Do you have what it takes to open a smoothie shop? Even the most capable and business savvy person admits that opening a business takes a lot of work.
It isn’t easy to get a business running that makes money. Reports show that only half of all small businesses will make it to the five-year mark. If you don’t have a solid plan, you aren’t going to make your business a success.
If you’re trying to figure out how to maximize your chance of success, this post will help. Keep reading to learn how to start a smoothie business that will turn into a success.
1. Create a Business Plan
It’s easy enough to come up with a business idea. It’s a lot harder to create a plan that will make money for your business. If you start up a smoothie shop without a plan for success, you aren’t going to have an easy time making money.
There are a lot of ways to start a smoothie business. What types of smoothies are you going to serve, and what kind of customers do you want to target?
You also need to figure out if you are content with remaining a small business. You have the option of creating a franchise later in the future to grow your business.
If you can’t figure out all the details yourself, you can also work with another business and join a franchise yourself. The parent company will help you set up your business and allow you to use their name to help bring business.
2. Get Your Numbers Right
Opening a brick and mortar business isn’t going to be cheap. You’re going to need to pay for your storefront, utility bills, staff, taxes, licenses, and supplies. If you don’t have your numbers right, then you’re going to run out of cash before you have a chance to start.
Before you start purchasing anything, get your numbers together for your upfront cost of starting your business. You want to take this number and add a buffer in case there are any unexpected expenses.
Once you have your upfront cost, you need to know your monthly cost of operation. This number will tell you how much revenue your business needs to make and how much runway you have before you go out of business.
3. Determine Your Target Market
Let’s face it — smoothies aren’t for everyone. You aren’t going to be able to market your company to every person out there. You need to learn the type of people who are most likely to do business with you and market your products to them.
Smoothie products are typically targeted towards people looking for a healthier lifestyle. You can use your knowledge of this market to promote your store as a healthier alternative for people looking for food.
4. Find the Right Location
You aren’t going to get any business if nobody can find your smoothie store. You need to find a highly-trafficked location if you want to get any visibility.
If you’re starting on your own without a franchise, you don’t have a name brand to work with. Instead of starting with a space of your own, it might make sense to start small with a kiosk in the mall. Your customers won’t need to go out of their way to find your business.
If you decide to open a store, try to find a building that’s in an up and coming area. Smoothies have become trendy now that people are starting to pay more attention to their health. You can find more of these people in the trendier parts of town.
5. Get Your Legal Documents in Order
Once the planning is out the way, you need to get your business set up correctly. The best way to do this is to start a corporation.
Your corporation will allow you to separate your personal and business liabilities. It makes it a lot harder for other parties to go after your personal assets in their case. Your corporation will also allow you to take on employees and pay them a salary.
The next thing you need for your business is insurance. At a minimum, you will need liability insurance. This will protect you in case accidents happen on your property.
Every situation is different, so talk to a lawyer to learn about the other types of insurance you need for your situation.
6. Locate Reliable Suppliers
You can start talking to suppliers once you set up your business. You’re going to need to find people to supply you with equipment and ingredients.
You’ll also need to determine what type of supplies you will provide to your customers. Take straws, for instance. Do you want to save money and provide white paper straws, or be more sustainable and purchase reusable straws?
It might be tempting to save money and go for the lowest priced option. Make sure you do your due diligence to determine the quality of those suppliers. It might be worthwhile to pay a little more to get better quality products.
7. Develop a Marketing Plan
Before you get ready to open your doors for business, you need to find a way to spread the word about your smoothie shop. You’ll need a great marketing plan to accomplish this.
Many new businesses use postcards for advertising their opening. They provide a coupon to entice people to try their products for the first time. It’s a great way to get people hooked and coming back.
Another way to promote yourself is to establish a web presence. Create a website and social media accounts for people to find you online. You can use your web properties to promote deals and send content to your customers.
Now You Know How to Start a Smoothie Business
By now, you should know how to start a smoothie business. Make sure to follow the tips above so you can get your business started the right way. The more work you do to prepare, the better chance you will have of starting a successful business.
Once you get things set up, you need to find a way to get new customers. Head back to our blog to learn how you can use the internet to get people coming to your business.