The hospitality industry is all about the relationship between a guest and a host. If you’re looking to get into the food and beverage world, there are a number of considerations to keep in mind before taking out a loan or making a large investment.
Find Your Size
The food and beverage industry offers a wide variety of opportunities for businesses of all sizes. Choosing which size is best for you can be a huge factor in your success and longevity in the industry. It’s important to start small to avoid taking on more than you can handle, but be sure to organise your business so that you create the room to grow and scale up your business as you find your feet and sales being to increase. Create systems and processes that are able to be expanded, rather than having to reconstruct your business to make room for growth.
What’s Your Flavour
Franchising can be a great way to enter the hospitality and food and beverage industries with a structured set up that takes care of a lot of the hard work involved in setting up a business. Paying for the rights for an established name, existing marketing and proven operating procedures will save you a lot of headache and offer guidance and assistance as you enter and operate your business.
There are hundreds of fantastic franchises available to suit everyone’s ideals and interests. From gourmet burger joints to the unique bubble tea franchise, there is something available for everyone. Find your flavour and a business that shares your morals and goals. Entering into a franchise also offers a structured way of starting small and scaling up as your experience and goals grow with your business.
Permits and Licenses
Before you enter into a business or buy into a franchise, be sure to contact your local council before you start or buy a food or beverage business to find out what permits or licenses you need for your area. Some of these will determine what you will and won’t be able to do, so be sure to stay on top of all government policies.
No matter what you are trying to accomplish, chances are that someone has already been there and done it. Seek out a mentor or model to base your business on and ask anyone you can for advice. If you are entering into a franchise, then speak to current franchisees in the system.
Ask them about their finances, if they are willing to reveal that information, and what kind of profit are they making. See if they have noticed any hidden or unexpected costs in setting up their franchise. Ask them about the level of training and marketing support that is offered by the franchisors and what they have done themselves. Ask them about their employees and staff liabilities. There is a lot to learn from experienced people with small businesses, absorb as much as you can and do your best to avoid making the mistakes they made.
Plan For Growth
As you expand, look to incorporate other businesses that you can work well with in mutually-beneficial situations. Look outside for other companies with the resources and expertise to handle certain areas of your business. Generally it’s more cost effective to contract externally rather than trying to find the money, space and right staff to do everything yourself.
Starting a new business is a very exciting but also intimidating and stressful time. There is a lot to think about and considerations to take into account. To be successful in breaking into the hospitality and food and beverage industry, you need to have a plan, do your research and learn to weather the ups and downs of business.