Table of Contents
Step 1 -
Plan for Your Food Business
- Target Customer: Specify who your target customer is, such as children, toddlers, seniors, and so on. Learn about their preferences and how they behave in the market.
- Food business concept: Describe your business models, such as a full-service restaurant, food truck, bar, bakery, or coffee shop. Each of these business models has a distinct market approach and customer base. As a result, make sure to select a concept and develop strategies around it.
- Logo and Name: Create a logo and a name for your company so that customers can identify your brand.
- Define your USP. Describe how you differ from your competitors in the market. What distinguishes your company from others and affirms your point of competitive differentiation?
- Choose your menu: Choose your menu and food items with care, as they will define your brand. Discover the most recent menu trends based on your target market.
- Define your brand: Creating a brand name and logo is insufficient. To make your brand stand out, you must select images, music, and staff attire. It establishes the tone for your brand and allows customers to connect with you.
- Choose Location: Decide the preferred location for your business. Do some brainstorming and choose an appropriate location based on your target customers, competitors, accessibility to potential customers, and visibility.
Step 2 -
Select Appropriate Business Structure
- Sole Proprietorship: A sole proprietorship is the most basic type of business, with one owner responsible for both the financial and legal aspects of the company. Your company does not need to be registered with the state as a sole proprietorship. You must also obtain the applicable licenses and permits. It involves less paperwork, is easy to start, and has no corporate business taxes. Further, a sole proprietorship can be a risky form of business as there is no liability protection. The proprietor liability to the business is unlimited, and hence we do not recommend a proprietorship firm; instead, for a single owner, a One-Person Company (OPC) is a better choice.
- Partnership: A partnership is a legal entity with two or more owners that operates jointly as a firm with joint and severe liability. This is like instead of one proprietor, there are two, and because they share capital/profits of the firm, they are commonly referred to as the Partners. We do not recommend a partnership firm for the poultry business, and instead, as an alternative, you may consider an LLP or a Private Limited Company..
- Limited Liability Partnership: LLP is an abbreviation for Limited Liability Partnership. It is considered a hassle-free sort of business and easy to carry out day-to-day operations. An entrepreneur can avail of many benefits if he/she chooses LLP to incorporate business. Like, such as lower registration costs, lower compliance burden, partners’ participation in business, and so on. We highly recommend the LLP if you are starting a poultry farming business.
- One Person Company: OPC is an abbreviation for One Person Company. One-person company is highly advisable for sole owners in comparison to going for proprietorship. OPC will offer you a business entity and limited liability. We will help you to make an OPC and provide all the legal compliance.
Step 3 -
Decide on the source of funding
- Equipment Loans: These loans are simple to obtain and are useful if you need to purchase heavy equipment for your food business, such as a food truck. Equipment loans work on a simple principle: you get a loan to acquire the equipment, and the equipment serves as security. Simply put, if you don’t pay back the loan, the equipment can be retaken as payment.
- Loans from Friends and Family: Asking for a loan from your friends, family, or relatives is the safest alternative. Remember to write down and follow through on a loan agreement with your lender.
- Line of Credit: For a business that is experiencing a cash crunch for a short period, this is the best option for acquiring funds. If you use a line of credit, you will have access to a pool of funds. As and when needed, you can borrow from that fund up to the amount of that fund.
Step 4 -
Step 5 -
Design the Layout of the Unit
Step 6 -
Set up your POS system
Step 7 -
Get License and Permit
- Incorporate your Company or LLP. The basic thing to start is to set up a legal entity for your business; the best choice is to start a Private Limited Company or a Limited Liability Partnership. Setindiabiz helps entrepreneurs to register a company or LLP faster and in a very affordable manner.
- FSSAI “Food Safety and Standards Authority of India” Registration or License as per applicability is mandatory to start a food business.
- Local registration of units either as factory under the Factories Act or for smaller units under the shops and establishment act is necessary.
- If the unit hires over 10 employees, then the registration under the Labour Law is applicable, such as PFO, ESIC.
- There are other legal requirements as well, request you to consult us, and we will advise on the same.
Step 8 -
Fix MRP for the Food Products
Step 9 -
Step 10 -