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| Starting A Home Based Business
Dear Pam, I’ve recently started a home based business selling baked goods. Currently, my clientele comes from the beauty shop that I have my hair done at. So far I’ve been able to get repeat business but this is the only avenue that I have ventured into. I love to bake and I’d really love to expand and sell my products to restaurants or through other avenues. I’m looking to make a steady income and feel this will help me get there but I’m not sure how to get my foot in the door. I don’t know much about marketing so I would appreciate any help I can get. Right now I’m using a flyer to market my services at the salon but I’m not sure what my next step should be. Sincerely, Sell-Singing Dear Sell, Congratulations on starting your own business. This is an exciting time for you! I have a friend who started a similar business from home a while back and even though I don’t know much about the baking industry, I can give you a little feedback on what was needed to get her business launched. One of the first things you’ll want to do is get all the logistics set up. Because you are offering goods for consumer consumption, you will need to check with the health department in your area to inquire about having your home approved for preparing foods. This will be a crucial step in your marketing and we’ll get into that more in a minute. The health department will come out to your home to inspect it and make sure that it meets their standards – whatever those standards may be. Once your house is in the “clear” then you will be ready to market yourself and your business. If you’re working with a small or even no marketing budget, you’re going to have to put in a lot of hard work. One of the first things I would do, if you have not already done so, is name your business. Even though you are working from home, you are a professional baker and you want people to take you serious. You can buy software at your local office supply that will allow you to design your own logo, business cards, stationary, flyers – you name it! This will really help you keep your expenses to a minimum. Next, before you print out the flyers I would sit down and do a cost analysis. Find out what your ingredients will cost, the time it will take to make and deliver them and what your profit will be before you set a price. Keep in mind, since you are just getting started you want people to try your products so you want to try to keep your prices reasonable while at the same time, not giving it all away. Once you determine your price point then it’s time to get in motion! I think anytime you are pushing a food product the best way to get someone to buy it is to give them a free sample. This is something you should budget into your original cost analysis. Depending on how many items you have on your list, I would take a pretty large sample with me and go to several locations to introduce my products. Below are a few places I think would be a good market for you to target: Farmers Market - Offices - Auto Repair Shops - Dr's Office - Fitness Clubs Really any business for that matter! Get the picture? You have to be creative and think outside the box. Most people are stuck in their office all day and sometimes can not get out to eat. You may just be a site for sore eyes! When you take the food in for them to sample, be sure to always take some of the actual products because chances are after people taste how yummy your food is, they’ll want to buy some on the spot. I would go in, introduce myself, show them my “credentials” which would be your certificate from the health department and business license if applicable and let them know the day and time you will come around each week (or daily). Be sure to also let them know that they can call, fax or email you orders in advance and that you will drop it off when you make your rounds. Make sure you leave a flyer and I would even suggest that you offer specials each week, perhaps to try a new item or to buy 2 and get one free. Small Restaurants - Daycares - Private Schools - Caterers- Coffee Shops Usually smaller organizations such as these out-source their baked goods to bakeries anyway. If you can take them in some samples, a price list, a proposal and your approval to cook from you home from the health department, they will probably seriously consider you and you may get a few contracts! You have to sell yourself so I would perhaps even offer them a couple “trials” with your items, like putting your cake on their menu to see what type of response they get from their customers, a money back guarantee, etc. The point is when you’re just getting started, creativity is major! I always tell my clients that you must always treat your business like the million dollar business you want it to be. You will get out of it what you put into it. When you go on your rounds, always make you are dressed professionally and that your products are eye catching and look mouth watering! I am a firm believer that you only get once chance to make a first impression. Make sure you leave them wanting you to come back and bring more! To Your Success! Pam Lawhorne Pam Lawhorne is a business strategist and marketing consultant with over a decade of experience in small business development, sales, marketing and management. She empowers individuals with the skills that are necessary to successfully launch, expand or increase sales for their business. For more information on starting your own business please order her new book “From Minimum Wage To Getting Paid - How To Become A Successful Entrepreneur With No Money, No Education Or No Experience!” Back to "The Everyday Entrepreneur" Find Out More About Us or Tell A Friend About Us © 2007 Pam Lawhorne. All Rights Reserved. |
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