jmm
Neophyte
Posts: 46
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Post by jmm on Feb 4, 2019 7:40:10 GMT -5
Hi I’ve been wondering about opening up a chocolate shop in my vicinity as there really isn’t any around... there’s one. But imo they are pretty bad I’ve been making them at home for a good while now and Ive also got some experiences from my education and profession as a baker. I’m mostly looking for help in getting a business like this setup.. I’ve someone has been thru this process and would like to help me out with guidance I’d be very thankful My goal for the moment is to start with just a shopfront. Buying them in and reselling them and from there working towards making them.. If anyone’s interested please let me know . Thanks
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Post by cacaosublime on Feb 6, 2019 0:06:33 GMT -5
I think there are people on this forum who can and are willing to help you, I would advise you to ask specific questions you have
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Post by Brad on Feb 7, 2019 5:11:50 GMT -5
I have written an ebook that will help you with exactly what you're looking for. It also includes links to spreadsheets, cost formulas, and even a whole business plan template you can use. A lot of people have downloaded it and love it! It is the sum of over 30 years of business experience and 14 years of chocolate business experience as a craft chocolate maker. check it out: mybook.choklat.comCheers Brad
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jmm
Neophyte
Posts: 46
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Post by jmm on Feb 8, 2019 8:13:08 GMT -5
Thank you.. I’ve just purchased the book and look forward to reading it.. I’ll also chuck down the questions I have so far.. I should have done that from the start ( eventho they probably are in the book already) What I’m hoping to do is eventually make my own molded chocolates/bars etc For now the fastest way for me to get into the business is most likely to just buy them in and reselling them.. Most of my questions are related to the business side of things.. My first question would be : what type of business should I register as? ( I’ve googled this but for some reason I can’t get the right fit ) 2). What are the things I should pay most attention to? What should I not even bother with? ( I know this is a personal opinion.. but that’s exactly what I’m looking for) 3). What should I pay attention to when it comes to health department approval ( for reselling and later producing) 4). What products should I definetly use and what should I definetly stay away from? Those are the ones on th top of my head atm ( again if they are in the book already. I’m sure I’ll come across it ) Thanks again!
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Post by Brad on Feb 11, 2019 2:37:53 GMT -5
Hi Jmm.
If I were you I would simply operate as a small proprietor. You can usually register a trade name in your name and then operate under that trade name and use your personal bank account. Many micro businesses do just that. Only when you start generating more than about 30,000 per year in sales is it worth looking at creating an incorporated business.
With respect to questions 2-4, they are far too general to answer. The first question you need answer is what exactly are you going to sell, then whether or not you make it or buy it, and so forth. If you don't need a commercial kitchen then don't incur the expense.
I think for you the first think would be to define the products you want to sell. That will determine the paths you need to go down to answer the other questions.
That's really about as specific as one can get given the very broad spectrum of answers your questions can result in receiving.
Brad
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Post by bmikiten on Feb 11, 2019 23:50:52 GMT -5
JMM - I can help with some of this. Are you in the US or Canada?
Brian
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jmm
Neophyte
Posts: 46
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Post by jmm on Feb 12, 2019 7:36:04 GMT -5
Hi
I’m currrently on my phone so forgive me if I didn’t address everything
I’m in the US. I think I’ve figured out that I should register as a s corporation. ( however I need to look more into this)
Also I’m hoping to generate more then 30k seeing as this wouldn’t even cover the lease in my area... now seeing as you gave me the 30k number is kind of giving me doubts what kind of money I can make in this business
From what I’ve researched with other places( sort similar) I would need to pull in about 25-30 people a day with a average sale of between 15-20 dollar to even break even ( that would “ roughly” pay for my current expenses aswell as the shop/inventory/lease/bills..)
Now without going into to much details. Would that be a overshot?
Again. Thanks... and information is helpful:)
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Post by Brad on Feb 13, 2019 2:34:39 GMT -5
JMM;
The answer to your questions is in the book.
One of the links provided in the book is an Excel pro forma income statement. In that spreadsheet you can enter your anticipated revenue and massage your costs based on your application. That will give you your break even analysis. Given that the chocolate industry is primarily a cash based business (immediate consumer sales), your income statement will also more or less be as effective as a cash flow statement.
...and you are correct with respect to the average point of sale purchase price.
Cheers. Brad
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Post by bmikiten on Feb 13, 2019 23:07:55 GMT -5
Hi I’m currrently on my phone so forgive me if I didn’t address everything I’m in the US. I think I’ve figured out that I should register as a s corporation. ( however I need to look more into this) Also I’m hoping to generate more then 30k seeing as this wouldn’t even cover the lease in my area... now seeing as you gave me the 30k number is kind of giving me doubts what kind of money I can make in this business From what I’ve researched with other places( sort similar) I would need to pull in about 25-30 people a day with a average sale of between 15-20 dollar to even break even ( that would “ roughly” pay for my current expenses aswell as the shop/inventory/lease/bills..) Now without going into to much details. Would that be a overshot? Again. Thanks... and information is helpful:) Have you considered working for a small local business for a bit? Given your comments (and in the US), you'd probably form a single member LLC which can be done on-line for about $800.00 through LegalZoom or similar services. While I've not seen Brad's book, I can assume that he probably covers the overhead (everything from utilities to leases to insurance) and equipment costs (based on his comments) and getting together a Pro-Forma should be top on your list along with a review of your finances. I've run several large businesses and consulted on smaller ones of the last 25 years and the lack of not only startup but operating capital is the single biggest issue followed by a lack of experience that causes failures. Other mistakes include not understanding your customers, picking a poor location (because of price) and not understanding the market and your true costs. Don't forget marketing and advertising costs especially if this isn't your specialty. Finally, use a bottom-up income model and not top-down. Start by assuming no customers. How long can you support those costs? Brian
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