion refrigerated for up to one month or frozen for up to six months. Can be used for sprinkling on other baked goods.

      • 2 cups whole wheat pastry flour

      • 1 cup granulated sugar

      • 1/2 teaspoon salt

      • Optional: 1 teaspoon cinnamon

      • 1/2 cup oil

      • 3 tablespoons water

      • Optional: 1 cup chopped walnuts

      Prepare apples. Place in a bowl, cover with sugar, and set aside.

      Prepare streusel: In a separate bowl, mix together all of the dry streusel ingredients. Pour in the oil and water, and mix thoroughly. This should be a crumbly