
Beginning your own food business can be an immensely fulfilling endeavor, yet there are many things you should keep in mind before getting underway.
Food businesses must abide by federal, provincial, and municipal regulations when conducting food business operations. There are also specific steps required for successful start-ups, which may differ depending on which province the business operates in. There are several funding programs offered, such as the Starter Company Plus Program, which offers financial and mentorship support, and Restaurant Funding Program in Canada for entrepreneurs looking to start a restaurant business.
Loan
Starting a business requires significant investments of time and money while carrying considerable risks. Unfortunately, many new food businesses fail. One alternative to starting from scratch may be purchasing an established restaurant, as this can be less costly while offering faster name recognition and easier financing terms.
As with any food business, various requirements and regulations may be fulfilled depending on what kind of products are being sold. For instance, when selling bakery goods, you must ensure they are safe to consume while packaged correctly per Health Protection and Promotion Act and Ontario Food Premises Regulation requirements.
Ensure that quality assurance and marketing processes are organized to ensure a successful launch of your food business. Engage and connect with your audience by sharing behind-the-scenes content, offering customer perks, and creating an online community.
Restaurant Funding Program
Millions of Canadians enjoy dining out and discovering new culinary experiences. The restaurant industry can provide great profits and opportunities for business owners; however, opening one requires significant funds. There are various sources for acquiring working capital to start and operate a restaurant business.
Other expenses related to opening a restaurant include purchasing kitchen equipment and paying staff salaries, which quickly add up over time.
Uber Eats, DoorDash, SkipTheDishes, and Postmates provide restaurants with another source of working capital by offering food delivery services to customers quickly and conveniently while expanding the restaurant business’s audience.
Taxes
Dependent upon your province and municipality of operation, certain industry regulations must be met to operate legally. This could involve licensing requirements, food safety certifications, health inspections, or tax obligations such as GST/HST or Quebec Sales Tax (QST) Small Supplier requirements and how to claim back input taxes.
As you embark on your food business journey, consider finding a mentor to guide your journey. MentorshipBC provides access to mentorship programs available near you.
Create a marketing plan to expand and connect with consumers. Use social media platforms like Instagram and TikTok to share behind-the-scenes footage and promote your product or service, and Localize as a marketplace platform.
Insurance
Food business start-up costs can be dauntingly high. To minimize these expenses and gain a strong start, it is essential that you set aside enough cash in an emergency fund until your revenue streams kick in. Furthermore, access to funding through grants or loans may help – Small Business BC has extensive online guides for grants and loans that could offer you support as you consider funding options for your venture.
Consider starting your business from home to save on overhead costs like rent and utilities while taking advantage of local community support while creating a loyal customer base.
Check with your municipality to determine whether a food operating permit is necessary, meeting all health and safety requirements set by public health inspections of your kitchen. Food delivery businesses like Skip The Dishes, UberEats, and DoorDash offer fast growth opportunities for entrepreneurs looking to reach new audiences using an app-based model that offers convenience to customers and merchants.